News from the Oklahoma Corporation Commission

Oklahoma Corporation Commissioner Bob Anthony has made it clear that he thinks oil and gas is a perfect fit under the umbrella supervision of the Commission, which includes public utility regulation.

Speaking at the annual conference of the Oklahoma Independent Petroleum Association at Shangri La, Anthony called for an end to what has become an almost annual ritual of trying to divide the OCC’s responsibility by placing either oil and gas or public utility regulation in a separate agency. He stressed the value of providing a regulatory knowledge base stretching from exploration through to consumption at the burner tip.

Looking back over the decade he has served on the Commission, Anthony reminded oil and gas producers of the progress that has been made in modernizing and streamlining regulation. He pointed out that the agency provides them with a "one-stop regulatory shop". Created by the Oklahoma Constitution, the Commission is a court of record with standing equivalent to that of a district court. Orders are appealed directly to the Oklahoma Supreme Court.

Anthony told the independent producers that "there is a pot of gold in utility regulation and that they should quit fighting it and use it to their advantage."

He noted that the last Oklahoma Gas and Electric Co. rate case included a $2 million reduction in the cost of electricity used on oil and gas leases. Last year the state’s electric utilities adopted a special tariff rider for oilfield lease operations which brought cheaper rates during periods of low oil prices, to be repaid when oil prices increased.

Anthony noted that having commissioners knowledgeable of the interaction between oil and gas production and public utility consumption has provided the producing sector with benefits in Commission rules restructuring natural gas utilities. These include several million dollars in rate savings for existing customers of natural gas gathering systems and a 10 percent set aside for independent producers bidding to supply gas to the utility.

The Commissioner praised OIPA for supporting OCC budget requests for modernized record keeping equipment and its support for funds earmarked for plugging abandoned wells. He especially noted OIPA’s support of the Oklahoma Energy Resources Board and its efforts to restore abandoned well sites.

"It is my job to follow the law and promote the public interest," Anthony said. "I think supporting the petroleum industry in Oklahoma is in the public interest. The stakes are high! Providing fuel for America! This is important to the nation and to Oklahoma’s economy. We’ve made progress in the past decade. It is a privilege to continue working together."

www.occ.state.ok.us