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Office of Natural Resources RevenueU.S. Department of the Interior
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Implementation of the U.S. Extractive Industries Transparency Initiative (USEITI)
May 13, 2014
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
ONRR: Who We Are
♦ Mission: To collect, disburse, and verify Federal and Indian energy and other natural resource revenues on behalf of all Americans.
♦ Established within the Office of the Secretary of the Interior under the Assistant Secretary for Policy, Management and Budget on October 1, 2010.
♦ Serves a leadership role in Department-wide collaboration and implementation of key natural resource revenue related initiatives such as the Extractive Industries Transparency Initiative.
Dallas
Denver
Farmington
Ft. Berthold
Houston
Oklahoma City
Tulsa
Washington D.C.
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Industry Compliance Accurate Revenues & Data Professionalism & Integrity
Office of Natural Resources Revenue
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Industry Compliance Accurate Revenues & Data Professionalism & Integrity
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ONRR: Cumulative Revenue Disbursement
$257.4 Billion
• Since 1982, ONRR has disbursed over $257 billion in mineral lease revenues from Federal offshore and Federal and Indian onshore lands
• The annual disbursement to the U.S. Treasury is one of the Federal government’s largest sources of non-tax revenue
• In FY 2013, ONRR disbursed $14.2 billion
Historic Preservation Fund$4.4 billion
Land & Water Conserva-tion Fund
$27.9 billion
Reclamation Fund$24.2 billion
American Indian Tribes & Allottees$9.2 billion
State Share (Offshore)$3.8 billion
State Share (Onshore)$31.2 billion
U.S. Treasury$156.7 billion
Cumulative Mineral Lease RevenueDisbursement (1982 - 2013)
Note: rounding may affect totalsNote: rounding may affect totals
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
ONRR: Management of Revenues(as of 6/24/2013
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61,533 Total LeasesOffshore: 6,538*Onshore: 48,650**Indian: 6,345***
32,433 Producing LeasesOffshore: 1,432*Onshore: 25,049**Indian: 5,952***
*Administered by BOEM**Administered by BLM***Administered by BIA
1ONRR lease data is maintained for the sole purpose of collecting, verifying and disbursing mineral revenues. For official lease data, please refer to the leasing agencies. 5
Oil Natural Gas
Coal
Carbon DioxideCopperGeothermalHot WaterLeadLimestone PhosphatePotashRenewablesSand & GravelSodiumSulfurOther
Products & % of Collections
90%
8%
2%
RoyaltiesRents
BonusesPenalties
Other revenues
Collect
Disburse Funds
Audit & Ensure Compliance
from over 2,000 payors
Federal OnshoreFederal OffshoreAmerican Indian
Land Categories
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
DOI/ONRR: Leading Implementation of USEITI
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The Extractive Industries Transparency Initiative, or EITI, is a global standard that promotes revenue transparency and accountability in the extractive sector.
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
IncreaseTransparency &Dissemination
Enhance Understanding
by all Stakeholders
AchieveBetter Governance &
Accountability
Highlight resource revenue to
government
Ensure fair return on behalf of citizens for the use of public resources
Inform public policy
dialogue
Strengthen investment climate
Enhance public financial management
Foster participatory governance through
collaborative decision-making
USEITI: Benefits of Implementation
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Provide accessible and useful information about
public resources
Maintain or increase social license to
operate
Maintain or increase trust & public confidence
across sectors
Industry Compliance Accurate Revenues & Data Professionalism & Integrity
USEITI: MSG Representation
Civil Society• Project on Government Oversight, Revenue Watch, Transparency International• Earthworks, First Peoples Worldwide, North Star Group, Oceana• Calvert Investments, Energy Policy Forum, Goldwyn Global Strategies, Research
Associates• United Mineworkers, United Steelworkers• University of California Los Angeles, Virginia Polytechnic Institute
Government• Departments of Energy, the Interior, Treasury• State Compact Commissions for Mining, Oil and Gas• State Government Representatives from California and Wyoming
Industry• BP, Chevron, Conoco-Phillips, Exxon-Mobil, Noble Energy, Shell Oil, Ultra Petroleum,
Walter Energy• Freeport McMoRan Copper & Gold, Newmont Mining, Peabody, Rio Tinto• American Petroleum Institute, Council of Petroleum Accountants Societies, Independent
Petroleum Association of America, National Mining Association
The USEITI Multi-Stakeholder Group has 21 Members and 21 Alternates, representing a wide range of organizations and stakeholder interests:
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Industry Compliance Accurate Revenues & Data Professionalism & Integrity
EITI Requirement Decisions Reached by MSG Pending MSG Decisions
Scope – Types of Commodities and Revenues to be included
Commodities: Oil; Gas; Coal; Other Leasable Minerals, Non-Fuel Minerals (Hard Rock, Sand & Gravel); Geothermal; Other Renewables (Solar/Wind)
Tabled for future discussion (Forestry and Fisheries)
Revenue Streams: Rents, Royalties Bonuses and Fees Revenues collected by US Department of Interior (DOI)
Federal Corporate Income Taxes to be reported by companies
Details of how taxes can be reported, consistent with SEC 1504 and EU law per EITI Standard
USEITI: MSG Outcomes to Date - Scope
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Industry Compliance Accurate Revenues & Data Professionalism & Integrity
EITI Requirement Decisions Reached by MSG Pending MSG Decisions
Materiality Threshold forThird Party Reconciliation
For the initial report, $50 million total annual revenues paid to DOI by parent company, including its subsidiaries. This equals approximately 80% of DOI natural resources revenues. For the second report, $20 million total annual revenues paid to DOI by parent company, including its subsidiaries, which equals approximately 90% of DOI natural resources revenues.
USEITI: MSG Outcomes to Date - Materiality
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Industry Compliance Accurate Revenues & Data Professionalism & Integrity
USEITI: Unilateral Disclosure
• Disclosure of complete, reliable data, disaggregated by commodity, company, revenue stream, and by project (to the extent allowable by law and by existing parameters of reporting to Interior).
• 100% of extractive revenues collected by Interior that are determined to be within scope by the MSG, regardless of the materiality threshold.
• Represents an unprecedented scale of government disclosure.
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Industry Compliance Accurate Revenues & Data Professionalism & Integrity
USEITI: Publicly Sourced Narrative
• Will provide easy access to available data available from U.S. government agencies and other authoritative sources. – Gives context and a well-rounded picture of the extractive
industries in the U.S.
• Include information for additional types of natural resources that will not be reconciled under USEITI.
• Consistent with the goals and standards established by the September 20, 2011, U.S. National Action Plan for the Open Government Partnership.
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Industry Compliance Accurate Revenues & Data Professionalism & Integrity
USEITI Implementation Timeline
April 2014
USEITI MSG Meeting #1
• Approve Terms of Reference for the Independent Administrator (IA)
June 2014
USEITI MSG Meeting #2
• Review Opt-In Process for States & Tribes
• Review Options for Reporting Taxes, Project Level Data, Accounting Period, & Contextual Narrative
September 2014 USEITI MSG
Meeting #3• IA on Board• MSG Decisions on
Reporting Taxes, Project Level Data, Accounting Period, & Contextual Narrative
• Review Reporting Template Options
November 2014
USEITI MSG Meeting
#4• Develop 2015
Work Plan to Publish 1st USEITI Report
• Review IA’s Draft Inception Report
December 2013
U.S. Application Submitted
March 2014
U.S. Candidacy Approved
December 2014
DOI Online Data Pilot
December 2015
Publish 1st USEITI Report
December 2016
Publish 2nd USEITI Report
2014 USEITI MSG Work Plan
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Industry Compliance Accurate Revenues & Data Professionalism & Integrity
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Questions & Follow Up
Jennifer L. GoldblattChief of Staff
Office of Natural Resources RevenueJennifer.Goldblatt@onrr.gov
Paul A. Mussenden Deputy Assistant Secretary
Natural Resources Revenue Managementpaul_mussenden@ios.doi.gov
Gregory J. GouldDirector
Office of Natural Resources Revenuegreg.gould@onrr.gov
Additional Contacts: