839 



legislation, we will be able to point with pride to a concrete piece of 

 legislation which indeed will accelerate off-shore oil and gas production 

 and thus go a long way toward meeting our energy needs. 



The Chairman. The Cliair will state that all time controlled by the 

 gentleman from Delaware (Mr. du Pont) has expired. 



Mrs. SuLLiVAX. Mr. Chairman. I yield such time as he may consume 

 to the gentleman from New Jersey (Mr. Hughes) . 



(Mr. Hughes asked and was given permission to revise and extend 

 his remarks.) 



Mr. Hughes. Mr. Chairman, I wish to express my strong support 

 of H.R. 3981, the coastal zone management amendments and urge my 

 colleagues to support this important legislation. 



The proposed amendment would provide an important new program 

 of assistance which will enable coastal areas, such as my home district 

 in South Jersey, to better plan for and cope with the adverse impact 

 of offshore oil and gas development. 



H.R. 3981 is an outgrowth of some of the work done by the Select 

 Committee on the Outer Continental Shelf, -which has traveled many 

 thousands of miles, and taken a considerable amount of testimony on 

 what happens when oil and gas operations arrive to a frontier area. 

 We found that, time and time again, the local economies of coastal 

 regions — often with small populations — were unable to cope with the 

 strains and pressures brought about by the influx of new people and 

 industry, and the consequent demands for municipal services. Further, 

 the lack of coherent land use plans, and other needed zoning and plan- 

 ning activity, often resulted in a hodge-podge of development seriously 

 detracting from the area's environmental and recreational resources. 



Unlike many areas of the Nation which grew up with oil and gas 

 development, my home area in south Jersey has developed an economy 

 based upon its environmental and recreational resources. Tourism, 

 agriculture and fishing provide the economic mainstay of south Jersey. 

 Tourism alone is the second biggest industry in New Jersey, produc- 

 ing many billions of dollars each year, much of which is generated in 

 the shore points and resort areas of south Jersey. We do not oppose the 

 oi-derly development of our offshore oil and gas resources for the bene- 

 fit of the Nation, but we are deeply troubled and concerned about the 

 massive impacts which will result when a new industry arrives in our 

 State. 



The program proposed by H.R. 3981 will help us cope with those 

 impacts, by providing a two-part system of aid for coastal States in 

 the form of automatic payments based upon OCS leasing and develop- 

 ment, as well as a discretionary program of aid based upon the con- 

 cept of net adverse impacts. 



The first pai't of the program would provide a total of $400 million 

 to States effected by OCS development, commencing at $50 million in 

 fiscal 1977, and increasing to $125 million in fiscal 1981. The automatic 

 payments will be allocated to States on the basis of each State's share 

 of "the total OCS activity in the United States. The amount of OCS 

 activity would !)e determined by averaging six indexes of offshore 

 energy production which includes the amount of acreage leased, the 

 number of wells drilled, the amount of oil and gas produced, the 

 amount of oil and gas landed, the number of energy- related employees, 

 and the amount of capital invested. 



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