Evaluation of Interior's Comments on GAO Report on Alternative Bidding Systems for Leasing Offshore Lands

GAO reviewed the Department of the Interior's response to a GAO report that discussed Interior's record in implementing alternative bidding systems in leasing offshore lands.

GAO noted that Interior disagreed with a GAO recommendation that Congress require another 5-year test period for alternative bidding systems. Interior believes that the initial test period was adequate and that further testing is unnecessary because it will continue to consider and apply alternative bidding systems in future offshore oil lease sales. GAO believes that there is a need for further testing because Interior has tested only those bidding systems which the law requires it to test and has not experimented with systems that do not use a cash bonus as the bid variable. Interior did not comment on a GAO recommendation that certain reporting requirements be transferred from the Department of Energy to Interior.