The Defense Production Act was adopted during the Truman Administration, giving the President tremendous economic powers. It was clear in looking at the context of that debate, and the subsequent use of those powers, that Congress intended that those powers be used only in the case of emergencies that had clear national security implications. Since its inception in 1950, it has been used principally for defense purposes. There have been two major exceptions, however. One was Richard Nixon's use of the Defense Production Act to impose wage and price controls, after which Congress wisely repealed that provision of the law. The second variance was its recent use in 2002 to mandate the sale of natural gas against the business judgment of private sellers. This hearing examines how this powerful instrument was used, and potentially misused, as the 107th Congress look to rewrite this bill. The world has simply changed too much to allow the Act to be extended in its present form. Witnesses in this hearing take a hard, dispassionate look at this act, how it was implemented, what the implications were, how it was used or misused, and what that says to Congress about rewriting this law. Witnesses to this hearing include: Eric J. Fygi, and Paul F. Carrier. Material for the record supplied by: Eli D. Bebout, Spencer Abraham, Kent M. Harvey, Gray Davis, Bill Richardson, Erik N. Saltmarsh, Richard Glick, and Gordon R. Smith.