Secretary of the Interior Ken Salazar Wednesday signed a Secretarial Order to divide the Minerals Management Service (MMS) into three separate divisions in an effort to delineate independent missions.
Conflicts of interest within the MMS over offshore leasing, revenue collection and safety oversight have been criticized in light of the ongoing oil spill in the Gulf of Mexico.
The MMS is also responsible for leasing federal waters and lands for renewable energy projects.
Salazar acknowledged that the MMS has conflicting missions and must be separated to improve effectiveness and transparency.
The reorganization will establish the Bureau of Ocean Energy Management–a new bureau under the supervision of the Assistant Secretary for Land and Minerals Management that will be responsible for the development of the Outer Continental Shelf’s conventional and renewable energy resources, including resource evaluation, planning, and other activities related to leasing.
The new Bureau of Safety and Environmental Enforcement will also be under the supervision of the Assistant Secretary for Land and Minerals Management, and it will be responsible for ensuring comprehensive oversight, safety, and environmental protection in all offshore energy activities.
A new Office of Natural Resources Revenue will be under the supervision of the Assistant Secretary for Policy, Management, and Budget and will be responsible for royalty and revenue management. This includes the collection and distribution of revenue, auditing and compliance, and asset management.
“With this restructuring, we will bring greater clarity to the roles and responsibilities of the Department while strengthening oversight of the companies that develop energy in our nation’s waters,” Salazar said.
Secretary of the Interior James Watt created the Minerals Management Service by Secretarial Order on January 19, 1982, consolidating minerals revenue management from the U.S. Geological Survey, the Bureau of Land Management and the Bureau of Indian Affairs. Since then, MMS has been managing the collection of revenues generated from programs including: oil and gas, coal, metals, potash, and renewable energy resources. Since 1982, MMS has collected over $210 billion in revenues and distributed them to States, Tribes, counties, and the federal treasury. MMS collects approximately $13 billion annually and approximately 95% of the revenue that the Department of the Interior collects as a whole.
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