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Mineral Revenues: Shortcomings in Onshore Federal Oil and Gas Production Verification

RCED-90-99 Published: Jun 26, 1990. Publicly Released: Jul 26, 1990.
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Highlights

Pursuant to a congressional request, GAO evaluated the Department of the Interior's inspection and enforcement program responsibility for onshore federal and Indian oil and gas lease production verification.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of the Interior Because BLM does not ensure accurate reporting of production, the Secretary of the Interior should require the Director, BLM, to determine whether, using available resources, alternative inspection strategies would better identify significant underreporting of production. Such a determination should explore using production verification inspections on randomly selected leases. If Interior determines that such probability sampling would be more efficient than inspecting all high-priority leases annually, as required by the Federal Oil Gas Royalty Management Act of 1982 (FOGRMA), Interior should ask Congress to amend FOGRMA accordingly.
Closed – Implemented
BLM adopted a revised inspection strategy for the purpose of increasing the frequency, coverage, and depth of its inspections.
Department of the Interior To ensure that the BLM inspection and enforcement program is consistently implemented, the Secretary of the Interior should require the Director, BLM, to strengthen program oversight by developing standard guidelines for state offices' program reviews and conduct such reviews annually.
Closed – Implemented
BLM announced plans to increase inspection program oversight through comprehensive program evaluations.
Department of the Interior To ensure that the BLM inspection and enforcement program is consistently implemented, the Secretary of the Interior should require the Director, BLM, to strengthen program oversight by establishing minimum standards for supervisory responsibilities, expectations, review, and documentation.
Closed – Implemented
BLM announced plans to develop a training course for inspection program managers.
Department of the Interior To ensure that the BLM inspection and enforcement program is consistently implemented, the Secretary of the Interior should require the Director, BLM, to strengthen program oversight by evaluating current program staffing and develop staffing standards.
Closed – Implemented
The BLM revised inspection strategy takes into account existing resources and, for fiscal year 1991, has requested 12 additional FTE to provide 1,000 additional on-site inspections.
Department of the Interior The Secretary of the Interior should require the Director, BLM, to develop and issue guidance providing minimum Automated Inspection Record System (AIRS) requirements and procedures, including procedures to open and close inspection records and to verify the accuracy of data entered into AIRS.
Closed – Implemented
BLM issued guidance aimed at improving AIRS data accuracy.
Department of the Interior The Secretary of the Interior should require the Director, BLM, to monitor field office compliance with the minimum requirements and procedures to ensure consistent implementation.
Closed – Implemented
BLM issued guidance on AIRS procedures that, if implemented, will ensure greater consistency. BLM also established an AIRS user group to help facilitate greater consistency.
Department of the Interior The Secretary of the Interior should require the Director, BLM, to reconsider adding edits to AIRS to further ensure the accuracy of AIRS data.
Closed – Implemented
BLM issued guidance aimed at improving AIRS data accuracy.
Department of the Interior The Secretary of the Interior should require the Director, BLM, to make all enforcement actions involving federal or Indian leases a part of compliance histories recorded in AIRS.
Closed – Implemented
BLM initiated coordination activities internally between the inspector program and the law enforcement program, and externally with MMS. Such action should result in greater recognition of enforcement actions in the inspection program. However, no directive was issued to specifically implement the recommendation.
Department of the Interior The Secretary of the Interior should require the Directors, BLM and Minerals Management Service (MMS), to jointly evaluate whether the current memorandum of understanding adequately addresses BLM concerns regarding timeliness and law enforcement.
Closed – Implemented
BLM and MMS jointly reviewed the memorandum of understanding.

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Topics

Data collectionDecentralizationGas leasesIndian landsInformation systemsInspectionInteragency relationsOil leasesPublic landsRoyalty payments