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122654 1 (1983-05-16)

handle is hein.gao/gaobactej0001 and id is 1 raw text is: 





                                      For 'Release at 19:0 a



                          STATEMENT OF
                    J. DEXTER PEACE, DIRECTOR
                RESOURCES, COMMUNITY AND ECONPMIC
                      DEVELOPMENT DIVISION
                           BEFORE THE
          SUBCOMMITTEE ON OVERSIGHT-AND.INVESTIGATIONS
                 HOUSE COMMITTEE ON INTERIOR AND
                         INSULAR AFFAIRS

Mr. Chairman and Members of the Subcommittee:

     We appreciate the opportunity to be here today to discuss
our recent report entitled Analysis of the Powder River Basin
Federal Coal Lease Sale:  Economic Valuation  Improvements and
Legislative Changes Needed'  (GAO/RCED-83-119). In response to
your request-later  joined by Senator Max Baucus--we have spent
almost a year studying this very sensitive and controversial
sale.  The many issues surrounding the sale are technically com-
plex, interrelated, and simply cannot be examined in isolation.
The issues we have evaluated include:


     --an alleged unauthorized disclosure by  Interior of
       proprietary coal data prior to the sale;

     --the change of bidding systems made about 6 weeks before
       the Powder River sale;

     --whether Interior received fair market value for leased
       coal; and

     -a  question over whether the objectives  of current coal
       leasing law are realistic in light  of actual coal
       development patterns.

     In evaluating these  issues we raise--on the one hand--some
serious questions regarding Interior actions  and the reasoning
behind them.  On the other hand we recognize  that Interior faces




                                                       122654

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