U.S. states declare emergencies to help farmers hit by propane shortage

(Reuters) – At least eight U.S. Midwest states declared emergencies in recent weeks over regional shortages of propane needed by grain farmers to dry their crops amid a late harvest and wet weather.

Illinois, North Dakota, South Dakota, Minnesota, Nebraska, Iowa, Indiana and Wisconsin eased restrictions on the transport of propane to help alleviate the local shortages. There is no nationwide shortage and residential propane prices recently were about 22% below that of a year ago.

Spring flooding in U.S. Midwest farming states led to late harvests that have triggered a surge in demand for the fuel used to reduce moisture in corn crops to ready for sale or to safely store the grain.

“The late harvest and high demand for petroleum products throughout the Midwest have resulted in low supplies of propane as well as difficulty transporting,” according to a notice on Iowa Governor Kim Reynolds’ website.

The state’s declaration relaxes size and weight limits on vehicle transport. An earlier proclamation eased operating-hour rules on propane carriers. The latest rule, like most of the other states’ orders, is effective for a month.

Propane carriers faced four- to six-hour waits last week at the Conway, Kansas, propane terminal that is the nation’s second-largest, and drivers were facing restrictions due to the wait, one official said.

“There is plenty of propane on hand in the country,” said Greg Noll, executive vice president of Propane Marketers Association of Kansas. “We just need to get it from the points that have it on hand to the points where it is needed.”

Texas, which is home to the nation’s largest storage in Mont Belvieu, reported no emergency or shortage.

Consumers have not faced shortages because most homeowners would have had their tanks filled by now, said Noll.

Residential propane prices at the start of the U.S. heating season were under $2 a gallon, or about 22% lower than at the start of winter last year, according to government data issued on Monday.

Propane and propylene stocks were 97.6 million barrels the week ended Nov. 8, up nearly 14 million barrels from a year-ago, the U.S. Energy Information Administration reported last week. It said average wholesale propane prices in the Midwest were 78 cents a gallon excluding taxes, flat from a year earlier.

(Reporting by Arpan Varghese and Nakul Iyer in Bengaluru, Gary McWilliams in Houston; editing by Bill Berkrot)

South Dakota Red Cross Branch Responds To Propane Shortage

With propane prices rising and temperatures falling, thousands of people in South Dakota are worried that they won’t be able to heat their homes.

“If you think about 57,000 households in South Dakota or about 70 percent of people in the state who use propane for heating, that’s a real impact on our state,” said Senator John Thune.

Senator Thune has been working hard for relief aid from the federal government, including sending a personal letter to President Obama.

Until federal aid arrives, the Red Cross has stepped in, providing residents in the Standing Rock Sioux Tribe with warm places to stay, hot meals, and extra supplies.

“…our concern was making sure they had a warm, safe place to be and that they had safe food to eat while they were waiting for the cold to break or to get propane resupplied at their homes,” said Dan Kuecker, the Disaster Program Manager for Western South Dakota for the American Red Cross.

Power Grid Operators In California Call For Gas Conservation

In the midst of a bitter cold winter across the country, power operators are calling for voluntary conservation and the turning down of thermostats to protect natural gas levels.

In California, the issue is so severe that operators took the very unusual step of issuing a “Flex Alert” during the winter to ask people to conserve their uses of utilities.  A “Flex Alert” is usually sent in the summer when the temperatures are so high that air conditioner use strains the electrical grid.

In the Midwest, the gas shortage is driving prices to levels 33% or more higher than normal for this time of year.  One resident in St. Louis says they’re taking steps to keep their thermostats significantly lower after a delivery of 200 gallons of propane, which usually costs around $600, cost him $1,200.

Several U.S. Senators are demanding that federal consumer protection agencies look into the severe price fluctuations that are causing Americans to shut off their gas and heat out of fear of price spikes.

North Dakota Woman Found Dead With No Propane in Tank

North Dakota authorities are investigating the death of woman who was found in her home with an empty propane tank.

Debbie Dogskin’s body was discovered Tuesday morning at her Fort Yates home located on the Standing Rock Indian Reservation.

Temperatures on the reservation dropped to 1 degree below zero overnight according to Sioux County Sheriff Frank Landeis.

Autopsy results are expected today, but Landeis believes Dogskin “froze to death.”

Tribal officials have declared a state of emergency due to about 5,000 homes on the reservation are heated by propane. According to Tribal Chairman, Dave Archambault II, many residents are struggling to afford the more expensive fuel due to the high prices.

FERC Asks Enterprise To Help During Propane Shortage

Due to the nationwide propane shortage, the National Propane Gas Association (NPGA) asked the federal energy regulator to order more supplies to create more propane. The additional orders will come from an Enterprise Product Partners Pipeline.

The Federal Energy Regulatory Commission (FERC) stated in a notice that the association asked Enterprise, one of the biggest suppliers of propane in the country, to supply 75,000 barrel per day (bpd) of propane along its TE Products pipeline running from the Gulf Coast to the Northeast. Service will start immediately until the end of the first week of March.

“NPGA submits that due to unique weather and other circumstances beyond control of shipers, propane supplies throughout the country, particularly the Midwest and Northeast, have reached dangerously low levels,” the FERC notice said.

Millions of Americans throughout the Northeast and Midwest have suffered from the shortage during this record breaking cold winter season.

Midwest State Officials Take Action During Propane Shortage

Several state officials are investigating price gouging, trying to increase aid to low-income customers, and taking action against vendors due to propane shortages.

Midwestern and Southern residents are struggling to keep warm with the rising prices or supply cutoffs from propane distributors.

A major propane supplier in Kentucky was forced to stop delivering to commercial customers in several states after Kentucky’s attorney general was given an injunction against the company.

Missouri’s Justice Department and was asked by lawmakers to investigate rising propane prices. Missouri’s attorney general will be helping in the investigation as well.

A letter detailing concerns and actions of dealers was released by the Missouri Propane Association.

Colorado Lawmaker Wants to Declare State of Emergency

Colorado Senator Greg Brophy wants state officials to declare a state of emergency to assist families with skyrocketing propane prices.

Due to the many winter storms, many low-income families have maxed out their heating assistance benefits yet need more to continue staying warm throughout the winter.

Propane prices have risen by as much as 350% during this winter season across the United States. Residents of Colorado claim prices rose from approximately $2.50 a gallon to $5 a gallon and are expected to keep rising.

Michigan State Departments Assist Residents During Propane Shortage

Michigan Governor Rick Snyder announced today that state administration is taking action to assist residents who have been affected by the ongoing propane shortage.

The Department of Human Services and legislature are working together to dedicate $7 million to the Low Income Heating and Energy Assistance Program in addition to another $7 million that was devoted to heating assistance from the Michigan Energy Assistance Program.

A loan program is also being initialized to help propane dealers and distributors who are struggling to meet demand by the Michigan Economic Development Corporation.

Additionally, the state is pushing for increased propane supply. More than 1.3 million gallons of propane have been delivered to the state this week.