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Federal Oil and Gas Revenue: Actions Needed to Improve BLM's Royalty Relief Policy

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Report Type Reports and Testimonies
Report Date Oct. 6, 2020
Release Date Oct. 6, 2020
Report No. GAO-21-169T
Summary:

The Interior Department's Bureau of Land Management oversees energy production on federal lands and collects royalties to help ensure a fair return for taxpayers.

Oil and gas producers faced a sharp drop in demand during the COVID-19 pandemic. Price declines can increase financial risk for producers of recoverable oil and gas.

Interior responded with a policy allowing temporary relief from royalties. We testified that Interior didn't evaluate the policy before implementing it to determine where relief was most needed and how much it would cost. We recommended better analysis of costs and benefits and more.

oil derricks

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