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RCED-84-192 1 (1984-09-25)

handle is hein.gao/gaobabnng0001 and id is 1 raw text is: 




UNITED STATES GENERAL ACCOUNTING OFFICE
           WASHINGTON, D.C. 20548


RESOURCES COMMUNITY,     -'
AND ECONOMIC DEVELOPMENT
     DIVISION by iri v.


B-214712


RELEASED


The Honorable John D. Dingell
Chairman, Subcommittee on Oversight
  and Investigations
Committee on Energy and Commerce
House of Representatives

Dear Mr. Chairman:


Subject:


Evaluation of the Department of Energy's
Economic Regulatory Administration Office
in Tulsa, Oklahoma (GAO/RCED-84-192)


     In response to your March 7, 1983, request and agreements
reached with your office, we reviewed the operations of the
Economic Regulatory Administration's (ERA's) Office in Tulsa,
Oklahoma. As your office requested, we reviewed (1) the change
in the management of audit cases involving alleged oil pricing
violations, (2) ERA's basis for changing its treatment of crude
oil transactions between crude oil producers and affiliated crude
oiYlresellers, and (3) the justification for employee performance
awards.

     We found that the change in the management of audit cases
did not adversely impact the development and resolution of audit
findings. We did not find any examples of audit findings being
dropped or modified as a result of the change. We also found
that ERA's basis for changing its treatment of crude oil trans-
actions between crude oil producers and affiliated crude oil
resellers was consistent with both the Department of Energy's
(DOE's) regulations and a 1982 court decision involving similar
transactions. Further, we found that employee performance awards
were fully documented and made in accordance with DOE criteria
for making such awards.

BACKGROUND

     The Emergency Petroleum Allocation Act of 1973 (15 U.S.C.
751 et seq.) required DOE and its predecessor agencies, beginning


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