Reports

Reissue of Audit "The CHS Should Improve Its Financial Management System to Receive Federal Funds"

We investigated allegations that a utility company improperly valued gas produced from Federal mineral leases and underpaid mineral royalties to the Office of Natural Resources Revenue (ONRR). We did not substantiate the allegations and found the utility company complied with Federal guidance when it calculated and paid Federal mineral royalties to ONRR.

We investigated allegations that a National Park Service (NPS) prime contractor failed to pay its subcontractors on two NPS construction contracts. We found that the NPS prime contractor violated the Federal Acquisition Regulation’s prompt payment requirements when it failed to pay two subcontractors for work within 7 days of receiving a payment from the NPS. The prime contractor wrongfully withheld the full payment to a subcontractor for over 18 months for work completed in November 2017 at Saint-Gaudens National Historic Site.

We investigated allegations that Continental Resources, Inc. flared gas from Federal mineral leases in North Dakota without an approved permit from the Bureau of Land Management (BLM) and failed to report the flaring to the Office of Natural Resources Revenue (ONRR). We confirmed that Continental flared natural gas produced from Federal leases without a BLM-approved permit but did report the flared gas volumes to ONRR. As a result of the flared natural gas, the company owed unpaid royalties to ONRR in excess of $900,000 that ONRR is attempting to recover.

Unsubstantiated Allegations of Royalty Fraud