Oil and Gas Resources: Interior's Production Verigication Efforts and Royalty Data Have Improved, but Further Actions Needed, Report to Congressional Requesters [open pdf - 968KB]
From the Document: "Production of oil and natural gas from leased federal lands and waters is a significant source of revenue for the federal government--accounting for almost $48 billion for fiscal years 2009 through 2013. GAO [Government Accountability Office] has issued many reports on Interior's management of federal oil and gas resources, including its programs for verifying oil and gas production volumes and ensuring accurate royalty collections. These reports raised questions about whether the government was collecting all the revenue it was due and included 36 recommendations to strengthen royalty collection, among other things. In 2011, GAO added Interior's management of federal oil and gas resources to its list of programs at high risk of fraud, waste, abuse, and mismanagement. GAO was asked to review Interior's efforts to improve verification of oil and gas produced from federal leases and the accuracy of royalty data. This report examines efforts Interior has taken since fiscal year 2009 and the reasonableness and completeness of Interior's royalty data. GAO reviewed relevant laws, regulations, and guidance; analyzed Interior data for fiscal years 2009 through 2013; and interviewed Interior officials. GAO recommends that Interior meet its established time frames for updating its onshore measurement regulations, reconvene its gas and oil measurement team, and schedule and complete the review of the implementation of its commingling agreement guidance, among other things. Interior generally concurred with GAO's recommendations."
Government Accountability Office: http://www.gao.gov/