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

Technical Report · Fri Sep 03 04:00:00 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
• Country of Publication: United States
• Language: English

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