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Mrs. MORELLA. I'm pleased to recognize Lewis Walker, former Deputy Assistant Secretary of the Army for Environmental Safety and Occupational Health. Mr. Walker.

Mr. WALKER. Yes, Madam Chairwoman and Congresswoman Norton, I am Lewis D. Walker, and I was the former Deputy Assistant Secretary of the Army for Environment, Safety and Occupational Health. I retired from the Federal Government in June 1995 first on medical leave and then formal retirement on January 1, 1996. I was in the position from April 20, 1980, to the time of my retirement.

With regard to the Spring Valley area, it was one of my restoration responsibilities that the Army addressed during my tenure.

In 1986, Army assisted the American University with its construction program by having Army emergency disposal units survey the constructionsites. With nothing found at the sites down to considerable depth, the construction projects were completed successfully. Army then conducted a review of the area on the possibility of unexploded ordnance in the area and found no information that would require further study.

Later, in 1993, World War I munitions were discovered in the Spring Valley area. The Army removed the munitions and initiated a restoration program for the 600-acre area. Over $20 million were spent on this project by the time I retired in 1995.

Madam Chairwoman, this concludes my brief statement. I will be glad to respond to the questions to the extent that I can remember the details, and thank you for inviting me to testify today.

Mrs. MORELLA. Thank you, Mr. Walker.

[The prepared statement of Mr. Walker follows:]

Statement

by

Lewis D. Walker

Before the Committee on Government Reform
United States House of Representatives

July 27, 2001

Madam Chairwoman:

I am Lewis D. Walker, former Deputy Assistant Secretary of the Army (Environment, Safety and Occupational Health). I retired from the Federal Government in June 1995, first on medical leave and then formal retirement on January 1, 1996.

I was in that position from April 20, 1980 to the time of my retirement. With regard to the Spring Valley area it was one of many restoration projects that the Army addressed during my tenure.

In 1986, Army assisted the American University with its construction program by having Army emergency ordnance disposal (EOD) units survey the construction sites. With nothing found at the sites down to a considerable depth, the construction projects were completed successfully. Army then conducted a review of the area on the possibility of unexploded ordnance in the area and found no information that would require further study.

Later in 1993, World War I munitions were discovered in Spring Valley. The Army removed the munitions and initiated a restoration program for the 600-acre area. Over $20 million were spent on this project by the time I retired in 1995.

Madam Chairwoman, that concludes my brief statement. I will be glad to respond to questions to the extent that I can remember the details.

Mrs. MORELLA. Now I recognize Francis Reardon, Auditor General of the Army, the U.S. Army Audit Agency. Mr. Reardon.

Mr. REARDON. Thank you, Chairman Morella, Congresswoman Norton. I am Francis Reardon, the Army's Auditor General. With me is Stephen Kiefer, the Agency's Deputy Auditor General for Installation Management Audits and the senior agency official who worked on our 1995 effort concerning Spring Valley.

The Agency's efforts in regard to Spring Valley operations are limited to a 1995 review performed at the request of the U.S. Army Claims Service. The Claims Service asked for audit assistance in assessing the validity of a 1995 claim brought against the Army by the Miller Co. for about $15 million in damages, losses and expenses the developer said it suffered as a result of the Army's alleged negligence in burying chemical weapons. The Agency began its review on April 17, 1995, by meeting with the onsite project manager for the U.S. Army Corps of Engineers Baltimore District and reviewing available data, such as the results of prior surveys and research efforts by the Army and other government agencies, claims and correspondence provided by the Miller Co., relevant and appropriate laws and regulations applicable at the time of experimentation operations and in 1986.

During the process of this review, audit staff members held an entrance conference on June 6, 1995, with Corps of Engineers headquarters personnel.

We have noted the recent press accounts concerning Army audits have apparently mistaken the June 6, 1995, briefing charts and the interim results reflected therein as a report. This was not the case. Rather, the charts simply reflect the auditor's review at that stage of the ongoing review. It should be recognized that additional work occurred after the entrance briefing with the Corps of Engineers headquarters personnel. After the additional work, which included review of documents, applicable laws, and military regulations, conversation with subject matter experts, and a legal review by the Agency's chief counsel, we reached our final conclusions.

On July 27, 1995, the Agency issued Report 95-774 addressing the claim by the Spring Valley real estate developer. The Agency concluded that the Army had no legal or regulatory requirement to formally notify local authorities or third parties in 1986 because Army researchers were unable to conclusively determine that chemical weapons had ever been buried at Spring Valley. The Army fulfilled its responsibilities during World War I by storing and disposing of chemical weapons in accordance with laws and regulations applicable at the time. The real estate developer should have known about the presence of the experiment station and the possibility that dangerous materials existed, and at least $11 million of the real estate developer's $15 million claim was without merit, and due to a lack of documentation from the Miller Co., the remaining $4 million could not be evaluated.

Mr. Kiefer and I appreciate the opportunity to testify and provide the Army audit agency results concerning Spring Valley. That concludes my statement, Madam Chairwoman.

Mrs. MORELLA. Thank you, Mr. Reardon.

[The prepared statement of Mr. Reardon follows:]

NOT FOR PUBLICATION UNTIL

RELEASED BY THE SUBCOMMITTEE

Statement for

Mr. Francis E. Reardon

Auditor General of the Army

Before the

Subcommittee on the District of Columbia

Committee on Government Reform

July 27, 2001

NOT FOR PUBLICATION UNTIL ---RELEASED BY THE SUBCOMMITTEE

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