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RELATIONSHIP OF ENERGY AND FUEL SHORTAGES TO

THE NATION'S INTERNAL DEVELOPMENT

(92-46)

HEARINGS

BEFORE THE

SUBCOMMITTEE ON
FLOOD CONTROL AND INTERNAL DEVELOPMENT,
Hnited States. CongrassaOF THE

House,
COMMITTEE ON PUBLIC WORKS. Á
HOUSE OF REPRESENTATIVES

NINETY-SECOND CONGRESS

SECOND SESSION

AUGUST 1, 2, 3, 8, 9, 10, 11, 1972

Printed for the use of the Committee on Public Works

U.S. GOVERNMENT PRINTING OFFICE

83-450

WASHINGTON : 1972

COMMITTEE ON PUBLIC WORKS

KF27
P8463

1970a

JOHN A. BLATNIK, Minnesota, Chairman ROBERT E. JONES, Alabama

WILLIAM H. HARSHA, Ohio JOHN C. KLUCZYNSKI, Illinois

JAMES R. GROVER, JR., New York JIM WRIGHT, Texas

JAMES C. CLEVELAND, New Hampshire KENNETH J. GRAY, Illinois

DON H. CLAUSEN, California FRANK M. CLARK, Pennsylvania

FRED M. SCHWENGEL, Iowa ED EDMONDSON, Oklahoma

GENE SNYDER, Kentucky HAROLD T. JOHNSON, California

ROGER H, ZION, Indiana W. J. BRYAN DORN, South Carolina

JACK H. MCDONALD, Michigan DAVID N. HENDERSON, North Carolina

JOHN PAUL HAMMERSCHMIDT, RAY ROBERTS, Texas

Arkansas JAMES KEE, West Virginia

CLARENCE E, MILLER, Ohio JAMES J. HOWARD, New Jersey

WILMER D. MIZELL, North Carolina GLENN M. ANDERSON, California

JOHN H. TERRY, New York PATRICK T. CAFFERY, Louisiana

CHARLES THONE, Nebraska
ROBERT A. ROE, New Jersey

LAMAR BAKER, Tennessee
GEORGE W. COLLINS, Illinois
TENO RONCALIO, Wyoming
NICK BEGICH, Alaska
MIKE MCCORMACK, Washington
CHARLES B. RANGEL, New York
JAMES V. STANTON, Ohio
BELLA ABZUG, New York

PROFESSIONAL STAFF
RICHARD J. SULLIVAN, Chief Counsel
LLOYD A. RIVARD, Engineer-Consultant

LESTER EDELMAN, Counsel
CARL H. SCHWARTZ, Jr., Consultant-Projects and Programs

JAMES L. OBERSTAR, Administrator
HENRY G. EDLER, Project Coordinator

CLIFTON W. ENFIELD, Minority Counsel
RICHARD C. PEET, A.88istant Minority Counsel
GORDON E. Wood, Alinority Professional Staff Assistant

STAFF ASSISTANTS
DOROTHY A. BEAM, Executive Staff Assistant
Erla S. YOUMANS, Minority Executive Staff Assistant
MERIAM R. BUCKLEY

PEGGY MCCARTHY
STERLYN B. CARROLL

TOBY J. STEIN
WILLIAM M. CORCORAN

CYNTHIA J. VAN SANT
RUTH S. COSTELLO
CATHY Evans

RICHARD C. BARNETT
PAUL S. FRANCIS

LUDIE DECOURCY
BETH KILEY

BRENDA G. JONES

JOSEPH A. ITALIANO, Editorial Assistant
ROBERT F. LOFTUS, Technical Staff Assistant

SUBCOMMITTEE ON FLOOD CONTROL AND INTERNAL DEVELOPMENT

ROBERT E. JONES, Alabama, Chairman JIM WRIGHT, Texas

DON H. CLAUSEN, California KENNETH J. GRAY, Illinois

WILLIAM H. HARSHA, Ohio FRANK M. CLARK, Pennsylvania

JAMES R. GROVER, JR., New York HAROLD T. JOHNSON, California

* FRED M. SCHWENGEL, Iowa ED EDMONDSON, Oklahoma

GENE SNYDER, Kentucky W. J. BRYAN DORN, South Carolina

ROGER H. ZION, Indiana DAVID N. HENDERSON, North Carolina JACK H. MCDONALD, Michigan RAY ROBERTS, Texas

JOHN PAUL HAMMERSCHMIDT, JAMES KEE, West Virginia

Arkansas GLENN M, ANDERSON, California

CLARENCE E. MILLER, Ohio ROBERT A. ROE, New Jersey

WILMER D. MIZELL, North Carolina PATRICK T. CAFFERY, Louisiana

LAMAR BAKER, Tennessee
NICK BEGICH, Alaska
MIKE MCCORMACK, Washington
JAMES J. HOWARD, New Jersey

MARIE M. LYNCH, Clerk

SALVATORE J. D'AMICO, Special Counsel, Fuel and Energy Shortages

(II)

nowide 72

CONTENTS

TESTIMONY

Pago

773

815

Autrey, F. E. (Gene) vice president, Florida Power & Light Co.---

Baker, Robert A., executive vice president, Public Service Electric &

Gas Co. of New Jersey; accompanied by Mr. Randall, Mr. McDonald,

and Mr. Betz...

Bennett, Elmer F., Assistant Director, Office of Emergency Preparedness;

accompanied by Robert Platt, Deputy Chief, Oil and Energy Working

Group.

Crawford, W. Donham, president, Edison Electric Institute, accompanied

by John J. Kearney, vice president, Edison Electric Institute

Dole, Hon. Hollis M., Assistant Secretary of the Interior for Mineral

Resources; accompanied by Stephen Wakefield, Deputy Assistant Sec-

retary for Energy Programs, and Ralph Williams, special assistant..

Doub, Hon. William O., Commissioner, Atomic Energy Commission;
accompanied by John O'Leary, Merrill J. Whitman, and Angelo

Giambusso.

Laird, Dr. Wilson M., director, Committee on Exploration, American

Petroleum Institute.

Lawrence, George H., vice president, American Gas Association..

Lehrman, Robert O., vice president, public affairs, Consolidated Edison

Co. of New York, Inc.-

Lydon, James, vice president, Boston Edison Co..

McNeer, Charles S., senior vice president, Wisconsin Electric Power Co.--

Meyer, Lawrence G., Director of the Office of Policy Panning and Evalua-

tion of the Federal Trade Commission..

Michelson, Ernest L., assistant vice president, Commonwealth Edison Co.;

accompanied by Byron Lee, Jr., assistant to the president, and John

Hughes, special assistant to the office of the president.--

Nassikas Hon. John N., Chairman, Federal Power Commission; accom-

panied by Thomas Joyce, Chief of the Bureau of Natural Gas, Federal

Power Commission; Robert B. Boyd, Deputy Chief, Bureau of Power,

Federal Power Commission; Emmett J. Gavin, assistant to the Chair-

man; Drexel D. Journey, Deputy General Counsel, Federal Power Com-

mission; Daniel Goldstein, assistant general counsel, Federal Power

Commission; and Franklin Gould, attorney, Federal Power Com-

mission.-

Orlofsky, S., senior vice president, Columbia Gas System Service Corp.;

accompanied by R. A. Rosan, vice president and general manager,

Columbia Gas System Corp---

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

accompanied by Joseph W. Mullan, vice president, Government relations,

National Coal Association...
Proctor, Harvey A., president, Southern California Gas Co., president,

Pacific Lighting Co..

Robinson, Charles A., staff counsel, National Rural Electric Cooperative

Association; accompanied by Donald Smith, staff economist; and Bradley

Koch, staff electrical engineer -

Swidler, Hon. Joseph C., chairman, New York State Public Service Com-

mission; accompanied by George Bonrer, director, gas division ----

Wagner, Hon. Aubrey J., Chairman of the Board, Tennessee Valley

Authority; accompinied by James Watson, manager of power; George

Kimmons, manager of engineering design and construction; and John

Dugger, assistant general counsel

Wallin, David, vice president in charge of marketing, Northern Illinois

Gas Co.; accompanied by Stanley Stroud, attorney, firm of Mayer,
Brown, & Platt.

Wheatley, Charles F., Jr., general manager-general counsel of the American

Public Gas Association..

Wright, Francis H., senior vice president, The East Ohio Gas Co., Cleve-

land, Ohio; accompanied by Thomas G. Roderick, special counsel,
- Consolidated Gas Co., Washington, D.C.

887

735

540

491

MATERIAL RECEIVED FOR THE RECORD

Page 1106

1100 352

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3

27

760

(*)

339

1082

1094

1105

(*)

American Public Power Association, statement.
Anderson, Hon. Glenn M., a Representative in Congress from the State of

California, letter introducing statement of Frank Steiger, San Pedro,

Calif..
Annual Report of the Council on Economic Advisers, 1972. Extract--
"A Short Introduction to Current Energy Issues” by, Chauncey Starr,

dean, School of Engineering and Applied Science, University of Cali

fornia, Los Angeles.-
Asphalt shortages affecting highway construction, extracts from staff

memorandum; and Federal Highway Administration Notice H0-32, July

27, 1971..
Autrey, F. E. (Gene), vice president, Florida Power & Light Co.:

Statement.
Chronology (72 pp.) of events, Turkey Point (nuclear plant), Miami,

Fla. (June 1963 to August 1972).
Bennett, Elmer F., Assistant Director, Ofice of Emergency Preparedness:

Summary and findings extracted from staff study, Office of Em

gency Preparedness report, October 1972, entitled, “The Po

tential for Energy Conservation"
Boyd, Howard, chairman of the board, El Paso Natural Gas Co., statement.
California Public Utilities Commission, Utilities Division:

Electric branch report on 10-year, 20-year forecasts of electric utilities'

loads and resources, July 25, 1972
Gas Branch summary report--10-year forecast on gas utilities' re-

quirements and supplies, 1972–81, August 23, 1972.-
Chase Manhattan Bank, N.A.:

Press release: Chase Manhattan Bank says energy crisis could be

eased by encouraging infusion of private capital to develop new

sources of energy

"Outlook for Energy in the United States to 1985," June 1972 report-Clausen, Hon. Don H., a Representative in Congress from the State of

California, letter presenting supplemental questions to Hon. John N.

Nassikas, Chairman, Federal Power Commission.
Crawford, W. Donham, president, Edison Electric Institute:

51st semiannual electric power survey, April 1972.

Statement.-
Dole, Hon. Hollis M, Assistant Secretary of the Interior for Mineral
Resources:

Comparison of natural gas demand projections of gas supplies for U.S.

Effect of antipollution regulations on automobile engine efficiency -
Dorn, Hon. Wm. Jennings Bryan, a Representative in Congress from the

State of South Carolina, statement.-
Doub, William O., Commissioner, Atomic Energy Commission:

A EC-EPA relationships for processing environmental impact state-
Contacts with CEQ regarding AEC procedures under NEPA.
Requirements for intervention in AEC facility construction permit

and operating license proceedings-
Economic Report to the Federal Trade Commission by the Bureau of
Economics, February 1972..

Summary and conclusions.
Emergency Petroleum Supply Committee, Office of Oil and Gas, De-

partment of the Interior, John Ricca, Chairman, letter of reply to

Representative James Howard re emergency planning -
“Energy Crisis”: The industry's fright campaign, article from The Nation,

June 26, 1972.---
Examples of fuel shortage impact on consumer rates
General Public Utilities Corp. and subsidiary electric power companies

letter to Representative James J. Howard.

172

(*) 624

consumers.

14 25

987

ments

826 827

835

(*) 991

978

1113 1072

425 Page 974 1126

*Retained in subcommittee file.

(*) 984

371

(*)

995

592 (*) 611

620 784

987

660

161

*

1015

Laird, Dr. Wilson M., director, American Petroleum Institute:

Letter supplementing testimony --
List of corporate members, American Petroleum Institute
Petroleum resources under the ocean floor, prepared by the National

Petroleum Council, March 1969, and supplemental report, March

1971.

Replies to questions posed by Representative Clausen
Lawrence, George H., vice president, American Gas Association:

Statement.
Report of the Committee on Natural Gas Reserves of the American

Gas Association...
Survey of action by State and Federal regulatory agencies and intra-

state natural gas distributors to meet natural gas shortages --
Lehrman, Robert 0., vice president, public affairs, Consolidated Edison
Co. of New York, Inc.:

Statement.
1972 Power conservation program “Save a Watt”-material.
Con Edison's 20-year advance program 1971-90-
“Where Will We Get New Supply?" a talk by Frederick W. Sullivan,

vice president, gas operations, Consolidated Edison Co. of New

York, Inc.
Lydon, James M., vice president, Boston Edison Co., statement.
McCormack, Hon. Mike, a Representative in Congress from the State of

Washington; statement..
McNeer, Charles S., senior vice president, Wisconsin Electric Power Co.,

and vice president, Wisconsin Michigan Power Co.; statement.
Major U.S. cities that have experienced some degree of curtailment or

restriction of natural gas supplies
Meyer, Lawrence G., Director of the Office of Policy Planning and Evalu-
ation of the Federal Trade Commission:
Memorandum, April 22, 1971, subject: Commission study alterna-

tives in the energy sector
Statement presented to the Subcommittee on Special Small Business

Problems of the Select Committee on Small Business, House of

Representatives, October 28, 1971..
Michelson, E. L., assistant vice president, Commonwealth Edison Co.:

An appraisal of transmission study 190
Letter from Floyd L. Goss, chairman, Western Systems Coordinating

Council to Hon. James R. Smith, Assistant Secretary of the Interior

for Water and Power.
Letter of reply to Representative Nick Begich re cost of desulfuriza-

tion of oil..
Commonwealth Edison Co. electric system (map).
Partial testimony of Arnold C. Harberger, professor of economics,

University of Chicago at Illinois Pollution Control Bo hearing

on R 71-14, February 10, 1972..
Mohawk Valley Economic Development District, Mohawk, N.Y., John M,

Ladd, executive director. Letter replying to inquiry regarding natural

gas shortage
Nassikas, Hon. John N., Chairman, Federal Power Commission:

Statement.-
Supplemental information:
Federal agencies with jurisdiction over Federal lands in the vi-

cinity of Crane, Ind.
Correlated activities of the Federal Power Commission and De-

partment of the Navy in studying gas reserves in PET 4,

Alaska.
Reply to question relative to electric transmission technology.
Description of the procedures which the Federal Power Commis-

sion is following in its current independent review of natural

gas reserves throughout the United States
Statement presented to the Subcommittee on Special Small Busi-

ness Problems, Select Committee on Small Business, House of

Representatives, March 16, 1972
Statement presented to the Committee on Commerce, U.S. Sen-

ate, March 22, 1972..

(*)

(*)

855

870 873

874

562

32

130

131 132

138

139

139

*Retained in subcommittee file.

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