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RCED-84-5 1 (1984-01-16)

handle is hein.gao/gaobabngm0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 RESOURCES COMMUNITY AND ECONOMIC DEVELOPMENT DIVISION B-207556 The Honorable Michael L. Synar Chairman, Subcommittee on Environment, Energy and Natural Resources Committee on Government Operations House of Representatives JANUARY 16, 1984 123443 Dear Mr. Chairman: Subject: Interior's Fiscal Year 1982 Report on Alternative Bidding Systems (GAO/RCED-84-5) As requested in your July 5, 1983, letter, we reviewed the Department of the Interior's fiscal year 1982 report to the Congress on the use of alternative bidding systems in leasing offshore lands to determine whether the report adequately meets the statutory requirements of the Outer Continental Shelf (OCS) Lands Act, as amended. We found that Interior's report generally meets the reporting requirements of the act with two exceptions. The report does not include Interior's recommendations for promoting competition for OCS lands or the Department of Justice's views on the competitive aspects of OCS lease sales. Interior officials in the Minerals Management Service's Office of Offshore Minerals Management--offi- cials responsible for preparing the report--told us that both items were inadvertently overlooked in this year's report, but that they would be included in future reports. The 1953 OCS Lands Act (Public Law No. 83-212) and its 1978 amendments (Public Law No. 95-372) are the central pieces of legislation governing the use of bidding systems for leasing off- shore lands. The legislation requires Interior to experiment with a variety of alternative bidding systems to increase company par- ticipation and competition in OCS lease sales. The legislation also requires both the Department of the Interior and the Depart- ment of Energy (DOE) to report to the Congress each year on the effects of using these bidding systems. While most of Interior's reporting requirements are similar to DOE's, some differences exist. For example, DOE's report is to include a detailed evalua- tion of the systems tested while Interior's report is to focus more on ways of promoting company participation and competition. Also, Interior's report is to include an evaluation of bidding RIrITRICTKD - Not to be released outside the OewGiw Ek'5D ca We o'CR CopgrsF4onaI RoxatoR5.f;, *;fcp r, RELEASED I 01646J I I ..) L U1 liatiolts. Sa-7 S-q 0

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