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H.R. 5373
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Records of the White House Office of the Chief of Staff to the President (George H. W. Bush Administration)
James A. Baker III Files
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Originally Processed With FOIA(s):
FOIA Number:
2000-0715-F
2000-0715-F
FOIA
MARKER
This is not a textual record. This is used as an
administrative marker by the George Bush Presidential
Library Staff.
Record Group/Collection:
George H.W. Bush Presidential Records
Collection/Office of Origin: Chief of Staff, White House Office of
Series:
Baker, James A., III, Files
Subseries:
Legislative Files
OA/ID Number:
93003
Folder ID Number:
93003-002
Folder Title:
H.R. 5373
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OCT 08 '92 16:37
P.1
JOHN G. OLIVEIRA
24280 Fairfax Avenue
Lemoore, CA 93245
209-924-8011
October 8, 1992
Honorable James Baker
Transmitted Via Facsimile: 202-456-2461
Chief of Staff
Executive Office of the President
1600 Pennsylvania Avenue, NW
Washington, D.C. 20800
Dear Mr. Baker:
My wife and I are family farmers and the passing of the proposed CVP (Central Valley
Project "reform" legislation could very possibly put us out of business. We realize the
severe political pressure that is being applied to the president at this point, but we
ask that you express our concern to the president 80 he may veto this legislation to
save our farm and the jobs of our employees.
Sincerely,
John G. Oliveira
OCT 08 '92 16:37
P.2
LEONARD W. OLIVEIRA
9235 24th Avenue
Lemoore, CA 93245
209-924-2463
October 8, 1392
Honorable James Baker
Transmitted via Facsimile: 202-456-2461
Chief of Staff
Executive Office of the President
1600 Pennsylvania Avenue, NW
Washington, D.C. 20500
Dear Mr. Baker:
My wife and I are family farmers and the passing of the proposed CVF (Central Valley
Project "reform" legislation could very possibly put us out of business. We realize the
severe political pressure that is being upplied to the president at this point, but we
ask that you express our concern to the president so he may veto this legislation to
save our farm and the jobs of our employees.
Sincerely,
Leonard W. Oliveira
OCT 08 '92 16:37
P.3
JOHN D. OLIVEIRA
262 Helene
Lemoore, CA 93245
209-924-4256
October 8. 1992
Honorable James Baker
Transmitted via Facsimile: 202-456-2461
Chief of Staff
Executive Office of the President
1600 Pennsylvania Avenue, NW
Washington, D.C. 20500
Dear Mr. Baker:
My wife and I are family farmers and the passing of the proposed CVP (Central Valley
Project "reform" legislation could very possibly put us out of business. We realize the
severe political pressure that is being applied to the president at this point, but we
ask that you express our concern to the president so he may veto this legislation to
save our farm and the jobs of our employees.
Job Sincerely, Jahn D. Oliveira I Chan
OCT 08 '92 16:38
P.4
MICHAEL L. LYON
233 Deodar
Lemoore, CA 93245
209-924-8430
October 8, 1992
Honorable James Baker
Transmitted via Facsimile: 202-456-2461
Chief of Staff
Executive Office of the President
1600 Pennsylvania Avenue, NW
Washington, D.C. 20600
Dear Mr. Baker:
My wife and I are family farmers and the passing of the proposed CVP (Central Valley
Project "reform" legislation could very possibly put us out of business. We realize the
severe political pressure that is being applied to the president at this point, but we
ask that you express our concern to the president so he may veto this legislation to
save our farm and the jobs of our employees.
Sincerely,
Richaelhyan
OCT 08 '92 16:38
P.5
ANTHONY T. OLIVEIRA
24476 Fairfax Avenue
Lemoore, CA 93245
209-924-4051
October 8, 1992
Honorable James Baker
Transmitted via Faceimile: 202-456-2461
Chief of Staff
Executive Office of the President
1600 Pennsylvania Avenue, NW
Washington, D.C. 20500
Dear Mr. Baker:
My wife and I are family farmers and the passing of the proposed CVP (Central Valley
Project "reform" legislation could vary possibly put us out of business. We realize the
severe political pressure that is being applied to the president at this point, but we
ask that you express our concern to the president so he may veto this legislation to
save our farm and the jobs of our employees.
Anthony and 1. Oliveira
Sincerely
214 239-2625
FAX 214 387-1328
THE NORTH AMERICAN COAL CORPORATION
CLIFFORD R. MIERCORT
SIGNATURE PLACE II. 14785 PRESTON ROAD. SUITE 1100
President and
Chief Executive Officer
DALLAS, TEXAS 75240-7891
October 7, 1992
The Honorable George Herbert Walker Bush
President of the United States
The White House
1600 Pennsylvani Avenue, N.W.
Washington, D.C. 20004
Dear President Bush:
I urge you to veto the National Energy Strategy Bill because of the
inclusion of the Rockefeller United Mine Workers of America (UMWA) Retiree
Amendment. The Rockefeller Amendment includes a provision called the "super-
reachback" which would require companies that are not current signatories to a
UMWA Coal Wage Agreement to be taxed to pay for health and medical costs for
all retirees who worked for it. This legislated liability will be imposed
upon companies even though they never negotiated nor have an obligation to pay
for this benefit under any of the labor agreements they signed.
In our case, which is not unusual, The North American Coal Corporation
would have a liability under this legislation that could exceed $157 million.
The company has been out of the business of mining bituminous coal from its
parent company operations since 1983. When we were mining bituminous coal, we
had the right to pass the benefit costs on to the customers we had at the
time. Under the Rockefeller Amendment, we would have to adsorb the entire
costs with no chance of passing them on to our past or present customers. It
is fundamentally unfair that under the Rockefeller Amendment the company will
be forced retroactively to assume this totally new liability.
Even worse is that the "super-reachback" does not benefit the retired
miners, but is for the benefit of the current signatories to the Bituminous
Coal Operators Association (BCOA)/UMWA Wage Agreement. The BCOA companies
will reap a significant windfall from the reduction in benefit obligations
they are obligated to pay under their current labor agreement. In fact, we
calculate that the two largest BCOA companies, foreign-owned or controlled
Peabody Coal and Consolidation Coal, will save nearly $70 million per year.
However, many smaller domestic companies, which are no longer signatories to
the UMWA agreement, will be forced into bankruptcy.
The Honorable George Herbert Walker Bush
October 7, 1992
Page - 2 -
This is not only bad legislation which sets a terrible precedent by
allowing collective bargaining to be bypassed and abrogating existing labor
agreements through retroactive legislation, but also taxes parties who should
not be involved. In my view, if this bill is signed into law, the Adminis-
tration will be :confronted with similar federal legislation designed to
require persons not party to a collective bargaining agreement to pay for the
benefit obligations provided by such agreement.
Many members of Congress believe the Rockefeller legislation is totally
inequitable as exemplified by the attached statement from Congressman Jake
Pickle made during deliberations on the Energy Bill.
It is now up to you to show the type of leadership and statesmanship that
only you can give by vetoing the National Energy Strategy Bill.
Sincerely,
Ufford R. Microut
Clifford R. Miercort
President and Chief Executive Officer
CRM/mhc
Attachment
Distribution List Attached
OCT-05-1992 16:21 FROM CONG. J J PICKLE D.C.
TO
96253364
P.02
REMARKS OF CONGRESSMAN J.J. PICKLE
H.R. 776
October 5, 1992
Mr. Speaker, I rise today in support of the energy bill. I support this bill
because it includes important incentives for solar energy and much needed relief for
independent producers who explore and develop our domestic energy supplies. And
I'm especially pleased about new incentives for expanding our use of alternative fuels,
like compressed natural gas. Alternative fuels will not only help curb our imports of
petroleum, but will also improve our environment by cutting down on harmful
emissions. These are all good, and vital pieces to our national energy strategy.
But there is one part of this bill which is deplorable, and that is the bituminous
coal health benefit bailout. Mr. Speaker, this bailout, as well intended as it may be, is
a terrible injustice, and sets a precedent in the area of employee benefits that we will
all live to regret.
Simply put, the mine workers and the bituminous coal operators agreed decades
ago to establish a health plan that would be paid for by all who mined coal in the
eastern United States. As long as "coal was king" this agreement worked reasonably
well. Unfortunately, the coal industry has changed dramatically. Today the eastern
states coal industry is dominated by two foreign owned companies and the number of
miners has drastically declined. About four years ago, the coal operators decided that
they were no longer going to live up to their responsibility to pay for the health benefit
plan. And SO they reduced their contributions to the plan, and the plan today faces
insolvency. And now the Congress is being blackmailed into bailing this plan out by
taxing companies that have no current connection with the bituminous coal industry.
Mr. Speaker, we should not do this! It is wrong! It is as if we are a street
gang mugging an innocent passerby, and justifying it by saying that our family and
friends are hungry.
1
OCT-05-1992 16:22 FROM CONG. J J PICKLE D.C.
TO
96253364
P.03
We should stick to the original agreement and force those companies who are mining
eastern coal to meet their obligations. We can all be sympathetic to the plight of the
mine workers, many of whom are elderly and in ill health. But these benefits should
be paid by the coal companies, not everyone else. Why are we kowtowing to these
huge foreign owned coal companies? Why are we raising taxes on domestic energy
companies to pad the profits of these foreign profiteers? It was their cut throat
business practices that drove the domestic coal companies out of business, and now we
bail them out. We let them escape their obligations and ship their profits overseas.
We should be ashamed!
Let me also warn my colleagues, you have not heard the last of this issue. We
pay for this bailout by taxing any company or its successor which ever had any
connection with mining coal under the BCOA agreement. We have no idea who all
these companies are. There will now be a rush to track them down and tell them that
they will have to pay millions of dollars a year into this health plan over which they
have no control. Some will be forced into bankruptcy, others will be forced to lay off
workers. And they will blame you and me, and they will be right. So plan today what
you will tell them, it won't be easy.
Finally, I tell you that we are setting a precedent today that will come back to
haunt us. Today we are bailing out the mine workers plan and letting the mine
operators have a windfall. Who will be next? Will it be the steel industry? The
airlines? Tire and rubber companies? Perhaps it will be the auto industry? I tell you
right now that there is good reason to believe that the steel industry is already making
plans to get a similar bailout.
The members should know that our defined benefit pension plans, which are
guaranteed by the Pension Benefit Guaranty Corporation, are underfunded by over $40
billion dollars. Some of the largest companies in America have deliberately chosen to
2
OCT-05-1992 16:22 FROM CONG. J J PICKLE D.C:
TO
96253364
P.04
underfund their plans by billions of dollars. And, when I raise this issue no one wants
to talk about it. The companies refuse to appear before the Oversight Subcommittee. I
am accused of frightening people and undermining confidence in our pension system. I
do not want to frighten anybody. But we must insist that companies that make benefit
promises keep their promises.
At the same time the other Body was hatching this plan to bail out the coal
health plan, it balked at adopting a proposal to make companies properly fund their
pension plans. It seems inconvenient to pressure companies to keep their pension
promises. There are always a thousand excuses for putting this responsibility off to a
later day. But the later day always comes. For the coal industry it comes today and
we have chosen to rob Peter to pay Paul. Who will we hijack when the time comes to
bail out the rest of our retirement system? Every company that has ever sponsored a
pension plan or ever intends to should ask that question. Because today we are telling
the world that if you play by the rules and meet your responsibilities you pay the
penalty, and the sharp operators who run and hide go free.
Mr. Speaker on balance this is a good bill. It would be better if we had stood
our ground and held the coal operators to their own promises. This provision to make
other companies pay the coal industry's bills is just a selfish regional request. The
other body has caved in to this blackmail by three or four key senators. We can all
agree to protect the miners benefits, but we should have agreed to make the mine
owners and operators pay. I, for one, was willing to do so. However, I am not willing
to block this entire bill for this one reason. But, I believe that the coal provision is a
travesty of justice and an embarrassment to the Congress. We should never let
ourselves be put in this corner again.
3
DISTRIBUTION LIST
The Honorable Lloyd Bentsen
The Honorable John D. Rockefeller IV
United States Senate
United States Senate
703 Senate Hart Office Building
109 Senate Hart Office Building
Washington, D.C. 20510-4301
Washington, D.C. 20510-4802
The Honorable David L. Boren
The Honorable Alan K. Simpson
United States Senate
United States Senate
453 Senate Russell Office Building
261 Senate Dirksen Office Building
Washington, D.C. 20510-3601
Washington, D.C. 20510-5002
The Honorable John B. Breaux
The Honorable Steve Symms
United States Senate
United States Senate
516 Senate Hart Office Building
509 Senate Hart Office Building
Washington, D.C. 20510-1803
Washington, D.C. 20510-1202
The Honorable Robert C. Byrd
The Honorable Malcolm Wallop
United States Senate
United States Senate
311 Senate Hart Office Building
237 Senate Russell Office Bullding
Washington, D.C. 20510
Washington, D.C. 20510-5001
The Honorable John H. Chafee
The Honorable Bill Archer
United States Senate
United States House of Representatives
567 Senate Dirksen Office Building
1236 Longworth House Office Building
Washington, D.C. 20510-3902
Washington, D.C. 20515-4307
The Honorable Kent Conrad
The Honorable Michael A. Andrews
United States Senate
United States House of Representatives
724 Senate Hart Office Bullding
303 Cannon House Office Building
Washington, D.C. 20510-3403
Washington, D.C. 20515-4325
The Honorable Wendell H. Ford
The Honorable Richard Armey
United States Senate
United States House of Representatives
173A Senate Russell Office Building
130 Cannon House Office Building
Washington, D.C. 20510-1701
Washington, D.C. 20515-4326
The Honorable Phil Gramm
The Honorable Jim Chapman
United States Senate
United States House of Representatives
370 Senate Russell Office Building
236 Cannon House Office Building
Washington, D.C. 20510-4302
Washington, D.C. 20515-4301
The Honorable James M. Jeffords
The Honorable Byron L Dorgan
United States Senate
United States House of Representatives
530 Senate Dirksen Office Building
203 Cannon House Office Building
Washington, D.C. 20510-4503
Washington, D.C. 20515-3401
The Honorable Don Nickles
The Honorable John P. Murtha
United States Senate
United States House of Representatives
713 Senate Hart Office Building
2423 Rayburn House Office Building
Washington, D.C. 20510-3602
Washington, D.C. 20515-3812
The Honorable J. J. Pickle
David C. O'Neal
United States House of Representatives
Assistant Secretary
242 Cannon House Office Building
Land and Minerals Management
Washington, D.C. 20515-4310
Department of the Interior
1849 C Street, N.W.
The Honorable Dan Rostenkowski
Washington, D.C. 20240
United States House of Representatives
2111 Rayburn House Office Building
Harry M. Snyder, Director
Washington, D.C. 20515-1308
Office of Surface Mining
Department of the Interior
The Honorable George A. Sinner
1951 Constitution Avenue, N.W.
Governor of North Dakota
Washington, D.C. 20240
State Capitol - 600 East Boulevard
Bismarck, ND 58505
Thomas A. Scully
Associate Director
The Honorable Lynn M. Martin
Human Resources, Veterans & Labor
Secretary of Labor
Office of Management and Budget
Department of Labor
Old Executive Office Building
200 Constitution Avenue, N.W.
17th St. & Pennsylvania Avenue, N.W.
Washington, D.C. 20210
Washington, D.C. 20503
The Honorable James D. Watkins
Marian Marshall
Secretary of Energy
Legislative Assistant
Department of Energy
Office of Senator Malcolm Wallop
1000 Independence Avenue, S.W.
237 Senate Russell Office Building
Washington, D.C. 20585
Washington, D.C. 20510-5001
The Honorable Manuel Lujan, Jr.
Secretary of the Interior
Department of the Interior
1849 C Street, N.W.
Washington, D.C. 20240
The Honorable James A. Baker, III
Chief of Staff to the President
The White House
1600 Pennsylvania Avenue, N.W.
Washington, D.C. 20500
The Honorable W. Henson Moore
Assistant to the President and
Deputy Chief of Staff
The White House
1600 Pennsylvania Avenue, N.W.
Washington, D.C. 20500
James G. Randolph
Assistant Secretary for Fossil Energy
Department of Energy
Forrestal Building
1000 Independence Avenue, S.W.
Washington, D.C. 20585
NACCO Industries, Inc.
Alfred M. Rankin, Jr.
President and
Chief Executive Officer
October 8, 1992
The Honorable George Herbert Walker Bush
President of the United States
The White House
Washington, D.C.
Dear Mr. President:
As Chairman of NACCO Industries, Inc., an Ohio company,
I am writing to urge you to veto the National Energy Bill.
Attached to this legislation is the so-called "Rockefeller
Amendment," a proposal which imposes a highly discriminatory
reachback tax on a few companies no longer engaged in the
mining of bituminous coal. The ostensible purpose of this tax
is to provide a new contribution scheme for the United Mine
Workers of America retiree health funds. Unfortunately, this
tax allows a group of employers, the Bituminous Coal Operators
Association, to escape their contractual obligations to ensure
that the UMWA funds are solvent.
Although our coal subsidiary was at one time a member of
the Bituminous Coal Operators Association ("BCOA"), it is no
longer -- and, in fact, shut down its last bituminous coal mine
in 1983. Our coal company completely fulfilled all of its
contractual obligations to the funds at the time when it
legally withdrew from the BCOA. Inclusion of companies such as
ours in the reachback mechanism is not only contrary to all
principles of collective bargaining, but also is simply wrong.
This discriminatory legislation amounts to a highly selective
tax on our company. Ignoring the fact that we have contributed
far more monies into the funds than any liabilities we have
ever created, the enactment of this bill now requires that we
pay into these funds a second time.
Finally, we never were the effective owners of these coal
mines. We mined coal for a service fee, and those costs were
always paid by our customers -- the utilities. These new and
totally unanticipated costs would have been passed through to
our customers if this law had been in effect during the time
the mining took place.
5875 Landerbrook Drive
Mayfield Heights, Ohio 44124-4017
Telephone 216/449-9650
Fax 216/449-9541
The Honorable
George Herbert Walker Bush
President of the United States
October 8, 1992
Page 2
This discriminatory and confiscatory tax on us results in a
present value charge in excess of the net worth of our lignite
coal company. Such a tax is grossly unfair and simply wrong.
I urge you to veto this legislation, Mr. President, so the
Congress will be put on notice that the imposition of these
confiscatory taxes on taxpayers is not an acceptable way to
solve the BCOA issue.
Sincerely,
Alfred M. Rankin, Jr.
Distribution List
The Honorable Lloyd Bentsen
The Honorable Alan K. Simpson
United States Senate
United States Senate
703 Senate Hart Office Building
261 Senate Dirksen Office Building
Washington, D.C. 20510-4301
Washington, D.C. 20510-5002
The Honorable David L. Boren
The Honorable Steve Symms
United States Senate
United States Senate
453 Senate Russell Office Building
509 Senate Hart Office Building
Washington, D.C. 20510-3601
Washington, D.C. 20510-1202
The Honorable John B. Breaux
The Honorable Malcolm Wallop
United States Senate
United States Senate
516 Senate Hart Office Building
237 Senate Russell Office Building
Washington, D.C. 20510-1803
Washington, D.C. 20510-5001
The Honorable Robert C. Byrd
The Honorable Bill Archer
United States Senate
United States House of Representatives
311 Senate Hart Office Building
1236 Longworth House Office Building
Washington, D.C. 20510-4801
Washington, D.C. 20515-4307
The Honorable John H. Chafee
The Honorable Michael A. Andrews
United States Senate
United States House of Representatives
567 Senate Dirksen Office Building
303 Cannon House Office Building
Washington, D.C. 20510-4301
Washington, D.C. 20515-4325
The Honorable Kent Conrad
The Honorable Richard Armey
United States Senate
United States House of Representatives
724 Senate Hart Office Building
130 Cannon House Office Building
Washington, D.C. 20510-3403
Washington, D.C. 20515-4326
The Honorable Wendell H. Ford
The Honorable Jim Chapman
United States Senate
United States House of Representatives
173A Senate Russell Office Building
236 Cannon House Office Building
Washington, D.C. 20510-1701
Washington, D.C. 20515-4301
The Honorable Phil Gramm
The Honorable Byron L. Dorgan
United States Senate
United States House of Representatives
370 Senate Russell Office Building
203 Cannon House Office Building
Washington, D.C. 20510-4302
Washington, D.C. 20515-3401
The Honorable James M. Jeffords
The Honorable John P. Murtha
United States Senate
United States House of Representatives
530 Senate Dirksen Office Building
2423 Rayburn House Office Building
Washington, D.C. 20510-4503
Washington, D.C. 20515-3812
The Honorable Don Nickels
The Honorable J.J. Pickle
United States Senate
United States House of Representatives
713 Senate Hart Office Building
242 Cannon House Office Building
Washington, D.C. 20510-3602
Washington, D.C. 20515-4310
The Honorable John D. Rockefeller IV
The Honorable Dan Rostenkowski
United States Senate
United States House of Representatives
109 Senate Hart Office Building
2111 Rayburn House Office Building
Washington, D.C. 20510-4802
Washington, D.C. 20515-1308
The Honorable George A. Sinner
The Honorable Lynn M. Martin
Governor of North Dakota
Secretary of Labor
State Capitol - 600 East Boulevard
Department of Labor
Bismarck, N.D. 58505
200 Constitution Avenue, N.W.
Washington, D.C. 20210
The Honorable James D. Watkins
The Honorable Manuel Lujan, Jr.
Secretary of Energy
Secretary of the Interior
Department of Energy
Department of the Interior
1000 Independence Avenue, S.W.
1849 C Street, N.W.
Washington, D.C. 20585
Washington, D.C. 20240
The Honorable James A. Baker, III
The Honorable W. Henson Moore
Chief of Staff to the President
Assistant to the President and
The White House
Deputy Chief of Staff
1600 Pennsylvania Avenue, N.W.
The White House
Washington, D.C. 20500
1600 Pennsylvania Avenue, N.W.
Washington, D.C. 20500
James G. Randolph
David C. O'Neal
Assistant Secretary for Fossil Energy
Assistant Secretary
Department of Energy
Land and Minerals Management
Forrestal Building
Department of the Interior
1000 Independence Avenue, S.W.
1849 C Street, N.W.
Washington, D.C. 20585
Washington, D.C. 20240
Harry M. Snyder, Director
Thomas A. Scully
Office of Surface Mining
Associate Director
Department of the Interior
Human Resources, Veterans & Labor
1951 Constitution Avenue, N.W.
Office of Management and Budget
Washington, D.C. 20240
Old Executive Office Building
17th St. & Pennsylvania Avenue, N.W.
Washington, D.C. 20503
Marian Marshall
Legislative Assistant
Office of Senator Malcolm Wallop
237 Senate Russell Office Building
Washington, D.C. 20510-5001