TAILIEUCHUNG - Data Management Problems and Reliance on Self-Reported Data for Compliance Efforts Put MMS Royalty Collections at Risk

While the recommendations in this handbook reflect best practices, they are not meant to define mandatory standards. Rule , Florida Administrative Code, provides standards for record (master) copies of public records which reside in electronic recordkeeping systems, establishes minimum requirements for the creation, utilization, maintenance, retention, preservation, storage, and disposition of electronic record (master) copies, regardless of the media, and must be followed by all agencies as defined by Section (2), Florida Statutes | United States Government Accountability Office GAO Testimony Before the Subcommittee on Energy and Mineral Resources Committee on Natural Resources House of Representatives For Release on Delivery Expected at 10 00 . EST Tuesday March 11 2008 MINERAL REVENUES Data Management Problems and Reliance on SelfReported Data for Compliance Efforts Put MMS Royalty Collections at Risk Statement of Frank Rusco Acting Director Natural Resources and Environment Accompanied by Jeanette Franzel Director Financial Management and Assurance GAO-08-560T March 11 2008 À GAO Accountability Integrity Reliability Highlights Highlights of GAO-08-560T a testimony before the Subcommittee on Energy and Mineral Resources Committee on Natural Resources House of Representatives MINERAL REVENUES Data Management Problems and Reliance on SelfReported Data for Compliance Efforts Put MMS Royalty Collections at Risk Why GAO Did This Study Companies that develop and produce federal oil and gas resources do so under leases administered by the Department of the Interior Interior . Interior s Bureau of Land Management BLM and Offshore Minerals Management OMM are responsible for overseeing oil and gas operations on federal leases. Companies are required to selfreport their production volumes and other data to Interior s Minerals Management Service MMS and to pay royalties either in value payments made in cash or in kind payments made in oil or gas . GAO s testimony will focus on whether 1 Interior has adequate assurance that it is receiving full compensation for oil and gas produced from federal lands and waters 2 MMS s compliance efforts provide a check on industry s self-reported data 3 MMS has reasonable assurance that it is collecting the right amounts of royalty-in-kind oil and gas and 4 the benefits of the royalty-in-kind program that MMS has reported are reliable. This testimony is based on ongoing work. When this work is complete we expect to make recommendations to address these and other .

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