U.S. Department of the Interior

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The Extractive Industries Transparency Initiative (EITI)

Interagency Open Government Working Group

November 9, 2011

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What is EITI?

• British Prime Minister Tony Blair launched the Extractive Industries Transparency Initiative in 2002

• Thirty-five countries are in various stages of implementing EITI

• Government and industry make parallel public disclosures of revenues paid and received for extraction of oil, gas, and minerals

• Government, industry and civil society implement EITI through a voluntary, consensus-based process

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Benefits of U.S. Implementation

• Delivers a more transparent, participatory, and collaborative government

• Quantifies the value of industry contributions to the US government

• Ensures the full and fair return to the American people for the utilization of its public resources

• Strengthens relationships among the US government, industry and civil society

• US leads by example and sets the tone internationally for both the Open Government Partnership and EITI

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Key U.S. Milestones/Events

• September 20, 2011 – President Obama announced the U.S. intention to implement EITI as a signature initiative under the US Open Government Plan

• October 25, 2011 – President Obama announced that the Secretary of the Interior Ken Salazar would lead the U.S. effort to implement EITI

• October 25, 2011 - Secretary Salazar committed to work with civil society, industry, and the American public to implement EITI

Completes the first 3 EITI candidacy requirements

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USEITI Implementation

• Department of the Interior to lead USEITI for the USG• The Office of Natural Resource Revenue (ONRR) at Interior

to play a key role:– ONNR manages all revenues associated with federal offshore and

onshore mineral leases, one of the federal government's greatest sources of non-tax revenues

– ONRR was recently moved from the former Minerals Management Service to the Offices of Policy, Management and Budget, creating independence from leasing and environmental regulation functions

– ONRR works collaboratively with Bureaus of Ocean Energy Management, Land Management, and Indian Affairs and others

– ONRR’s Mission: Ensure the full and fair return to the American people of federal and Indian royalties and other monies owed for the utilization of public resources in the production of conventional and renewable energy and mineral resources.

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Synergy with Ongoing ONRR Reforms

ONRR is well positioned to assume a new role with EITI:

• ONRR has completed a strategic, comprehensive review– Considered new ideas in revenue management and regulation from across the

globe as well as sharing internal best practices– Identified opportunities for improvement– Collaborated with the full workforce to capture the best ideas, conviction and

enthusiasm– Involved the entire leadership team, both career and political

• Sustainable foundation for transparent and collaborative management– “The biggest turnaround I have ever seen in a Federal agency.” (independent

reviewer)– Clarified mission and strategy – Targeted and prioritized improvement initiatives including next-generation

approaches to driving compliance– Improved organizational effectiveness and employee engagement– Established ongoing process for strategic management and continuous

improvement

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The Path Forward

USG Short-term Goal: “Listen and Learn”• Build on momentum of Presidential announcements• Prepare for the establishment of a multi-stakeholder group

which will apply for candidacy and implement EITI

USG Next Steps• DOI to staff up and lead USG efforts• USG team of the White House, the Departments of the

Interior, State and Treasury to coordinate USEITI efforts• USG team to initiate formal outreach with industry and civil

society to foster relationships and seek initial input• USG team to meet with EITI Secretariat, Board members and

other EITI countries to seek guidance and lessons learned