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126492 1 (1985-03-21)

handle is hein.gao/gaobactkg0001 and id is 1 raw text is: 




              UNITED STATES GENERAL ACCOUNTING OFFICE
                         WASHINGTON, D.C.

                                   FOR RELEASE ON DELIVERY
                                   EXPECTED AT 9:45 A.M.
                                   MARCH 21, 1985

                           STATEMENT OF
                           DANIEL C. WHITE
           ASSOCIATE DIRECTOR, RESOURCES, COMMUNITY AND
                   ECONOMIC DEVELOPMENT DIVISION
                            BEFORE THE
            SUBCOMMITTEE ON ENERGY AND THE ENVIRONMENT
          HOUSE COMMITTEE ON INTERIOR AND INSULAR AFFAIRS
                                ON
           THE U.S. URANIUM ENRICHMENT SERVICES PROGRAM


Mr. Chairman and Members of the Subcommittee:

     We appreciate this opportunity to discuss our views

concerning several recent initiatives and proposals in the

Department of Energy's (DOE's) uranium enrichment program.  Our

testimony today will be based on our recent work--particularly our

December 27, 1984, legal opinion concerning the legality and

propriety of actions DOE has taken regarding its new Utility

Services Contract and of certain accounting modifications made in

the way this program accounts for costs.  In addition, we will

provide information on unrecovered enrichment program costs and

our ongoing enrichment work.

     Before I discuss these issues, it is important to set in

perspective the fundamental problems which have developed in the

uranium enrichment program over the last several years.  The

market environment in which DOE's program must operate today is

considerably different from the one existing at the time the

full-cost recovery requirement for this program was established.



                        03/533                  11DI U1111

                                                    126492

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