Oil and Gas Royalty Accounting--Improvements Have Been Initiated but Continued Emphasis Is Needed To Ensure Success
AFMD-82-55
Published: Apr 27, 1982. Publicly Released: May 05, 1982.
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Highlights
GAO was requested to evaluate the development of the new royalty system and to determine the extent to which it will improve the collection of royalties due from Federal and Indian lands.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of the Interior | The Secretary of the Interior should, no later than September 30, 1982, develop cost estimates, broken down by fiscal year and function, for the new royalty management program. This information, which should be furnished to cognizant congressional committees, should include milestones for implementation of specific system improvements and, as a minimum, should detail cost of personnel, contractor services, and computer equipment for the: (1) design and implementation of the accounting, production, and enhanced management phases; (2) performance of audits; (3) lease inspection function; and (4) reconciliation of existing lease account records. |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
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Topics
Accounting systemsCollection proceduresCongressional oversightCost analysisIndian landsNatural gas pricesPetroleum pricesProgram managementPublic landsRoyalty payments