United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 2007-03-28 monographic deposited born digital 15 p. GA 1.13:GAO-07-682T https://www.govinfo.gov/app/details/GAOREPORTS-GAO-07-682T P0b002ee180386135 f:d07682t DGPO 2010-08-12 2011-03-24 GAOREPORTS-GAO-07-682T machine generated eng fdlp REPORT GAOREPORTS-GAO-07-682T GAO-07-682T Data integrity Electric energy Energy policy Financial analysis Gas leases Geothermal energy Internal controls Natural resources Oil leases Prices and pricing Program evaluation Program management Renewable energy sources Royalty payments MMS Royalty-in-Kind Program Testimony A67392 The Department of the Interior's Minerals Management Service (MMS) is charged with collecting and administering royalties paid by companies developing fossil and renewable energy resources on federal lands and within federal waters. To promote development of oil and natural gas, fossil resources vital to meeting the nation's energy needs, the federal government at times has provided "royalty relief" waiving or reducing the royalties that companies must pay. In these cases, relief is typically applicable only if prices remain below certain threshold levels. Oil and gas royalties can be taken at MMS's discretion either "in value" as cash or "in kind" as a share of the product itself. Additionally, MMS also collects royalties on the development of geothermal energy resources--a renewable source of heat and electricity--on federal lands. This statement provides (1) an update of our work regarding the fiscal impacts of royalty relief for leases issued under the Deep Water Royalty Relief Act of 1995; (2) a description of our recent work on the administration of the royalties in kind program, as well as ongoing work on related issues; and (3) information on the challenges to collecting geothermal royalties identified in our recent work. To address these issues we relied on recent GAO reports on oil, gas, and geothermal royalty collection systems. We are also reviewing key MMS estimates and data. https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-07-682T/html/GAOREPORTS-GAO-07-682T.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-07-682T/pdf/GAOREPORTS-GAO-07-682T.pdf GAO-07-682T https://www.govinfo.gov/app/details/GAOREPORTS-GAO-07-682T Testimony GAO-07-682T; Royalties Collection: Ongoing Problems with Interior's Efforts to Ensure A Fair Return for Taxpayers Require Attention; Data integrity Electric energy Energy policy Financial analysis Gas leases Geothermal energy Internal controls Natural resources Oil leases Prices and pricing Program evaluation Program management Renewable energy sources Royalty payments MMS Royalty-in-Kind Program