Energy Management: States' Use and DOE Oversight of Exxon and Stripper Well Overcharge Funds
RCED-88-152
Published: Jun 14, 1988. Publicly Released: Jul 18, 1988.
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Highlights
In response to a congressional request, GAO evaluated states' use of over $3 billion from certain oil overcharge cases to determine whether: (1) states' use of the funds, including interest, met legislative and judicial requirements; and (2) the Department of Energy's (DOE) plans for monitoring states' use of the funds also met the requirements.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Energy | The Secretary of Energy should direct the Assistant Secretary for Conservation and Renewable Energy to: (1) formulate, for stripper well funds used for nongrant projects, monitoring procedures that comply with the Petroleum Overcharge Distribution and Restitution Act of 1986 requirement that all stripper well funds distributed to states be monitored in a manner substantially similar to the distribution of funds under the Warner Amendment; and (2) ensure that DOE field offices develop and implement monitoring procedures that adequately detect states' improper use of interest earned on Exxon and stripper well funds and states' use of Exxon and stripper well funds to supplant state funds. |
DOE believed its existing procedures are adequate and, accordingly, plans to take no action to implement the recommendation.
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Topics
Damages (legal)state relationsFunds managementMonitoringNoncomplianceOverpaymentsPetroleum industryPrice regulationRestitutionState-administered programs