Study Group: FERC Experts: Legal, Economic, and Regulatory Affairs

GLG News^SM Analyses by this Study Group's Leading Experts(?)

Russia's Financial Turmoil Forces New Oil Tax Changes

September 23, 2008

Analysis by:Leonard Coburn, President,

Analysis of:Additional Oil Tax Cuts by 2010 | themoscowtimes.com

Russia's primary revenue sources are taxes on oil and gas. Russia's oil taxes have been falling as oil prices fall and Russian oil production stagnates. Additional oil tax changes wil occur to spur new oil productiion and increase revenues.

FERC's Standards of Conduct NOPR: Back to the Future?

April 3, 2008

Analysis by:Paul Forshay, Partner,

Analysis of:FERC Standards of Conduct Notice of Proposed Rulemaking | www.ferc.gov

The Federal Energy Regulatory Commission's recently issued Notice of Proposed Rulemaking on the Standards of Conduct applicable to natural gas and electric transmission providers would establish revised standards for preventing anti-competitive information sharing between those trasmission providers and their marketing affiliates. FERC’s rulemaking bluntly acknowledges that the standards of conduct adopted with much fanfare in Order No. 2004 have proven too difficult for both industry and regulators to interpret and enforce, and seeks a return to the "functional separation" regulatory approach that prevailed prior to Order No. 2004.

Potential Fines and Penalties for Energy Transfer Partners

November 12, 2007

Analysis by:Orlan Johnson, Partner,

Analysis of:Is Enron Saga Entering The Final Chapter | news.glgroup.com

A clear understanding of this area of the law has become critical  because the risks from noncompliance can subject an entire entity, including upper management, to significant fines ($1 million per day/ per violation), criminal penalties and disgorgement of undue profits.  Many energy entities need to update and in some case create substantive compliance programs to the new powers granted FERC in the Energy Policy Act of 2005.  FERC has recently begun to assess the first round of fines and penalties on entities that it determines are not demonstrating a "culture of compliance." 

Surface Transportation Board Proposes Revising Railroad Cost of Capital Methodology

August 16, 2007

Analysis by:Robert Rosenberg, Partner,

Analysis of:STB Notice of Proposed Rulemaking on Railroad Cost of Capital Methodology | www.stb.dot.gov

The Surface Transportation Board has proposed to change its methodology for calculating the railroad industry cost of capital.  The cost of capital is used for several regulatory purposes.  Lowering the cost of capital, as proposed by the agency, could increase the rate relief available to captive shippers.

A Bosporus Bypass? Maybe.

March 21, 2007

Analysis by:Leonard Coburn, President,

Analysis of:New Pipeline Will Bypass the Bosporus but Involve Russia | www.nytimes.com

1. A Bosporus pipeline bypass would alleviate the congestion in the crowded straits, provide access to a deepwater port, and potentially allow more crude oil shipments from Russia and Central Asia.

2.  Similar proposals for a direct bypass have been discussed for more than a decade and none has come to fruition, with the exception of the BTC pipeline (Baku-Tbilisi-Ceyhan pipeline) transporting crude oil from the Caspian Sea directly to the Mediterranean Turkish port of Ceyhan.

3.  The big question whether the economics and politics are sufficient for the latest proposal and whether the pipeline actually will built.

View All GLG News by members of this Study Group