GAO suggests more third-party verification of MMS RIK production The US Minerals Management Service could improve oversight of its oil and gas royalty-in-kind (RIK) program by verifying more production data through third parties and improving reports of benefits and costs, the Government Accountability Office said on Oct. 29. "Under the royalty-in-kind program, MMS's oversight of its natural gas production volumes is less robust than its oversight of oil production volumes. As a result, MMS does not have the same level of assurance that it is collecting the gas royalties it is owed," the congressional government watchdog service added in its report. RIK payments make up a growing share of the oil and gas royalties MMS and the US Bureau of Land Management generate, according to GAO. About 58% of the $9.74 billion in royalty payments received in fiscal 2006 were in-value (cash) while 42% were in-kind, it said. MMS takes the oil or gas it receives as an in-kind royalty and sells it on the open market. The agency has said the program increases revenue, improves efficiency, and shortens the compliance cycle....