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SENATE RESOLUTION 45
NATIONAL FUELS AND ENERGY POLICY STUDY This publication is a background document for the National Fuels and Energy Policy Study authorized by Senate Resolution 45, introduced by Senators Jennings Randolph and Henry M. Jackson on February 4, 1971, and considered, amended, and agreed to by the Senate on May 3, 1971.
The resolution authorizes the Senate Interior and Insular Affairs Committee, and ex-officio members of the Committees on Commerce and Public Works and the Joint Committee on Atomic Energy, to make a full and complete investigation and study of National Fuels and Energy Policies.
This document is published to assist members of the Committee and other interested parties in their understanding of the issues inherent in the formulation of a long-term National Energy Policy which assures the continued welfare of the Nation, including balanced growth, safeguarding and enhancing the quality of the environment, and national security.
COMMITTEE ON INTERIOR AND INSULAR AFFAIRS
HENRY M. JACKSON, Washington, Ohairman CLINTON P. ANDERSON, New Mexico GORDON ALLOTT, Colorado ALAN BIBLE, Nevada
LEN B. JORDAN, Idaho FRANK CHURCH, Idaho
PAUL J. FANNIN, Arizona FRANK E. MOSS, Utah
CLIFFORD P. HANSEN, Wyoming QUENTIN N. BURDICK, North Dakota MARK O. HATFIELD, Oregon GEORGE MCGOVERN, South Dakota HENRY BELLMON, Oklahoma LEE METCALF, Montana
JAMES L. BUCKLEY, New York
JERRY T. VERKLER, Stall Director
CHARLDS Cook, Minority Counsel
Ex Officio Members Pursuant to Section 3 of Senate Resolution 45
COMMITTEE ON COMMERCE
NORRIS COTTON, New Hampshire
COMMITTEE ON PUBLIC WORKS
JENNINGS RANDOLPH, West Virginia, Chairman
JOHN SHERMAN COOPER, Kentucky
JOINT COMMITTEE ON ATOMIC ENERGY ALAN BIBLE, Nevada
HOWARD H. BAKER, JR., Tennessee
WILLIAM J. VAN NESS, Ohief Counsel
ABLON R. TUSSING, Staj Economist
MARY JANE DUE, Staf Counsel
STEVEN P. QUARLES, Special Counsel
Hansen, Hon. Clifford P., a U.S. Senator from the State of Wyoming----
Department of the Interior, accompanied by Mike Harvey, Chief, Divi-
Minerals; John Sprague, Chief, Division of Offshore Minerals.-------- 15, 32
leases public and acquired lands, under supervision Dec. 31, 1971–U.S.
Page The Energy Policy Project..
336 Letter to Senator Jackson, dated July 14, 1972.
336 Robert B. Krueger, Los Angeles, Calif..
347 Responses to questions.
348 "An Evaluation of United States Ocean Policy", from McGill Law Journal, Montreal, vol. 17, 1971, No. 4.
370 Thomas R. Stauffer, Harvard University-.
466 Letter to Senator Jackson, dated September 22, 1972.
466 "Estimated Economic Cost of U.S. Crude Oil Production," sum
mary of paper presented to the annual meeting of the Society of
Petroleum Engineers, San Antonio, Tex., October 14, 1972----- 469 American Gas Association.
492 Responses to questions.
493 American Mining Congress
501 Letter to Senator Jackson, dated August 11, 1972.
502 American Petroleum Institute..
513 National Coal Association.
552 National Ocean Industries Association.
569 Independent Petroleum Association of America..
583, 621 Statements of W. M. Elmer and Richard A. Rosan on behalf
of American Gas Association and Independent Natural Gas
UNSOLICITED STATEMENTS FOR THE HEARING RECORD
633 633 634 634 636
Responses to questions.--.
Senator Jackson, dated August 4, 1972..
Secretary Morton, dated July 17, 1972. State of Louisiana
Letter to Senator Scott, dated August 9, 1972..
Letter to Senator Jackson, dated July 14, 1972.
Responses to questions.. Varn Petroleum Co----
Letter to Senator Jackson, dated August 9, 1972--
636 637 638 638 638 640 641 617 647 647 649 649
FEDERAL LEASING AND DISPOSAL POLICIES
MONDAY, JUNE 19, 1972
Washington, D.C. The committee met at 10 a.m. in room 3110, New Senate Office Building, Senator Frank E. Moss, (chairman) presiding.
Present: Senators Moss, Hansen, Anderson, Jordan of Idaho, and Allott.
Also present: William J. Van Ness, Richard D. Grundy, Arlon Tussing, Mary Jane Due, and David Stang.
Senator Moss. The subcommittee will come to order.
OPENING STATEMENT OF THE CHAIRMAN
Today's hearing concerns the Federal policies that govern development of energy resources on the public lands.
The purpose is general oversight of the various laws under which fuels and energy resources are leased.
As a part of the energy study, National Fuels and Energy Policy Study, this proceeding will examine how the resources of the public lands can best help to meet the Nation's growing need for clean and economical energy.
The public lands of the United States, including the Outer Continental Shelf, are certain to play a growing role in the energy budget of the United States.
At the turn of the next century, resources that have hardly begun to be developed-oil shale and geothermal energy-may be immensely important.
In the intervening period, however, the oil and gas from the Outer Continental Shelf and the immense coal resources of the West offer the largest domestic stocks of new energy available with current technology. This hearing places special emphasis on policies that govern the leasing of these two sources of fuel
. The committee's main concern today with coal is to ascertain the policies, criteria, and procedures governing the Interior Department's issuance of coal leases and prospecting permits. We have learned dramatically from developments in the Four Corners region of the Southwest that we cannot afford to view coal leasing in isolation from a host of other economic, social and environmental considerations.
The committee is interested in determining whether the Interior Department's current coal leasing policies, regulations and procedures do in fact take these considerations into account, and whether legislation is necessary to enable the Department to do this job effectively.
The committee has already held two days of oversight hearings in April 1972 on the administration of the Outer Continental Shelf Lands Act. These hearings reviewed the place that OCS oil and gas can have in meeting National energy requirements and the environmental issues of OCS development.
Today's consideration of Outer Continental Shelf policy attempts a new look at the issue that has provoked controversy for many years, the method of allocating oil and gas leases, and the methods of collecting fair market value for these resources.
The committee is interested in any evidence that alternative systems of lease bidding might encourage more rapid resource development, lead to greater competition, or produce more revenues in the long run than the system of cash bonus bidding.
Today's hearing also will begin an exploration of the question whether the coastal States ought to share in Federal revenues from Outer Continental Shelf mineral leasing.
Today, we are receiving testimony only from the Interior Department. In addition to the Department's presentation today, we have requested the Department and other agencies to furnish for the record comprehensive answers to a much more detailed list of questions and policy issues.
After the committee members and the staff have had an opportunity to evaluate the testimony and supporting materials from today's hearing, another day of hearings may be scheduled in which these issues may be examined further.
Although the witness list for this later hearing has not been determined, it is clear that the committee will not be able to hear everyone who wants to testify on the issues.
All interested parties, however, are invited to submit statements for the record, responsive to the committee's lists of questions and policy issues for this hearing.
Without objection I will insert in the record the questions and the policy issues to which I referred.
(The questions and policy issues referred to follow:)
(From the Congressional Record, May 22, 1972)
NOTICE OF HEARINGS ON FEDERAL LEASING AND DISPOSAL POLICIES FOR ENERGY
RESOURCES ON THE PUBLIC LANDS
Mr. JACKSON. Mr. President, leasing and disposal policies for energy resources on the public lands will be the subject of hearings conducted by the Committee on Interior and Insular Affairs in the present session of Congress, June 19, 1972, is scheduled as the first of 2 hearing days. These hearings are part of the National Fuels and Energy Policy Study authorized by Senate Resolution 45, and conducted by the Interior Committee with exofficio participation from the Commerce, Public Works and Joint Atomic Energy Committees.
Secretary of the Interior Rogers C. B. Morton has been asked to appear and testify on the Interior Department's planning and management policies for leasing and development of energy resources on the public lands, including the Outer Continental Shelf. Comprehensive lists of questions and policy issues have been sent to the Secretary and a basis for his testimony and for materials and exhibits to be submitted for the hearing record. Mr. President, I ask unanimous consent that these questions and policy issues be printed in the Record following my remarks.
Representatives of other executive branch agencies will be requested to testify or to submit statements for the record, giving additional information, views,