The Daily Outrage: U.S. fails to collect royalties for gas production

WHO: U.S. Minerals Management Service

WHAT: The federal government could lose millions of dollars owed from natural gas production on public lands because it does not promptly determine and collect when it gets shortchanged. The Government Accountability Office reported Monday that Minerals Management Service does not have the tools or staff necessary to check that companies are paying the government what it’s owed in royalties.

WHY: Under the royalty-in-kind program, companies producing gas on federal lands and offshore pay the government with fuel rather than cash. The government then sells the gas.

HOW BAD: GAO estimates that $21 million is owed. But it could be much more, because the government is not verifying how much gas companies produce and has not determined when interest should accrue on unpaid royalties. The U.S. receives much less percentagewise than what other governments collect from their oil and gas production.

Minerals Management ServiceOpinionOther Opinion

Just Posted

San Francisco Giants manager Gabe Kapler, pictured in July at Oracle Park, says team members simultaneously can be “measured and calm” and “looking to push the accelerator.” (Chris Victorio/Special to The Examiner)
How Gabe Kapler sets the tone for Giants’ success with strategy, mindset

‘There’s no doubt in my mind that he’s the hands-down manager of the year’

Artist Agnieszka Pilat, pictured with Spot the Robot Dog from Boston Robotics, has a gallery show opening at Modernism. (Courtesy Agnieszka Pilat)
Screenshots of VCs, Kanye and tech parties by the Bay

In this week’s roundup, Ben Horowitz’s surprising hip-hop knowledge and the chic tech crowd at Shack15

Speaker of the Parliament of Mongolia Gombojav Zandanshatar said his country and San Francisco face similar challenges on issues including COVID recovery and climate change.<ins> (Kevin N. Hume/The Examiner)</ins>
Mongolian leaders meet with tech, film leaders on city tour

‘I really want San Franciscans to meet the new Mongolian generation’

If he secured a full term in the Senate, Newsom would become the most powerful Californian Democrat since Phil Burton at the height of his career, or maybe ever. <ins>(Kevin Hume/The Examiner)</ins>
Firefighters extinguish burning material near Lake Tahoe on Sept. 3 in the wake of the Caldor Fire; environmental scientists say the huge fire is bringing to light deficiencies in forest management. <ins>(Max Whittaker/New York Times)</ins>
Cal Fire, timber industry must face an inconvenient truth

We are logging further into the wildfire and climate crisis

Most Read