FURTHER STATEMENT OF HON. ROSS RIZLEY, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF OKLAHOMA

Mr. RIZLEY. Mr. Chairman. I would like to have put into the record at this point resolutions by the Mid-Continent Oil & Gas Association in respect to the merits of this bill.

The CHAIRMAN. The request of Mr. Rizley will be agreed to, if there is no objection.

(The matter referred to is as follows:)

RESOLUTION WITH REFERENCE TO NATURAL GAS ACT ADOPTED AT ANNUAL MEETING OF THE TEXAS DIVISION OF THE MID-CONTINENT OIL & GAS ASSOCIATION

At the annual meeting of the Texas division, Mid-Continent Oil & Gas Association, held at Houston, Tex., on Thursday and Friday, October 17 and 18, 1946, the following resolution, with reference to the Natural Gas Act, was unanimously adopted:

"In the light of recent orders issued by the Federal Power Commission and court decisions upholding those orders, it is obvious that the authority asserted by the Federal Power Commission has been extended far beyond the limits originally intended by the Natural Gas Act. The Federal Power Commission is now indirectly controlling the production and gathering of gas despite the provisions of the statute exempting production and gathering from regulation by the Commission, and is undertaking in some instances so to regulate the field price of natural gas charged by the producer and gatherer as to yield only a 62 percent return on the depreciated original cost of producing properties and gathering facilities. This gives no consideration to current competitive field prices, or to the discovery value of oil and gas properties. It is apparent that the Commission now will claim that it has jurisdiction over any sale of natural gas by a producer or gatherer to a natural gas company which transports the gas in interstate commerce and sells it for resale for public consumption. Thus, in effect, the Federal Power Commission may now be expected to attempt to declare all such producers and gatherers of natural gas to be natural-gas companies, and subject them not only to ruinous price regulations but also require them to make intricate reports and keep voluminous books specified by the Commission.

"Furthermore, the Commission is exercising control over the end use of gas, which is clearly beyond any regulation intended by Congress in passing the Natural Gas Act, as amended.

"If proper remedial legislation is not enacted by Congress, the field price of natural gas will be so depressed as to bring about a chaotic condition and, in many cases, to require producers to give their gas away. Conservation of natural gas will be dealt a death blow. There will be no incentive left to discover new gas reserves and the reserves of those producers who are so unfortunate as to have made sales to natural-gas companies will be virtually confiscated without compensation.

"In view of these facts and the disastrous effects upon the oil and gas industry which will ensure unless the power now asserted by the Commission is properly curtailed by congressional legislation: It is

"Resolved, That the Texas Mid-Continent Oil and Gas Association in convention duly assembled does hereby express its sentiments as being in full accord with the statements of policy and principles enunciated by the Governor's Committee of Texas and the Mid-Continent Oil & Gas Association; it is further

"Resolved, That Congress should as soon as possible enact legislation clearly limiting the jurisdiction of the Commission in accordance with the original intent of Congress in passing the Natural Gas Act; that is, limiting its jurisdiction to the interstate trunk-line transportation of natural gas and the sale after such transportation is completed for resale for public consumption. The act should be further amended so as expressly to deny to the Commission any authority to regulate (1), directly or indirectly, production and gathering of natural gas, (2) the sale including the price of natural gas sold by the producer or gatherer and, (3) the end use of natural gas."

RESOLUTION WITH REFERENCE TO NATURAL GAS ACT ADOPTED AT ANNUAL MEETING OF THE MISSISSIPPI-ALABAMA DIVISION OF THE MID-CONTINENT OIL AND GAS ASSOCIATION

At the annual membership meeting of the Mississippi-Alabama division, MidContinent Oil and Gas Association, held at Jackson, Miss., on Monday, November 4, 1946, the following resolution, with reference to the Natural Gas Act, was unanimously adopted:

"In the light of recent orders issued by the Federal Power Commission and court decisions upholding those orders, it is obvious that the authority asserted by the Federal Power Commission has been extended far beyond the limits originally intended by the Natural Gas Act. The Federal Power Commission is now indirectly controlling the production and gathering of gas despite the provisions of the statute exempting production and gathering from regulation by the Commission, and is undertaking in some instances so to regulate the field price of natural gas charged by the producer and gatherer as to yield only 62 percent return on the depreciated original cost of producing properties and gathering facilities. This gives no consideration to current competitive field prices, or to the discovery value of oil and gas properties. It is apparent that the Commission now will claim that it has jurisdiction over any sale of natural gas by a producer or gatherer to a natural-gas company which transports the gas in interstate commerce and sells it for resale for public consumption. Thus, in effect, the Federal Power Commission may now be expected to attempt to declare all such producers and gatherers of natural gas to be natural-gas companies, and subject them not only to ruinous price regulations but require them to make intricate reports and keep voluminous books specified by the Commission.

"Furthermore, the Commission is exercising control over the end use of gas, which is clearly beyond any regulation intended by Congress in passing the Natural Gas Act as amended.

"If proper remedial legislation is not enacted by Congress, the field price of natural gas will be so depressed as to bring about a chaotic condition in many cases to require producers to give their gas away. Conservation of natural gas will be dealt a death blow. There will be no incentive left to discover new gas reserves and the reserves of those producers who are so unfortunate as to have made sales to natural gas companies will be virtually confiscated without compensation.

"In view of these facts and the disastrous effects upon the oil and gas industry which will ensue unless the power now asserted by the Commission is properly curtailed by congressional legislation; it is

"Resolved, That the Mississippi-Alabama division, Mid-Continent Oil and Gas Association, in conventional duly assembled, does hereby express its sentiments as being in full accord with the statements of policy and principles enunciated by the Governor's Committee of Mississippi; it is further

"Resolved That Congress should as soon as possible enact legislation clearly limiting the jurisdiction of the Commission in accordance with the original intent of Congress in passing the Natural Gas Act; that is, limiting its jurisdiction to the interstate trunk-line transportation of natural gas and the sale after such transportation is completed for resale for public consumption. The act should be further amended so as expressly to deny to the Commission any authority to regulate (1) directly or indirectly production and gathering of natural gas, (2) the sale including the price of natural gas sold by the producer or gatherer and, (3) the end use of natural gas; it is further

"Resolved, That the executive vice-president of the Mississippi-Alabama division of the Mid-Continent Oil & Gas Association is directed to send copies of this resolution to Representatives and Senators in Congress representing the States of Alabama and Mississippi."

RESOLUTION WITH REFERENCE TO NATURAL GAS ACT ADOPTED AT ANNUAL MEETING OF THE LOUISIANA-ARKANSAS DIVISION OF MID-CONTINENT OIL AND GAS ASSOCIATION

At the annual membership meeting of the Louisiana-Arkansas division, MidContinent Oil and Gas Association, held at Shreveport, La., on Tuesday, November 5, 1946, the following resolution, with reference to the Natural Gas Act, was unanomously adopted:

"In the light of recent orders issued by the Federal Power Commission and court decisions upholding those orders, it is obvious that the authority asserted