SUBMERGED LANDS TUESDAY, FEBRUARY 20, 1951 UNITED STATES SENATE, COMMITTEE ON INTERIOR AND INSULAR AFFAIRS, Washington, D. C. The committee met, pursuant to adjournment, at 2:30 p. m., in room 224, Senate Office Building, Washington, D. C., Senator O'Mahoney (chairman) presiding. Present: Senators Joseph C. O'Mahoney, James E. Murray, Clinton P. Anderson, Herbert H. Lehman, Russell B. Long, George A. Smathers, Eugene D. Millikin, Guy Cordon, Zales N. Ecton, and George W. Malone. Also present: Hon. William F. Knowland, United States Senator, of California; Representatives J. M. Combs, Second District of Texas, and Clyde Doyle, Eighteenth District of California. The CHAIRMAN. The committee will come to order. The Chair is in receipt of letter from the Governor of Texas, Gov. Allan Shivers, dated February 17, 1951, reading as follows: Senator JOSEPH O'MAHONEY, Senate Office Building, Washington, D. C. DEAR SENATOR O'MAHONEY: Herewith I enclose a joint statement by members of the school land board of Texas on Senate Joint Resolution 20, which is to be considered by your committee February 19, 1951. It would be appreciated if you would read this statement into the record in order that it may be heard by the committee members. At your suggestion, we have followed this method of presentation due to the limited time allotted and the fact that our views have been expressed at length in previous hearings held by your committee. Sincerely yours, ALLAN SHIVERS. JOINT STATEMENT OF GOV. ALLAN SHIVERS, ATTORNEY GENERAL PRICE DANIEL, AND COMMISSIONER OF THE GENERAL LAND OFFICE, BASCOM GILES, CONCERNING SENATE JOINT RESOLUTION 20 (As read by the chairman) The undersigned officials of the State of Texas, in addition to their capacities as governor, attorney general, and Commissioner of the General Land Office, constitute the school land board of Texas, which has charge of the leasing of public school lands for oil and gas development in this State. In view of the short time allotted for the hearing on Senate Joint Resolution 20, and since our views as to permanent legislation and interim legislation have been expressed previously to this committee, we submit this joint statement for the purpose of summarizing our previous testimony and present views concerning Senate Joint Resolution 20. We favor the general purpose of interim legislation as expressed in Senate Joint Resolution 20. We recognize that continued production and additional exploration for oil, gas, and other minerals are essential to the welfare of our people in this time of emergency. Pending permanent legislation on the subject, we will support any reasonable interim bill which would permit exploration, development, and production of essential natural resources to be continued on this property, provided the interim legislation does not contain anything which would prejudice our State in its effort to obtain permanent legislation restoring the ownership which it claimed and enjoyed prior to June 5, 1950. The present emergency and the need for interim legislation should not be used by either party to gain a point which may weigh in its favor or against the other party when permanent legislation is reached for consideration. We believe that Senate Joint Resolution 20 can be amended by your committee so as to accomplish the desired purposes of interim legislation without giving either the States or the Federal Government any undue advantage with reference to permanent legislation. In this connection, we present the following objections and suggested amendments for the consideration of the committee: (1) The first sentence in the preamble recites that the resolution is "to provide for the protection of the interests of the United States." It would seem only fair that protection of "any equities which the States may have" should be added to the purpose clause by the insertion of such words therein. These words should also be inserted in the last paragraph of the preamble. (2) Section 4 (a) provides for leasing of the entire Continental Shelf by the Secretary of the Interior during the interim, making no distinction between that part of the Shelf lying within the original boundaries of the States and that part lying seaward of the original boundaries. Since the coastal States have claimed and enjoyed ownership and management of that part of the Shelf within their original seaward boundaries continuously for more than 100 years, and now have the machinery, personnel, and experience necessary to continue managing the area without additional expense and without employing additional manpower, and since a majority of the House and Senate on several occasions have indicated that this land should be restored ultimately to the States in permanent legislation, we believe that an interim bill should not give the Secretary of the Interior exclusive management and leasing powers within these traditional boundaries. Adoption of this feature of the bill might be used as a precedent which would prejudice the States when permanent legislation is reached for consideration, For the reasons heretofore stated in our previous testimony, we believe that more production will be obtained and more revenues received during the interim if State operations are continued within the traditional boundaries. However, if the committee believes that such arrangement would give the States an undue advantage with reference to future permanent legislation, it would seem that a plan for joint action could be devised and written into section 4 (a) along the lines of the present stipulations between the United States and the State of California. At least, some amendment with reference to lands within the traditional seaward boundaries should be made so as to render the present bill fair to both the States and the Federal Government, insofar as this point may bear hereafter upon consideration of permanent legislation. (3) We believe section 5 (a) (1) should be amended so as to authorize payment to the States of at least 371⁄2 percent of the revenues received from the entire Continental Shelf. Payment of 371⁄2 percent of the revenues to the States during the interim is limited by section 5 (a) (1), as now written, to those revenues received from lands lying within 3 miles of shore. Both the States of Texas and Louisiana extended their boundaries beyond their original limits to a distance of 27 miles prior to President Truman's Continental Shelf proclamation. The States have already contributed and will continue to contribute to the claim of the United States (and its political subdivisions) as against other nations to jurisdiction over that part of the Continental Shelf lying beyond traditional State boundaries. This was recognized by the Supreme Court of the United States in its opinion in United States v. Louisiana, 339 U. S. 699, 706 (1950), in which the Court said: "Louisiana's enlargement of her boundary emphasizes the strength of the claim of the United States to this part of the ocean and the resources of the soil under that area." (4) The term "seaward boundary of a State" is defined in section 9 (b) as "a line 3 miles distant from the points at which the paramount rights of the Federal Government * * * begin." This is less than some of the coastal States have claimed, with approval of Congress, for many years. In the case of Texas, the seaward boundary was fixed at three leagues (nine marine miles) from shore in 1836, and this boundary has been recognized continuously by the United States and other nations of the world. It was so recognized by the Supreme Court of the United States in the recent case of United States v. Teras, 339 U. S. 707 (1950). Therefore, it is submitted that this definition of "seaward boundary of a State" should be amended to provide that the term means "a line 3 miles seaward from the coast, or such further distance as the seaward boundary of any State existed at the time such State became a member of the Union." It is our sincere hope that the committee will adopt the suggestions herein offered in order that our full support may be given to this legislation. ALLAN SHIVERS, Commissioner of the General Land Office. PRICE DANIEL, Attorney General of Texas. The CHAIRMAN. The Chair desires to express his appreciation to Governor Shivers, to Commissioner Giles, and to Attorney General Daniel for their cooperation in presenting the views of the State in this brief and explicit form. The absence of the Governor from these hearings, the absence of the attorney general, will not in any way militate against the consideration of the views expressed in this document. And Commissioner Giles, since you are here, I want to say to you, on behalf of the committee, I am sure that we are very glad indeed to have this material, and it will be under the closest scrutiny when the committee comes to consider the bill. I have also before me a letter from the State Bar of Texas, signed by Chairman Robert Lee Bobbitt of the special committee on tidelands, which I would like to make a matter of record at this time. STATE BAR OF TEXAS, SPECIAL COMMITTEE ON TIDELANDS, Re Senate Joint Resolution 20, by Senators O'Mahoney and Anderson, authorizing continuation of production and exploration in the submerged lands areas pending permanent legislation by the Congress. Hon. JOSEPH C. O'MAHONEY, Chairman, and Members of the Committee on Interior and Insular Affairs, The United States Senate, Washington, D. C. GENTLEMEN: The members of the State Bar of Texas, along with other citizens, are vitally interested in appropriate and prompt action by the Congress which will insure continued production and search for oil and other resources in the submerged lands areas during the present emergency, under temporary authorizations which will best serve the national interest, and safeguard the rights and views of the States, the Federal Government, and other interested public agencies and persons, until the Congress is able to enact permanent legislation on this very important subject. Appearing for the State Bar of Texas, its special committee on tidelands expresses appreciation of the courtesies extended by your committee, and respectfully submits the following suggestions for your consideration: First. As we view the matter, it is imperative and appropriate during this war emergency that all concerned recognize the fact that the uninterrupted (a) production of oil and other resources from the submerged lands areas, and the continued and diligent (b) search for additional oil and resources therein, are of paramount importance; and that all persons and all agencies, both State and Federal, should be willing and anxious to join with Members of the Congress in their efforts to accomplish these necessary purposes, particularly since such action will not in any way prejudice the contentions or principles of anyone on the issues to be considered and determined in connection with permanent legislation. Second. We submit that the two great purposes above stated can be accomplished in the public interest, and with justice and equity to those citizens and companies who have heretofore, at great expense and through hazardous operations, discovered and produced oil and other resources from the submerged lands areas under the authority of the States. It seems clear that the existing leases heretofore executed and operated in good faith should be confirmed, and that future operations thereon should be continued under the terms of such leases, and under such authority of the Congress as will safeguard the best interests of all concerned and which, above all else, will insure uninterrupted production and diligent explorations. Third. As above indicated, continuous production and uninterrupted search in these areas during this emergency are the most vital issues involved in this proposed interim legislation. The disposition of, or holding of, all or a part of the royalties and income from operations under the existing leases, pending action by the Congress on permanent legislation, does not present insurmountable difficulties. The proposed interim legislation should include, it seems to us, appropriate safeguards to both the States and the Federal Government, and which will in no way limit or prejudice the claims, principles, or contentions of anyone concerned, pending final action by the Congress when it gets around to settling all issues involved on a permanent basis. Fourth. Concerning authorization in the proposed interim legislation for the possible leasing of lands not now under lease, whether in the so-called tidelands or the Continental Shelf areas, it seems that it might be proper for the representatives of both the Federal Government and of the States to agree upon the terms of such additional leases. We assume that all concerned in such instances would act in good faith to insure continued production and diligent explorations in the national interest during the emergency, and that neither party would undertaken to secure an advantage or to prejudice any other parties in such operations. After all, Congress has the power and the duty of resolving the rights and interests of all parties on permanent legislation, and it is contemplated that such legislation will be accomplished within the near future. Respectfully submitted. SPECIAL COMMITTEE ON TIDELANDS, STATE BAR OF TEXAS, JOHN D. MCCALL, Member. ROBERT LEE BOBBITT, Chairman. The CHAIRMAN. If at any time any further representations are desired to be presented, the committee will be very glad to receive them. The attempt of the chairman to expedite the hearings has merely been a recognition of the fact that Members of the Senate and, indeed, Members of the House are confronted with the necessity of dealing with some of the most important problems ever presented to the Government of the United States, and we must conserve time. But we do desire to have a full expression of the views of all who may be concerned. It has been the feeling of the committee-at least of the chairman, I should say since this problem has been before the Congress since 1938 and numerous hearings have been held, that there is practically complete compilation of every point of view that can be expressed with respect to the legislation. And I take this opportunity to say definitely for the record that the hearings of this committee on Senate Joint Resolution 195, which was before it last year, are hereby incorporated as a part of the hearings on Senate Joint Resolution 20. Congressman Doyle, you have advised the Chair that you are required to be present at some other meeting and you would like to be heard first. We are very glad to accommodate you. STATEMENT OF HON. CLYDE DOYLE, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF CALIFORNIA Mr. DOYLE. Mr. Chairman and members of the committee, certainly I would be remiss if I did not state briefly that I very much appreciate the courtesy of the chairman of this committee and members of the committee in inviting me to sit at the committee table during these |