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Originally Processed With FOIA(s): FOIA Number: S 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: Speechwriting, White House Office of Series: Speech File Draft Files Subseries: Chron File, 1989-1993 OA/ID Number: 13497 Folder ID Number: 13497-010 Folder Title: Natural Gas Wellhead Decontrol 7/26/89 Stack: Row: Section: Shelf: Position: G 25 6 4 3 THE WHITE HOUSE wASHINGTON July 24, 1989 INFORMATION MEMORANDUM FOR THE PRESIDENT THROUGH: CHRISS WINSTON w FROM: EDWARD E. MCNALLY EMN SUBJECT: REMARKS AT THE SIGNING CEREMONY FOR THE NATURAL GAS WELLHEAD DECONTROL ACT I. SUMMARY Attached tor your consideration and review are draft remarks for Wednesday afternoon's signing ceremony for the Natural Gas Wellhead Decontrol Act. 11. DISCUSSION At approximately 2:05 p.m. on Wednesday, July 26, 1989, you are scheduled to be announced at the East Room for the signing ceremony for the Natural Gas Wellhead Decontrol Act. The suggested remarks are brief (approximately five minutes), and include your announcement that the Secretary or Energy has been directed to develop a comprehensive National Energy Strategy. At the conclusion of your comments, there will be a brief ceremony as you sign the Act into law. (McNally/Simon) July 24, 1989, 6:50 p.m. Draft Four (GAS) PRESIDENTIAL REMARKS: NATURAL GAS BILL SIGNING CEREMONY THE EAST ROOM WEDNESDAY, JULY 26, 1989, 2:05 P.M. Thank you. Thanks all of you. And thanks also to my friend Jim Watkins, who is off to such an outstanding start at Energy. To Martha Hesse [[hess-SEE]], for her good efforts at FERC. And to the forward-looking leaders from both sides of the aisle -- leaders like [[my friends Jim McClure and Bennett Johnston, Norm Lent and John Dingell, Phil Sharp and Carlos Moorhead]] -- and many other leaders here today whose commitment to safeguarding America's energy and environment have made this landmark legislation possible. Natural gas -- methane -- is one of the best fuels on the world's energy menu. It is clean. It is efficient. It is abundant. But for 35 years, consumers and producers of natural gas have struggled under the burden of oppressive price regulations. This was directly responsible for the damaging natural gas shortages of the 1970's -- and for gas market distortions that exist to this day. It is instructive to look at what natural gas price controls brought us. They brought us shortages -- not increased supplies. They brought us higher gas prices -- not the lower consumer prices their supporters promised. 2 What was true for oil deregulation in 1981 is also true for gas deregulation in 1989. Experience shows that deregulation works to serve consumers and an expanding economy. It is a tribute to the American political system that, after decades of disagreement over the merits of gas decontrol, we can gather here today to state a clear message for all to hear: We have learned from the past. We are united in the conviction that the best way to deal with our energy problems and serve the American people is to let our market economy work. And so today's legislation represents the bipartisan attainment of the Administration's first major energy initiative -- the elimination of an entire system of artificial price controls for one of America's cleanest energy resources. This measure reflects a strong bipartisan belief that eliminating price controls will help this nation take full advantage of our plentiful domestic resources. Even at today's prices -- it is estimated that the United States has natural gas reserves that will take us to the year 2025 and beyond. Industry and the Department of Energy are responding to this opportunity with imagination -- seeking to tap new sources of clean-burning natural gas and developing new uses -- like powering cars and buses. With prices set by market forces, and improvements in gas exploration production technologies, natural gas can help power this nation well into the next century. It may be said by some that this legislation could only have happened when energy prices are relatively low. Not true. 3 Legislation like this -- relying on market incentives to produce domestic energy -- can help keep prices low. It is the best way to assure consumers of adequate and reliable supplies of clean energy at the lowest reasonable price. And this is not just economical legislation -- it is environmental legislation. Natural gas burns much more cleanly than other fossil fuels -- and produces little air or water pollution. And it can play a larger role in our efforts to clean up our air and water. The environmental opportunities can be global. With a free market for this fuel, we can foresee America and the world using more of it. America and her allies must work together now to expand the infrastructure to use this fuel. On this continent -- across the Atlantic -- across the Pacific -- these are opportunities for cooperation that can be helped by a freer market. Where we can add diversity, flexibility, economy, and security to the world's energy picture -- we should do it. And natural gas is an important element. But despite today's good news, this is no time for complacency. Our energy security problem continues. Conservation achievements are levelling off. Domestic oil production is continuing its downward trend. Petroleum imports are increasing. And our need for a cleaner environment is obvious to all. 4 And so today I have another announcement -- which, like the deregulation of natural gas -- is good news for America's energy future. I am directing the Secretary of Energy to take the lead in developing a comprehensive National Energy strategy. We cannot and will not wait for the next energy crisis to force us to respond. I have asked Admiral Watkins to craft this strategy in close consultation with the Cabinet and the Congress, with our cities and our states. Our task -- our bi-partisan task -- is to build the national consensus necessary to support this strategy. And to make the strategy a living and dynamic document, responsive to new knowledge and new ideas, and to global, environmental and international changes. A keystone of this strategy will be the continuation of the successful policy of market reliance. This task will not be easy. America must balance: Our increasing need for energy at reasonable prices. Our commitment to a safer, healthier environment. Our determination to maintain an economy that is second to none. And our goal to reduce dependence, by ourselves and our friends and allies on unreliable energy suppliers. I am confident that America's can-do attitude, scientific know-how, and old-fashioned common sense will prevail. By acting now -- we can bequeath a legacy to the next century of a cleaner, more prosperous and secure America. 5 Today's legislation is a good start down that path. Domestically, natural gas can now reach its fullest potential as an economic, clean and convenient energy source. I congratulate those of you in Congress who have worked so hard and so long to bring this legislation to my desk. And with that -- it is with great pride that I now sign the Natural Gas Wellhead Decontrol Act into law. # # # FICE REMARKS: NATURAL GAS BILL SIGNING CEREMONY THE EAST ROOM WEDNESDAY, JULY 26, 1989, 2:05 P.M. THANK YOU. THANKS ALL OF YOU. AND THANKS ALSO TO MY FRIEND JIM WATKINS, WHO IS OFF TO SUCH AN OUTSTANDING START AT ENERGY. To MARTHA HESSE [[HESS-SEE]], FOR HER GOOD EFFORTS AT THE FEDERAL ENERGY REGULATORY COMMISSION. - 2 - AND TO THE FORWARD-LOOKING LEADERS FROM BOTH SIDES OF THE AISLE -- LEADERS LIKE MY FRIENDS JIM MCCLURE AND BENNETT JOHNSTON, NORM LENT AND JOHN DINGELL, PHIL SHARP AND CARLOS MOORHEAD -- AND MANY OTHER LEADERS HERE TODAY WHOSE COMMITMENT TO SAFEGUARDING AMERICA'S ENERGY AND ENVIRONMENT HAVE MADE THIS LANDMARK LEGISLATION POSSIBLE. - 3 - NATURAL GAS -- METHANE -- IS ONE OF THE BEST FUELS ON THE WORLD'S ENERGY MENU. IT IS CLEAN. IT IS EFFICIENT. IT IS ABUNDANT. BUT FOR 35 YEARS, CONSUMERS AND PRODUCERS OF NATURAL GAS HAVE STRUGGLED UNDER THE BURDEN OF OPPRESSIVE PRICE REGULATIONS. THIS WAS DIRECTLY RESPONSIBLE FOR THE DAMAGING NATURAL GAS SHORTAGES OF THE 1970's -- AND FOR GAS MARKET DISTORTIONS THAT EXIST TO THIS DAY. - 4 - IT IS INSTRUCTIVE TO LOOK AT WHAT NATURAL GAS PRICE CONTROLS BROUGHT US. THEY BROUGHT US SHORTAGES -- NOT INCREASED SUPPLIES. THEY BROUGHT US HIGHER GAS PRICES -- NOT THE LOWER CONSUMER PRICES THEIR SUPPORTERS PROMISED. WHAT WAS TRUE FOR OIL DEREGULATION IN 1981 IS ALSO TRUE FOR GAS DEREGULATION IN 1989. EXPERIENCE SHOWS THAT DEREGULATION WORKS TO SERVE CONSUMERS AND AN EXPANDING ECONOMY. - 5 - IT IS A TRIBUTE TO THE AMERICAN POLITICAL SYSTEM THAT, AFTER DECADES OF DISAGREEMENT OVER THE MERITS OF GAS DECONTROL, WE CAN GATHER HERE TODAY TO STATE A CLEAR MESSAGE FOR ALL TO HEAR: WE HAVE LEARNED FROM THE PAST. WE ARE UNITED IN THE CONVICTION THAT THE BEST WAY TO DEAL WITH OUR ENERGY PROBLEMS AND SERVE THE AMERICAN PEOPLE IS TO LET OUR MARKET ECONOMY WORK. - 6 - AND so TODAY'S LEGISLATION REPRESENTS THE BIPARTISAN ATTAINMENT OF THE ADMINISTRATION'S FIRST MAJOR ENERGY INITIATIVE -- THE ELIMINATION OF AN ENTIRE SYSTEM OF ARTIFICIAL PRICE CONTROLS FOR ONE OF AMERICA'S CLEANEST ENERGY RESOURCES. THIS MEASURE REFLECTS A STRONG BIPARTISAN BELIEF THAT ELIMINATING PRICE CONTROLS WILL HELP THIS NATION TAKE FULL ADVANTAGE OF OUR PLENTIFUL DOMESTIC RESOURCES. - 7 - EVEN AT TODAY'S PRICES -- IT IS ESTIMATED THAT THE UNITED STATES HAS NATURAL GAS RESERVES THAT WILL TAKE US TO THE YEAR 2025 AND BEYOND. INDUSTRY AND THE DEPARTMENT OF ENERGY ARE RESPONDING TO THIS OPPORTUNITY WITH IMAGINATION -- SEEKING TO TAP NEW SOURCES OF CLEAN-BURNING NATURAL GAS AND DEVELOPING NEW USES -- LIKE POWERING CARS AND BUSES. - 8 - WITH PRICES SET BY MARKET FORCES, AND IMPROVEMENTS IN GAS EXPLORATION PRODUCTION TECHNOLOGIES, NATURAL GAS CAN HELP POWER THIS NATION WELL INTO THE NEXT CENTURY. IT MAY BE SAID BY SOME THAT THIS LEGISLATION COULD ONLY HAVE HAPPENED WHEN ENERGY PRICES ARE RELATIVELY LOW. NOT TRUE. LEGISLATION LIKE THIS -- RELYING ON MARKET INCENTIVES TO PRODUCE DOMESTIC ENERGY -- CAN HELP KEEP PRICES LOW. - 9 - IT IS THE BEST WAY TO ASSURE CONSUMERS OF ADEQUATE AND RELIABLE SUPPLIES OF CLEAN ENERGY AT THE LOWEST REASONABLE PRICE. AND THIS IS NOT JUST ECONOMICAL LEGISLATION -- IT IS ENVIRONMENTAL LEGISLATION. NATURAL GAS BURNS MUCH MORE CLEANLY THAN OTHER FOSSIL FUELS -- AND PRODUCES LITTLE AIR OR WATER POLLUTION. AND IT CAN PLAY A LARGER ROLE IN OUR EFFORTS TO CLEAN UP OUR AIR AND WATER. - 10 - THE ENVIRONMENTAL OPPORTUNITIES CAN BE GLOBAL. WITH A FREE MARKET FOR THIS FUEL, WE CAN FORESEE AMERICA AND THE WORLD USING MORE OF IT. AMERICA AND HER ALLIES MUST WORK TOGETHER NOW TO EXPAND THE INFRASTRUCTURE TO USE THIS FUEL. ON THIS CONTINENT -- ACROSS THE ATLANTIC -- ACROSS THE PACIFIC -- THESE ARE OPPORTUNITIES FOR COOPERATION THAT CAN BE HELPED BY A FREER MARKET. - 11 - WHERE WE CAN ADD DIVERSITY, FLEXIBILITY, ECONOMY, AND SECURITY TO THE WORLD'S ENERGY PICTURE -- WE SHOULD DO IT. AND NATURAL GAS IS AN IMPORTANT ELEMENT. BUT DESPITE TODAY'S GOOD NEWS, THIS IS NO TIME FOR COMPLACENCY. OUR ENERGY SECURITY PROBLEM CONTINUES. CONSERVATION ACHIEVEMENTS ARE LEVELLING OFF. DOMESTIC OIL PRODUCTION IS CONTINUING ITS DOWNWARD TREND. PETROLEUM IMPORTS ARE INCREASING. AND OUR NEED FOR A CLEANER ENVIRONMENT IS OBVIOUS TO ALL. - 12 - AND so TODAY I HAVE ANOTHER ANNOUNCEMENT -- WHICH, LIKE THE DEREGULATION OF NATURAL GAS -- IS GOOD NEWS FOR AMERICA'S ENERGY FUTURE. I AM DIRECTING THE SECRETARY OF ENERGY TO TAKE THE LEAD IN DEVELOPING A COMPREHENSIVE NATIONAL ENERGY STRATEGY. WE CANNOT AND WILL NOT WAIT FOR THE NEXT ENERGY CRISIS TO FORCE US TO RESPOND. - 13 - I HAVE ASKED ADMIRAL WATKINS TO CRAFT THIS STRATEGY IN CLOSE CONSULTATION WITH THE CABINET AND THE CONGRESS, WITH OUR CITIES AND OUR STATES. OUR TASK -- OUR BI- PARTISAN TASK -- IS TO BUILD THE NATIONAL CONSENSUS NECESSARY TO SUPPORT THIS STRATEGY. AND TO MAKE THE STRATEGY A LIVING AND DYNAMIC DOCUMENT, RESPONSIVE TO NEW KNOWLEDGE AND NEW IDEAS, AND TO GLOBAL, ENVIRONMENTAL AND INTERNATIONAL CHANGES. - 14 - A KEYSTONE OF THIS STRATEGY WILL BE THE CONTINUATION OF THE SUCCESSFUL POLICY OF MARKET RELIANCE. THIS TASK WILL NOT BE EASY. AMERICA MUST BALANCE: OUR INCREASING NEED FOR ENERGY AT REASONABLE PRICES. OUR COMMITMENT TO A SAFER, HEALTHIER ENVIRONMENT. OUR DETERMINATION TO MAINTAIN AN ECONOMY THAT IS SECOND TO NONE. AND OUR GOAL TO REDUCE DEPENDENCE, BY OURSELVES AND OUR FRIENDS AND ALLIES, ON POTENTIALLY UNRELIABLE ENERGY SUPPLIERS. - 15 - ONE IMPORTANT STEP TOWARDS PROTECTING AMERICA FROM FOREIGN ENERGY SUPPLY INTERRUPTIONS IS TO PROVIDE MORE INCENTIVES FOR DRILLING RIGHT HERE AT HOME. THOUGH IT IS UNLIKELY CONGRESS WILL ACT THIS YEAR -- I WILL CONTINUE TO WORK TO PUT MORE INCENTIVE INTO THE TAX CODE FOR DOMESTIC WILDCAT DRILLING. THE BOTTOM LINE IS: A STRONG DOMESTIC DRILLING AND PRODUCING BUSINESS IS ESSENTIAL TO OUR NATIONAL SECURITY. - 16 - I AM CONFIDENT THAT AMERICA'S CAN-DO ATTITUDE, SCIENTIFIC KNOW-HOW, AND OLD-FASHIONED COMMON SENSE WILL PREVAIL. BY ACTING NOW -- WE CAN BEQUEATH A LEGACY TO THE NEXT CENTURY OF A CLEANER, MORE PROSPEROUS AND SECURE AMERICA. TODAY'S LEGISLATION IS A GOOD START DOWN THAT PATH. DOMESTICALLY, NATURAL GAS CAN NOW REACH ITS FULLEST POTENTIAL AS AN ECONOMIC, CLEAN AND CONVENIENT ENERGY SOURCE. - 17 - I CONGRATULATE THOSE OF YOU IN CONGRESS WHO HAVE WORKED SO HARD AND so LONG TO BRING THIS LEGISLATION TO MY DESK. AND WITH THAT -- IT IS WITH GREAT PRIDE THAT I NOW SIGN THE NATURAL GAS WELLHEAD DECONTROL ACT INTO LAW. # # # Document No. 056096 WHITE HOUSE STAFFING MEMORANDUM 07/21/89 DATE: ACTION/CONCURRENCE/COMMENT DUE BY: 2:00 p.m. Monday 07/24 SUBJECT: PRESIDENTIAL REMARKS: NATURAL GAS BILL SIGNING CEREMONY (07/21 5:00 p.m. draft four) ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER P DARMAN STUDDERT BATES UNTERMEYER BREEDEN ROGERS R CARD PINKERTON P CICCONI WINSTON DEMAREST FITZWATER GRAY HAGIN REMARKS: Please provide any comments/recommendations directly to Chriss Winston Thanks. by 2:00 p.m. on Monday, 07/24, with a copy to my office. JU P2:58 P2: RESPONSE: - Energy- 9ay Stone- 586-5500. See Comments James W. Cicconi Assistant to the President and Deputy to the Chief of Staff Ext. 2702 (McNally/Simon) 1989 JUL 2 July 721, 1989, 5:00 p.m. Draft Four (GAS) PRESIDENTIAL REMARKS: NATURAL GAS BILL SIGNING CEREMONY THE EAST ROOM WEDNESDAY, JULY 26, 1989, 2:05 P.M. Thank you. Thanks all of you. And thanks also to my triend should Jim Watkins, who 1S ott to such an outstanding start at Energy. Cong. Phil Shoup To Martha Hesse [ [hess-SEE] ], for her good efforts at FERC. And to the forward-looking leaders from both sides of the aisle -- leaders like [ [my triends Jim McClure and Bennett Johnston, Norm Ph.7 Sharp. Lent and John Dingell] -- leaders whose commitment to safeguarding America's energy and environment have made this landmark legislation possible. Natural gas -- methane -- is one of the best ruels on the world's energy menu. It 1S clean. It is efficient. It is abundant. But for 35 years, consumers and producers of natural gas nave struggled under a bureaucracy of oppressive price regulations. This was largely responsible for the damaging natural gas shortages or the 1970's -- and for gas market distortions that exist to this day. And so today's legislation represents the bıpartisan attainment of the Administration's first major energy initiative -- the elimination of an entire system of artificial price controis for one of America's cleanest energy resources. It ends on January 1, 1993 -- starting us on a path to a more stable energy future. 2 This measure reflects a strong bipartisan belief that eliminating price controls will help this nation take full advantage of our plentiful doméstic resources. Even at today's May open prices It is estimated that the United States has natural gas debate reserves that will take us to the year 2025 and beyond And industry and the Department of Energy are responding to this opportunity with imagination -- seeking to tap new sources redfla of clean-burning natural gas 1A places like Prudhoe Bay, and intention developing new uses -- like powering cars and airplanes Busseo With ? prices set by market forces, and improvements in gas production from unconventional sources, natural gas can help power this nation for decades to come. It may be said by some that this legislation could only have happened when energy prices are relatively low. I disagree. Legislation like this -- creating new incentives to produce domestic energy -- can help keep prices low. It will help consumers receive an adequate and reliable supply of clean energy at the lowest reasonable price. And this is not just economical legislation -- it is environmental legisiation. Gas burns much more cleanly than other fossil fuels -- and produces little air or water pollution. And it can play a larger role in our efforts to clean up our air and water. import alot The environmental opportunities can be global. By exporting plentiful, clean-burning American natural gas -- we can nelp both about our nation's economy and the world's environment. For example, 3 at the recent economic summit we were encouraged by Japan's new interest in clean energy sources. Today's legisiation means that, ultimately, new U.S. sources of clean natural gas will be available to Japanese and other international markets -- and at market prices. With a free market for this fuel, we can foresee America and the world using more of it. America and her allies must work together now to expand the infrastructure to use this fuel. On this continent -- across the Atlantic -- across the Pacific -- these are opportunities for cooperation that can be helped by a freer market. Where we can add diversity, riexibility, and security to the world's energy picture -- we should do it. And natural gas is an important element. But despite today's good news, this is no time for complacency. On other fronts, conservation achievements are levelling off. Domestic oil production is down. Petroleum imports are increasing. And our need for a cleaner environment is obvious to all. And so today 1 have another announcement -- which, like the deregulation of natural gas -- means good news for America's energy future. 1 am directing the Secretary of Energy to take the lead in developing a comprehensive National Energy Strategy -- the first such plan in the history of our Nation. 4 We cannot and will not wait for the next energy crisis -- or even the next smog alert -- to force us to respond. Today we don't have a crisis. We have an opportunity. I have asked Admiral watkins to craft this strategy in close through the Economic Policy Council, consultation with the Cabinet and the Congress, with our cities and our states. Our task -- our bi-partisan task -- 1S to build the national consensus necessary to support this strategy. And to make the strategy a living and dynamic document, responsive to including the potential for new knowledge and new ideas, and changes in global climate. change. This task Will not be easy. America must balance: Our increasing need for energy at reasonable prices; Our commitment to a safer, nealthier environment; Our obligation to maintain an economy that is second to none; And our goal to reduce reliance on insecure energy supplies. 1 am confident that America's can-do attitude, scientific know-now, and old-fashioned common sense will prevail. By acting now -- we can bequeath a legacy to the next century of a cleaner, more prosperous and secure America. Today's legislation is a good start down that path. Domestically, natural gas can now reach its fullest potential as a competitive alternative to imports of oil from unreliable sources. I congratulate those of you in Congress who have worked so hard and so long to bring this legislation to my desk. And with that -- it is with great pride that I now sign the Natural Gas Wellhead Decontrol Act into law. # # # Document No. 056096 WHITE HOUSE STAFFING MEMORANDUM DATE: 07/21/89 89 JUL 24 A7:55 2:00 p.m. Monday 07/24 ACTION/CONCURRENCE/COMMENT DUE BY: SUBJECT: PRESIDENTIAL REMARKS: NATURAL GAS BILL SIGNING CEREMONY 2:55 (07/21 5:00 p.m. draft four) ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER Roger hasthem DARMAN STUDDERT BATES walking over UNTERMEYER BREEDEN ROGERS CARD PINKERTON N/C phone WINSTON CICCONI DEMAREST FITZWATER GRAY N/C phone HAGIN REMARKS: Please provide any comments/recommendations directly to Chriss Winston by 2:00 p.m. on Monday, 07/24, with a copy to my office. Thanks. RESPONSE: James W. Cicconi Assistant to the President and Deputy to the Chief of Staff Ext. 2702 (McNally/Simon) 1989 JUL 2 July 721, 1989, 5:00 p.m. Draft Four (GAS) PRESIDENTIAL REMARKS: NATURAL GAS BILL SIGNING CEREMONY THE EAST ROOM WEDNESDAY, JULY 26, 1989, 2:05 P.M. Thank you. Thanks all of you. And thanks also to my triend Jim Watkins, who 1S ott to such an outstanding start at Energy. To Martha Hesse [ [hess-SEE] 1, tor her good efforts at FERC. And to the forward-looking leaders from both sides of the aisle -- leaders like [ [my triends Jim McClure and Bennett Johnston, Norm $1 check Phil Sharp and Can Los moorhead here today Lent , and John Dingell] ] -- leaders whose commitment to stet Stet and many other safeguarding America's energy and environment have made this landmark legislation possible. Natural gas -- methane -- is one of the best fuels on the world's energy menu. It 1S clean. It is efficient. It is abundant. But for 35 years, consumers and producers of natural gas the hurden have struggled under a bureaucracy of oppressive price regulations. This was iargely duectly responsible for the damaging natural gas shortages or the 1970's -- and for gas market msert distortions that exist to this day. A And so today's legislation represents the bıpartisan attainment of the Administration's first major energy initiative -- the elimination of an entire system of artificial price controls for one of America's cleanest energy resources. It ends on January 1, 1993 starting us on a path to a more stable energy future. 2 This measure reflects a strong bipartisan beliet that eliminating price controls will help this nation take full advantage of our plentiful domestic resources. Even at today's prices -- it is estimated that the United States has natural gas reserves that will take us to the year 2025 and beyond. And industry and the Department of Energy are responding to this opportunity with imagination -- seeking to tap new sources of clean-burning natural gas in places like Prudhoe Bay, and buses developing new uses -- like powering cars and airplanes. With exploration prices set by market forces, and improvements in gas production technologies from unconventional sources, natural gas can help power this well into the next entury. nation for decades to come. It may be said by some that this legislation could only have NOT true. happened when energy prices are relatively low. I disagree. relying on market Legislation like this -- creating new incentives to produce is the bestway to assume domestic energy -- can help keep prices low. It will help of ies consumers receive an adequate and reliable supply of clean energy at the lowest reasonable price. And this is not just economical legislation -- it is Natural environmental legisiation. Gas burns much more cleanly than other fossil tuels -- and produces little air or water pollution. And it can play a larger role in our efforts to clean up our air and water. The environmental opportunities can be global. By exporting plentitul, clean-burning American natural gas -- we can nelp both our nation's economy and the world's environment. For example, 3 at the recent economic summit we were encouraged by Japan's new interest in clean energy sources. Today's legisiation means such as NORTH Slope gas could that, ultimately, new U.S. sources of clean natural gas will be available to Japanese and other international markets -- and at market prices. With a free market for this fuel, we can foresee America and the world using more of it. America and her allies must work together now to expand the infrastructure to use this fuel. On this continent -- across the Atlantic -- across the Pacific -- these are opportunities for cooperation that can be helped by a freer market. (econnul Where we can add diversity, riexibility, and security to the world's energy picture -- we should do it. And natural gas is an important element. But despite today's good news, this is no time for Our energes security problem con denues. complacency. On other fronts, conservation achievements are continuing its downword trend. levelling ott. Domestic oil production is down. Petroleum imports are increasing. And our need for a cleaner environment is obvious to all. And so today 1 have another announcement -- which, like the is deregulation of natural gas -- means good news for America's energy future. 1 am directing the Secretary of Energy to take the lead in clean developing a comprehensive National Energy Strategy the first such plan in the history of our Nation. 4 We cannot and will not wait for the next energy crisis or state even the next smog alert to force us to respond. Today we don't have a crisis. We have an opportunity I have asked Admiral watkins to craft this strategy in close consultation with the Cabinet and the Congress, with our cities and our states. Our task -- our bi-partisan task -- 1S to build the national consensus necessary to support this strategy. And to make the strategy a living and dynamic document, responsive to and to global, environmental and international changes. A keeptone of this strategy new knowledge and new ideas, and changes in global climate. will be the contenuation of the success Ful policy OR morket reliance. This task WILL not be easy. America must balance: Our increasing need for energy at reasonable prices. Our commitment determination to a safer, nealthier environment. Our obligation to maintain an economy that is second to none. And our goal to reduce reliance dependence, by ourselves on insecure energy supplies. rs unrepable and our frends and allies 1 am confident that America's can-do attitude, scientific know-now, and old-fashioned common sense will prevail. By acting now -- we can bequeath a legacy to the next century of a cleaner, more prosperous and secure America. Today's legislation is a good start down that path. Domestically, natural gas can now reach its fullest potential as an economic, clear and convenuent energy source. and a competitive alternative to imports of oil from unreliable sources. I congratulate those of you in Congress who have worked so hard and so long to bring this legislation to my desk. And with that -- it is with great pride that I now sign the Natural Gas Wellhead Decontrol Act into law. # # # Document No. 056096 5767 WHITE HOUSE STAFFING MEMORANDUM 07/21/89 DATE: ACTION/CONCURRENCE/COMMENT DUE BY: 2:00 p.m. Monday 07/24 SUBJECT: PRESIDENTIAL REMARKS: NATURAL GAS BILL SIGNING CEREMONY (07/21 5:00 p.m. draft four) ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFF PORTER P DARMAN STUDDERT BATES UNTERMEYER BREEDEN ROGERS CARD PINKERTON P CICCONI WINSTON DEMAREST FITZWATER GRAY HAGIN REMARKS: Please provide any comments/recommendations directly to Chriss Winston Thanks. by 2:00 p.m. on Monday, 07/24, with a copy to my office. 89 JUL 25 RESPONSE: MEMORANDUM FOR CHRISS WINSTON July 24, 1989 The NSC staff recommends the suggested changes as noted throughout the text. 07 B James W. Cicconi Brent Scowcroft Assistant to the President and Deputy to the Chief of Staff Ext. 2702 CC: James W. Cicconi (McNally/Simon) 1989 JUL 2 July 721, 1989, 5:00 p.m. Draft Four (GAS) PRESIDENTIAL REMARKS: NATURAL GAS BILL SIGNING CEREMONY THE EAST ROOM WEDNESDAY, JULY 26, 1989, 2:05 P.M. Thank you. Thanks all of you. And thanks also to my triend Jim Watkins, who 1S ott to such an outstanding start at Energy. To Martha Hesse [ [hess-SEE] for her good efforts at FERC. And to the forward-looking leaders from both sides of the aisle -- leaders like [ [my triends Jim McClure and Bennett Johnston, Norm Lent and John Dingell] ] --- leaders whose commitment to safeguarding America's energy and environment have made this landmark legislation possible. foorld's Natural gas -- methane -- is one of the best tuels on the there world's energy menu. It 1S clean. It is efficient. It is are abundant secure supplies. But for 35 years, consumers and producers of natural gas have struggled under a bureaucracy of oppressive price regulations. This was largely responsible for the damaging natural gas shortages or the 1970's -- and for gas market distortions that exist to this day. And so today's legislation represents the bıpartisan attainment of the Administration's first major energy initiative -- the elimination of an entire system of artificial price controls for one of America's cleanest energy resources. It ends on January 1, 1993 -- starting us on a path to a more stable energy future. 2 This measure reflects a strong bipartisan belief that eliminating price controls will help this nation take full advantage of our plentiful domestic resources. Even at today's prices -- it is estimated that the United States has natural gas reserves that will take us to the year 2025 and beyond. And industry and the Department of Energy are responding to this opportunity with imagination -- seeking to tap new sources of clean-burning natural gas in places like Prudhoe Bay, and developing new uses -- like powering cars and airplanes. With prices set by market forces, and improvements in gas production from unconventional sources, natural gas can help power this nation for decades to come. It may be said by some that this legislation could only have happened when energy prices are relatively low. I disagree. Legislation like this -- creating new incentives to produce domestic energy -- can help keep prices low. It will help consumers receive an adequate and reliable supply of clean energy at the lowest reasonable price. And this is not just economical legislation -- it is environmental legisiation. Gas burns much more cleanly than other fossil tuels -- and produces little air or water pollution. And it can play a larger role in our efforts to clean up our air and water. The environmental opportunities can be global. By exporting plentitul, clean-burning American natural gas -- we can nelp both our nation's economy and the world's environment. For example, comment: incorect Summit reference no need to cite Japan 3 at the recent economic summit we were encouraged by Japan's new interest in clean energy sources. Today's legisiation means additional that, ultimately, new U.S. sources of clean natural gas will be foreign available to Japanese and other international markets and at Competitive market prices. With a free market for this fuel, we can foresee America and the world using more of it. America and her allies must work together now to expand the infrastructure to use this fuel. On this continent -- across the Atlantic -- across the Pacific -- these are opportunities for cooperation that can be helped by a freer market. Where we can add diversity, riexibility, and security to the world's energy picture -- we should do it. And natural gas is an important element. But despite today's good news, this is no time for complacency. On other fronts, conservation achievements are levelling ott. Domestic oil production is down. Petroleum imports are increasing. And our need for a cleaner environment is obvious to all. And so today 1 have another announcement -- which, like the deregulation of natural gas -- means good news for America's energy future. after 1 am directing the Secretary of Energy to take the lead in carteo) developing a comprehensive National Energy Strategy -- the first such plan in the history of our Nation. something what about FEA in 73/74? 4 We cannot and will not wait for the next energy crisis -- or even the next smog alert -- to force us to respond. Today we don't have a crisis. We have an opportunity. I have asked Admiral watkins to craft this strategy in close consultation with the Cabinet and the Congress, with our cities and our states. Our task -- our bi-partisan task -- 1S to build the national consensus necessary to support this strategy. And to make the strategy a living and dynamıc document, responsive to new knowledge and new ideas, and changes in global climate. This task Will not be easy. America must balance: Our increasing need for energy at reasonable prices. Our commitment to a safer, nealthier environment. Our obligation to maintain an economy that is second to none. And our goal to reduce reliance on insecure energy supplies. 1 am confident that America's can-do attitude, scientific know-now, and old-fashioned common sense will prevail. By acting now -- we can bequeath a legacy to the next century of a cleaner, more prosperous and secure America. Today's legislation is a good start down that path. Domestically, natural gas can now reach its fullest potential as potentially a competitive alternative to imports of oil from unreliable sources. I congratulate those of you in Congress who have worked so hard and so long to bring this legislation to my desk. And with that -- it is with great pride that I now sign the Natural Gas Wellhead Decontrol Act into law. # # # STATE SECURITIVE BUDGET UNITED - OFFICE THE EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 NOTICE: Enclosed are comments from staff members of the Office of Management and Budget (OMB). Such comments do not necessarily represent the official position of the Director of OMB or of the Office of Management and Budget. If you wish to have the Director's personal comments, please let me know -- and contact me if you have any questions. David J. Haun Executive Assistant to the Director 89 JUL 24 P4: 56 Document No. 156076 WHITE HOUSE STAFFING MEMORANDUM 07/21/89 DATE: 2:00 p.m. Monday 07/24 ACTION/CONCURRENCE/COMMENT DUE BY: SUBJECT: PRESIDENTIAL REMARKS: NATURAL GAS BILL SIGNING CEREMONY (07/21 5:00 p.m. draft four) ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN STUDDERT BATES UNTERMEYER BREEDEN ROGERS CARD PINKERTON WINSTON CICCONI DEMAREST FITZWATER GRAY HAGIN REMARKS: Please provide any comments/recommendations directly to Chriss Winston by 2:00 p.m. on Monday, 07/24, with a copy to my office. Thanks. RESPONSE: James W. Cicconi Assistant to the President and Deputy to the Chief of Staff Ext. 2702 (McNally/Simon) 1983 JUL 2 July 721, 1989, 5:00 p.m. Draft Four (GAS) PRESIDENTIAL REMARKS: NATURAL GAS BILL SIGNING CEREMONY THE EAST ROOM WEDNESDAY, JULY 26, 1989, 2:05 P.M. Thank you. Thanks all of you. And thanks also to my triend Jim Watkins, who 1S ott to such an outstanding start at Energy. To Martha Hesse [hess-SEE] for her good efforts at FERC. And to the forward-looking leaders from both sides of the aisle -- leaders like [ [my triends Jim McClure and Bennett Johnston, Norm Lent and John Dingell] ] -- leaders whose commitment to safeguarding America's energy and environment have made this landmark legislation possible. Natural gas -- methane -- is one of the best tuels on the world's energy menu. It 1S clean. It is efficient. It is abundant. But for 35 years, consumers and producers of natural gas nave struggled under a bureaucracy of oppressive price directly regulations. This was largely responsible for the damaging Gody X 4844 natural gas shortages or the 1970's -- and for gas market distortions that exist to this day [INSERT NEXT PAGE (2 PARAGRAPHS) HERE ] Goody And so today's legislation represents the bipartisan x4844 attainment of the Administration's first major energy initiative --- the elimination of an entire system of artificial price controls for one of America's cleanest energy resources. It ends on January 1, 1993 -- starting us on a path to a more stable energy future. Andy realistic and efficient 4844 x Natural gas bill signing statement OMB mark-up Insert on page. 1 after the third paragraph It is instructive to look at what natural gas price controls brought us. They brought us shortages -- not increased supplies. They brought us higher gas prices -- not the lower consumer prices their supporters promised. I am reminded of an editorial in the Washington Post after President Reagan accelerated decontrol of the petroleum market. It was titled "Decontrol At Last. " It went on to say that "controls have brought us nothing but harm, and the end of them will bring us nothing but benefit." What was true for oil deregulation in 1981 is also true for gas deregulation in 1989. Experience shows that deregulation works to serve consumers and an expanding economy. It is a tribute to the American political system that, after decades of disagreement over the merits of gas decontrol, we can gather here today to state a clear message for all to hear: We have learned from the past. We are united in the conviction that markets work to serve the American people. They can deal effectively to banish scarcity and to produce abundance. The best way to deal with our energy problems is to let our market economy worky to serve andsevoe the american people Ins-evt X 2 This measure reflects a strong bipartisan belief that eliminating price controls will help this nation take full advantage of our plentiful domestic resources. Even at today's prices -- it is estimated that the United States has natural gas reserves that WILL take us to the year 2025 and beyond. is And industry End the Department of Energy are responding to this opportunity with imagination -- seeking to tap new sources X4844 of clean-burning natural gas En places like Prudhoe Bay] and developing new uses -- like powering cars and airplanes. With Exploration and prices set by market forces, and improvements in gas production From unconventional technologies source}, natural gas can help power this nation [or decades to comd. well into the next century It may be said by some that this legislation could only have happened when energy prices are relatively low. I disagree. relying on MARKET Legislation like this -- Creating ^new] incentives to produce Grady x 4844 domestic energy can help keep prices low. It Vill is the neig best way to assure of supplies consumers receive an adequate and reliable Cupply of clean energy Grody at the lowest reasonable price. x4844 And this is not just economical legislation -- it is good ^ for the Grady environmental legisiation. Gas burns much more cleanly than Grady V4844 x4844 other fossil fuels - and produces little air or water pollution. And it can play a larger role in our efforts to clean up our air and water. The environmental opportunities can be global. [BY exporting plentirul, clean-burning American natural gas we can nelp both our nation's economy and the world's environment. For example, CA possibility, but remote. Suggest you drop this.] such as Slope North could Grody 3 x 4844 at the recent economic summit we were encouraged by Japan's new interest in clean energy sources. Today's legisiation means that, ultimately, new U.S. sources of clean natural gas Gill be available to Japanese and other international markets -- and at market prices. With a free market for this fuel, we can foresee America and the world using more of it. America and her allies must work together now to expand the infrastructure to use this fuel. On this continent -- across the Atlantic -- across the Pacific -- these are opportunities for cooperation that can be helpea by a freer market. economy, Graday Where we can add diversity, flexibility, Aand security to the x4844 world's energy picture -- we should do it. Ana natural gas is an important element. But despite today's good news, this is no time for Our energy security problem contenues complacency. On other fronts, conservation achievements are levelling off. Domestic oil production is down Petroleum imports are increasing. And our need for a cleaner environment is obvious to all. And so today 1 have another announcement; E which, like the deregulation of natural gas means good news for America S energy future 1 am directing the Secretary of Energy to take the lead in sandy x4844 X developing a comprehensive National Energy Strategy. the first such plan in the history of our Nation] [not true!] Although there is an excess of oil-producing capacity in the sondy XU8H4 world, U.S. oil production is continuing its downward trend. 6996 4 Arady x4844 We cannot and will not wait for the next energy crisis E or even the next smog alert to force us to respond. Today we don't have a crisis. We have an opportunity. I have asked Admiral watkins to craft this strategy in close consultation with the Cabinet and the Congress, with our cities and our states. Our task -- our bi-partisan task - - 1S to build Gradu X4844 the national consensus necessary to support this strategy. And to make the strategy a living and dynamıc document, responsive to and to global 1 new knowledge and new ideas, End changes in global climate environmental This task Will not be easy. America must balance: Our and international increasing need for energy at reasonable prices. Our commitment changes. A Keystone of to a safer, nealthier environment. Our obligation to maintain an the strat economy that is second to none. And our goal to reduce reliance will continuation be the on insecure energy supplies. of the United States and our friends and allies shady of the success- of 1 am confident that America's can-do attitude, scientific x4844 ful policy know-now, and old-fashioned common sense will prevail. By acting market re- now -- we can bequeath a legacy to the next century of a cleaner, liance. more prosperous and secure America. Today's legislation is a good start down that path. Day Domestically, natural gas can now reach its fullest potential as, x4844 Can economic, clean, and convenient energy source. a competitive aiternative to imports Other of oil from unreliable sources I congratulate those of you in Congress who have worked SO hard and so long to bring this legislation to my desk. And with that -- it is with great pride that I now sign the Natural Gas Wellhead Decontrol Act into law. # # # Document No. 056096 WHITE HOUSE STAFFING MEMORANDUM 07/21/89 2:00 p.m. Monday 07/24 DATE: ACTION/CONCURRENCE/COMMENT DUE BY: SUBJECT: PRESIDENTIAL REMARKS: NATURAL GAS BILL SIGNING CEREMONY (07/21 5:00 p.m. draft four) ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER 9 DARMAN STUDDERT BATES UNTERMEYER BREEDEN ROGERS PINKERTON CARD P WINSTON CICCONI DEMAREST FITZWATER GRAY HAGIN REMARKS: Please provide any comments/recommendations directly to Chriss Winston by 2:00 p.m. on Monday, 07/24, with a copy to my office. Thanks. All comments RESPONSE: 0 E : Olv 2 7nr 68 James W. Cicconi Assistant to the President and Deputy to the Chief of Staff Ext. 2702 (McNally/Simon) 1989 JUL 2 July 721, 1989, 5:00 p.m. Draft Four (GAS) PRESIDENTIAL REMARKS: NATURAL GAS BILL SIGNING CEREMONY THE EAST ROOM WEDNESDAY, JULY 26, 1989, 2:05 P.M. Thank you. Thanks all of you. And thanks also to my triend Jim Watkins, who 1S ott to such an outstanding start at Energy. To Martha Hesse [ [hess-SEE]], for her good efforts at FERC. And to the forward-looking leaders from both sides of the aisle -- leaders like [ [my triends Jim McClure and Bennett Johnston, Norm Lent and John Dingell] ] -- leaders whose commitment to safeguarding America's energy and environment have made this landmark legislation possible. Natural gas -- methane -- is one of the best tuels on the world's energy menu. It 1S clean. It is efficient. It is abundant. But for 35 years, consumers and producers of natural gas have struggled under a bureaucracy of oppressive price regulations. This was largely responsible for the damaging natural gas shortages or the 1970's -- and for gas market distortions that exist to this day. And so today's legislation represents the bipartisan attainment of the Administration's first major energy initiative -- the elimination of an entire system of artificial price controls for one of America's cleanest energy resources. It ends on January 1 1993 -- starting us on a path to a more stable energy future. 2 This measure reflects a strong bipartisan belief that eliminating price controls will help this nation take full advantage of our plentiful domestic resources. Even at today's prices -- it is estimated that the United States has natural gas reserves that Will take us to the year 2025 and beyond. have at to And ndustry and the Department of Energy are responding to this opportunity with imagination -- seeking to tap new sources mention Alaska of clean-burning natural gas in places like Prudhoe Bay, and developing new uses -- like powering cars and airplanes. With prices set by market forces, and improvements in gas production from unconventional sources, natural gas can help power this nation for decades to come. It may be said by some that this legislation could only have happened when energy prices are relatively low. I disagree Not true. Legislation like this -- creating new incentives to produce domestic energy -- can help keep prices low. It will nelp consumers receive an adequate and reliable supply of clean energy at the lowest reasonable price. And this is not just economical legislation -- it is environmental legislation. Gas burns much more cleanly than other fossil fuels -- and produces little air or water pollution. And it can play a larger role in our efforts to clean up our air and water. The environmental opportunities can be global. By exporting plentiful, clean-burning American natural gas -- we can nelp both our nation's economy and the world's environment. For example, 3 howdcot you at the recent economic summit we were encouraged by Japan's new R interest in clean energy sources. Today's legisiation means NOTE: that, ultimately, new U.S. sources of clean natural gas will be U.S. HAS available to Japanese and other international markets -- and at EXPORTED market prices. EIQUIFIEI NATURAL With a free market for this fuel, we can foresee America and GAGAL GAS the world using more of it. America and her allies must work -E.McN together now to expand the infrastructure to use this fuel. On this continent -- across the Atlantic -- across the Pacific -- these are opportunities for cooperation that can be helped by a freer market. Where we can add diversity, riexibility, and security to the world's energy picture -- we should do it. And natural gas is an important element. But despite today's good news, this is no time for complacency. On other fronts, conservation achievements are levelling off. Domestic oil production is down. Petroleum imports are increasing. And our need for a cleaner environment is obvious to all. And so today 1 have another announcement -- which, like the deregulation of natural gas -- means good news for America's energy future. 1 am directing the Secretary of Energy to take the lead in developing a comprehensive National Energy Strategy -- the first such plan in the history of our Nation. Didn't Carter at least have a plan? If not mysemented, proposed? 4 We cannot and will not wait for the next energy crisis -- or even the next smog alert -- to force us to respond. Today we don't have a crisis. We have an opportunity. this line was I have asked Admiral watkins to craft this strategy in close Space impecch consultation with the Cabinet and the Congress, with our cities and our states. Our task -- our bi-partisan task -- 1S to build the national consensus necessary to support this strategy. And to make the strategy a living and dynamıc document, responsive to new knowledge and new ideas, and changes in global climate. This task Will not be easy. America must balance: Our increasing need for energy at reasonable prices. Our commitment to a safer, nealthier environment. Our determination obligation to maintain an dependence economy that is second to none. And our goal to reduce reliance unreliable on insecure energy supplies 1 am confident that America's can-do attitude, scientific know-now, and old-fashioned common sense will prevail. By acting now -- we can bequeath a legacy to the next century of a cleaner, more prosperous and secure America. Today's legislation is a good start down that path. Domestically, natural gas can now reach its fullest potential as a competitive alternative to imports of oil from unreliable sources. I congratulate those of you in Congress who have worked so hard and so long to bring this legislation to my desk. And with that -- it is with great pride that I now sign the Natural Gas Wellhead Decontrol Act into law. # # # THE WHITE HOUSE WASHINGTON 89 JUL 24 P6: 11 July 24, 1989 MEMORANDUM FOR CHRISS WINSTON FROM: ROGER B. PORTER RBP SUBJECT: Natural Gas Bill Signing Ceremony I have reviewed and approve of the presidential draft re- marks for the Natural Gas Bill signing ceremony. I have also marked several changes that I believe will help strengthen the statement on the attached draft. Most important from a policy standpoint is the reference to the comprehensive National Energy Strategy as the first such plan in the history of our Nation. Many would argue that Project Independence in 1973 was a comprehensive National Energy Strategy. Certainly John Sawhill and those who put it together thought it was. Likewise, in 1977 Jimmy Carter made a National Energy Plan the centerpiece of his initial legislative strategy and this is what James Schlesinger and others thought they were doing. One of the things that we do not want is to bring back visions of the 1977 effort which is generally viewed dimly. The sentence reads fine without the concluding phrase. If you have any questions, please let me know. CC: James W. Cicconi Document No. 056096 WHITE HOUSE STAFFING MEMORANDUM 07/21/89 2:00 p.m. Monday 07/24 DATE: ACTION/CONCURRENCE/COMMENT DUE BY: SUBJECT: PRESIDENTIAL REMARKS: NATURAL GAS BILL SIGNING CEREMONY (07/21 5:00 p.m. draft four) ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN STUDDERT BATES UNTERMEYER BREEDEN ROGERS R CARD PINKERTON P WINSTON CICCONI DEMAREST FITZWATER GRAY HAGIN REMARKS: Please provide any comments/recommendations directly to Chriss Winston by 2:00 p.m. on Monday, 07/24, with a copy to my office. Thanks. RESPONSE: James W. Cicconi Assistant to the President and Deputy to the Chief of Staff Ext. 2702 (McNally/Simon) 1989 JUL 2 July 721, 1989, 5:00 p.m. Draft Four (GAS) PRESIDENTIAL REMARKS: NATURAL GAS BILL SIGNING CEREMONY THE EAST ROOM WEDNESDAY, JULY 26, 1989, 2:05 P.M. Thank you. Thanks all of you. And thanks also to my triend Jim Watkins, who 1S ott to such an outstanding start at Energy. To Martha Hesse [[hess-SEE]], for her good efforts at FERC. And to the forward-looking leaders from both sides of the aisle -- leaders like [ [my triends Jim McClure and Bennett Johnston, Norm Lent and John Dingell] -- leaders whose commitment to safeguarding America's energy and environment have made this landmark legislation possible. Most attrAct, 18 choices Natural gas -- methane -- is one of the best tuels on the world's energy menu. It 1S clean. It is efficient. It is abundant. But for 35 years, consumers and producers of natural gas the burden have struggled under a bureaucracy of oppressive price regulations. This was largely responsible for the damaging natural gas shortages of the 1970's -- and for gas market distortions that exist to this day. And so today's legislation represents the bipartisan attainment of the Administration's first major energy initiative -- the elimination of an entire system of artificial price controls for one of America's cleanest energy resources. It ends on January 1, 1993 -- starting us on a path to a more stable energy future. 2 This measure reflects a strong bipartisan belief that eliminating price controls will help this nation take full advantage of our plentiful domestic resources. Even at today's prices -- it is estimated that the United States has natural gas reserves that Will take us to the year 2025 and beyond. And industry and the Department of Energy are responding to this opportunity with imagination -- seeking to tap new sources of clean-burning natural gas in places like Prudhoe Bay, and developing new uses -- like powering cars and airplanes. With prices set by market forces, and improvements in gas production from unconventional sources, natural gas can help power this nation for decades to come. It may be said by some that this legislation could only have happened when energy prices are relatively low. I disagree. Legislation like this -- creating new incentives to produce domestic energy -- can help keep prices low. It will help consumers receive an adequate and reliable supply of clean energy at the lowest reasonable price. And this is not just economical legislation -- it is NATURAL environmental legislation. Gas burns much more cleanly than other fossil tuels -- and produces little air or water pollution. And it can play a larger role in our efforts to clean up our air and water. The environmental opportunities can be global. By exporting plentitul, clean-burning American natural gas -- we can nelp both our nation's economy and the world's environment. For example, 3 at the recent economic summit we were encouraged by Japan's new interest in clean energy sources. Today's legislation means that, ultimately, new U.S. sources of clean natural gas will be available to Japanese and other international markets -- and at market prices. With a free market for this fuel, we can foresee America and the world using more of it. America and her allies must work together now to expand the infrastructure to use this fuel. On this continent -- across the Atlantic -- across the Pacific -- these are opportunities for cooperation that can be helped by a freer market. Where we can add diversity, riexibility, and security to the world's energy picture -- we should do it. And natural gas is an important element. But despite today's good news, this is no time for complacency. On other fronts, conservation achievements are levelling off. Domestic oil production is down. Petroleum imports are increasing. And our need for a cleaner environment is obvious to all. And so today 1 have another announcement -- which, like the deregulation of natural gas -- means good news for America's energy future. 1 am directing the Secretary of Energy to take the lead in developing a comprehensive National Energy Strategy the first such plan in the history of our Nation 4 We cannot and will not wait for the next energy crisis -- or even the next smog alert -- to force us to respond. Today we don't have a crisis. We have an opportunity. I have asked Admiral watkins to craft this strategy in close consultation with the Cabinet and the Congress, with our cities and our states. Our task -- our bi-partisan task -- 1S to build the national consensus necessary to support this strategy. And to make the strategy a living and dynamic document, responsive to new knowledge and new ideas, and changes in global climate. This task Will not be easy. America must balance: Our increasing need for energy at reasonable prices. Our commitment to a safer, healthier environment. Our obligation to maintain an economy that is second to none. And our goal to reduce reliance on insecure energy supplies. 1 am confident that America's can-do attitude, scientific know-how, and old-fashioned common sense will prevail. By acting now -- we can bequeath a legacy to the next century of a cleaner, more prosperous and secure America. Today's legislation is a good start down that path. Domestically, natural gas can now reach its fullest potential as a competitive alternative to imports of oil from unreliable sources. I congratulate those of you in Congress who have worked SO hard and so long to bring this legislation to my desk. And with that -- it is with great pride that I now sign the Natural Gas Wellhead Decontrol Act into law. # # # THE WHITE HOUSE WASHINGTON July 24, 1989 MEMORANDUM FOR CHRISS WINSTON DEPUTY ASSISTANT TO THE PRESIDENT FOR COMMUNICATIONS FROM: ROBERT J. PORTMAN RJP ASSOCIATE COUNSEL TO THE PRESIDENT SUBJECT: National Energy Strategy Pursuant to your staffing memorandum of July 21, 1989, Counsel's Office has reviewed the above-referenced draft Presidential speech. We have no legal objection to the contents of this speech. Thank you for bringing this matter to our attention. CC: James W. Cicconi 8th :Ed P2 70Γ 68 Document No. 056096 WHITE HOUSE STAFFING MEMORANDUM 07/21/89 2:00 p.m. Monday 07/24 DATE: ACTION/CONCURRENCE/COMMENT DUE BY: SUBJECT: PRESIDENTIAL REMARKS: NATURAL GAS BILL SIGNING CEREMONY (07/21 5:00 p.m. draft four) ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN STUDDERT BATES UNTERMEYER BREEDEN ROGERS CARD PINKERTON WINSTON CICCONI DEMAREST FITZWATER GRAY HAGIN REMARKS: Please provide any comments/recommendations directly to Chriss Winston by 2:00 p.m. on Monday, 07/24, with a copy to my office. Thanks. NICK-OK RESPONSE TR TR Mention: Congressman Phil sharp 7m 12 700 68 Congressman Carlos Moorhead James W. Cicconi Assistant to the President and Deputy to the Chief of Staff Ext. 2702 (McNally/Simon) 1959 JUL 2 July 721, 1989, 5:00 p.m. Draft Four (GAS) PRESIDENTIAL REMARKS: NATURAL GAS BILL SIGNING CEREMONY THE EAST ROOM WEDNESDAY, JULY 26, 1989, 2:05 P.M. Thank you. Thanks all of you. And thanks also to my triend Jim Watkins, who 1S off to such an outstanding start at Energy. To Martha Hesse [[hess-SEE]], for her good efforts at FERC. And to the forward-looking leaders from both sides of the aisle -- leaders like [ [my triends Jim McClure and Bennett Johnston, Norm in the committee and Many others Lent and John Dingell] -- leaders whose commitment to safeguarding America's energy and environment have made this landmark legislation possible. Natural gas -- methane -- is one of the best tuels on the world's energy menu. it 1S clean. It is efficient. It is abundant. But for 35 years, consumers and producers of natural gas have struggled under a bureaucracy of oppressive price regulations. This was largely responsible for the damaging natural gas shortages of the 1970's -- and for gas market distortions that exist to this day. And so today's legislation represents the bipartisan attainment of the Administration's first major energy initiative -- the elimination of an entire system of artificial price controls for one of America's cleanest energy resources. It ends on January 1, 1993 -- starting us on a path to a more stable energy future. 2 This measure reflects a strong bipartisan belief that eliminating price controls will help this nation take full advantage of our plentiful domestic resources. Even at today's prices -- it is estimated that the United States has natural gas reserves that will take us to the year 2025 and beyond. And industry and the Department of Energy are responding to this opportunity with imagination -- seeking to tap new sources of clean-burning natural gas in places like Prudhoe Bay, and developing new uses -- like powering cars and airplanes. With prices set by market forces, and improvements in gas production from unconventional sources, natural gas can help power this nation for decades to come. It may be said by some that this legislation could only have happened when energy prices are relatively low. I disagree. Legislation like this -- creating new incentives to produce domestic energy -- can help keep prices low. It will help consumers receive an adequate and reliable supply of clean energy at the lowest reasonable price. And this is not just economical legislation -- it is environmental legislation. Gas burns much more cleanly than other fossil fuels -- and produces little air or water pollution. And it can play a larger role in our efforts to clean up our air and water. The environmental opportunities can be global. By exporting plentiful, clean-burning American natural gas -- we can nelp both our nation's economy and the world's environment. For example, 3 at the recent economic summit we were encouraged by Japan's new interest in clean energy sources. Today's legislation means that, ultimately, new U.S. sources of clean natural gas will be available to Japanese and other international markets -- and at market prices. With a free market for this fuel, we can foresee America and the world using more of it. America and her allies must work together now to expand the infrastructure to use this fuel. On this continent -- across the Atlantic -- across the Pacific -- these are opportunities for cooperation that can be helped by a freer market. Where we can add diversity, riexibility, and security to the world's energy picture -- we should do it. And natural gas is an important element. But despite today's good news, this is no time for complacency. On other fronts, conservation achievements are levelling off. Domestic oil production is down. Petroleum imports are increasing. And our need for a cleaner environment is obvious to all. And SO today 1 have another announcement -- which, like the deregulation of natural gas -- means good news for America's energy future. 1 am directing the Secretary of Energy to take the lead in developing a comprehensive National Energy Strategy -- the first such plan in the history of our Nation. 4 We cannot and will not wait for the next energy crisis -- or even the next smog alert -- to force us to respond. Today we don't have a crisis. We have an opportunity. I have asked Admiral watkins to craft this strategy in close consultation with the Cabinet and the Congress, with our cities and our states. Our task -- our bi-partisan task -- 1S to build the national consensus necessary to support this strategy. And to make the strategy a living and dynamic document, responsive to new knowledge and new ideas, and changes in global climate. This task Will not be easy. America must balance: Our increasing need for energy at reasonable prices. Our commitment to a safer, neaithier environment. Our obligation to maintain an economy that is second to none. And our goal to reduce reliance on insecure energy supplies. 1 am confident that America's can-do attitude, scientific know-how, and old-fashioned common sense will prevail. By acting now -- we can bequeath a legacy to the next century of a cleaner, more prosperous and secure America. Today's legislation is a good start down that path. Domestically, natural gas can now reach its fullest potential as a competitive alternative to imports of oil from unreliable sources. I congratulate those of you in Congress who have worked so hard and so long to bring this legislation to my desk. And with that -- it is with great pride that I now sign the Natural Gas Wellhead Decontrol Act into law. # #. # Simon (McNally/Simon) July 21, 1989, 5:00 p.m. Draft Four (GAS) PRESIDENTIAL REMARKS: NATURAL GAS BILL SIGNING CEREMONY THE EAST ROOM WEDNESDAY, JULY 26, 1989, 2:05 P.M. Thank you. Thanks all of you. And thanks also to my friend Jim Watkins, who 1S o:: to such an outstanding start at Energy. To Martha Hesse [hess-SEE]], for her good efforts at FERC. And to the forward-looking leaders from both sides of the aisle -- per Fred leaders like [[my triends Jim McClure and Bennett Johnston, Norm Phil Sharp and Carlos Moorhead in the committees- - McClure Lent and John DingelliA A -- leaders whose commitment to Vand many other leaders here today, safeguarding America's energy and environment have made this landmark legislation possible. Natural gas -- methane -- 1S one of the best ruels on the world's energy menu. It 1S clean. It is efficient. It is abundant. But for 35 years, consumers and producers on natural gas nave struggled under a bureaucracy of oppressive price regulations. This was Largely responsible for the damaging natural gas shortages 02 the 1970's -- and for gas market distortions that exist =0 TALS day. And SO today's legislation represents the bipartisan attainment of the Administration's first major energy initiative -- the elimination of an entire system of artificial price controls for one of America's cleanest energy resources. It ends on January 1, 1993 -- starting us on a path to a more stable energy future. we extract cun afford X transport to it. 2 This measure reflects a strong bipartisan belief that eliminating price controls will help this nation take full reserves that Will take us to the year 2025 and beyond. NOTE: There are some N.6. buses coming out, Aut no plans for There is lots of gas at Prudhoe airplanes Beny, but it will be a long, long time before advantage of our plentiful domestic resources. Even at today's prices -- it is estimated that the United States has natural gas And industry and the Department of Energy are responding to this opportunity with imagination -- seeking to tap new sources or clean-burning natural gas in places like Prudhoe Bay, and buses developing new uses -- like powering cars and airplanes. With prices set by market forces, and improvements in gas production from unconventional sources, natural gas can help power this nation for decades to come. It may be said by some that this legislation could only have happened when energy prices are relatively low. I disagree. Legislation like this -- creating new incentives to produce domestic energy -- can help keep prices low. It will help consumers receive an adequate and reliable supply of clean energy at the lowest reasonable price. And this is not just economical legislation -- it is environmental legisiation. Gas burns much more cleanly than other fossil ruels -- and produces little air or water pollution. And it can play a larger role in our efforts to clean up our air and water. The environmental opportunities can be global. By exporting plentifui, clean-burning American natural gas -- we can neip both our nation's economy and the world's environment. For example, NOTE: 1. Japan's environment plan at the summit talked about stopping rain forest cutting & a substitute for CFC's, not clean busing 2. The fuel. US cannot export gas at market rates- too expensive for others to 1 (atthough we do sell to Canada.) 3 at the recent economic summit we were encouraged by Japan's new interest in clean energy sources. Today's legisiation means that, ultimately, new U.S. sources of clean natural gas will be available to Japanese and other international markets -- and at market prices. With a free market for this fuel, we can foresee America and the world using more of it. America and her allies must work together now to expand the infrastructure to use this fuel. On this continent -- across the Atlantic -- across the Pacific -- these are opportunities for cooperation that can be helped by a freer market. Where we can add diversity, riexibility, and security to the world's energy picture -- we should do it. Ana natural gas is an important element. But despite today's good news, this is no time for complacency. On other fronts, conservation achievements are levelling OII. Domestic oil production is down. Petroleum imports are increasing. And our need for a cleaner environment is obvious to all. And SO today 1 have another announcement -- which, like the dereguiation of natural gas -- means good news for America's energy future. 1 am directing the Secretary of Energy to take the lead in developing a comprehensive National Energy Strategy -- the first such plan in the history of our Nation. 4 We cannot and will not wait for the next energy crisis -- or even the next smog alert -- to force us to respond. Today we don't have a crisis. We have an opportunity. I have asked Admiral watkins to craft this strategy in close consultation with the Cabinet and the Congress, with our cities and our states. Our task -- our bi-partisan task -- 1S to build the national consensus necessary to support this strategy. And to make the strategy a living and dynamic document, responsive to new knowledge and new ideas, and changes in global climate. This task Will not be easy. America must balance: Our increasing need for energy at reasonable prices. Our commitment to a safer, nealthier environment. Our obligation to maintain an economy that is second to none. And our goal to reduce reliance on insecure energy supplies. 1 am confident that America's can-do attitude, scientific know-how, and old-fashioned common sense will prevail. By acting now -- we can bequeath a legacy to the next century of a cleaner, more prosperous and secure America. Today's legislation is a good start down that path. Domestically, natural gas can now reach its fullest potential as a competitive alternative to imports of oil from unreliable sources. I congratulate those of you in Congress who have worked so hard and so long to bring this legislation to my desk. And with that -- it is with great pride that I now sign the Natural Gas Wellhead Decontrol Act into law. # # # (McNally/Simon) July 21, 1989, 5:00 p.m. Draft Four (GAS) PRESIDENTIAL REMARKS: NATURAL GAS BILL SIGNING CEREMONY THE EAST ROOM WEDNESDAY, JULY 26, 1989, 2:05 P.M. Thank you. Thanks all of you. And thanks also to my friend Jim Watkins, who 1S oti to such an outstanding start at Energy. To Martha Hesse [[hess-SEE]], for her good efforts at FERC. And to the forward-looking leaders from both sides of the aisle -- leaders like [ [my friends Jim McClure and Bennett Johnston, Norm Lent and John Dingell]] -- leaders whose commitment to safeguarding America's energy and environment have made this landmark legislation possible. Natural gas -- methane -- is one of the best fuels on the world's energy menu. it 1S clean. It is efficient. It is abundant. But for 35 years, consumers and producers of natural gas have struggled under a bureaucracy of oppressive price regulations. This was largely responsible for the damaging natural gas shortages o= the 1970's -- and for gas market distortions that exist to this day. And SO today's legislation represents the bipartisan attainment of the Administration's first major energy initiative -- the elimination of an entire system of artificial price controis for one of America's cleanest energy resources. It ends on January 1, 1993 -- starting us on a path to a more stable energy future. 2 This measure reflects a strong bipartisan belief that eliminating price controls will help this nation take full advantage of our plentiful domestic resources. Even at today's prices -- it is estimated that the United States has natural gas reserves that Will take us to the year 2025 and beyond. And industry and the Department of Energy are responding to this opportunity with imagination -- seeking to tap new sources of clean-burning natural gas in places like Prudhoe Bay, and developing new uses -- like powering cars and airplanes. With prices set by market forces, and improvements in gas production from unconventional sources, natural gas can help power this nation for decades to come. It may be said by some that this legislation could only have happened when energy prices are relatively low. I disagree. Legislation like this -- creating new incentives to produce domestic energy -- can help keep prices low. It will help consumers receive an adequate and reliable supply of clean energy at the lowest reasonable price. And this is not just economical legislation -- it is environmental legisiation. Gas burns much more cleanly than other fossil fuels -- and produces little air or water pollution. And it can play a larger role in our efforts to clean up our air and water. The environmental opportunities can be global. By exporting plentitui, clean-burning American natural gas -- we can nelp both our nation's economy and the world's environment. For example, 3 at the recent economic summit we were encouraged by Japan's new interest in clean energy sources. Today's legisiation means that, ultimately, new U.S. sources of clean natural gas will be available to Japanese and other international markets -- and at market prices. With a free market for this fuel, we can foresee America and the world using more of it. America and her allies must work together now to expand the infrastructure to use this fuel. On this continent -- across the Atlantic -- across the Pacific -- these are opportunities for cooperation that can be helped by a freer market. Where we can add diversity, rlexibility, and security to the world's energy picture -- we should do it. And natural gas is an important element. But despite today's good news, this is no time for complacency. On other fronts, conservation achievements are levelling OII. Domestic oil production is down. Petroleum imports are increasing. And our need for a cleaner environment is obvious to all. And so today 1 have another announcement -- which, like the dereguiation of natural gas -- means good news for America's energy future. 1 am directing the Secretary of Energy to take the lead in developing a comprehensive National Energy Strategy -- the first such plan in the history of our Nation. 4 We cannot and will not wait for the next energy crisis -- or even the next smog alert -- to force us to respond. Today we don't have a crisis. We have an opportunity. I have asked Admiral watkins to craft this strategy in close consultation with the Cabinet and the Congress, with our cities and our states. Our task -- our bi-partisan task -- 1S to build the national consensus necessary to support this strategy. And to make the strategy a living and dynamic document, responsive to new knowledge and new ideas, and changes in global climate. This task WILL not be easy. America must balance: Our increasing need for energy at reasonable prices. Our commitment to a safer, nealthier environment. Our obligation to maintain an economy that is second to none. And our goal to reduce reliance on insecure energy supplies. 1 am confident that America's can-do attitude, scientific know-how, and old-fashioned common sense will prevail. By acting now -- we can bequeath a legacy to the next century of a cleaner, more prosperous and secure America. Today's legislation is a good start down that path. Domestically, natural gas can now reach its fullest potential as a competitive alternative to imports of oil from unreliable sources. I congratulate those of you in Congress who have worked so hard and SO long to bring this legislation to my desk. And with that -- it is with great pride that I now sign the Natural Gas Wellhead Decontrol Act into law. # # # (McNally/Simon) July 25, 1989, 10:00 a.m. Draft Five (GAS) PRESIDENTIAL REMARKS: NATURAL GAS BILL SIGNING CEREMONY THE EAST ROOM WEDNESDAY, JULY 26, 1989, 2:05 P.M. Thank you. Thanks all of you. And thanks also to my friend Jim Watkins, who is off to such an outstanding start at Energy. To Martha Hesse [[hess-SEE]], for her good efforts at FERC. And to the forward-looking leaders from both sides of the aisle -- leaders like [my friends Jim McClure and Bennett Johnston, Norm Lent and John Dingell, Phil Sharp and Carlos Moorhead]] -- and many other leaders here today whose commitment to safeguarding America's energy and environment have made this landmark legislation possible. Natural gas -- methane -- is one of the best fuels on the world's energy menu. It is clean. It is efficient. It is abundant. But for 35 years, consumers and producers of natural gas have struggled under the burden of oppressive price regulations. This was directly responsible for the damaging natural gas shortages of the 1970's -- and for gas market distortions that exist to this day. It is instructive to look at what natural gas price controls brought us. They brought us shortages -- not increased supplies. They brought us higher gas prices -- not the lower consumer prices their supporters promised. 2 What was true for oil deregulation in 1981 is also true for gas deregulation in 1989. Experience shows that deregulation works to serve consumers and an expanding economy. It is a tribute to the American political system that, after decades of disagreement over the merits of gas decontrol, we can gather here today to state a clear message for all to hear: We have learned from the past. We are united in the conviction that the best way to deal with our energy problems and serve the American people is to let our market economy work. And so today's legislation represents the bipartisan attainment of the Administration's first major energy initiative -- the elimination of an entire system of artificial price controls for one of America's cleanest energy resources. This measure reflects a strong bipartisan belief that eliminating price controls will help this nation take full advantage of our plentiful domestic resources. Even at today's prices -- it is estimated that the United States has natural gas reserves that will take us to the year 2025 and beyond. Industry and the Department of Energy are responding to this opportunity with imagination -- seeking to tap new sources of clean-burning natural gas and developing new uses -- like powering cars and buses. With prices set by market forces, and improvements in gas exploration production technologies, natural gas can help power this nation well into the next century. It may be said by some that this legislation could only have happened when energy prices are relatively low. Not true. 3 Legislation like this -- relying on market incentives to produce domestic energy -- can help keep prices low. It is the best way to assure consumers of adequate and reliable supplies of clean energy at the lowest reasonable price. And this is not just economical legislation -- it is environmental legislation. Natural gas burns much more cleanly than other fossil fuels -- and produces little air or water pollution. And it can play a larger role in our efforts to clean up our air and water. The environmental opportunities can be global. With a free market for this fuel, we can foresee America and the world using more of it. America and her allies must work together now to expand the infrastructure to use this fuel. On this continent -- across the Atlantic -- across the Pacific -- these are opportunities for cooperation that can be helped by a freer market. Where we can add diversity, flexibility, economy, and security to the world's energy picture -- we should do it. And natural gas is an important element. But despite today's good news, this is no time for complacency. Our energy security problem continues. Conservation achievements are levelling off. Domestic oil production is continuing its downward trend. Petroleum imports are increasing. And our need for a cleaner environment is obvious to all. 4 And so today I have another announcement -- which, like the deregulation of natural gas -- is good news for America's energy future. I am directing the Secretary of Energy to take the lead in developing a comprehensive National Energy Strategy. We cannot and will not wait for the next energy crisis to force us to respond. I have asked Admiral Watkins to craft this strategy in close consultation with the Cabinet and the Congress, with our cities and our states. Our task -- our bi-partisan task -- is to build the national consensus necessary to support this strategy. And to make the strategy a living and dynamic document, responsive to new knowledge and new ideas, and to global, environmental and international changes. A keystone of this strategy will be the continuation of the successful policy of market reliance. This task will not be easy. America must balance: Our increasing need for energy at reasonable prices. Our commitment to a safer, healthier environment. Our determination to maintain an economy that is second to none. And our goal to reduce dependence, by ourselves and our friends and allies, on potentially unreliable energy suppliers. One important step towards protecting America from foreign energy supply interruptions is to provide more incentives for drilling right here at home. Though it is unlikely Congress will act this year -- I will continue to work to put more incentive into the tax code for domestic wildcat drilling. The bottom line 5 is: A strong domestic drilling and producing business is essential to our national security. I am confident that America's can-do attitude, scientific know-how, and old-fashioned common sense will prevail. By acting now -- we can bequeath a legacy to the next century of a cleaner, more prosperous and secure America. Today's legislation is a good start down that path. Domestically, natural gas can now reach its fullest potential as an economic, clean and convenient energy source. I congratulate those of you in Congress who have worked so hard and so long to bring this legislation to my desk. And with that -- it is with great pride that I now sign the Natural Gas Wellhead Decontrol Act into law. # # # (McNally/Simon) July 18, 1989, 10:00 a.m. Draft One (GAS) PRESIDENTIAL REMARKS: NATURAL GAS BILL SIGNING CEREMONY THE EAST ROOM wed, JULY 25, 1989, :00 .M. I - Thank you . And thanks also to my friend Jim Watkins, who is off to such an outstanding start at Energy. To Martha Hesse [[hess-SEE]], for her good efforts at FERC. And to the forward-looking leaders from both sides of the aisle -- leaders like / , and -- whose commitment to safeguarding America's energy and environment have made this landmark legislation possible. Natural gas -- methane -- is one of the best fuels on the world's energy menu. It is clean. It is efficient. It is abundant. But for 35 years, consumers and producers of natural gas have struggled under a bureaucracy of oppressive price regulations. This was largely responsible for the damaging natural gas shortages of the 1970's -- and for gas market distortions that exist to this day. And so today's legislation represents the bipartisan attainment of the Administration's first major energy initiative -- the elimination of an entire system of artificial price controls for one of America's cleanest energy resources. It ends on January 1, 1993 -- starting us on a path to a more stable domestic energy future. 2 This measure reflects a strong bipartisan belief that eliminating price controls will help this nation take maximum advantage of our plentiful reserves of clean-burning natural gas. Even at today's prices -- it is estimated that the United States has natural gas reserves that will take us to the year 2025 and beyond. With prices set by market forces, and improvements in gas production from unconventional sources, natural gas can help power this nation for decades to come. It may be said by some that this legislation could only have occurred when energy prices are relatively low. I disagree. Legislation like this -- creating new incentives to produce domestic energy -- can help keep prices low. It will help consumers receive an adequate and reliable supply of clean energy at the lowest reasonable price. And this is not just economical legislation -- it is environmental legislation. Gas burns much more cleanly than other fossil fuels -- and produces little air or water pollution. Natural gas can play a larger role in our efforts to clean up our air and water. And its effect is global. For example, in Japan, long criticized for appearing to be concerned only about its own environment there is a new commitment to clean energy sources. And today's legislation is a signal that America is ready to match such a commitment with one of its own -- through the export of clean burning natural gas, we can help both our nation's economy and the world's environment. 3 With a free market for this fuel, we can foresee America and the world using more of it. We call upon America and her allies must work together now to expand the infrastructure to use this fuel. On this continent -- across the Atlantic -- across the Pacific -- these are opportunities for cooperation that can be helped by a freer market. Where we can add diversity, flexibility, and security to the world's energy picture -- we should do it. And natural gas is an impor tont e Cement part of the means Over thirty years ago President Eisenhower had an opportunity to sign a bill which would have accomp. ished the same goal effect as today's legislation. But the bill was vetoed because of ethical concerns in the lobbying that surrounded its passage. I'm happy to sign this bill today because it is clean in two ways: It is an open and clean consensus that can result in cleaner air And that's good news for all Americans Domesticully, can Natural gas will now reach its fullest potential as a competitive demestic alternative to imports of oil from unreliable sources. This legislation is long overdue -- and an important step in enhancing America's domestic energy supplies. I congratulate those of you in Congress who have worked so hard to bring this legislation to my desk. And with that -- it is with great pride that I now sign the Natural Gas Decontrol Act into law. # # # Document No. 156076 WHITE HOUSE STAFFING MEMORANDUM DATE: 07/21/89 2:00 p.m. Monday 07/24 ACTION/CONCURRENCE/COMMENT DUE BY: PRESIDENTIAL REMARKS: NATURAL GAS BILL SIGNING CEREMONY SUBJECT: (07/21 5:00 p.m. draft four) ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN STUDDERT BATES UNTERMEYER ROGERS BREEDEN R PINKERTON CARD WINSTON CICCONI DEMAREST FITZWATER GRAY HAGIN REMARKS: Please provide any comments/recommendations directly to Chriss Winston by 2:00 p.m. on Monday, 07/24, with a copy to my office. Thanks. RESPONSE: 86 : -1/0 25 Consinents James W. Cicconi Assistant to the President and Deputy to the Chief of Staff Ext. 2702 THE WHITE HOUSE Office of the Press Secretary For Immediate Release July 26, 1989 REMARKS BY THE PRESIDENT AT THE NATURAL GAS BILL SIGNING CEREMONY The East Room 2:12 P.M. EDT THE PRESIDENT: Thank you all very, very much, and thanks also to Jim Watkins, our distinguished Secretary, who is off to such an outstanding start as Secretary of Energy. And also, Martha, thanks to you -- Martha Hesse -- for her great efforts at the Federal Energy Regulatory Commission, and to the forward-looking leaders from both sides of the aisle. Seeing this awesome array with my own two Senators, Lloyd Bentsen and Phil Gramm. I'm going to get in serious trouble by exclusion, but standing up here, of course, I'm delighted that Senator Bennett Johnston is here and Joe Barton, Phil Sharp, Don Nickles was -- there he is -- and all the rest of you. I want to single out, of course, John Dingell for his help and Norm Lent and Carlos Moorhead and so many others who have a keen interest in this subject. Natural gas -- methane -- one of the best fuels on the world's energy menu -- it's clean, it's efficient, relatively abundant. But for 35 years, consumers and producers of natural gas have struggled under the burden of oppressive price regulations, and this was directly responsible, in my view, for the damaging natural gas shortages of the '70s and for gas market distortions that exist to this very day. And it is instructive to look at what natural gas price controls brought us -- shortages, not increased supplies; higher gas prices, not the lower consumer prices that their supporters promised. And what was true for oil deregulation in 1981 is also true for gas deregulation in 1989. Experience shows that deregulation works to serve consumers and to serve an expanding economy. And it's a tribute to the American political system that, after decades of disagreement over the merits of gas decontrol, we can gather here today to state a clear message for all to hear. We've learned from the past; we are united in the conviction that the best way to deal with our energy problems and serve the American people is to let our market economy work. And so today's legislation represents the bipartisan attainment of the administration's first major energy initiative -- the elimination of an entire system of artificial price controls for one of America's cleanest energy resources. And this measure reflects a strong bipartisan belief that eliminating price controls will help this nation take full advantage of our plentiful domestic resources. Even at today's prices it's estimated that the United States has natural gas reserves that will take us to the year 2025 and beyond. And industry -- and I'm glad to see so many members of the industry here today, people that have been in the forefront for the battle of decontrol for many, many years -- industry and the Department of Energy are responding to this opportunity with imagination, seeking to tap new sources of clean-burning natural gas and then developing new uses, like powering cars and buses. With prices set by market forces and improvements in gas exploration MORE - 2 - production technologies, natural gas can help power this nation well into the next centry. And it may be said by some that this legislation could only have happened when energy prices are relatively low. Not true. Legislation like this, relying on market incentives to produce domestic energy, can help keep prices low. And it's the best way to assure consumers of adequate and reliable supplies of clean energy at the lowest reasonable price. And this is not just economical legislation, it is also environmental legislation. Natural gas burns much more cleanly than other fossil fuels and produces little air or water pollution and it can play a larger role in our efforts to clean up our air and our water. The environmental opportunities can be global. When a free market for this fuel exists we can foresee America and the world using more of it. America and her allies must work together now to expand the infrastructure for this fuel. And on this continent, cross the Atlantic, cross the Pacific, these are opportunities for cooperation that can be helped by a freer market. Where we can add diversity and flexibility, economy, and security to the world's energy picture we ought to do it. And natural gas is an important element. But despite today's good news, this is no time for complacency. Our energy security problem continues. Conservation achievements are leveling off, domestic oil production continuing its downward trend and patroleum imports are increasing. And our need for a cleaner environment is obvious to all. And so today, I want to make this announcement which, like the deregulation of natural gas, is good news for America's energy future. I'm directing Jim Watkins, our able Secretary of Energy, to take the lead in developing a comprehensive, national energy strategy. We cannot and will not wait for the next energy crisis to force us to respond. And so I've asked Jim to craft this strategy in close consultation with the Cabinet, leading members of the United States Congress and then with our cities and our states. Our task -- our bipartisan task -- is to build the national consensus necessary to support this strategy and to make this strategy a living and dynamic document, responsive to new knowledge and new ideas and to global, environmental and international changes. And I should say on this one parenthetically -- and I don't, again, want to single out only the Texans here -- but our Governor, who is with us today, has been in the forefront of urging upon us a national energy strategy for a long, long time. A keystone of this strategy is going to be the continuation of the successful policy of market reliance. And it's not going to be easy. We must balance -- achieve balance -- our increasing need for energy at reasonable prices, our commitment to a safer and healthier environment, our determination to maintain an economy that is second to none, and our goal to reduce dependence by ourselves and our friends and allies on potentially unreliable energy suppliers. One important step towards protecting American from foreign energy supply interruptions is to provide more incentives for drilling right here at home. And though it is unlikely that Congress will or maybe even can act on that this year, I will continue to work to put more incentive into the tax code for domestic wildcat drilling. The bottom line is, a strong domestic drilling and producing business is essential to the national security of the United States of America. And I am confident that America's can-do attitude and scientific know-how and old-fashioned plain common sense will prevail. By acting now, we can bequeath a legacy to the next century of a cleaner, more prosperous and, yes, more secure America. MORE - 3 - Today's legislation is a good start down that path. Domestically, natural gas can now reach its fullest potential as an economic, clean and convenient energy source. And so, I congratulate all the members of the United States Congress who have worked so hard and, in some cases, so long to bring this legislation to this desk. (Laughter.) And with that, it is with great pride that I now sign the Natural Gas Wellhead Decontrol Act into the law. (Applause.) END 2:22 P.M. EDT 056096SS Document No. WHITE HOUSE STAFFING MEMORANDUM 7/25/89 ---- DATE: ACTION/CONCURRENCE/COMMENT DUE BY: PRESIDENTIAL REMARKS: NATURAL GAS WELLHEAD DECONTROL ACT SUBJECT: ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN STUDDERT BATES UNTERMEYER BREEDEN ROGERS CARD WINSTON CICCONI PINKERTON DEMAREST FITZWATER GRAY HAGIN REMARKS: The attached has been forwarded to the President. 89 JUL 25 JUL 25 P4: 38 RESPONSE: James W. Cicconi Assistant to the President and Deputy to the Chief of Staff Ext. 2702 THE WHITE HOUSE WASHINGTON July 24, 1989 INFORMATION MEMORANDUM FOR THE PRESIDENT THROUGH: CHRISS WINSTON w FROM: EDWARD E. MCNALLY EMN SUBJECT: REMARKS AT THE SIGNING CEREMONY FOR THE NATURAL GAS WELLHEAD DECONTROL ACT I. SUMMARY Attached for your consideration and review are draft remarks for Wednesday afternoon's signing ceremony for the Natural Gas Wellhead Decontrol Act. 11. DISCUSSION At approximately 2:05 p.m. on Wednesday, July 26, 1989, you are scheduled to be announced at the East Room for the signing ceremony for the Natural Gas Wellhead Decontrol Act. The suggested remarks are brief (approximately five minutes), and include your announcement that the Secretary of Energy has been directed to develop a comprehensive National Energy Strategy. At the conclusion of your comments, there will be a brief ceremony as you sign the Act into law. (McNally/Simon) July 24, 1989, 6:50 p.m. Draft Four (GAS) PRESIDENTIAL REMARKS: NATURAL GAS BILL SIGNING CEREMONY THE EAST ROOM WEDNESDAY, JULY 26, 1989, 2:05 P.M. Thank you. Thanks all of you. And thanks also to my friend Jim Watkins, who is off to such an outstanding start at Energy. To Martha Hesse [[hess-SEE]], for her good efforts at FERC. And to the forward-looking leaders from both sides of the aisle -- leaders like [my friends Jim McClure and Bennett Johnston, Norm Lent and John Dingell, Phil Sharp and Carlos Moorhead] -- and many other leaders here today whose commitment to safeguarding America's energy and environment have made this landmark legislation possible. Natural gas -- methane -- is one of the best fuels on the world's energy menu. It is clean. It is efficient. It is abundant. But for 35 years, consumers and producers of natural gas have struggled under the burden of oppressive price regulations. This was directly responsible for the damaging natural gas shortages of the 1970's -- and for gas market distortions that exist to this day. It is instructive to look at what natural gas price controls brought us. They brought us shortages -- not increased supplies. They brought us higher gas prices -- not the lower consumer prices their supporters promised. 2 What was true for oil deregulation in 1981 is also true for gas deregulation in 1989. Experience shows that deregulation works to serve consumers and an expanding economy. It is a tribute to the American political system that, after decades of disagreement over the merits of gas decontrol, we can gather here today to state a clear message for all to hear: We have learned from the past. We are united in the conviction that the best way to deal with our energy problems and serve the American people is to let our market economy work. And so today's legislation represents the bipartisan attainment of the Administration's first major energy initiative -- the elimination of an entire system of artificial price controls for one of America's cleanest energy resources. This measure reflects a strong bipartisan belief that eliminating price controls will help this nation take full advantage of our plentiful domestic resources. Even at today's prices -- it is estimated that the United States has natural gas reserves that will take us to the year 2025 and beyond. Industry and the Department of Energy are responding to this opportunity with imagination -- seeking to tap new sources of clean-burning natural gas and developing new uses -- like powering cars and buses. With prices set by market forces, and improvements in gas exploration production technologies, natural gas can help power this nation well into the next century. It may be said by some that this legislation could only have happened when energy prices are relatively low. Not true. 3 Legislation like this -- relying on market incentives to produce domestic energy -- can help keep prices low. It is the best way to assure consumers of adequate and reliable supplies of clean energy at the lowest reasonable price. And this is not just economical legislation -- it is environmental legislation. Natural gas burns much more cleanly than other fossil fuels -- and produces little air or water pollution. And it can play a larger role in our efforts to clean up our air and water. The environmental opportunities can be global. With a free market for this fuel, we can foresee America and the world using more of it. America and her allies must work together now to expand the infrastructure to use this fuel. On this continent -- across the Atlantic -- across the Pacific -- these are opportunities for cooperation that can be helped by a freer market. Where we can add diversity, flexibility, economy, and security to the world's energy picture -- we should do it. And natural gas is an important element. But despite today's good news, this is no time for complacency. Our energy security problem continues. Conservation achievements are levelling off. Domestic oil production is continuing its downward trend. Petroleum imports are increasing. And our need for a cleaner environment is obvious to all. 4 And so today I have another announcement -- which, like the deregulation of natural gas -- is good news for America's energy future. I am directing the Secretary of Energy to take the lead in developing a comprehensive National Energy strategy. We cannot and will not wait for the next energy crisis to force us to respond. I have asked Admiral Watkins to craft this strategy in close consultation with the Cabinet and the Congress, with our cities and our states. Our task -- our bi-partisan task -- is to build the national consensus necessary to support this strategy. And to make the strategy a living and dynamic document, responsive to new knowledge and new ideas, and to global, environmental and international changes. A keystone of this strategy will be the continuation of the successful policy of market reliance. This task will not be easy. America must balance: Our increasing need for energy at reasonable prices. Our commitment to a safer, healthier environment. Our determination to maintain an economy that is second to none. And our goal to reduce dependence, by ourselves and our friends and allies on unreliable energy suppliers. I am confident that America's can-do attitude, scientific know-how, and old-fashioned common sense will prevail. By acting now -- we can bequeath a legacy to the next century of a cleaner, more prosperous and secure America. 5 Today's legislation is a good start down that path. Domestically, natural gas can now reach its fullest potential as an economic, clean and convenient energy source. I congratulate those of you in Congress who have worked so hard and so long to bring this legislation to my desk. And with that -- it is with great pride that I now sign the Natural Gas Wellhead Decontrol Act into law. # # #