Section 3(c) (1) adds the words "and other lands." This subsection would vest new authority in the Secretary over all forms of energy produced on state or private lands without establishing guidelines or standards for the exercise of that authority. He could determine the proportionate shares of non-federal energy that must be transported for each shipper, even if the line crossed a relatively small area of public land. This new authority duplicates the jurisdiction of the Interstate Commerce Commission and the Federal Power Commission to prevent unlawful discrimination and preferences and could cause legal conflicts between the agencies. III. The immediate question before this committee today is the construction of the trans-Alaskan oil pipeline. This is a matter which must be resolved expeditiously so that the vast oil reserves of the Prudhoe Bay area can be made available to American consumers. We fully support expeditious action on this particular problem as part of a national program for indigenous energy resource development. However, the bill introduced by Senator Jackson, S.1081, addresses itself to a much broader problem than the trans-Alaskan pipeline. The bill's scope extends to the development of every energy resource which must be transported across federal lands and even, in certain instances, across state and private lands. The ramifications of this extension are far reaching and touch the very vitals of every form of energy in the U.S., raising questions of broad public policy. At issue certainly is the environmental impact of transmission systems. Such impacts should be evaluated with the aim of protecting America's environment and, equally important, developing our indigenous resources. Also involved is the economic and political structure within which resource development will take place and the legal parameters which will impinge upon and direct the thrust of resource development. In addition, legislation of this scope, unless extremely carefully drawn, could result in a proliferation of endless legal actions with the resultant critical delays to indigenous resource development. What is before you, therefore, is whether or not America can develop her vast indigenous energy resources, how those resources will be developed and the production, distribution and consumption patterns which will maximize resource value in the national interest. On the basis of the foregoing, the National Coal Association recommends the following program: First, specific legislation should be passed promptly to correct the Court of Appeals restricted interpretation of Section 28 of the Mineral Leasing Act by permitting the use of such areas as are necessary to construct pipelines. In addition, as an alternative to tying broad policy issues involved in the movement of energy across federal lands to the immediate issue of the Alaskan pipeline, we suggest that the National Academy of Sciences or the National Academy of Engineering should be directed to undertake a detailed interdisciplinary study of all the ramifications involved in the transportation of energy resources across federal lands. This study should delve into all of the points we have discussed above, including but not limited to the economic, political, legal, sociological and environmental consequences of such distribution. Its findings should be made available to all responsible congressional committees, to governmental agencies involved in land use planning, to persons concerned primarily with environmental impact and to affected industries. Input to this study should be sought from government, both state and federal, industry, and environmental groups, along with others, so that a proper empirical framework and rationale for future regulatory action can be established. The National Coal Association offers our fullest cooperation to this committee and others involved in this all-important endeavor. TOWARD RESPONSIBLE ENERGY POLICIES A JOINT ENERGY POLICY STATEMENT of the AMERICAN GAS ASSOCIATION March 12, 1973 PREFACE The United States is facing a critical energy problem. The supply of secure and environmentally-acceptable energy will not be adequate to meet prospective demand unless there is a change in the economic and political climate affecting the energy industries. The few brief local interruptions of energy supplies in the past few years, and the restrictions on sales of natural gas now in effect in a number of states throughout the nation, are only a taste of what may lie ahead a few years from now. Energy problems must be placed high on the list of our national priorities. Time is of the essence, since it often takes from five to ten years after a decision is made to develop new fuel sources or to construct electric generating facilities before additional energy supplies can be delivered to consumers. Unless prompt actions are taken, serious energy shortages will spread to all parts of the nation. The attached joint energy statement, "Toward Responsible Energy Policies," has been prepared to alert the nation to the imminence of a major energy crisis and to recommend constructive actions to avert it. We present this statement with the hope that it will make a contribution towards these goals. Mr. F. Donald Hart, President Mr. W. Donham Crawford, President Mr. Frank N. Ikard, President Mr. Carl E. Bagge, President Mr. Charles Robbins, President TOWARD RESPONSIBLE ENERGY POLICIES The United States is faced with a growing energy problem which has the potential of developing into a major national crisis. Public awareness of this is vital to its resolution. The symptoms of difficulty first appeared in the 1960's, although they were largely obscured by an economic slowdown. It became increasingly apparent that we were living on our basic fuel reserves. Fuel additions were not matching fuel consumption, a warning that our energy economy was shifting from one of abundance to one of scarcity. The nation, and particularly the Eastern Seaboard, became more and more dependent upon imports of foreign oil. Natural gas service curtailments began to take place in scattered locations around the country. spread. Today, natural gas curtailments are becoming more wideDomestic oil production from presently proved reserves in the lower 48 states is at maximum levels and excess capacity has Demands for low-sulfur fuel oil and low-sulfur coal disappeared. cannot be met. The energy problem is continuing to worsen, to the point that the nation is on a collision course with a major energy shortage. |