CHICAST ANI NOTME PERSZEREK TRANSPORTATION COMPANY National Pelem and Natural Gas Conservation Chicago and North Western Transportation Company is of 1,000 les of railroad in eleven midwestern states, s a territory bounded by Duluth, Minnesota on the north, on the south, Lander, Wyoming on the west, and bakes, g through routes to and from all points and piskaa Western is committed to the transportation NỀ th 1973 and 1974 it transported in shana k‡ 19h, hahaha - 2 Bethlehem Steel Corporation The government must make sure that strong incentives are present to encourage the development and utilization of all domestic fossil fuel reserves. We submit that some of the major incentives which should be considered are: (a) The price of domestic crude oil should be decontrolled. Any accompanying windfall tax should provide exemption for income which is devoted to further exploration and development. (b) The wellhead prices of new natural gas devoted to interstate (c) A tariff should be placed on imported oil to insure that Many of the steelmaking technologies, as well as those in other industries, have advanced in quality, productivity, and efficiency due to the availability of liquid and gaseous fuels. To forbid industrial facilities to use any fossil fuel other than coal would be catastrophic for the following reasons: - 3. Bethlehem Steel Corporation (a) Direct firing of coal would cause setbacks in product quality (c) Large capital expenditures would be required to develop necessary transportation capacity are very long and are not expected to improve. Congress' approach should be to encourage the development of such facilities as mine mouth combined cycle coal gasification/liquefaction and electric power generating facilities. Such installations would derive maximum energy from the available coal in producing electric power and clean gaseous and liquid fuels. Existing electrical and pipeline distribution systems would be more fully utilized. The existing industrial technologies would be sustained and the overall national capital drain could be kept at a much more tolerable level. 4 Bethlehem Steel Corporation A concern of the steel industry is the nation's supply of metallurgical coal. High grade metallurgical coal is indispensable to the production of iron and steel. Because of its low sulphur content, it has become a necessary source for use in heat and power generation. This factor has already produced shortages of supply. S.1777 would aggravate this shortage. The Steel Industry had to import significant quantities of metallurgical coal and coke during 1974 at premium prices because almost a quarter of the nation's metallurgical coal production was being exported. Shortfalls in the supply of metallurgical coal are expected to continue worldwide - and perhaps worsen - as projected expansion of steel making facilities gets under way both here and abroad. The supply/demand balance of metallurgical coal would be further aggravated by government actions to bring about conversion to coal of oil consuming utilities and industrial plants, unless provisions is made to prevent the use of metallurgical coal for this purpose. Burning metallurgical coal to generate steam is a wanton waste of a precious resource. One of the reasons for the present restraint by industry in the use of coal is the problem of meeting secondary air quality requirements. A relaxation of those requirements in areas where air quality would not be seriously damaged would increase coal usage at least until coal conversion and pollution abatement facilities could be developed further. Bethlehem appreciates the opportunity to make its views known on the proposed bill S.1777, and hopes that this statement will help formulate |