Interior secretary Ken Salazar has cancelled plans to divide the Minerals Management Service into two separate entities in favor of reorganizing the agency according to its "three conflicting missions."
Lawmakers and government watchdog groups have praised the decision to break up MMS but also called on it to take the reforms further by separating royalty collection oversight from the leasing function.
According to Interior, the reorganization will now be carried out in consultation with Congress and establish a new bureau of ocean energy management, under the supervision of the assistant secretary for land and minerals management – responsible for the sustainable development of the outer continental shelf’s resources, including resource evaluation, planning, and other activities related to leasing.
A new bureau of safety and environmental enforcement will also fall under the supervision of the assistant secretary for land and minerals management and be responsible for ensuring comprehensive oversight, safety, and environmental protection in all offshore energy activities.
A new office of natural resources revenue will fall under the supervision of the assistant secretary for policy, management, and budget and will cover the royalty and revenue management function including the collection and distribution of revenue, auditing and compliance, and asset management.
"The Minerals Management Service has three distinct and conflicting missions that – for the benefit of effective enforcement, energy development, and revenue collection – must be divided," said Salazar.
The reorganization is in response to the oil spill, but follows a series of reforms begun in January 2009 that included the termination of a controversial royalty-in-kind program.
