NO II 1 I I.IKI \\ OLD FOSSIL MM 



815 



Senate provision offered a golden opportunity for the Congress to 

 seize the initiative and move the Nation off the dime toward early 

 production ot synthetic natural gas, oil, and gasoline. 



The day alter the Senate acted, on August 1 Hechler wrote to 

 ERDA Administrator Seamans asking ERDA's reaction to sections 

 102 and 103. Dr. Seamans did not immediately respond, so an urgent 

 inquiry was again dispatched. On September 9 ERDA indicated that 

 the Interior Department opposed section 102 because of its effect on 

 mineral leasing laws, and that although there were problems with 

 section 103, ERDA supported it. Dr. Seamans also recommended in his 

 September 9 letter against using loan guarantees for renewable re- 

 sources (solar, geothermal, et cetera) which had been included in the 

 Senate bill. 



Early in September, Teague assembled the Science Committee 

 members nominated to serve on the conference committee: Downing, 

 Hechler, Fuqua, Brown, Flowers, Symington, McCormack, Mosher, 

 Bell, and Goldwater. A majority of the conferees favored making what- 

 ever adjustments were necessary with the Senate on sections 102 and 

 103, and getting on with the job of bringing synthetic fuels to a point 

 of commercialization. At this stage, Members on both sides of the aisle 

 favored an early meeting with the Senate conferees, to bring the entire 

 authorization bill to the floor so the energy program could proceed. 

 President Ford had remarked earlier in the year that the Congress was 

 "chicken" on the energy issue, and Members did not want this charac- 

 terization to be proven true. Hechler did not argue substance at the 

 outset, but said he opposed the procedure of accepting a major Senate 

 amendment without a hearing. Teague decided to assemble the full 

 committee for a briefing on September 18 by ERDA and the 

 administration. 



REACTIONS TO LOAN GUARANTEES 



In advance of the briefing, Teague asked a large number of indus- 

 trial and environmental representatives to submit statements on their 

 reactions to loan guarantees. Among the organizations supporting 

 early enactment of the loan guarantee provisions were American Gas 

 Association, Texas Eastern Transmission Corp., Dow Chemical, the 

 Oil Shale Corp. ("TOSCO"), Western Gasification Co. ("WESCO"), 

 Pacific Coal Gasification Co., and Koppers Co. Among opponents were 

 Exxon and L T nion Oil of California, who felt they did not go far 

 enough; and a number of environmental groups. Many respondents 

 urged public hearings. 



The committee started to split into two camps: A majority, led 

 by McCormack and most of the Republicans, supported loan guaran- 



