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EMD-79-42 1 (1979-03-27)

handle is hein.gao/gaobaaywb0001 and id is 1 raw text is: P) S UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 ENERGY AND MINERALS DIVISION MARCH 27, 1979 B-178205 The Honorable James R. Schlesinger I III I The Secretary of Energy 108899 Dear Mr. Secretary: The General Accounting Office (GAO) is continuing to review the D.pa.tment . Energy's (DOE's) efforts to createj, Sprt of rent re each of the existing storage sites, (2) the status of the se.curity.meas.ures taken or planned, and (3) to a limited extent the measures taken to account for reserve oil losses orgains. Although we noted some problems during our limited re- view of the measures taken to account for reserve oil losses or gains, these problems have been corrected by DOE. However, with respect to security measures and oil withdrawal capa- bilities, we noted three issues that we believe warrant your attention. --The three existing storage sites do not have permanent oil withdrawal capability and are not scheduled to have such capability until the summer and fall of 1979. --Contingency plans for transferring oil in the event of a non-embargo emergency such as the West Hackberry, Louisiana, fire on September 21,. 1978, have not been developed. --DOE has not developed or implemented a site-specific security plan for each existing storage site, but does have some degree of actual security at each site. As the oil fill progresses, the monetary value of the reserve program increases. Oil stored in salt caverns or mines without withdrawal capability is not readily available for use. Therefore, we believe permanent withdrawal capa- bility at future sites should be available, to the extent EMD-79-42 (30612) , , : ' . . . . . . . . . . : , , , , ' . : . . . ' . . . .. . .

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