Royalty in Kind Feasibility Study, 1997

摘要

This document presents results of a feasibility study concerning whether the U.S. Government should take its oil and gas royalties from Federal leases in kind rather than in value. The Minerals Management Service (MMS) performed the study as part of MMS's continuing examination of potential improvements to the Nations mineral royalty management program. The study also responds to a congressional directive to consider royalty in kind (RIK) scenarios. Potential benefits of adopting RIK programs include: (1) eliminating contentious valuation disputes between producers and MMS$ (2) increasing the certainty of accurate royalty payments$ (3) decreasing administrative costs for both industry and MMS$ and (4) maximizing potentials to increase Federal revenues. The primary objective of the study is to determine if the implementation of an RIK program or programs for Federal oil and gas appears to be in the best interest of the United States, and, if so, under what circumstances.