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1974/12/30 S425 Surface Mining Control and Reclamation Act of 1974 (vetoed) (1)
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1974/12/30 S425 Surface Mining Control and Reclamation Act of 1974 (vetoed) (1)
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The original documents are located in Box 17, folder "12/30/74 S425 Surface Mining Control and Reclamation Act of 1974 (vetoed) (1)" of the White House Records Office: Legislation Case Files at the Gerald R. Ford Presidential Library. Copyright Notice The copyright law of the United States (Title 17, United States Code) governs the making of photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections. Works prepared by U.S. Government employees as part of their official duties are in the public domain. The copyrights to materials written by other individuals or organizations are presumed to remain with them. If you think any of the information displayed in the PDF is subject to a valid copyright claim, please contact the Gerald R. Ford Presidential Library. Exact duplicates within this folder were not digitized. Digitized from Box 17 of the White House Records Office Legislation Case Files at the Gerald R. Ford Presidential Library THE WHITE HOUSE WASHINGTON MEMOSSUED ACTION Last day - Monday, Dec. 30 December 26, 1974 MEMORANDUM FOR: THE PRESIDENT FROM: KEN COLE SUBJECT: Enrolled Bill: The Surface Mining Control and Reclamation Act of 1974 -- S. 425 BACKGROUND Attached for your consideration is Senate bill, S. 425, sponsored by Senator Jackson of Washington. Under this legislation the Secretary of the Interior, in cooperation with the States, regulates surface coal mining operations and acquires and reclaims abandoned mines. The bill would establish Federal standards for the environmental protection and reclamation of surface coal mining operations including the reclamation of orphaned lands. The bill would encourage the States to implement and enforce a program for the regulation of surface coal mining with Federal administration of the program substituted if the States do not act. Roy Ash provides detailed comments at Tab A. ARGUMENTS FOR SIGNING The environmental damage from strip mining is excessive and should be subject to effective control. A strip mining bill would provide industry with environmental groundrules and standards governing future production, the lack of which is said to be presently inhibiting expansion of coal mining. A bill next year may contain more problems than the current one. This legislation would provide a degree of uniformity in the regulation of surface mining operations throughout the applicable regions. Present State laws and performance standards vary significantly which in turn economically discriminates against operations in some States. GERAL FIBRARY -2- There is in excess of one-half million acres in the United States of "orphan lands" or lands upon which the surface has been spoiled by previous surface mining operations and then abandoned. This legislation would provide for reclamation of this land. Such reclamation would improve the environmental status as well as return a part of the land to agricultural or other productive uses. Russell Train states that there is no reason to believe that the legislation will result in unacceptable increases in cost to the industry or losses of production. He believes that any legislation of the complex and controversial nature of this is necessarily going to involve compromise and some ambiguity of language most of which should be resolvable by carefully drawn regulations. Train personally feels strongly in this matter. His views are attached at Tab B. ARGUMENTS FOR VETO Coal is the only basic and abundant energy source over which the United States has total control. This legislation would unduly impair our ability to use it properly. The United States must import four barrels of expensive foreign oil for every ton of coal that we cannot produce domestically, a situation which cannot long be tolerated without continued, serious economic consequences. This bill would exacerbate this problem. In addition this bill provides for excessive Federal expenditures and would clearly have an inflationary impact on the economy. The legislation would have an adverse impact on our domestic coal production which is unacceptable. By 1977, the first year after the Act would take full effect, the Federal Energy Administration has estimated that coal production losses would range from a minimum of 48 million tons to a maximum of 141 million tons. The Administration is currently undertaking a major energy policy review. This bill would limit your freedom to adopt the best energy options for the Nation. MALD LIBRARY =3= You met on December 13 with your energy, economic and environmental advisors on this legislation. After reviewing the bill you found it unacceptable. The production losses would range between 5 and 15 percent exclusive of several very ambiguous administrative provisions and a very broad citizen suit provision. Ron Nessen made an announce- ment to this effect. Frank Zarb, John Whitaker and John Quarles gave an extensive press briefing on your decision. STAFF AND AGENCY POSITIONS Interior Approval EPA Approval CEQ Approval Agriculture Approval Friedersdorf Pocket veto Ash (Tab A provides detailed comments) Pocket veto Cole Pocket veto Areeda Pocket veto Seidman Pocket veto Greenspan Pocket veto Treasury Pocket veto Commerce Pocket veto FEA Pocket veto RECOMMENDATION That you pocket veto S. 425 and sign the Paul Theis approved memorandum of disapproval at Tab D. DECISION - - S. 425 Sign (Tab C) Veto ART (Sign memorandum of dissapproval at Tab D) FORD OFFICE WIR PRESIDENT o STATES UNITED EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 DEC 2 3 1974 MEMORANDUM FOR THE PRESIDENT Subject: Enrolled Bill S. 425 - The Surface Mining Control and Reclamation Act of 1974 Sponsor - Sen. Jackson (D) Washington Last Day for Action December 30, 1974 - Monday Purpose Provides for the cooperation between the Secretary of the Interior and the States with respect to the regulation of surface coal mining operations, and the acquisition and reclamation of abandoned mines. Agency Recommendations Office of Management and Budget Disapproval (Veto message attached) Department of the Treasury Disapproval (Informally) Department of Commerce Disapproval (Informally) Federal Energy Administration Disapproval (Thfc Department of Labor Cites concerns(Informally) Tennessee Valley Authority No objection Inf ) Department of the Interior Approval Environmental Protection Agency Approval(Informally) Council on Environmental Quality Approval (Informally) Department of Agriculture Approval (Informally) Department of Justice Defers to other agencies Informally) Discussion The Executive Branch submitted to both the 92nd and 93rd Congresses legislation that would have established reasonable and effective reclamation and environmental protection FORD & LIBRARY 2 requirements for mining activities. Throughout this period the Administration made every effort in working with the Congress to produce a bill that strikes the delicate balance between our desire for reclamation and environmental protection and our need to increase coal production in the United States. Unfortunately, the efforts to produce a balanced bill have failed. S. 425 would establish Federal standards for the environ- mental protection and reclamation of surface coal mining operations including the reclamation of orphaned lands. Under a complex procedural framework, the bill would encourage the States to implement and enforce a program for the regulation of surface coal mining with Federal administration of the program substituted if the States do not act. Principal aspects of the bill considered objectionable by one or more of the agencies are: -- A 35¢/25¢ per ton excise tax on surface/under- ground coal with receipts going to a Federal fund for reclaiming orphaned strip mined land, public facilities, disaster relief, etc. ($206 million would be produced in 1975). -- $95 - 110 million for grants, research, and Federal regulation (includes funding for a Mineral Research Institutes program -- a similar bill was vetoed by President Nixon in 1972). -- Excessive direct Federal involvement in reclamation and enforcement programs. -- Precedent setting unemployment assistance. -- Coal production losses in 1975 of 2 to 8 percent (not counting unknown impact of provisions listed below) -- FEA estimates that by 1977, the first year after the Act would take full effect, losses could exceed 18 percent or some 141 million tons (Interior's estimates for this period are somewhat lower). FORD 3 -- Surface owner protection provisions that will limit access to Federal coal lands, produce windfall profits to surface owners and reduce Federal revenue from leases. -- Complex procedural requirements and standards in the lengthy bill which could involve extensive litigation and potential production impact, particularly: - A very broad citizens suit provision. - Near prohibition on mining that disturbs alluvial valley floors or water supplies in the west. - Limited administrative discretion. - Procedural requirements that could delay permits for new operations and impose a temporary moratorium on mining permits for Federal lands (including mineral rights). - Requirement to prevent any increase in siltation above premining conditions. - Designation of areas not suitable for surface mining. - Construction of certain impoundments prohibited. In voting on the rule to consider the conference report on S. 425, the House vote was 198 to 129. The Senate passed the conference report by a voice vote. Agency Views (informal) Veto -- OMB, Treasury, FEA and Commerce (the arguments in favor of veto as shown below summarize the key points raised by the agencies) Approval -- Interior, EPA, CEQ, and Agriculture (the arguments in favor of approval as shown below summarize the key points raised by the agencies). FORD 4 In addition, Labor objects to the bill's unemployment provision, TVA does not object to approval, and Justice defers to the agencies more directly affected. Arguments in favor of veto 1. The enrolled bill would have an unacceptable adverse impact on our domestic coal production. 2. Coal is the only basic energy source over which the United States has total control -- we should not unduly impair our ability to use it properly. 3. The Administration is currently undertaking a major energy policy review -- this bill would limit the President's freedom to adopt the best energy options for the Nation. 4. The United States must import four barrels of expensive foreign oil for every ton of coal that is lost in domestic production, yet the importation of such oil cannot long be tolerated even at present levels without continued, serious economic consequences -- S. 425 would exacerbate this problem (i.e., if 50 million tons of utility coal had to be replaced with 200 million barrels of foreign oil, the net oil replacement cost would run $1.65 billion with utility fuel costs increasing by around 18 percent). 5. Unemployment would increase in both the coal fields and in those industries that could not obtain replacement fuel sources. Also, the undesirable unemployment assistance provision could serve as a precedent for other industries which are suffering high unemployment rates. 6. The bill provides for excessive Federal involvement and expenditures, and would have an inflationary impact on the economy. 7. S. 425 contains numerous other technical and institutional deficiencies. 5 Arguments in favor of approval 1. The environmental protection achieved outweighs the production loss problem (this view is not shared by those agencies recommending veto). 2. A bill next year may contain more problems than this one. 3. A strip mining bill would provide industry with environmental groundrules and standards governing future production, the lack of which is said to be presently inhibiting expansion of coal mining. On balance, we believe the arguments cited above strongly support a veto. Accordingly, we recommend that you dis- approve the bill. We have prepared the attached draft of a Memorandum of Disapproval for your consideration. Acting Director Enclosures FORD UNITED STATES. AGENCY United States Environmental Protection Agency PROTECTION Mashington, D.C. 20460 December 17, 1974 The Administrator MEMORANDUM FOR THE PRESIDENT SUBJECT: Surface Mining Legislation I regret that I was on my way back from Moscow at the time of your decision-meeting on the strip mining legislation and could not participate. John Quarles, EPA Deputy Administrator, has reported to me on the meeting, and I appreciate the full opportunity that he had to represent EPA views. However, because I feel so strongly personally in this matter, I wish respectfully to set out my views before you take final action. 1. The environmental damage from strip mining is excessive and should be subject to effective control. Legislation on the subject is long overdue. 2. There is no reason to believe that the legislation will result in unacceptable increases in cost to the industry or losses of produc- tion. On the contrary, any such impacts would be relatively modest. 3. It is claimed that there are a number of uncertainties and ambiguities in the legislation which will invite litigation and, thus, production losses and delays. First of all, any legislation of the com- plex and controversial nature of this is necessarily going to involve compromise and some ambiguity of language, most of which should be resolvable by carefully drawn regulations. Secondly, the greatest single impediment to increased coal production and the needed invest- ment in new productive capacity is the continuing uncertainty as to what the future rules are going to be. The failure to enact legislation now can only continue and compound this uncertainty. It is highly problematical whether improved certainty or better balance will be achieved by the next Congress. The Interior Departme nt believes that a sensible program can be implemented. GERALD FORD CIBRAST - 2 - Recommendation: Recognizing that there may well be infirmities in the legislation which need correction but that continuing failure to provide a statutory framework which will permit the Department of the Interior to move ahead with regulation now will itself have an adverse effect on production, I would urge approval of the legislation subject to the express understanding that you will be submitting perfecting amendments at the beginning of the next Congress and subject further to the express agreement by the Chairmen of the respective committees that they will give high priority to prompt consideration of those amendments early in the session. If, however, it should be your final decision not to approve the legislation, I would urge that the development and submission of effective surface mining legislation be given the highest priority in the Administration's legislative program for 1975. Russell E. Train FORD is LIBRARY 078830 STATES DEPARTMENT OF PRIVENTING DEPARTMENT OF AGRICULTURE OFFICE OF THE SECRETARY WASHINGTON, D. C. 20250 December 24, 1974 TORD Honorable Roy L. Ash Director Office of Management and Budget Dear Mr. Ash: Your office requested the following report on the enrolled enactment of S. 425, "To provide for the regulation of surface coal mining operations in the United States, to authorize the Secretary of the Interior to make grants to States to encourage State regulation of surface mining and for other purposes." This Department recommends that the President approve the enactment. The enactment authorizes (1) the establishment of the Office of Surface Mining Reclamation and Enforcement, (2) grants-in-aid to State mining and mineral resources institutes, (3) abandoned mine reclamation, (4) control of the environmental impacts of surface coal mining, and (5) a program for non-coal mine environmental impact control and various necessary administrative and miscellaneous provisions. In recommending approval, we are cognizant of Presidential concerns regard- ing certain provisions of this legislation. While some coal sources may be made unavailable, thereby affecting unemployment, opportunities for employment will be increased by an active reclamation program. Such a program requires labor, materials and equipment, all of which stimulate employment. Budget outlays would increase, principally because of grants- in-aid to resources institutes, and administrative costs. However, most of the money used in restoration of abandoned mines will come from the private sector through the Abandoned Coal Mine Reclamation Fund. Even though coal prices may increase, returning land to productive capacity would be a National gain. This Department would have preferred that the prohibition of surface coal mining operations on Federal lands within the boundaries of National Forests not be included in the legislation and that surface coal mining on these lands continue to be at our discretion. We are also concerned with the Federal lessee protection provision of the enactment. This provision would require the written consent or execution of a bond in favor of grazing or other surface lessees prior to the issuance of a Federal permit for surface coal mining operations. This provision appears to grant to the surface land lessee a degree of control or authority over the surface lands that exceed the conditions of the lease. We believe that the responsibility to ensure protection or adequate restoration of surface resources and associ- ated improvements should be a condition of the Federal coal permit or lease and be established at the Federal discretion. RECEIVED '74 DEC 24 AM 10:46 OFFICE OF MANAGEMENT AND BUDGET Honorable Roy L. Ash 2 This Department has cooperated with the Department of the Interior through- out the evolution of this legislation. We recognize that it is the result of compromise. At the Department of the Interior's request, we have pro- vided technical assistance in drafting Federal regulations which would be needed to implement the act. Even though we have concerns regarding certain provisions of the enactment, this recommended approval is based on the need for national guidance in surface mining and to ensure the restoration of our mined lands. This Department provides the leadership in surface mine reclamation and has demonstrated that certain lands can be surface mined and returned to sus- tained productive use in agriculture, forestry, recreation, wildlife, and other purposes. Lack of national leadership has led to the eroding surface mined lands that exist today. This Department believes it to be in the national interest to provide that guidance now. Under Title IV of the enactment, the Secretary of the Interior shall trans- fer funds to this Department for technical assistance to landowners entering into long-term agreements for reclamation purposes. Based on an estimated annual production of 600 million tons of coal, approximately $35 million would be available annually from the Abandoned Mine Reclamation Fund to the Department of Agriculture for use in the rural lands reclamation program. Current inventories indicate that these funds are needed in the restoration of abandoned surface mined lands. Sincerely, FORD Campbell Acting Secretary - ASSISTANT ATTORNEY GENERAL LEGISLATIVE AFFAIRS Department of Justice Washington, D.C. 20530 DEC 24 1974 Honorable Roy L. Ash Director Office of Management and Budget Washington, D.C. 20503 Dear Mr. Ash: In compliance with your request, I have examined a facsimile of the enrolled bill (S. 425), "Surface Mining Control and Reclamation Act of 1974." The Department of Justice defers to those agencies more directly concerned with the subject matter of the bill as to whether it should receive Executive approval. Sincerely, MRakeshaw W. Vincent Rakestraw Assistant Attorney General FORD & LIBRA RECEIVED '74 DEC 24 PM 3 : 02 OFFICE OF MANAGEMENT AND BUDGET EXECUTIVE OFFICE OF THE PRESIDENT COUNCIL ON ENVIRONMENTAL QUALITY 722 JACKSON PLACE, N. W. WASHINGTON, D. C. 20006 December 24, 1974 MEMORANDUM FOR W.H. ROMMEL OFFICE OF MANAGEMENT AND BUDGET ATTN: Ms. Mohr. SUBJECT: S.425 -- Surface Mining Control and Reclamation Act of 1974 The Council supports this legislation and recommends that the President sign the enrolled bill. This bill creates a workable system which provides adequate safeguards for the land without unduly restricting mining activities. The bill is the product of long and bitterly fought Congressional controversy, and we recognize that it contains some measures for which there is questionable need. But there is no reason to expect that the next Congress would produce a better bill, that would justify the delays in both mining and regulatory activities that would necessarily follow a veto. By approving the bill now, the uncertainties which have discouraged new surface mining operations would be resolved and the mining industry, the public and the Congress could all proceed to other, more urgent matters. Steven Staff Director D. Jellinek FORD & LIBO RECEIVED '74 DEC 24- PM 1:47 / : 47 OFFICE OF MANAGEMENT AND BUDGET OF COMMERCE GENERAL COUNSEL OF THE DEPARTMENT OF COMMERCE UNITED STATES OF AMERICA Washington, D.C. 20230 DEC 3 n 1974 Honorable Roy L. Ash Director, Office of Management and Budget Washington, D. C. 20503 Attention: Assistant Director for Legislative Reference Dear Mr. Ash: This is to confirm the verbal views of the Department of Commerce communicated to the Office of Management and Budget on December 17, 1974, with respect to S. 425, an enrolled enactment entitled "Surface Mining Control and Reclamation Act of 1974". The Department of Commerce recommends disapproval by the President of the enrolled enactment. Throughout the course of Executive Branch and Congressional considera- tion of this legislation, the Department has strongly and consistently maintained that any strip mining bill must permit the continued and accelerated development of our domestic coal resources, taking into consideration appropriate measures to protect the environment. However, this legislation, if enacted into law, would cause a severe restriction or loss of coal production. The results of this would be: (1) increased costs to consumers of electric power; (2) increased unemployment in the domestic coal mining industry; and (3) a general adverse affect on our national economy evidenced by a loss to our Gross National Product, both directly and indirectly, attributable to lost coal production. Moreover, additional inflationary pressures would be created by the high administrative costs associated with a new Federal enforcement program and the uncertainties created as a result of the extreme complexity of the bill and the resulting proliferation of citizen suits and other court cases. Finally, in direct contravention of the need to reduce our dependence on foreign oil supplies, enactment of this legislation would require even greater oil imports at higher prices, thus creating a balance of payments deficit. FORD & Sincerely, Barrette SALD ACTING General Counsel AMERICAN REVOLUTION WENTENNING TENNESSEE VALLEY AUTHORITY WASHINGTON, D. C. 20444 December 30, 1974 1776-1976 Mr. Wilfred H. Rommel Assistant Director for Legislative Reference Office of Management and Budget Washington, D. C. Dear Mr. Rommel: In response to a request from Mr. Ron Peterson of your office, this will confirm TVA's view on S. 425, dealing with surface mine reclamation. For many years, the Tennessee Valley Authority has supported the enactment of strong surface mine reclamation legislation which would provide both effective reclamation and allow the mining of the nation's vital coal resources. The uncertainty of coal production losses associated with S. 425 continues to give us concern. However, based on our analysis of its effect on the TVA area of coal supply, we have no objection to the enrolled bill. Sincerely, Lawrence L. Calvert Washington Representative An Equal Opportunity Employer THE WHITE HOUSE ACTION MEMORANDUM WASHINGTON LOG NO.: 823 Date: December 24, 1974 Time: 11:07 a.m. FOR ACTION: Mike Duval CC (for information): Warren Hendr Max Friedersdorf Jerry Jones Phil Areeda Paul Theis 12/24/14 1974 DEC Bill Seidman 24 Alan eenspan OK/WO FROM THE STAFF SECRETARY DUE: Date: December 26, 1974 Time: 4:00 p.m. SUBJECT: Enrolled Bill S. 425 - The Surface Mining Control and Reclamation Act of 1974 ACTION REQUESTED: For Necessary Action X For Your Recommendations Prepare Agenda and Brief Draft Reply X For Your Comments Draft Remarks REMARKS: Please return to Judy Johnson, Ground Floor, West Wing PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED. If you have any questions or if you anticipate a delay in submitting the required material, please Warren K. Hendriks telephone the Staff Secretary immediately. For the President THE WHITE HOUSE ACTION MEMORANDUM WASHINGTON LOG NO.: 823 Date: December 24, 1974 Time: 11:07 a.m. FOR ACTION: Mike Duval Max Friedersdorf CC (for information): Warren Hendriks Phil Areeda Jerry Jones Paul Theis Bill Seidman Alan Greenspan FROM THE STAFF SECRETARY DUE: Date: December 26, 1974 Time: 4:00 p.m. SUBJECT: Enrolled Bill S. 425 - The Surface Mining Control and Reclamation Act of 1974 ACTION REQUESTED: For Necessary Action X For Your Recommendations Prepare Agenda and Brief Draft Reply X For Your Comments Draft Remarks REMARKS: Please return to Judy Johnson, Ground Floor, West Wing Veto gws per position of .OM B - Treasury PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED. If you have any questions or if you anticipate a delay in submitting the required material, please Warren K. Handrik telephone the Staff Secretary immediately. For the President OFFICE will OFFICE OF PRESIDENT & UNITED EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 DEC 24 1974 MEMORANDUM FOR ROBERT D. LINDER Subject: Enrolled Bill S. 425 - Strip Mining Frank Zarb, the new Administrator of the Federal Energy Administration, asked to be recorded as strongly recommending that the above enrolled bill be disapproved. Hill Romand Assistant Director for Legislative Reference THE WHITE HOUSE WASHINGTON Decmeber 24, 1974 MEMORANDUM FOR: WARREN HENDRIKS FROM: MAX FRIEDERSDORF m.G. SUBJECT: Action Memorandum - Log No. 823 Enrolled Bill S. 425 - The Surface Mining Control and Reclamation Act of 1974. The Office of Legislative Affairs concurs in the attached proposal and has no additional comments, other than to say it would be impossible to get a worse bill next year - VETO IT. Attachment. FORD & LIBRARY THE WHITE HOUSE 746 ACTION MEMORANDUM WASHINGTON LOG NO.: 823 Date: December 24, 1974 Time: 11:07 a.m. FOR ACTION: Mike Duval Max Friedersdorf CC (for information): Warren Hendriks Phil Areeda Jerry Jones Paul Theis Bill Seidman Alan Greenspan FROM THE STAFF SECRETARY DUE: Date: December 26, 1974 Time: 4:00 p.m. SUBJECT: Enrolled Bill S. 425 - The Surface Mining Control and Reclamation Act of 1974 ACTION REQUESTED: For Necessary Action X For Your Recommendations Prepare Agenda and Brief Draft Reply X For Your Comments Draft Remarks GERALD FORD LIBRARY REMARKS: Please return to Judy Johnson, Ground Floor, West Wing 1) on the ments, 2 defen to thre who know something about loss the subject. 2) unless of vetued, we are very the message confident shone of 1 the not refer numbers. to specific to those That production the who bill 2 would think would the lemt fur options has will mne not then Deem a year presmasive to consider aptims; obut Adminishal Nason # 2 of the deaft statemed P. Aceda PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED. If you have any questions or if you anticipate a delay in submitting the required material, please telephone the Staff Secretary immediately. Warren K. Hendriks For the President THE WHITE HOUSE 824 ACTION MEMORANDUM WASHINGTON LOG NO.: 893 Date: December 24, 1974 Time: 11:07 a.m. FOR ACTION: Mike Duval vets CC (for information): Warren Hendriks Max Friedersdorf Jerry Jones Phil Areeda Paul Theis \ Bill Seidman Alan Greenspan FROM THE STAFF SECRETARY DUE: Date: December 26, 1974 Time: 4:00 p.m. SUBJECT: Enrolled Bill S. 425 - The Surface Mining Control and Replameménn Act of 1974 ACTION REQUESTED: For Necessary Action X For Your Recommendations Prepare Agenda and Brief Draft Reply X For Your Comments Draft Remarks FORD is LIBRARY 07/1139 REMARKS: Please return to Judy Johnson, Ground Floor, West Wing PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED. If you have any questions or if you anticipate a delay in submitting the required material, please K. R. COLE, JR. telephone the Staff Secretary immediately. For the President THE WHITE HOUSE ACTION MEMORANDUM WASHINGTON LOG NO.: 823 Date: December 24, 1974 Time: 11:07 a.m. FOR ACTION: Mike Duval CC (for information): Warren Hendr Max Friedersdorf Jerry Jones Phil Areeda Paul Theis 12/24/24 1974 DEC 24 Bill DU Seidman Alan Beenspan FROM THE STAFF SECRETARY DUE: Date: December 26, 1974 Time: 4:00 p.m. SUBJECT: Enrolled Bill S. 425 - The Surface Mining Control and Reclamation Act of 1974 ACTION REQUESTED: For Necessary Action X For Your Recommendations Prepare Agenda and Brief Draft Reply X For Your Comments Draft Remarks REMARKS: Please return to Judy Johnson, Ground Floor, West Wing FORD LIBRARY 938839 PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED. If you have any questions or if you anticipate a delay in submitting the required material, please Warren M. Hendriks telephone the Staff Secretary immediately. For the President aw RETURN TO RESEARCH ROOM 123 FORD & LIBRARY GERALD MEMORANDUM OF DISAPPROVAL on ok I am withholding my approval from S. 425, the Surface Mining Control and Reclamation Act of 1974. S. 425 would establish Federal standards for the environmental protection and reclamation of surface coal mining operations, including the reclamation of orphaned lands. Under a complex procedural framework, the bill would encourage the States to implement and enforce a program for the regulation of surface coal mining with substitution A Jedually admin administred of if the States do not act. The Executive Branch submitted to both the 92nd and 93rd Congresses legislation that would have established reasonable and effective reclamation and environmental protection requirements for mining activities. Throughout this period the Administration made every effort in would working with the Congress to produce a bill that strike the delicate balance between our desire for reclamation and environmental protection and our need to increase coal production in the United States. Unfortunately; S. 425, as enrolled, would have an unacceptable adverse impact on our domestic coal production which b unacceptable By 1977, the first year after the Act would take full effect, the Federal Energy Administration has estimated that coal 2 ok production losses would range from a minimum of 48 million ok tons to a maximum of 141 million tons. In addition, further losses Could result which cannot be quantified from n forcing Perticated various ambiquities in the bill, could regulatory disputes and protracted litigation. In my judgment the most significant reasons why such coal losses cannot be accepted are as follows: ONE Abundant 1. Coal is the only energy source over which the United States has total control we should X not unduly impair our ability to use it properly. we Are engaged iN A mAjor review 2. The Administration is currently undertaking of NAtional energy policies. Unnecessary major energy policy review This bill would restrictions ON COAl production would Timit limit the President's Freedom to adopt the best energy our NATION'S options for freedom the Nation. to Adopt the best FORD LIBRARY & energy options. uses the equivalent of 4 barrels of 3 The United States A must import barrels or NV improduced domestic expensive foreign oil for every ton of coal that we cannot produce doines Lically, yet the Sand a setuation what impoxtation of such oil cannot long be tolerated even at present levels without continued, serious This but economic consequences would exacerbate & this problem. Aven) 4. Unemployment would increase in both the coal fields and in those industries that could-not unable to obtain acternative fuel. 3 5.425 In addition, the bill provides for excessive Federal expenditures and would clearly have an inflationary impact it on the economy. . Moreover, S. 425 contains numerous other deficiencies which have recently been addressed in Executive Branch communications to the Congress concerning this legislation. the In sum, I find that S. 425 would produce an unacceptable This hel adverse impact on our domestic coal production offorts at a time when the Nation can ill afford significant losses from this critical energy resource. It would also further complicate our battle against inflation. Accordingly, I am withholding my approval from S. 425. In doing so, I am truly disappointed and sympathetic with those in Congress who have labored so hard to come up with a good bill / We must continue to diligently strive to ensure that laws and regulations are which (chans) establish environmental protection and reclamation Jack requirements appropriately balanced against the Nation's need for increased coal production. This will continue to be my Administration's goal in the new year. LIBRARY FORD 'if GERALD December 27, 1974 Mr. Robert Linder, In the event that the President decides to approve H.R. 8193, the Energy Transportation Security Act, we have prepared the attached draft of a Signing Statement for his consideration. Wief Remuel Wilf Rommel FORD i LIBRARY GERALD STATEMENT BY THE PRESIDENT I have today signed H.R. 8193, the Energy Transportation Security Act, 1974. The purpose of this Act is to help assure that a much larger portion of U.S. petroleum imports will be carried in U.S. flag ships. It is the objective of the Act to have 20% of our oil imports carried in U.S. flag ships as soon as possible, 25% by June 1975 and 30% by June 1977. This com- pares to about 5% of the U.S. oil imports now being carried in U.S. flag ships. The Act also provides authority to the President to waive the application of the cargo preference requirements in emergencies where he finds it to be in the national interest to do SO. Application of the preference at this time would result in a large increase in demand to build new ships in U.S. shipyards to carry the oil at the preferential rates. Shipyards are already in the midst of a strong boom and are operating near capacity. The increased demand created by application of this Act is likely to jeopardize the ability of our shipyards to meet the requirements of the Navy for new ships to fulfill our national defense needs. Furthermore, application of the preference would increase the cost of transporting oil to the U.S. at a time when the cost of imported oil is already unreasonably high. These higher oil costs would result in increased prices for all products and services which depend on petroleum. This would be a serious set-back in our war on inflation. While I have always been supportive of a strong U.S. flag merchant marine, it is the inflationary aspect of the Act which most concerns me. We must continue to review and modify those Federal actions which add to our economic problems and which may not provide sufficient offsetting benefits to the public. GERALD FORD LIBRARY 2 Therefore, I intend to seriously consider whether present economic conditions compel me to waive the cargo preference provisions of this Act at this time until the national interest and economic conditions permit application of the preferences in whole or in part. GERALD LIGARA GERALD R. FORD MEMORANDUM OF DISAPPROVAL I am withholding my approval from S. 425, the Surface Mining Control and Reclamation Act of 1974. S. 425 would establish Federal standards for the environmental protection and reclamation of surface coal mining operations including the reclamation of orphaned lands. Under a complex procedural framework, the bill would encourage the States to implement and enforce a program for the regulation of surface coal mining with Federal administration of the program substituted if the States do not act. The Executive Branch submitted to both the 92nd and 93rd Congresses legislation that would have established reasonable and effective reclamation and environmental GERALD FORD LIBRARY protection requirements for mining activities. Throughout this period the Administration made every effort in working with the Congress to produce a bill that strikes the delicate balance between our desire for reclamation and environmental protection and our need to increase coal production in the United States. Unfortunately, S. 425, as enrolled, would have an unacceptable adverse impact on our domestic coal production. By 1977, the first year after the Act would take full effect, the Federal Energy Administration has estimated that coal 2 production losses would range from a minimum of 48 million ton to a maximum of 141 million tons. In addition, further losses would result which cannot be quantified because various ambiquities in the bill could result in regulatory disputes and protracted litigation. In my judgment the most significant reasons why such coal losses cannot be accepted are as follows: 1. Coal is the only basic energy source over which the United States has total control -- we should not unduly impair our ability to use it properly. 2. The Administration is currently undertaking a major energy policy review -- this bill would limit the President's freedom to adopt the best energy options for the Nation. 3. The United States must import four barrels of expensive foreign oil for every ton of coal that we cannot produce domestically, yet the importation of such oil cannot long be tolerated even at present levels without continued, serious economic consequences -- S. 425 would exacerbate this problem. 4. Unemployment would increase in both the coal fields and in those industries that could not obtain replacement fuel sources. FORD LIBRARY i GERALD 3 In addition, the bill provides for excessive Federal expenditures and would clearly have an inflationary impact on the economy. Moreover, S. 425 contains numerous other deficiencies which have recently been addressed in Executive Branch communications to the Congress concerning this legislation. In sum, I find that S. 425 would produce an unacceptable adverse impact on our domestic coal production efforts at a time when the Nation can ill afford significant losses from this critical energy resource. It would also further complicate our battle against inflation. Accordingly, I am withholding my approval from S. 425. In doing so, I am truly disappointed and sympathetic with those in Congress who have labored so hard to come up with a good bill. We must continue to diligently strive to ensure that law and regulations are in effect which establish environmental protection and reclamation requirements appropriately balanced against the Nation's need for increased coal production. This will continue to be my Administration's goal in the new year. THE WHITE HOUSE December , 1974 FORD LIBRARY aw RETURN TO RESEARCH ROOM 126 MEMORANDUM OF DISAPPROVAL I am withholding my approval from S. on 425, the Surface ok Mining Control and Reclamation Act of 1974. S. 425 would establish Federal standards for the environmental protection and reclamation of surface coal mining operations, including the reclamation of orphaned lands. Under a complex procedural framework, the bill would encourage the States to implement and enforce a program for the administred regulation of surface coal mining with substitution of a Federal administration of the program substituted if the fedually progra States do not act. The Executive Branch submitted to both the 92nd and 93rd Congresses legislation that would have established reasonable and effective reclamation and environmental protection requirements for mining activities. Throughout this period the Administration made every effort in working with the Congress to produce a bill that would strike the delicate balance between our desire for reclamation and environmental protection and our need to increase coal production in the United States. Unfortunately, S. 425, as enrolled, would have an adverse impact on our domestic coal production, which is unacceptable By 1977, the first year after the Act would take full effect, the Federal Energy Administration has estimated that coal GERRIDA FORD LIBRARY 2 on production losses would range from a minimum of 48 million ok tons to a maximum of 141 million tons. In addition, further from losses Could result which cannot be quantified n various ambiquities in the bill, forcing Protracted regulatory disputes and protracted litigation. In my judgment the most significant reasons why such coal losses cannot be accepted are as follows: 1. Coal is the only basic energy source over which the United States has total control should not unduly impair our ability to use it properly. 2. She The Administration is currently undertaking a major energy policy review An this bill would limit the President' my freedom to adopt the best energy options for the Nation. 3 The United States must import four barrels of resproduced domestic expensive foreign oil for every ton of coal that wescannot a cituation which importation of such ofl cannot long be tolerated even at present levels without continued, serious This hil economic consequences 5 would exacerbate @ this problem. 4. Unemployment would increase in both the coal unable to fields and in those industries that couldnot obtain replacement fuel sources. FORD 3 5.425 In addition, the bill provides for excessive Federal expenditures and would clearly have an inflationary impact it on the economy. Moreover, 3.425 contains numerous other deficiencies which have recently been addressed in Executive Branch communications to the Congress concerning this legislation. In sum, I find that the S would produce an unacceptable of This he adverse impact on our domestic coal production offorts at a time when the Nation can ill afford significant losses from this critical energy resource. It would also further complicate our battle against inflation. Accordingly, I am withholding my approval from S. 425. In doing so, I am truly disappointed and sympathetic with those in Congress who have labored SO hard to come up with a good bill. We must continue to diligently strive to ensure that law and regulations are in offect which establish environmental protection and reclamation requirements appropriately balanced against the Nation's need for increased coal production. This will continue to be my Administration's goal in the new year. THE WHITE HOUSE FORD LIBRARY December , 1974 THE WY THE MEMORANDUM OF DISAPPROVAL I am withholding my approval from S. 425, the Surface Mining Control and Reclamation Act of 1974. S. 425 would establish Federal standards for the environmental protection and reclamation of surface coal mining operations, including the reclamation of orphaned lands. Under a complex procedural framework, the bill would encourage the States to implement and enforce a program for the regulation of surface coal mining with substitution of a federally administered program if the States do not act. The Executive Branch submitted to both the 92nd and 93rd Congresses legislation that would have established reasonable and effective reclamation and environmental protection requirements for mining activities. Throughout this period, the Administration made every effort in working with the Congress to produce a bill that would strike the delicate balance between our desire for reclamation and environmental protection and our need to increase coal production in the United States. Unfortunately, S. 425, as enrolled, would have an adverse impact on our domestic coal production which is unacceptable. By 1977, the first year after the Act would take full effect, the Federal Energy Administration has estimated that coal production losses would range from a minimum of 48 million tons to a maximum of 141 million tons. In addition, further losses which cannot be quantified could result from ambiguities in the bill, forcing pro- tracted regulatory disputes and litigation. In my judgment, the most significant reasons why such coal losses cannot be accepted are as follows: 2 1. Coal is the one abundant energy source over which the United States has total control. We should not unduly impair our ability to use it properly. 2. We are engaged in a major review of national energy policies. Unnecessary restrictions on coal production would limit our Nation's freedom to adopt the best energy options. 3. The United States uses the equivalent of 4 barrels of expensive foreign oil for every ton of unproduced domestic coal --- a situation which cannot long be tolerated without con- tinued, serious economic consequences. This bill would exacerbate this problem. 4. Unemployment would increase in both the coal fields and in those industries unable to obtain alternative fuel. In addition, S. 425 provides for excessive Federal expenditures and would clearly have an inflationary impact on the economy. Moreover, it contains numerous other deficiencies which have recently been addressed in Executive Branch communications to the Congress concerning this legislation. In sum, I find that the adverse impact of this bill on our domestic coal production is unacceptable at a time when the Nation can ill afford significant losses from this critical energy resource. It would also further complicate our battle against inflation. Accordingly, I am withholding my approval from S. 425. In doing so, I am truly disappointed and sympathetic with those in Congress who have labored so hard to come up with a good bill. We must continue to strive diligently n 3 to ensure that laws and regulations are in effect which establish environmental protection and reclamation require- ments appropriately balanced against the Nation's need for increased coal production. This will continue to be my Administration's goal in the new year. GEOLD R.FORD THE WHITE HOUSE, December 30,1974 STATE FORD LIBRARY FOR IMMEDIATE CLEASE DECEMBER 30, 1974 Office of the White House Press Secretary (Vail, Colorado) THE WHITE HOUSE MEMORANDUM OF DISAPPROVAL I am withholding my approval from S. 425, the Surface Mining Control and Reclamation Act of 1974. S. 425 would establish Federal standards for the environmental protection and reclamation of surface coal mining operations, including the reclana tion of surface coal mining operations, including the reclamation of orphaned lands. Under a complex procedural framswork, the bill would encourage the States to implement and enforce a program for the regulation of surface coal mining with subs titution of a federally administered program if the States do not act. The Executive Branch submitted to both the 92nd and 93rd Congresses legislation that would have established reasonable and effective reclamation and environmental protection requirements for mining activities. Through- out this period, the Administration made every effort in working with the Congress to produce a bill that would strike the delicate balance between our desire for reclamation and environmental protection and our need to increase coal production in the United States. Unfortunately, S. 425, as enrolled, would have an adverse impact on our domestic coal production which is unacceptable. By 1977, the first year after the Act would take full effect, the Federal Energy Administration has estimated that coal production losses would range from a minimum of 48 million tons to a maximum of 141 million tons. In addition, further losses which cannot be quantified could result from ambiguities in the bill, forcing protracted regulatory disputes and litigation. In my judgment, the most significant reasons why such coal losses cannot a fulloits: 1. Coal is the one abundant energy source over which the United States has total control We should not unduly impair our ability to use it properly. FORD 2. We are engaged in a major review of national energy policies. LISRARY Unnecessary restrictions on coal production would limit our Nation's freedom to adopt the best energy options. 3. The United States uses the equivalent of 4 barrels of expensive foreign oil for every ton of unproduced domestic coal -- a situa- tion which cannot long be tolerated without continued, serious economic consequences. This bill would exacerbate this problem 4. Unemployment would increase in both the coal field and in those industries unable to obtain alternative fueld. In addition, S. 425 provides for excessive Federal expenditures and would clearly have an inflationary impact on the economy Moreover, it contains numerous other deficiencies which have recently been addressed In Exec- utive Branch communications to the Congress concerning this legislation. (MORE) -2- In sum, I find that the adverse impact of this bill on our domestic coal production is unacceptable at a time when the Nation can ill afford signi- ficant losses from this critical energy resource. It would also further complicate our battle against inflation. Accordingly, I am withholding my approval from S. 425 In doing so, I am truly disap; ointed and sympathetic with those in Congress who have labored so hard to come up with a good bill. We must continue to strive diligently to ensure that laws and regulations are in effect which establish environmental protection and reclamation requirements appropriately balanced against the Nation's need for increased coal production This will continue to be my Administration's goal in the new year. GERALD R FORD THE WHITE HOUSE, December 30, 1974 # # # GERATE FORD