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126649 1 (1985-04-01)

handle is hein.gao/gaobactkw0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE Washington, D.C. 20548 FOR RELEASE ON DELIVERY EXPECTED AT 1:00 P.M. APRIL 1, 1985 126649 STATEMENT OF J. DEXTER PEACH DIRECTOR RESOURCES, COMMUNITY AND ECONOMIC DEVELOPMENT DIVISION BEFORE THE SUBCOMMITTEE ON ENVIRONMENT, ENERGY, AND NATURAL RESOURCES HOUSE COMMITTEE ON GOVERNMENT OPERATIONS Mr. Chairman and Members of the Subcommittee: We appreciate the opportunity to testify today on the results of our analyses of the potential impact of the administration's proposal that an indefinite moratorium be placed on SPR development and oil fill at the end of fiscal year 1985. We recenty testified before this Subcommittee at a hearing in Beaumont, Texas, on our initial efforts which centered around the effects of the proposed moratorium on the development of the Big Hill, Texas, storage site. In that hearing, we pointed out that the uncertainties inherent in an indefinite moratorium make it difficult to envision how decisions on storing and maintaining equipment at Big Hill can be made with assurance that the actions decided on will be cost effective. This would also be true at other sites as well. Furthermore, DOE's cancellation of bid solicitations for the raw water and brine pipelines and the second stage of construction at Big Hill has already put site construction behind schedule, even if the Congress does not accept the moratorium proposal. From our work at this one site, we expanded our analysis to issues related to the SPR as a whole, focusing on the costs and 0-i3 )/

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