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RCED-94-199R 1 (1994-04-22)

handle is hein.gao/gaobackok0001 and id is 1 raw text is: Isl q GAO United States General Accounting Office Washington, D.C. 20548 Resources, Community,and Economic Development Division B-227295 April 22, 1994 The Honorable John D. Dingell Chairman, Subcommittee on Oversight and Investigations Committee on Energy and Commerce House of Representatives Dear Mr. Chairman: - *~ : (a, rj~ ~ ~ £ ~ I ~ o*~O 0 ~ Your office recently requested clarification on the extent to which the conclusions reached in our report Federal Research: Additional Funds for Terminating the Super Collider Are Not Justified (GAO/RCED-94-153, Apr. 8, 1994) applied to the cost of settling a claim by the state of Texas for its investment in the collider project. With $735 million available for termination activities, the Department of Energy (DOE) had estimated it would cost $568 million to terminate the Superconducting Super Collider project, but that estimate did not include the cost of settling Texas's claim. We concluded that DOE's request for an additional $180 million of fiscal year 1995 funds for terminating the collider project was not justified. Your office asked us the following two questions: -- Has DOE estimated the cost of settling with Texas? -- Does DOE's cost of settling with Texas justify appropriating an additional $180 million in fiscal year 1995? DOE has not estimated the cost of settling Texas's claim for the state's investment in the project. As we disclosed in our report, Texas has claimed that DOE owes the state a refund of $539 million. Although DOE has agreed that the state invested about $500 million, the Department has not yet determined how much is owed to Texas and is currently negotiating with the state to reach a settlement. Therefore, the cost of a possible settlement is not yet known. Nor could DOE predict when a settlement will be reached. GAO/RCED-94-199R, Texas's Collider Claim

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