Oil and gas bonds
Subtitle: BLM needs a comprehensive strategy to better manage potential oil and gas well liability : report to congressional requesters
Contributors: Mittal, Anu K.
Publisher: U.S. Govt. Accountability Office
Published: 2011
Place of publication: Washington, D.C.]
Language: eng
Format: [electronic resource] :
Number of pages: 53
Subjects: Rules and practice; Evaluation; Petroleum industry and trade; Public lands; Oil and gas leases; Reclamation of land; Finance; United States. Bureau of Land Management; United States
Other titles: Oil and gas bonds :; BLM needs a comprehensive strategy to better manage potential oil and gas well liability; BLM oil and gas liabilities
Description: The number of oil and gas wells on leased federal land has increased dramatically. To help manage the environmental impacts of these wells, the Department of the Interior's (Interior) Bureau of Land Management (BLM) requires oil and gas operators to reclaim disturbed land in a manner it prescribes. To help ensure operators reclaim leased land, BLM requires them to provide a bond before beginning drilling operations. BLM refers to oil and gas wells and leased land that will require reclamation as potential liabilities because BLM may have to pay for reclamation if the operators fail to do so. GAO was asked to determine (1) BLM's policies for managing potential federal oil and gas well liability, (2) the extent to which BLM has implemented these policies, and (3) the challenges, if any, BLM faces in managing potential oil and gas well liability. GAO analyzed agency data on bonding and wells and interviewed BLM officials. We surveyed all 48 BLM field offices with an oil and gas program, and received 33 responses covering these offices. GAO recommends that BLM develop a comprehensive strategy to, among other things, increase minimum bond amounts over time and improve its data system to better evaluate potential liability and agency performance. In commenting on a draft of this report BLM agreed with GAO's recommendations and noted that it has already taken steps to improve the completeness and accuracy of its oil and gas data.
Notes: Title from cover screen (viewed Feb. 28, 2011).

"February 2011."

"GAO-11-292."

Includes bibliographical references.

Mode of access: World Wide Web.

System requirements: Adobe Reader.