Shas seer

Tynteeteey:

souseran:

COUR

N i S) O75
: J

FROM: Mayor J.M. Campbell

I have received a telegram from Premier Barrett outlining his
speech on the natural gas situation that was held last week. I happened to
hear it on the radio and therefore have slight knowledge of what is being
planned. As you know, the Premier believes that if there. is not more change
in attitude by the Federal Government that our gas exploration will cease.
Briefly, his idea is to increase the cost of gas to the Americans from $1.00
per thousand cubic feet to $1.93. His argument makes sense in that this is

the price that the Americans are paying for their own gas from the Louisiana

fields and why should we sell ours at a lesser amount. The increase in

revenue from this source would be in the neighbourhood of $180,000,000. per
year and his suggestion is that this be divided equally between the Federal,
Provincial and the British Columbia municipalities. According to his figures
our share would be $60,000,000. or approximately $30.00 per capita which could
mean $600,000. for our City. The most important outcome of this could be the
fact that the Premier has admitted that we need extra funding and should share
in the resources taxation. This could prove to be very important in the future.
I would like to recommend that this Council accept this idea of the

Premier's and send a letter to The Honourable Donald MacDonald, Minister of .«
Energy, indicating strongly that this is the course that the Federal Government
should take, and that a copy of the letter be sent to the Premier, and that

these letters be sent off immediately as they are having a meeting in Ottawa

this week.