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EMD-80-47 1 (1980-05-05)

handle is hein.gao/gaobabanl0001 and id is 1 raw text is: 



BY THE COMPTROLLER GENERAL

Report To The Chairman, Committee

On Interior And Insular Affairs

House Of Representatives

OF THE UNITED STATES




Some Issues Affecting Southern California

Outer Continental Shelf

Oil And Gas Lease Sale 48


This report discusses the value and effect of
the Interior Department's Outer Continental
Shelf Environmental Studies Program on deci-
sions leading up to leasing 148 Outer Conti-
nental Shelf tracts in Southern California. It
also discusses the usefulness of resource re-
ports submitted by various Federal agencies in
defining the sale area. GAO's review indicated
that neither the Environmental Studies Pro-
gram nor the resource reports had a major im-
pact on Sale 48 decisions.

Industry high bids for the sale tracts were 20
times greater than Interior value estimates,
again creating concern as to Interior's ability
to evaluate Outer Continental Shelf lands.


An alternate bidding system--bonus bid with
a sliding scale royalty--was used for half the
tracts offered in Sale 48 to increase compe-
tition and small company participation in the
sale. The bidding results indicate that the slid-
ing scale alternative did not provide the hoped
for results.


112267


  EMD-80-47
MAY 5, 1980

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