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EMD-78-65 1 (1978-08-14)

handle is hein.gao/gaobaaxti0001 and id is 1 raw text is: DOCUMENT RESUNE 05798 - [B22873521 Questionable Suitability of Certain Salt Caverns and Dines for the Strategic Ietroleu Reserve. ZED-78-65; B-178205. August 14v 1978. 24 pp. + appendix (13 pp.). Report to the Congress; by Robtrt F. Keller, Acting Comptzoller Goneral. Issue Area: Energy: Role of Fossil Fuels in Meeting Future Needs (1-09). Contact: Energy and minerals Div. Budjet Function: Naturui Resources, Invironment* and Energy: Energy (305). Orqanization Concerned: Department of Energy. Conqressional Relevance: House Committee rn Science and Technology; Senate Committee on Energy and Natural Resources; Congress. Authority: Energy Policy and Ccnservation Act (P.L. 94-163). Federal dine Safety and Health Act of 1977 (P.L. 95-164). Th3 Energy Policy and Conservation Act requires the Department of Energy (DOE) to create a strategic petroleum reserve to protect against disruptions in energy supplies. DO3 plans to store 1 billion harrels of crude oil in salt caverns and mines by Dc0cenber 1985. Although the £upartment has aot yet estimated the cost to store 1 billion barrels, it did estimate the cost to store 750 million barrels at S14.4 billion. Findings/Conclusions: Of the 19 existing salt caverns that DOE has acquired, 6 may not be suitable for long-term storage because they do not meet structural design standards for cil storage suitability. Three of the siN caverns have already been certified for stoirage, but the other three failed to pass tests. Alternatives to the continued use of these caverns if they are found to be unsuitable are: (1) abandoning the unsuitable caverns and using additional cavern storage capacity developed during withdrawal, or (2) using salt water to displace oil during withdrawal so no additional growth can take place. If these alternatives do not work, DOI may have to resort tc acquiring other existing caverns or building new ones. 2he salt mine acquired by DOE may not be suitable for long-term cr%4e oil storage because of safety problems and the resulting potential legal and financial ramifications. Ccst Gatimates for acauisition, construction, and operatio& of reserve storage fa .ilities have not been adequately documented. Recommendations: The secretary of Energy should: study the alternatives for minimizing the -1eks associated vitk uaing the potentially unsuitable caverns and make the study results available to the Congress; develop a formal system tcr documenting, before test completicn, any acceptable deviations and approvals for such deviations; delay turther oil atcrage development at the salt ine until a sclution has been developed to the problems iv-olved in using the salt sine for stcrage; and

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