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Royalty and Production Reporting

Ronald J. Pennington, Linda S. Whitfield, Federal and Indian Oil and Gas Royalty Valuation and Management (1992)

The Department of the Interior (DOI) has been collecting bonuses, rents, royalties, and other receipts from Federal and Indian mineral leases since 1921. The Minerals Management Service (MMS) assumed the responsibility for this function, from the United States Geological Survey (USGS), when it was established in 1982.1

The Royalty Management Program (RMP), within MMS, is specifically responsible for the collection and disbursement of revenues paid on Federal (onshore and offshore) and Indian mineral leases, as well as the collection of production and other operational data to ensure that payments to the Government are accurate. The RMP provides significant revenue to the U.S. Department of the Treasury (Treasury), Federal Surface Agencies, States, and Indian recipients, accounting for approximately $4.6 billion annually.2

A. Mission and Goals

The RMP's primary mission is to ensure that all revenues from Federal and Indian leases are efficiently, effectively, and accurately collected, accounted for, verified, and disbursed to the appropriate recipients in a timely manner and in accordance with existing laws, regulations, lease terms, orders, and notices; and to provide support for technical lease management functions.3 The RMP's core purpose is to provide excellent management of Federal and Indian mineral revenues for it's customers. In partnership wit