Comments of Allan Armstrong on behalf of Williams Field Services re FERC Natural Gas Markets Conference under PL02-9.

Jnofficial FERC-Generated PDF of 20021031-0181 Received by FERC OSEC 10/25/2002 in D o c k e t # : PL02-9-000 ,% FILED i ~'F THE SI'CR[TA:.'. 02 OCT25 PM h: 56 ~. jr.:~ i ,L. ,'r . r l -r P,G Y , , REGULATORYCOHMSS ON Federal Energy Regulatory Commission Natural Gas Markets Conference October 25, 2002 PL02-9-000 Allan Armstrong Senior Vice President & General Manager Midstream Mid-Stream Gas And Liquids Williams Field Services Session Ill - Offshore GatheringPolicy The Commission'sdefinitionof offshore gathering and its impacton the developmentof offshore facilities Jnofflclal FERC-Generated PDF of 20021031-0181 Received by FERC OSEC 10/25/2002 in D o c k e t # : PL02-9-000 Good morning My name is Alan Armstrong, and I am the Senior Vice President and General Manager of Williams Midstream. Williams Midsm:am operates one of the largest gathering networks in the United States and has facilities in the major supply basins oftbe Rocky Mountains, San Juan, and the Gulf of Mexico. I applaud the Commission's leadership in calling for a discussion oftbese important issues and appreciate the opportunity to speak today. The task of building the infrastructure to deliver 30 TCF to market in 2010 is an enormous challenge. A critical part of that challenge will be to insure that natural gas that is produced in the Gulf of Mexico is delivered to market centers in the most cost- effective manner with the least amount of environmental disruption. [**] Our vision of the future of the Gulf of Mexico's natural gas infrastructure is one of a robust and competitive environment where every pipeline that gathers offshore production to aggregation points onshore is able to compete on a level playing field to gather new production with any other existing or proposed pipeline. Each pipeline will gather and deliver production to onshore treatment and processing plants, which would be connected to multiple pipeline outlets and give producers the opportunity to access numerous market outlets depending upon where demand is the highest. This environment, which exists today in the onshore production basins, is proven and reliable, and has operated without significant state regulation. This is especially so in New Mexico and Wyoming where state gathering regulation is most minimal. Capital investment has substantially increased and production from these basins has grown. The result is increased competition for the commodity, which ultimately benefits the consumer. Ifthis policy is applied to the offshore, it will ensure that the supply potential of the Onlf of ...