U.S. Agency to Review Oil Royalties
By EDMUND L. ANDREWS
Published: November 2, 2006
WASHINGTON, Nov. 1 — The Government Accountability Office, the watchdog agency for Congress, is beginning a broad investigation into potential deficiencies in how the government collects billions of dollars in royalties from companies that produce oil and gas on federal territory. The inquiry is being done at the request of the Republican-led House Government Reform Committee.
In announcing the investigation, Republican lawmakers said they had worries about the management of the entire royalty program by the Interior Department, including its regulations and enforcement practices and the accuracy of basic information....
The investigation reflects a growing anger in Congress about the Interior Department’s vast oil and gas leasing program, under which the government collects as much as $10 billion a year on oil and gas produced on federal land and in federal waters.
The Minerals Management Service of the Interior Department, which oversees royalty collections, has come under growing criticism from lawmakers in both parties for losing track of billions of dollars in royalties....
Four auditors responsible for scrutinizing royalties recently contended that their superiors blocked them from challenging millions of dollars in deliberate underpayments....
http://www.nytimes.com/2006/11/02/business/02royalties.html