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Administration of Natural Gas Contracts Gas Control

Chris A. Kennedy, Natural Gas Marketing and Transportation (1991)

This paper addresses the topic of administration of gas contracts as it pertains to gas control. There was no standard in any industry segment ie., producer, pipeline, local distribution company, or end-user, as to how these industries confront this function. Furthermore the development of computer software for this particular function (for both mainframe and personal computers) has lagged, leaving the industry to generate the tools to handle a very dynamic situation. Once a decision was made to internally solve the problems encountered in tracking gas movement, often the “gas marketing” people were a low priority for mainframe data processing time. In order to cope with information requirements, natural gas professionals spent time, usually on a personal computer, designing spreadsheets, data bases and programs. What has developed is a “system” of non-integrated, nonstandardized data. This problem is not only an intercompany problem, but often an intracompany dilemma as well. For instance record-keeping in an exploration and production company may show different data between the production, marketing, division order, and accounting departments. Even EIA3 records a balancing item that “represents the differences between the sum of the components of natural gas supply and the sum of the components of natural gas disposition. (Exhibit C) These differences may be due to quantiti