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B-114812 1 (1970-05-18)

handle is hein.gao/gaobabkqp0001 and id is 1 raw text is: ~ ~ee~ Side He eirf ~MAY 1 8 1970 B-114812 Dear Mr, Chairman: In our February 2, 1970, meeting with you, Mr. Edmondson, and Mr. Burton, we discussed the January 23, 1970, comments of the De- partment of the Interior on our report on the review of the Govern- ment'bs helium conservation program, dated September 10, 1969 (B-11481 A). Our report pointed out that significant changes have occurred since the Bureau of Mjnes' present helium program was authorized by the Congress in 1960 and that, in light of these changes, your Commit- tee may wish to reappraise the basic concept and size of the program. To demonstrate the effect that these changes have had on the Government's program, the report presented a comparison of actual operations through fiscal year 1969 with those anticipated in 1963 when the program was initiated. In addition, to furnish some indication of the future effect that these changes could have on the Government' s helium program, the report compared the Bureau' s long-range storage and funding projections prepared when the program was undertaken with projections developed by us in 1969 on the basis of data obtained from Bureau records. The comparisons were presented to demonstrate the report's ba- sic premise that, because of recent changes, the volume of helium that may be stored by 1986, as well as the related costs, may become sub- stantially larger than initially anticipated. The Department, in its comments to the Committee, indicated that, if these 1969 estimates of helium sales should materialize, the helium stograe ad poram indebtedness would be as presented in the report. It expressed the belief, however, that reliable estimates of helium requirements over long periods of time are uncertain. The Department took the position that the helium conservation program could be self-liquidating by 1997. This position was primarily based on the assumption that the Federal helium r e reenc estimated

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