GAO: Department of Interior Isn't Doing Enough to Promote 'Diligent Development' of Federal Oil and Gas Leases; Recommends a 'Broader Reexamination' of Lease Policies

摘要

After reviewing the Department of Interior's (DOI's or Interior's) efforts to encourage development of federal oil and gas leases, the Government Accountability Office (GAO) found DOI isn't doing enough to promote development and production. Although DOI policies do require "reasonable diligence" in developing leases and includes an escalating rental rate policy on some leases, GAO said that DOI needs to precisely define what activities or timeframes constitute reasonable diligence. Importantly, DOI's leases need to explicitly link the expected likelihood of oil and gas production to the leases.