WILLIAM P. CLEMENTS, JR. GOVERNOR OFFICE OF THE GOVERNOR STATE CAPITOL AUSTIN, TEXAS 78711 July 30, 1980 STATEMENT OF GOVERNOR CLEMENTS ON STATE SET-ASIDE FUEL PROGRAM Thank you for your recent inquiry concerning the future operation of the state set-aside program by the State Fuel Allocation Office. As I strongly stated at the June 11 Texas Energy and Natural Resources Advisory Council meeting, the Fuel Allocation Office will continue to operate and the ability to use the set-aside program to meet fuel emergencies will be maintained. However, with the much improved fuel supplies and declining numbers of applications in recent months, it is probable that there will be reductions in the Fuel Allocation staff. It is also possible, if supply conditions continue to improve, that much or all of the set-aside volume will be returned directly to individual suppliers for distribution to their base period customers. It is my belief that adjusting the set-aside operation to reflect changing supply conditions is good management, pure and simple. However, let me assure you that if the fuel supply situation changes to again necessitate a full-scale set-aside operation, resources will be made available to meet this need. A reflection of this commitment is the continued development of a computerized information management and decision-making system which, when completed later this summer, will allow set-aside decisions to be more fairly and efficiently made. If you have any further concerns or questions about this or any other matter, please do not hesitate to contact me. Sincerely, William P. Clements, J . Governor WPCJR:lpl