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RIGHTS-OF-WAY ACROSS FEDERAL LANDS:
TRANSPORTATION OF ALASKA'S NORTH SLOPE OIL

3

HEARINGS

BEFORE THE

COMMITTEE ON
INTERIOR AND INSULAR AFFAIRS

UNITED STATES SENATE
NINETY-THIRD CONGRESS

JUL 2 1973

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FIRST SESSION

ON

S. 970 UN VIS
A BILL TO DEAL WITH THE CURRENT ENERGY CRISIS AND
THE SERIOUS SHORTAGES OF PETROLEUM PRODUCTS
FACING THE NATION AND TO AUTHORIZE CONSTRUCTION
OF THE TRANS-ALASKA PIPELINE

S. 993

A BILL TO AUTHORIZE THE SECRETARY OF THE INTERIOR
TO ISSUE RIGHTS-OF-WAY AND SPECIAL LAND USE PERMITS
FOR THE CONSTRUCTION OF PIPELINES IN THE STATE OF
ALASKA UNDER CERTAIN CIRCUMSTANCES, AND FOR OTHER

PURPOSES

S. 1565
A BILL TO PERMIT CONGRESS TO PLAY ITS PROPER ROLE
IN THE FORMULATION OF POLICY RELATING TO FOREIGN
COMMERCE, THE PUBLIC LANDS, AND THE ENERGY NEEDS

OF THE COUNTRY

MAY 2, 3, 1973

PART 3

Printed for the use of the Committee on Interior and Insular Affairs .

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COMMITTEE ON INTERIOR AND INSULAR AFFAIRS

HENRY M. JACKSON, Washington, Chairman ALAN BIBLE, Nevada

PAUL J. FANNIN, Arizona FRANK CHURCH, Idaho

CLIFFORD P. HANSEN, Wyoming LEE METCALF, Montana

MARK O. HATFIELD, Oregon J. BENNETT JOHNSTON, JR., Louisiana JAMES L. BUCKLEY, New York JAMES ABOUREZK, South Dakota

JAMES A. MCCLURE, Idaho
FLOYD K. HASKELL, Colorado

DEWEY F. BARTLETT, Oklahoma
JERRY T. VERKLER, Staff Director
WILLIAM J. VAN Ness, Chief Counsel
HARRISON LOESCH, Minority Counsel

(11)

CONTENTS

Page

5

8

10

STATEMENTS

Bayh, Hon. Birch, a U.S. Senator from the State of Indiana---

20, 24

Cicchetti, Dr. Charles, visiting associate professor of economics and envi-

ronmental studies ; Dr. A. Myrick Freeman, visiting associate professor

of economics, University of Wisconsin; John Dienelt, attorney, environ-

mental defense fund; Thomas B. Stoel, Jr., Natural Resources De-

fense Council; Dr. Robert Curry, environmental geologist, University

of Montana.

91, 150

Curry, Dr. Robert, environmental geologist, University of Montana.. 212, 219

Dienelt, John F., on behalf of the Wilderness Society, Environmental

Defense Fund, Inc. and Friends of the Earth.--

98

Egan, Hon. William A., Governor of the State of Alaska.-

50, 59
Evans, Brock, Washington, D.C., representative for Sierra Club and Fed-
eration of Western Outdoor Clubs.

254

Fannin, Hon. Paul J., a U.S. Senator from the State of Arizona.-

19

Freeman, Dr. A. Myrick, visiting professor of economics, University of

Wisconsin

194, 200

Gravel, Hon. Mike, a U.S. Senator from the State of Alaska.

49

Kimball, Thomas L., executive vice president, National Wildlife

Federation

262

Lahn, Richard, for the Sierra Club and Federation of Western Outdoor

Clubs

251

Rice, Prof. Richard A., professor of transportation, Carnegie Mellon

University

266, 270

Stevens, Hon. Ted, a U.S. Senator from the State of Alaska_

71

Stevenson, Hon. Adlai E., III, a U.S. Senator from the State of Illinois -- 39, 43

Stoel, Thomas B., Jr., Natural Resources Defense Council -

118, 125

Waldon, David, president, Interprovincial Pipeline Research Ltd., accom-

panied by Roger H. Clute, chairman of technical committee, and Donald

Wilson, research coordinator.---

241

Smith, Anthony Wayne, president and general counsel, National Parks

and Conservation Association.---

258

86

APPENDIX

Brackett, William W., vice president and general counsel, Arctic Gas,

letter to Senator Jackson, dated April 30, 1973----

Hubley, Raymond C., Jr., executive, director, The Izaak Walton League

of America, Inc., letter to Senator Jackson, dated May 10, 1973-

283

RIGHTS-OF-WAY ACROSS FEDERAL LANDS: TRANSPORTATION OF ALASKA'S NORTH SLOPE OIL

WEDNESDAY, MAY 2, 1973

U.S. SENATE,
COMMITTEE ON INTERIOR AND INSULAR AFFAIRS,

Washington, D.C. The committee met at 10 a.m. in room 3110, Dirksen Senate Office Building, Hon. Henry M. Jackson, presiding.

Present: Senators Jackson (presiding), Fannin, Haskell, Bartlett, McClure, Hansen, Johnston, Hatfield, and Buckley.

Also present: Jerry T. Verkler, staff director, and William J. Van Ness, chief counsel.

Chairman JACKSON. The committee will come to order.

OPENING STATEMENT OF THE CHAIRMAN

This is the first of 2 days of hearings on the transportation of oil from Alaska's North Slope to markets in the lower 48 States.

There are two contrasting points of view on this subject. The first is that Prudhoe Bay oil should be moved by pipeline to Valdez and then shipped by tanker to west coast markets. This position has the support of the administration, the State of Alaska and the companies that own the North Slope reserves.

The second point of view is that Prudhoe Bay oil should be moved overland by pipeline through Canada to Midwest markets. This position has the support of a number of conservation organizations and some Members of Congress from Midwestern States.

The major purpose of the hearings is to identify and to review the important issues of public policy presented by these two points of view and to determine their relationship to the national interest and to resolving the critical energy shortages we face.

It is my personal judgment that the trans-Alaska pipeline better serves the national interest for one major reason. That reason is timing

The main issue presented is whether the Congress is willing to incur a delay in bringing North Slope oil to markets of at least 3 years, and possibly much longer, to work out all of the arrangements necessary to building an overland pipeline across Canada.

There is, in fact, no assurance that the required agreements to build a pipeline across Canadian territory could be worked out within any reasonable timeframe.

The potential for delay in connection with a trans-Canadian oil pipeline is immense.

First, no group has yet formally proposed to build a trans-Canadian oil pipeline.

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