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REPEAL OF PROHIBITION OF RAILROAD

OWNERSHIP OF COAL LEASES

HEARINGS

BEFORE THE

SUBCOMMITTEE ON
ENERGY AND MINERAL RESOURCES

OF THE

COMMITTEE ON
ENERGY AND NATURAL RESOURCES

UNITED STATES SENATE

NINETY-SEVENTH CONGRESS

FIRST SESSION

ON

S. 1542

A BILL TO AMEND THE MINERAL LANDS LEASING ACT OF 1920

SEPTEMBER 11 AND OCTOBER 1, 1981

Publication No. 97–32

Printed for the use of the
Committee on Energy and Natural Resources

U.S. GOVERNMENT PRINTING OFFICE

85-444 O

WASHINGTON: 1981

COMMITTEE ON ENERGY AND NATURAL RESOURCES

JAMES A. MCCLURE, Idaho, Chairman MARK O. HATFIELD, Oregon

HENRY M. JACKSON, Washington LOWELL P. WEICKER, JR., Connecticut J. BENNETT JOHNSTON, Louisiana PETE V. DOMENICI, New Mexico

DALE BUMPERS, Arkansas MALCOLM WALLOP, Wyoming

WENDELL H. FORD, Kentucky JOHN W. WARNER, Virginia

HOWARD M. METZENBAUM, Ohio GORDON J. HUMPHREY, New Hampshire SPARK M. MATSUNAGA, Hawaii FRANK H. MURKOWSKI, Alaska

JOHN MELCHER, Montana DON NICKLES, Oklahoma

PAUL E. TSONGAS, Massachusetts JOHN P. EAST, North Carolina

BILL BRADLEY, New Jersey JOHN HEINZ, Pennsylvania

MICHAEL D. HATHAWAY, Staff Director

CHARLES A. TRABANDT, Chief Counsel
D. MICHAEL HARVEY, Chief Counsel for the Minority

SUBCOMMITTEE ON ENERGY AND MINERAL RESOURCES

JOHN W. WARNER, Virginia, Chairman JOHN HEINZ, Pennsylvania

SPARK M. MATSUNAGA, Hawaii GORDON J. HUMPHREY, New Hampshire J. BENNETT JOHNSTON, Louisiana MALCOLM WALLOP, Wyoming

DALE BUMPERS, Arkansas FRANK H. MURKOWSKI, Alaska

BILL BRADLEY, New Jersey JAMES A. McCLURE and HENRY M. JACKSON are Ex Officio Members of the Subcommittee

ROGER SINDELAR, Counsel

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CONTENTS

112

15

70

90

9

6

10

106

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REPEAL OF PROHIBITION OF RAILROAD

OWNERSHIP OF COAL LEASES

FRIDAY, SEPTEMBER 11, 1981

U.S. SENATE,
SUBCOMMITTEE ON ENERGY AND MINERAL RESOURCES,
COMMITTEE ON ENERGY AND NATURAL RESOURCES,

Washington, D.C. The subcommittee met, pursuant to notice, at 10:15 a.m., in room 3110, Dirksen Office Building, Hon. John W. Warner presiding.

Present: Senators Warner, Bumpers, and Melcher.

Also present: Roger Sindelar, counsel; D. Michael Harvey, chief counsel for the minority; and Ron Andes, congressional fellow. OPENING STATEMENT OF HON. JOHN W. WARNER, A U.S.

SENATOR FROM THE STATE OF VIRGINIA Senator WARNER. Today the Subcommittee on Energy and Mineral Resources will receive testimony on S. 1542, a bill introduced by my colleagues, Senators McClure and Jackson. The bill would repeal section 2(c) of the Mineral Leasing Act of 1920.

Section 2(c) currently prohibits a company or corporation operating a common carrier railroad from holding Federal coal leases unless the coal produced from such leases is used for railroad purposes.

There was concern expressed by Congress at the time 2(c) was enacted-I believe it was in 1920—that certain western railroads might attempt to dominate the production of coal if they were permitted to hold Federal coal leases.

There are those, both within Congress and outside, that believe that while this concern may have been valid in 1920 it has outlived its usefulness. The Chair has no opinion on this.

Today we will receive testimony from the administration and from railroad companies in support of S. 1542. We will also hear testimony in opposition, each for their own reasons.

The committee will hold a second day of hearings on October 1, at 10 a.m.

This Chair is due to be at a meeting at the White House shortly after 11 o'clock, and I am going to ask those who are appearing today to submit their statements in their entirety for the record and summarize the major points you want me to focus on. I have read every statement which was in my possession last night, which were six statements. Therefore, it is unnecessary to have the statements reread to me this morning. [The text of S. 1542 follows:)

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