Without seeing your code, it's hard to tell. It may just be that all the stuff that comes before in the log takes up seven pages.
You can reset the page number to anything you like - try this just before the first layout:
option pageno=1;
Are you comparing the page numbers generated in the SAS LOG to the page numbers generated in the LST output? They are separate output locations with their own page counters.
Post code and the program log.
If you test with smaller data sets such that only 2 pages are created for the first two groups do you still have a similar behavior for a the third? If so post dummy data that will generate the type of output you describe with small enough data we can examine. (I really am not interested in trying to wade through 700+ pages).
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