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STATEMENT OF HON. J. BENNETT JOHNSTON, U.S. SENATOR

FROM LOUISIANA

The CHAIRMAN. No, Mr. Chairman. First, thank you for presiding here. We have a Defense Appropriations conference going on, and so I could not be here for the earlier part. I really needed not to be because I am well aware of the qualifications of both Mr. Randolph and Mr. Ward, and very pleased with that. And I share the comments that were spoken here by my colleagues about you this morning. And so, since you are doing so well I think probably the best thing to do for you is to shut the hearing down and vote. [Laughter.]

The CHAIRMAN. Before anybody comes out with any secret affidavits.

[Laughter.]

Senator FORD. Senator Akaka, do you have any questions or statements you would like to make?

STATEMENT OF HON. DANIEL K. AKAKA, U.S. SENATOR FROM

HAWAII

Senator AKAKA. Yes, Mr. Chairman, thank you. I do want to say good morning and welcome both of you. Mr. Randolph, I am anxious to hear your views on a program that will be under your authority, which is of great concern to Hawaii; namely the strategic petroleum reserves. Last week the Office of Technology Assessment issued a report on the Nation's oil import vulnerability. Anyone who reads this report will quickly understand the urgent need for America to get its energy house in order. And one of the best ways to do that is through conservation and greater use of renewable energy.

However, the OTA report cautions that, and I quote; even with heroic efforts to exploit conservation in renewables, the United States faces a future of high dependence on imports. The report goes on to conclude that in light of this dependence, America will be more vulnerable should a prolonged oil cutoff occur. Strategic oil reserves and advanced preparations for oil supply emergencies must now play a more important role in reducing oil import vulnerability than in the past.

For years I have been making the case for an emergency oil reserve for Hawaii, and improved access to strategic petroleum reserves. Now the OTA has added its voice to the chorus of concern about Hawaii's oil vulnerability and the need for an emergency reserve in Hawaii. And if the motion to proceed to S. 1220 had been adopted, we would have had a chance to consider Hawaii's emergency petroleum needs.

As most geography students know, Hawaii is a long way from the Gulf of Mexico, especially when you have to go through the Panama Canal. The distance between the strategic petroleum reserve loading docks and Honolulu is over 7,000 miles by way of the canal. It is more than one-quarter of the distance around the globe. The problems of the other Pacific territories are even more acute. American Samoa is 8,000 miles by ship from SPR facilities, and Guam is over 10,000 miles distant from these reserves.

Common sense dictates that the central reserve cannot serve our needs during an emergency. But distance alone is not the issue. When you add together the time between the decision to draw down the reserves and the time when oil from the reserves actually reaches our shores, the seriousness of the problem emerges. As you know, it takes time to solicit and accept bids for SPR oil-time to locate and position tankers, time for tankers to wait in line to gain access to SPR loading docks, and time to transit through the canal to Hawaii.

Without an emergency reserve of its own, Hawaii is at the end of a very, very long supply line. While we are waiting for emergency supplies of oil to arrive, things can begin to get scary.

And in the interest of time, Mr. Randolph, I would like to then ask or pose a question to you. Do you agree that some special consideration must be made for those areas of the United States which do not have access to the elaborate and overlapping distribution system found on the mainland during an oil emergency?

Mr. RANDOLPH. Senator Akaka, I am aware of your concern. I have not had a chance to delve into it in detail, but clearly-just in the logic of the question-clearly every part of our country, all of our total national economy needs to have an adequate energy supply. And so the study is underway that will be defining and determining exactly what the current capacity of the existing facilities are in Hawaii. And I would think that the results should clearly point the way, at least to the courses of action that the Government and the various industries who are supplying your oil needs could determine what to do. I look forward to working on this problem if I am confirmed.

Senator AKAKA. Thank you. I am glad to hear your thoughts about this, and as you know, we cannot wait long to find out whether we will run out of oil during the crisis.

Mr. RANDOLPH. I would suggest that, if possible, it is closer from Fort Whittier, Alaska, than from the Gulf Coast, and so we would probably divert from some of that North Slope oil down.

Senator AKAKA. Thank you very much, Mr. Chairman. Thank you, Mr. Randolph.

Senator FORD. We have had two gentlemen or three join us. Senator Domenici, do you have anything you would like to ask? Senator DOMENICI. No thank you, Mr. Chairman.

Senator FORD. Senator Wirth.

Senator WIRTH. Senator Ford, it is always nice to be with you and I welcome the witnesses.

Senator FORD. Senator Murkowski.

Senator MURKOWSKI. No questions.

Senator FORD. Good, we just got through the whole gamut here. You see how quickly this can be managed if it is done right. [Laughter.]

Senator FORD. And so we lack one or two more for a markup, so I will be glad to give my warm chair up to the Chairman so he can conduct the meeting of the full committee.

[Whereupon, at 10:20 a.m., the hearing was adjourned.]

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Employment

record:

Institution

Dates attended

Degrees
received

Dates of degrees

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List below all positions held since college, including the title and description of job, name of employer, location, and dates.

May 1976 Dec. 1988 Kerr McGee Corporation, Oklahoma City, OK
President, Kerr McGee Coal Corporation (1976-1988)

President, Sequoyah Fuels (1984 -1988)

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Employment record-Continued

Military service:

Describe any military service not listed above, including dates, rank, and type of
discharge.

USAF (June 1948

April 1976) Retired- Major General

Honors and awards:

Memberships:

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List below all scholarships, fellowships, honorary degrees, military medals, honorary
society memberships, and any other special recognitions for outstanding service
or achievement.

No awards of significance

List below all memberships and offices held in professional, fraternal, business,
scholarly, civic, charitable and other organizations.

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Published writings:

List the titles, publishers and dates of any books, articles, or reports you have written. During the 1960's, I participated in preparing a few Air Force studies on subjects unrelated to the activities of the

Department of Energy.

I was Leader of a National Coal Council Work Group that prepared
a report for the Secretary of Energy, dated June 1987, entitled
"Improving International Competitiveness of U.S. Coal and Coal
Technologies."

Also during my tenure as Chairman of the National Coal Council
from July 1987 to June 1989, I participated in defining the scope
and reviewing the National Coal Council studies submitted to the
Secretary of Energy during this period.

Future employment 1. Will you sever all connections with your present employer, business firm, associarelationships: tion or organization if you are confirmed by the Senate?

I have no such connections which must be severed.

2. Do you have any plans after completing government service to resume employment, affiliation or practice with your current or any previous employer, business firm, association or organization?

No.

3. Has a commitment for employment after you leave government been made to you by anyone? Have you made any such commitment?

No.

4. (a) If you have been appointed for a fixed term, do you expect to serve the full term?

N/A

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