Mineral Resources: Timely Processing Can Increase Rent Revenue from Certain Oil/Gas Leases

摘要

Federal regulations require that onshore oil and gas leases that are subsequently determined to overlie a known geologic structure (KGS) are to have their rental rates increased. As part of an ongoing effort to evaluate the adequacy of the Department of the Interior's mineral-related revenue collections, GAO reviewed the Bureau of Land Management's (BLM) procedures in two states to determine whether rental rates are increased in a timely manner for leases determined to overlie KGSs. In summary, BLM does not have internal controls that ensure that such rental increases are processed consistently and in a timely manner. Although BLM's state offices in Colorado and Wyoming generally increased rental rates for leases determined to overlie KGSs, these increases were not made in a timely manner during calendar years 1984 and 1985. These resulted in lost revenue of $552,614. In addition, investigators found a few instances in the two states in which the rental rates had not been increased at all, causing an additional revenue loss of at least $15,123.