HENRY M. JACKSON, Washington STROM THURMOND, South Carolina JOHN W. WARNER, Virginia GORDON J. HUMPHREY, New Hampshire JAMES C. SMITH, Professional Staff Member (II) CONTENTS Langenkamp, R. Dobie, Deputy Assistant Secretary of Energy for Oil, Natural Gas, and Shale Resources; accompanied by Capt. Robert H. Nelson, U.S. Navy, Director, Naval Petroleum and Oil Shale Reserves; and Comdr. Lawrence Vogel, Civil Engineer Corps, U.S. Navy, Director, Operations and Engineering, Naval Petroleum and Oil Shale Reserves.. NAVAL PETROLEUM RESERVES THURSDAY, JULY 19, 1979 U.S. SENATE, COMMITTEE ON ARMED SERVICES, SUBCOMMITTEE ON MILITARY CONSTRUCTION AND STOCKPILES, Washington, D.C The subcommittee met at 10 a.m., pursuant to notice, in room 224, Russell Senate Office Building, Hon. Gary Hart, chairman, presiding. Present: Senators Hart, Cannon, and Thurmond. Also present: James C. Smith and Edward B. Kenney, professional staff members, and Jeanie Killgore, clerical assistant. Members' assistants present: Frank Gaffney, assistant to Senator Jackson; Frank Krebs, assistant to Senator Cannon. [The bill, H.R. 3354 follows:] [H.R. 3354, 96th Congress, 1st session] AN ACT To authorize appropriations for fiscal year 1980 for conservation, exploration, development, and use of naval petroleum reserves and naval oil shale reserves, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That there is authorized to be appropriated to the Department of Energy for fiscal year 1980 for conservation, exploration, development, and use of the naval petroleum reserves and the naval oil shale reserves under chapter 641 of title 10, United States Code, the sum of $85,210,000, of which (1) $5,300,000 shall be available for exploration of Naval Petroleum Reserves Numbered 1 and 2; (2) $52,911,000 shall be available for operation and maintenance of Naval Petroleum Reserves Numbered 1 and 2; (3) $16,089,000 shall be available for operation, maintenance, and development drilling of Naval Petroleum Reserve Numbered 3; (4) $5,010,000 shall be available for oil and gas exploration of Naval Oil Shale Reserve Numbered 2; and (5) $2,000,000 shall be available for development of Naval Oil Shale Reserves Numbered 1, 2, and 3. SEC. 2. During fiscal year 1980, there shall be detailed to the Department of Energy for service in the Office of Naval Petroleum and Oil Shale Reserves not less than sixteen commissioned officers of the Navy. OPENING STATEMENT BY SENATOR GARY HART, CHAIRMAN Senator HART. The hearing will come to order. The purpose of our hearing this morning is to review the operation of the Naval Petroleum Reserves [NPR] with special emphasis on the fiscal year 1980 authorization requirements as contained in H.R. 3954, as passed by the House. The Naval Petroleum Reserves consists of three crude oil reserves, Elk Hills and Buena Vista in California, and Teapot Dome in Wyoming; and three oil shale reserves, two in Colorado and one in Utah. As the energy situation continues to get more severe these reserves take on added importance, obviously. The Elk Hills reserve is especially important since it now produces over 150,000 barrels of oil per day, making it one of the largest oilfields in the continental United States. The budget request for fiscal year 1980 is about $75 million, with most of that earmarked for the operating costs of the oil reserves. It is interesting to note that receipts from the sale of oil produced at these reserves is estimated to go over $1 billion next year. These hearings will be open and conducted in the usual manner. We have invited interested members of the Energy Committee to attend and participate, and some of them will be here. The hearing, of course, will remain open for the remainder of this week for interested parties to submit information to be included in the public record. Our witnesses from the Department of Energy are Mr. R. Dobie Langenkamp, Deputy Assistant Secretary of Energy for Oil, Natural Gas and Shale Resources; and Captain Robert H. Nelson, Director, Naval Petroleum and Oil Shale Reserves. STATEMENT OF R. DOBIE LANGENKAMP, DEPUTY ASSISTANT SECRETARY OF ENERGY FOR OIL, NATURAL GAS AND SHALE RESOURCES, ACCOMPANIED BY CAPT. ROBERT H. NELSON, U.S. NAVY, DIRECTOR, NAVAL PETROLEUM AND OIL SHALE RESERVES; AND COMDR. LAWRENCE VOGEL, CIVIL ENGINEER CORPS, U.S. NAVY, DIRECTOR, OPERATIONS AND ENGINEERING, NAVAL PETROLEUM AND OIL SHALE RESERVES Senator HART. Mr. Langenkamp, please proceed as you desire. Mr. LANGENKAMP. Thank you, Mr. Chairman. We have prepared, and I would like to offer at this time into the record, a written statement setting forth in detail a summary of the operations of Teapot Dome, Elk Hills, the shale reserves, and the budget background. I would like, with your permission, to summarize that statement informally at this point. Senator HART. Without objection, the entire statement, of course, will appear in the record as if delivered. We will appreciate your summarization. [The prepared statement follows:] PREPARED STATEMENT OF R. DOBIE LANGENKAMP, DEPUTY ASSISTANT SECRETARY FOR OIL, NATURAL GAS, AND SHALE RESOURCES RESOURCE APPLICATIONS INTRODUCTION Mr. Chairman and members of the Committee, thank you for the opportunity to discuss the Naval Petroleum and Oil Shale Reserves. I am R. Dobie Langenkamp, Deputy Assistant Secretary for Oil, Natural Gas and Shale Resources. Accompanying me is Captain Robert H. Nelson, Civil Engineer Corps, U.S. Navy, who is the Director, Naval Petroleum and Oil Shale Reserves. BACKGROUND The Naval Petroleum and Oil Shale Reserves (NPOSR) include three Naval Petroleum Reserves (NPRS) and three Naval Oil Shale Reserves (NOSRS). |