Congress Should Extend Mandate To Experiment With Alternative Bidding Systems in Leasing Offshore Lands
RCED-83-139
Published: May 27, 1983. Publicly Released: Jul 05, 1983.
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Highlights
In response to a congressional request, GAO reviewed the Department of the Interior's use of alternative bidding systems to lease offshore lands for oil and gas development as mandated in the Outer Continental Shelf (OCS) Lands Act Amendments of 1978. Specifically, the report discusses Interior's record in implementing the alternative systems and their impact on company participation and competition in lease sales, government revenues, diligent lease exploration and production, and administrative costs to the government.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| Congress should amend section 8(a) 5(B) of the Outer Continental Shelf Lands Act, as amended, to provide for continued use of alternatives to the cash bonus bid, fixed-royalty bidding system in leasing offshore lands for another 5-year period. |
Closed – Not Implemented
|
At this time, there is no interest in Congress to provide for continued use of alternative bidding systems. |
| Congress should delete the requirement that the Secretary of Energy submit an annual report to Congress on the use of alternative bidding systems and transfer the requirement to the Secretary of the Interior. |
Closed – Not Implemented
|
This amendment was overshadowed by other, more pressing legislation, and no future action is anticipated. There is no current interest in Congress to delete the Secretary of Energy's annual reporting requirements on the use of alternative bidding systems. |
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of the Interior | The Secretary of the Interior should comply with the existing reporting requirements of section 15(2) of the Outer Continental Shelf Lands Act, as amended, to provide Congress adequate and timely information on the impacts of using the alternative bidding systems. |
Closed – Not Implemented
The legislative requirement for Interior's report has expired.
|
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Topics
Administrative costsCompetitionCongressional oversightEnergy lawEnergy suppliesOffshore oil resourcesOil leasesProcurement practicesReporting requirementsExploration