415 UNITE'!) STATES DEPARTMENT OF THE INTERIOR BUDGET JUSTIFICATIONS, F.Y. 1995 MINERALS MANAGEMENT SERVICE NOT77E Thm budget jueificuiow we prqired fce the lateior wid Relaed ASeades Approiaboas Suboomagn m. Approva foercal-an ofthejmtincetoes prior to then ixotima m dhe puthit remrd of te Sdonuo hoeargs i may b obtainedthroouh the Ofie of Bludgetof the Dopabmma of the hateoje. 0KON WANTEDO5 MECYCUEOPAPIA (415) 76-978 0-94- 14 416 MINERALS MANA GEMENT SER VICE BUDGET JUS77FICA77ON FY 1995 TABLE OF CONTENTS GENERAL STATEMENT ....................... Appropriation Language Sheet ". Justification of Proposed Language Changes ............. Crosswalk - FY 1995 Budget ...................... Organization Chart ............................ Advisory and Assistance Services ................... Activity: Outer Continental Shelf Lands ............. Leasing and Environmental Program ............ Environmental Studies ....... ..... Justification of Program Change Environmental Studies Increase. Environmental Assessment ............. Justification of Program Change Offshore Downsizing ....... Resource Evaluation Program ................. Justification of Program Change Offshore Downsizing ....... .................. Regulatory Program ...................... ................ 86 Regulation of Operations ............... ................. 87 Justification of Program Change Offshore Downsizing ....... ...... .......... 99 Technology Assesmet and Research ....... .... ... ...... ... 101 Justification of Program Change Offshore Downsizing ....... ................ 105 Oil and Gas Information ............... ................ 106 Justification of Program Change Offshore Downsizing ....... ................ 107 Information Management Program .............. ................ 108 Justification of Program Change Offshore Downsizing ....... ..... 114 Activity: Royalty Management.................................... 115 Operations . ............................................ 122 Justification of Program Changes Hardrock Royalty Collection .................. 142 Decrease to Accommodate Changing Program Needs ...................... 143 Ccmpliance .............................................. 144 Justification of Program Changes Contract Settlements ....................... 162 Hardrock Royalty Collection .................. 162 Other Revenue Enhancements .................. 163 Decrease to Accommodate Changing Program Needs ...................... 164 417 Audit . ... .. .... ........ ..... 165 Justification of Program Changes Contract Setlements ....................... 171 Other Revenue Enhancements (Random Company Audits) ........................... 172 Transfer to Office of Solicitor ................. 172 Decrease to Accommocdate Changing Program Nee ......................e 172 Interet of Late D isbursumnn................................ 173 Refunds on Behalf of Allottees.................................. 174 Activity: General Ad.int.rato ......................... .......... 175 Execudve Direction ............................. .......... 177 Justification of Program (langus Decrease to Accommodate Changing Program Needs ...................... 178 Policy and Management Improvement ......... .................. 180 Justification of Program Chage Contract Settlement ...... .................. 183 Justification of Program Change Offshore Downsizing ..... .................. 186 Administrative Opratki ................. .................. 188 Justification of Program Change Offshore Downsizing ..... .................. 194 Contract Settlement ...... .................. 199 Offshore Downsizing ..... .................. 199 Decrease to Accommodate Changing Program Need ............ .......... 200 General Support Services ......................... .......... 201 Exhibits: ROMM Program and Financing. ............................... .......... 203 Summary of Requiements by Object Class ................... .. ......... 204 Otject Classifcation ................................. .......... 205 PesnnKM Summary .................................. .......... 206 Employee Count by Grade ............................. .......... 207 418 App'rqiasfm: Oil Spill Rm l ...................................... 209 Jutification of Program Change Oil Spill Rm rch ......................... 214 Exhibits: Oil Spill RImerda Program and Finawnc ......................................... 217 Persomis Summary ............................................ 218 Object Classification ........................................... 219 Pemmut Apcpuatiow ............................................ 221 Summary 1993 ............................................ 223 Sum-sary 1994 ........................................... 224 Summary 1995 ............................................ 225 Receipts ....................................................... 227 Contract Setlements and Othr Revenue 'hc : ................ 227 Hardrock Royalties ......................................... 227 FY 1994 Estimates vs. FY 1995 Estimates ........................ 238 Summary Description - Federal OCS Leases ....................... 245 Exphantim of Authriing Sttute ...................................... 247 Table of Abbreviwtios and Acrnyn...................................... 253 419 General Statemewnt GENERAL STATEMENT The Minerals Managemint Service (MMS) hastwo major responsibilities: timely and accurate collection, distribution, accoemtiag for and auditing of revenues owed by holders of mineral leaes on Federal onshore and offshore and Indian lands; and nmageamet of energy and mineral resources on the Nation's Oute4r Continental Shelf. Theseresponsibilities as carried out under the provisions of the Federal Oil and Gas Royalty Management Act, the Mineral Iasin Act, the Iadian Mineral Leain Acts, the Outer Continental Shelf (OCS) Lands Act, the Oil Pollutiou Act of 1990, andother related stute. The various authoizing statutes are li in the appropra mabactivity section and described in gmater detail in t Statutes section. For the reader's cnvenimece, a listing of abbreviations is provided at the and of this justification document. Comparison of FY 199S Request with FY 1994 Enacted (Doiars In dwwaxd) FY 1994 Enacted FY 1995 Change Appropriad"oaL to Date Request from 1994 Current- Royalty and Offshm Minerals $ 193,197 194,793 1,596 Management FrE 1,928 1,852 -76 Oil Spill Research $ 5,331 6,452 1,121 FTE 10 26 +16 SubloMi Cumnw $ 198,528 201,245 2,717 FTE 1,938 1,878 -60 Pennaxet Mineral Lasing & Associated Paymeet $ 530,596 514,628 -15,968 Payments to State from Acquired ForestLmn $ 2,143 2,151 +8 Payments to States from Flood Control Act Ian $ 2,854 2,834 -20 Suatbier, Poerussel $ 535,593 519,613 -15,980 TOTAL, MMS $ 734,121 720,858 -13,263 FTE 1,938 1,878 -60 MISSION STATEMENTS Royalty and Offsbore WMnak Managenent:- The MMS' primary responsibilities are to managethe mineral resources located on the Nation's OCS, colle revenue from the Federal OCS and onshore Federal and Indian lands, and distribute royalties. 4 Moreover, in woring to meet its responsibilities, the Offshore Minerals Management Program administers the OCS competitive leasing program and overseas the safe and environmentally MMS - I 420 General Statement mmd exploration and production of our nation's offhar natural gas, oil and oter mineral * The Rtoyky Maagameav Pro~gram meet its responsibilities by ensuring the efficiast. timely ad ccmra collection ad disuranea of ravanaue from mieral hWung and production due, according to law, to Indian tribes and allotte. States, and U.S. Tresuuy. O0 Spill Rinssa * To perform reseair related to the mitigation and prevastion of oil spila; civil penalty ollectim; the determination of the financial reqon ability of OCS facilities; and, for State costa wMars. the resqonsibility for inspections, oil wil and prevention plan review, and amring financial integity of operators, as authorized by the Oil Pollution Act of 1990. * The MMS strives to fulfill its responsibilitis through the general principles of: 1) being raqwsave so the public's concerns ad interest by maintaining a dialogue with all potentially affected paties; ad 2) crying out its programs with emphasis n working to ahance the qual of life fbr all Americain by lending MMS sistance and expertise fore development and environmental protection. The MMS will adhere to these principles in the eapmanion of its responsibilities into State coastal waters called for in the OPA 1990. MW" Leing and Amed" Phyment, Pambs to SWas trw Atud Fores Land, Playnt to Sta" from Flood Contro Ad Lands;' * To provide Stales with a satutoy dae of bonua, rants, royalties and interest collected by th Pderal Government for minerals poduced from onshore Federal linda. The progmaw and missions of the MMS are conducted by the major components shown in the orgaational chart on pge 21. MM4S - 2 421 General stwe nt HIGHLIGHTS OF FY 1 REQUEST Unctrollabe Changes A net decraw of $ 2.443 million and 41 FFE from the FY 1994 nadled level will eMable MMS to maet the Administration's ga of reducing Federal positions and streamlining GoveMMut opMaions, II well a increased pay and oe fixed com while maintaining a high level of proam integrity and performance. Uncontrollable changes ae discuased in detail in the Justification of Uncontrollable Coa Changes (page 18). Human Rseocs Management Stremlining In 1995, the Depatment proposes to reManize its human resource management functions in lins with the reomedao of the National Performnce Review (NPR) for human resource management (HRM), which stress mor delegation