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RCED-84-59 1 (1983-10-17)

handle is hein.gao/gaobabnds0001 and id is 1 raw text is: 

                    UNITED STATES GENERAL ACCOUNTING OFFICE
                               WASHINGTON, D.C. 20648


 nESOURCES, COMMUNITY.
AND ECONOMIC DEVELOPMENT
     DIVISION


     B-207876                                      OCTOBER 17, 1983


     The Honorable Byron L. Dorgan                     ill l B il l


     House of Representatives
                                                          122675
      Dear Mr. Dorgan:

           Subject: Financial Situation of the Great Plains Coal
                     Gasification Project (GAO/RCED-84-59).

           Your letter of October 3, 1983, requested that we answer four
      questions concerning the financial situation of the Great Plains
      Coal Gasification Project. Specifically you asked:

            1. How do the most current oil price projections by the
               Department of Energy (DOE) for the National Energy Policy
               Plan IV (NEPP IV) compare to the estimates the sponsors
               used in their March 31, 1983, cash flow forecast?

           2. What would be the annual and cumulative after-tax cash
               flow to the partner companies if the most recent DOE
               projections are used?

           3. What would be the effect on the after-tax book earnings
               of the partner companies based on the current DOE middle
               and low case forecasts?

           4. Are further solicitations for competive bids required
               before the U.S. Synthetic Fuels Corporation may enter
               into direct negotiations with Great Plains for price
               guarantees?   (See Section 131(B)(4) of the Energy
               Security Act.)

      You asked that we provide this information for your use during
      hearings on this project scheduled for October 18, 1983, before
      the Subcommittee on Environment, Energy, and Natural Resources,
      House Committee on Government Operations.

           While we are able to provide you information on your first
      three questions, the fourth raises legal issues which are not

                                                                 (301646)

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