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The basic responsibility for generation, transmission and distribution of electric power in the United States should rest with private industry. Government should not preempt or usurp the responsibility to produce power or to direct its transmission and distribution to meet the needs of the public or any select group. Where government is the owner of power generating facilities, such as multiple-purpose hydroelectric facilities, the energy produced should be sold at wholesale on equal terms, without discrimination and at prices reflecting the full cost of capital and taxes comparable to those paid by investor-owned utilities. Similarly, prices for electricity sold at retail by governmentowned and financed power suppliers should reflect full cost of money and taxes.

IV. Federal Lands

A. Energy Potential on Federal Lands Much of the nation's energy potential, including offshore oil and gas reserves, oil shale deposits, uranium, western coal deposits, and geothermal energy sources, is located on federal lands. Potentially productive acreage owned by the federal government should therefore be open for exploration and development at a rate and in a manner designed to maximize the timely development of these domestic resources with appropriate environmental safeguards.

B. Multiple Use and Wilderness Areas Certain lands owned by the federal government are devoted to, or are available for, watershed protection, forestry and forest products, mining, oil and gas production, agriculture and grazing, wildlife and recreation. The concept of compatible multiple use should be followed so that mineral resource development may take place along with other uses such as forestry, wildlife, agriculture and recreation.

Human needs for wilderness areas should be recognized, and appropriate areas set aside now on the basis of scenic beauty, proximity to population centers, impact on local economies, and other reasonable criteria. Lands proved not to meet these criteria and offering proven potentials for energy sources should be promptly opened to mineral resources development.

C. Transmission Lines The authority to preserve and protect the public lands, and any regulations purporting to be issued in accordance with such authority, should

not be misused to advance federal power operations or to hamper the planning, construction and operation of non-federal transmission lines.

D. Boundaries of Federal Offshore Lands Current proposals to internationalize ocean areas beyond a depth of 200 meters are inhibiting exploration in such areas and should be strongly opposed. The United States is urged to assert promptly and forthrightly its exclusive jurisdiction over the mineral resources of the entire submerged portion of the continent off its shores seaward of state-owned offshore areas down to its junction with the abyssal ocean floor. The United States should work with other nations toward the ultimate objective of precise demarcation of boundaries of coastal nations' natural resources jurisdiction.

E. Withdrawals Congress should provide that before any federal land withdrawals of magnitude be made, there first be a public hearing on the proposed withdrawal in the state or states affected. A time limit should be placed on temporary withdrawals and withdrawals of 5,000 acres or more should require prior Congressional approval.

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WHY ANOTHER ENERGY STUDY?

Industry uses over 40 percent of all U.S. energy consumption to produce the wide range of goods and services demanded by the public. Many of these products are critical to national defense, public health, adequate food supplies, and community services. Yet, the energy problems facing industry are little understood or appreciated.

Decisions on various government policies may be made without adequate information, particularly about industry energy. needs. These policies involve long-run energy supplies, government allocation of supplies, prices, etc.

This survey was designed in cooperation with the following government groups to assure that the information we gather will be of maximum use to their policy makers.

Congress:

Senate Committee on Interior and Insular Affairs

House Committee on Interstate and Foreign
Commerce

House Committee on Science and Astronautics

Executive: The Energy Policy Office

Department of the Interior

Department of Commerce

WHAT INFORMATION WOULD BE DEVELOPED AND WHY?

The survey focuses on four areas of legislative concern

1. Industry's experiences with energy shortages and their impact in terms of output and employment.

2. The feasibility of industry to substitute energy resources, the costs and time required.

3. The potential for industry to conserve energy, the costs and time required to implement plans.

4. Energy reserves held by industry in relation to needs.

There is no aggregate data on these problems, even though they are critical to making public policy decisions and implementing government programs such as mandatory allocation programs for propane and petroleum. In light of the new allocation program, this type of information is more important than ever to assure that future government action is realistic and economically sound.

In addition, the information you help us develop will also help identify any energy problems you may have.

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