Oil and Gas Royalty Collections--Serious Financial Management Problems Need Congressional Attention

A significant portion of domestically produced oil and natural gas comes from Federal and Indian lands leased to the private sector. During 1977, the U.S. Geological Survey (USGS) collected about $1.2 billion in royalties on these lands from the oil and gas industry. Extensive congressional interest in government debt collection procedures prompted a review of the system and related controls used by the agency in collecting these royalties.