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Show Warmer odB shdUe h flo be considered by Seraave commavvee Special to lh Vernal Kxpi ess lly llelcnc ('. Monberg Washington-The bill by Sen. John W. Warner, H-Va., providing for comprehensive development of oil shale resources is due to be marked up in September, a source on the Warner Soate Energy Subcommittee said here on July 31. The same source said the Virginia Senator planned to introduce a tar-sands tar-sands bill prior to the Congressional recess, which is due to occur in midweek. mid-week. The tar-sands bill will also le considered by the Warner Subcommittee Sub-committee in September, he said. Both bills are similar to legislation which has passed the House regarding tar sands and which has cleared the House Interior Committee regarding oil shale. Both bills will be co-sponsored by Sen. Malcolm Wallop, R-Wyo., in the Senate. The House passed last month and sent to the Senate a tar sands bills by Reps. Dan Marriott, K-lltah, and Jim Santini, D-Nev , to provide for a combination tar-sands oil and gas lease. The Interior Department has not issued such a lease in the past Ix'cause the 1920 Mineral Leasing Act was not clear that such authority was provided to the Department. The House-passed Marriott-Santini bill gives it such authority. The now Warner tar sands bill will likewise. The House Interior Committee last month approved an oil shale bill which is almost identical to the Warner bill, on which hearings were held on July 23. The witnesses before the Warner Subcommittee from industry Exxon, RioBIancoOil Shale Co., Multi-Mineral Corp., and Standard Oil of Ohio-endorsed Ohio-endorsed the Warner bill enthusiastically, en-thusiastically, with few caveats. Robert L. Roach of the En vironmental Policy ('enter called the Warner bill "disastrous" and bitterly opposed it. Sen. Gary Hart, D-Colo., testified again in favor of his own oil shale bill - and was the only one at the July 23 hearing to do so. Carrey E. Carruthers, Assistant Secretary of Interior representing the Administration, testified in favor of only the bill by Sen. William L. Ann-strong, Ann-strong, U Colo., providing for a second non-mining lease to allow oil shale leaseholders to use the second lease for disposal of spent shale and construction of retort and other facilities. "If Congress concludes that com-prehansive com-prehansive oil shale legislation should be enacted, we favor the provisions of the Warner bill," Carruthers stated. It would also favor, as an alternative, a very similar bill by Sen. Henry M. Jackson, D-Wash., with some amend monts, he said. But the Administration would NOT support enactment of the Hart bill, Carruthers stressed because "it would serve to increase the cost of oil shale development and would create a significant delay" in oil shale production and shale oil processing. Jack Lyman, speaking for the state of Utah, said Utah would favor the Warner bill if it were amended to assure statutory authority for regional oil shale teams to carry out joint state-federal state-federal planning efforts, some type of provision to assure attected local communities up-front payments for energy impacts, and a concurrent role for the governors of Colorado and Utah to approve or not approve of future federal oil shale leases. However, Lyman's testimony was particularly interesting in one respect it did not seek a gubernatorial veto. "We support the need to include language that would allow the Secretary to override a governor's recommendation if such action is determined to be in the national interest," in-terest," Lyman stated. Lyman also said he thought local impact aid for energy development should a flexible to allow for "new approaches, including prepayment of taxes, rents, royalties, tax incentives for companies to utilize, such prepayment mechanisms, and other incentives to encourage companies to assist local communities." The bill which cleared the House Interior Committee on July 22 under bipartisan sponsorship allows companies com-panies to prepay their local taxes on their own initiative, under an amendment amend-ment sponsored by Rep. Hay Kogovsek, I)-Colo. The Warner bill provides for off-site leasing, like the Armstrong bill. But it also provides for leasing acreage beyond the current restriction of 5,120 acres if the Secretary of Interior determines such additional acreage is necessary to permit long-term commercial com-mercial operations. It allows 1 entity to hold up to two leases per state and four leases nation-wide. It allows for multi-mineral leasing to permit hacite, dawsonite and nahcolite, all sodium minerals to be mined with oil shale. It allows for the mining of small federal holdings to assure recovery of the resource. These provisions are also in the bill reported out of the House Interior In-terior Committee on July 22. The Warner bill contains a judicial review provision which indicates the bill was probably written by industry. It would require that all attacks on leasing decisions of the Secretary of Interior must be brought within 60 days, and injunctive relief against the issuance of any lease would be limited to final decisions only. Carruthers said the Administration would not object to this provision, which the Environmental En-vironmental Policy Center labelled disastrous. In support of his bill, Hart testified on July 23 it would retain the current limits on the number and size of oil shale leases, put a moratorium on further leasing until "adequate" planning is done, and establish guidelines on future leasing. The Hart bill is backed by environmental groups. |