• res erse for per,onzl ..________Prf!pare response for auto pen BC______ ________You reply et's Discuss 11/1iC WPC THOMAS S. SCHALK 525 FIRST WICHITA NATIONAL BANK BLDG. WICHITA 1-ALLs, TEXAS 76301 Governor Clements State Capitol of Texas Austin, Texas 78710 April 16, 1982 Dear Governor Clements: HAN: - FYI !" 2 1982 - DRAFT RESPONSE: a/P cc RECEIVED WPC I enjoyed your talk today given at the North Texas Oil and Gas Association. You made one point in your talk that I would like to ask about. That is the importing of oil and gas from Mexico. I agree that we are better off buying from Mexico than OPEC, but I am worried about what markets this will displace as far as domestic production is concerned. At the time that the first agreement was turned down, during the Carter years, we had a great need for oil and particularly gas from Mexico; however today that does not seem to be the case. As you well know many of our gas pipelines are full, many of the storage areas for gas are full, and the take of natural gas is being curtailed in many areas. This also seems to be the case for oil as reflected by the soft crude prices. Any agreement with Mexico, for gas, would seem to work much as the agreements with Canada for gas in that it is displacing domestic gas going to the Northwest Pipeline into the Oregon and Washington area. Those of us active in the 4 corners area have felt this effect for years. The Mexican gas would seem to be the type of situation to me. Therefore I am wondering if 1 we should now displace American gas from the market place for Mexican gas. someraimsams Sincerely, eJ kM404.41, ka).4.•)1,frJ1.INNA0+ 110 VJ v4.4.,4eJod."r oik cro 0.•xl ,^•140- s Thomas S. Schalk
