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Tuesday, July 26, 1977
University Daily Kansan
Change in offshore oil drilling law said to mean gas price increase
From the Kansan News Service
Changes in offshore oil drilling being considered by Congress would not only hamper exploration as major oil companies claim, but would mean higher gasoline prices, according to Bob McBride, M and M Oil Co. , 645 Locust St.
The first major revision of the nation's offshore oil lease in 24 years was passed by the U.S. Senate last week, 60-18. One amendment in the bill would set aside half of all offshore oil leases for new bidding and designated to encourage small competitors.
“Congress is trying to open it to more competition than just the big oil companies,” McBride said. “The only problem there is that it takes millions and millions of dollars to go into this kind of business, and independents will be able to finance it.”
THE SENATE APPROVED the 50 per cent oil lease reserve 57-33, rejecting a
proposed compromise calling for only one-third of the leases to be reserved for the new
"They're trying to make it mandatory that a certain percentage of these leases be let to certain companies, other than the majors," McBride said. "But they aren't getting any bids from anybody else. And they can't make it a law, doesn't mean they will."
McBride said the new system could eventually raise gasoline prices because if no small companies bid on the leases that had been reserved for them, "that could conceivably mean there only be 50 per cent of offshore drilling on."
"IF THE BIDS ARE JUST open to competition, it just weeds everybody out," McBride said. "The majors might take three leases if competition were open, but if competition restricts them, they may only be able to bid on one or two, according to the law."
"I don't know what percentage of our oil we're getting from offshore, but it could slow it down, and we'd have to turn around and go further, much more. And it would be a higher price."
However, the Senate also passed an amendment, 54-39, that would permit the government to conduct exploratory drilling of materials of determining oil and gas reserves fail.
The drilling could be done by either government agencies or contractors on the ocean floor or dry land, according to the amendment.
SENATE OPONENTS of the amendment argued that independent oil companies were willing to do the drilling on their own and that they could do it more efficiently. They also said government officials would have to create dispatches that would lead to lawsuits.
Despite such arguments, President Jimmy Carter called Friday for increased
While he was inspecting a floating rig about 88 miles south of New Orleans, he said, "I am very eager to see offshore leaves explored."
offshore oil and gas exploration, after touring a drilling rise in the Gulf of Mexico
Jody Powell, White House press secretary, said, "It's a good way to understand the importance of page ads the oil companies are running in newspapers, there is a considerable interest or emphasis on production in this add-on service. Energy policy, to the tune of billions of dollars.
Powell said that under the administration energy plan, oil companies would have $15 billion worth of incentives over a five-year period to explore for fresh supplies of natural gas because of the administration's proposal to raise prices.
But, McBride said, "It's just another case of the government trying to run everybody's business."
Billions in oil overcharges aim of government inquiry
WASHINGTON* (AP—A new drive to uncover possible overcharges of billions of dollars by the nation's 18 largest oil refiners yesterday by the Carter administration.
In taking the action, Federal Energy Administrator John O'Leary admitted that his own agency had failed to adequately enforce federal price regulations in the past.
O'Leary released and strongly endorsed a task force study, performed at his request, that charged that "the FEA's enforcement program has historically been ineffective, the commitment is defective to do the job that, in retrospect, was clearly required."
The report said, "Overcharges to the consuming public, possibly amounting to several billions of dollars, have yet to be recovered."
O'Lairy said this figure was just a guess. He said, "We don't know whether we will determine there has been significant misleading by the major oil companies . . .
but even a very small percentage could add up to billions of dollars."
However, O'Leary said that most overcharges were probably unintentional, stemming from differences in the in-vehicle pricing rules that may not be entirely clear.
The task force proposed the creation of an enforcement unit headed by "a specially appointed high-level official with a national reputation as a tough enforcer and litigator . . . not unlike the concept of a special prosecutor."
O'Learay his agency might name such a special enforcer within a month.
The task force was headed by Stanley Spokin, director of enforcement for the State Department.
O'Leary said the report had been discussed with James R. Schlesinger, President Carter's energy adviser, who answered the action had to be taken.
The FEA will be part of the new Depart-
ment Energy if it is approved by
2ongress.
Fighting has stopped, Egypt says
CAIRO (AP) — Egypt declared yesterday that a ceasefire in the Egyptian-Libyan feud, ordered by President Anwar Sadat, ended on Saturday. The report of continued fighting at a desert oasis.
"No military operations took place inside Libyan territory or on the Egyptian-Libyan border after the cease-fire went into effect Sunday," a military spokesman in Caïra said.
"Our forces are strictly observing the cease-fire order," he said.
In Rome, the Libyan Ambassador Kadri El Attrash told a news conference that fighting was still going on at the Al Kufa oasis, nearly 100 miles inside Libya. Egyptian paratroopers are trying to occupy the area, he said.
He also said Libyan forces routed
One Kansas convict is captured in Illinois
BLOOMINGTON, Ill. (AP) - Runaway convict Roy Schultz, a convicted who had escaped from Kansas State Penitentiary a week ago, was in a hospital room instead of jail yesterday, charged with kidnapping and deviant sexual assault and suffering from head injuries and a boken leg inflicted by a woman in her ninth month of pregnancy.
Police said that Schultz forced a Metamora couple, whom authorities did not identify, to drive him to the Ramada Inn in Bloomington on Sunday. He bound and gagged the father, but when he tried to rape their 5-year-old daughter, the mother away his pastel house and a heavy jail cell. She also tried to shoot him, police said, but the gun misfired.
Schulz was arrested by two police officers who had been eating dinner at the motel. He was listed in fair condition at a Bloomington hospital.
Police said there was blood all over the motel room, and it took 150 stitches to close up the wounds in Schultz's head. He was charged with kidnaping, deviant sexual assault and taking indecent liberties with a child.
Schultz, Springfield, and Larry Miller, a Kansas City, Kan., convict who escaped with him, are wanted for questioning in connection with the robbery of a sporting goods store in St. Louis. Schultz was serving a life sentence for the killing of a Salina, Kan., police officer. He had been in prison for two years.
Police said they found six guns and $6,000 in cash in the motel room. One gun was traced to the sporting goods store. McLean County authorities said there was no reason to believe the two men were still together on Sunday.
The Metamora couple stopped when they saw Schultz' car broken down on a Woodford County road midway between Washington County and police, said the car had been stolen.
Schultz forced the father to drive him to a liquor store, where he bought two cases of beer and a gallon of scotch. At the motel, Schultz got drunk and took off his clothes.
When the convict tried to rape the little girl, her horrified mother grabbed the gun which had been lying under his arm on the bed, police said.
Egyptian paratroopers from the Al Ajaghbub oasis, capturing some and sending the others feeling into the desert. Al Ajaghbub is 20 miles inside Llba.
The Palestine Liberation Organization announced in Cairo yesterday that the shuttle diplomacy of PLO leader Yasir Arafat resulted in a three-point cease-fire agreement agreed to by both sides. No details were announced.
CAIRO RADIO SAID Sunday night that all Egyptian forces withdrew from Libyan soil after Sadat ordered an immediate end to hostilities.
She held him at bay as she freed her husband, police were told. Then the two men began to fight and the woman began beating Schultz with the lamp.
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Reporters have been barred from the 800-mile long desert frontier since fighting erupted six days ago. There has been no independent confirmation of conflicting claims about the fighting issued by Libya and Evot.
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The Libyan ambassador in Rome said there could be no cease-fire until Algerian President Abdelaziz Beltoum.
being acting as mediator along with Arafat, reported back to Libyan leader Col. Moaram Khadiyah. Boumedienne first visited Tripoli, then Egypt in his mediation attempt. He left Egypt for Tripoli yesterday.
THE AMBASSADOR SAID Egypt military actions against Libya were timed to disrupt any Arab attempt to form a joint government of Prime Minister Menachem Berri.
El Atrah said Egypt rejected a Libyan appeal for an Arab summit.
The Libyan ambassador said victims of Egypt raided included citizens of various nations.
"Egypt," he said, "acted to prevent the summit because it might have meant something new in relation to the situation following the Israeli elections."
The ambassador ruled out any reprintal against the 200,000 Egyptians who live and work there.
NOTICE
TO: All organizations (including graduate student groups) allocated funds by the Student Senate from the Student Activity Fee FROM: Tom Mitchell, Student Senate Business Mar.
All officers who are to be responsible for the expenditure of allocated funds MUST:
1. Attend a TRAINING SESION conducted by the Student Senate Treasurer. See the schedule listed below.
2. Sign a CAPITAL DISPOSITION CONTRACT with the Student Senate.
3. Obtain ADVANCE WRITTEN AUTHORIZATION for each expenditure from funds allocated to the organization.
International Room Level 5 Kansas Union
No funds will be made available until these requirements have been met.
TUESDAY, July 26, 7:30 p.m.
The Student Senate
Please contact the Student Senate Treasurer's Office at 864-3746 to sign up for this session, or for additional information.
A Treasurer's Training Session has been scheduled for the following time:
4. Account for All Inventory.
is funded from student activity fees.
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