Financial Situation of the Great Plains Coal Gasification Project

Pursuant to a congressional request, GAO discussed the financial situation of the Great Plains Coal Gasification Project, focusing on: (1) how current Department of Energy (DOE) oil price projections compare with the March 1983 Great Plains cash flow estimates; (2) what the after-tax cash flow to partner companies would be, based on the DOE estimates; and (3) what the effect on the after-tax book earnings of the partner companies will be if the DOE projections are used. GAO would not address a question concerning price guarantees because it involved legal issues that cannot be answered by GAO.