[MMS Authority to Set Interest Rates and Compounding Periods]
B-249350: Mar 3, 1993
- Full Report:
The Minerals Management Service (MMS) requested a decision on what interest rates and compounding periods it could use for compensating Outer Continental Shelf natural gas and oil lessees for cancelled leases. GAO held that: (1) in accordance with the Outer Continental Shelf Lands Act, MMS could establish any interest rate that was not arbitrary or inconsistent with the statute; and (2) MMS should adopt the lowest reasonable interest rate.