The federal government on Monday launched a global review of how much money energy companies pay to extract oil and gas from public lands in a step that could lead to higher royalties for drilling on U.S. property. The survey is designed to help government officials decide whether current leasing policies provide what Interior Secretary Ken Salazar has repeatedly called 'a fair return for the American taxpayer.' Currently, the federal government collects royalties of around 12.5 percent for onshore leases. That royalty rate is 'the same . . . fee that's been in place since 1920,' Salazar told a Senate committee in March. He noted that in some states, such is Texas, the rate is at least 20 percent. 'There is room for economic analysis to make sure that we're getting it right here,' Salazar said. In announcing the world-wide royalty study, Bob Abbey, director of the Interior Department's Bureau of Land Management, said the survey 'will provide some common-sense grounds for comparison as we evaluate our royalty rates and our oil and gas fiscal policies in the context of global markets.' A 2008 report by the Government Accountability Office of Congress suggested that the return from federal oil and gas leases is lower than what foreign owners receive, noted Liz Birnbaumm, director of the department's Minerals Management Service. Although Salazar has focused on the royalty rate for drilling on public lands, the study will also examine what producers pay around the globe for drilling in offshore waters. To drill offshore, energy companies now compete in staged lease sales, by first making up-front cash payments called bonus bids. The producers also are responsible for paying an average royalty rate of 12.5 percent to 16.7 percent. Salazar has said he is considering a series of changes that could include royalty rate boosts and shorter lease lengths. Some lawmakers have suggested the federal government impose 'use-it-or-lose-it' style fees on non-producing leases to encourage quicker development. The Interior Department said it expected the study to take nine months to complete, once it is contracted. (Jennifer A. Dlouhy can be reached at 202-263-6400 or at the e-mail address jdlouhy(a)hearstdc.com) 