News : Governor says rulingwill benefit oil industry : Sidney Herald, Sidney, Montana



Make Us Your Homepage

Governor says rulingwill benefit oil industry

By Louisa Barber

Sidney Herald
Published on Sunday, August 29, 2010 7:07 AM MDT



Schweitzer


A Public Service Commission ruling will benefit Richland County oil producers as it guarantees they’ll have a better chance to get their products onto the upcoming TransCanada Corp. Keystone XL pipeline, Gov. Brian Schweitzer said Wednesday.

The Montana PSC ruled earlier this month that it could mediate connection disputes. That is to say if oil companies don’t believe they have a fair shot at hooking into the pipeline, they could appeal to the PSC.

“Oil producers told me they want to get on that pipeline,” Schweitzer said, because it’s cheaper to ship by pipeline than by rail or trucking. “I told them, I’m going to see to them that they get the chance to put their oil on the pipeline.” Schweitzer, who’s been outspoken in his support for the KeyStone pipeline, told the Herald he had organized meetings between officials from TransCanada Corp., oil producers, himself and North Dakota Gov. John Hoeven in Billings to work out an agreement that would allow Montana and its eastern neighbor to ship oil on the pipeline.

Interest was heavily generated by oil producers, Schweitzer said, convincing TransCanada officials to consider letting oil producers from both states to get on the 1,980-mile pipeline. “We have to allow for onramp,” he said.

Meanwhile, the company has said it has no problems with PSC’s ruling and looks forward to moving Montana and North Dakota oil markets.

Schweitzer told the Herald allowing Montana oil producers to hook into the Keystone XL pipeline keeps Montana oil competitive and continues production momentum for the state, which, besides North Dakota, is the only state in the country increasing oil production.

The governor said there could be a possible contract between Montana oil companies and TransCanada to get the oil shipped on the line. If there are any problems, regulatory authority will ensure Montana oil does ship and “all the oil gets on the pipeline.”

“I’m just not taking any chances,” he said. “We will trust, but we will verify” by regulatory authority.

reporter@sidneyherald.com

Comments

The following are comments from the readers. In no way do they represent the view of the Sidney Herald.

    Correct wrote on Aug 30, 2010 4:29 PM:

    " To Mel - the pipeline plans to run from Canada through Montana heading south to ship oil to Gulf Coast refining so any Montana oil would not go to Canada, it would go to refineries in the USA. "

    mel wrote on Aug 30, 2010 9:57 AM:

    " why don't you ship it to laurel and or billings. why do you have to ship it to canada then then they will in turn charge more for the finished product if it even comes back. keep it in the state that why it could be cheaper "

WRITE A COMMENT

Comments Policy:

All comments transmitted through, or linked from the site, are the sole responsibility of the person from whom such content originated. www.sidneyherald.com encourages our readers to engage in civil discussions about issues. We encourage a collegial, non-insulting tone. Comments that are submitted are not posted to the site immediately, but are reviewed by Herald staff. The Herald cannot edit or change your submissions.

DO NOT POST:
* Potentially libelous statements or damaging innuendo.
* Obscene, explicit, or racist language.
* Personal attacks, insults or threats.
* The use of another person's real name to disguise your identity.
* Comments unrelated to the story.


NOTE: Comments are limited to 250 Words.

There are some exceptions to the above rules when public figures are involved. We define public figures as individuals who work in the public’s eye and/or are candidates for public office and/or their position is paid with tax dollars.

Thank you for your comments!

(optional)
Current Word Count:
   








Marketplace

View All Ads
Place an Ad


Visit Sidney Herald online advertisers

Area Shopping

Area Shopping

View All Area Shopping


Jobs

Jobs

View All Jobs


Homes

Homes

View All Homes


Autos

Autos

View All Autos


State Wide Notices

A compilation of public notices in the state of Montana.

View All Notices



Featured Ads