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RED-76-70 1 (1976-02-05)

handle is hein.gao/gaobaaboj0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE ., - . o / ~~WASHIE'.GTON. D.C. 20548 wi) RESOURCES AND ECONOJC February 5, 1976 DEVELOPMENT DIVISION B-118678 The Honorable The Secretary of the Interior 3 Dear Mr. Secretary: During our review of the appropriateness of and compliance with acreaqe limitations on several minerals for the Chairoerson of the Mines and Mininiq Subcommittee, 1£ t House Committee on Interior and Insular Aftairs, we noted - a matter which we believe warrants your immediate attention. The Bureau of Land management did not apply the re- gulatory requirements calling for minimurr, royalty pay- ments on ,otas> ajd sodium leases based on minimum production. Iniste ad, we found that minimum royalties were limited to rent:: rates, which were much less than rovilties based on minimum production levels. rhe minimum royalty for another mineral (ohos:nhate) included in our review was also based on the rental rate. As you are aware, thousands of acres of land have been held under mineral leases for more than 10 years without develooment and thousands of additional acres are involved in pending leases which will be evaluated by the Bureau this year. Therefore, your prompt action could (1) helzd to encouraqe the develooment of the land leased, (2) add considerable income for the Federal Government, and (3) discourage the leasing of lands that would not be develop.ed immed iately. STATUTORY AND REGULATORY PROVISIONS The Mineral Lands Leasing Act (30 U.S.C. 212 and 283) concerning minimum royalties on phosphate and potash leases states: Leases shall be conditioned uoon a minimum annual production or the payment of a minimum royalty in lieu thereof, except when production RED-76-70 1097i

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