Uganda Parliament Passes Second Oil Bill

KAMPALA, Uganda - The Ugandan parliament has passed the second oil bill, moving the East African nation closer to completing a new regulatory framework for its nascent oil sector, ahead of the planned development of oil fields along its western border.

The passing of the bill brings the country closer to reopening a new licensing round for the remaining acreage in the oil-rich Lake Albertine Rift basin.

The ruling National Resistance Movement party-dominated parliament voted late Thursday to pass the midstream bill, known as the Petroleum Refining, Conversion, Transmission and Midstream Storage Bill 2012, nearly three months after the upstream oil bill was passed, as the country continues to fast-track the enactment of new oil laws, following the discovery of around 3.5 billion barrels of crude reserves.

Parliamentary spokeswoman, Helen Kawesa, told Dow Jones Newswires Friday that the house will now consider the third and final oil revenue management bill to complete the new law chain.

"There's only one final bill pending, which will also be passed in the coming weeks," Ms. Kawesa said.

The midstream bill will regulate midstream operations, which include refining, transportation and storage of oil products, once the country starts production.

Unlike the previous upstream law, whose passing was delayed for several months as parliament bickered with the executive over the powers of the minister to license and revoke licenses, the midstream law quickly sailed through the house just after a few weeks of debate.

Ruling party lawmaker Stephen Birahwa said ruling party law makers endorsed the bill before its presentation to the plenary, speeding up its passage. Activists criticized the bill, however, saying once again it gives sweeping powers to the minister, which is a threat to good governance.

"It is going to be hard for Uganda to avoid the oil curse given the manner in which these bills have been passed," Winfred Ngabirwe, head of the pressure group Publish What You Want, told Dow Jones Newswires.

The bill grants the minister sole powers to award, suspend and initiate the development and implementation of policies concerning midstream operations among others.

Political observers say that Uganda's long-serving leader, Yoweri Museveni, is attempting to tighten his grip on the oil sector to fend off a growing challenge from an increasingly assertive parliament.

As the parliament continues to pass the laws, the government remains embroiled in a spat with Tullow Oil PLC, France's Total SA and China's Cnooc Ltd over the development plans and refining options for the country's crude.

The three companies are expected to invest up to $10 billion to develop the country's oil fields. While the companies are pushing for the building of a crude export pipeline, the government wants a larger refinery to refine the crude locally.

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CDOT vows to keep passes open this winter

Font ResizeTransportationBy Monte Whaley
The Denver Postdenverpost.comPosted: 12/16/2012 12:01:00 AM MST

Keeping Colorado's mountain passes open year-round is one of the biggest challenges faced by any highway crew in the country, and the state vows to keep its unbeaten streak going this winter season.

Colorado Department of Transportation personnel maintain 36 high-mountain passes and have been able to keep them passable around the clock for at least a decade, said CDOT spokeswoman Mindy Crane.

In some cases — think heavy winter storms — passes may close temporarily, Crane said.

"But in terms of keeping passes open, year-round we are able to do that. Well, and then there's Independence Pass," she said.

Independence Pass, at an elevation of 12,095 feet, is the highest mountain pass maintained by CDOT. It is open seasonally.

There are other exceptions as well.

State Highway 5 to Mount Evans — which reaches an elevation of 14,150 feet — is not considered a mountain pass by CDOT.

Milner Pass, at 10,758 feet, and Trail Ridge High Point, at 12,183 feet, are on U.S. 34 in Rocky Mountain National Park but are not maintained by CDOT.

The agency's inventory includes eight passes that cross elevations of more than 11,000 feet; 12 with elevations between 10,000 and 11,000 feet; and 11 with elevations in excess of 9,000 feet, Crane said.

Of the 36 passes CDOT maintains for year-round travel, Loveland Pass on U.S. 40 is the loftiest at 11,992 feet. The lowest is Raton Pass on Interstate 25 at the New Mexico border, at 7,834 feet.

Colorado couldn't keep many of the state's east-west passes open in the winter until 1929. An influx of surplus heavy equipment from World War I and improvements in technology allowed the state to keep Tennessee Pass — at 10,424 feet — open in the winter of 1928-29 for the first time.

These days, travelers rely on the state's mountain passes to get to ski areas, and CDOT uses single- and tandem-drive axle snowplow trucks, rotary snowplows, four-wheel-drive snowplow trucks, caterpillars, motor graders and front-end loaders to help keep passes passable.

CDOT this year will once again use forecasting, snowpack sampling and artillery ordnance from the ground and air to bring down avalanches in a safe manner, said CDOT chief engineer Tim Harris.

"Our maintenance forces are on call 24 hours a day, seven days a week during the winter to address every weather situation," Harris said. "Very often, they miss holidays, athletic events and family gatherings because of their service."

Monte Whaley: 720-929-0907, mwhaley

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