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

RCED-84-78 1 (1984-04-30)

handle is hein.gao/gaobabnjr0001 and id is 1 raw text is: Ac, COMPTROLLER GENERAL OF THE UNITED STATES J Y t ' 'WASHINGTON DC 20548 B-207556 APRIL 30, 1984 The Honorable Mike Synar Chairman, Subcommittee on Environment, 1111.I..111...flU Energy, and Natural Resources I , 11111 ill Committee on Government Operations House of Representatives 124349 I, Dear Mr. Chairman: Subject: Improvements Needed in the Department of the Interior's Measurement of Offshore Oil for Royalty Purposes (GAO/RCED-84-78) As requested in your May 26, 1983, letter, we have reviewed the Department of the Interior's (Interior) activities relating to the measurement of oil produced on the Outer Continental Shelf. Our review focused on (1) identifying the procedures Interior used to ensure that offshore oil production is measured accurately for royalty purposes, (2) determining whether offshore operators are complying with regulations concerning the accuracy of production measurement devices, (3) determining whether Interior uses produc- tion measurement data to ensure that sales volumes are reported accurately, and (4) reviewing the extent to which offshore produc- tion measurement data are being considered for inclusion in the new Automated Royalty Management Program. Our review disclosed that Interior does not have assurance that all oil produced on offshore federal leases is accurately measured for royalty determination purposes. We estimate that during 1982, more than one-third of the oil produced in the Gulf of Mexico--about 106 million barrels with associated royalties valued at $571 million--flowed through meters which Interior was not assured were accurate. During 1982, Interior's Minerals Management Service (MMS) did not receive about one-third of the required monthly reports on sales meter accuracy in the Gulf of Mexico. In instances where the reports were received, MMS' review of the test results did not always identify whether meters were operating properly. When meters were reported or found to be operating improperly, there was little or no followup by MMS to Icompanies responsible for such activities as drilling to explore, develop, and produce the oil found on the lease. In most instances, the operator will be the company, or one of the companies, awarded the lease when it was sold. A company may, however, become the operator through various types of agreements with the lease holder. (008523)

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