House Concurrent Resolution No. 18




            WHEREAS, liquefied petroleum gas, or propane, is a vital source of energy for many citizens in the state of Missouri; and

            WHEREAS, propane is commonly used for heating homes, cooking, refrigeration, and transportation; and

            WHEREAS, citizens in the state of Missouri are dependent on propane as an energy source, especially during the winter season; and

            WHEREAS, the 1,900 mile, 70,000 barrels of propane per day Cochin pipeline from Alberta, Canada was closed for a large portion of December; and

            WHEREAS, 189,000 barrels of propane per day were exported from the United States in October 2012, while 408,000 barrels of propane per day were exported in October 2013; and

            WHEREAS, current inventories of propane can supply only 24 days of consumer demand, compared with 42 days a year ago; and

            WHEREAS, there are two primary storage facilities for supplying propane to the Midwest located respectively in Mont Belvieu,Texas and Conway, Kansas; and

            WHEREAS, while Mont Belvieu, Texas, is home to the largest storage facility for propane, Conway, Kansas, is also a pricing hub; and

            WHEREAS, propane located at the storage facility in Conway, Kansas traded as high as $2.15 per gallon in the third week of January 2014, while propane located at the storage facility in Mont Belvieu, Texas traded at $1.48 per gallon; and

            WHEREAS, a gallon of residential propane in the Midwest cost $2.433 during the third week of January 2014, while costing $1.715 a year earlier; and

            WHEREAS, the closure of the Cochin pipeline, the increased amount of exports, the drastic increase in price, and the difference in price among propane storage facilities has resulted in the inaccessibility of propane to the citizens of Missouri:

            NOW, THEREFORE, BE IT RESOLVED that the members of the House of Representatives of the Ninety-seventh General Assembly, Second Regular Session, the Senate concurring therein, hereby strongly urge the United States Department of Justice to investigate the price increase of propane, the price disparity of propane among storage facilities, and the supply shortage of propane available to consumers; and

            BE IT FURTHER RESOLVED that the Chief Clerk of the Missouri House of Representatives be instructed to prepare a properly inscribed copy of this resolution for the Attorney General of the United States, each member of the Missouri Congressional delegation, and Governor Jay Nixon.