NATURAL GAS SUPPLY ASSOCIATION
805 15th Street N.W., Suite 510
Washington, D.C. 20005
DATE: August 4, 1997
CONTACT: Charlotte LeGates
PHONE: 202/326-9316
FAX: 202/326-9334
E-MAIL: clegates@ngsa.org
Natural Gas Producers Strongly Object to Department of Energy's
Proposed Changes To EIA's Collection Of Oil & Gas Reserve Data
Washington, DC -- The Natural Gas Supply Association (NGSA) is sending a letter today to the
Department of Energy's (DoEs) Energy Information Administration (EIA) which vigorously
objects to that agency's proposal to change Form EIA-23: "Annual Survey Of Domestic Oil And
Gas Reserves". EIA is proposing to change the definitions of what constitutes "proved reserves"
and to require respondents to report the average production price associated with each oil and gas
reservoir.
One reason for NGSA's objection is that the proposal would force companies to calculate two
different estimates of their reserves, one estimate for the EIA and another different estimate for
the Securities and Exchange Commission (SEC). "The existence of two different estimates of
U.S. oil and gas reserves would confuse both investors and the general public, and could
undermine investor confidence in the oil and gas industry," the letter states. NGSA also objects
because the proposal "places a large and unnecessary burden on the respondents without
providing any tangible public benefit."
The letter also points out that:
- The SEC reserve definitions are less subject to interpretation than the proposed EIA reserve
definitions.
- The reporting of reservoir production prices serves no useful purpose and is not a useful
measure of the value of the U.S. oil and gas reserve base.
- The proposed changes would create an artificial break in oil and gas reserves data series,
reducing the series value for determining economic and physical relationships within the
industry.
- EIA has failed to demonstrate any public need or benefit that makes the proposed changes
necessary.
- The proposed changes to the EIA reserve definitions would also increase oil and gas reporting
requirements to the SEC.
The complete NGSA letter is available from the NGSA receptionist, 202/326-9300.
The Natural Gas Supply Association represents producers and marketers of domestic natural gas.
This page was last updated August 31, 1997.
