Minerals Management Service Royalty in Kind Program. Report to Congress. Fiscal Year 2008. Energy Policy Act of 2005-Section 342

摘要

The Fiscal Year (FY) 2008 Report to Congress fulfills the annual requirement under section 342 (e)(2) of the Energy Policy Act of 2005 that the Secretary of the Interior submit to Congress a report that describes the performance, benefits, and savings associated with the Minerals Management Service (MMS) Royalty in Kind (RIK) Program. This report also serves as the annual update for other program stakeholders, detailing the history, current status, operational condition, and the successes of MMS RIK Program over the past year and longer-term. Through the RIK Program, MMS takes royalties on crude oil and natural gas production in amount, or 'in kind,' from the Federal lessee rather than via a cash payment, or 'in value,' method. MMS then sells that crude oil or natural gas production competitively on the open market. Through the competitive sales process, the RIK Program can increase the return on the American taxpayers' crude oil and natural gas royalty assets. The RIK Program accomplishes this by: Improving government efficiencies; Reducing administrative costs; Providing a fair market return on the royalty assets of the American taxpayers, typically reflected in increased revenues over the in-value method.