Mr. Lamb, do you have any prepared material you would like to speak from? STATEMENTS OF GEORGE LAMB, DIRECTOR, OFFICE OF COAL RESEARCH; AND S. G. LASKY, ASSISTANT DIRECTOR, OFFICE OF COAL RESEARCH, DEPARTMENT OF THE INTERIOR Mr. LAMB. I have no statement, sir, and I think I can summarize quickly. I know that the time is limited. The Office of Coal Research started on an operating basis in April 1961. It was at that time we began recruiting our technical staff and began considering proposals for contract purposes. The act under which we operate was approved in 1960 and it provides "To encourage and stimulate the production and conservation of coal in the United States through research and development, by authorizing the Secretary of the Interior to contract for coal research and for other purposes.' The contracts that we have now in effect number 14. I should say that we have awarded No. 14 and we have in effect 13, since 1 has been completed. Mr. EDMONDSON. I have the summary which you supplied to Congressman Saylor and also to Congressman Aspinall on February 4, 1963, which divides these contracts into five different categories. (a) Projects under contract completely funded. (b) Projects under contract requiring additional funding. (c) Projects expected to be awarded. (d) Contracts during the remainder fiscal year 1963. (e) Contracts likely to be awarded in fiscal year 1964. I note with regard to that there is a notation that the figures shown on contracts in group (c) and (d) should be held as confidential. Is that the situation? Mr. LAMB. That is correct, sir. Mr. EDMONDSON. Do you see any reason why those contracts listed under (a) and (b) should not be made a part of the record at this point with the details which you supplied? Mr. LAMB. That is correct, and I have a list of contracts now in effect which might be easier to follow. Mr. EDMONDSON. Perhaps that would be the thing we would like to put in the record at this point. If there is no objection, this list supplied by Mr. Lamb will be made a part of the record at this point. (The document follows:) Contracts awarded by the Office of Coal Research Estimated total cost Date of award Contractor Booz. Allen & Hamilton, Inc., Chicago, Ill. Bituminous Coal Research, Inc., Monroeville, Pa. Pope, Evans & Robbins, New York, N.Y. General Electric Co., Schenectady, N.Y. Virginia Polytechnic Institute, Blacksburg, Va. Georgia Tech Research Institute. Atlanta, Ga. FMC Corp. (formerly Food Machinery & Chemical Corp.) Princeton, N.J. The Ralph M. Parsons Co., Los Angeles, Calif. Board of Governors of West Virginia University, Morgantown, W. Va. 1,240,000 Spencer Chemical Co., Kansas City, Mo. University of Utah, Salt Lake City, Utah. Purpose To identify new products, which are economically and technically marketable, that would expand present coal markets and generate new ones. The study has been completed. To study the preparation, transportation and utlization of superfine pulverized coal. Specific objectives are (1) to develop systems for preparing pulverized coal with the removal of sulfur and ash content, (2) to devise continuous transportation systems from mine to factory, and (3) to design and operate boilers to burn superfine coal in continuous sequence with transportation systems. To design and develop a new, completely integrated. coal-fired industrial heating plant of intermediatesize range requiring minimum attendance and space, and with initial and operating costs considerably more favorable than existing coal-fired equipment. To study the conversion of coal to gas liquid fuels and chemicals using electrical corona as the catalyst. To develop scientific engineering methods and formulas for determining the most favorable combination of various elements in underground mining which can be controlled by the mine operator to insure lowest cost production under the physical conditions existing in his coal-producing sections or face areas. To study the reactions which occur between pulverized coal and various gases at high temperatures, and to identify the products or compounds formed. To determine the possibility of deriving from coal a synthetic crude oil of a kind that, mixed with the residue (char), can be transported by pipeline. To analyze the engineering and economic feasibility of a process owned by the Consolidation Coal Co.. Pittsburgh, Pa., to convert coal into gasoline and to act as design consultants to OCR during pilot plant construction, operation and evaluation. To determine and evaluate the economics of processing marginal byproduct materials closely associated with mineable coal. To produce low-ash and low-sulfur coal through solvation techniques. Bench-scale testing of the response of powdered coal in an electric are, by flash photolysis, and in other reactions, toward recommending a final process for converting western coals into gaseous and liquid fuels. To determine the yield and composition of liquid and gaseous products from bituminous coals. To study the coal export potential, identify the impediments to the full achievement of that potential, and recommend actions by Government and industry for expanding coal exports. To develop a fuel cell burning pulverized coal, a gas derived from coal, or a combination. End result will be construction and operation of a 100-kilowatt prototype cell system operated in conjunction with a connected direct current load to provide engineering data required for the design of a commercial plant. 1 Cosponsored: Office of Coal Research, $150,000; State of Utah, $102,397. Mr. EDMONDSON. There is quite a difference in your estimated total cost of contracts on the material which had been supplied on February 4 and the estimated cost on the material which you just supplied to us. Mr. LAMB. I can explain that, Mr. Chairman. Some of the contracts shown on the list, the one-page list also have provisions or understandings for extension providing the preliminary work is successful. For example, the contract work is phased so that we can check periodically to see what success has taken place. If there is no success, we drop the contract. If there is success, we continue on through and several of these contracts provide for an extension into pilot plant activity depending upon the progress made in the early phases. Mr. EDMONDSON. The estimated total cost on the printed material you have just supplied is a firm and determined price? Mr. LAMB. Yes, sir. Mr. EDMONDSON. The estimated total cost of contract on the typewritten material supplied February 4 is an estimate of the contingent cost as well as the firm cost? Mr. LAMB. That is correct. Mr. EDMONDSON. The total estimated cost on your typewritten material reads as $47,344,785. Mr. LAMB. That includes not only the contracts in effect, but those being processed. It includes the complete followthrough of the contracts now in effect plus about eight contracts or proposals under consideration for contract, but where we do not have contracts yet. Mr. EDMONDSON. Do you have the figure for the overall total of your present firm commitments in any contract? Mr. LAMB. The total on this page, sir? Mr. EDMONDSON. Yes. Mr. LAMB. This would be in round figures $6 million. Mr. EDMONDSON. Could you tell us a little bit about some of these more interesting contracts? For example, your General Electric Corp. contract negotiated March 29, 1962, a 30 months contract. It has a $750,000 cost to study the conversion of coal to gas liquid fuels and chemicals using electrical corona as the catalyst. Mr. LAMB. That is correct. Mr. EDMONDSON. Is this principally a laboratory thing? Mr. LAMB. This starts out on a laboratory basis, a bench scale basis, and the success of the bench scale operations will lead to a pilot plant operation. The amount of money shown on the sheet here is to carry it up to the pilot plant stage. This is a new process using electrical discharges combined with hydrogen to provide gases, chemicals, and liquid fuels. It is a special electrochemical application. Mr. EDMONDSON. Could you tell us a little bit about this Spencer Chemical Co.'s contract negotiated August 22, 1962, at a total cost of $1,240,000 on your printed material to produce low-ash and lowsulfur coal through solvation techniques? Mr. LAMB. Coal contains a number of impurities such as sulfur and ash. Some of these cause difficulties under combustion conditions, they lead to air pollution, they damage burning equipment, and so forth. |