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1 and the person applying for such determination shall provide 2 such information as the Administrator shall require to con3 duct a review of the ability of the proposed interstate coal 4 pipeline distribution system to comply with Federal water 5 discharge requirements. The Administrator shall have one 6 hundred and twenty days from the date of receipt of such 7 notification to conduct such review and to advise the Secre8 tary with respect thereto. The Secretary shall not issue any 9 findings pursuant to section 4 unless he has received a report 10 from the Administrator of the Environmental Protection 11 Agency advising that, in the judgment of the Administrator, 12 it can reasonably be expected that the water discharge can 13 meet the requirements of the Federal Water Pollution Con14 trol Act.

15 ACCESS TO COAL PIPELINE TRANSPORTATION CONTRACTS 16 SEC. 11. (a)(1) By filing a contract between a prospec17 tive shipper and a pipeline carrier with the Federal Energy 18 Regulatory Commission (hereinafter referred to as the Com19 mission), within ten business days of signing said contract, 20 any person operating or proposing to operate an interstate 21 coal pipeline distribution system may enter into contracts 22 with one or more shippers of coal to provide transportation 23 under specified rates, terms, and conditions but may not un24 reasonably discriminate by refusing to enter into similar con25 tracts under similar rates, terms, and conditions with other 26 shippers who are seeking service from the same origin areas

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1 to the same terminus areas and are ready, fit, willing, and 2 able to enter into such contracts in a contemporaneous

3 period. The term "ready, fit, willing, and able" as used in 4 this section includes, but is not limited to financial fitness. 5 Such contract filing shall include all rates, terms, and condi6 tions of said contract.

7 (2) Service under a contract executed pursuant to para8 graph (1) of this subsection is deemed to be a separate and 9 distinct class of service. Persons operating interstate coal 10 pipeline distribution systems shall be obligated to perform 11 only those duties specified by the terms and conditions of any 12 such contract in connection with the services provided under 13 such contract. Service under such contracts shall not be in14 terrupted for the purpose of prorating or allocating to other 15 shippers the pipeline capacity committed to service under 16 such contracts.

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(b)(1) Any person operating or proposing to operate an 18 interstate coal pipeline distribution system who files contracts 19 under this section for the transportation of a volume of coal 20 which is less than the volume of coal that would totally obli21 gate the capacity of the pipeline shall, in the sixty-day period 22 beginning on the date of the filing of such contract, enter into 23 contracts with shippers who are ready, fit, willing, and able 24 to enter into such contracts under rates, terms, and condi25 tions similar to the rates, terms, and conditions contained in

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1 the contract that has been so filed. That person shall enter 2 into such similar contracts in the chronological order in which 3 binding written offers to enter into such similar contracts are 4 submitted to such person. The obligation imposed by this sub5 section shall remain in effect

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(A) until the capacity of the pipeline is totally committed for providing transportation under contracts approved under this section, or

(B) until the end of the sixty-day period, whichever occurs first.

(2) Not later than the thirtieth day following the end of 12 such sixty-day period, a shipper of coal may file a complaint 13 with the Commission on the grounds that the person operat14 ing the interstate coal pipeline distribution system is violating 15 this subsection.

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(3) If, following a notice and an opportunity for a hear17 ing, but not later than the thirtieth day following the filing of 18 a complaint in accordance with paragraph (2) of this subsec19 tion, the Commission finds that the person is violating this 20 subsection and has, with respect to the complaining shipper, 21 an obligation under this subsection to enter into a contract, 22 the Commission shall order that person to provide the service 23 specified in the offer under such rates, terms, and conditions 24 contained in the contract that is filed with the Commission 25 under paragraph (1) of this subsection. In addition, if the

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1 Commission finds that a person is violating this subsection by 2 entering into contracts with shippers of coal pursuant to 3 paragraph (1) of this subsection in an order other than the 4 order in which binding offers are submitted, the Commission 5 shall establish the proper order of such for approval under 6 subsection (c) of this section.

7 (4) The Commission may not approve,

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8 tion, any contract for the transportation of coal by pipeline(A) if approval of such contract will result in the total tonnage of coal obligated to be transported by the pipeline in any period under contracts approved under this section exceeding the maximum capacity of the pipeline in such period; or

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(B) if the provision of coal transportation services under such contract would result in a destructive competitive practice.

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The CHAIRMAN. I thank our distinguished witnesses for being here today and I look forward to their testimony. We begin this morning-I might add that we have a large number of witnesses, so as usual we would like to receive all written statements, put them in the record verbatim and then urge-strongly urge witnesses not to read statements, but to hit the highlights. This is not the first time, of course, that this Committee has considered this legislation. However, we want to give time to Senator Burns and others who are new to this legislation to ask the questions that they wish.

We begin with the first panel, Marvin J. Boede, General President of the United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry, also testifying on behalf of the Building and Construction Trades Department of the AFL-CIO, and Jack Otero, International Vice President for Transportation, Communication and International Union. He is accompanied by K.O. Richardson, Chairman of the Railway Labor Executives' Association Task Force on Coal Slurry.

Gentlemen, welcome to the Committee and please proceed as you wish. Mr. Boede, I guess you will begin.

STATEMENT OF MARVIN J.

BOEDE, GENERAL PRESIDENT, UNITED ASSOCIATION OF JOURNEYMEN AND APPRENTICES OF THE PLUMBING AND PIPEFITTING INDUSTRY, AND ON BEHALF OF THE BUILDING AND CONSTRUCTION TRADES DEPARTMENT, AFL-CIO

Mr. BOEDE. Thank you, sir.

Mr. Chairman, members of the Committee, I am Marvin Boede, the General President of the 335,000 member United Association of Plumbers and Pipefitters and I am here today to testify in strong support of S. 318, the Coal Distribution & Utilization Act. I should point out also that I am the Vice President of the Building and Construction Trades Department of the AFL-CIO, made up of 15 national-international unions in the construction industry.

The CHAIRMAN. Mr. Boede, may I interrupt you at that point and I welcome all the members of organized labor who I hear in the audience. We appreciate their presence here.

Mr. BOEDE. It is gratifying, is it not, senator?
The CHAIRMAN. Yes, it is.

Mr. BOEDE. I am fully authorized to speak for the Department, which has repeatedly and unanimously passed resolutions supporting eminent domain legislation for coal pipelines. All together, the unions making up the Department total more than 4 million members.

Frankly, our members need the work that this legislation would provide, but there is another more compelling reason to enact this legislation, a reason that impacts on every citizen and every worker in the United States, no matter what his occupation may be.

We must have an increased measure of energy independence, or our national security will continue to be jeopardized and undermined by foreign nations, often our bitter foes, who control so much of the flow of oil in international commerce.

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