A Memorandum of Understanding (MOU) between the Interstate Oil and Gas Compact Commission (IOGCC) and the United States Energy Information Administration (EIA) regarding cooperation in the development and sharing of statistical information.

Whereas, the IOGCC is an organization of Governors of 37 oil and natural gas producing States which are each responsible for the development and regulation of the oil and natural gas resources within that State, and

Whereas, many member States of the IOGCC, as a part of their oil and natural gas development and regulatory responsibilities, gather information concerning the production and sale of oil and natural gas resources from within that State, and

Whereas, the EIA, which was created and empowered by section 205 of the Department of Energy organization Act (42 USC 7135) as the statistical agency of the U.S. Department of Energy, is responsible for providing policy-independent data, forecasts, and analyses to promote sound policy making, efficient markets, and public understanding regarding energy and its interaction with the economy and the environment, and

Whereas, the Secretary of Energy Spencer Abraham announced a Natural Gas Data Collection Initiative in June 2003 designed to improve the quality and timeliness of natural gas data, and

Whereas, the National Petroleum Council (NPC) in a report dated September 2003 entitled “Balancing Natural Gas Policy – Fueling the Demands of a Growing Economy” recommends that EIA coordinate with States and Federal Agencies to improve data-collecting processes, and

Whereas, the IOGCC, representing the oil and natural gas producing States, and the EIA, desire to work together to fulfill the Secretary of Energy’s Natural Gas Data Initiative and the NPC recommendation concerning monthly natural gas production and consumption data,

Now THEREFORE, the IOGCC and EIA agree as follows:

1.  Purpose:  The purpose of the MOU is to set up a mechanism whereby representatives of the IOGCC and its member States and representatives of EIA can work together to improve data-collecting processes in order to make the data more accurate and timely. 

2.  Objective:  The objectives of the MOU are to establish a joint team that will:

1. Increase the timeliness and accuracy of monthly natural gas production data estimates at the State and National level published by EIA.  
2. Facilitate the access of the public to State and EIA websites and the production and consumption data on them.
3. Set up and maintain appropriate official contacts between State and EIA staff.
4. Facilitate collection, editing, analysis, and dissemination of production data.
5. Consider other production or consumption work as the joint team progresses on the above and develops new ideas.

3.  Background:  The member States of the IOGCC are each responsible for the production of oil and natural gas within the boundaries of that State.  As a part of that responsibility, the States each also regulate and most tax the production of oil and natural gas within that State.  Most of the States are therefore in possession of a great deal of information concerning the production and consumption of the oil and natural gas within the United States, and specifically the production and consumption of natural gas.  The EIA as the statistical agency of the U.S. Department of Energy is charged with collecting and then providing policy-independent data, forecasts, and analyses.  The purpose of such is to promote sound policy making, efficient markets, and public understanding regarding energy and its interaction with the economy and the environment. 

4.  Authorities:  Nothing in this MOU alters the responsibilities or statutory authorities of EIA, or individual States.  This MOU does not supersede any existing agreements between the EIA and individual States.

5.  Responsibilities:  The IOGCC and EIA agree to:

1. Assemble a team to identify mechanisms that will accomplish the objectives described herein, and provide periodic reports of their findings and recommendations, covering both topical and procedural issues.

2. The team will invite representatives from state oil and gas regulatory agencies, the IOGCC, EIA, DOE and FERC to participate.

3. Identify key areas of concern.

4. Recommend proposed actions and solutions.

5. Consult and coordinate with other State and Federal agencies, and other organizations, as issues and solutions are developed.

6.   Conditions:

a. This MOU in no way restricts either of the parties from participating in any activity with other public or private agencies, organizations or individuals.

b. This MOU is neither a fiscal nor a funds obligation document.  Nothing in this MOU authorizes or is intended to obligate the parties to expend, exchange, or reimburse funds, services, services, or supplies, or transfer or receive anything of value.

c. This MOU is strictly for internal management purposes for each of the parties.  It is not legally enforceable and shall not be construed to create any legal obligation on the part of either party.  This MOU shall not be construed to provide a private right or cause of action for or by any person or entity.

7.  This MOU shall not be used to obligate or commit funds or as a basis for transfer of funds.

8.  Authentication:  This MOU shall become effective upon the later date of the signatures of all parties listed below, and shall be in effect for two years, or until it is extended upon mutual written consent of the parties.  It may be amended at any time by mutual written agreement of the parties.  At the end of two years, the IOGCC and EIA agree to discuss an extension of this MOU for mutual benefit.  Either party may terminate the MOU after providing a 90-day advance written notice to the other.

Signatures: