Energy Cos. May Be Underpaying Royalties: GAO

Law360, New York (March 7, 2008, 12:00 AM EST) -- The federal government is unable to adequately determine whether it is being paid appropriate royalties for oil and gas produced on federal land, an official from the U.S. Government Accountability Office told a congressional panel on Tuesday.

Frank Rusco, acting director of the GAO's Natural Resources and Environment Division, told a House subcommittee that the Department of Interior's Minerals Management Services has inadequate information technology and management systems to properly determine whether energy companies are truly paying the government the full amount of royalties owed....
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