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GAO-25-108130 [i] (2025-04-11)

handle is hein.gao/floladgsc0001 and id is 1 raw text is: The Big Picture 2024 that ONRR last estimated a royalty gap of approximately $100 million in both 2010 and 2011. In 2024, oil and gas production from federal leases represented 26 percent and 14 percent of all U.S. domestic production, respectively. Companies paid the Department of the Interior (Interior) almost $14 billion in revenues related to oil and gas, representing one of the largest non-tax sources of revenue for the government. Certain bureaus within Interior oversee oil and gas resources on federal lands and waters. This includes selling leases and granting permits to companies, inspecting production sites, and verifying companies pay royalties. Under policies implementing recent executive orders, Interior is to identify impediments to, and expedite, the development of oil and gas on federal lands and waters. Interior's management of oil and gas has been on our jh-Risk List since 2011. This Snapshot summarizes our recent findings from 2014 through 2024 related to federal oversight of oil and gas resources and our recommendations to Interior. What GAO's Work Shows We identified five key areas in which Interior faces challenges. Interior strives to ensure that the federal government receives a fair return of revenues. The Office of Natural Resources Revenue (ONRR) is to ensure companies accurately pay royalties. There can be a gap between the payments ONRR collects from companies and what it should collect-called a royalty gap-which may be due in part to companies not reporting or misreporting revenues. We found in > We recommended that ONRR consider creating a new royalty gap model and periodically estimate a royalty gap to enhance its decision-making and strategic planning of its efforts to collect and verify accurate royalties. The Bureau of Land Management (BLM) relies on guidance in its management and oversight of oil and gas development on federal lands. We found in 2020-by not first working on permits that will most likely be used for drilling in the near term-BLM did not work with companies to consistently prioritize drilling permit applications. This can lead to inefficient use of BLM's limited staff. We also found in 2021 that BLM relied on outdated leasing guidance, which could lead to inefficiencies for companies and BLM due to extra time spent interpreting the guidance. > We recommended that BLM develop a documented process on how to prioritize drilling permit applications. We also recommendec that BLM adjust its approach for updating its leasing guidance. Interior relies on multiple IT systems housing significant amounts of data to help it effectively oversee oil and gas activities, such as permitting, inspections, and royalty collection. GAO-25-108130 Oil and Gas Snapshot

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