countries. collaboration was promoted and discussed among certain key Under this process, interested countries would share and compare their program plans in various technical areas of energy R&D while they are still being developed, and adjust them accordingly to take full advantage of each other's capabilities. These recommendations encourage early consultation in the design of program plans, as well as periodic monitoring of progress in collaborative energy R&D at the political level. Managed and administered over 130 cooperative energy R&D technical exchange agreements and other commitments, covering more than 260 projects, with foreign nationals and international organizations including the IEA, the Nuclear Energy Agency (NEA), and the International Atomic Energy Agency (IAEA). Drafted and negotiated 48 new technical exchange agreements and 28 extensions of existing technical exchange agreements. A total of 14 foreign countries were involved. Technical fields include nuclear energy, radioactive waste management, enhanced oil recovery, natural gas, geothermal, solar, nuclear physics and coal. FY 87-89 OBJECTIVES Promote and coordinate expanded international collaboration in energy research and development by DOE with other countries in order to maintain scientific progress and optimize the utilization of available scientific resources. Secure support for enhanced international R&D collaboration outside the Department by briefing other Executive Agencies and Congressional staffs, committees and offices on the objectives to be achieved and the policy rationale. Promote a technical base for the implementation of a Western policy framework to encourage the development of alternatives to Soviet Gas, including ensuring and monitoring our energy commitment to the IEA and implementing specific gas emergency measures. Promote the free market in bilateral and multilateral energy relations through, for example, the removal of trade barriers, as the best way to create an environment that will best ensure adequate supplies at reasonable prices. Analyze political, economic and energy developments and trends in international markets in order to identify emerging issues which will effect U.S. international energy security interests. Promote enhanced cooperation and a more intensive energy policy dialogue with key Asia-Pacific countries in order to strengthen the energy security of this region and prospects for greater U.S. energy exports. Continue the historical commitment to maintain and strengthen the international nonproliferation regime. International Affairs considers nuclear nonproliferation one of its primary statutory responsibilities and will continue to exert its best efforts to assure protection against the spread of sensitive nuclear technologies. Continue support of U.S. efforts to enhance the viability of the Nuclear Nonproliferation Treaty through increased Improve and enhance assistance to the IAEA in fields of Accomplishment of our objectives will: provide a sound analytical basis on which to conduct our energy relations with both oil producing and consuming nations; establish and maintain a dialogue with other countries on important global energy matters; enchance U.S. international energy research and development collaborative efforts; help reduce the risks of nuclear weapons proliferation while expanding the markets for the peaceful applications of nuclear energy; lessen U.S. vulnerability to energy supply disruptions; and provide accurate and reliable advice and support to the Secretary and other energy policymakers. Along with the request for International Affairs is the funding for Policy and Management IE. This includes salaries and expenses for the immediate Office of the Assistant Secretary for International Affairs and Energy Emergencies and the Management Services staff which performs administrative support functions for the IE organization. The FY 1987 request of $710,000 provides for 12 full-time equivalents (FTEs). Funds requested are for salaries, benefits and travel as well as approximately $100,000 for contractual support. This concludes my statement. I will be happy to answer any questions. Thank you. STATEMENT OF J. MICHAEL FARRELL, GENERAL COUNSEL, DEPARTMENT OF ENERGY Mr. Chairman and members of the committee, I would like to submit this statement for your consideration of the Fiscal Year 1987 budget request for the Office of General Counsel. The Office of General Counsel provides the legal services necessary for the Secretary of Energy and the Department as a whole to accomplish their goals. These services cover the entire range of the Department's activities, with the exception of the Federal Energy Regulatory Commission. Our activities include legal counselling, legislative drafting, development of regulations, and the conduct of litigation. In addition, the office administers the Department's Standards of Conduct and Patent programs. During the past year the office contributed to the Department's success in achieving numerous objectives. One of During the most visible ways we have served the Government's interests is through litigation. Our attorneys, in conjunction with Department of Justice attorneys, have represented the Department and the Government in an increasing number of lawsuits. the past year the Department has been directly involved in more than 300 cases, and indirectly involved in an additional 300 cases. Much of this litigation stems from claims of radiation injury. Currently there are more than 130 radiation related cases, involving over 5,000 plaintiffs and several billion dollars in claims. We have been successful in key cases. One hundred and thirty-five claims for approximately $500 million dollars arising from nuclear weapons testing in the Pacific were dismissed by a federal court in California. That court also upheld the constitutionality of Section 1631 of the Department of Defense Authorization Act of 1985 which substitutes the U.S. for DOE contractors in all similar radiation cases. Other significant successes not related to radiation include what is thought to be the largest civil judgment ever recovered by the government. The U.S. Supreme Court left standing a ruling that Exxon Corporation had overcharged consumers 815 million dollars for crude oil. The court ordered the money to be distributed among the states for use in energy conservation programs. Additionally, in January of this year, the Department, through court victory, saved from certain closure the nation's only coal gasification plant. The loans for the plant were guaranteed by DOE. After default on the loans by the plant operators, gas purchasers attempted to terminate their purchase In a suit filed by DOE to foreclose its interest in the plant, the Department succeeded in enforcing the gas purchase contracts which have permitted the plant to continue in operation and preserve the interests of the Department. contracts. Another significant activity is our effort, in conjunction with the Economic Regulatory Administration, to conclude promptly and properly the remaining cases arising under the now-expired Emergency Petroleum Allocation Act's (EPAA) crude oil and petroleum product price control regulations. Duplicative efforts between the Office of General Counsel and the Economic Regulatory Administration were eliminated and management of both litigation and the settlement process was improved through the consolidation of EPAA enforcement cases and the transfer of the General Counsel personnel responsible for those cases to ERA last year. The cases arising out of the Department's decisions to conclude the entitlements program will remain in the Office of General Counsel as do the personnel required to defend the Department's EPAA deregulatory actions. Not only have we been successful in our litigation efforts to defend and pursue the Department's interests, we have also been able to promote efficient use of our budgetary resources. For example, by intervening in state level utility ratemaking proceedings affecting the Department's numerous facilities, we |