ரப

western union

Telegram

POSSIBLE UNDER THE PROVISIONS OF THE PROPOSED SENATE BILL 1777.
AS A RESULT, THE BILL WILL ACTUALLY IMPEDE OUR CONVERSION TO
ALTERNATE FUELS, WILL SLOW OUR ENVIRONMENTAL IMPROVEMENTS,
IMPAIR OUR PRODUCTIVITY, SERIOUSLY ERODE OUR EARNINGS AND ULT-
MATELY RESULT IN A SERIOUS IMPACT UPON OUR WASHINGTON PLANTS.
WE WILL PRESENT A DETAILED PAPER ON THE EFFECTS OF SB 1777 ON
OUR COMPANY AND OUR RECOMMENDATIONS FOR ITS MODIFICATION PRIOR
TO THE JULY DEADLINE. IF MODIFICATIONS ARE NOT MADE, IT WILL
DE NECESSARY FOR US TO URGE OPPOSITION TO THE BILL. SINCE IT
WILL HAVE A NEGATIVE EFFECT UPON THE EARNINGS AND EMPLOYMENT AT
OUR OPERATIONS IN YOUR STATE, I FEEL IT IS IMPORTANT TO HAVE AN
OPPORTUNITY TO SIT DOWN WITH YOU AND PERSONALLY DISCUSS THE
PAPER WITH YOU.

IF YOU ARE IN AGREEMENT, I MAVE ASKED BOB MAIER OF OUR WASH

SF-1201 (R5-69)

wu

western union

Telegram

INGION OFFICE AND BRUCE MCPHADEN OF OUR SPOKANE OFFICE TO
ARRANGE A MEETING WITH YOU TOWARD THE END OF THE MONTH TO
EXPLAIN OUR POSITION IN DETAIL.

WE THANK YOU FOR TAKING THE TIME TO CONSIDER THIS IMPORTANT
MATTER TO US.

SINCERELY,

CORNELL C. MAIER, PRESIDENT AND CHIEF EXECUTIVE OFFICER

KAISER ALUMINUM AND CHEMICAL CORPORATION

As you and Senator Jackson both suggested, Kaiser Aluminum & Chemical Corporation is submitting the attached statement (in 10 copies) for the record on S. 1777, the National Petroleum and Natural Gas Conservation and Coal Substitution Act of 1975. We have also responded to some of the appropriate questions and policy issues posed in the Congressional Record of May 20, and these also are for the record.

Kaiser Aluminum believes that establishing a comprehensive energy policy and program is the most urgent issue facing our nation. We also believe that the utilization of our coal resources must play an important role in meeting our energy requirements. We recognize that this bill is

but one strand in the fabric which will form the whole energy cloth, and we do agree with its intent. We cannot, however, nor of course can you, consider it in isolation. We feel you must take into account all of the other sources of energy in addition to coal; the severe capital crunch which is facing our nation; the world competitive position of all of those energy dependent industries, such as the aluminum industry; the real ability for the coal industry to expand rapidly and efficiently enought to meet the projected demand; the inadequate capacity of the transportation system; the need to convert to more abundant fuels; and the requirements to implement energy conservation.

As we review all these relevant issues, we can only conclude that S. 1777 does not provide the full scope of actions required to accomplish the coal conversion job and preserve a healthy economy. Specifically, we feel the bill falls short in its recognition of the tremendous economic impact stemming from the forcing of all major industries and utilities to burn coal. We feel many industries and the U.S. economy cannot stand this imposed cost in such a short period of time.

In the case of the aluminum industry, we know that the short time frame and unrealistic goals will severely handicap our industry in your

state.

The Honorable Jennings Randolph

June 27, 1975

Page Two

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We understand your concern for increasing energy from coal interest we share but we also remind you that the aluminum industry also plays a major role in your state and this bill, while attempting to cure one problem, will surely create another. We urge you to make modifications

to the bill to make it more workable and acceptable to all segments of the economy.

Sincerely,

Comelle Main

Cornell C. Maier

Cc: The Honorable Henry M. Jackson

The Honorable Warren G. Magnuson

STATEMENT BY

CORNELL C. MAIER

PRESIDENT AND CHIEF EXECUTIVE OFFICER

KAISER ALUMINUM & CHEMICAL CORPORATION 300 Lakeside Drive, Oakland, California 94643

Submitted for publication to

SENATE COMMITTEE ON PUBLIC WORKS

June 30, 1975

Concerning:

S. 1777, THE NATIONAL PETROLEUM AND NATURAL

GAS CONSERVATION AND COAL SUBSTITUTION

ACT OF 1975

As President and Chief Executive Officer of Kaiser Aluminum

& Chemical Corporation, I am submitting these remarks for the record concerning the proposed S. 1777, the NATIONAL PETROLEUM AND NATURAL GAS CONSERVATION AND COAL SUBSTITUTION ACT OF

1975, under consideration by the Senate Committee on Public Works.

Kaiser Aluminum & Chemical Corporation, headquartered in Oakland, California, maintains plants and offices in 26 states and 22 foreign countries. We employ approximately 27,000 employees and had sales of $1,735, 501, 000 in 1974.

Among our major businesses, our company produces aluminum

and aluminum products, industrial chemicals, agricultural chemicals and refractory products. All of these essential basic industries are dependent upon large quantities of dependable, low-cost energy.

Kaiser Aluminum located facilities, over the years, to take advantage of secure energy sources. Not unlike the entire aluminum industry, which has about one-third of its primary production facilities in the Northwest to take advantage of hydroelectric power, Kaiser Aluminum also has major primary aluminum facilities in the State of Washington. We located another one-quarter of our facilities

worth about $750 million

in Louisiana

during the early 1950's to take advantage of abundant natural gas. Later, we