ABSTRACT

Oil and Gas: Onshore Competitive and Noncompetitive Lease Revenues, Report to Congressional Requesters   [open pdf - 1MB]

From the Highlights: "According to BLM [Bureau of Land Management], federal onshore oil and gas leases generate about $3 billion annually in federal revenues, including royalties, one-time bonus bid payments, and rents. The Federal Onshore Oil and Gas Leasing Reform Act of 1987 requires that public lands available for oil and gas leasing first be offered under a competitive bidding process. BLM offers leases with 10- year primary terms competitively through auction or, if the tract of land does not receive an adequate bid, noncompetitively for a fee. The minimum bid is $2 per acre, and bids at or above the minimum are called bonus bids. ONRR [Office of Natural Resources Revenue] is to collect revenues from oil and gas leases in accordance with the specific terms and conditions outlined in the leases, including revenues from rents and royalties. Lessees are to pay rent annually until production begins on the leased land and then pay royalties as a percentage of oil and gas production. Lease terms may be extended beyond the primary term if, for example, the lease is producing oil or gas. GAO [Government Accountability Office] was asked to review oil and gas leasing on federal lands. This report describes oil and gas revenues from competitive and noncompetitive leases for fiscal years 2003 through 2019."

Report Number:
GAO-21-138
Publisher:
Date:
2020-11
Copyright:
Public Domain
Retrieved From:
Government Accountability Office: http://www.gao.gov/
Format:
pdf
Media Type:
application/pdf
URL:
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