Interior's Report of Shut-In or Flaring Wells Unnecessary, but Oversight Should Continue
Highlights
The Department of the Interior has the primary responsibility for the leasing, administration, and management of Outer Continental Shelf (OCS) resources. Through the Geological Survey, Interior regulates operational OCS activities to ensure prompt and efficient development and production of mineral resources, while preventing waste and conserving natural resources. The Outer Continental Shelf Lands Act Amendments address the need for increased oversight of OCS wells that are shut-in or are flaring natural gas and require the Secretary of the Interior to submit to Congress a report which (1) lists all shut-in oil and gas wells and wells flaring natural gas on leases issued under the Act, and (2) indicates the Secretary's intentions on whether to require production of shut-ins or order the cessation of flaring. Under the Amendments, GAO is required to review, evaluate, and report to Congress on the methodology that the Secretary of the Interior uses in allowing OCS wells to be shut-in or to flare natural gas. In its review, GAO used Interior's second annual report and focused primarily on meeting its legislative requirements.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of the Interior | The Secretary of the Interior should seek legislative relief from Congress on section 601(a) of the Outer Continental Shelf Lands Act of 1978. |
Closed
Please call 202/512-6100 for additional information.
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| Department of the Interior | The Secretary of the Interior should seek legislative relief form Congress on section 601(a) of the Outer Continental Shelf Lands Act of 1978. |
Closed
Please call 202/512-6100 for additional information.
|
| Department of the Interior | The Secretary of the Interior should direct the Geological Survey to include in future reports (1) a listing of all wells identifying each well completion and the status of the well completions; (2) a statement by the Department concerning the most common causes for a well being shut-in, the basis for the information contained in the report, and the procedures used to verify OCS operator reported information; (3) summary information analyzing the appendices included in the report; and (4) definitions of all technical terminology used in the report. |
Closed
Please call 202/512-6100 for additional information.
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| Department of the Interior | The Secretary of the Interior should direct the Geological Survey to (1) selectively review supporting data used by OCS operators so as to assess the reasonableness and validity of such data; (2) obtain justification from operators that appear to continually or unreasonably extend planned restoration dates; (3) require operators desiring approval of long-term gas flaring to submit all of the information required by Survey orders as necessary for deciding whether to grant such approval; (4) establish a more systematic and documented approach to monitoring long-term approvals for compliance with approval conditions; (5) followup on operators suspected of excessive flaring to ensure that such flaring ceases; and (6) continue to followup on "no future utility" wells and, when appropriate, require plugging and abandonment of such wells as soon as circumstances allow. |
Closed
Please call 202/512-6100 for additional information.
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