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was a national expansion. There are today virtually no major markets that are not being served and, as a consequence, the pipeline companies that serve these areas are now beginning to compete very sharply for the increasing segment of the load in each of these major markets. As the demand in the community rises, we find that one pipeline comes before the Commission to request a certificate to serve the community and before long another pipeline comes in with what it regards as a superior proposal. It is our responsibility to weigh among those proposals and, indeed, to suggest modifications where we think they will best serve the needs of the community. This particular type of competition has become a significant factor in our certificate and rate cases and challenges our administrative policies.

A related question is policy regarding importation of gas-from Canada today but, foreseeably, in liquefied form in the near future, from overseas. As the committee may have noted recently, there was an agreement negotiated between two American producers to transport large volumes of liquefied natural gas from Alaska to Japan. This particular application has been submitted to the Commission for processing and is now before us.

Questions of policy are now being considered on a case-by-case basis. Much can be said, however, for treating them instead in a broader context, such as might be possible under a national gas survey.

Air pollution.-Air pollution doubly concerns the Commission because of our responsibilities respecting electric utilities and because of our role in certificating additional gas service which may, at least arguably, be a means to alleviate pollution. Although the Department of Health, Education,

and Welfare has primary responsibility in this area, we believe the Federal Power Commission probably has a specialized contribution to make. Here, too, it may be desirable to undertake a broad survey approach to the steps which could be asked of the gas and electric industries.

Area rates for gas producers.—This is perhaps one of our most difficult problems. The Commission is regulating sales by gas producers to pipeline companies on a production area basis instead of a public utility basis.

The first area rate case, involving west Texas and part of New Mexico was appealed to the Tenth Circuit Court of Appeals which sustained the overall approach and affirmed some parts of its application but reversed others. We have requested the Solicitor General to take this case to the Surpeme Court, and hope to have a definitive decision in about a year.

The second area rate case, involving a portion of Louisiana, is now before us on exceptions to the presiding examiner's decision, issued December 30, 1966. Two further cases involving areas in Texas, Oklahoma, and Kansas are now being briefed to the examiners. In the meantime, an attempt is being made to achieve a settlement of at least part of the issues in the last three of these cases. The three major segments of the industry, the producers, the pipeline companies, and the distribution companies, have come to the Commission staff on their own initiative and are engaged in settlement discussions with them. It is very difficult to predict today how fruitful those efforts will be but I think it is encouraging that they are going forward. The areas covered by the four cases account for about 79 percent of the sales subject to Commission jurisdiction. A fifth proceeding was initiated this year and

will bring our coverage to about 93 percent of the jurisdictional sales. The area rate approach has permitted us to consolidate hundreds of separately docketed proceedings in a single case and will, we believe, permit us to overcome the backlog of producer rate cases in a relatively brief period. We should note, however, that these are involved and hard-fought cases involving hundreds of parties. The first case, which is a pathbreaker and with good luck will be determined by the Supreme Court next year, has been before the Commission for a period of about 5 years. I can't honestly claim these cases are going through like lightning. It is a slow process. Realistically, it seems to us and to most observers of our work the only reasonable approach to what may well be the most difficult burden ever given to an administrative agency.

Backlog of hydroelectric applications.- In times past, the Federal Power Commission has had serious backlogs of cases which were hardly moving along in a number of substantive areas. I am glad to report that in most areas we are now current in our work or are approaching that status.

However, there is a backlog of hydroelectric license applications under part I of the Federal Power Act. With present staff resources, we can move only very slowly to eliminate this backlog which largely involves situations in which applications have been filed for a license to cover a project which has already been constructed. In short, we are not delaying those applicants who would like to construct new hydroelectric projects. This is an effort to license projects that have earlier been constructed and which are subject to the Commission's jurisdiction. There are over 140 pending applications in this category. Moreover, there are about 135 more such situations in which the owner of the project has agreed to file within the next few years a license application for a constructed project.

Hydroelectric licensing, by its nature, demands individual attention to each project. With our present staff, it will be several years before we can actually license every constructed project which is subject to our statutory jurisdiction. I think a fair average time devoted to each application is somewhere on the order of a calendar year. This flows from the necessity to assure ourselves on all aspects of the application, and to seek_the advice and views of interested Governmental agencies, at the Federal, State and local level.

Mr. Chairman, this is necessarily no more than a sketch of the challenges confronting us and a hasty review of the organization and the work of the Commission.

My colleagues may wish to add their own views.

I am sure we would all welcome your questions. I can assure the committee that the members of the Commission are not usually so silent when the Commission meets.

Thank you, Mr. Chairman.
(The documents submitted with the formal statement follow :)

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Pipeline Division
Producer Division

Area Rate Division
Analysis and Procedures Division


Division of Licensed Projecto
Division of Rates and Corporate Regulation
Division of Electric Resverens

and Requirements Division of River Basins

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Organization of the Federal Power Commission (number of positions as of Jan. 1,


Number of Organization:

positions Commission and Executive Director..

34 Office of the Secretary---

10 Office of Hearing Examiners

29 Office of Special Assistants to Commission.. Office of the Comptroller.

23 Office of Economics..

25 Office of Management Analysis

46 Office of Personnel Programs...

18 Office of Public Information.

10 Office of Accounting and Finance.

108 Office of Administrative Operations ?

119 Office of the General Counsel..

123 Bureau of Natural Gas -

325 Bureau of Power 3



Total positions.--

1, 172 1 Includes 18 in the Automatic Data Processing Systems Staff and 23 in the Computer Operations Branch. 2 Includes 53 in the Section of Records and Dockets. * Includes 120 in 5 regional offices.

BIOGRAPHY OF LEE C. WHITE, CHAIRMAN, FEDERAL POWER COMMISSION Chairman Lee C. White, Democrat, of Nebraska. Took Office: March 2, 1966. Term Expires: June 22, 1970.

Lee C. White was born in Omaha, Nebr., on September 1, 1923. He attended public schools in that city and holds degrees in both law and electrical engineering from the University of Nebraska. He received his engineering degree in 1948 and his law degree in 1950. He served in the U.S. Army from 1943 to 1946.

Following his graduation from law school, Mr. White joined the Tennessee Valley Authority in Knoxville, Tenn., as an attorney in the Division of Law. In January of 1954 he left TVA to join the staff of then Senator John F. Kennedy as a legislative assistant. From November of 1954 to June of 1955 he assisted Joseph P. Kennedy, who was then serving as a member of the Hoover Commission in Washington, D.C.

He rejoined Senator Kennedy in June of 1955 where he remained until January of 1957 when he became counsel to the Senate Small Business Committee. In January of 1958 he was named Administrative Assistant to Senator John Sherman Cooper of Kentucky. He served with Senator Cooper until January of 1961 when he joined President Kennedy's staff as Assistant Special Counsel. He was appointed Special Counsel to President Johnson on March 1, 1965, and took the oath of office as a member of the Federal Power Commission on March 2, 1966.

Mr. White is married to the former Dorothy Cohn of Harlan, Iowa. The Whites have five children and reside at 3216 West Coquelin Terrace, Chevy Chase, Maryland.


Commissioner John A. Carver, Jr., Democrat, of Idaho.
Took Office: September 13, 1966.
Term Expires: June 22, 1968.

John A. Carver, Jr., was born in Preston, Idaho, on April 24, 1918. He has an A.B. degree from Brigham Young University (1939) and an L.L.B. degree from Georgetown University (1947).

He served in the U.S. Air Force during World War II, entering as a private in May 1943, and later as a commissioned officer serving as a civilian personnel officer of the U.S. Strategic Bombing Survey in England and Japan.

Following his graduation from law school, he served as Assistant Attorney General of Idaho in 1947 and 1948 and from 1948 to 1957 was in private law practice in Boise, Idaho. He was administrative assistant to Senator Frank Church of Idaho from 1957 to 1961.

Mr. Carver was appointed Assistant Secretary of the Interior by President Kennedy on January 30, 1961, and on December 39, 1964 was appointed Under Secretary of the Interior by President Johnson.

President Johnson's nomination of Mr. Carver to the Federal Power Commission was confirmed by the Senate September 13 and he took the oath of office later the same day to fill the unexpired term of David S. Black, resigned

On December 29, 1966, the Commission elected Commissioner Carver to serve as vice chairman for 1967.

A member of the bar of Idaho and the District of Columbia and of the American Bar and Federal Bar Associations, Commissioner Carver also is a member of the National Advisory Committee, Center for Advanced Study in Organization Science, at the University of Wisconsin, Milwaukee. He holds an honorary doctorate of laws from the College of Guam. He is married to the former Ruth O'Connor, of Seattle, Washington. His two sons are students at Wisconsin and Stanford and a daughter is at home, 4421-25th Street, North, Arlington, Virginia.



Commissioner Lawrence J. O'Connor, Jr., Democrat of Texas.
Took Office: First term, August 14, 1961; second term, July 1, 1966.
Term Expires: June 22, 1971.

Lawrence J. O'Connor, Jr. was born in Tulsa, Okla. He spent most of his early childhood in Butler, Pa., and then returned to Tulsa where he graduated from Central High School. He received his A.B. degree from Rice Duiversity in 1936 and a Master's degree in business administration from Harvard University in 1938.

From September 1, 1938, until March 31, 1945, he was employed in Houston by Haskins & Sells, Certified Public Accountants. He was employed by the Goldston Oil Corporation, of Houston, from April 1, 1945 to September 30, 1958, advancing to vice president and treasurer. From October 1958, to October 1959 Mr. O'Connor was self-employed as a consultant engaged in special studies and programs for future oil and gas exploration activities.

He served as a director and vice president, Houston District, of the Independent Petroleum Association of America from 1954 until 1958. He served as chairman of the Tax Study Committee of that Association, and also was on committees dealing with oil and gas supply and demand, natural gas, oil and gas productive capacity and economic and cost studies. He also has served as director and vice president of the Houston Chapter of the Tax Executives Institute. He is a licensed certified public accountant in Texas.

He was appointed Assistant Director of the Interior Department's Office of Oil and Gas on October 15, 1959. Less than a year later, on July 1, 1960, he was appointed Administrator of the Interior Department's Oil Import Administration. He continued in that post until August 13, 1961, when he resigned to take office on the Federal Power Commission.

Mr. O'Connor, who is a Democrat, was first nominated to the Federal Power Commission July 5, 1961, by President Kennedy, for the term expiring June 22, 1966. His nomination was confirmed by the Senate August 9, 1961, and he took the oath of office August 14, 1961. He served as the FPC's vice chariman during the calendar year 1962.

President Johnson announced June 13, 1966 that he was nominating Commissioner O'Connor for reappointment on the FPC, for the term expiring June 22, 1971. The nomination was confirmed by the Senate June 30, and he took the oath of office on July 1, 1966.

Commissioner Charles R. Ross, Republican, of Vermont.
Took Office: First term, September 29, 1961; second term, May 3, 1965.
Term Expires: June 22, 1969.

Charles R. Ross was born in Middlebury, Vt., on February 24, 1920. He was graduated from high school in that city in 1937, and then attended the University of Michigan, where he received his A.B. Degree in 1941. Following service in the Army Air Corps during World War II, Mr. Ross returned to the University of Michigan where he received both his M.B.A. and LL.B. degrees in 1948.

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