Mr. DENTON. You are requesting $1.8 million for statistics. How does this phase of your activity tie in with the efforts of the Bureau of the Census and the Bureau of Labor Statistics? Mr. HIBBARD. This activity is aimed at collecting information regarding mineral and fuel production and the use of mineral and fuel resources. We have been in touch with the Bureau of the Census to make sure our activities are coordinated and we have been in touch with the Department of Commerce. Mr. DENTON. Do they do any work for you? Mr. HIBBARD. We are doing work for them. Mr. DENTON. The Bureau of the Census? Mr. HIBBARD. Yes. In the quinquennial census period, we join with Census and carry on part of the canvass. ECONOMIC ANALYSIS Mr. DENTON. You are requesting an increase of $226,000 for "Economic analysis." What is the justification for this increase? Mr. HIBBARD. It is very important from my point of view that we have an economic analysis of the potential value of the research programs which we undertake. In order to be responsive to the programing, planning, and budgeting, we have to know what the payoff of each research effort eventually is going to be in terms of the resource base. Since our benefits are basically determined by economic characteristics as they affect industry, we must be able to analyze our projects from the standpoint of economics as well as technology. ECONOMY DEMAND FOR INDIVIDUAL MINERALS Mr. DENTON. You say the other component of the increase will reveal quantitatively how general economy demand for individual minerals is translated into supply. What benefits do you expect to achieve from this analysis? Mr. HIBBARD. The supply of minerals principally comes from a company deciding to go ahead and work a mine and produce a material from it. Their incentives are entirely economic and therefore in predicting the impact of what we are doing on the supply situation, we must use the same kinds of economic analysis they do. COAL EXPORTS Mr. DENTON. Under "Bituminous coal," you say "Intensive activity is being devoted to the Government's program for expanding U.Š. coal exports to increase credits to our international balance of payments and to increase coal production and improved conditions in coal mining areas." What results has this intensive activity produced in the last couple of years? Mr. HIBBARD. I will refer that to Mr. Zinner. Mr. ZINNER. During the last 6 years there has been a steady growth in the amount of coal exported to foreign markets. Mr. DENTON. What countries have you sold coal to? Mr. ZINNER. The largest export is to Canada. Mr. DENTON. You haven't sold any in England or Germany or France or Belgium, have you? Mr. ZINNER. We haven't sold any to England. As we discussed last year one of the problems we are having is coping with a variety of barriers that prohibit the importation of U.S. coal. Mr. DENTON. I am very interested in this because I have been on the Economic Committee of the NATO Interparliamentary Conference for a number of years and coal is always a subject that is discussed. I understand we can produce coal and transport it and sell it almost any place in the world cheaper than they can produce it, and the wages of our miners are many times higher than those of other countries. Nevertheless, we can export coal if we can get by the trade barriers and the different bloc currencies, licenses, quotas, and so forth, but we haven't been able to. Mr. ZINNER. That is correct. We are continuing to work on the problem. Also, another problem that we have to overcome is to demonstrate to the foreign countries our ability to fulfill long-term con tracts. Mr. DENTON. There is no doubt about that, is there? Mr. ZINNER. We have no doubt, but we have to prove it to them. Mr. DENTON. How much have you increased coal exports? Mr. ZINNER. In 1961 we exported only 700,000 tons to France. In 1965 we exported about 2,100,000 tons. Mr. DENTON. To France? Mr. ZINNER. To France alone. To Italy the growth has been from 4.7 to 8.9 million tons. Mr. DENTON. How much do we export to Germany? Mr. ZINNER. The growth hasn't been very large, but excluding the coal sent over for military use, it has been increased from 4.2 to 4.7 million tons. It was 5.2 million in 1964. Mr. DENTON. Put in the record a listing of our coal exports to foreign countries. Mr. ZINNER. I will be happy to. Mr. DENTON. Let's make it for 3 years. I think there is great potential for the use of coal in foreign markets. (The information follows:) Excludes shipments to U.S. Armed Forces in West Germany, which average 1,200,000 tons per year. Lowest since 1954. Prior to World War II, overseas bituminous coal exports were negligible except in times of severe emergencies. Although the United States has become established as a major energy supplier overseas since the war, particularly to Western Europe and Japan, total overseas bituminous coal exports have fluctuated considerably during the past 10 years, from a high of 58 million tons in 1957, when substantial coal was stockpiled abroad as a result of the Suez Canal crisis, to a low of 24 million tons in 1961. During the past 3 years the total export market for bituminous coal, including Canada, has become fairly well stabilized, averaging around 50 million tons annually, and trending upward. Anthracite exports have fluctuated considerably, with a generally downward trend in recent years except for shipments to the U.S. Armed Forces in West Germany and during severe weather emergencies abroad when it is used principally for space heating. Principal competition overseas is Russian anthracite, which is of a quality especially suited to the types of household burning equipment used in Western Europe. TRADE RESTRICTIONS Mr. DENTON. You are going to encounter more trade restrictions on this than anything else. They call it "energy," and "energy" was excluded from the Kennedy round of tariffs. Mr. MEMMOTT. Regarding the reserves, many times the countries that do import from the United States are tying themselves to the long-term contracts, and we are requested to furnish statistics as to what the recovery rates of our coal reserves are. 59-523-66-pt. 2-17 In other words, they want to know how much of the coal reserve you take out of the mine and how much you must leave to support the strata. Mr. DENTON. There is no question about our production in this country and the reserves we have in coal, is there? Mr. MEMMOTT. We are blessed with tremendous coal reserves. Mrs. HANSEN. Isn't the reason, that, before installation of equipment or establishment of a particular manufacturing plant to be based upon a given amount of coal, it is necessary to know how many years supply can be depended on before turning to an alternative of some cther type of fuel? Isn't this the point? Mr. DENTON. Do you mean European countries? Mrs. HANSEN. This has been the problem domestically too. Mr. MEMMOTT. Yes. The energy demand is becoming so great in the world today, we must consider long-term needs. CONFLICTS IN LAND USE STUDY Mr. DENTON. Under "Minerals," you propose the initiation of a national study of the conflicts in land use between mineral industries and others. What is the purpose of this study? Mr. ZINNER. The growth in population and urbanization demands local sources for mineral raw material. For example, rather substantial sand, gravel, and aggregate operations surround most population centers, yet these very operations by their nature tend to lower the land values in the expanding suburban areas. We think perhaps there is some way to make the two compatible. We would like to examine into instances where zoning and other local provisions have provided for low-cost sources of sand and gravel and other substances in a manner that is compatible with the present and ultimate use of the surrounding areas for residential or other purposes. Mr. DENTON. Do you want to beautify piles of sand and gravel? Mr. ZINNER. This is an economic rather than a beautification problem although there certainly are some esthetic problems here too. It has to do mostly with land values. I think a good illustration, perhaps, may be seen in Florida. There, in the past, phosphate operators over the years would mine agricultural and other land in a way that left piles of waste material and some stagnant ponds when mining was completed. In recent years their practice has changed so that in most current mining operations they deposit their waste material in a way that the mined-over areas comprise prime real estate. Instead of worthless dumps, they end up with good real estate including embayments left for people who may wish to have boats at their front doors. Mr. DENTON. How much have you included in the 1967 budget estimate for this study and what is your projected estimate of the total cost of this study? Mr. ZINNER. This is a 1-year study. The total national investigation, I believe, adds up to $350,000. Mr. DENTON. It is just a 1-year study. Mr. ZINNER. Just a 1-year study; yes, sir. Mr. DENTON. The next item is "Health and safety." Insert in the record pages 82 through 100 of the justifications. (The pages follow:) Transferred to "Operating expenses, Public Buildings Service," -903 SUMMARY OF INCREASES AND DECREASES, 1967 Inspections, investigations, and rescue work: To provide for in- +66, 000 -108, 000 |