Crude Oil Undervaluation: The Ineffective Response of the Minerals Management Service
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Serial Number
104-858.H
Levin Center Identifier
Document Date
1996-09-27
Report Length
20 pages
Policy Agendas Project Major Code
Policy Agendas Project Minor Code
Additional, Minority, Dissenting Views
Report Type
Found Using Methodology
Yes
Committee(s)
Commission(s)
Idependent Author(s)
Brief Executive Summary
The Subcommittee on Government Management, Information, and Technology of the House Committee on Government Reform and Oversight produced this report to assess whether companies extracting oil from Federal lands in California undervalued the oil, leading to underpayment of royalties to the Federal Government. The subcommittee found that between 1978 and 1993, oil companies did not pay sufficient royalty on crude oil drilled on Federal lands potentially by as much as $2 billion nationwide. The report makes recommendations including preparing a timetable for collecting royalty underpayments, considering external audit assistance, and examining other potential undervaluations among others.