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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: 13506 Folder ID Number: 13506-007 Folder Title: Briefing - Natural Gas Supply Association 10/12/89 [OA 3536] Stack: Row: Section: Shelf: Position: G 25 6 5 5 THE WHITE HOUSE 1989 WASHINGTON OCT 16 PM 6.- 4; OCTOBER 16, 1989 10/18/89 INFORMATION MEMORANDUM FOR THE PRESIDENT THROUGH: CHRISS WINSTON cw FROM: MARK LANGE MA SUBJECT: BRIEFING FOR NATURAL GAS SUPPLY ASSOCIATION Attached are brief remarks for your meeting with members of the Natural Gas Supply Association, at 1,15 p.m. on Wednesday, October 18, in Room 450 of the Old Executive Office Building. Some 200 representatives will attend. Your remarks should run 5 to 7 minutes. 10:00 am Thursday THE WHITE HOUSE WASHINGTON DATE: FROM THE PRESIDENT To: Jim see P.3 I thought we do subsidize ethanol etc. (Lange/Dooley) October 16, 1989 5:25 p.m. [GAS. DOC] PRESIDENTIAL REMARKS: BRIEFING, NATURAL GAS SUPPLY ASSOCIATION ROOM 450, OEOB WEDNESDAY, OCTOBER 18, 1989 Thurs 1:15 P.M. 10:00 It's a pleasure to have you here today. I see some familiar faces out there. Jim Middleton, Chairman of the N.G.S.A.; and Nick Bush, your President. .And to all of you representing this vital American industry: welcome. [[ Years ago, your industry added an agent to natural gas that gave it a characteristic scent. That way, if there was ever a leak in someone's house, they'd have a better chance of defecting the about it. leah Well, it doesn't work that way here in the White House. We have leaks in here all the time. But they're usually oderless. Sometimes they re colorless Sometimes even tasteless [PAUSE] But there's no truth to the rumor that we're putting canaries in all the West Wing offices ]] You know, just over a year ago I spoke to a group out in Midland, Texas. Said I was proud that our administration had 2 decontrolled oil prices -- but that we hadn't yet been able to prevail in Congress, to decontrol natural gas. Well, you know what happened next. The wisdom of the marketplace prevailed. After decades of disagreement, we were able to eliminate an entire system of artificial price controls, for one of America's cleanest energy resources. That was this administration's first major energy initiative -- and it was a good one. Good for developing domestic energy resources, so imperative to national security. Good for consumers, who will enjoy reliable energy at reasonable prices over the longer term. And good for the environment, which can only benefit from the broader use of clean-burning natural gas. Some of you were with me in the East Room when I signed the Natural Gas Wellhead Decontrol Act into law -- but all of you deserve credit and congratulations for that achievement. By supporting decontrol of gas prices, you've helped build diversity, flexibility, economy, and security into our energy picture -- now, and for the future. 3 Natural gas is -- and will continue to be -- essential to our domestic energy security. With growing difficulties in oil and gas leasing, and difficulties in siting nuclear plants, we will depend more than ever on a balanced mix of energy sources. That will mean more than deregulating the cost of gas at the wellhead, of course -- it will also demand that we pave the way for broader use of natural gas. As you know, I sent a bill to re-write our Federal Clean Air Act to Capitol Hill this summer. Today, I can report some good news -- the bill has been reported out of Subcommittee relatively intact -- the first time the Subcommittee has produced a bill in several years. That's good news for clean-burning fuels. And it's good news for cleaner air. Our bill is simple. We set a tough standard for air pollution. We don't care which fuel can meet it -- as long as it's met. We won't favor subsidizing any fuel. Instead, we support harnessing the power of the marketplace in the service of the environment. I want to thank all of you -- and Bill Reilly and his E.P.A. staff -- for all of the hard work you've done so far. Now let's double our efforts to get a bill as soon as possible -- so the American people can start the '90s as "The Clean Air Decade. " 4 Natural gas will be a vital part of this picture -- not as the sole solution, of course, but as part of a comprehensive energy package that makes use of a number of fuels and technologies. Your industry is as clearly oriented toward the future as any in America. You understand that we can't wait for the next energy crisis -- that a secure future demands that we plan, now. That's why I've asked the Secretary of Energy, Admiral Watkins, to develop a comprehensive National Energy Strategy for the nation. For such a strategy to succeed -- and it must succeed -- we'll need bi-partisan Federal and local support. It will be crucial that industry leaders like yourselves work closely with Admiral Watkins on that strategy -- and I know we can count on you. In the coming months, we will be looking for your thoughts and guidance. With gas prices set by market forces -- and new technologies offering new uses for this fuel -- natural gas is on the verge of reaching its fullest potential as an economic, clean, and efficient source of energy. 5 I think all of us can be confident that natural gas will help power this nation well into the next century. Let me offer you my every best wish for a successful Annual Meeting. And now I'm going to turn this briefing over to two outstanding members of the Cabinet -- Jim Watkins and Bill Reilly. # # # NATURAL GAS SUPPLY ASSOCIATION BRIEFING ROOM 450, OEOB / OCT. 19, 1989 / 10:05 A.M. IT'S A PLEASURE TO HAVE YOU HERE TODAY. JIM MIDDLETON, CHAIRMAN OF THE N.G.S.A.; AND NICK BUSH, YOUR PRESIDENT. . .I SEE SOME FAMILIAR FACES OUT THERE. To ALL OF YOU REPRESENTING THIS VITAL AMERICAN INDUSTRY: WELCOME. NATURAL GAS SUPPLY ASSOCIATION BRIEFING ROOM 450, OEOB / OCT. 19, 1989 / 10:05 A.M. It's A PLEASURE To HAVE YOU HERE TODAY. JIM MIDDLETON, CHAIRMAN OF THE N.G.S.A.; AND NICK BUSH, YOUR PRESIDENT. EUGENE TRACEY AND BUD LAWRENCE; DANNY CONKLIN AND HAROLD SCOGGINS; WAYNE GIBBENS; KEN LAY; JERRY HALVORSEN; WAYNE VALIS; AND TO THE MANY FRIENDS AND FAMILIAR FACES OUT THERE -- TO ALL OF YOU REPRESENTING THIS VITAL AMERICAN INDUSTRY: WELCOME. - 2 - [[ YEARS AGO, YOUR INDUSTRY ADDED AN AGENT TO NATURAL GAS THAT GAVE IT A CHARACTERISTIC SCENT. THAT WAY, IF THERE WAS EVER A LEAK IN SOMEONE'S HOUSE, THEY'D HAVE A cletectinathe leak BETTER CHANCE OF KNOWING ABOUT IT. WELL, IT DOESN'T WORK THAT WAY HERE IN THE WHITE HOUSE. WE HAVE LEAKS IN HERE ALL THE TIME. BUT THEY'RE USUALLY ODORLESS. SOMETIMES THEY'RE COLORLESS. SOMETIMES EVEN TASTELESS... [PAUSE] - 3 - BUT THERE'S NO TRUTH TO THE RUMOR THAT WE'RE PUTTING CANARIES IN ALL THE WEST WING OFFICES... ]] You KNOW, JUST OVER A YEAR AGO I SPOKE TO A GROUP OUT IN MIDLAND, TEXAS. SAID I WAS PROUD THAT OUR ADMINISTRATION HAD DECONTROLLED OIL PRICES -- BUT THAT WE HADN'T YET BEEN ABLE TO PREVAIL IN CONGRESS, TO DECONTROL NATURAL GAS. WELL, YOU KNOW WHAT HAPPENED NEXT. THE WISDOM OF THE MARKETPLACE PREVAILED. - 4 - AFTER DECADES OF DISAGREEMENT, WE WERE ABLE TO ELIMINATE AN ENTIRE SYSTEM OF ARTIFICIAL PRICE CONTROLS, FOR ONE OF AMERICA'S CLEANEST ENERGY RESOURCES. THAT WAS THIS ADMINISTRATION'S FIRST MAJOR ENERGY INITIATIVE -- AND IT WAS A GOOD ONE. GOOD FOR DEVELOPING DOMESTIC ENERGY RESOURCES, so IMPERATIVE TO NATIONAL SECURITY. - 5 - GOOD FOR CONSUMERS, WHO WILL ENJOY RELIABLE ENERGY AT REASONABLE PRICES OVER THE LONGER TERM. AND GOOD FOR THE ENVIRONMENT, WHICH CAN ONLY BENEFIT FROM THE BROADER USE OF CLEAN-BURNING NATURAL GAS. SOME OF YOU WERE WITH ME IN THE EAST ROOM WHEN I SIGNED THE NATURAL GAS WELLHEAD DECONTROL AcT INTO LAW -- BUT ALL OF YOU DESERVE CREDIT AND CONGRATULATIONS FOR THAT ACHIEVEMENT. - 6 - BY SUPPORTING DECONTROL OF GAS PRICES, YOU'VE HELPED BUILD DIVERSITY, FLEXIBILITY, ECONOMY, AND SECURITY INTO OUR ENERGY PICTURE -- NOW, AND FOR THE FUTURE. NATURAL GAS IS -- AND WILL CONTINUE TO BE -- ESSENTIAL TO OUR DOMESTIC ENERGY SECURITY. WITH GROWING DIFFICULTIES IN OIL AND GAS LEASING, AND DIFFICULTIES IN SITING NUCLEAR PLANTS, WE WILL DEPEND MORE THAN EVER ON A BALANCED MIX OF ENERGY SOURCES. - 7 - THAT WILL MEAN MORE THAN DEREGULATING THE COST OF GAS AT THE WELLHEAD, OF COURSE -- IT WILL ALSO DEMAND THAT WE PAVE THE WAY FOR BROADER USE OF NATURAL GAS. As YOU KNOW, I SENT A BILL TO RE-WRITE OUR FEDERAL CLEAN AIR Act TO CAPITOL HILL THIS SUMMER. TODAY, I CAN REPORT SOME GOOD NEWS -- THE BILL HAS BEEN REPORTED OUT OF SUBCOMMITTEE RELATIVELY INTACT -- THE FIRST TIME THE SUBCOMMITTEE HAS PRODUCED A BILL IN SEVERAL YEARS. - 8 - THAT'S GOOD NEWS FOR CLEAN-BURNING FUELS. AND IT'S GOOD NEWS FOR CLEANER AIR. OUR BILL IS SIMPLE. WE SET A TOUGH STANDARD FOR AIR POLLUTION. WE DON'T CARE WHICH FUEL CAN MEET IT -- AS LONG AS IT'S MET. WE WON'T FAVOR SUBSIDIZING ANY FUEL. INSTEAD, WE SUPPORT HARNESSING THE POWER OF THE MARKETPLACE IN THE SERVICE OF THE ENVIRONMENT. - 9 - I WANT TO THANK ALL OF YOU -- AND BILL REILLY AND HIS E.P.A. STAFF -- FOR ALL OF THE HARD WORK YOU'VE DONE so FAR. Now LET'S DOUBLE OUR EFFORTS TO GET A BILL AS SOON AS POSSIBLE -- so THE AMERICAN PEOPLE CAN START THE '90s AS "THE CLEAN AIR DECADE." NATURAL GAS WILL BE A VITAL PART OF THIS PICTURE -- NOT AS THE SOLE SOLUTION, OF COURSE, BUT AS PART OF A COMPREHENSIVE ENERGY PACKAGE THAT MAKES USE OF A NUMBER OF FUELS AND TECHNOLOGIES. - 10 - YOUR INDUSTRY IS AS CLEARLY ORIENTED TOWARD THE FUTURE AS ANY IN AMERICA. You UNDERSTAND THAT WE CAN'T WAIT FOR THE NEXT ENERGY CRISIS -- THAT A SECURE FUTURE DEMANDS THAT WE PLAN, NOW. THAT'S WHY I'VE ASKED THE SECRETARY OF ENERGY, ADMIRAL WATKINS, TO DEVELOP A COMPREHENSIVE NATIONAL ENERGY STRATEGY FOR THE NATION. FOR SUCH A STRATEGY TO SUCCEED -- AND IT MUST SUCCEED -- WE'LL NEED BI-PARTISAN FEDERAL AND LOCAL SUPPORT. - 11 - IT WILL BE CRUCIAL THAT INDUSTRY LEADERS LIKE YOURSELVES WORK CLOSELY WITH ADMIRAL WATKINS ON THAT STRATEGY -- AND I KNOW WE CAN COUNT ON YOU. IN THE COMING MONTHS, WE WILL BE LOOKING FOR YOUR THOUGHTS AND GUIDANCE. WITH GAS PRICES SET BY MARKET FORCES -- AND NEW TECHNOLOGIES OFFERING NEW USES FOR THIS FUEL -- NATURAL GAS IS ON THE VERGE OF REACHING ITS FULLEST POTENTIAL AS AN ECONOMIC, CLEAN, AND EFFICIENT SOURCE OF ENERGY. - 12 - I THINK ALL OF US CAN BE CONFIDENT THAT NATURAL GAS WILL HELP POWER THIS NATION WELL INTO THE NEXT CENTURY. LET ME OFFER YOU MY EVERY BEST WISH FOR A SUCCESSFUL ANNUAL MEETING. AND NOW I'M GOING TO TURN THIS BRIEFING OVER TO TWO OUTSTANDING MEMBERS OF THE CABINET -- JIM WATKINS AND BILL REILLY. ### THE WHITE HOUSE WASHINGTON OCTOBER 16, 1989 INFORMATION MEMORANDUM FOR THE PRESIDENT THROUGH: CHRISS WINSTON cw FROM: MARK LANGE MA SUBJECT: BRIEFING FOR NATURAL GAS SUPPLY ASSOCIATION Attached are brief remarks for your meeting with members of the Natural Gas Supply Association, at 1:15 p.m. on Wednesday, October 18, in Room 450 of the Old Executive Office Building. Some 200 representatives will attend. Your remarks should run 5 to 7 minutes. (Lange/Dooley) October 16, 1989 5:25 p.m. [GAS.DOC] PRESIDENTIAL REMARKS: BRIEFING, NATURAL GAS SUPPLY ASSOCIATION ROOM 450, OEOB WEDNESDAY, OCTOBER 18, 1989 1:15 P.M. It's a pleasure to have you here today. I see some familiar faces out there. Jim Middleton, Chairman of the N.G.S.A.; and Nick Bush, your President. And to all of you representing this vital American industry: welcome. [[ Years ago, your industry added an agent to natural gas that gave it a characteristic scent. That way, if there was ever a leak in someone's house, they'd have a better chance of knowing about it. Well, it doesn't work that way here in the White House. We have leaks in here all the time. But they're usually odorless. Sometimes they're colorless. Sometimes even tasteless [PAUSE] But there's no truth to the rumor that we're putting canaries in all the West Wing offices ]] You know, just over a year ago I spoke to a group out in Midland, Texas. Said I was proud that our administration had 2 decontrolled oil prices -- but that we hadn't yet been able to prevail in Congress, to decontrol natural gas. Well, you know what happened next. The wisdom of the marketplace prevailed. After decades of disagreement, we were able to eliminate an entire system of artificial price controls, for one of America's cleanest energy resources. That was this administration's first major energy initiative -- and it was a good one. Good for developing domestic energy resources, so imperative to national security. Good for consumers, who will enjoy reliable energy at reasonable prices over the longer term. And good for the environment, which can only benefit from the broader use of clean-burning natural gas. Some of you were with me in the East Room when I signed the Natural Gas Wellhead Decontrol Act into law -- but all of you deserve credit and congratulations for that achievement. By supporting decontrol of gas prices, you've helped build diversity, flexibility, economy, and security into our energy picture -- now, and for the future. 3 Natural gas is -- and will continue to be -- essential to our domestic energy security. With growing difficulties in oil and gas leasing, and difficulties in siting nuclear plants, we will depend more than ever on a balanced mix of energy sources. That will mean more than deregulating the cost of gas at the wellhead, of course -- it will also demand that we pave the way for broader use of natural gas. As you know, I sent a bill to re-write our Federal Clean Air Act to Capitol Hill this summer. Today, I can report some good news -- the bill has been reported out of Subcommittee relatively intact -- the first time the Subcommittee has produced a bill in several years. That's good news for clean-burning fuels. And it's good news for cleaner air. Our bill is simple. We set a tough standard for air pollution. We don't care which fuel can meet it -- as long as it's met. We won't favor subsidizing any fuel. Instead, we support harnessing the power of the marketplace in the service of the environment. I want to thank all of you -- and Bill Reilly and his E.P.A. staff -- for all of the hard work you've done so far. Now let's double our efforts to get a bill as soon as possible -- so the American people can start the '90s as "The Clean Air Decade." 4 Natural gas will be a vital part of this picture -- not as the sole solution, of course, but as part of a comprehensive energy package that makes use of a number of fuels and technologies. Your industry is as clearly oriented toward the future as any in America. You understand that we can't wait for the next energy crisis -- that a secure future demands that we plan, now. That's why I've asked the Secretary of Energy, Admiral Watkins, to develop a comprehensive National Energy Strategy for the nation. For such a strategy to succeed -- and it must succeed -- we'll need bi-partisan Federal and local support. It will be crucial that industry leaders like yourselves work closely with Admiral Watkins on that strategy -- and I know we can count on you. In the coming months, we will be looking for your thoughts and guidance. With gas prices set by market forces -- and new technologies offering new uses for this fuel -`- natural gas is on the verge of reaching its fullest potential as an economic, clean, and efficient source of energy. 5 I think all of us can be confident that natural gas will help power this nation well into the next century. Let me offer you my every best wish for a successful Annual Meeting. And now I'm going to turn this briefing over to two outstanding members of the Cabinet -- Jim Watkins and Bill Reilly. ### THE WHITE HOUSE WASHINGTON DROP-BY NATURAL GAS SUPPLY ASSOCIATION BRIEFING DATE: October 19, 1989 TIME: 10:05 a.m. LOCATION: Room 450 OEOB THROUGH: DAVID DEMAREST ASSISTANT TO THE PRESIDENT FOR COMMUNICATIONS FROM: BOBBIE KILBERG BK DEPUTY ASSISTANT TO THE PRESIDENT FOR PUBLIC LIAISON I. PURPOSE: To note success of the Natural Gas Deregulation Act, discuss Clean Air initiatives and thank the Natural Gas Supply Association for their support of Administration policies. II. BACKGROUND: The Natural Gas Supply Association (NGSA) represents over 90 gas production and supply companies and has been very helpful in working to unite the gas community behind the Administration's Clean Air Act. NGSA is one of 14 Associations which has helped create the Clean Air Coalition to help foster grassroots support for the President's bill. In addition to the NGSA membership, the leadership of the following groups will be present at the briefing: American Gas Association, Independent Petroleum Association of America, Mid Continent Oil and Gas Association and the Interstate Natural Gas Association. The President will speak at the opening of the briefing. He will be followed by EPA Administrator Reilly and Energy Secretary Watkins. III. PARTICIPANTS: The President Seated onstage during President's remarks: EPA Administrator William Reilly Energy Secretary James Watkins Jim Middleton, Chairman, Natural Gas Supply Association Nick Bush, President, Natural Gas Supply Association Seated in front row: Eugene Tracey, Chairman, American Gas Association Bud Lawrence, President, American Gas Association Danny Conklin, Chairman, Independent Petroleum Association of America Harold Scoggins, President, Independent Petroleum Association of America Wayne Gibbens, President, Mid-Continent Oil and Gas Association Ken Lay, Chairman, Interstate Natural Gas Association Jerry Halvorsen, President, Interstate Natural Gas Association Wayne Valis, President, Valis Associates Approximately 210 NGSA members and gas industry association officials IV. PRESS PLAN: Open press. V. SEQUENCE OF EVENTS: -- The President arrives Room 450 holding room. -- Met in holding room by: Jim Middleton, Chairman, Natural Gas Supply Association Nick Bush, President, NGSA -- Holding room gift presentation and photo. -- Guests depart holding room to stage. -- President is announced and enters stage. -- The President makes brief remarks. -- The President departs. THE WHITE HOUSE WASHINGTON October 16, 1989 MEMORANDUM FOR CHRISS WINSTON FROM: C. BOYDEN GRAY Mr COUNSEL TO THE PRESIDENT SUBJECT: Presidential Remarks: Natural Gas Supply Association Briefing The Counsel's Office has no legal objections to the above-referenced briefing. I have prepared an environmental insert that should be added on page 3. Environment Insert: Deregulation will not be complete, however, unless Congress enacts the emissions trading and alternativve fuel provisions of our clean Air Act legislation now pending in Congress. These provisions are essential to the creation of a free market that will permit natural gas - the cleanest fuel available - the opportunity to compete fairly for a role in reducing our nation's air pollution. I believe that sufficient gas will be discovered to service any new markets that can be developed. 2607 Jeff flolishead PE : 110 91 100 68 081191SS Document No. WHITE HOUSE STAFFING MEMORANDUM 10/17/89 DATE: ACTION/CONCURRENCE/COMMENT DUE BY: PRESIDENTIAL REMARKS: NATURAL GAS SUPPLY ASSOCIATION SUBJECT: ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN ROGICH BATES UNTERMEYER ROGERS CARD CICCONI WINSTON DEMAREST PINKERTON FITZWATER GRAY HAGIN REMARKS: The attached has been forwarded to the President. RESPONSE: James W. Cicconi Assistant to the President and Deputy to the Chief of Staff Ext. 2702 THE WHITE HOUSE WASHINGTON 1989 OCT 16 PM 6: 47 OCTOBER 16, 1989 INFORMATION MEMORANDUM FOR THE PRESIDENT cw THROUGH: CHRISS WINSTON FROM: MARK LANGE MA SUBJECT: BRIEFING FOR NATURAL GAS SUPPLY ASSOCIATION Attached are brief remarks for your meeting with members of the Natural Gas Supply Association, at 1:15 p.m. on Wednesday, October 18, in Room 450 of the Old Executive Office Building. Some 200 representatives will attend. Your remarks should run 5 to 7 minutes. (Lange/Dooley) October 16, 1989 5:25 p.m. [GAS.DOC] PRESIDENTIAL REMARKS: BRIEFING, NATURAL GAS SUPPLY ASSOCIATION ROOM 450, OEOB WEDNESDAY, OCTOBER 18, 1989 1:15 P.M. It's a pleasure to have you here today. I see some familiar faces out there. Jim Middleton, Chairman of the N.G.S.A.; and Nick Bush, your President. .And to all of you representing this vital American industry: welcome. [[ Years ago, your industry added an agent to natural gas that gave it a characteristic scent. That way, if there was ever a leak in someone's house, they'd have a better chance of knowing about it. Well, it doesn't work that way here in the White House. We have leaks in here all the time. But they're usually odorless. Sometimes they're colorless. Sometimes even tasteless [PAUSE] But there's no truth to the rumor that we're putting canaries in all the West Wing offices ]] You know, just over a year ago I spoke to a group out in Midland, Texas. Said I was proud that our administration had 2 decontrolled oil prices -- but that we hadn't yet been able to prevail in Congress, to decontrol natural gas. Well, you know what happened next. The wisdom of the marketplace prevailed. After decades of disagreement, we were able to eliminate an entire system of artificial price controls, for one of America's cleanest energy resources. That was this administration's first major energy initiative -- and it was a good one. Good for developing domestic energy resources, so imperative to national security. Good for consumers, who will enjoy reliable energy at reasonable prices over the longer term. And good for the environment, which can only benefit from the broader use of clean-burning natural gas. Some of you were with me in the East Room when I signed the Natural Gas Wellhead Decontrol Act into law -- but all of you deserve credit and congratulations for that achievement. By supporting decontrol of gas prices, you've helped build diversity, flexibility, economy, and security into our energy picture -- now, and for the future. 3 Natural gas is -- and will continue to be -- essential to our domestic energy security. With growing difficulties in oil and gas leasing, and difficulties in siting nuclear plants, we will depend more than ever on a balanced mix of energy sources. That will mean more than deregulating the cost of gas at the wellhead, of course -- it will also demand that we pave the way for broader use of natural gas. As you know, I sent a bill to re-write our Federal Clean Air Act to Capitol Hill this summer. Today, I can report some good news -- the bill has been reported out of Subcommittee relatively intact -- the first time the Subcommittee has produced a bill in several years. That's good news for clean-burning fuels. And it's good news for cleaner air. Our bill is simple. We set a tough standard for air pollution. We don't care which fuel can meet it -- as long as it's met. We won't favor subsidizing any fuel. Instead, we support harnessing the power of the marketplace in the service of the environment. I want to thank all of you -- and Bill Reilly and his E.P.A. staff -- for all of the hard work you've done so far. Now let's double our efforts to get a bill as soon as possible -- so the American people can start the '90s as "The Clean Air Decade." 4 Natural gas will be a vital part of this picture -- not as the sole solution, of course, but as part of a comprehensive energy package that makes use of a number of fuels and technologies. Your industry is as clearly oriented toward the future as any in America. You understand that we can't wait for the next energy crisis -- that a secure future demands that we plan, now. That's why I've asked the Secretary of Energy, Admiral Watkins, to develop a comprehensive National Energy Strategy for the nation. For such a strategy to succeed -- and it must succeed -- we'll need bi-partisan Federal and local support. It will be crucial that industry leaders like yourselves work closely with Admiral Watkins on that strategy -- and I know we can count on you. In the coming months, we will be looking for your thoughts and guidance. With gas prices set by market forces -- and new technologies offering new uses for this fuel -- natural gas is on the verge of reaching its fullest potential as an economic, clean, and efficient source of energy. 5 I think all of us can be confident that natural gas will help power this nation well into the next century. Let me offer you my every best wish for a successful Annual Meeting. And now I'm going to turn this briefing over to two outstanding members of the Cabinet -- Jim Watkins and Bill Reilly. # # # @Medicis Corporation TEL No. 2027281022 Oct 16,89 10:06 No 006 P.02 NATURAL GAS SUPPLY ASSOCIATION Nicholas J. Bush Suite 300 President 1129 20th Street, N.W. Washington, DC 20036-3403 (202) 331-89()O October 13, 1989 Wayne Valis Valis Associates 1747 Pennsylvania Avenue, N.W. Suite 1201 Washington, D.C. 20006 Dear Wayne: News that the President wishes to use our meeting as a forum for a major address is terrific. We are honored and flattered. This will be a great opportunity for the President to reaffirm his commitment to his Clean Air bill. As you know, NGSA has worked hard with other organizations to support the Administration's effort, particularly in the acid rain provisions. Some of those attending the Presidential speech, however, will be from integrated petroleum companies and may have some sensitivity to the ongoing debate over the methanol question. It would be a shame if this opportunity was not an entirely positive one for the President. Couldn't the President's remarks: o Stress the great job that Bill Reilly has done at EPA along with the White House staff in bringing together the first significant, comprehensive Clean Air bill amendments that have won bipartisan support since the passage of the original measure. 0 Reiterate his personal support for his proposal and his commitment to working with Congress to achieve the very best Clean Air bill possible. 0 Reiterate his commitment to the principles of freedom of choice in meeting standards, no subsidization or preference for one particular fuel over another; and, no new taxes to achieve these objectives. 0 Stress the importance of natural gas and its potential contributions to a cleaner environment. Point out that it is not the sole answer but an important part of the total solution which will include a multiplicity of fuels and technologies. Bright days for natural gas are ahead. o Avoid open shop comments about the dispute over the "methano!" or alternative fuel issue -- the Clean Air fight has a long way to go and the President could use this occasion to firm up support among some of his biggest helpers. Confrontation on the methanol issue would only jeopardize that. Sincerely, this NJB/jct Representing the Nation's Producers of Natural Gas 081191SS Document No. WHITE HOUSE STAFFING MEMORANDUM DATE: 10/12/89 ACTION/CONCURRENCE/COMMENT DUE BY: 10/16/89 10:00 AM PRESIDENTIAL REMARKS: NATURAL GAS SUPPLY ASSOCATION BRIEFING SUBJECT: ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN ROGICH BATES UNTERMEYER CARD ROGERS CICCONI WINSTON DEMAREST PINKERTON N/C FITZWATER GRAY HAGIN REMARKS: Please forward any comments directly to Chriss Winston, Rm. 122, x2930, no later than 10:00 AM, Monday, October 16, with a copy to my office. Thank you. RESPONSE: Call Peggy for research changes. James W. Cicconi Assistant to the President and Deputy to the Chief of Staff Ext. 2702 (Lange/Dooley) October 12, 1989 4:30 p.m. 1989 OCT 12 PM 4: 52 [GAS.DOC] PRESIDENTIAL REMARKS: BRIEFING, NATURAL GAS SUPPLY ASSOCIATION ROOM 450, OEOB WEDNESDAY, OCTOBER 18, 1989 1:15 P.M. It's a pleasure to have you here today. I see some familiar faces out there. Jim Middleton, Chairman of the N.G.S.A.; and Nick Bush, your President. To all of you welcome. V And representing this vital American industry: [[ Years ago, your industry added an agent to natural gas that gave it a characteristic scent. That way, if there was ever a leak in someone's house, they'd have a better chance of knowing about it. Well, it doesn't work that way here in the White House. We have leaks in here all the time. They're usually odorless. Sometimes they're colorless. Sometimes even tasteless... [PAUSE] But there's no truth to the rumor that we're putting canaries in all the West Wing offices ]] You know, just over a year ago I spoke to a group out in Midland, Texas. Said I was proud that our administration had decontrolled oil prices -- but that we hadn't yet been able to prevail in Congress, to decontrol natural gas. 2 Well, you know what happened next. The wisdom of the marketplace prevailed. After decades of disagreement, we were able to eliminate an entire system of artificial price controls, for one of America's cleanest energy resources. That was this administration's first major energy initiative -- and it was a good one. Good for developing domestic energy resources, so imperative to national security. Good for consumers, who will enjoy reliable energy at reasonable prices over the longer term. And good for the environment, which can only benefit from the broader use of clean-burning natural gas. Some of you were with me in the East Room when I signed the Natural Gas Wellhead Decontrol Act into law -- but all of you deserve credit and congratulations for that achievement. By supporting decontrol of gas prices, you've helped build diversity, flexibility, economy, and security into our energy picture -- now, and for the future. Natural gas is -- and will continue to be -- essential to our domestic energy security. With growing difficulties in oil 3 and gas leasing, and difficulties in siting nuclear plants, we will depend more than ever on a balanced mix of energy sources. That will mean more than deregulating the cost of gas at the wellhead pipeline, of course -- it will also demand that we pave the way for broader use of natural gas. Grady insert A [ Possible topical insert on C.A.A. / environment of but as part of a comprehenoive energy package that makes use of a number of fush and technologies natural gas will be a vital part of that bietnce - not as the sole solution, of course, Your industry is as clearly oriented toward the future as any in America. You understand that we can't wait for the next energy crisis -- that a secure future demands that we plan, now. That's why I've asked the Secretary of Energy, Admiral Watkins, to develop a comprehensive National Energy Strategy for the nation. For such a strategy to succeed -- and it must succeed -- we'll need bi-partisan Federal and local support. It will be crucial that industry leaders like yourselves work closely with Admiral Watkins on that strategy -- and I know we can count on you. In the coming months, we will be looking for your thoughts and guidance. With gas prices set by market forces -- and new technologies offering new uses for this fuel -- natural gas is on 4 the verge of reaching its fullest potential as an economic, clean, and efficient source of energy. I think all of us can be confident that natural gas will help power this nation well into the next century. Let me offer you my every best wish for a successful Annual Meeting. And now I'm going to turn this briefing over to two outstanding members of the Cabinet -- Jim Watkins and Bill Reilly. ### (Lange/Dooley) October 16, 1989 5:25 p.m. [GAS.DOC] PRESIDENTIAL REMARKS: BRIEFING, NATURAL GAS SUPPLY ASSOCIATION ROOM 450, OEOB WEDNESDAY, OCTOBER 18, 1989 1:15 P.M. It's a pleasure to have you here today. I see some familiar faces out there. Jim Middleton, Chairman of the N.G.S.A.; and Nick Bush, your President And to all of you representing this vital American industry: welcome. [[ Years ago, your industry added an agent to natural gas that gave it a characteristic scent. That way, if there was ever a leak in someone's house, they'd have a better chance of knowing about it. Well, it doesn't work that way here in the White House. We have leaks in here all the time. But they're usually odorless. Sometimes they're colorless. Sometimes even tasteless [PAUSE] But there's no truth to the rumor that we're putting canaries in all the West Wing offices ]] You know, just over a year ago I spoke to a group out in Midland, Texas. Said I was proud that our administration had 2 decontrolled oil prices -- but that we hadn't yet been able to prevail in Congress, to decontrol natural gas. Well, you know what happened next. The wisdom of the marketplace prevailed. After decades of disagreement, we were able to eliminate an entire system of artificial price controls, for one of America's cleanest energy resources. That was this administration's first major energy initiative -- and it was a good one. Good for developing domestic energy resources, so imperative to national security. Good for consumers, who will enjoy reliable energy at reasonable prices over the longer term. And good for the environment, which can only benefit from the broader use of clean-burning natural gas. Some of you were with me in the East Room when I signed the Natural Gas Wellhead Decontrol Act into law -- but all of you deserve credit and congratulations for that achievement. By supporting decontrol of gas prices, you've helped build diversity, flexibility, economy, and security into our energy picture -- now, and for the future. 3 Natural gas is -- and will continue to be -- essential to our domestic energy security. With growing difficulties in oil and gas leasing, and difficulties in siting nuclear plants, we will depend more than ever on a balanced mix of energy sources. That will mean more than deregulating the cost of gas at the wellhead, of course -- it will also demand that we pave the way for broader use of natural gas. As you know, I sent a bill to re-write our Federal Clean Air Act to Capitol Hill this summer. Today, I can reprot some good news -- the bill has been reported out of Subcommittee relatively intact -- the first time the Subcommittee has produced a bill in several years. That's good news for clean burning fuels. And it's good news for cleaner air. Our bill is simple. We set a tough standard for air pollution. We don't care which fuel can meet it -- as long as it's met. We won't favor subsidizing any fuel. Instead, we support harnessing the power of the marketplace in the service of the environment. I want to thank all of you -- and Bill Reilly and his E.P.A. staff -- for the work you've done so far. Now let's double our all had efforts to get a bill as soon as possible -- so the American people can start the '90s as "The Clean Air Decade." 4 Natural gas will be a vital part of this picture -- not as the sole solution, of course, but as part of a comprehensive energy package that makes use of a number of fuels and technologies. Your industry is as clearly oriented toward the future as any in America. You understand that we can't wait for the next energy crisis -- that a secure future demands that we plan, now. That's why I've asked the Secretary of Energy, Admiral Watkins, to develop a comprehensive National Energy Strategy for the nation. For such a strategy to succeed -- and it must succeed -- we'll need bi-partisan Federal and local support. It will be crucial that industry leaders like yourselves work closely with Admiral Watkins on that strategy -- and I know we can count on you. In the coming months, we will be looking for your thoughts and guidance. With gas prices set by market forces -- and new technologies offering new uses for this fuel -- natural gas is on the verge of reaching its fullest potential as an economic, clean, and efficient source of energy. 5 I think all of us can be confident that natural gas will help power this nation well into the next century. Let me offer you my every best wish for a successful Annual Meeting. And now I'm going to turn this briefing over to two outstanding members of the Cabinet -- Jim Watkins and Bill Reilly. ### SECURITY THE OFFICE OF 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 SS 6v 91 100 68 081191SS Document No. WHITE HOUSE STAFFING MEMORANDUM DATE: 10/12/89 ACTION/CONCURRENCE/COMMENT DUE BY: 10/16/89 10:00 AM PRESIDENTIAL REMARKS: NATURAL GAS SUPPLY ASSOCATION BRIEFING SUBJECT: ACTION FYI ACTION. FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN ROGICH BATES UNTERMEYER CARD ROGERS CICCONI WINSTON DEMAREST PINKERTON FITZWATER GRAY HAGIN REMARKS: Please forward any comments directly to Chriss Winston, Rm. 122, x2930, no later than 10:00 AM, Monday, October 16, with a copy to my office. Thank you. RESPONSE: See comments James W. Cicconi Assistant to the President and Deputy to the Chief of Staff Ext. 2702 (Lange/Dooley) October 12, 1989 4:30 p.m. 1989 OCT i2 PM 4: 52 [GAS.DOC] PRESIDENTIAL REMARKS: BRIEFING, NATURAL GAS SUPPLY ASSOCIATION ROOM 450, OEOB WEDNESDAY, OCTOBER 18, 1989 1:15 P.M. It's a pleasure to have you here today. I see some familiar faces out there. Jim Middleton, Chairman of the N.G.S.A.; and Nick Bush, your President To all of you: welcome. [[ Years ago, your industry added an agent to natural gas that gave it a characteristic scent. That way, if there was ever a leak in someone's house, they'd have a better chance of knowing about it. Well, it doesn't work that way here in the White House. We have leaks in here all the time. They're usually odorless. Sometimes they're colorless. Sometimes even tasteless [PAUSE] But there's no truth to the rumor that we're putting canaries in all the West Wing offices ]] You know, just over a year ago I spoke to a group out in Midland, Texas. Said I was proud that our administration had decontrolled oil prices -- but that we hadn't yet been able to prevail in Congress, to decontrol natural gas. 2 Well, you know what happened next. The wisdom of the marketplace prevailed. After decades of disagreement, we were able to eliminate an entire system of artificial price controls, for one of America's cleanest energy resources. That was this administration's first major energy initiative -- and it was a good one. Good for developing domestic energy resources, so imperative to national security. Good for consumers, who will enjoy reliable energy at reasonable prices over the longer term. And good for the environment, which can only benefit from the broader use of clean-burning natural gas. Some of you were with me in the East Room when I signed the Natural Gas Wellhead Decontrol Act into law -- but all of you deserve credit and congratulations for that achievement. By supporting decontrol of gas prices, you've helped build diversity, flexibility, economy, and security into our energy picture -- now, and for the future. Natural gas is -- and will continue to be -- essential to our domestic energy security. With growing difficulties in oil 3 and gas leasing, and difficulties in siting nuclear plants, we will depend more than ever on a balanced mix of energy sources. Grady That will mean more than deregulating the cost of gas at the t 4844 pipeline, of course -- it will also demand that we pave the way for use broader As know, of I natural Sent a bill gas. to re- write our Federal Clean Air Act to Capitol & Hill this summer. you Today, I Can reprt some good news. the bill has been repor tad out of Subcommittee [ Possible relatively topical intact insert the on first C.A.A. time the / environment Nocommittee has ] produced a bill in several years. That's good haws for cleanburning fuds. And it's good news for cleaner air. Our bill is simple, We set a tagl Your industry is as clearly oriented toward the future as standard for any in America. You understand that we can't wait for the next air pollution. we it energy crisis that a secure future demands that we plan, now. Lave which fuel can meet it --as by That's why I've asked the Secretary of Energy, Admiral as it's met. Watkins, to develop a comprehensive National Energy Strategy for we won't favor subsidizin the nation. any fuel. Intead we support For such a strategy to succeed and it must succeed -- homessing the we'll need bi-partisan Federal and local support. It will be power of the crucial that industry leaders like yourselves work closely with marketplace in the Admiral Watkins on that strategy -- and I know we can count on service of you. Wonnat she I want In the coming months, we will be looking for your thoughts to thank all and guidance. With gas prices set by market forces -- and new of you ad Bin Rilly technologies offering new uses for this fuel -- natural gas is on al his EPA staff --for the work yai've doness fav. Now let's redalble our efforts tight a bill as soon as possible- 50 the American people can start the 90s as the Clean Air Decale. 4 the verge of reaching its fullest potential as an economic, clean, and efficient source of energy. I think all of us can be confident that natural gas will help power this nation well into the next century. Let me offer you my every best wish for a successful Annual Meeting. And now I'm going to turn this briefing over to two outstanding members of the Cabinet -- Jim Watkins and Bill Reilly. # # # 081191SS Document No. WHITE HOUSE STAFFING MEMORANDUM DATE: 10/12/89 ACTION/CONCURRENCE/COMMENT DUE BY: 10/16/89 10:00 AM PRESIDENTIAL REMARKS: NATURAL GAS SUPPLY ASSOCATION BRIEFING SUBJECT: ACTION FYI ACTION. FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN ROGICH BATES UNTERMEYER CARD ROGERS CICCONI WINSTON DEMAREST PINKERTON FITZWATER GRAY HAGIN REMARKS: Please forward any comments directly to Chriss Winston, Rm. 122, x2930, no later than 10:00 AM, Monday, October 16, with a copy to my office. Thank you. RESPONSE: see Commonts 10/10/1989 68 James W. Cicconi Assistant to the President and Deputy to the Chief of Staff Ext. 2702 (Lange/Dooley) October 12, 1989 4:30 p.m. 1989 OCT i2 PM 4: 52 [GAS.DOC] PRESIDENTIAL REMARKS: BRIEFING, NATURAL GAS SUPPLY ASSOCIATION ROOM 450, OEOB WEDNESDAY, OCTOBER 18, 1989 1:15 P.M. It's a pleasure to have you here today. I see some familiar faces out there. Jim Middleton, Chairman of the N.G.S.A.; and Nick Bush, your President To all of you: welcome. [[ Years ago, your industry added an agent to natural gas that gave it a characteristic scent. That way, if there was ever a leak in someone's house, they'd have a better chance of knowing about it. Well, it doesn't work that way here in the White House. We have leaks in here all the time. They're usually odorless. Sometimes they're colorless. Sometimes even tasteless [PAUSE] But there's no truth to the rumor that we're putting canaries in all the West Wing offices ]] You know, just over a year ago I spoke to a group out in Midland, Texas. Said I was proud that our administration had decontrolled oil prices -- but that we hadn't yet been able to prevail in Congress, to decontrol natural gas. 2 Well, you know what happened next. The wisdom of the marketplace prevailed. After decades of disagreement, we were able to eliminate an entire system of artificial price controls, for one of America's cleanest energy resources. That was this administration's first major energy initiative -- and it was a good one. Good for developing domestic energy resources, so imperative to national security. Good for consumers, who will enjoy reliable energy at reasonable prices over the longer term. And good for the environment, which can only benefit from the broader use of clean-burning natural gas. Some of you were with me in the East Room when I signed the Natural Gas Wellhead Decontrol Act into law -- but all of you deserve credit and congratulations for that achievement. By supporting decontrol of gas prices, you've helped build diversity, flexibility, economy, and security into our energy picture -- now, and for the future. Natural gas is -- and will continue to be -- essential to our domestic energy security. With growing difficulties in oil 3 and gas leasing, and difficulties in siting nuclear plants, we will depend more than ever on a balanced mix of energy sources. That will mean more than deregulating the cost of gas at the pipeline, of course -- it will also demand that we pave the way for broader use of natural gas. [ Possible topical insert on C.A.A. / environment ] E - May want to mention Clean air). Your industry is as clearly oriented toward the future as any in America. You understand that we can't wait for the next energy crisis -- that a secure future demands that we plan, now. That's why I've asked the Secretary of Energy, Admiral Watkins, to develop a comprehensive National Energy Strategy for the nation. For such a strategy to succeed -- and it must succeed -- we'll need bi-partisan Federal and local support. It will be crucial that industry leaders like yourselves work closely with Admiral Watkins on that strategy -- and I know we can count on you. In the coming months, we will be looking for your thoughts and guidance. With gas prices set by market forces -- and new technologies offering new uses for this fuel -- natural gas is on 4 the verge of reaching its fullest potential as an economic, clean, and efficient source of energy. Even though there are Still reforms that need to be undertaken, I think all of us can be confident that natural gas will help power this nation well into the next century. Let me offer you my every best wish for a successful Annual Meeting. And now I'm going to turn this briefing over to two outstanding members of the Cabinet -- Jim Watkins and Bill Reilly. # # # 081191SS Document No. WHITE HOUSE STAFFING MEMORANDUM DATE: 10/12/89 ACTION/CONCURRENCE/COMMENT DUE BY: 10/16/89 10:00 AM PRESIDENTIAL REMARKS: NATURAL GAS SUPPLY ASSOCATION BRIEFING SUBJECT: ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN ROGICH BATES UNTERMEYER CARD ROGERS CICCONI WINSTON DEMAREST PINKERTON FITZWATER GRAY HAGIN REMARKS: Please forward any comments directly to Chriss Winston, Rm. 122, x2930, no later than 10:00 AM, Monday, October 16, with a copy to my office. Thank you. RESPONSE: OK S.R. $1:1d £1100.68 James W. Cicconi Assistant to the President and Deputy to the Chief of Staff Ext. 2702 (Lange/Dooley) October 12, 1989 4:30 p.m. 1989 OCT 12 PM 4: 52 [GAS.DOC] PRESIDENTIAL REMARKS: BRIEFING, NATURAL GAS SUPPLY ASSOCIATION ROOM 450, OEOB WEDNESDAY, OCTOBER 18, 1989 1:15 P.M. It's a pleasure to have you here today. I see some familiar faces out there. Jim Middleton, Chairman of the N.G.S.A.; and Nick Bush, your President To all of you: welcome. [[ Years ago, your industry added an agent to natural gas that gave it a characteristic scent. That way, if there was ever a leak in someone's house, they'd have a better chance of knowing about it. Well, it doesn't work that way here in the White House. We have leaks in here all the time. They're usually odorless. Sometimes they're colorless. Sometimes even tasteless [PAUSE] But there's no truth to the rumor that we're putting canaries in all the West Wing offices ]] You know, just over a year ago I spoke to a group out in Midland, Texas. Said I was proud that our administration had decontrolled oil prices -- but that we hadn't yet been able to prevail in Congress, to decontrol natural gas. 2 Well, you know what happened next. The wisdom of the marketplace prevailed. After decades of disagreement, we were able to eliminate an entire system of artificial price controls, for one of America's cleanest energy resources. That was this administration's first major energy initiative -- and it was a good one. Good for developing domestic energy resources, so imperative to national security. Good for consumers, who will enjoy reliable energy at reasonable prices over the longer term. And good for the environment, which can only benefit from the broader use of clean-burning natural gas. Some of you were with me in the East Room when I signed the Natural Gas Wellhead Decontrol Act into law -- but all of you deserve credit and congratulations for that achievement. By supporting decontrol of gas prices, you've helped build diversity, flexibility, economy, and security into our energy picture -- now, and for the future. Natural gas is -- and will continue to be -- essential to our domestic energy security. With growing difficulties in oil 3 and gas leasing, and difficulties in siting nuclear plants, we will depend more than ever on a balanced mix of energy sources. That will mean more than deregulating the cost of gas at the pipeline, of course -- it will also demand that we pave the way for broader use of natural gas. [ Possible topical insert on C.A.A. / environment ] Your industry is as clearly oriented toward the future as any in America. You understand that we can't wait for the next energy crisis -- that a secure future demands that we plan, now. That's why I've asked the Secretary of Energy, Admiral Watkins, to develop a comprehensive National Energy Strategy for the nation. For such a strategy to succeed -- and it must succeed -- we'll need bi-partisan Federal and local support. It will be crucial that industry leaders like yourselves work closely with Admiral Watkins on that strategy -- and I know we can count on you. In the coming months, we will be looking for your thoughts and guidance. With gas prices set by market forces -- and new technologies offering new uses for this fuel -- natural gas is on 4 the verge of reaching its fullest potential as an economic, clean, and efficient source of energy. I think all of us can be confident that natural gas will help power this nation well into the next century. Let me offer you my every best wish for a successful Annual Meeting. And now I'm going to turn this briefing over to two outstanding members of the Cabinet -- Jim Watkins and Bill Reilly. # # # THE WHITE HOUSE WASHINGTON October 16, 1989 MEMORANDUM FOR CHRISS WINSTON FROM: ROGER B. PORTER RBP SUBJECT: Presidential Remarks: Natural Gas Supply Association Briefing The President's draft remarks for the Natural Gas Supply Association Briefing are well written. The joke about leaks on the first page is particularly clever. We have one comment from a policy standpoint. In the second full paragraph on page three, "That will mean more than deregulating the cost of gas at the pipeline" the word "pipeline" should be replaced with the word "wellhead". If you have any questions or we can help in any other way, please let me know. CC: James W. Cicconi 20 : 21d 91 100 68 081191SS Document No. WHITE HOUSE STAFFING MEMORANDUM DATE: 10/12/89 ACTION/CONCURRENCE/COMMENT DUE BY: 10/16/89 10:00 AM PRESIDENTIAL REMARKS: NATURAL GAS SUPPLY ASSOCATION BRIEFING SUBJECT: ACTION FYI ACTION. FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN ROGICH BATES UNTERMEYER CARD ROGERS CICCONI WINSTON DEMAREST PINKERTON FITZWATER GRAY HAGIN REMARKS: Please forward any comments directly to Chriss Winston, Rm. 122, x2930, no later than 10:00 AM, Monday, October 16, with a copy to my office. Thank you. RESPONSE: James W. Cicconi Assistant to the President and Deputy to the Chief of Staff Ext. 2702 (Lange/Dooley) October 12, 1989 1989 OCT 12 PM 4: 52 4:30 p.m. [GAS.DOC] PRESIDENTIAL REMARKS: BRIEFING, NATURAL GAS SUPPLY ASSOCIATION ROOM 450, OEOB WEDNESDAY, OCTOBER 18, 1989 1:15 P.M. It's a pleasure to have you here today. I see some familiar faces out there. Jim Middleton, Chairman of the N.G.S.A.; and Nick Bush, your President To all of you: welcome. [[ Years ago, your industry added an agent to natural gas that gave it a characteristic scent. That way, if there was ever a leak in someone's house, they'd have a better chance of knowing about it. Well, it doesn't work that way here in the White House. We have leaks in here all the time. They're usually odorless. Sometimes they're colorless. Sometimes even tasteless [PAUSE] But there's no truth to the rumor that we're putting canaries in all the West Wing offices ]] You know, just over a year ago I spoke to a group out in Midland, Texas. Said I was proud that our administration had decontrolled oil prices -- but that we hadn't yet been able to prevail in Congress, to decontrol natural gas. 2 Well, you know what happened next. The wisdom of the marketplace prevailed. After decades of disagreement, we were able to eliminate an entire system of artificial price controls, for one of America's cleanest energy resources. That was this administration's first major energy initiative -- and it was a good one. Good for developing domestic energy resources, so imperative to national security. Good for consumers, who will enjoy reliable energy at reasonable prices over the longer term. And good for the environment, which can only benefit from the broader use of clean-burning natural gas. Some of you were with me in the East Room when I signed the Natural Gas Wellhead Decontrol Act into law -- but all of you deserve credit and congratulations for that achievement. By supporting decontrol of gas prices, you've helped build diversity, flexibility, economy, and security into our energy picture -- now, and for the future. Natural gas is -- and will continue to be -- essential to our domestic energy security. With growing difficulties in oil 3 and gas leasing, and difficulties in siting nuclear plants, we will depend more than ever on a balanced mix of energy sources. That will mean more than deregulating the cost of gas at the WELCHEAD pipeline, of course -- it will also demand that we pave the way for broader use of natural gas. [ Possible topical insert on C.A.A. / environment ] Your industry is as clearly oriented toward the future as any in America. You understand that we can't wait for the next energy crisis -- that a secure future demands that we plan, now. That's why I've asked the Secretary of Energy, Admiral Watkins, to develop a comprehensive National Energy Strategy for the nation. For such a strategy to succeed -- and it must succeed -- we'll need bi-partisan Federal and local support. It will be crucial that industry leaders like yourselves work closely with Admiral Watkins on that strategy -- and I know we can count on you. In the coming months, we will be looking for your thoughts and guidance. With gas prices set by market forces -- and new technologies offering new uses for this fuel -- natural gas is on 4 the verge of reaching its fullest potential as an economic, clean, and efficient source of energy. I think all of us can be confident that natural gas will help power this nation well into the next century. Let me offer you my every best wish for a successful Annual Meeting. And now I'm going to turn this briefing over to two outstanding members of the Cabinet -- Jim Watkins and Bill Reilly. ### 081191SS Document No. WHITE HOUSE STAFFING MEMORANDUM DATE: 10/12/89 ACTION/CONCURRENCE/COMMENT DUE BY: 10/16/89 10:00 AM PRESIDENTIAL REMARKS: NATURAL GAS SUPPLY ASSOCATION BRIEFING SUBJECT: ACTION FYI ACTION. FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN ROGICH BATES UNTERMEYER CARD ROGERS CICCONI WINSTON DEMAREST PINKERTON FITZWATER GRAY HAGIN REMARKS: Please forward any comments directly to Chriss Winston, Rm. 122, P12 x2930, no later than 10:00 AM, Monday, October 16, with a copy to my office. Thank you. RESPONSE: 89 OCT 89 OCT 16 16 Legislative Affairs world recommend that there be a "phig" for the President's clean air purposals (insut p.3 ?) James W. Cicconi Assistant to the President Nancy Dorn (x7766) sent a and Deputy to the Chief of Staff Ext. 2702 aremo to David funanest 10/13/89 An his argnest. PIS. contact Nancy Dorn if any questions. (Lange/Dooley) October 12, 1989 4:30 p.m. 1989 OCT i2 PM 4:52 [GAS.DOC] PRESIDENTIAL REMARKS: BRIEFING, NATURAL GAS SUPPLY ASSOCIATION ROOM 450, OEOB WEDNESDAY, OCTOBER 18, 1989 1:15 P.M. It's a pleasure to have you here today. I see some familiar faces out there. Jim Middleton, Chairman of the N.G.S.A.; and Nick Bush, your President To all of you: welcome. [[ Years ago, your industry added an agent to natural gas that gave it a characteristic scent. That way, if there was ever a leak in someone's house, they'd have a better chance of knowing about it. Well, it doesn't work that way here in the White House. We have leaks in here all the time. They're usually odorless. Sometimes they're colorless. Sometimes even tasteless [PAUSE] But there's no truth to the rumor that we're putting canaries in all the West Wing offices ]] You know, just over a year ago I spoke to a group out in Midland, Texas. Said I was proud that our administration had decontrolled oil prices -- but that we hadn't yet been able to prevail in Congress, to decontrol natural gas. 2 Well, you know what happened next. The wisdom of the marketplace prevailed. After decades of disagreement, we were able to eliminate an entire system of artificial price controls, for one of America's cleanest energy resources. That was this administration's first major energy initiative -- and it was a good one. Good for developing domestic energy resources, so imperative to national security. Good for consumers, who will enjoy reliable energy at reasonable prices over the longer term. And good for the environment, which can only benefit from the broader use of clean-burning natural gas. Some of you were with me in the East Room when I signed the Natural Gas Wellhead Decontrol Act into law -- but all of you deserve credit and congratulations for that achievement. By supporting decontrol of gas prices, you've helped build diversity, flexibility, economy, and security into our energy picture -- now, and for the future. Natural gas is -- and will continue to be -- essential to our domestic energy security. With growing difficulties in oil 3 and gas leasing, and difficulties in siting nuclear plants, we will depend more than ever on a balanced mix of energy sources. That will mean more than deregulating the cost of gas at the pipeline, of course -- it will also demand that we pave the way for broader use of natural gas. [ Possible topical insert on C.A.A. / environment ] Your industry is as clearly oriented toward the future as any in America. You understand that we can't wait for the next energy crisis -- that a secure future demands that we plan, now. That's why I've asked the Secretary of Energy, Admiral Watkins, to develop a comprehensive National Energy Strategy for the nation. For such a strategy to succeed -- and it must succeed -- we'll need bi-partisan Federal and local support. It will be crucial that industry leaders like yourselves work closely with Admiral Watkins on that strategy -- and I know we can count on you. In the coming months, we will be looking for your thoughts and guidance. With gas prices set by market forces -- and new technologies offering new uses for this fuel -- natural gas is on 4 the verge of reaching its fullest potential as an economic, clean, and efficient source of energy. I think all of us can be confident that natural gas will help power this nation well into the next century. Let me offer you my every best wish for a successful Annual Meeting. And now I'm going to turn this briefing over to two outstanding members of the Cabinet -- Jim Watkins and Bill Reilly. # # # THE WHITE HOUSE WASHINGTON October 13, 1989 MEMORANDUM TO: David Demarest THROUGH: Fred McClure the FROM: Nancy Dorn SUBJECT: Clean Air status report In preparation for the President's remarks to the gas association next Wednesday, you had requested an update on the progress of the Administration's Clean Air legislation. After three weeks of debate and amendment, the bill was reported out of the House Energy and Commerce Subcommittee on Health and the Environment Wednesday. Though subjected to much debate, some controversial amendments and intense media attention, the significant news is that the Administration bill remains intact coming out of the Waxman subcommittee. The significant amendments which were adopted during the subcommittee markup include: -- a Dingell - Lent substitute to the original bill tightening up several vulnerable areas such as the exclusion of tall stacks from regulation, as well as correcting several inadvertent errors in the original bill. This was accepted by the Administration and was generally non- controversial. -- a Waxman - Dingell agreement tightening tailpipe emissions to the levels currently in place in California and providing for stricter controls in the early 2000's if necessary and feasible. -- the Hall - Fields alternative fuel amendment. The Administration did not support the amendment because it yields fewer emission reductions than did the Administration bill. The amendment's sponsors have indicated willingness to address the Administration's concerns in full committee and we are currently discussing potential fixes with them. Chairman Dingell has indicated that he would like to move the bill fairly quickly to the full committee, probably in the next two weeks. There is still a chance that the bill could be considered by the Sharp subcommittee on Energy and Power, though -2- it seems somewhat unlikely since Sharp does not have the votes in his subcommittee to fix his own regional problems. Several of the most contentious amendments were not offered in the Waxman subcommittee, including amendments on cost-sharing to alleviate the burden on the Midwest and the emissions cap, which effects fast-growing states like Florida. We will have to deal with these and other issues in the full committee markup. - 2 - [[ YEARS AGO, YOUR INDUSTRY ADDED AN AGENT TO NATURAL GAS THAT GAVE IT A CHARACTERISTIC SCENT. THAT WAY, IF THERE WAS EVER A LEAK IN SOMEONE'S HOUSE, THEY'D HAVE A BETTER CHANCE OF DETECTING THE LEAK. WELL, IT DOESN'T WORK THAT WAY HERE IN THE WHITE HOUSE. WE HAVE LEAKS IN HERE ALL THE TIME. - 3 - You KNOW, JUST OVER A YEAR AGO I SPOKE To A GROUP OUT IN MIDLAND, TEXAS. SAID I WAS PROUD THAT OUR ADMINISTRATION HAD DECONTROLLED OIL PRICES -- BUT THAT WE HADN'T YET BEEN ABLE TO PREVAIL IN CONGRESS, To DECONTROL NATURAL GAS. WELL, YOU KNOW WHAT HAPPENED NEXT. THE WISDOM OF THE MARKETPLACE PREVAILED. - 8 - THAT'S GOOD NEWS FOR CLEAN-BURNING FUELS. AND IT'S GOOD NEWS FOR CLEANER AIR. OUR BILL IS SIMPLE. WE SET A TOUGH STANDARD FOR AIR POLLUTION. WE DON'T CARE WHICH FUEL CAN MEET IT -- AS LONG AS IT'S MET. INSTEAD, WE SUPPORT HARNESSING THE POWER OF THE MARKETPLACE IN THE SERVICE OF THE ENVIRONMENT. - 4 - AFTER DECADES OF DISAGREEMENT, WE WERE ABLE TO ELIMINATE AN ENTIRE SYSTEM OF ARTIFICIAL PRICE CONTROLS, FOR ONE OF AMERICA'S CLEANEST ENERGY RESOURCES. THAT WAS THIS ADMINISTRATION'S FIRST MAJOR ENERGY INITIATIVE -- AND IT WAS A GOOD ONE. GOOD FOR DEVELOPING DOMESTIC ENERGY RESOURCES, so IMPERATIVE TO NATIONAL SECURITY. - 2 - [[ YEARS AGO, YOUR INDUSTRY ADDED AN AGENT TO NATURAL GAS THAT GAVE IT A CHARACTERISTIC SCENT. THAT WAY, IF THERE WAS EVER A LEAK IN SOMEONE'S HOUSE, THEY'D HAVE A BETTER CHANCE OF DETECTING THE LEAK. WELL, IT DOESN'T WORK THAT WAY HERE IN THE WHITE HOUSE. WE HAVE LEAKS IN HERE ALL THE TIME. - 3 - You KNOW, JUST OVER A YEAR AGO I SPOKE TO A GROUP OUT IN MIDLAND, TEXAS. SAID I WAS PROUD THAT OUR ADMINISTRATION HAD DECONTROLLED OIL PRICES -- BUT THAT WE HADN'T YET BEEN ABLE TO PREVAIL IN CONGRESS, TO DECONTROL NATURAL GAS. WELL, YOU KNOW WHAT HAPPENED NEXT. THE WISDOM OF THE MARKETPLACE PREVAILED. - 8 - THAT'S GOOD NEWS FOR CLEAN-BURNING FUELS. AND IT'S GOOD NEWS FOR CLEANER AIR. OUR BILL IS SIMPLE. WE SET A TOUGH STANDARD FOR AIR POLLUTION. WE DON'T CARE WHICH FUEL CAN MEET IT -- AS LONG AS IT'S MET. INSTEAD, WE SUPPORT HARNESSING THE POWER OF THE MARKETPLACE IN THE SERVICE OF THE ENVIRONMENT. - 4 - AFTER DECADES OF DISAGREEMENT, WE WERE ABLE TO ELIMINATE AN ENTIRE SYSTEM OF ARTIFICIAL PRICE CONTROLS, FOR ONE OF AMERICA'S CLEANEST ENERGY RESOURCES. THAT WAS THIS ADMINISTRATION'S FIRST MAJOR ENERGY INITIATIVE -- AND IT WAS A GOOD ONE. GOOD FOR DEVELOPING DOMESTIC ENERGY RESOURCES, SO IMPERATIVE TO NATIONAL SECURITY.