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Show Smith Declares FPC Controls Threaten Natural Gas Industry (NOTE: The following article was written by Mr. A. T. Smith, chairman. Rocky Mountain Region National Gas & Oil Resources Committee, and general counsel of the Continental Oil Co. Denver office.) Regulation of the price at which natural gas producers sell their gas threatens the exploration and of natural development gas throughout the Colorado Plateau region as well as other major gas producing areas. In order to inform the public of the serious situation confronting natural gas producers, the American Petroleum Institute established the Natural Gas and Oil Resources Committee with L. F. Conof President McCollum, tinental Oil Company, as chairman, and Paul Kayser, President of El Paso Natural Gas Company, as vice chairman. This committee is dedicated to giving the public the facts about natural gas. One of the most misunderstood features of the natural gas controversy is the simple fact that the production of natural gas is a highly competitive industry with upwards of five thousand independent producers in the business. The Natural Gas Act of 1938, which was originally passed to regulate the great transmission companies, has now, after sixteen years, been made, by Supreme Court Decision, applicable to natural gas producers. Unlike the transmission lines, the producer has no franchise to find and produce gas. He has none of the exclusive privileges of the pipe line transmission companies. He must compete with all other gas producers and sell his gas in the open market. There is no more reason why the production of natural gas should be regulated than any other commodity. As a matter of fact, there is no other commodity which is now subject to regulation in this county at the point of production except natural gas. As a heating fuel, natural gas competes with oil and coal, neither of which is subject to regulation. Yet, natural gas has, when free of regulation, been able to undersell both. That the regulation of natural gas will result m reduced prices to the consumers is highly doubtful. More likely it will result in reduced supplies. This is particularly so as natural gas producers will be inclined to look for local markets in their own states where the price is free from regulation rather than to sell to the interstate transmission lines where the Federal Fower Commission will have control. One of the most adverse results of this regulation will be the way it will discourage the exploration and development of natural gas as a source of power and energy. This cannot help but greatly reduce values Of oil and gas properties in all producing areas and reduce the royalties which land owners might reasonably expect from exploration upon their lands. The small independent natural gas producer just cannot remain in business if the Federal Power Commission is going to be forever looking over his shoulder and requiring of him burdensome reports and accountings that are required of transmission companies. He does not have the resources and personnel to go through all this red tape. In the interest of the future development "of this great source of power and energy, the natural gas producers must be free of this type of regulation. NEW FIELD HOUSE MUSEUM at Vernal, Utah, where displays of skeletons of dinosaurs found at the proposed Echo Park dam site are kept for public display. The museum was completed only recently and erection of displays Is still underway. It will be the showplace of the Vernal area when fully completed. However You Say It, It's A Mouthful name PANGUITCH, Utah-T- he this southcentral Utah community of about 1,500 people is a little of a tongue twister to newcomers, but they soon learn it is a Piute Indian word meaning or heavy big fish. Panguitch is the county seat of Garfield county and its history of dates back to about 1863 or 1864 when the first settlers driven from Parowan by a drouth migrated into the rich valley. Today, as through the years, agriculture and livestock are the chief mainstays of the economy. Nearby range lands are heavily stocked with herds of cattle and flocks of sheep. Potatoes constitute the prinici-pa- l agricultural crop of the Panguitch area with an average yield of more than 2,700,000 pounds. During recent years the dairy industry has grown in importance and one local creamery has turned out as much as 328,000 pounds of cheese in one year. Almost as important to the economy of the district are the stands ol Ponderosa pine on the plateaus 0 nearby with elevations above feet. A number of lumber companies have contracted with the U. S. Forest Service to selectively harvest the timber annually, collectively producing an annual yield of about eleven million board feet of lumber. We Have Always Had Faith In The Rocky Mountain Regions MINING INDUSTRY We salute the Colorado Plateau area which, at this moment of the beginning of the Atomic Age, is yielding the substance which makes the future of Power possible. Uranium has brought a new promise to your country even as it sparked a new prosperity in your own communities. We are proud of our small contribution toward this revitalization of the mining industry. When, as the newest firm in Denvers financial district, we of featured the underwriting worthwhile uranium stock issues, there were many scoffers but the industry did find new investors . . . and a much needed shot in the arm. Uranium and oil issues will continue to be of interest to us . . . and to our clients . . . and our facilities are always available to you. BARBOUR CONSTRUCTION CO. Underwriter & Distributor of Top Worthwhile Uranium Stocks & CONSTRUCTION GENERAL CONTRACTING F.H.A. HOMES LOANS Municipal Bonds Corporate Securities HEAVY CONSTRUCTION Active Trading Markets Mutual Funds LIGHT COMMERCIAL WESTERN COLORADO'S LARGEST EARL BARBOUR, 2700 North Ave. Grand Junction BUILDERS President Phone 4073 Colorado Carroll Kirchner MAin Suite 400 Denver Club Bldg. & Jaquith, Inc. ? Denver, Colo. t |
