Mineral Resources

Timely Processing Can Increase Rent Revenue From Certain Oil/Gas Leases Gao ID: RCED-87-98 June 18, 1987

GAO reviewed Bureau of Land Management (BLM) procedures in Colorado and Wyoming to determine whether BLM increased rental rates in a timely manner for leases overlying known geologic structures (KGS).

GAO noted that, as of September 1986, BLM increased rents on 8.5 percent of Colorado's and Wyoming's federal oil and gas leases because BLM determined that they were overlying KGS. GAO found that the Colorado and Wyoming BLM offices: (1) did not make timely increases in 1984 and 1985, resulting in lost revenue of $552,614; and (2) did not increase rental rates for all leases determined to overlie KGS, causing an additional revenue loss of at least $15,123. GAO also found that BLM had inadequate internal controls to ensure that: (1) it informed state offices of all KGS determinations; (2) state offices increased rental rates once they were informed; and (3) state offices processed rental rates in a timely manner.

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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