Possible effects of increased royalty rate for federal onshore oil and gas leases

Technical Report · Fri Sep 03 00:00:00 EDT 1982

OSTI ID:6604571

The Commission on Fiscal Accountability of the Nation's Energy Resources recently recommended increasing the current 12-1/2% onshore federal oil and gas royalty rate. By the year 2000, a 16-2/3% royalty rate for federal onshore noncompetitive oil and gas leases could be generating additional annual revenues of from $300 million to $1.2 billion. However, uncertainty surrounds these projections because of the assumptions involved in their preparation, and other factors that could influence their realization. Oil and gas leases negotiated in the private sector usually have a 12-1/2% royalty rate, but leases on state and Indian lands tend to have a higher rate. There is also some evidence of a trend toward higher rates. However, different leasing systems and provisions make a direct comparison difficult.

• Research Organization: General Accounting Office, Washington, DC (USA). Energy and Minerals Div.
• OSTI ID: 6604571
• Report Number(s): GAO/EMD-82-124; ON: DE83901393
• Resource Relation: Other Information: Report to the Subcommittee on Oversight and Investigations, Committee on Interior and Insular Affairs, House of Representatives
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
03 NATURAL GAS
29 ENERGY PLANNING
POLICY AND ECONOMY
NATURAL GAS DEPOSITS
LEASES
NATURAL GAS INDUSTRY
ROYALTIES
PETROLEUM DEPOSITS
PETROLEUM INDUSTRY
CONTINENTAL SHELF
ECONOMIC IMPACT
EVALUATION
OFFSHORE OPERATIONS
CONTINENTAL MARGIN
GEOLOGIC DEPOSITS
INCOME
INDUSTRY
MINERAL RESOURCES
RESOURCES
020700* - Petroleum- Economics
Industrial
& Business Aspects
030600 - Natural Gas- Economic
Industrial
& Business Aspects
294002 - Energy Planning & Policy- Petroleum
294003 - Energy Planning & Policy- Natural Gas
290200 - Energy Planning & Policy- Economics & Sociology