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1975/08/28 - Kent Frizzell
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1534746
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1975/08/28 - Kent Frizzell
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James M. Cannon Files (Ford Administration)
James Cannon's Meetings Files
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The original documents are located in Box 50, folder "1975/08/28 - Kent Frizzell" of the
James M. Cannon Files at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box 50 of the James M. Cannon Files at the Gerald R. Ford Presidential Library
MEETING WITH KENT FRIZZELL
ACTING SECRETARY OF INTERIOR
Thursday, August 28, 1975
4:30 to 6:30 p.m.
Situation Conference Room
OF DEPARTMENT
United States Department of the Interior
OFFICE OF THE SECRETARY
March
1849
WASHINGTON, D.C. 20240
MAR 18 1975
MEMORANDUM FOR:
The Vice Chairman of the Domestic Council
FROM:
Secretary of the Interior
SUBJECT:
Domestic Council Study of National Domestic
Needs and Current Policy Problems
In response to your memorandum of March 11, 1975, I welcome the
opportunity to be of assistance in your task of advising the
President on domestic needs and current policy problems. Below are
presented in priority order five initiatives the Department of the
Interior is proposing in order to address major domestic problems:
A.
I. Initiatives for Energy Independence
The growing role of insecure oil imports in total National energy
supply has brought a new set of problems, centering around higher
energy prices than ever before, threats to the strength of our
foreign policy because of the possibility of import interruptions,
and adverse effects on inflation rates, unemployment and the balance
of payments.
II. Current Policy
Project Independence is the Administration's strategy for greater
energy independence, which is based on the following elements:
-- raising oil and gas prices above their market-determined
levels in order to discourage consumption and imports
*** instituting a number of energy conservation measures,
such as encouragement of more efficient automobiles,
better standards of building construction, and the like
taking actions to increase the supply of energy from secure
domestic sources
2
III. Interior's Role
Interior is primarily involved in the supply-expansion part of the
Project Independence effort:
--- on the Outer Continental Shelf, Interior plans to conduct
six lease sales per year, and open all major frontier areas
to exploration and development by the end of 1978. If this
is done, the production from the OCS could more than triple
by 1985, to about 5 million barrels of oil per day.
closely related to OCS leasing, the Department is developing
proposals for Federal assistance to coastal States based on
OCS activity, supporting increased funding to Coastal Zone
Management planning, and supporting development of the CEQ-
sponsored Oil Spill Liability Act.
-- in coal, Interior is preparing for resumption of coal leasing
on Federal lands, which has been under moratorium for over
four years. Elements of the effort include a regional coal
development study of the Northern Great Plains area, prepa-
ration of an environmental impact statement on a program of
resumed leasing, and comprehensive review and revision of
pre-1971 coal leasing policies. The goal is to make Federal
coal available if it will reduce energy costs, and if the
environment can be protected, but to prevent leasing of
reserves which would be excessive in relation to near-term
production plans.
--- in oil shale, Interior has leased four prototype tracts in
Colorado and Utah, and development is under way. The
Department is now considering ways to lease additional
tracts for in situ development (underground retorting),
which would have substantial environmental advantages.
-- in geothermal, the Department has well underway a program of
geothermal leasing.
-- Interior is managing, in various stages, the development of
major new energy supply facilities, the two leading examples
of which are the Trans-Alaska Oil Pipeline, now under
construction, and the competing proposals for gas pipelines
from the Alaska North Slope, on which feasibility studies
and environmental analyses are now being conducted.
Interior continues to be a major factor in generation and
distribution of hydro-electric power.
3
Energy-related R&D which remains after formation of ERDA,
especially in the Bureau of Mines and U. S. Geological
Survey, is of supporting importance to the overall energy-
independence effort.
B.
I. Initiative to increase Federal assistance to States for the
acquisition, development, and operation of parks
Public demand for outdoor recreation has grown significantly in recent
years but so have the costs of providing it. More and more, States
and the Congress are turning to the National Park Service to provide
essentially local recreational services because of the growing costs.
This movement is beginning to erode the National Park Service's
mission and capability to administer the truly national parks. The
President should consider legislation to increase the level of grants
to States for park acquisition and development and to give Interior
the authority to make operational grants for larger state parks.
II. Present Policy
The President's FY 1976 budget requests appropriations of $300 million
from the Land and Water Conservation Fund for park acquisition,
$180 million of which would go to the States under a matching grant
program. The $300 million is the authorized limit. The purpose of
this program is to encourage States to increase their role in meeting
growing outdoor recreation demand.
III. Interior's Role
Interior maintains the national park system and administers the state
grant program of the Land & Water Conservation Fund. However, unless
our State grant authority is increased and broadened in scope to permit
us to assist States in the operational costs of large State parks,
the national park system could become inundated with parks of less than
national significance which will decrease our ability to adequately
preserve the traditional and unique national parks. Presently, States
lack adequate incentives to acquire and operate large parks when the
opportunity exists for the Federal government to acquire and maintain
these same parks at no cost to States and local governments.
C.
I. Creation of opportunities for greater self-determination
for Indians
The special relationship between the Federal Government and Indian
tribes, arising from treaties, trust relationships, and Federal
4
laws, has in the past had a tendency to generate an atmosphere of
paternalism which has impeded self-determination.
II. Current Policies
The Nixon Administration coined the phrase "self-determination"
in the President's Indian Message of 1970. In that message,
the President initiated the policy that Indians would be given
a greater opportunity to determine how their special relation-
ship with the Federal Government could be improved and to
help administer the Federal programs which serve Indians.
-- In December 1974, President Ford signed into law the Indian
Self-Determination and Education Assistance Act. This law
sets forth Indian self-determination as Federal policy and
creates institutional mechanisms by which Indian tribes can
achieve greater control of the administration of Federal
programs.
III. Interior's Role
Interior has taken numerous actions to implement the Administration's
self-determination policy, such as:
the establishment of a mechanism for the direct participation
of tribes in the annual formulation of the budget of the
Bureau of Indian Affairs;
the promotion of tribal administration of Federal programs
through contractual relationships as a substitute for direct
Federal administration;
the promotion of block grant authority which Congress did
not act on;
the promotion of an expanded financial loan and grant program
which was enacted last year;
-- the creation of comprehensive on-the-job training programs
which also provide employment and ultimately the creation of
Indian owned and operated business enterprises.
Currently, the Department is developing the necessary regulations to
implement the Indian Self-Determination and Education Assistance Act.
Upon the completion of the regulations and implementation of the Act,
the manner in which the Bureau of Indian Affairs provides its services
should change significantly. The Department will need the continued
strong support of the President in order to convince and assure
Indian leaders that these changes mean a stronger and improved
5
relationship between the Federal Government and Indians and not a
termination of this special relationship.
D.
I. Creation of a Department of Energy & Natural Resources
Presently, responsibility for Federal energy and natural resources
policy formulation and programs is spread among 11 agencies which
employ 165,000 people and spend over $16 billion annually. In
recent years, the creation of EPA, FEA and ERDA to deal with specific
problems in a crisis atmosphere has significantly increased the
difficulty of formulating coherent energy and natural resource
policies, and of shaping programs to solve problems in a comprehensive
manner.
II. Current Policy
The Nixon Administration proposed legislation to create a DENR in
1971 and again in 1973, but Congress refused to act in both instances.
III. Proposed Action
A major obstacle, both in the Congress and within the Executive
Branch, is the jurisdictional problem of which agencies and activities
should be folded into a DENR and which should remain independent.
The President should consider appointing a prestigious and independent
panel to review past proposals and make recommendations within a
three-month time span. The President should then consider reintro-
ducing legislation for the creation of a DENR, if and as recommended
by the Panel.
E.
I. Land Use Planning
Land management institutions and procedures at the State level need to
be strengthened to better resolve major land use issues affecting more
than one governmental jurisdiction and to implement the resulting
decisions through exercise of State and local authority.
II. Current Policy
In accordance with the President's already announced moratorium on
new Federal spending programs, the Administration will not now introduce
new land use management assistance legislation. However, ways should
be available under existing authority to encourage States to take the
needed initiative.
6
III. Interior's Role
The Secretary is directing the Department's Office of Land Use and
Water Planning to develop a series of recommendations over the next
two months for the Administration's consideration.
Employment Stimulation
There are two major areas under Interior's jurisdiction which have
potential for stimulating increased employment in the private sector,
namely:
rehabilitation of facilities in National Parks and Wildlife
refuges
acceleration of road and facilities construction and
rehabilitation on Indian reservations.
Because of tight fiscal policy over the past several years, we have
deferred rehabilitation work on many facilities located in National
Parks and Wildlife refuges. Funds which could have been used for this
rehabilitation work were allocated instead to prepare and staff a
growing number of new parks which Congress recently authorized. We
are approaching a point now, however, where we will have to replace
rather than rehabilitate many of these facilities if we continue
deferral of this work. Currently, we have a backlog of rehabilitation
work of approximately $200 million. If we were to be appropriated
that amount we could start awarding contracts within a month's time
which could generate between 20,000 - 30,000 jobs (mostly unskilled)
over the next year. We could implement such a program rapidly
because the relatively simple design work has essentially been
completed. Such a program would accomplish both long-term program
needs, i.e. it is not make-work, and it would create jobs at a low
skill level where unemployment usually hits the hardest.
The need for new roads, schools and other support facilities on Indian
Reservations is great. In addition, there is also need to rehabilitate
existing roads and facilities, many of which are in very poor condition.
The Department has been spending over $100 million annually for con-
struction and rehabilitation of these facilities. However, greater
funding for this activity could only have come from other Indian
program resources--the depletion of which would have been detrimental
to overall Indian welfare. With improved infrastructural investment,
Indian reservations would be more susceptible to economic development
and Indian children would have greater opportunity to learn and
eventually guide and manage reservation development.
7
Infrastructural development on reservations could be accelerated to
a higher level. I would suggest that we could accommodate a $100 mil-
lion increase at this time. However, it would require some time for
planning and design so that private sector employment effects would
be delayed until this preliminary work was accomplished. Nonetheless,
this type of program would affect Indian unemployment which is greater
in degree than general unemployment and which tends to be chronic
rather than cyclical in nature. Finally, one of the major factors
behind a myriad of Indian problems is the lack of job opportunities
on Indian reservations. This kind of initiative would therefore
produce many faceted benefits for Indians in addition to reducing
unemployment.
Rogers Marton