Congressional study questions effectiveness of pilot program on oil royalties

GAO study says program needs better management

H. Josef Hebert

Associated Press Writer

Since 1995, the government has taken oil or natural gas instead of cash royalties as payment from some producers who drill on federal leases. But the pilot program has so many flaws that Interior Department managers cannot say whether taxpayers are getting a better deal or if the government is even....

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Industry has promoted program

RIK to small refineries, Strategic Petroleum Reserve