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Offshore Oil and Gas Resources: Interior Can Improve Its Management of Lease Abandonment

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Report Type Reports and Testimonies
Report Date May 11, 1994
Report No. RCED-94-82
Subject
Summary:

When oil and gas production from a federal lease on the Outer Continental Shelf ends, the Interior Department's Minerals Management Service (MMS) is responsible for ensuring that the parties to the lease bear the costs of abandoning the leased area. Lease abandonment includes plugging any abandoned wells, removing structuring, and clearing lease sites, all of which must be done in a way that minimizes harm to marine life and the environment. This report discusses (1) MMS' actions to lessen the environmental impact of lease abandonment and (2) the estimated costs of lease abandonment and MMS' approach for ensuring that the government is not burdened with these costs. GAO focuses on MMS' actions in the Gulf of Mexico because almost all Outer Continental Shelf oil and gas structures are located there.

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