Mineral Revenues

Opportunities To Increase Onshore Oil and Gas Minimum Royalty Revenues Gao ID: RCED-86-110 June 24, 1986

GAO reviewed the Department of the Interior's administration of federal oil and gas leases to determine: (1) whether Interior has collected all minimum royalties due the government; and (2) if the current minimum rate is still appropriate.

GAO noted that the Bureau of Land Management maintains the official records on lease status and acreages subject to rents or royalties, and the Minerals Management Service (MMS) collects and disburses lease revenues to recipients. GAO found that: (1) although oil and gas rental rates have increased during the past 40 years, the minimum royalty rate of $1 per acre has not; and (2) in fiscal year 1985, MMS did not collect $1.7 million because it received no royalties from approximately 1.4 million acres.

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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