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OSP-75-12 1 (1975-03-31)

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   B-1 78205         RELLASU              March 31., 1975

   .n Hooal Abrhe A. RibicoflIlIIIIIIIIChai rmanlII
   Crrnittee on 6over'rt Operatiors          I S-,             LM097067
   United States Senate
   Dear Mr. Chairman:
         This letter is in further repcrse to your letter of February 8,
     1974, aW suvlequent discussions with your staff ccncerning our agree.ment
     to continuoLsy ronitor the operaticns of the Federal ;_nercv A,ii stra-  73-
     tion. In our December 6, 1974, re crt to you on 'Prcbles in the Federal
1    Energy A&d:nistration's Comoliance and Enforcement Effort (8-178205),
    we discussed major rroble.s in tre A, inistration's comp!iarce and
    enforcement activities. In particular, ,Pe pointed out the need for the
    Adinistration to audit producers of crude oil and to imprcve its audits
    at the refineryv level.

         In December 1974 hearings before the Subcomittee on Peorganization,
     Research, ar,d international Oroanizations, Serate Committee on Goverr.ent
  -t Operations, Akdxirls-ration officials agreed that their compliance and
     enforcem-,ent progran needed considerable redirection to enhace its  S-L o;n?
     effectiveness. They stated that a revised stffing plan had been approved,
     hi ch would stergthen their conplirce and enforcement efforts, particu-
     larly at the producer and refiner levels.
         This letter provides, infc-cation on the Administration's progress in
     redirecting the cototiance ano enforcerent program since the hearings,
     along with preliminary inforiration on the results of the initial crude
     oil producer audits.
         At September 30. 1974. 850 employees were assigned to the
    Atinlistraticn's co-plianL_ and enTorce,-ent prc.ram. Of these 850, 696
    were assigned to the retail-wholesale audits, 88 to refinery audits, and
    66 to propane investigations. In October 1974, the Administration
    approved a revised staffing plan for the compliance and enforcerent pro-
    gram to be effective Dcember 31, 1974. The following table shows the
    Administration's planned allocation cif manpower at December 31, 1974, and
    the actual allocations as of December 31, 1974, and March 14, 1975.





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