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RCED-83-94 1 (1983-09-06)

handle is hein.gao/gaobabncn0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 RESOURCES, COJMMUN~ITY, AN11 ECONCA41 DEVELOPMENT JIVISION B-204637 122299 SEPTEMBER 6,1983 The Honorable James G. Watt The Secretary of the Interior Dear Mr. Secretary: Subject: Compliance with the Department of the Interior's Cost Recovery Program Could Generate Substantial Additional Revenues (GAO/RCED-83-94) We have reviewed the Department of the Interior's recently expanded cost recovery program as it relates to oil and gas activities on Alaska's Federal onshore lands. We found that Interior's bureaus and offices are not fully complying with the Department's requirement to identify and, where appropriate, seek recovery of costs for services which directly benefit firms and individuals. During fiscal year 1982 more than $1.5 million in poten- tially recoverable costs were incurred by Interior, and action was taken to recover only a small part of them. Similar costs of at least this amount are anticipated in the future. The Bureau of Land Management (BLM), the Minerals Management Service (MMS),I and the Fish and Wildlife Service (FWS) incur these costs in responding to requests for drilling permits and other services by specific individuals and firms involved in explora- tion, development, and production activities on Alaska's Federal lands. With few exceptions, however, the beneficiaries of these services are not being required to reimburse Interior for costs incurred, apparently because of the newness of the Department's cost recovery program, the lack of emphasis and priority being given to it, and the resulting unawareness of the requirement to reexamine these costs for possible recovery. BACKGROUND Legislation has long been in place which authorizes Interior to recover its costs for providing oil- and gas-related and other services. This legislation includes the Federal Land 10n December 3, 1982, the Secretary of the Interior transferred all the MMS responsibilities discussed in this report to BLM. (008502)

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