2000 ANNUAL REPORT

• Management Letter
• WSPA Issues Conference Draws Agency and Industry Leaders

Management Letter

When we look back in the years ahead, 2000 may well be seen as a turning point for WSPA. It was a year when "energy" issues boiled up like no time in history. High gasoline prices early in 2000 seemed a faint memory by year-end with electricity and natural gas prices in the news. Many environmental regulatory pressures in California spread with intensity to other states and jurisdictions, too.

In Arizona and Nevada, WSPA member companies and staff worked hard to bring good science to debates on air quality reminiscent of regulatory disputes in California a decade ago. In the Northwest, concerns over water quality - usually focused in the Bay Area - took on a life and intensity of their own. Proposed diesel regulations that first surfaced in California became topics of debate in the other Western states as well.

Throughout the turmoil and the changing demands of state regulators, however, WSPA and its member companies chalked up some major accomplishments, while continuing the struggle to resolve other critical issues. These efforts are outlined in detail in the electronic version of the WSPA Annual Report.

In the plus column, our efforts with the media in response to gasoline price volatility helped bring a measure of reality to the coverage. For the first time in many years, articles in major newspapers were balanced in pointing out the causes of the increases. Significantly, editorials in the Contra Costa Times and the Los Angeles Daily News supported the industry's position even while political leaders were attempting to create headlines by blaming the industry for the situation.

Also on the plus side, the industry was successful in overturning a regulatory claim that Kern County was not in compliance with the California Environmental Quality Act in issuing oil and gas permits. And, after many years of effort, we were able to obtain reasonable requirements for NPDES permitting for offshore operations.

At year's end, WSPA and its member companies were fully engaged in a wide variety of air, fuels and water quality issues across the Western states. Issues such as diesel, water discharge permits, new gasoline formulation proposals and the potential for future product shortages are of critical importance to our industry. Every one of them will have to be addressed effectively in the New Year.

Beyond the issue work, WSPA held its first "Issues Conference" with panel discussions on important issues such as air, water and energy deregulation. Many top government officials attended and were candid in their remarks about the regulatory outlook on the issues and their relationship with WSPA. Hopefully, the Issues Conference will be an annual opportunity for better communication and understanding between our members and government leaders.

At the Board of Directors meeting that followed the Issues Conference, a new WSPA logo and slogan were rolled out: "Credible Solutions, Responsive Service, Since 1907." We look forward to serving our members with those thoughts in mind and are grateful for their support.

Dwight L. Wiggins Chair WSPA Board of Directors		Douglas F. Henderson Executive Director WSPA

WSPA Issues Conference Draws Agency and Industry Leaders

WSPA held its first California "Issues Conference" in November including panel discussions on important issues such as air, water and electricity deregulation. The conference fostered open, productive and constructive dialogue on the economic and environmental impact of key industry issues in California. Many top government officials attended and candidly discussed their views on future environmental and regulatory challenges and on their relationship with WSPA.

WSPA’s goal in hosting the Issues Conference was achieved as participants gained a better understanding of the issues and work that lies ahead. The Association looks forward to future Issues Conferences as an annual opportunity to improve communication and understanding between our members and government leaders to find practical solutions more effectively and quickly.

The Issues Conference Agenda included the following:

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