Implementation of the U.S. Extractive Industries Transparency Initiative (USEITI)

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


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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Office of Natural Resources Revenue

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4

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


ONRR: Management of Revenues(as of 6/24/2013

1)

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


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.


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


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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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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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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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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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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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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Questions & Follow Up

Jennifer L. GoldblattChief of Staff

Office of Natural Resources [email protected]

Paul A. Mussenden Deputy Assistant Secretary

Natural Resources Revenue [email protected]

Gregory J. GouldDirector

Office of Natural Resources [email protected]

Additional Contacts:

mailto:[email protected]



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Implementation of the U.S. Extractive Industries Transparency Initiative (USEITI)

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