The Interior Department has announced plans to reorganize its Minerals Management Service, which is the agency charged with royalty collections on tribal and federal land. Secretary of the Interior Ken Salazar signed a secretarial order May 19 that will lead to restructuring of the agency, “and the division of its three conflicting missions into separate entities with independent missions,” according to a release from the department.
“The Minerals Management Service has three distinct and conflicting missions that – for the benefit of effective enforcement, energy development, and revenue collection – must be divided,” Salazar said. “The reorganization I am ordering today is the next step in our reform agenda and will enable us to carry out these three separate and equally-important missions with greater effectiveness and transparency. These reforms will strengthen oversight of offshore energy operations, improve the structure for revenue and royalty collections on behalf of the American people, and help our country build the clean energy future we need.”
The reorganization will be carried out in consultation with Congress. One of the divisions under the plan will be the Office of Natural Resources Revenue, which will be responsible for the royalty and revenue management function, including the collection and distribution of revenue, auditing and compliance and asset management.