A government watchdog recommends that Congress shorten the number of years oil and gas companies have to adjust their federal royalty payments.
The Government Accountability Office also recommended that an Interior Department agency make internal alterations to how it tracks royalty agreements with companies.
The report, which was published this week, found that giving companies six years to make adjustments to their royalty payments can make work difficult for regulators.
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Oil and gas royalties are a percentage of the total production value that the government charges companies that extract oil and gas from public territories. Royalties generated more than $14 billion for the federal government in fiscal 2024, according to GAO.
