Implementation of the Federal Onshore Oil and Gas Leasing Reform Act of 1987

GAO discussed the Bureau of Land Management's (BLM) and the Forest Service's implementation of legislation concerning those agencies' administration of oil and gas leases on public lands. GAO noted that: (1) although both BLM and the Service determined that they needed to study potential environmental impacts and satisfy all environmental requirements before issuing oil and gas leases or approving drilling permits, 75 of 82 land-use plans, which the agencies heavily relied on in making such determinations, did not adequately identify or address essential potential environmental impacts; (2) both agencies have begun work to improve the information they use in making lease decisions, but are also continuing to approve drilling permits before they obtain the necessary information; (3) the Service's January 1989 proposed regulations for implementing its legislatively required responsibilities did not clearly address bonding requirements, introduced lease development uncertainties, and improperly separated oil and gas leasing decisions from the normal land-use plans and environmental studies process; (4) BLM implementation of its responsibilities resulted in a substantial increase in the percentage of competitively leased land and per-acre revenues; and (5) BLM retained a lease-sale procedure which could reduce competition and revenues.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: James Duffus Iii Team: General Accounting Office: Resources, Community, and Economic Development Division Phone: (202) 512-7756