Mineral Revenues

Delays in Processing and Disbursing Onshore Oil and Gas Bid Revenues Gao ID: RCED-86-69 March 24, 1986

GAO reviewed the Department of the Interior's procedures for: (1) depositing and processing bid revenues from offshore and onshore competitive oil and gas lease sales; and (2) disbursing onshore bid revenues to the states.

GAO found that Interior's procedures and guidelines for depositing and processing offshore bid revenues were adequate, but the procedures for depositing, processing, and disbursing onshore bid revenues could be more timely. More timely receipt and deposit of onshore bid revenues, in compliance with Department of the Treasury and Interior instructions, would make these funds available to the federal government sooner, thereby decreasing the need for the Treasury to borrow money and incur interest. Interior could also save the Treasury interest costs by streamlining its procedures for notifying winning bidders of bid acceptance and for requiring final bid payment from onshore bidders. GAO estimated that timely deposits of these funds and streamlined procedures could have saved the Treasury about $152,000 for the 55 parcels it reviewed. GAO also found that Interior's procedures for disbursing states' shares of onshore bid revenues could be more timely. Timely deposit and payment of onshore bid revenues to the states could become more important because Congress is considering actions to increase acreage offered for competitive leasing.

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.

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