Mineral Revenues:

Interior's Control Over Oil and Gas Allowances

RCED-87-207BR: Published: Sep 17, 1987. Publicly Released: Oct 19, 1987.

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Pursuant to a congressional request, GAO provided information on the Department of the Interior's Mineral Management Service's (MMS) controls over processing and transportation allowances for oil and gas leases on federal lands.

GAO found that MMS: (1) does not effectively control allowances, since it uses a prior approval method for expected claims; (2) relies on its audits to detect excessive allowances, but gives them low priority; (3) proposed new product valuation regulations with more specific criteria for calculating, approving, and reporting allowances; and (4) is considering implementing computerized monitoring to identify claimed allowances that warrant further review or audit.

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