About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

B-66927 1 (1971-12-27)

handle is hein.gao/gaobaafdm0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING 0 0WASHINGTON, D.C. 20548 DEFENSE DIVISION ( 9 B-66927 DEC 2 7 1971 LM095464 !3 Dear Mr. Sanders: As part of our examination into the conservation and management of natural resources by the Department of Defense (Code 86209), we have reviewed certain matters relating to revenues from the operation of Naval Petroleum Reserve No. 3 (Teapot Dome, Wyoming) and the admin- , istr&tion of the Naval Oil Shale Reserves in Colorado and Utah. We found that errors in the pricing of crude oil sales from Naval Petroleum Reserve No. 3 resulted in underpayments to the Navy of about $19,000. Further, some grazing fees collected from lessees operating on Naval Oil Shale Reserve lands that should have been deposited to the General Fund of the UV.tS.- Treasury had been commin- gled with funds used by the Bureau of Land Management, Department of the Interior. Actions have been or are being taken to correct these deficiencies. ERRORS IN PRICING CRUDE OIL SALES FROM NAVAL PETROLEUM RESERVE NO. 3 During the 24-month period ended December 31, 1970, revenue from the sale of crude oil was understated by about $19,000 because the con- tractor operator of Naval Petroleum Reserve No. 3 had not billed the purchaser in accordance with the pricing provisions of the sales con- tract. Contract NOd-9914, dated November 1, 1968, provides that the purchaser shall pay the base price in effect at the date the oil is delivered, less 5 cents per barrel. The prior sales contract included a provision for paying the base price less 10 cents per barrel. The term base price is defined as the average price per barrel of all prices regularly posted or published by principal purchasers of crude oil in Natrona County, Wyoming, for oil of equal gravity and quality. The operator had made erroneous billings which resulted in the following underpayments. I,-oz /// I 50TH ANNIVERSARY 1921-1971

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most