Industry backs price hike for natural gas - C&EN Global Enterprise

Aug 2, 1976 - In a three-to-one decision, FPC had set the price for natural gas newly discovered or newly committed after Jan. 1, 1975, at $1.42 per t...
0 downloads 0 Views 184KB Size
simplifying of the Senate committee structure for science and technology would be nice, but that it shouldn't be so streamlined as to permit each federal mission agency's role in R&D to suffer. Sen. Edward M. Kennedy (D.Mass.) asked Stever about, among other things, his anticipated advisory role in military R&D. Stever replied that he already has initiated discussions with the military community on the issue. However, he indicates that the small staff size of the new OSTP wouldn't permit making weapons systems analysis. On the other hand, he says that OSTP would play an independent and cooperative role in analyzing defense matters and that he would quite carefully follow development of the Defense Department's R&D budget. D

Industry backs price hike for natural gas The Federal Power Commission last week almost tripled the nationwide ceiling rate for new natural gas sold by producers into interstate commerce. The price hike was stayed immediately by the U.S. Court of Appeals for the District of Columbia in response to a suit filed jointly by 15 groups consisting of labor, consumers, and state and local governments. And Rep. John E. Moss's (D.-Calif.) Subcommittee on Oversight & Investigations plans to hold hearings on the rate increase Aug. 11. In a three-to-one decision, FPC had set the price for natural gas newly discovered or newly committed after Jan. 1,1975, at $1.42 per thousand cu ft, making allowances for a 1 centper-quarter escalation. For gas discovered or committed between Jan. 1, 1973, and Jan. 1, 1975, the commission had set the rate at $1.01 per thousand cu ft. The current national ceiling is 52 cents. According to FPC, these new rates would add about $1.5 billion to consumers' cost for natural gas in the first year, translating to an increase of about $15.60 per year to an average household's gas bill. Industries using natural gas and producers generally are pleased with the price hike. Dr. Bruce Melaas, cochairman of the Petrochemical Energy Group, says that "PEG applauds the bold leadership shown by the FPC action. We think that the higher wellhead prices will promote conservation and fuel switching, and will provide added incentive for drilling new supplies. We hope that Congress will follow FPC's leadership and provide legislation that will lead toward deregulation. . . . We are op6

C&EN Aug. 2, 1976

posed to the stay of order and hope that court action will rule in favor of the new rates." Comments on a similar theme were voiced by the American Gas Association. It points out that the higher ceiling price applies only to wellhead cost, which represents less than 20% of the overall cost of gas service to the consumer. And the increase applies only to new gas; the bulk of gas flowing today is old gas sold under longterm contracts, AGA adds. The association had no comments on the stay of order, saying that it is a matter for the courts, FPC, and consumers. David Rooke, vice president for supply and distribution at Dow Chemical, Midland, Mich., says, "This is definitely a step in the right direction. We have been for the decontrol of natural gas, and still are, because it's the only way the supplydemand situation will correct itself. There will be very little impact now on Dow because all of our gas is intrastate and we are already paying more than $1.42. However, nobody knows what the long-term effect will be. It should stimulate offshore activity, where natural gas can only be sold interstate. It also probably will mean more onshore drilling." The coalition of consumers, labor, and government o r g a n i z a t i o n s including the state of Minnesota, the United Auto Workers, Energy Action, and the U.S. Conference of Mayors— had requested the stay on grounds that the price increase represents a "de facto deregulation of natural gas without authorization from Congress In the event that the higher rates are found unlawful, FPC has made no provision for refunds to consumers." D

Viking begins tests, meets with problems After a week on the barren and inhospitable surface of Mars, the unmanned Viking I lander last week began to get down to some rigorous scientific investigation. But preparations for some of the experiments were not without some headaches for National Aeronautics & Space Administration scientists monitoring the robot laboratory. They also had at least one surprise. The first major problem appeared two days after the Viking lander touched down when its seismometer failed to operate on command from earth. At mid-week last week the seismometer still was not working— the delicate balance beams in the instrument apparently still secured in place by thin pins inserted to protect

Viking robot laboratory on Mars has begun biological and chemical analyses

the instrument during the long journey from earth. Another, and potentially more serious, problem also occurred shortly after touchdown with the jamming of the sampling arm that was to deposit soil from the surface into instruments on the lander. However, this problem was corrected by a relatively simple maneuver that dislodged a locking pin in the sampler's arm put there to protect the mechanism during space flight. Early last week, the Viking lander's mass spectrometer began analyzing the Martian atmosphere. Preliminary results largely confirm the atmospheric analysis conducted earlier by the spacecraft's instruments as it descended through Mars' atmosphere to the surface: The Martian atmosphere is composed of about 95% carbon dioxide. It also contains small amounts of argon (1 to 2%), nitrogen (about 2%), and traces of oxygen. No water has been found yet, since the instrument was operating in such a way as to filter out water. Small quantities of neon, krypton, and xenon also were discovered, all in the low parts-per-million range. With its sampler arm free, Viking last Wednesday began scooping up soil for its chemical and biological experiments. Again there was a hitch. Only four of the five experiments (originally three biology and two chemistry) received soil samples. The sample intended for organic chemistry analysis apparently is lodged in the delivery funnel on top of the lander. And Viking scientists found something odd about the soil itself: It is unusually sticky, resembling wet sand. Says Viking geologist Robert B. Hargraves of Princeton University, "It's a strange material. I'm surprised by the apparent cohesion of the soil. For a dry, aeolian [wind deposited] material, I don't think anyone expected that." D