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7344823
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Presidential statement to the Senate on the veto of S. 391 [Veto Statements and Announcements]
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7344823
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Presidential statement to the Senate on the veto of S. 391 [Veto Statements and Announcements]
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collections
White House Press Releases (Ford Administration)
Press Releases
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U.S. Senate. (03/04/1789 - )
Legislation
Vetoes
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7344823
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3
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1976-07-03
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7
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1976
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Digitized from Box 28 of the White House Press Releases at the Gerald R. Ford Presidential Library
FOR IMMEDIATE RELEASE
JULY 3, 1976
Office of the White House Press Secretary
THE WHITE HOUSE
TO THE SENATE OF THE UNITED STATES:
I am returning to the Congress today without my approval
S. 391, the Federal Coal Leasing Amendments Act of 1975.
This bill addresses two essential issues: the form of
Federal assistance for communities affected by development
of Federally-owned minerals, and the way that Federal pro-
cedures for the leasing of coal should be modernized.
On the first of these issues, I am in total agreement
with the Congress that the Federal Government should provide
assistance, and I concur in the form of assistance adopted
by the Congress in S. 391. Specifically, I pledge my
support for increasing the State share of Federal leasing
revenues from 37-1/2 percent to 50 percent.
Last January I proposed to the Congress the Federal
Energy Impact Assistance Act to meet the same assistance
problem, but in a different way. My proposal called for a
program of grants, loans and loan guarantees for communities
in both coastal and inland States affected by development
of Federal energy resources such as gas, oil and coal.
The Congress has agreed with me that impact assistance
in the form I proposed should be provided for coastal States,
and I hope to be able to sign appropriate legislation in
the near future.
However, in the case of States affected by S. 391 -- most
of which are inland, the Congress by overwhelming majority
has voted to expand the more traditional sharing of Federal
leasing revenues, raising the State share of those revenues
by one third. If S. 391 were limited to that provision, I
would sign it.
Unfortunately however S. 391 is also littered with
many other provisions which would insert so many rigidities,
complications, and burdensome regulations into Federal
leasing procedures that it would inhibit coal production
on Federal lands, probably raise prices for consumers, and
ultimately delay our achievement of energy independence.
I object in particular to the way that S. 391 restricts
the flexibility of the Secretary of the Interior in setting
the terms of individual leases so that a variety of
conditions physical environmental and economic can
be taken into account. S. 391 would require a minimum
royalty of 12-1/2 percent, more than is necessary in all
cases. S. 391 would also defer bonus payments payments
by the lessee to the Government usually made at the front
end of the lease - on 50 percent of the acreage, an
more
2
unnecessarily stringent provision. This bill would also
require production within 10 years, with no additional
flexibility. Furthermore it would require approval of
operating and reclamation plans within three years of
lease issuance. While such terms may be appropriate in
many lease transactions or perhaps most of them such
rigid requirements will nevertheless serve to setback efforts
to accelerate coal production.
Other provisions of S. 391 will unduly delay the
development of our coal reserves by setting up new adminis-
trative roadblocks. In particular S. 391 requires detailed
anti-trust review of all leases, no matter how small; it
requires four sets of public hearings where one or two would
suffice, and it authorizes States to delay the process where
National forests a Federal responsibility - are concerned.
Still other provisions of the bill are simply unnecessary.
For instance, one provision requires comprehensive Federal
exploration of coal resources. This provision is not needed
because the Secretary of the Interior already has - and is
prepared to exercise the authority to require prospective
bidders to furnish the Department with all of their explora
tion data so that the Secretary, in dealing with them, will
do so knowing as much about the coal resources covered as
the prospective lessees.
For all of these reasons, I believe that S. 391 would
have an adverse impact on our domestic coal production. On
the other hand, I agree with the sponsors of this legislation
that there are sound reasons for providing in Federal law
not simply in Federal regulations a new Federal coal policy
that will assure a fair and effective mechanism for future
leasing.
Accordingly, I ask the Congress to work with me in
developing legislation that would meet the objections I
have outlined and would also increase the State share of
Federal leasing revenues.
GERALD R. FORD
THE WHITE HOUSE,
July 3. 1976.
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