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Production of oil and natural gas from leased federal lands and
waters is a significant source of revenue for the federal
government. The Government Accountability Office (GAO) 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. This book examines efforts Interior has
taken since fiscal year 2009 and the reasonableness and
completeness of Interior's royalty data. The book also assesses the
extent to which Interior's production verification regulations and
policies provide reasonable assurance that oil and gas are
accurately measured; the extent to which Interior's offshore and
onshore production accountability inspection programs consistently
set and meet program goals and address key factors affecting
measurement accuracy; and Interior's management of its production
verification programs. Finally, it provides a descriptive update on
Interior's Minerals Management Service's (MMS) key efforts to
improve the accuracy of oil and gas royalty data; the assessment of
the completeness and reasonableness of fiscal years 2006 and 2007
oil and gas royalty datathe latest data available; and factors
identified by oil and gas companies that affect their ability to
accurately report royalties owed to the federal government.
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