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RCED-85-88 1 (1985-04-04)

handle is hein.gao/gaobabfai0001 and id is 1 raw text is:                                                                  ,.c ' Y%
              tFSTRICTgD -  Not to be released outside the General      +
              Accounting Office extept on the basis of specific approvae.
              by the Office of Congressiom! Ec&iens.


BY HE u.s GENERAL ACCOUqIJ4( OFFICE



Report To The Chairman,

Committee On Interior And Insular Affairs

House Of Representatives







Issues Surrounding Continuation Of The

Noncompetitive Oil And Gas Lottery System




The Bureau of Land Management is respon-
sible for the leasing of oil and gas mineral
rights on over 300 million acres of public
lands. Under the Mineral Leasing Act of
1920, lands with known oil and gas deposits
are leased competitively. However, much
more federal land is leased through a noncom-
petitive lottery system, which generates
substantial receipts for the federal Treasury--
about $250 million in filing fees for the 5-
year period 1980-1984.

The lottery system has been criticized since
its 1959 inception for encouraging fraud,
misleading the public, and generating insuffi-
cient revenues. On October 12, 1983, the
program was suspended for 10 months
because of recognized weaknesses in the
system. This report highlights major issues
surrounding the lottery program.








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                                                          GAO/RCED-85-88
   lCCOUI,\                   5,-3sq 3                      APRIL 4,1985

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