additional modest-sized logical mining units. However, no one contends that railroads could dominate bidding for any federal lease except a lease located in their land-grant checkerboards. But even in the checkerboards much of the best coal is already under control of the energy majors through long term leasing arrangements. Overall in the West, most of the best coal to be offered for lease will be found outside the railroad checkerboards where companies like Rocky Mountain Energy will have to compete vigorously against large utilities and other energy companies. In conclusion, I would like to ask the Committee to examine very closely the empty charges of the trade associations and companies opposing 2(c). Their case, it seems to me, is an emotional one presenting hypothetical cases which cannot possibly occur. In addition, the arguments presented by trade association spokesmen always seem to use the characterization of "independent" coal companies fearing the domination of railroad giants. While this characterization may have had some validity in 1920, it is absurd today and a transparent cover representatives of major energy companies. when used by the Surely this Committee will conclude that these companies do not need the Government to protect them against competition by Western railroads. you own part of 3.3 billion tons Coal has become such an important part of AMAX that today we're the third-largest coal producer in the United States. Our Belle Ayr mine in Wyoming is the single largest U.S. coal mine. And when the expansion of our nearby Eagle Butte mine is completed in 1982, it will rank with Belle Ayr. Together these two AMAX mines alone will have the capacity to produce 40 million tons of coal a year. Most of our coal is sold under long-term contracts to electric utilities which provide America with power for its homes and factories. And because of our outstanding position in coal and other resources, AMAX will continue to take a leadership role-not only in helping America to become energy independent, but also in supplying minerals and energy to meet the demands of America throughout the eighties and beyond. That's good news for our shareholders and our country. Behind each share of AMAX stock are important reserves in a wide variety of minerals and energy. You can find out more in our special report, "Mineral Reserves: Investment in the Future." We'll also be glad to send you "AMAX Update," a summary of pertinent financial data, updated monthly. For your free copies, write to: AMAX MINERALS Investor Relations Department, THE RAILROAD LAND GRANTS WERE NOT "FREE' Coal industry opponents of repeal of Section 2(c) of the Mineral Lands Leasing Act of 1920 have repeatedly asserted that the coal lands owned by Western railroads in the land-grant checkerboards were "received at absolutely no cost" and are therefore "free of royalty and acquisition costs." The industry spokesmen imply that these "free" grants of coal, dating from the mid-19th century, would give railroads an unfair competitive advantage in bidding for federal coal leases in the checkerboard over coal companies who have had to purchase or lease their coal lands. The facts are that the railroad land grants were not free gifts in the first place and that, in addition, the Government has more than recouped the value of the grants by obtaining reduced rates from land-grant railroads for the better part of a century. 1. Union Pacific Land Grants Were Bought and Paid For. In the case of the Union Pacific coal reserves, the claim that the coal was obtained by grant is simply mistaken. The Union Pacific reserves were not granted to the present Union Pacific Railroad Company or to any of its |