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Show mm l f . i t , 'aI The National Enterprise , August 18, 1976 , Page three Leasing Rules Put Coal on Back Burner The impact of the Coal Leasing Act Amendments passed into law by Congress over President Fords veto is drawing mixed assessments from all comers. Congress, on the one hand, is saying their law can be wrapped into Interiors new coal program without significant delays. Interior Secretary Kleppe, on the other hand, said sections of the law would delay and make more difficult a move to energy independence. And one official of the American Mining Congress, general counsel Charles Cook, said a five-yedelay in implementing any coal policy was a realistic assessment. Regardless of who you talk to, the impact of Con-- , gress bill on the program outlined by Interior last spring is, at best, fuzzy. ar Contradictions abound and according to Chuck Dietrich, attorney for Utah Inn ternational, a dollar mining and construction company, there is evidence in records behind the bill that Congress didnt intend to do the things it did. The administration was finally moving on the right track. There was evidence in Washington of interest in getting a workable coal leasing program going, Dietrich said. multi-millio- Cobe Labs to Spend $2.4 Million LAKEWOOD Cobe Laboratories (OTC 21.25, 22.25) has said it will spend $2.4 million for expansion at four tions. loca- The manufacturer of medical therapeutic systems said it will expand its headquarters plant at Lakewood and a manufacturing plant in Irvine, Calif, and is building new distribution centers in Atlanta, Ga. and in Cranbury, N.J. Art Scott, a spokesman for the company, said an investment of $1.55 million would be made at the main plant alone to increase capacity by 57,000 square feet. At the South Brunswick Industrial Park, in New Jersy a 26,000 square foot building is nearing completion, he said. It will be both a manu- facturing and distribution plant representing an investment of $700,000. Additional warehousing space will be added in Irvine and in Atlanta, Cobe is leasing a 16,000 square foot building. JB s Begins Construction J.B. Big Boy has begun construction on a new 3200 But. he added, the re- bidding also trouble the indusquirements for a development try spokesman. Under Conplan within three years and gress law, 50 percent of lands production within ten are def- leased will be on a deferred initely detrimental to the coal payment system, and no bids will be accepted for less than industry. fair market value. The Interior program calls for competiForfeit His Lease tive leasing with front-enUnder provisions of the bonus payments. And the law , a developer must within USGS will determine the minithree years provide an opera- mum acceptable bid. tion and reclamation plan. First of all. the competiin tive bidding system eliminates Within ten, he must be to failure the right of any individual or production. Upon meet either requirement, a group to prospect and file developer will forfeit his lease. claims on the property. Both But before the ball can programs, then, eliminate the even begin rolling, the U.S. preference right lease. InGeologic Survey (USGS) must stead, bidding will be open to first produce an environeveryone and anyone with the mental impact statement of result that the small proscoal development on all fedpector will be outbidded by a better heeled giant. But even erally owned coal lands. Most people in Washing- the giant enters the bidding ton, Dietrich believes, labor process with little notion of under the misconception that what fair market value is. once coal leases are issued, Illustrating this point, David people will immediately open T. Sanders, president of a mine and sell their coal on Sanders Exploration, Limited, the spot market. In many said bids could range on the cases, he said, the market has same lease from $1 million to with neither not been, and is still not there. $50 million Utah International has party knowing what the fedtried numerous times to locate eral government deemed markets for its coal, and with fair. and whatever is bid in little success, he said. A excess of what that value is combination of an energy deemed to be, is utterly crisis making coal a more wasted. valuable fuel and environmental difficulties associated with Royalty Increase burning eastern coal have A royalty increase to 12.5 merged to create the climate for the publics acceptance of percent of the value of the coal is also burdensome to industry such provisions, he said. If hes faced with losing under Congress law. The his lease in three years for Interior had set a royalty of failure to submit a developeight percent which could be ment plan, or go into produc- reduced to no lower than five. tion with no market, how Congress may consider lowerwilling is a developer going to ing the royalty for coal mined be to invest in any coal underground. Naturally, this provision development? he said. takes money from the till, but Dietrich contends it was inEliminates Prospector cluded to satisfy the argument Provisions for competitive Continued on Page Ten square foot restaurant at 911 Fort Union Boulevard (7200 South), valued at $140,000. This w'ill be a full restaurant without service facilities, said Dick Huntington, vice president of development. He added J.B.s is leasing the property drive-i- n from Dr. Nich Vidalakis of Hermes, Associates. Targeted completion date is November 1, 1976. Huntington estimated the restaurant will employ 35 people and seat 100 patrons. Ron Stacey is constructGlen ing the building. Ashton Lloyd is the architect. d TMs was oince a tamcMoad off gairlbag. For 15 years, the Clear Air Solid Waste Disposal System has been reducing garbage volume by 90, converting it to a valuable energy resource, and doing it more efficiently than any other system on the market today. Us y'luii There never be a shortage of garbage, only a shortage of space to put it. As this problem becomes increasingly acute. Clear Air, Inc. will continue to pioneer the most efficient systems of solid waste disposal and materials recovery recycling-wi- th energy generation in the bargain. EPA standards? We exceed them all. Clear Air. Inc..'.. meeting the needs of the future. will Clear HUM ac. 37 Comet Av. BaHalo, N.Y. 14216 A W P.O. Boa 111 Utah S4402 0(dn, A V P.O. Boa Bartlatt. IIL H M103 ri i i i i i i i i i i i i i i i i i i i i i I yu Covered With over 1600 stock quotations, news articles, earnings reports, corporate profiles, market columns and feature stories, the National Enterprise covers the OTC securities market from coast to coast. behind closed doors of We make it our business to know what's going on in the industry-fro- m corporate board rooms to changing securities laws and regulations. We'll keep you posted on the latest developments and abreast of current trends. 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