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Department of the Interior

Departmental Manual

Effective Date: 12/9/96

Series: Organization

Part 118: Minerals Management Service

Chapter 1: Creation, Objectives, and Functions

Originating Office: Minerals Management Service

118 DM 1

1.1 Creation. On January 19, 1982, by Secretarial Order No. 3071, the Minerals Management Service (MMS) was established under the authority provided by Section 2 of Reorganization Plan No. 3 of 1950 (65 Stat. 1262). On May 10, 1982, by Secretarial Order No. 3071, Amendment No. 1, all Outer Continental Shelf (OCS) leasing responsibilities of the Department of the Interior were consolidated within MMS under the authority provided by Section 2 of Reorganization Plan No. 3 of 1950. Amendment No. 2, dated May 26, 1982, set forth the basic organizational structure for MMS and provided for the transfer of administrative functions. Secretarial Order No. 3087 dated December 3, 1982, and Amendment No. 1, dated February 7, 1983, provided for the transfer of royalty and mineral revenue management functions, including collection and distribution within the Bureau of Land Management, to MMS. It also provided for the transfer of all onshore minerals management functions on Federal and Indian lands to be transferred to the Bureau of Land Management.

1.2 Authorities. The basic responsibilities of MMS are derived from Departmental regulations and delegations of authority issued to implement various statutes, including the Mineral Leasing Act of February 25, 1920 (41 Stat. 437), as amended and supplemented (30 U.S.C. 181-287); the Mineral Leasing Act for Acquired Lands, as amended (30 U.S.C. 351-359); Section 402, Reorganization Plan No. 3 of 1946 (60 Stat. 1099); the OCS Lands Act, as amended (43 U.S.C. 1331-1356); the Clean Air Act (42 U.S.C. 7401, et seq.); the Oil Pollution Act of 1990 (33 U.S.C. 2701, et seq.); the Geothermal Steam Act of 1970 (30 U.S.C. 1001-1025); the Tribal Lands Leasing Act (25 U.S.C. 396a); the Allotted Lands Indian Leasing Act (25 U.S.C. 396); and the Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1701 et seq.).

1.3 Objectives and Functions. The MMS is responsible for managing the mineral resources on the OCS in an environmentally sound and safe manner and to timely collect, verify, and distribute mineral revenues from Federal and Indian lands.

A. The MMS assesses the nature, extent, recoverability and value of leasable minerals on the OCS. It ensures the orderly and timely inventory and development--as well as the efficient recovery--of mineral resources; encourages use of the best available and safest technology; provides for fair, full, and accurate returns to the Federal Treasury for produced commodities; and safeguards against fraud, waste, and abuse. The MMS ensures the protection of life, health, and the natural environment in the course of private sector activities on leased Federal OCS lands. It promotes cooperative relationships between the Federal Government, the States, and Indian feeholders, with respect to national, regional, or local issues related to the full scope of its responsibility.

B. The operations of MMS support a number of national goals and objectives. National security interests are promoted by encouraging the exploration for and development of domestic resources, while economic growth is strengthened by the stimulation of private sector participation and, in turn, employment.

1.4 Reporting Relationships. The MMS reports to the Assistant Secretary - Land and Minerals Management.

12/9/96 #3102

Replaces 10/23/92 #2960

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