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Agencies within the Department of the Interior use 3 data systems to oversee oil and gas development on leased federal lands. The data systems process permits for drilling wells, among other things.
The systems are aging and create oversight challenges for the department.
Federal onshore oil and gas leases generate about $3 billion a year in federal revenues. Leases are sold in competitive auctions. If there aren't adequate bids in an auction, leases can be sold noncompetitively.
The Interior Department's Bureau of Land Management oversees energy production on federal lands and collects royalties to help ensure a fair return for taxpayers.
Oil and gas producers faced a sharp drop in demand during the COVID-19 pandemic.