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Compliance With the Department of the Interior's Cost Recovery Program Could Generate Substantial Additional Revenues

RCED-83-94 Published: Sep 06, 1983. Publicly Released: Sep 06, 1983.
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Highlights

GAO reviewed the Department of the Interior's recently expanded cost recovery program as it relates to oil and gas activities on Alaska's federal onshore lands.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of the Interior The Secretary of the Interior should instruct the Director of the Office of Financial Management to ensure that bureaus and offices comply with the expanded program to recover appropriate costs for services provided to the nonfederal sector. Specifically, bureaus and services in Alaska should identify unrecovered oil- and gas-related costs, evaluate the appropriateness of recovery possibilities, and institute collection procedures, where appropriate.
Closed – Implemented
The Office of Financial Management is awaiting clarification and updated information from the bureaus. In a memo dated January 24, 1985, which endorsed the Cost Recovery Report, Interior identified general actions BLM has taken to track and monitor cost recovery items. However, BLM contends that it is not yet practical to fully implement the GAO recommendation.

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Topics

Cost analysisEnergy costsGas leasesLand managementMonitoringOil drillingOil leasesPetroleum explorationProgram managementReimbursements to government