Possible Effects of Increased Royalty Rate for Federal Onshore Oil and Gas Leases

Pursuant to a congressional request, GAO reviewed the royalty rates for oil and gas produced from Federal and Indian lands. As part of the review, GAO was asked to provide the following information: (1) the basis for a recommendation by the Commission on Fiscal Accountability for the Nation's Energy Resources that oil and gas royalty rates be increased, (2) the estimated revenue increase that would result from a higher royalty rate, and (3) an analysis of the reasonableness of royalty rates currently applied to Federal and Indian lands.