Effects of increasing filing fees for noncompetitive onshore oil and gas leases
The Government Accounting Office (GAO) examined the impact of increasing the fee charged to applicants for noncompetitive onshore oil and gas leases from $25.00 to $75.00. Interior believes the increased filing fee will: (1) reduce casual speculation and multiple filings, thereby reducing fraud potential, development delays caused by assignments, and administrative burden; and (2) generate significant additional revenue. Interior's analysis is, of necessity, based largely on conjecture, but the possibility that the positive results foreseen may not materialize to the degree projected cannot be ruled out. For example, while it is likely that the $75 fee will generate additional revenue over what was obtainable under either the $10 or $25 rate, Interior's projections of at least a million filings annually and $150 million in revenues are far from certain. GAO was also unable in the time available to determine the degree to which the problems the Department desires to overcome exist, or that they will be resolved through a fee increase. Results suggest that: reducing the number of filings is not necessarily the total or only solution to reducing the administrative burden; the casual speculator is not having that great an adverse effect on development, and in fact has certain positive aspects; and the true extent of fraud in the SOG may not be as great as initially supposed. In addition, there are possible adverse effects that may not have been fully considered. For example, the increased filing fee, when coupled with the increased rental, could adversely affect industry's exploration activities, particularly that of the smaller independent. GAO suggests, now that the increase is in effect, that the Interior Department and the Congress closely watch the results, and be prepared to take remedial action if deemed necessary.
- Research Organization:
- General Accounting Office, Washington, DC (USA). Energy and Minerals Div.
- OSTI ID:
- 5437201
- Report Number(s):
- EMD-82-67; ON: DE82903971
- Country of Publication:
- United States
- Language:
- English
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