Thursday, August , 1977

THE MlCHIGAN DA"1.Y

Poge Seven

House keeps natural gas price controls

(ContifnUed from Page 1)
the new Department of Energy
that will carry out his broad
energy policies.
THE NEW department re-
ceived final congressional appro-
val Tuesday, but Carter has not
yet signed the reorganization
bill.
Rep. Clarence Brown (R-
Ohio), a principal leader of the
deregulation effort, attributed
the defeat to a compromise
adopted earlier by the House
which marked a concession to
natural gas producers.
Under the compromise, Car-
ter agreed to increase the
amount of newly-drilled natural
gas eligible to carry the $1.75
price. The current federal price
ceiling is $1.45 per thousand
cubicfeet.
SOME HOUSE members from
p r o d u c i n g states, including
House Majority Leader J i m
Wright of Texas, voted for the
Carter compromise with the ex-
panded definition of new natural
gas.

But Wright said despite his
support now, "We must move
toward ultimate deregulation."
Wright said the Carter plan
prevents an abrupt increase in
natural gas prices, but permits
gradual increases needed to en-
courage producers to go out and
find more reserves.
UNDER THE Carter pricing
formula approved by the House,
wellhead natural gas prices will
be permitted to rise from the
new ceiling of $1.75 to an esti-
mated $2.40 per thousand cubic
feet in about 15 years.
At the same time intrastate
gas-sold only within producing
states at higher prices-would
be eliminated. All natural gas
becomes subject to federal regu-
lation and supporters of con-
tinued regulation say it will
even out supplies of the' fuel
nationwide.
The Senate is expected to
repeat the fight oveT. deregula-
tion when the Congress returns
from a month-long recess- in
,September.

MIDWAY through three .days
of voting on the Carter energy
package, the House has yet to
make a change in the plan as
it emerged from the House en-
ergy committee, a generally-pro
Carter panel which pulled to-
gether the work of four other
established House committees.
In the natural gas vote, 210
Democrats voted to defeat de-
regulation, joined by the 17 Re-
publicans. Some 127 Republicans
voted for deregulations, joined
by 72 Democrats.
The American Gas Associa-
tion's president, George Law-
rence, said the vote against de-
regulation "c 1 e a r 1 y demon-
strates a lack of understanding
of the vital role increased natu-
ral gas production most play in
America's energy future."
CARTER originally proposed
excluding new gas discovered
within 2 and one-half miles of
existing wells from the higher
price scheme.
But the compromise amend-
ment, adopted by voice vote,
would allow legitimate new dis-
coveries of gas within the 2 and
one-half mile radius to qualify
for the $1.75 price, increasing
the income of producers.
Prices for homeowners and
industries using natural gas
would rise under both deregula-
tion and the Carter formula.
But a complete end to price
controls would mean an abrupt
rise in prices, with some esti-
mates ranging to between $5
and$6 per thousand cubic feet.
That would be passed on direct-
ly as a dramatic hike in con-
sumer fuel prices.

Terrorists kill 1
in NYC bombings

UICHIGAN
CONTINUES..
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JULY 26,29 & AUGUST 4,7
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iContinued from Pale 3)
of services throughout the city
ran as high as $5 million. The
Long Island Rail Road began
rush-hour service , in mid-after-
noon to haul home-bound work-
ers forced from their offices.
THE EFFECTS of the bomb-
ings also were felt in Brooklyn,
where a federal courthouse and
the state Supreme Court build-
ing w e r e temporarily evacu-
ated.
Police roped off many areas
to congested traffic to allow
emergency vehicles with wailing
sirens to make their way to the
scene of suspected bomb tar-
gets.
The mid-morning blast at a
field office of the Secretary of
Defense Security Division at
43rd Street and Madison Avenue
caused light to medium proper-
ty damage, police said. A Penta-
gon spokesperson in Washington
said the 21st-floor offices are
staffed by investigators who
make background and security
clearance checks.
CHARLES STEINBERG, 26,
was killed and seven other per-
sons were injured in the second
explosion, about an hour later,
at the Mobil building on busy
42nd Street near Grand Central

Station.
FALN, which has claimed re-
sponsibility for more than 50
bombings in the past three
years, is believed to have about
10 members. Authorities have
been able to find out little about
the group and have not been
able to infiltrate it.
FALN stands for Fuerzas Ar-
madat de Liberacion Nacional
Puertoriquena - S p a n i s h for
Puerto Rican Armed Forces for
National Liberation.
Puerto Rican Guv. Carlos Ro-
mero Barcello, in Valley Forge,
Pa., for a ceremony honoring
the island, called the terrorists
"enemies of the people of Puer-
to Rico."
HEr SAID Puerto Ricans "re-
pudiate all kinds of violence of
this nature" and that since
members of FALN have not
been identified, it is not certain
they are Puerto Rican.
"What they stand for and
their use of violent methods is
against the history and tradition
of our country," he said.
If they are later proved to be
Puerto Rican, he said, "this just
showsthat we have our share of
fanatics and lunatics, just as
everywhere else in the world."

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ANN A0i00L [ILMt CC-(IV
OS@@*. S ... e .@e@O.*@ SS. 55..
Thursday, August 4
THE GODFATHER, PART 11
(Francis Ford Coppola, 1975) 6:30 & 9:30-AUD. A
Continuing the saga of the Corleones, this sweeping epic moves
both backward and forward in time, interweaving Vito's rise to
power with the story of what son Michael did with that power. As
usual, DeNiro is brilliant, the casting is amazing, but tsp kudos
must go to Coppola for fashioning a film of this size into a personal
statement. Al Pacina, Robert DeNiro, Robert Duvall, Diane Keaton,
Lee Strasberg. $1.50

themii d it
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