Mineral revenues: Opportunities to increase onshore oil and gas minimum royalty revenues
The Mineral Leasing Act of 1920 provides that after discovery of oil or gas in paying quantities, federal onshore oil and gas lessees must pay annually a minimum royalty of $1 per acre. GAO found that since the Department of the Interior has not ensured the collection of all minimum royalties, as much as $1.7 million may have been undercollected for FY 1985. GAO also found that the $1 rate, legislatively established nearly 40 years ago as lowest amount charageable, has not kept pace with increased rental rates. GAO recommends that Interior recover uncollected or undercollected minimum royalties and related interested, and monitor existing leases to ensure that minimum royalties are paid. It is also recommends that the minimum royalty rate be adjusted.
- Research Organization:
- General Accounting Office, Washington, DC (USA)
- OSTI ID:
- 5967887
- Report Number(s):
- GAO/RCED-86-110
- Country of Publication:
- United States
- Language:
- English
Similar Records
Providing for adjustments of royalty payments under certain Federal onshore and Indian oil and gas leases, and for other purposes. House of Representatives, One Hundredth Congress, First Session, October 15, 1987
Possible effects of increased royalty rate for federal onshore oil and gas leases
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