04/16/2003 03:34 PM Senate RES

           SB 151-REGULATION OF NATURAL GAS PIPELINES                                                                       
                                                                                                                                
CHAIR OGAN informed members that  he and Senator Wagoner met with                                                               
Jack Chenoweth, legal adviser on  oil and gas issues, who pointed                                                               
out the trend in the Lower 48 is to use contract pipelines.                                                                     
                                                                                                                                
SENATOR TOM  WAGONER, sponsor  of SB  151, informed  members that                                                               
Mr.   Chenoweth  differentiated   between  common   carriers  and                                                               
contract lines and said that  during the last two years, contract                                                               
lines  are becoming  more common.  He told  members, regarding  a                                                               
question that came up at the  last hearing, the line is currently                                                               
at 63 percent capacity with  gas that has already been discovered                                                               
and gas that  is expected to be discovered prior  to the start of                                                               
operation of the  pipeline. The pipeline can be  expanded to take                                                               
an  equal amount  of gas  to provide  capacity for  contract with                                                               
other exploration companies.                                                                                                    
                                                                                                                                
SENATOR  ELTON  asked if  the  committee  will be  taking  public                                                               
testimony on this legislation today.                                                                                            
                                                                                                                                
CHAIR OGAN  indicated that no  one signed  up to testify  at this                                                               
time.                                                                                                                           
                                                                                                                                
MR. BEN  SCHOFFMANN, Marathon Oil Company,  informed members that                                                               
he was available to answer questions.                                                                                           
                                                                                                                                
CHAIR  OGAN  indicated there  were  no  questions from  committee                                                               
members.                                                                                                                        
                                                                                                                                
SENATOR WAGONER  moved CSSB 151(RES),  Version D,  from committee                                                               
with individual recommendations and its attached fiscal notes.                                                                  
                                                                                                                                
CHAIR OGAN announced that without objection, the motion carried.