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Nassikas, Hon. John N., Chairman, Federal Power Commission:-Continued

Copy of Federal Power Commission order No. 455, statement of

policy relating to optional procedure for certificating new pro-
ducer sales of natural gas, issued August 3, 1972, docket No.
R-441..

Federal Power Commission news release.
Map of major areas of the United States affected by natural gas

pipelines which have effected curtailment plans ....
Response to inquiry on the general subject of voltage reductions..
List of gas distribution companies and natural gas suppliers serv-

ing certain counties in the State of Ohio...
Replies to questions posed by Representative Clarence Miller.

Replies to questions posed by Representative Don H. Clausen.
"Of Time and Energy'--remarks by Adm. Isaac C. Kidd, Jr., Chief of

Naval Materiel to the Edison Électric Institute, San Diego, Calif.,

June 5, 1972----
Orlofsky, S., senior vice president, Columbia Gas System Service Corp.:

Status of oil and gas exploration and development technology
Statement with attachments...
"Reserves of crude oil, natural gas liquids, and natural gas in the

United States and Canada and United States Productive Capacity
as of December 31, 1970,"joint report of the American Gas Associa-
tion, Inc.; American Petroleum Institute; and Canadian Petroleum

Association.
Price, Robert V., assistant to the president, National Coal Association:

Statement
Supplemental information regarding capital investment
Supplemental information regarding Alaska coal reserves
Producer members of the National Coal Association (list)
Associate members of the National Coal Association (list)
Testimony presented November 29, 1971 to the Subcommittee on

Mines, House Committee on Interior and Insular Affairs ....
Proctor, Harvey A, president, Southern California Gas Co., statement on

behalf of the Pacific lighting companies... Public Service Electric and Gas of New Jersey:

Emergency load shedding program.
New Jersey State Department of Public Utilities, Board of Public

Utilities Commission, executive order No. 71-3, December 23, 1971,
in the matter of establishing an orderly and reasonable policy for
furnishing gas service in the event of a gas shortage in the State of

New Jersey -
Rensch, Joseph R., president, Pacific Lighting Corp., paper entitled:

“The Emerging Partnership of Coal and the Gas Industry.
Report of the Committee on Natural Gas Reserves of the American Gas

Association
Robinson, Charles A., Jr., staff counsel to the general manager, National

Rural Electric Cooperative Association, statement.
Southern California Edison Co., statement.
Southern California Edison Co., Rosemead, Calif., D. J. Fogarty, president,

letter dated August 2, 1972 re voltage reductions..
Sporn, Philip, retired president, American Electric Power Co., “Recent

Developments in Energy and Energy Conversion", a paper presented

at Citibank Forum, New York, N.Y., May 19, 1972.
Swidler, Joseph C., chairman, New York State Public Service Commission:

Adequacy of energy supply in the New York City area" a talk
presented May 18, 1972 to Energy Forum, sponsored by Mayor's
Council on the Environment and Business Council on the

Environment.
Tabulation identifying each major interstate pipeline serving New

York, its service area, major New York customers, existing re-
quirements of its New York customers, and the present curtailment

being imposed..
Interstate pipeline suppliers
Excerpt from the New York State Public Service Commission's

order, October 26, 1971..

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Swidler, Joseph C., chairman, New York State Public Service Com-
mission.—Continued
"Some steps in Meeting the Energy Crisis" a talk presented at the

second annual meeting, division of production, American Petroleum
Institute, Houston, Tex., March 8, 1972.-

"Petroleum-Energy Workhorse of the 1970's”.
Terry, Hon. John H., a Representative in Congress from the State of

New York, statement...
Wagner, Aubrey J., Chairman of the Board, Tennessee Valley Authority:

Statement.
MAP_Tennessee Valley region.
Address before the Tennessee Valley Public Power Association annual

meeting, March 15, 1972..
Wichita Eagle, Wichita, Kans., article of June 23, 1972, entitled: "Industry

Bothered by Gas Pains”.
Wright, F. H., senior vice president, The East Ohio Gas Co.:

Statement..
Supplemental statement.

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Proceedings of

August 1, 1972.
August 2, 1972.
August 3, 1972
August 8, 1972.
August 9, 1972.
August 10, 1972
August 11, 1972.

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RELATIONSHIP OF ENERGY AND FUEL SHORTAGES TO

THE NATION'S INTERNAL DEVELOPMENT

TUESDAY, AUGUST 1, 1972

HOUSE OF REPRESENTATIVES,
SUBCOMMITTEE ON FLOOD CONTROL AND INTERNAL
DEVELOPMENT OF THE COMMITTEE ON PUBLIC WORKS,

Washington, D.C. The subcommittee met at 10:07 a.m., in room 2167, Rayburn House Office Building, Hon. James J. Howard presiding.

Mr. HOWARD. The Subcommittee on Flood Control and Internal Development will please come to order.

The purpose of these hearings is to inquire most thoroughly into the adequacy of the energy resources on which the United States is uniquely dependent for its continuing internal development.

First, I want to publicly thank the chairman of the full Committee on Public Works, Representative John A. Blatnik, and Representative Robert E. Jones, the distinguished chairman of this subcommittee. It was with them I first broached this entire matter. Both Mr. Blatnik and Mr. Jones have had a profound interest in this subject because it deeply concerns the internal development of this country.

The chairman of the Federal Power Commission, who is with us this morning, has been quoted as saying that he believes we face a critical shortage of natural gas, which currently supplies about one-third of our energy requirements. We hope that he and other witnesses who will testify in the course of these hearings will be able to explain the reasons for this developing shortage and give us their best judgment as to the consequences we may have to face.

If there is indeed an energy crisis, it would be most serious for this country, because without a continuing and dependable source of electric power our industries would be crippled and the American standard of living would quickly spiral downward.

The energy business in this country amounts to about $100 billion a year, which is 10 percent of our gross national product, and it obviously has a major impact on our internal development.

We need all of our fuel resources if we are to continue to develop, and yet we are spending about $5 billion to import oil each year, a figure that we are told will rise to $15 billion by 1980. We want to know if we can safely continue this giveaway of a vital natural resource.

If, as we have been told, electric power on the east coast is largely dependent on fuel imports, does it follow that the continued functioning of the Eastern States is dependent not on what happens in this country, but on the decisions of other countries?

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V.

The hearings we begin today were prompted by requests from many, many Members of Congress. I'hey believe, and I agree, that the American people are entitled to a total assessment of our energy resources and the ability of those resources to meet our future requirements for the consuming public, for industry, and for the national security.

At subsequent hearings we will receive testimony from individuals and public interest groups concerned with the environmental aspects of the energy problem. Certainly no hearings would be complete without such groups which want to meet the energy problem, while at the same time protecting our environment.

We are privileged to have with us this morning a number of highlevel Government officials who are in a position to know the facts about this situation and to inform us as to what is being done about it.

The Chair will recognize the ranking minority member of the subcommittee, Mr. Clausen.

Mr. Clausen. Thank you Mr. Chairman. I wish to associate myself with the fine opening statement made by our distinguished chairman of this joint subcommittee hearing on Flood Control and Internal Development. This committee is intimately involved in helping to supply energy for this country through the TVA, the Corps of Engineers hydroelectric power projects. The entire energy issue covers a much wider spectrum; energy sources such as oil, coal, gas, nuclear material and water, energy production and distribution and the ultimate consumption by public and private users.

Last April, the Committee on Interior and Insular Affairs, of which I am a member, held hearings on the subject of energy resources. These hearings were based on four premises :

(1) Our country has grown and prospered in great measure because of low-cost energy resources;

(2) Our consumption of energy resources is increasing more rapidly than our development of new resources;

(3) Even if new resources are developed, we must recognize their finite nature and guard closely this trust for future generations;

(4) Wanton degradation of the environment cannot be permitted. I would add to this list an important element in the final consumption of energy; that is, population distribution must be given a better balance than it has today. The growth and development of rural areas through public policy is a must if we are to avoid future shortages of energy due to strains on the capacity to generate and supply energy.

Shortages this year and next are inevitable. In the last 2 weeks New York experienced blackouts lasting from 15 minutes to 15 hours. If nuclear powerplants now ready to operate remain closed by legal actions, the problems could multiply. Because nuclear plants take 7 to 10 years to plan and build, because technical and environmental questions have not been entirely satisfied, and because capital costs are high, nuclear energy is not likely to reach maturity as a major source of energy for many years.

For the short-term period, we must continue to rely on our traditional energy sources. Here we are confronted with a paradox: despite difficulties meeting demand for gas, oil and coal, geologists tell

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