1. That approximately 36,000 acres of potential yarding areas in the general locations shown on plate I be acquired as a part of the Federal cost of the project. 2. That funds be made available to the Maine Division of Inland Fisheries and Game, as a part of the Federal cost of the project, to enable that agency to undertake the four mitigation activities discussed above, viz headquarters complex construction, planning and survey development of deer and waterfowl habitat, and operation and maintenance of the developments.

3. That Federal lands and waters acquired for mitigation of wildlife resource lossess be made available for administration by the Maine Department of Inland Fisheries and Game under a General Plan for Fish and Wildlife Management in accordance with provisions of the Fish and Wildlife Coordination Act.

4. That Federal lands and waters acquired for project purposes other than mitigation of wildlife losses, exclusive of portions which may be reserved for intensive development for general recreation or for safety, efficient operation, or protection of public property, be made available for administration by the Maine Department of Inland Fisheries and Game under a General Plan for Fish and Wildlife Management in accordance with provisions of the Fish and Wildlife Coordination Act. Sincerely yours,

RICHARD E. GRIFFITH, Regional Director.

RECENT DEVELOPMENTS IN THE PETROLEUM PRICE

AND SUPPLY SITUATION

(Inserted by Mr. Conte)

EXECUTIVE OFFICE OF THE PRESIDENT,
OFFICE OF EMERGENCY PREPAREDNESS,
Washington, D.C., November 12, 1970.

GOVERNMENT TO INVESTIGATE GULF CRUDE PRICE INCREASE

George A. Lincoln, director of the Office of Emergency Preparedness, announced this morning that the decision of the Gulf Oil to increase its crude oil price by 25 cents per barrel will be the subject of an investigation required by the basic oil import proclamation.

He announced his decision after consultation with Paul W. McCracken, chairman of the Council of Economic Advisers, who also will take a major role in the inquiry which will focus on the reasons for and consequences of the increase.

The Oil import proclamation requires the OEP Director to "maintain a constant surveillance of imports of petroleum and its primary derivatives in respect of the national security" and "in the event prices of crude oil or its products or derivatives should be increased after the effective date of this proclamation, such surveillance shall include a determination as to whether such increase or increases are necessary to accomplish the national security objectives of the act of July 1, 1954, as amended, and of this proclamation."

The director said that he would seek the assistance of the Department of Justice and of the Department of the Interior, and other departments of government the proclamation requires he consult, in getting at the facts necessary for a recommendation to the President concerning the national security implications of a price increase at this time.

[From the Federal Register, Nov. 17, 1970]

OFFICE OF EMERGENCY PREPAREDNESS-CRUDE OIL AND GASOLINE NOTICE OF INVESTIGATION OF RECENTLY ANNOUNCED INCREASES IN PRICES

Section 6 of Proclamation No. 3279, as amended, requires the Director of the Office of Emergency Preparedness to maintain constant surveillance of imports of petroleum and its primary derivatives in respect to the national security and to inform the President of any circumstances which, in the opinion of the Director, might indicate the need for further Presidential action under section 232 of the Trade Expansion Act of 1962. That section also provides that in the event prices of crude oil or its products or derivatives should be increased after the effective date of that Proclamation "*** such surveillance shall include a determination as to whether such increase or increases are necessary to accomplish national security objectives ***."

Notice is hereby given that the Office of Emergency Preparedness, with the assistance of the Department of Justice and the several Departments referred to in section 6 of Proclamation No. 3279, as amended, will conduct an investigation of increases in prices of crude oil and gasoline recently announced by certain producers and refiners of petroleum. Interested parties may file information or comments concerning the subject matter of this investigation until December 1, 1970. All such information and comments should be submitted in writing, and 25 copies of each such submission should be provided. All such submissions should be addressed to: Director, Office of Emergency Preparedness, Washington, D.C. 20504.

Information which would disclose confidential business data or operations within the meaning of section 1905 of title 18 of the United States Code or section 552(b) (4) of title 5 of the United States Code, will be accorded confidential treatment if submitted in confidence. All information submitted in confidence must be on separate pages marked "Business Confidential." All information and comments submitted pursuant to this notice, except "Business Confidential" information submitted in accordance with the preceding sentence, will be available for inspection or copying. A list of persons submitting information pursuant to this notice will be maintained and will be available for inspection and copying. Dated: November 16, 1970. G. A. LINCOLN,

Director, Office of Emergency Preparedness.

[F.R. Doc. 70-15548; Filed, Nov. 16, 1970; 11:09 a.m.]

CONGRESSIONAL COMMENTS ON OIL PRICE INVESTIGATION

Hon. GEORGE A. LINCOLN,

Director, Office of Emergency Preparedness,
Washington, D.Č.

December 1, 1970.

DEAR GENERAL LINCOLN: We, the undersigned members of the House of Representatives, hereby submit comments in response to the Federal Register Notice of November 17, 1970, "Crude Oil and Gasoline, Notice of Investigation of Recently Announced Increases in Prices" (F.R. Doc. 70-15548).

We should like to make some initial general comments, to outline specific factors and questions for consideration in your investigation, and finally to recommend certain courses of action.

GENERAL COMMENTS

First, we commend you, Dr. McCracken and others in the Executive Branch for instituting this investigation under the authority of Section 6(a) of Presidential Proclamation 3279, as amended. We consider a review of petroleum prices to be long overdue; we are pleased that the responsibility imposed on the Office of Emergency Preparedness and Council of Economic Advisers under the Proclamation is being exercised.

Because of the failure of the Executive Branch to act in so many cases of price increases in the past, your responsibility is particularly heavy now.

Second, we urge that you take interim action necessary to roll-back the recent price increases, pending completion of your investigation. As you know a number of companies, the most significant being Humble Oil, have announced increases since the announcement of the investigation. This arrogant action by the majors is, we believe, a direct challenge to your authority and to the public interest and may render the investigation useless.

Third, we urge that the investigation be thorough and incisive. We are aware that some have expressed concern that there may be only a cursory examination of limited evidence, an innocuous report and no action. These critics have pointed to the tone of the letter sent by OEP last week to the major oil companies, requesting the submission of evidence, and have expressed the fear that this letter may reflect a decision to "go easy" on the companies.

Fourth, we believe that the burden of proof to justify the recent crude oil and gasoline price increases rests with the major oil companies; it is they who must justify maintenance of the rigid import controls on crude oil, which make it possible to institute such price rises. The domestic crude oil market is insulated from the world market and protected from competition.

Those who wish to maintain this deviation from our free enterprise systemand who wish at the same time to raise prices-must bear a heavy burden of proof. They cannot merely provide you with declaratory statements about "national security"; they must provide convincing, factual data.

Fifth, as you are undoubtedly aware, over the past few years crude oil and petroleum product price increases have contributed significantly to the inflationary pressures in our economy. As you will recall the "inflation alert" issued by the Council of Economic Advisers several months ago highlighted the impact of petroleum price increases. And a significant factor in the sharp consumer price increases in October was also higer fuel costs.

The recent price moves, if allowed to stand, will mean nearly $2 billion in added annual costs in our economy. This one-cent per gallon rise in gasoline prices will cost American consumers nearly $1 billion per year; a one-cent rise in home heating oil will cost consumers along the East Coast nearly $150 million per year and those in the Middle West nearly $50 million. Oil is an essential product; increases in its cost are felt throughout our economy. But the impact is particularly severe for low and middle income consumers.

If we are to fight inflation this must be the place to start, for petroleum imports, and hence prices, are under the direct control of the Executive Branch. This is the only area in our economy where the Government has so much influence over prices and so much responsibility to act.

SPECIFIC QUESTIONS

In the interests of an effective investigation we strongly urge you to examine carefully, and seek serious responses and comment from the oil industry to the specific questions and factors set forth in an Appendix to this letter.

As you know, many of us have, over the past several years, urged substantial changes in the Oil Import Program to stabilize petroleum prices, cool the inflationary pressures in our economy and strengthen U.S. security. The evidence of recent months has demonstrated that the present import control system both weakens our security and is a major cause of inflation. We believe that the conclusions reached earlier this year by the Cabinet Task Force on Oil Import Control, supported by the Secretary of State, Secretary of Defense, the Council of Economic Advisers and you are even more relevant today: "The present import control program is not adequately responsive to present and future security considerations. . . . The present system . . . has imposed high costs and inefficiencies on consumers and the economy, and had led to undue government intervention in the market and consequent competitive distortions."

We hope that your investigation will be a thorough, serious one and will help to educate the American people to the facts and the reality of present U.S. oil policies. The Cabinet Task Force Report contains much data relevant to the current investigation; we trust that you and your staff will make full and effective use of that Report.

While we are not privy to all the facts and intra-corporate manipulations of the major oil companies, we do not believe that the recent increase in crude oil and gasoline prices are warranted either from the point of view of national security or from the point of view of our national economic interests. We believe that these increases, as in the case of past increases, will not only lead to higher profits by the big oil companies, but will also sap our nation's strength through more inflation in our economy.

PROPOSED ACTIONS

We therefore urge that your investigation give careful consideration to the following steps to reverse these prices increases:

(a) Immediate decontrol of imports of crude oil and other petroleum products from Canada.

(b) Substantial relaxation of import controls on crude oil from the Western Hemisphere.

(c) Immediate decontrol of No. 2 fuel oil imports into the East Coast. (d) Permanent removal of crude oil production on Federal lands from state pro-rationing controls. We understand that this has already been a matter of serious discussion by the Oil Policy Committee.

(e) Suspension of the provisions of the Connally "Hot Oil" Act, as authorized by U.S. Code, Title 15, Sections 715 et. seq.

(f) Immediate decontrol of residual fuel oil imports into Districts II through IV.

We also urge that under the authority of Section 6(a) of Presidential Proclamation 3279, as amended, you order an immediate investigation of:

(a) The cargo price increases of No. 2 fuel oil for delivery to the U.S., East Coast instituted by Esso and Shell in August, 1970 in the Caribbean; we understand that within three weeks these two companies raised the price from 5.5 to 8.5 cents per gallon, more than 30 percent.

(b) The cargo price increases of No. 2 fuel oil instituted by Humble and and other refiner-suppliers on the East Coast over the past two years.

(c) The cargo price increases of No. 6 fuel oil instituted by Humble and other refiner-suppliers throughout the country over the past year; in some instances these increases have been more than 100 percent.