The over-all supply and demand situation is periodically reviewed by PAD to determine the magnitude of additional production required. As of October 1, 1951, increased demands on the part of the military and the loss of the entire production from the Abadan refinery in Iran resulted in an estimated shortage in the world-wide supply of high octane number aviation gasoline of 24,000 barrels per day. Inasmuch as approximately 90 percent of the high octane aviation gasoline production facilities in operation are in the United States, this country was called upon to fulfill that requirement normally satisfied by Abadan production. The majority of the product from that source went to commercial operations carried on by friendly foreign countries overseas and by the American airline operators in foreign areas. Actually, the loss of Abadan production dated back to June 1951, but operations were continued in foreign areas largely through depletion of stocks in storage. However, certain airline operations, particularly in the Far East, had been drastically reduced. Until last October, it had been possible to provide adequate supplies of fuels by means of well-established procedures and without using allocation powers. On October 19, 1951, the Petroleum Administration for Defense issued PAD Order No. 4, placing a floor on the lead content of commercial aviation gasoline delivered for domestic consumption at 4.0 milliliters per gallon and for export at 4.6 milliliters per gallon. This action was taken to overcome a significant portion of the shortage of high octane aviation gasoline mentioned above. In order to obtain additional supplies of aviation gasoline, the Petroleum Administration, at the same time, also issued PAD Order No. 3. This order required that alkylate and all other key blending components of a similar type required in the manufacture of high octane number aviation gasoline be reserved strictly for that use and required the use of all available raw materials for the production of alkylate, as directed by PAD, in order to insure maximum production of that vital aviation gasoline component. The possibilities of placing a floor on the lead content of commercial aviation gasoline had been discussed with representatives of the airlines and their industry associations in the fall of 1950 when a shortage of somewhat lower magnitude was being faced. They presented at that time their objections to increasing the lead content of the fuel that they use to the military specification of 4.6 milliliters per gallon. These were carefully considered. At that time other means-which are still practiced-were available to increase production of aviation gasoline, and it was not necessary to take action in increasing tetraethyl lead content. The main objections which airline operators have to higher tetraethyl lead content arises from the fact that the addition of tetraethyl lead to fuels causes increased engine deposits. This is true for automotive as well as aircraft engines. Tetraethyl lead is a compound of lead and hydrocarbons which is vaporized or injected along with the fuel into the cylinders of the engine for the purpose of suppressing knock. Modern high output automotive and aircraft engines would not be operable with available fuels without the addition of tetraethyl lead. The fluid used contains scavenging agents which materially reduce, but do not entirely eliminate, engine deposits. The effect of these deposits must be offset by adequate engines maintenance practices which, in the case of increased tetraethyl lead, generally means more frequent overhauls. The use of high tetraethyl lead content fuels is not new. During World War II, all high octane military and commercial aircraft fuels contained 4.6 centimeters of tetraethyl lead. With this tetraethyl content, it was possible to meet the requirements of aviation fuels with limited supplies of alkylate. After the war, with large producing capacity for alkylate available, it was possible to replace a portion of the tetraethyl lead in commercial fuels with alkylate. The main point here is that with the present type engines, we could never completely eliminate the use of tetraethyl lead, and that even though alkylate were not in short supply, it would be necessary to continue to use some tetraethyl lead in order to produce fuels which would perform satisfactorily. This, of course, means that we are discussing a degree of a situation, rather than any specific principle, and that in any case there exists the problem of deposits in engines as a possible result of tetraethyl lead. Our position, when PAD Order No. 4 was issued in October 1951, was not arbitrary. The reports submitted to the Petroleum Administration during the previous year had shown that approximately 50 percent of the commercial airline operations in this country were then being conducted on fuel containing 4.0 milliliters of Tetraethyl lead per gallon, compared to 3.0 milliliters for the most of the remaining operations. A large portion of these operations was on the west coast, where the over-all supply situation on aviation gasoline had been very tight and had forced individual refiners to supply higher lead content fuels in order to satisfy demand. This fact was discussed with the Civil Aeronautics Administration and Civil Aeronautics Board, and there were no data forthcoming from those agencies to indicate that any extraordinary operating problems were being encountered in that area from the use of 4.0 millileters tetraethyl lead fluid. This connotes that the Pacific airlift, as well as all commercial operations in that area, had been operating satisfactorily on fuel containing the higher lead content for at least a year. Fuels containing a uniform tetraethyl lead content of 4.0 milliliters per gallon, are now used for commercial operations at all airports throughout this country. For this reason, we believe that neither the fuel composition, which is manufactured to meet specifications, nor the tetraethyl lead content of the fuels, can have any effects which would be peculiar to the recent tragedies at Elizabeth, N. J. In addition to the long-standing use of considerable quantities of 4.0 milliliters fuel in domestic commercial operations, at the time PAD Order No. 4 was introduced, approximately half of the aviation gasoline for export in the fourth quarter for commercial use in foreign areas was scheduled to contain 4.6 milliliters of tetraethyl lead. In this connection, PAD has been informally advised by the military services, the high octane aviation gasoline of which specifies 4.6 milliliters tetraethyl lead per gallon, that they never had an accident where tetraethyl was found to be a significant factor. Additional discussions were held with representatives of the airlines, their industry associations, CAA and CAB, on October 23 and 25, 1951, to consider a request by CAB for a further delay in effecting an increase in tetraethyl lead content of commercial aircraft fuels. In the face of the magnitude of the shortage of aviation gasoline existing at that time, we did not feel justified in delaying the effective date, October 30, of section 3 of PAD Order No. 4. Section 3 of PAD Order No. 4 relates to the tetraethyl lead content of commercial aviation gasolines. It had been estimated that approximately 5,500 barrels per day of additional grade 100-130 aviation gasoline would be made available by the application of this order, which was a significant contribution toward relieving the over-all shortage. It has been agreed with representatives of the airlines that when additional information on this subject is available, meetings will be scheduled to exchange information on any additional operating problems that are incurred by this order, and on increased availability of aviation gasoline resulting from the application of the order. At this writing, no new information has been received. In summarizing, it is important to describe the alternatives which were open to PAD in October 1951. The world-wide shortage of aviation gasoline was 24,000 barrels per day. And a portion of this shortage could be obtained by the provisions of PAD Order No. 3, and other small increments could be obtained by marginal procedures not previously considered necessary. These steps were not sufficient to produce the supplies of aircraft fuels required for military and essential civilian use. There were only three possible courses of action left open to PAD: 1. Ration civil aircraft fuels; 2. Restrict deliveries to the military; 3. Increase the tetraethyl lead content of civil aircraft fuels by issuing PAD Order No. 4. Of the afore-mentioned alternatives, PAD considered PAD Order No. 4 as the least objectionable solution to the problem. We fully recognize the significance of increased tetraethyl lead in civil aircraft fuels, but our review of all the evidence led us to different conclusions as to the magnitude of the adverse effects predicted by the airline operators. For this reason, we were able to make the decision to proceed with PAD Order No. 4 with the full belief that it was in the national interest. It was also stated, at that time, that as soon as the supply of aviation gasoline was sufficient to meet the essential requirements from military and civilian sources the order would be immediately withdrawn. There are present indications that the supply position should be approximately in balance by the end of the third quarter of this year, and if there are no significant increases in demand, we believe that such action could be taken at that time. Mr. Chairman, that completes my formal statement. Mr. BECKWORTH. Mr. Davis, while these discussions were going on prior to October when the order was issued, were you in on all these discussions, or most of them? Mr. DAVIS. Yes. Mr. BECKWORTH. What was your official capacity then? Mr. DAVIS. Director of the Refining Division of the Petroleum Administration. Mr. BECKWORTH. I assume that you were one of the primary men in PAD that had the responsibility of reaching the decision, if not the primary man? Mr. DAVIS. That is right. It was in my division. Mr. BECKWORTH. As you recall the discussions back there, was there a great deal of time devoted to the question of whether changes would have to be made in the maintenance of engines and the checking of them? Mr. DAVIS. The detailed changes that would have to be made? Mr. BECKWORTH. Yes. Mr. DAVIS. No, sir. Mr. BECKWORTH. Did you get the idea that it would be a very serious problem? Mr. DAVIS. We did not view it as a serious problem for this important reason: 50 percent of the aviation gasoline being delivered to commercial airlines in the United States for the preceding year contained 4 cubic centimeters of tetraethyl lead which was the level at which PAD Order No. 4 was directed. It only raised the remaining 50 percent to the level of the other 50 percent for the past year. Mr. BECKWORTH. You stress there 50 percent of the gasoline being delivered to domestic companies; is that not right? Mr. DAVIS. Well, for the airlines in the United States, all commercial airlines. Mr. BECKWORTH. The significance as between domestic and foreign is really not important as to how much gasoline is being used or not? Mr. DAVIS. It is important to this extent: That exports are shipped out of the United States to supply foreign airlines and American airlines operating in foreign countries. Mr. BECKWORTH. Let me put it this way. I believe you said the really significant fact is that at the time the question of issuing the order was being discussed, 50 percent of the gasoline already had that high lead content. Mr. DAVIS: That is correct. Mr. BECKWORTH. Does that mean that 50 percent of the gasoline used by American companies, whether they were buying foreign or domestic, had that amount of lead in the gasoline? Mr. DAVIS. If they fueled at airports in the United States. Mr. DAVIS. If they fueled their airplanes at the airports in the United States. That is what is meant by domestic commercial. Mr. BECKWORTH. In checking into that particular situation, did you find that most of the miles they flew were miles flown on gasoline such as you are describing? Mr. DAVIS. It was about equally divided, Congressman, between the 3 cubic centimeter material and the 4 cubic centimeter material or milliliters, which is the same thing. Mr. BECKWORTH. To put it another way, did you find that a good many of the miles flown by American companies were flown using gasoline that was obtained outside the country, or not? Mr. DAVIS. No, not from the United States. The production of aviation gasoline is over 90 percent located in the United States and the airlines throughout the world draw their supplies either from the United States or from the remaining production outside of the United States, which is less than 10 percent. Mr. BECKWORTH. Did foreign users make any unusual demands for certain kinds of gasoline? Mr. DAVIS. With the closure of the Abadan refinery, of course that placed a great additional burden on the supplies from the United States to supply the free countries of the world and make up the deficit created by the shut-down of that plant. They placed their demands on the United States. Mr. BECKWORTH. When they ask for gasoline do they in general specify a particular content of lead, or not? Mr. DAVIS. They are quite willing to take whatever they can get. The 4 cubic centimeter material in that 50 percent of the commercial distribution in the United States was largely on the west coast of the United States, as I mentioned before. Some airlines operated out there exclusively on 4 cubic centimeter material. Others operated on 4 cubic centimeters when they were. fueling in San Francisco; they might operate on 4 cubic centimeters in Chicago, and 3 cubic centimeters in New York, or at different airports throughout the country they would get either 3 or 4 or 32 cubic cen timeters, depending upon the points at which they were refueling and the supply contracts which were available and which arranged for the delivery of fuel at those airports. But out of the whole total of the country, half of the gasoline was 4 cubic centimeters. If you put it in a common pot, it would work out about 312 cubic centimeters. Mr. BECKWORTH. How long had it been 4 cubic centimeters? Mr. DAVIS. For about a year or more; since before the Korean situation. Mr. BECKWORTH. PAD felt that ample experience had been acquired in connection with the 4 cubic centimeters? Mr. DAVIS. Most of the off-shore gasoline in California was 4 cubic centimeters or higher. The military has exclusively received 4.6 cubic centimeters per gallon. Mr. BECKWORTH. Do you have any questions, Mr. Wolverton? Mr. WOLVERTON. Mr. Chairman, as previously indicated, I have been greatly concerned over the possible detrimental effects that might arise from the standpoint of safety in the use of the increased quantity of ethyl lead. I communicated my fears to Secretary Chapman. I have before me the letter which I addressed to him, which I would like to make a part of the record in order that his reply might also be appropriately made a part of the record. (The letter is as follows:) Hon. OSCAR L. CHAPMAN, Secretary of the Interior, Department of the Interior, Washington, D. C. DEAR MR. SECRETARY: I am a member of the House special committee to inves tigate the cause of recent air accidents at Elizabeth, N. J. and to make such |