But concerns remain. Interior also faces challenges in managing oil and gas operations on  federal lands, adapting to climate change, and resolving natural resource  conflicts through collaborative management. Wildland Fire Management Challenges Persist

The wildland fire problems facing our nation continue to grow. Strengthening the Accountability of Indian and Island Community Programs

We have reported on management weaknesses in Indian and island  community programs for a number of years—most recently on serious  delays in BIA’s program for determining whether the department will  accept land in trust and the need to assist seven island communities— four U.S. territories and three sovereign island nations—with  long-standing financial and program management deficiencies. Improving Federal Land Acquisition and Management

As the steward of more than 500 million acres of federal land, land  consolidation through sales and acquisitions and land management are  important functions for the Department of the Interior. However, the  Federal Land Transaction Facilitation Act of 2000 which, in part, was  intended to facilitate land consolidation, has had limited success. In addition, Interior’s Fish and Wildlife Service is unlikely to achieve its  goals to protect certain migratory bird habitat, and it is generally not  managing a majority of its farmlands. Reducing Interior’s Deferred Maintenance Backlog

Interior also faces a challenge in adequately maintaining its facilities and  infrastructure. In  November 2008, the department estimated that the deferred maintenance  backlog for fiscal year 2008 was between $13.2 billion and $19.4 billion  (see table 1). Although Interior has made a concentrated effort to address its  deferred maintenance backlog, the dollar estimate of the backlog has  continued to escalate. The 2008 backlog estimate is more than 60 percent  higher than the 2003 estimate of between $8.1 billion and $11.4 billion. The  funds included in the recently enacted stimulus package for Interior may  reverse this trend. Ensuring the Accurate Collection of Royalties

Interior collects, on average, over $10 billion annually in mineral lease  revenues, but many material weaknesses in federal oil and gas  management and revenue collection processes and practices place an  unknown but significant proportion of royalties and other oil and gas  revenues at risk. These weaknesses also raise questions about whether  Interior is collecting an appropriate amount of revenue for the rights to  explore for, develop, and produce oil and gas on federal lands and waters. Enhancing Other Revenue Collections and Financial Assurances

Additional revenues or financial assurances could be generated through  hardrock mining operations by amending the General Mining Act of 1872  so that the federal government could collect federal royalties on minerals  extracted from U.S. mineral rights and by requiring adequate financial  assurances from hardrock mining operations to fully cover estimated  reclamation costs. Additional revenues could also be generated by  increasing the grazing fee for public lands managed by Interior’s Bureau of  Land Management. Posthearing Questions: Major Management Challenges at the  Department of the Interior. Department of the Interior: Major Management Challenges. Other Resource Protection Products

Endangered Species Act: Many GAO Recommendations Have Been  Implemented, but Some Issues Remain Unresolved. Oil and Gas Development: Challenges to Agency Decisions and  Opportunities for BLM to Standardize Data Collection. This is a work of the U.S. government and is not subject to copyright protection in the  United States.
Why GAO Did This Study

The Department of the Interior is responsible for managing much of the nation's vast natural resources. Its agencies implement an array of programs intended to protect these precious resources for future generations while also allowing certain uses of them, such as oil and gas development and recreation. In some cases, Interior is authorized to collect royalties and fees for these uses. Over the years, GAO has reported on challenges facing Interior as it implements its programs. In addition to basic program management issues, Interior faces difficult choices in balancing its many responsibilities, and in improving the condition of the nation's natural resources and the department's infrastructure, in light of the federal deficit and long-term fiscal challenges facing the nation. This testimony highlights some of the major management challenges facing Interior today. It is based on prior GAO reports.

What GAO Found

As GAO's previous work has shown, the Department of the Interior faces major management challenges in the following six areas: (1) Strengthening resource protection; (2) Strengthening the accountability of Indian and island community programs; (3) Improving federal land acquisition and management; (4) Reducing Interior's deferred maintenance backlog; (5) Ensuring the accurate collection of royalties; and (6) Enhancing other revenue collections and financial assurances. Interior has not yet developed a cohesive strategy to address wildland fire issues, as GAO recommended in 1999 and 2005. In addition, Interior faces challenges in managing oil and gas operations on federal lands, adapting to climate change, and resolving natural resource conflicts through collaborative management. Having a land base is important to Indian tribes. Concerns remain about delays in decisions about land that Interior will take into trust status. In addition, programs for seven island communities--four U.S. territories and three sovereign island nations--continue to have financial and program management deficiencies. As the steward of more than 500 million acres of federal land, land consolidation through sales and acquisitions and land management are important functions for the department. The Federal Land Transaction Facilitation Act has had limited success and Interior's U.S. Fish and Wildlife Service is unlikely to achieve its goals to protect certain migratory bird habitat and it is generally not managing a majority of its farmlands. While Interior has improved inventory and asset management systems, the dollar estimate of the deferred maintenance backlog has continued to grow. The 2008 estimate of between $13.2 billion and $19.4 billion is more than 60 percent higher than the 2003 estimate. The funds for Interior in the recently enacted stimulus package may reverse this trend. GAO and others have found many material weaknesses in their numerous evaluations of federal oil and gas management and revenue collection processes. These weaknesses place an unknown but significant proportion of royalties and other oil and gas revenues at risk and raise questions about whether Interior is collecting an appropriate amount of revenue for the rights to explore for, develop, and produce oil and gas from federal lands and waters. Additional revenues or financial assurances could be generated by (1) amending the General Mining Act of 1872 to collect federal royalties on gold, silver, copper, and other valuable minerals belonging to the United States, (2) requiring adequate financial assurances from hardrock mining operations to fully cover estimated reclamation costs, and (3) increasing the grazing fee for public lands managed by Interior's Bureau of Land