North Western aggressively solicits for the transportation of coal. Its efforts thus far have been most gratifying, increasing from 8.1 million tons in 1970 to more than 13.7 million tons in 1974. Unfortunately, North Western's efforts and those of its fellow railroads are in jeopardy because of two recent occurrences. One of these, a proposal for federal eminent domain authority for coal slurry pipelines, attempts, under the cover of an energy shortage, to obtain a federally endowed right to "cream skim." It is proposed that this power be given to such pipelines without the necessity for the comprehensive regulation which the Congress has attached to similar power bestowed on other pipelines. In reality, such legislation has nothing whatsoever to do with an energy shortage. Similar attempts have been made in earlier sessions, and they will continue to be made. The only difference is that, for the first time, proponents are able to use the energy shortage as a cover. Make no mistake--the surface transportation system of the United States can and shall be only as good as the Congress makes it. It has long been fashionable to criticize regulatory agencies for the failure of one segment or the other of the transportation industry to be highly successful. The blame, however, may not all be placed correctly. A regulatory agency can only administer the laws given it by Congress. If Congress, through its policies, creates inequities in regulatory philosophy, the agencies can only carry out that inequity with predictable results. If the Congress fosters cream- -skimming, permitting the coal slurry lines to siphon off traffic needed and sought after by the nation's only true common carriers, who then, when the railroads are even more beset than today, shall serve the Petersburgs and the Farmingtons of this country? The coal slurry lines? Certainly not. They're not common carriers-they're "cream skimmers." This Congress, we submit, has some very basic decisions to make for itself in transportation, not the least of which is federal eminent domain authority for pipelines. The second occurrence is the decision rendered June 16, 1975 by the U. S. Court of Appeals for the District of Columbia in Sierra Club v. Morton, No. 74-1389. This decision, under the National Environmental Policy Act (NEPA) (42 U.S.C. 4331, et seq.) will have the practical effect of stopping coal development in many low sulphur fields of the West. Why? Because the procedure believed by the Court to be appropriate was not followed. But--there's the rub. Although NEPA or a form thereof was needed and is needed, yet one must wonder the extent to which the procedures of NEPA were rationalized prior to passage. It is neither the substance nor intent of NEPA that is harmful. It is the time-consuming procedures, out of all relationship with the good hoped to be accomplished by it. Recall the Trans-Alaska Pipeline Act, Public Law 93-153, and the fact that the Congress had to enact it to avoid the procedures of NEPA. If the Congress has any intention of making larger amounts of coal available to an energy-starving nation, similar procedures appear necessary. North Western has been hard at work since 1969 to make low sulphur coal a reality to the nation. Left to its own abilities and the abilities of its connecting carriers, this increased supply could already be a reality. We submit that the time has come for the Congress to decide that this nation's future is only as sound as its transportation system. It's time to remove, not enlarge, the inequalities. The railroads can and will deliver as they have in every time of crisis. Give them the chance. Enclosed, for inclusion in the hearing record, please find 10 copies of a statement on behalf of Du Pont on the National Petroleum and Natural Gas Conversion and Coal Substitution Act of 1975. We appreciate the opportunity to express our views on this important coal substitution program, and we hope our comments will be of value in your consideration of this bill. If you have any questions or want further information, please do not hesitate to contact us. STATEMENT OF E. I. DU PONT DE NEMOURS AND COMPANY ("DU PONT") The Du Pont Company appreciates the opportunity to express its views on the comprehensive coal substitution program contained in the National Petroleum and Natural Gas Conversion and Coal Substitution Act of 1975, S. 1777. Du Pont endorses the goal of phasing out the use of oil and natural gas as a boiler fuel over a reasonable period of years. Introduction Du Pont operates 100 plants in 31 states with about 100,000 employees. Basically, Du Pont is an independent nonintegrated petrochemical company which produces chemical products such as agricultural chemicals, pharmaceuticals, synthetic fibers, rubber, plastics, paints and films. In its diverse chemical manufacturing facilities, the Du Pont Company consumed the equivalent of about 200,000 barrels of oil per day last year. About 37 percent of the total energy consumed by Du Pont last year was used as feedstocks or raw materials, about 11 percent for process fuel and about 32 percent for the boiler fuel to which S. 1777 is directed. remaining 20 percent is steam and electricity the Company purchased. Changes in Du Pont's use of boiler fuel over the last 9 years are shown in Exhibit I. This chart shows a decreasing use of còal until last year, when, for the first time in 7 years, the use of coal increased. Coal usage, The |