GHG Daily
1/11/2016
Schlumberger Carbon Services, as a subrecipient of the Midwest Geological Sequestration Consortium, may have been allowed to claim more than $5 million in unsupported or questionable costs from the Department of Energy, according to a Dec. 18, 2015, report by the DOE Office of Inspector General.
An IG audit revealed that inadequate information was submitted for $3.8 million in reimbursed costs, such as a $330,000 invoice with a description indicating only total amounts for “Job Charges.” The audit also revealed several unallowable or potentially unallowable reimbursed expenses, such as roughly $230 for alcohol and more than $4,500 for business meals where a listing of participants had not been provided.
The Midwest Geological Sequestration Consortium, managed through a cooperative agreement with the University of Illinois, is one of seven partnerships formed under the DOE Office of Fossil Energy’s Regional Carbon Sequestration Partnership Initiative. The initiative was established to develop CO2 storage technology and infrastructure and to inform regulations necessary for the large scale implementation of CO2 storage activities.
The IG’s office recommended that any questionable costs be resolved and any found unallowable be addressed. The office also recommends that a review be conducted of any Office of Fossil Energy projects in which Schlumberger is a participant.
