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RCED-85-9 1 (1984-11-20)

handle is hein.gao/gaobabnof0001 and id is 1 raw text is: 



                  COMPTROLLER GENERAL OF THE UNITED STATES
                            WASHINGTOND.C. 20548
B-215060                 .NOVEMBER 20, 1984
                                                                   %0~

The Honorable John D. Dingell
Chairman, Subcommittee on
  Oversight and Investigations
Committee on Energy and Commerce
House of Representatives           RELEASED

Dear Mr. Chairman:

     Subject: Improvements Needed in the Department of the
               Interior's Acquisition of Geophysical Data
               (GAO/RCED-85-9)

     As requested in your July 26, 1983, letter, we have reviewed
the Department of the Interior's policies and practices for
acquiring geophysical data.1 Geophysical data are gathered by
analyzing the earth's subsurface using seismic and other tech-
niques and are important to the Minerals Management Service (MMS)
in its evaluation of petroleum potential on offshore lands.2

     The Outer Continental Shelf Lands Act Amendments of 1978
require that companies conducting exploration and development of
offshore oil and gas provide geophysical data to the Secretary of
the Interior upon his request, and that Interior pay companies for
the reasonable costs of processing and reproducing, but not for
acquiring, such data. We found, however, that MMS has not ensured
that the amounts it pays companies for geophysical data are allow-
able and reasonable. For example, we found that MMS paid non-
allowable acquisition costs3 and widely varying amounts for



Nwe reported on Minerals Management Service's (MMS') practices for
safeguarding these data in a letter to the Director, MMS, dated
May 24, 1984, and plan to report to you on the adequacy of the
data which MMS uses to manage the offshore leasing program early
next year.

2The Secretary of the Interior established MMS on January 19,
1982. MMS is responsible for activities previously handled by
the Conservation Division of the U.S. Geological Survey. We
refer to MMS in this report for Geological Survey activities
relating to the procurement of geological and geophysical data
in fiscal years 1981 and 1982.

3Acquisition costs refer to the costs of collecting data (ship,
crew, equipment, etc.).

                         53                               (005578)

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