[Disposition of Forfeited Bonus Bids Received at Competitive Mineral Lease Sales]

The Bureau of Land Management (BLM) requested a decision on the disposition of forfeited bonus bid receipts it holds as deposits against the completion of certain competitive mineral leases, specifically whether it should distribute them in the same way as other lease proceeds or deposit them as miscellaneous receipts in the Treasury General Fund. GAO noted that: (1) BLM receives one-fifth of the bonus bid from the winning bidder as a deposit pending completion of the lease; and (2) if a bidder does not execute a lease or complete payment within the required time period, it forfeits the deposit to BLM. GAO found that the deposits were proceeds from the sale or lease of public land. Accordingly, the one-fifth bonus forfeited to the United States upon failure to execute a lease should be distributed in the same manner as lease proceeds otherwise subject to section 35 of the Mineral Lands Leasing Act.