US (United States) Code. Title 30. Chapter 29: Oil and gas royalty management

Codificación normativa de EEUU (Estados Unidos) Legislación Federal estadounidense # Mineral lands and mining

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-CITE-

30 USC CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

-HEAD-

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

-MISC1-

Sec.

1701. Congressional statement of findings and purposes.

1702. Definitions.

SUBCHAPTER I - FEDERAL ROYALTY MANAGEMENT AND ENFORCEMENT

1711. Duties of Secretary.

(a) Establishment of inspection, collection, and

accounting and auditing system.

(b) Annual inspection of lease sites; training.

(c) Audit and reconciliation of lease accounts;

contracts with certified public accountants;

availability of books, accounts, records,

etc., necessary for audit.

1712. Duties of lessees, operators, and motor vehicle

transporters.

(a) Liability for royalty payments.

(b) Development of and compliance with site

security plan and minimum site security

measures by operators; notification to

Secretary of well production.

(c) Possession of documentation by transporters of

oil or gas by motor vehicle or pipeline.

1713. Required recordkeeping.

(a) Maintenance and availability of records,

reports, and information for inspection and

duplication.

(b) Length of time maintenance required.

1714. Deposit of royalty funds to Indian accounts.

1715. Explanation of payments.

(a) Description, period, source, etc., of payments

to States or Indians.

(b) Effective date.

1716. Liabilities and bonding.

1717. Hearings and investigations.

(a) Authorization; affidavits, oaths, subpenas,

testimony, and payment of witnesses.

(b) Refusal to obey subpena.

1718. Inspections.

(a) Motor vehicles on lease sites; vehicles not on

lease site.

(b) Inspection of lease sites for compliance with

mineral leasing laws and this chapter.

(c) Right of Secretary to enter upon and travel

across lease sites.

1719. Civil penalties.

(a) Failure to comply with applicable law, to

permit inspection, or to notify Secretary of

assignment; exceptions to application of

penalty.

(b) Failure to take corrective action.

(c) Failure to make royalty payment; failure to

permit lawful entry, inspection, or audit;

failure to notify Secretary of well

production.

(d) False information; unauthorized removal, etc.,

of oil or gas; purchase, sale, etc., of stolen

oil or gas.

(e) Hearing.

(f) Deduction of penalty from sums owed by United

States.

(g) Compromise or reduction of penalties.

(h) Notice.

(i) Reasons on record for amount of penalty.

(j) Review.

(k) Failure to pay penalty.

(l) Nonliability for leases automatically

terminated.

1720. Criminal penalties.

1721. Royalty terms and conditions, interest, and penalties.

(a) Charge on late royalty payment or royalty

payment deficiency.

(b) Charge on late payment made by Secretary to

States.

(c) Deposit in royalty accounts of charges on

royalties due and owing Indians.

(d) Charge on late deposit of royalty fund to an

Indian account.

(e) Nonliability of States for Secretary's failure

to comply with the Emergency Petroleum

Allocation Act of 1973 or regulations

thereunder.

(f) Limitation on interest charged.

(g) Omitted.

(h) Lessee or designee interest.

(i) Limitation on interest.

(j) Estimated payment.

(k) Volume allocation of oil and gas production.

(l) Production allocation.

1721a. Adjustments and refunds.

(a) Adjustments to royalties paid to Secretary or

delegated State.

(b) Refunds.

1722. Injunction and specific enforcement authority.

(a) Civil action by Attorney General.

(b) Venue.

1723. Rewards.

1724. Secretarial and delegated States' actions and

limitation periods.

(a) In general.

(b) Limitation period.

(c) Obligation becomes due.

(d) Tolling of limitation period.

(e) Termination of limitations period.

(f) Records required for determining collections.

(g) Timely collections.

(h) Appeals and final agency action.

(i) Collections of disputed amounts due.

(j) Enforcement of claim for judicial review.

(k) Implementation of final decision.

(l) Stay of payment obligation pending review.

1725. Assessments.

1726. Alternatives for marginal properties.

(a) Determination of best interests of State

concerned and United States.

(b) Prepayment of royalty.

(c) Alternative accounting and auditing

requirements.

SUBCHAPTER II - STATES AND INDIAN TRIBES

1731. Application of subchapter.

1731a. Application of subchapter to leases of lands within

three miles of seaward boundaries of coastal States.

1732. Cooperative agreements.

(a) Authorization of Secretary; permission of

Indian tribe required for activities on Indian

lands.

(b) Access to royalty accounting information.

(c) Agreements in accordance with chapter 63 of

title 31; terms and conditions.

1733. Information.

(a) Availability of confidential information by

Secretary pursuant to cooperative agreements;

conditions.

(b) Nonliability of United States for wrongful

disclosure.

(c) Law governing disclosure.

1734. State suits under Federal law.

(a) Action for royalty, interest, or civil penalty;

limitations; notice of suit; award of costs

and fees.

(b) Venue; jurisdiction of district court.

(c) Recovery of civil penalty by State; deposit of

rent, royalty, or interest recovery in

Treasury of the United States.

1735. Delegation of royalty collections and related

activities.

(a) Authorization of Secretary.

(b) Prerequisites.

(c) Ruling as to consistency of State's proposal.

(d) Promulgation of standards and regulations with

respect to delegation.

(e) Revocation; issuance of demand or order by

Secretary.

(f) Compensation to State for costs of delegation;

allocation of costs.

(g) Judicial review.

(h) Existing delegation.

1736. Shared civil penalties.

SUBCHAPTER III - GENERAL PROVISIONS

1751. Secretarial authority.

(a) Prescription of rules and regulations.

(b) Conformity with rulemaking provisions.

(c) Contracts with non-Federal Government

inspectors, auditors, etc.; coordination of

auditing and enforcement functions.

1752. Reports.

1753. Relation to other laws.

(a) Supplemental nature of chapter.

(b) Responsibilities of Secretary related to

minerals on Federal and Indian lands.

(c) Authority and responsibilities of Inspector

General and Comptroller General unaffected.

(d) Lands and land interests entrusted to Tennessee

Valley Authority unaffected.

1754. Funding.

1755. Statute of limitations.

1756. Expanded royalty obligations.

1757. Severability.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in section 191 of this title; title

10 section 7439.

-End-

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30 USC Sec. 1701 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

-HEAD-

Sec. 1701. Congressional statement of findings and purposes

-STATUTE-

(a) Congress finds that -

(1) the Secretary of the Interior should enforce effectively

and uniformly existing regulations under the mineral leasing laws

providing for the inspection of production activities on lease

sites on Federal and Indian lands;

(2) the system of accounting with respect to royalties and

other payments due and owing on oil and gas produced from such

lease sites is archaic and inadequate;

(3) it is essential that the Secretary initiate procedures to

improve methods of accounting for such royalties and payments and

to provide for routine inspection of activities related to the

production of oil and gas on such lease sites; and

(4) the Secretary should aggressively carry out his trust

responsibility in the administration of Indian oil and gas.

(b) It is the purpose of this chapter -

(1) to clarify, reaffirm, expand, and define the

responsibilities and obligations of lessees, operators, and other

persons involved in transportation or sale of oil and gas from

the Federal and Indian lands and the Outer Continental Shelf;

(2) to clarify, reaffirm, expand and define the authorities and

responsibilities of the Secretary of the Interior to implement

and maintain a royalty management system for oil and gas leases

on Federal lands, Indian lands, and the Outer Continental Shelf;

(3) to require the development of enforcement practices that

ensure the prompt and proper collection and disbursement of oil

and gas revenues owed to the United States and Indian lessors and

those inuring to the benefit of States;

(4) to fulfill the trust responsibility of the United States

for the administration of Indian oil and gas resources; and

(5) to effectively utilize the capabilities of the States and

Indian tribes in developing and maintaining an efficient and

effective Federal royalty management system.

-SOURCE-

(Pub. L. 97-451, Sec. 2, Jan. 12, 1983, 96 Stat. 2448.)

-MISC1-

EFFECTIVE DATE OF 1996 AMENDMENT

Pub. L. 104-185, Sec. 11, Aug. 13, 1996, 110 Stat. 1717, provided

that: "Except as provided by section 115(h) [30 U.S.C. 1724(h)],

section 111(h) [30 U.S.C. 1721(h)], section 111(k)(5) [30 U.S.C.

1721(k)(5)], and section 117 [30 U.S.C. 1726] of the Federal Oil

and Gas Royalty Management Act of 1982 (as added by this Act), this

Act [see Short Title of 1996 Amendment note below], and the

amendments made by this Act, shall apply with respect to the

production of oil and gas after the first day of the month

following the date of the enactment of this Act [Aug. 13, 1996]."

EFFECTIVE DATE

Section 305 of Pub. L. 97-451 provided that: "The provisions of

this Act [enacting this chapter, amending sections 188 and 191 of

this title, and enacting provisions set out as notes under this

section and sections 1714 and 1752 of this title] shall apply to

oil and gas leases issued before, on, or after the date of the

enactment of this Act [Jan. 12, 1983], except that in the case of a

lease issued before such date, no provision of this Act or any rule

or regulation prescribed under this Act shall alter the express and

specific provisions of such a lease."

SHORT TITLE OF 1996 AMENDMENT

Pub. L. 104-185, Sec. 1, Aug. 13, 1996, 110 Stat. 1700, provided

that: "This Act [enacting sections 1721a and 1724 to 1726 of this

title, amending sections 1702, 1712, 1721, and 1735 of this title,

repealing section 1339 of Title 43, Public Lands, and enacting

provisions set out as notes under this section, section 1732 of

this title, and section 1339 of Title 43] may be cited as the

'Federal Oil and Gas Royalty Simplification and Fairness Act of

1996'."

SHORT TITLE

Section 1 of Pub. L. 97-451 provided that: "This Act [enacting

this chapter, amending sections 188 and 191 of this title, and

enacting provisions set out as notes under this section and

sections 1714 and 1752 of this title] may be cited as the 'Federal

Oil and Gas Royalty Management Act of 1982'."

APPLICABILITY OF 1996 AMENDMENT

Pub. L. 104-185, Sec. 9, Aug. 13, 1996, 110 Stat. 1717, provided

that: "The amendments made by this Act [see Short Title of 1996

Amendment note above] shall not apply with respect to Indian lands,

and the provisions of the Federal Oil and Gas Royalty Management

Act of 1982 [30 U.S.C. 1701 et seq.] as in effect on the day before

the date of enactment of this Act [Aug. 13, 1996] shall continue to

apply after such date with respect to Indian lands."

Pub. L. 104-185, Sec. 10, Aug. 13, 1996, 110 Stat. 1717, provided

that: "This Act [see Short Title of 1996 Amendment note above]

shall not apply to any privately owned minerals."

CONSTRUCTION OF 1996 AMENDMENT

Pub. L. 104-185, Sec. 12, Aug. 13, 1996, 110 Stat. 1717, provided

that: "Nothing in this Act [see Short Title of 1996 Amendment note

above] shall be construed to give a State a property right or

interest in any Federal lease or land."

-End-

-CITE-

30 USC Sec. 1702 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

-HEAD-

Sec. 1702. Definitions

-STATUTE-

For the purposes of this chapter, the term -

(1) "Federal land" means all land and interests in land owned

by the United States which are subject to the mineral leasing

laws, including mineral resources or mineral estates reserved to

the United States in the conveyance of a surface or nonmineral

estate;

(2) "Indian allottee" means any Indian for whom land or an

interest in land is held in trust by the United States or who

holds title subject to Federal restriction against alienation;

(3) "Indian lands" means any lands or interest in lands of an

Indian tribe or an Indian allottee held in trust by the United

States or which is subject to Federal restriction against

alienation or which is administered by the United States pursuant

to section 1613(g) of title 43, including mineral resources and

mineral estates reserved to an Indian tribe or an Indian allottee

in the conveyance of a surface or nonmineral estate, except that

such term does not include any lands subject to the provisions of

section 3 of the Act of June 28, 1906 (34 Stat. 539);

(4) "Indian tribe" means any Indian tribe, band, nation,

pueblo, community, rancheria, colony, or other group of Indians,

including the Metlakatla Indian Community of Annette Island

Reserve, for which any land or interest in land is held by the

United States in trust or which is subject to Federal restriction

against alienation or which is administered by the United States

pursuant to section 1613(g) of title 43;

(5) "lease" means any contract, profit-share arrangement, joint

venture, or other agreement issued or approved by the United

States under a mineral leasing law that authorizes exploration

for, extraction of, or removal of oil or gas;

(6) "lease site" means any lands or submerged lands, including

the surface of a severed mineral estate, on which exploration

for, or extraction or removal of, oil or gas is authorized

pursuant to a lease;

(7) "lessee" means any person to whom the United States issues

an oil and gas lease or any person to whom operating rights in a

lease have been assigned;

(8) "mineral leasing law" means any Federal law administered by

the Secretary authorizing the disposition under lease of oil or

gas;

(9) "oil or gas" means any oil or gas originating from, or

allocated to, the Outer Continental Shelf, Federal, or Indian

lands;

(10) "Outer Continental Shelf" has the same meaning as provided

in the Outer Continental Shelf Lands Act (Public Law 95-372);

(11) "operator" means any person, including a lessee, who has

control of, or who manages operations on, an oil and gas lease

site on Federal or Indian lands or on the Outer Continental

Shelf;

(12) "person" means any individual, firm, corporation,

association, partnership, consortium, or joint venture;

(13) "production" means those activities which take place for

the removal of oil or gas, including such removal, field

operations, transfer of oil or gas off the lease site, operation

monitoring, maintenance, and workover drilling;

(14) "royalty" means any payment based on the value or volume

of production which is due to the United States or an Indian

tribe or an Indian allottee on production of oil or gas from the

Outer Continental Shelf, Federal, or Indian lands, or any minimum

royalty owed to the United States or an Indian tribe or an Indian

allottee under any provision of a lease;

(15) "Secretary" means the Secretary of the Interior or his

designee;

(16) "State" means the several States of the Union, the

District of Columbia, Puerto Rico, the territories and

possessions of the United States, and the Trust Territory of the

Pacific Islands;

(17) "adjustment" means an amendment to a previously filed

report on an obligation, and any additional payment or credit, if

any, applicable thereto, to rectify an underpayment or

overpayment on an obligation;

(18) "administrative proceeding" means any Department of the

Interior agency process in which a demand, decision or order

issued by the Secretary or a delegated State is subject to appeal

or has been appealed;

(19) "assessment" means any fee or charge levied or imposed by

the Secretary or a delegated State other than -

(A) the principal amount of any royalty, minimum royalty,

rental bonus, net profit share or proceed of sale;

(B) any interest; or

(C) any civil or criminal penalty;

(20) "commence" means -

(A) with respect to a judicial proceeding, the service of a

complaint, petition, counterclaim, cross claim, or other

pleading seeking affirmative relief or seeking credit or

recoupment: Provided, That if the Secretary commences a

judicial proceeding against a designee, the Secretary shall

give notice of that commencement to the lessee who designated

the designee, but the Secretary is not required to give notice

to other lessees who may be liable pursuant to section 1712(a)

of this title, for the obligation that is the subject of the

judicial proceeding; or

(B) with respect to a demand, the receipt by the Secretary or

a delegated State or a lessee or its designee (with written

notice to the lessee who designated the designee) of the

demand;

(21) "credit" means the application of an overpayment (in whole

or in part) against an obligation which has become due to

discharge, cancel or reduce the obligation;

(22) "delegated State" means a State which, pursuant to an

agreement or agreements under section 1735 of this title,

performs authorities, duties, responsibilities, or activities of

the Secretary;

(23) "demand" means -

(A) an order to pay issued by the Secretary or the applicable

delegated State to a lessee or its designee (with written

notice to the lessee who designated the designee) that has a

reasonable basis to conclude that the obligation in the amount

of the demand is due and owing; or

(B) a separate written request by a lessee or its designee

which asserts an obligation due the lessee or its designee that

provides a reasonable basis to conclude that the obligation in

the amount of the demand is due and owing, but does not mean

any royalty or production report, or any information contained

therein, required by the Secretary or a delegated State;

(24) "designee" means the person designated by a lessee

pursuant to section 1712(a) of this title, with such written

designation effective on the date such designation is received by

the Secretary and remaining in effect until the Secretary

receives notice in writing that the designation is modified or

terminated;

(25) "obligation" means -

(A) any duty of the Secretary or, if applicable, a delegated

State -

(i) to take oil or gas royalty in kind; or

(ii) to pay, refund, offset, or credit monies including

(but not limited to) -

(I) the principal amount of any royalty, minimum royalty,

rental, bonus, net profit share or proceed of sale; or

(II) any interest; and

(B) any duty of a lessee or its designee (subject to the

provisions of section 1712(a) of this title) -

(i) to deliver oil or gas royalty in kind; or

(ii) to pay, offset or credit monies including (but not

limited to) -

(I) the principal amount of any royalty, minimum royalty,

rental, bonus, net profit share or proceed of sale;

(II) any interest;

(III) any penalty; or

(IV) any assessment,

which arises from or relates to any lease administered by the

Secretary for, or any mineral leasing law related to, the

exploration, production and development of oil or gas on

Federal lands or the Outer Continental Shelf;

(26) "order to pay" means a written order issued by the

Secretary or the applicable delegated State to a lessee or its

designee (with notice to the lessee who designated the designee)

which -

(A) asserts a specific, definite, and quantified obligation

claimed to be due, and

(B) specifically identifies the obligation by lease,

production month and monetary amount of such obligation claimed

to be due and ordered to be paid, as well as the reason or

reasons such obligation is claimed to be due, but such term

does not include any other communication or action by or on

behalf of the Secretary or a delegated State;

(27) "overpayment" means any payment by a lessee or its

designee in excess of an amount legally required to be paid on an

obligation and includes the portion of any estimated payment for

a production month that is in excess of the royalties due for

that month;

(28) "payment" means satisfaction, in whole or in part, of an

obligation;

(29) "penalty" means a statutorily authorized civil fine levied

or imposed for a violation of this chapter, any mineral leasing

law, or a term or provision of a lease administered by the

Secretary;

(30) "refund" means the return of an overpayment;

(31) "State concerned" means, with respect to a lease, a State

which receives a portion of royalties or other payments under the

mineral leasing laws from such lease;

(32) "underpayment" means any payment or nonpayment by a lessee

or its designee that is less than the amount legally required to

be paid on an obligation; and

(33) "United States" means the United States Government and any

department, agency, or instrumentality thereof, the several

States, the District of Columbia, and the territories of the

United States.

-SOURCE-

(Pub. L. 97-451, Sec. 3, Jan. 12, 1983, 96 Stat. 2448; Pub. L.

92-203, Sec. 29(f)(1), as added Pub. L. 100-241, Sec. 15, Feb. 3,

1988, 101 Stat. 1813; Pub. L. 104-185, Sec. 2, Aug. 13, 1996, 110

Stat. 1700; Pub. L. 104-200, Sec. 1(1), Sept. 22, 1996, 110 Stat.

2421.)

-REFTEXT-

REFERENCES IN TEXT

Section 3 of the Act of June 28, 1906 (34 Stat. 539), referred to

in par. (3), is not classified to the Code.

"Outer Continental Shelf" as provided in the Outer Continental

Shelf Lands Act (Public Law 95-372), referred to in par. (10), is

defined in section 1331(a) of Title 43, Public Lands.

-MISC1-

AMENDMENTS

1996 - Par. (7). Pub. L. 104-185, Sec. 2(1), amended par. (7)

generally. Prior to amendment, par. (7) read as follows: " 'lessee'

means any person to whom the United States, an Indian tribe, or an

Indian allottee, issues a lease, or any person who has been

assigned an obligation to make royalty or other payments required

by the lease;".

Pars. (17) to (25). Pub. L. 104-185, Sec. 2(2), added pars. (17)

to (25).

Par. (25)(B). Pub. L. 104-200, substituted "provisions of section

1712(a)" for "provision of section 1712(a)" in introductory

provisions.

Pars. (26) to (33). Pub. L. 104-185, Sec. 2(2), added pars. (26)

to (33).

1988 - Pars. (3), (4). Pub. L. 92-203 inserted "or which is

administered by the United States pursuant to section 1613(g) of

title 43" after "alienation".

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by Pub. L. 104-185 applicable with respect to

production of oil and gas after the first day of the month

following Aug. 13, 1996, see section 11 of Pub. L. 104-185, set out

as a note under section 1701 of this title.

EFFECTIVE DATE OF 1988 AMENDMENT

Section 29(f)(2) of Pub. L. 92-203, as added by Pub. L. 100-241,

Sec. 15, Feb. 3, 1988, 101 Stat. 1813, provided that: "The

amendment made by paragraph (1) [amending this section] shall be

effective as if originally included in section 3 of Public Law

97-451 [this section]."

APPLICABILITY OF 1996 AMENDMENT

Amendment by Pub. L. 104-185 not applicable to any privately

owned minerals or with respect to Indian lands, see sections 9 and

10 of Pub. L. 104-185, set out as a note under section 1701 of this

title.

-TRANS-

TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS

For termination of Trust Territory of the Pacific Islands, see

note set out preceding section 1681 of Title 48, Territories and

Insular Possessions.

-End-

-CITE-

30 USC SUBCHAPTER I - FEDERAL ROYALTY MANAGEMENT AND

ENFORCEMENT 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

SUBCHAPTER I - FEDERAL ROYALTY MANAGEMENT AND ENFORCEMENT

-HEAD-

SUBCHAPTER I - FEDERAL ROYALTY MANAGEMENT AND ENFORCEMENT

-End-

-CITE-

30 USC Sec. 1711 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

SUBCHAPTER I - FEDERAL ROYALTY MANAGEMENT AND ENFORCEMENT

-HEAD-

Sec. 1711. Duties of Secretary

-STATUTE-

(a) Establishment of inspection, collection, and accounting and

auditing system

The Secretary shall establish a comprehensive inspection,

collection and fiscal and production accounting and auditing system

to provide the capability to accurately determine oil and gas

royalties, interest, fines, penalties, fees, deposits, and other

payments owed, and to collect and account for such amounts in a

timely manner.

(b) Annual inspection of lease sites; training

The Secretary shall -

(1) establish procedures to ensure that authorized and properly

identified representatives of the Secretary will inspect at least

once annually each lease site producing or expected to produce

significant quantities of oil or gas in any year or which has a

history of noncompliance with applicable provisions of law or

regulations; and

(2) establish and maintain adequate programs providing for the

training of all such authorized representatives in methods and

techniques of inspection and accounting that will be used in the

implementation of this chapter.

(c) Audit and reconciliation of lease accounts; contracts with

certified public accountants; availability of books, accounts,

records, etc., necessary for audit

(1) The Secretary shall audit and reconcile, to the extent

practicable, all current and past lease accounts for leases of oil

or gas and take appropriate actions to make additional collections

or refunds as warranted. The Secretary shall conduct audits and

reconciliations of lease accounts in conformity with the business

practices and recordkeeping systems which were required of the

lessee by the Secretary for the period covered by the audit. The

Secretary shall give priority to auditing those lease accounts

identified by a State or Indian tribe as having significant

potential for underpayment. The Secretary may also audit accounts

and records of selected lessees and operators.

(2) The Secretary may enter into contracts or other appropriate

arrangements with independent certified public accountants to

undertake audits of accounts and records of any lessee or operator

relating to the lease of oil or gas. Selection of such independent

certified public accountants shall be by competitive bidding in

accordance with the Federal Property and Administrative Services

Act of 1949 (!1) (41 U.S.C. 252), except that the Secretary may not

enter into a contract or other arrangement with any independent

certified public accountant to audit any lessee or operator where

such lessee or operator is a primary audit client of such certified

public accountant.

(3) All books, accounts, financial records, reports, files, and

other papers of the Secretary, or used by the Secretary, which are

reasonably necessary to facilitate the audits required under this

section shall be made available to any person or governmental

entity conducting audits under this chapter.

-SOURCE-

(Pub. L. 97-451, title I, Sec. 101, Jan. 12, 1983, 96 Stat. 2449.)

-REFTEXT-

REFERENCES IN TEXT

The Federal Property and Administrative Services Act of 1949,

referred to in subsec. (c)(2), is act June 30, 1949, ch. 288, 63

Stat. 377, as amended. Except for title III of the Act, which is

classified generally to subchapter IV (Sec. 251 et seq.) of chapter

4 of Title 41, Public Contracts, the Act was repealed and reenacted

by Pub. L. 107-217, Secs. 1, 6(b), Aug. 21, 2002, 116 Stat. 1062,

1304, as chapters 1 to 11 of Title 40, Public Buildings, Property,

and Works.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

30 USC Sec. 1712 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

SUBCHAPTER I - FEDERAL ROYALTY MANAGEMENT AND ENFORCEMENT

-HEAD-

Sec. 1712. Duties of lessees, operators, and motor vehicle

transporters

-STATUTE-

(a) Liability for royalty payments

In order to increase receipts and achieve effective collections

of royalty and other payments, a lessee who is required to make any

royalty or other payment under a lease or under the mineral leasing

laws, shall make such payments in the time and manner as may be

specified by the Secretary or the applicable delegated State. A

lessee may designate a person to make all or part of the payments

due under a lease on the lessee's behalf and shall notify the

Secretary or the applicable delegated State in writing of such

designation, in which event said designated person may, in its own

name, pay, offset or credit monies, make adjustments, request and

receive refunds and submit reports with respect to payments

required by the lessee. Notwithstanding any other provision of this

chapter to the contrary, a designee shall not be liable for any

payment obligation under the lease. The person owning operating

rights in a lease shall be primarily liable for its pro rata share

of payment obligations under the lease. If the person owning the

legal record title in a lease is other than the operating rights

owner, the person owning the legal record title shall be

secondarily liable for its pro rata share of such payment

obligations under the lease.

(b) Development of and compliance with site security plan and

minimum site security measures by operators; notification to

Secretary of well production

An operator shall -

(1) develop and comply with a site security plan designed to

protect the oil or gas produced or stored on an onshore lease

site from theft, which plan shall conform with such minimum

standards as the Secretary may prescribe by rule, taking into

account the variety of circumstances at lease sites;

(2) develop and comply with such minimum site security measures

as the Secretary deems appropriate to protect oil or gas produced

or stored on a lease site or on the Outer Continental Shelf from

theft; and

(3) not later than the 5th business day after any well begins

production anywhere on a lease site or allocated to a lease site,

or resumes production in the case of a well which has been off of

production for more than 90 days, notify the Secretary, in the

manner prescribed by the Secretary, of the date on which such

production has begun or resumed.

(c) Possession of documentation by transporters of oil or gas by

motor vehicle or pipeline

(1) Any person engaged in transporting by motor vehicle any oil

from any lease site, or allocated to any such lease site, shall

carry, on his person, in his vehicle, or in his immediate control,

documentation showing, at a minimum, the amount, origin, and

intended first destination of the oil.

(2) Any person engaged in transporting any oil or gas by pipeline

from any lease site, or allocated to any lease site, on Federal or

Indian lands shall maintain documentation showing, at a minimum,

amount, origin, and intended first destination of such oil or gas.

-SOURCE-

(Pub. L. 97-451, title I, Sec. 102, Jan. 12, 1983, 96 Stat. 2450;

Pub. L. 104-185, Sec. 6(g), Aug. 13, 1996, 110 Stat. 1715.)

-MISC1-

AMENDMENTS

1996 - Subsec. (a). Pub. L. 104-185 inserted heading and amended

text generally. Prior to amendment, text read as follows: "A lessee

-

"(1) who is required to make any royalty or other payment under

a lease or under the mineral leasing laws, shall make such

payments in the time and manner as may be specified by the

Secretary; and

"(2) shall notify the Secretary, in the time and manner as may

be specified by the Secretary, of any assignment the lessee may

have made of the obligation to make any royalty or other payment

under a lease or under the mineral leasing laws."

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by Pub. L. 104-185 applicable with respect to the

production of oil and gas after the first day of the month

following Aug. 13, 1996, see section 11 of Pub. L. 104-185, set out

as a note under section 1701 of this title.

APPLICABILITY OF 1996 AMENDMENT

Amendment by Pub. L. 104-185 not applicable to any privately

owned minerals or with respect to Indian lands, see sections 9 and

10 of Pub. L. 104-185, set out as a note under section 1701 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1702, 1719, 1724 of this

title.

-End-

-CITE-

30 USC Sec. 1713 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

SUBCHAPTER I - FEDERAL ROYALTY MANAGEMENT AND ENFORCEMENT

-HEAD-

Sec. 1713. Required recordkeeping

-STATUTE-

(a) Maintenance and availability of records, reports, and

information for inspection and duplication

A lessee, operator, or other person directly involved in

developing, producing, transporting, purchasing, or selling oil or

gas subject to this chapter through the point of first sale or the

point of royalty computation, whichever is later, shall establish

and maintain any records, make any reports, and provide any

information that the Secretary may, by rule, reasonably require for

the purposes of implementing this chapter or determining compliance

with rules or orders under this chapter. Upon the request of any

officer or employee duly designated by the Secretary or any State

or Indian tribe conducting an audit or investigation pursuant to

this chapter, the appropriate records, reports, or information

which may be required by this section shall be made available for

inspection and duplication by such officer or employee, State, or

Indian tribe.

(b) Length of time maintenance required

Records required by the Secretary with respect to oil and gas

leases from Federal or Indian lands or the Outer Continental Shelf

shall be maintained for 6 years after the records are generated

unless the Secretary notifies the record holder that he has

initiated an audit or investigation involving such records and that

such records must be maintained for a longer period. In any case

when an audit or investigation is underway, records shall be

maintained until the Secretary releases the record holder of the

obligation to maintain such records.

-SOURCE-

(Pub. L. 97-451, title I, Sec. 103, Jan. 12, 1983, 96 Stat. 2451.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1724 of this title.

-End-

-CITE-

30 USC Sec. 1714 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

SUBCHAPTER I - FEDERAL ROYALTY MANAGEMENT AND ENFORCEMENT

-HEAD-

Sec. 1714. Deposit of royalty funds to Indian accounts

-STATUTE-

Deposits of any royalty funds derived from the production of oil

or gas from, or allocated to, Indian lands shall be made by the

Secretary to the appropriate Indian account at the earliest

practicable date after such funds are received by the Secretary but

in no case later than the last business day of the month in which

such funds are received.

-SOURCE-

(Pub. L. 97-451, title I, Sec. 104(b), Jan. 12, 1983, 96 Stat.

2452.)

-MISC1-

EFFECTIVE DATE

Section 104(c) of Pub. L. 97-451 provided that: "The provisions

of this section [enacting this section and amending section 191 of

this title] shall apply with respect to payments received by the

Secretary after October 1, 1983, unless the Secretary, by rule,

prescribes an earlier effective date."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1721 of this title.

-End-

-CITE-

30 USC Sec. 1715 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

SUBCHAPTER I - FEDERAL ROYALTY MANAGEMENT AND ENFORCEMENT

-HEAD-

Sec. 1715. Explanation of payments

-STATUTE-

(a) Description, period, source, etc., of payments to States or

Indians

When any payment (including amounts due from receipt of any

royalty, bonus, interest charge, fine, or rental) is made by the

United States to a State with respect to any oil or gas lease on

Federal lands or is deposited in the appropriate Indian account on

behalf of an Indian tribe or Indian allottee with respect to any

oil and gas lease on Indian lands, there shall be provided,

together with such payment, a description of the type of payment

being made, the period covered by such payment, the source of such

payment, production amounts, the royalty rate, unit value and such

other information as may be agreed upon by the Secretary and the

recipient State, Indian tribe, or Indian allottee.

(b) Effective date

This section shall take effect with respect to payments made

after October 1, 1983, unless the Secretary, by rule, prescribes an

earlier effective date.

-SOURCE-

(Pub. L. 97-451, title I, Sec. 105, Jan. 12, 1983, 96 Stat. 2452.)

-End-

-CITE-

30 USC Sec. 1716 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

SUBCHAPTER I - FEDERAL ROYALTY MANAGEMENT AND ENFORCEMENT

-HEAD-

Sec. 1716. Liabilities and bonding

-STATUTE-

A person (including any agent or employee of the United States

and any independent contractor) authorized to collect, receive,

account for, or otherwise handle any moneys payable to, or received

by, the Department of the Interior which are derived from the sale,

lease, or other disposal of any oil or gas shall be -

(1) liable to the United States for any losses caused by any

intentional or reckless action or inaction of such individual

with respect to such moneys; and

(2) in the case of an independent contractor, required as the

Secretary deems necessary to maintain a bond commensurate with

the amount of money for which such individual could be liable to

the United States.

-SOURCE-

(Pub. L. 97-451, title I, Sec. 106, Jan. 12, 1983, 96 Stat. 2452.)

-End-

-CITE-

30 USC Sec. 1717 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

SUBCHAPTER I - FEDERAL ROYALTY MANAGEMENT AND ENFORCEMENT

-HEAD-

Sec. 1717. Hearings and investigations

-STATUTE-

(a) Authorization; affidavits, oaths, subpenas, testimony, and

payment of witnesses

In carrying out his duties under this chapter the Secretary may

conduct any investigation or other inquiry necessary and

appropriate and may conduct, after notice, any hearing or audit,

necessary and appropriate to carrying out his duties under this

chapter. In connection with any such hearings, inquiry,

investigation, or audit, the Secretary is also authorized where

reasonably necessary -

(1) to require by special or general order, any person to

submit in writing such affidavits and answers to questions as the

Secretary may reasonably prescribe, which submission shall be

made within such reasonable period and under oath or otherwise,

as may be necessary;

(2) to administer oaths;

(3) to require by subpena the attendance and testimony of

witnesses and the production of all books, papers, production and

financial records, documents, matter, and materials, as the

Secretary may request;

(4) to order testimony to be taken by deposition before any

person who is designated by the Secretary and who has the power

to administer oaths, and to compel testimony and the production

of evidence in the same manner as authorized under paragraph (3)

of this subsection; and

(5) to pay witnesses the same fees and mileage as are paid in

like circumstances in the courts of the United States.

(b) Refusal to obey subpena

In case of refusal to obey a subpena served upon any person under

this section, the district court of the United States for any

district in which such person is found, resides, or transacts

business, upon application by the Attorney General at the request

of the Secretary and after notice to such person, shall have

jurisdiction to issue an order requiring such person to appear and

give testimony before the Secretary or to appear and produce

documents before the Secretary. Any failure to obey such order of

the court may be punished by such court as contempt thereof and

subject to a penalty of up to $10,000 a day.

-SOURCE-

(Pub. L. 97-451, title I, Sec. 107, Jan. 12, 1983, 96 Stat. 2452.)

-End-

-CITE-

30 USC Sec. 1718 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

SUBCHAPTER I - FEDERAL ROYALTY MANAGEMENT AND ENFORCEMENT

-HEAD-

Sec. 1718. Inspections

-STATUTE-

(a) Motor vehicles on lease sites; vehicles not on lease site

(1) On any lease site on Federal or Indian lands, any authorized

and properly identified representative of the Secretary may stop

and inspect any motor vehicle that he has probable cause to believe

is carrying oil from a lease site on Federal or Indian lands or

allocated to such a lease site, for the purpose of determining

whether the driver of such vehicle has documentation related to

such oil as required by law.

(2) Any authorized and properly identified representative of the

Secretary, accompanied by any appropriate law enforcement officer,

or an appropriate law enforcement officer alone, may stop and

inspect any motor vehicle which is not on a lease site if he has

probable cause to believe the vehicle is carrying oil from a lease

site on Federal or Indian lands or allocated to such a lease site.

Such inspection shall be for the purpose of determining whether the

driver of such vehicle has the documentation required by law.

(b) Inspection of lease sites for compliance with mineral leasing

laws and this chapter

Authorized and properly identified representatives of the

Secretary may without advance notice, enter upon, travel across and

inspect lease sites on Federal or Indian lands and may obtain from

the operator immediate access to secured facilities on such lease

sites, for the purpose of making any inspection or investigation

for determining whether there is compliance with the requirements

of the mineral leasing laws and this chapter. The Secretary shall

develop guidelines setting forth the coverage and the frequency of

such inspections.

(c) Right of Secretary to enter upon and travel across lease sites

For the purpose of making any inspection or investigation under

this chapter, the Secretary shall have the same right to enter upon

or travel across any lease site as the lessee or operator has

acquired by purchase, condemnation, or otherwise.

-SOURCE-

(Pub. L. 97-451, title I, Sec. 108, Jan. 12, 1983, 96 Stat. 2453.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1719, 1732 of this title.

-End-

-CITE-

30 USC Sec. 1719 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

SUBCHAPTER I - FEDERAL ROYALTY MANAGEMENT AND ENFORCEMENT

-HEAD-

Sec. 1719. Civil penalties

-STATUTE-

(a) Failure to comply with applicable law, to permit inspection, or

to notify Secretary of assignment; exceptions to application of

penalty

Any person who -

(1) after due notice of violation or after such violation has

been reported under subparagraph (A), fails or refuses to comply

with any requirements of this chapter or any mineral leasing law,

any rule or regulation thereunder, or the terms of any lease or

permit issued thereunder; or

(2) fails to permit inspection authorized in section 1718 of

this title or fails to notify the Secretary of any assignment

under section 1712(a)(2) (!1) of this title

shall be liable for a penalty of up to $500 per violation for each

day such violation continues, dating from the date of such notice

or report. A penalty under this subsection may not be applied to

any person who is otherwise liable for a violation of paragraph (1)

if:

(A) the violation was discovered and reported to the Secretary

or his authorized representative by the liable person and

corrected within 20 days after such report or such longer time as

the Secretary may agree to; or

(B) after the due notice of violation required in paragraph (1)

has been given to such person by the Secretary or his authorized

representative, such person has corrected the violation within 20

days of such notification or such longer time as the Secretary

may agree to.

(b) Failure to take corrective action

If corrective action in not taken within 40 days or a longer

period as the Secretary may agree to, after due notice or the

report referred to in subsection (a)(1) of this section, such

person shall be liable for a civil penalty of not more than $5,000

per violation for each day such violation continues, dating from

the date of such notice or report.

(c) Failure to make royalty payment; failure to permit lawful

entry, inspection, or audit; failure to notify Secretary of well

production

Any person who -

(1) knowingly or willfully fails to make any royalty payment by

the date as specified by statute, regulation, order or terms of

the lease;

(2) fails or refuses to permit lawful entry, inspection, or

audit; or

(3) knowingly or willfully fails or refuses to comply with

section 1712(b)(3) of this title,

shall be liable for a penalty of up to $10,000 per violation for

each day such violation continues.

(d) False information; unauthorized removal, etc., of oil or gas;

purchase, sale, etc., of stolen oil or gas

Any person who -

(1) knowingly or willfully prepares, maintains, or submits

false, inaccurate, or misleading reports, notices, affidavits,

records, data, or other written information;

(2) knowingly or willfully takes or removes, transports, uses

or diverts any oil or gas from any lease site without having

valid legal authority to do so; or

(3) purchases, accepts, sells, transports, or conveys to

another, any oil or gas knowing or having reason to know that

such oil or gas was stolen or unlawfully removed or diverted,

shall be liable for a penalty of up to $25,000 per violation for

each day such violation continues.

(e) Hearing

No penalty under this section shall be assessed until the person

charged with a violation has been given the opportunity for a

hearing on the record.

(f) Deduction of penalty from sums owed by United States

The amount of any penalty under this section, as finally

determined (!2) may be deducted from any sums owing by the United

States to the person charged.

(g) Compromise or reduction of penalties

On a case-by-case basis the Secretary may compromise or reduce

civil penalties under this section.

(h) Notice

Notice under subsection (a) of this section shall be by personal

service by an authorized representative of the Secretary or by

registered mail. Any person may, in the manner prescribed by the

Secretary, designate a representative to receive any notice under

this subsection.

(i) Reasons on record for amount of penalty

In determining the amount of such penalty, or whether it should

be remitted or reduced, and in what amount, the Secretary shall

state on the record the reasons for his determinations.

(j) Review

Any person who has requested a hearing in accordance with

subsection (e) of this section within the time the Secretary has

prescribed for such a hearing and who is aggrieved by a final order

of the Secretary under this section may seek review of such order

in the United States district court for the judicial district in

which the violation allegedly took place. Review by the district

court shall be only on the administrative record and not de novo.

Such an action shall be barred unless filed within 90 days after

the Secretary's final order.

(k) Failure to pay penalty

If any person fails to pay an assessment of a civil penalty under

this chapter -

(1) after the order making the assessment has become a final

order and if such person does not file a petition for judicial

review of the order in accordance with subsection (j) of this

section, or

(2) after a court in an action brought under subsection (j) of

this section has entered a final judgment in favor of the

Secretary,

the court shall have jurisdiction to award the amount assessed plus

interest from the date of the expiration of the 90-day period

referred to in subsection (j) of this section. Judgment by the

court shall include an order to pay.

(g742l) Nonliability for leases automatically terminated

No person shall be liable for a civil penalty under subsection

(a) or (b) of this section for failure to pay any rental for any

lease automatically terminated pursuant to section 188 of this

title.

-SOURCE-

(Pub. L. 97-451, title I, Sec. 109, Jan. 12, 1983, 96 Stat. 2454.)

-REFTEXT-

REFERENCES IN TEXT

Section 1712(a) of this title, referred to in subsec. (a)(2), was

amended generally by Pub. L. 104-185, Sec. 6(g), Aug. 13, 1996, 110

Stat. 1715, and, as so amended, no longer contains a par. (2). See

section 1712(a) of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1720 of this title.

-FOOTNOTE-

(!1) See References in Text note below.

(!2) So in original. Probably should be followed by a comma.

-End-

-CITE-

30 USC Sec. 1720 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

SUBCHAPTER I - FEDERAL ROYALTY MANAGEMENT AND ENFORCEMENT

-HEAD-

Sec. 1720. Criminal penalties

-STATUTE-

Any person who commits an act for which a civil penalty is

provided in section 1719(d) of this title shall, upon conviction,

be punished by a fine of not more than $50,000, or by imprisonment

for not more than 2 years, or both.

-SOURCE-

(Pub. L. 97-451, title I, Sec. 110, Jan. 12, 1983, 96 Stat. 2455.)

-End-

-CITE-

30 USC Sec. 1721 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

SUBCHAPTER I - FEDERAL ROYALTY MANAGEMENT AND ENFORCEMENT

-HEAD-

Sec. 1721. Royalty terms and conditions, interest, and penalties

-STATUTE-

(a) Charge on late royalty payment or royalty payment deficiency

In the case of oil and gas leases where royalty payments are not

received by the Secretary on the date that such payments are due,

or are less than the amount due, the Secretary shall charge

interest on such late payments or underpayments at the rate

applicable under section 6621 of title 26. In the case of an

underpayment or partial payment, interest shall be computed and

charged only on the amount of the deficiency and not on the total

amount due.

(b) Charge on late payment made by Secretary to States

Any payment made by the Secretary to a State under section 191 of

this title and any other payment made by the Secretary to a State

from any oil or gas royalty received by the Secretary which is not

paid on the date required under section 191 of this title shall

include an interest charge computed at the rate applicable under

section 6621 of title 26.

(c) Deposit in royalty accounts of charges on royalties due and

owing Indians

All interest charges collected under this chapter or under other

applicable laws because of nonpayment, late payment or underpayment

of royalties due and owing an Indian tribe or an Indian allottee

shall be deposited to the same account as the royalty with respect

to which such interest is paid.

(d) Charge on late deposit of royalty fund to an Indian account

Any deposit of royalty funds made by the Secretary to an Indian

account which is not made by the date required under section 1714

of this title shall include an interest charge computed at the rate

applicable under section 6621 of title 26.

(e) Nonliability of States for Secretary's failure to comply with

the Emergency Petroleum Allocation Act of 1973 or regulations

thereunder

Notwithstanding any other provision of law, no State will be

assessed for any interest or penalties found to be due against the

Secretary for failure to comply with the Emergency Petroleum

Allocation Act of 1973 [15 U.S.C. 751 et seq.] or regulation of the

Secretary of Energy thereunder concerning crude oil certification

or pricing with respect to crude oil taken by the Secretary in kind

as royalty. Any State share of an overcharge, resulting from such

failure to comply, shall be assessed against moneys found to be due

and owing to such State as a result of audits of royalty accounts

for transactions which took place prior to January 12, 1983, except

that if after the completion of such audits, sufficient moneys have

not been found due and owing to any State, the State shall be

assessed the balance of that State's share of the overcharge.

(f) Limitation on interest charged

Interest shall be charged under this section only for the number

of days a payment is late.

(g) Omitted

(h) Lessee or designee interest

Interest shall be allowed and paid or credited on any

overpayment, with such interest to accrue from the date such

overpayment was made, at the rate obtained by applying the

provisions of subparagraphs (A) and (B) of section 6621(a)(1) of

title 26, but determined without regard to the sentence following

subparagraph (B) of section 6621(a)(1). Interest which has accrued

on any overpayment may be applied to reduce an underpayment. This

subsection applies to overpayments made later than six months after

August 13, 1996, or September 1, 1996, whichever is later. Such

interest shall be paid from amounts received as current receipts

from sales, bonuses, royalties (including interest charges

collected under this section) and rentals of the public lands and

the Outer Continental Shelf under the provisions of the Mineral

Leasing Act [30 U.S.C. 181 et seq.], and the Outer Continental

Shelf Lands Act [43 U.S.C. 1331 et seq.], which are not payable to

a State or the Reclamation Fund. The portion of any such interest

payment attributable to any amounts previously disbursed to a

State, the Reclamation Fund, or any other recipient designated by

law shall be deducted from the next disbursements to that recipient

made under the applicable law. Such amounts deducted from

subsequent disbursements shall be credited to miscellaneous

receipts in the Treasury.

(i) Limitation on interest

Upon a determination by the Secretary that an excessive

overpayment (based upon all obligations of a lessee or its designee

for a given reporting month) was made for the sole purpose of

receiving interest, interest shall not be paid on the excessive

amount of such overpayment. For purposes of this chapter, an

"excessive overpayment" shall be the amount that any overpayment a

lessee or its designee pays for a given reporting month (excluding

payments for demands for obligations determined to be due as a

result of judicial or administrative proceedings or agreed to be

paid pursuant to settlement agreements) for the aggregate of all of

its Federal leases exceeds 10 percent of the total royalties paid

that month for those leases.

(j) Estimated payment

A lessee or its designee may make a payment for the approximate

amount of royalties (hereinafter in this subsection "estimated

payment") that would otherwise be due for such lease by the date

royalties are due for that lease. When an estimated payment is

made, actual royalties are payable at the end of the month

following the month in which the estimated payment is made. If the

estimated payment was less than the amount of actual royalties due,

interest is owed on the underpaid amount. If the estimated payment

exceeds the actual royalties due, interest is owed on the

overpayment. If the lessee or its designee makes a payment for such

actual royalties, the lessee or its designee may apply the

estimated payment to future royalties. Any estimated payment may be

adjusted, recouped, or reinstated at any time by the lessee or its

designee.

(k) Volume allocation of oil and gas production

(1) Except as otherwise provided by this subsection -

(A) a lessee or its designee of a lease in a unit or

communitization agreement which contains only Federal leases with

the same royalty rate and funds distribution shall report and pay

royalties on oil and gas production for each production month

based on the actual volume of production sold by or on behalf of

that lessee;

(B) a lessee or its designee of a lease in any other unit or

communitization agreement shall report and pay royalties on oil

and gas production for each production month based on the volume

of oil and gas produced from such agreement and allocated to the

lease in accordance with the terms of the agreement; and

(C) a lessee or its designee of a lease that is not contained

in a unit or communitization agreement shall report and pay

royalties on oil and gas production for each production month

based on the actual volume of production sold by or on behalf of

that lessee.

(2) This subsection applies only to requirements for reporting

and paying royalties. Nothing in this subsection is intended to

alter a lessee's liability for royalties on oil or gas production

based on the share of production allocated to the lease in

accordance with the terms of the lease, a unit or communitization

agreement, or any other agreement.

(3) For any unit or communitization agreement if all lessees

contractually agree to an alternative method of royalty reporting

and payment, the lessees may submit such alternative method to the

Secretary or the delegated State for approval and make payments in

accordance with such approved alternative method so long as such

alternative method does not reduce the amount of the royalty

obligation.

(4) The Secretary or the delegated State shall grant an exception

from the reporting and payment requirements for marginal properties

by allowing for any calendar year or portion thereof royalties to

be paid each month based on the volume of production sold. Interest

shall not accrue on the difference for the entire calendar year or

portion thereof between the amount of oil and gas actually sold and

the share of production allocated to the lease until the beginning

of the month following such calendar year or portion thereof. Any

additional royalties due or overpaid royalties and associated

interest shall be paid, refunded, or credited within six months

after the end of each calendar year in which royalties are paid

based on volumes of production sold. For the purpose of this

subsection, the term "marginal property" means a lease that

produces on average the combined equivalent of less than 15 barrels

of oil per well per day or 90 thousand cubic feet of gas per well

per day, or a combination thereof, determined by dividing the

average daily production of crude oil and natural gas from

producing wells on such lease by the number of such wells, unless

the Secretary, together with the State concerned, determines that a

different production is more appropriate.

(5) Not later than two years after August 13, 1996, the Secretary

shall issue any appropriate demand for all outstanding royalty

payment disputes regarding who is required to report and pay

royalties on production from units and communitization agreements

outstanding on August 13, 1996, and collect royalty amounts owed on

such production.

(g742l) Production allocation

The Secretary shall issue all determinations of allocations of

production for units and communitization agreements within 120 days

of a request for determination. If the Secretary fails to issue a

determination within such 120-day period, the Secretary shall waive

interest due on obligations subject to the determination until the

end of the month following the month in which the determination is

made.

-SOURCE-

(Pub. L. 97-451, title I, Sec. 111, Jan. 12, 1983, 96 Stat. 2455;

Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L.

104-185, Sec. 6(a)-(e), (h)(1), Aug. 13, 1996, 110 Stat. 1712-1715;

Pub. L. 104-200, Sec. 1(3)-(6), Sept. 22, 1996, 110 Stat. 2421.)

-REFTEXT-

REFERENCES IN TEXT

The Emergency Petroleum Allocation Act of 1973, referred to in

subsec. (e), is Pub. L. 93-159, Nov. 27, 1973, 87 Stat. 628, as

amended, which was classified generally to chapter 16A (Sec. 751 et

seq.) of Title 15, Commerce and Trade, and was omitted from the

Code pursuant to section 760g of Title 15, which provided for the

expiration of the President's authority under that chapter on Sept.

30, 1981.

The Mineral Leasing Act, referred to in subsec. (h), is act Feb.

25, 1920, ch. 85, 41 Stat. 437, as amended, which is classified

generally to chapter 3A (Sec. 181 et seq.) of this title. For

complete classification of this Act to the Code, see Short Title

note set out under section 181 of this title and Tables.

The Outer Continental Shelf Lands Act, referred to in subsec.

(h), is act Aug. 7, 1953, ch. 345, 67 Stat. 462, as amended, which

is classified generally to subchapter III (Sec. 1331 et seq.) of

chapter 29 of Title 43, Public Lands. For complete classification

of this Act to the Code, see Short Title note set out under section

1301 of Title 43 and Tables.

-COD-

CODIFICATION

Section is comprised of section 111 of Pub. L. 97-451. Subsec.

(g) of section 111 of Pub. L. 97-451 amended section 191(a) of this

title.

-MISC1-

AMENDMENTS

1996 - Pub. L. 104-185, Sec. 6(h)(1), substituted "Royalty terms

and conditions, interest, and penalties" for "Royalty interest,

penalties and payments" in section catchline.

Subsec. (h). Pub. L. 104-185, Sec. 6(a), added subsec. (h).

Subsec. (i). Pub. L. 104-200, Sec. 1(3), inserted "not" after

"receiving interest, interest shall".

Pub. L. 104-185, Sec. 6(b), added subsec. (i).

Subsec. (j). Pub. L. 104-200, Sec. 1(4), (5), substituted "date

royalties are due" for "rate royalties are due", "interest is owed

on the underpaid amount" for "interest is owned on the underpaid

amount", and "interest is owed on the overpayment" for "interest is

owned on the overpayment".

Pub. L. 104-185, Sec. 6(c), added subsec. (j).

Subsec. (k). Pub. L. 104-185, Sec. 6(d), added subsec. (k).

Subsec. (k)(4). Pub. L. 104-200, Sec. 1(6), substituted

"additional royalties due" for "additional royalties dues".

Subsec. (l). Pub. L. 104-185, Sec. 6(e), added subsec. (l).

1986 - Subsecs. (a), (b), (d). Pub. L. 99-514 substituted

"Internal Revenue Code of 1986" for "Internal Revenue Code of

1954", which for purposes of codification was translated as "title

26" thus requiring no change in text.

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by Pub. L. 104-185 applicable with respect to

production of oil and gas after the first day of the month

following Aug. 13, 1996, except as provided by subsecs. (h) and

(k)(5) of this section, see section 11 of Pub. L. 104-185, set out

as a note under section 1701 of this title.

APPLICABILITY OF 1996 AMENDMENT

Amendment by Pub. L. 104-185 not applicable to any privately

owned minerals or with respect to Indian lands, see sections 9 and

10 of Pub. L. 104-185, set out as a note under section 1701 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 355 of this title.

-End-

-CITE-

30 USC Sec. 1721a 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

SUBCHAPTER I - FEDERAL ROYALTY MANAGEMENT AND ENFORCEMENT

-HEAD-

Sec. 1721a. Adjustments and refunds

-STATUTE-

(a) Adjustments to royalties paid to Secretary or a delegated State

(1) If, during the adjustment period, a lessee or its designee

determines that an adjustment or refund request is necessary to

correct an underpayment or overpayment of an obligation, the lessee

or its designee shall make such adjustment or request a refund

within a reasonable period of time and only during the adjustment

period. The filing of a royalty report which reflects the

underpayment or overpayment of an obligation shall constitute prior

written notice to the Secretary or the applicable delegated State

of an adjustment.

(2)(A) For any adjustment, the lessee or its designee shall

calculate and report the interest due attributable to such

adjustment at the same time the lessee or its designee adjusts the

principle (!1) amount of the subject obligation, except as provided

by subparagraph (B).

(B) In the case of a lessee or its designee who determines that

subparagraph (A) would impose a hardship, the Secretary or such

delegated State shall calculate the interest due and notify the

lessee or its designee within a reasonable time of the amount of

interest due, unless such lessee or its designee elects to

calculate and report interest in accordance with subparagraph (A).

(3) An adjustment or a request for a refund for an obligation may

be made after the adjustment period only upon written notice to and

approval by the Secretary or the applicable delegated State, as

appropriate, during an audit of the period which includes the

production month for which the adjustment is being made. If an

overpayment is identified during an audit, then the Secretary or

the applicable delegated State, as appropriate, shall allow a

credit or refund in the amount of the overpayment.

(4) For purposes of this section, the adjustment period for any

obligation shall be the six-year period following the date on which

an obligation became due. The adjustment period shall be suspended,

tolled, extended, enlarged, or terminated by the same actions as

the limitation period in section 1724 of this title.

(b) Refunds

(1) In general

A request for refund is sufficient if it -

(A) is made in writing to the Secretary and, for purposes of

section 1724 of this title, is specifically identified as a

demand;

(B) identifies the person entitled to such refund;

(C) provides the Secretary information that reasonably

enables the Secretary to identify the overpayment for which

such refund is sought; and

(D) provides the reasons why the payment was an overpayment.

(2) Payment by Secretary of the Treasury

The Secretary shall certify the amount of the refund to be paid

under paragraph (1) to the Secretary of the Treasury who shall

make such refund. Such refund shall be paid from amounts received

as current receipts from sales, bonuses, royalties (including

interest charges collected under this section) and rentals of the

public lands and the Outer Continental Shelf under the provisions

of the Mineral Leasing Act [30 U.S.C. 181 et seq.] and the Outer

Continental Shelf Lands Act [43 U.S.C. 1331 et seq.], which are

not payable to a State or the Reclamation Fund. The portion of

any such refund attributable to any amounts previously disbursed

to a State, the Reclamation Fund, or any recipient prescribed by

law shall be deducted from the next disbursements to that

recipient made under the applicable law. Such amounts deducted

from subsequent disbursements shall be credited to miscellaneous

receipts in the Treasury.

(3) Payment period

A refund under this subsection shall be paid or denied (with an

explanation of the reasons for the denial) within 120 days of the

date on which the request for refund is received by the

Secretary. Such refund shall be subject to later audit by the

Secretary or the applicable delegated State and subject to the

provisions of this chapter.

(4) Prohibition against reduction of refunds or credits

In no event shall the Secretary or any delegated State directly

or indirectly claim or offset any amount or amounts against, or

reduce any refund or credit (or interest accrued thereon) by the

amount of any obligation the enforcement of which is barred by

section 1724 of this title.

-SOURCE-

(Pub. L. 97-451, title I, Sec. 111A, as added Pub. L. 104-185, Sec.

5(a), Aug. 13, 1996, 110 Stat. 1710.)

-REFTEXT-

REFERENCES IN TEXT

The Mineral Leasing Act, referred to in subsec. (b)(2), is act

Feb. 25, 1920, ch. 85, 41 Stat. 437, as amended, which is

classified generally to chapter 3A (Sec. 181 et seq.) of this

title. For complete classification of this Act to the Code, see

Short Title note set out under section 181 of this title and

Tables.

The Outer Continental Shelf Lands Act, referred to in subsec.

(b)(2), is act Aug. 7, 1953, ch. 345, 67 Stat. 462, as amended,

which is classified generally to subchapter III (Sec. 1331 et seq.)

of chapter 29 of Title 43, Public Lands. For complete

classification of this Act to the Code, see Short Title note set

out under section 1301 of Title 43 and Tables.

-MISC1-

EFFECTIVE DATE

Section applicable with respect to production of oil and gas

after the first day of the month following Aug. 13, 1996, see

section 11 of Pub. L. 104-185, set out as an Effective Date of 1996

Amendment note under section 1701 of this title.

APPLICABILITY

Section not applicable to any privately owned minerals or with

respect to Indian lands, see sections 9 and 10 of Pub. L. 104-185,

set out as an Applicability of 1996 Amendment note under section

1701 of this title.

-FOOTNOTE-

(!1) So in original. Probably should be "principal".

-End-

-CITE-

30 USC Sec. 1722 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

SUBCHAPTER I - FEDERAL ROYALTY MANAGEMENT AND ENFORCEMENT

-HEAD-

Sec. 1722. Injunction and specific enforcement authority

-STATUTE-

(a) Civil action by Attorney General

In addition to any other remedy under this chapter or any mineral

leasing law, the Attorney General of the United States or his

designee may bring a civil action in a district court of the United

States, which shall have jurisdiction over such actions -

(1) to restrain any violation of this chapter; or

(2) to compel the taking of any action required by or under

this chapter or any mineral leasing law of the United States.

(b) Venue

A civil action described in subsection (a) of this section may be

brought only in the United States district court for the judicial

district wherein the act, omission, or transaction constituting a

violation under this chapter or any other mineral leasing law

occurred, or wherein the defendant is found or transacts business.

-SOURCE-

(Pub. L. 97-451, title I, Sec. 112, Jan. 12, 1983, 96 Stat. 2456.)

-End-

-CITE-

30 USC Sec. 1723 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

SUBCHAPTER I - FEDERAL ROYALTY MANAGEMENT AND ENFORCEMENT

-HEAD-

Sec. 1723. Rewards

-STATUTE-

Where amounts representing royalty or other payments owed to the

United States with respect to any oil and gas lease on Federal

lands or the Outer Continental Shelf are recovered pursuant to any

action taken by the Secretary under this chapter as a result of

information provided to the Secretary by any person, the Secretary

is authorized to pay to such person an amount equal to not more

than 10 percent of such recovered amounts. The preceding sentence

shall not apply to information provided by an officer or employee

of the United States, an officer or employee of a State or Indian

tribe acting pursuant to a cooperative agreement or delegation

under this chapter, or any person acting pursuant to a contract

authorized by this chapter.

-SOURCE-

(Pub. L. 97-451, title I, Sec. 113, Jan. 12, 1983, 96 Stat. 2456.)

-End-

-CITE-

30 USC Sec. 1724 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

SUBCHAPTER I - FEDERAL ROYALTY MANAGEMENT AND ENFORCEMENT

-HEAD-

Sec. 1724. Secretarial and delegated States' actions and limitation

periods

-STATUTE-

(a) In general

The respective duties, responsibilities, and activities with

respect to a lease shall be performed by the Secretary, delegated

States, and lessees or their designees in a timely manner.

(b) Limitation period

(1) In general

A judicial proceeding or demand which arises from, or relates

to an obligation, shall be commenced within seven years from the

date on which the obligation becomes due and if not so commenced

shall be barred. If commencement of a judicial proceeding or

demand for an obligation is barred by this section, the

Secretary, a delegated State, or a lessee or its designee (A)

shall not take any other or further action regarding that

obligation, including (but not limited to) the issuance of any

order, request, demand or other communication seeking any

document, accounting, determination, calculation, recalculation,

payment, principal, interest, assessment, or penalty or the

initiation, pursuit or completion of an audit with respect to

that obligation; and (B) shall not pursue any other equitable or

legal remedy, whether under statute or common law, with respect

to an action on or an enforcement of said obligation.

(2) Rule of construction

A judicial proceeding or demand that is timely commenced under

paragraph (1) against a designee shall be considered timely

commenced as to any lessee who is liable pursuant to section

1712(a) of this title for the obligation that is the subject of

the judicial proceeding or demand.

(3) Application of certain limitations

The limitations set forth in sections 2401, 2415, 2416, and

2462 of title 28 and section 226-2 of this title shall not apply

to any obligation to which this chapter applies. Section 3716 of

title 31 may be applied to an obligation the enforcement of which

is not barred by this chapter, but may not be applied to any

obligation the enforcement of which is barred by this chapter.

(c) Obligation becomes due

(1) In general

For purposes of this chapter, an obligation becomes due when

the right to enforce the obligation is fixed.

(2) Royalty obligations

The right to enforce any royalty obligation for any given

production month for a lease is fixed for purposes of this

chapter on the last day of the calendar month following the month

in which oil or gas is produced.

(d) Tolling of limitation period

The running of the limitation period under subsection (b) of this

section shall not be suspended, tolled, extended, or enlarged for

any obligation for any reason by any action, including an action by

the Secretary or a delegated State, other than the following:

(1) Tolling agreement

A written agreement executed during the limitation period

between the Secretary or a delegated State and a lessee or its

designee (with notice to the lessee who designated the designee)

shall toll the limitation period for the amount of time during

which the agreement is in effect.

(2) Subpoena

(A) The issuance of a subpoena to a lessee or its designee

(with notice to the lessee who designated the designee, which

notice shall not constitute a subpoena to the lessee) in

accordance with the provisions of subparagraph (B)(i) shall toll

the limitation period with respect to the obligation which is the

subject of a subpoena only for the period beginning on the date

the lessee or its designee receives the subpoena and ending on

the date on which (i) the lessee or its designee has produced

such subpoenaed records for the subject obligation, (ii) the

Secretary or a delegated State receives written notice that the

subpoenaed records for the subject obligation are not in

existence or are not in the lessee's or its designee's possession

or control, or (iii) a court has determined in a final decision

that such records are not required to be produced, whichever

occurs first.

(B)(i) A subpoena for the purposes of this section which

requires a lessee or its designee to produce records necessary to

determine the proper reporting and payment of an obligation due

the Secretary may be issued only by an Assistant Secretary of the

Interior or an Acting Assistant Secretary of the Interior who is

a schedule C employee (as defined by section 213.3301 of title 5,

Code of Federal Regulations), or the Director or Acting Director

of the respective bureau or agency, and may not be delegated to

any other person. If a State has been delegated authority

pursuant to section 1735 of this title, the State, acting through

the highest State official having ultimate authority over the

collection of royalties from leases on Federal lands within the

State, may issue such subpoena, but may not delegate such

authority to any other person.

(ii) A subpoena described in clause (i) may only be issued

against a lessee or its designee during the limitation period

provided in this section and only after the Secretary or a

delegated State has in writing requested the records from the

lessee or its designee related to the obligation which is the

subject of the subpoena and has determined that -

(I) the lessee or its designee has failed to respond within a

reasonable period of time to the Secretary's or the applicable

delegated State's written request for such records necessary

for an audit, investigation or other inquiry made in accordance

with the Secretary's or such delegated State's responsibilities

under this chapter; or

(II) the lessee or its designee has in writing denied the

Secretary's or the applicable delegated State's written request

to produce such records in the lessee's or its designee's

possession or control necessary for an audit, investigation or

other inquiry made in accordance with the Secretary's or such

delegated State's responsibilities under this chapter; or

(III) the lessee or its designee has unreasonably delayed in

producing records necessary for an audit, investigation or

other inquiry made in accordance with the Secretary's or the

applicable delegated State's responsibilities under this

chapter after the Secretary's or delegated State's written

request.

(C) In seeking records, the Secretary or the applicable

delegated State shall afford the lessee or its designee a

reasonable period of time after a written request by the

Secretary or such delegated State in which to provide such

records prior to the issuance of any subpoena.

(3) Misrepresentation or concealment

The intentional misrepresentation or concealment of a material

fact for the purpose of evading the payment of an obligation in

which case the limitation period shall be tolled for the period

of such misrepresentation or such concealment.

(4) Order to perform restructured accounting

(A)(i) The issuance of a notice under subparagraph (D) that the

lessee or its designee has not substantially complied with the

requirement to perform a restructured accounting shall toll the

limitation period with respect to the obligation which is the

subject of the notice only for the period beginning on the date

the lessee or its designee receives the notice and ending 120

days after the date on which (I) the Secretary or the applicable

delegated State receives written notice that the accounting or

other requirement has been performed, or (II) a court has

determined in a final decision that the lessee is not required to

perform the accounting, whichever occurs first.

(ii) If the lessee or its designee initiates an administrative

appeal or judicial proceeding to contest an order to perform a

restructured accounting issued under subparagraph (B)(i), the

limitation period in subsection (b) of this section shall be

tolled from the date the lessee or its designee received the

order until a final, nonappealable decision is issued in any such

proceeding.

(B)(i) The Secretary or the applicable delegated State may

issue an order to perform a restructured accounting to a lessee

or its designee when the Secretary or such delegated State

determines during an audit of a lessee or its designee that the

lessee or its designee should recalculate royalty due on an

obligation based upon the Secretary's or the delegated State's

finding that the lessee or its designee has made identified

underpayments or overpayments which are demonstrated by the

Secretary or the delegated State to be based upon repeated,

systemic reporting errors for a significant number of leases or a

single lease for a significant number of reporting months with

the same type of error which constitutes a pattern of violations

and which are likely to result in either significant

underpayments or overpayments.

(ii) The power of the Secretary to issue an order to perform a

restructured accounting may not be delegated below the most

senior career professional position having responsibility for the

royalty management program, which position is currently

designated as the "Associate Director for Royalty Management",

and may not be delegated to any other person. If a State has been

delegated authority pursuant to section 1735 of this title, the

State, acting through the highest ranking State official having

ultimate authority over the collection of royalties from leases

on Federal lands within the State, may issue such order to

perform, which may not be delegated to any other person. An order

to perform a restructured accounting shall -

(I) be issued within a reasonable period of time from when

the audit identifies the systemic, reporting errors;

(II) specify the reasons and factual bases for such order;

(III) be specifically identified as an "order to perform a

restructured accounting";

(IV) provide the lessee or its designee a reasonable period

of time (but not less than 60 days) within which to perform the

restructured accounting; and

(V) provide the lessee or its designee 60 days within which

to file an administrative appeal of the order to perform a

restructured accounting.

(C) An order to perform a restructured accounting shall not

mean or be construed to include any other action by or on behalf

of the Secretary or a delegated State.

(D) If a lessee or its designee fails to substantially comply

with the requirement to perform a restructured accounting

pursuant to this subsection, a notice shall be issued to the

lessee or its designee that the lessee or its designee has not

substantially complied with the requirements to perform a

restructured accounting. A lessee or its designee shall be given

a reasonable time within which to perform the restructured

accounting. Such notice may be issued under this section only by

an Assistant Secretary of the Interior or an acting Assistant

Secretary of the Interior who is a schedule C employee (as

defined by section 213.3301 of title 5, Code of Federal

Regulations) and may not be delegated to any other person. If a

State has been delegated authority pursuant to section 1735 of

this title, the State, acting through the highest State official

having ultimate authority over the collection of royalties from

leases on Federal lands within the State, may issue such notice,

which may not be delegated to any other person.

(e) Termination of limitations period

An action or an enforcement of an obligation by the Secretary or

delegated State or a lessee or its designee shall be barred under

this section prior to the running of the seven-year period provided

in subsection (b) of this section in the event -

(1) the Secretary or a delegated State has notified the lessee

or its designee in writing that a time period is closed to

further audit; or

(2) the Secretary or a delegated State and a lessee or its

designee have so agreed in writing.

For purposes of this subsection, notice to, or an agreement by, the

designee shall be binding on any lessee who is liable pursuant to

section 1712(a) of this title for obligations that are the subject

of the notice or agreement.

(f) Records required for determining collections

Records required pursuant to section 1713 of this title by the

Secretary or any delegated State for the purpose of determining

obligations due and compliance with any applicable mineral leasing

law, lease provision, regulation or order with respect to oil and

gas leases from Federal lands or the Outer Continental Shelf shall

be maintained for the same period of time during which a judicial

proceeding or demand may be commenced under subsection (b) of this

section. If a judicial proceeding or demand is timely commenced,

the record holder shall maintain such records until the final

nonappealable decision in such judicial proceeding is made, or with

respect to that demand is rendered, unless the Secretary or the

applicable delegated State authorizes in writing an earlier release

of the requirement to maintain such records. Notwithstanding

anything herein to the contrary, under no circumstance shall a

record holder be required to maintain or produce any record

relating to an obligation for any time period which is barred by

the applicable limitation in this section. In connection with any

hearing, administrative proceeding, inquiry, investigation, or

audit by the Secretary or a delegated State under this chapter, the

Secretary or the delegated State shall minimize the submission of

multiple or redundant information and make a good faith effort to

locate records previously submitted by a lessee or a designee to

the Secretary or the delegated State, prior to requiring the lessee

or the designee to provide such records.

(g) Timely collections

In order to most effectively utilize resources available to the

Secretary to maximize the collection of oil and gas receipts from

lease obligations to the Treasury within the seven-year period of

limitations, and consequently to maximize the State share of such

receipts, the Secretary should not perform or require accounting,

reporting, or audit activities if the Secretary and the State

concerned determine that the cost of conducting or requiring the

activity exceeds the expected amount to be collected by the

activity, based on the most current 12 months of activity. This

subsection shall not provide a defense to a demand or an order to

perform a restructured accounting. To the maximum extent possible,

the Secretary and delegated States shall reduce costs to the United

States Treasury and the States by discontinuing requirements for

unnecessary or duplicative data and other information, such as

separate allowances and payor information, relating to obligations

due. If the Secretary and the State concerned determine that

collection will result sooner, the Secretary or the applicable

delegated State may waive or forego interest in whole or in part.

(h) Appeals and final agency action

(1) 33-month period

Demands or orders issued by the Secretary or a delegated State

are subject to administrative appeal in accordance with the

regulations of the Secretary. No State shall impose any

conditions which would hinder a lessee's or its designee's

immediate appeal of an order to the Secretary or the Secretary's

designee. The Secretary shall issue a final decision in any

administrative proceeding, including any administrative

proceedings pending on August 13, 1996, within 33 months from the

date such proceeding was commenced or 33 months from August 13,

1996, whichever is later. The 33-month period may be extended by

any period of time agreed upon in writing by the Secretary and

the appellant.

(2) Effect of failure to issue decision

If no such decision has been issued by the Secretary within the

33-month period referred to in paragraph (1) -

(A) the Secretary shall be deemed to have issued and granted

a decision in favor of the appellant as to any nonmonetary

obligation and any monetary obligation the principal amount of

which is less than $10,000; and

(B) the Secretary shall be deemed to have issued a final

decision in favor of the Secretary, which decision shall be

deemed to affirm those issues for which the agency rendered a

decision prior to the end of such period, as to any monetary

obligation the principal amount of which is $10,000 or more,

and the appellant shall have a right to judicial review of such

deemed final decision in accordance with title 5.

(i) Collections of disputed amounts due

To expedite collections relating to disputed obligations due

within the seven-year period beginning on the date the obligation

became due, the parties shall hold not less than one settlement

consultation and the Secretary and the State concerned may take

such action as is appropriate to compromise and settle a disputed

obligation, including waiving or reducing interest and allowing

offsetting of obligations among leases.

(j) Enforcement of claim for judicial review

In the event a demand subject to this section is properly and

timely commenced, the obligation which is the subject of the demand

may be enforced beyond the seven-year limitations period without

being barred by this statute of limitations. In the event a demand

subject to this section is properly and timely commenced, a

judicial proceeding challenging the final agency action with

respect to such demand shall be deemed timely so long as such

judicial proceeding is commenced within 180 days from receipt of

notice by the lessee or its designee of the final agency action.

(k) Implementation of final decision

In the event a judicial proceeding or demand subject to this

section is timely commenced and thereafter the limitation period in

this section lapses during the pendency of such proceeding, any

party to such proceeding shall not be barred from taking such

action as is required or necessary to implement a final

unappealable judicial or administrative decision, including any

action required or necessary to implement such decision by the

recovery or recoupment of an underpayment or overpayment by means

of refund or credit.

(g742l) Stay of payment obligation pending review

Any person ordered by the Secretary or a delegated State to pay

any obligation (other than an assessment) shall be entitled to a

stay of such payment without bond or other surety instrument

pending an administrative or judicial proceeding if the person

periodically demonstrates to the satisfaction of the Secretary that

such person is financially solvent or otherwise able to pay the

obligation. In the event the person is not able to so demonstrate,

the Secretary may require a bond or other surety instrument

satisfactory to cover the obligation. Any person ordered by the

Secretary or a delegated State to pay an assessment shall be

entitled to a stay without bond or other surety instrument.

-SOURCE-

(Pub. L. 97-451, title I, Sec. 115, as added Pub. L. 104-185, Sec.

4(a), Aug. 13, 1996, 110 Stat. 1704; amended Pub. L. 104-200, Sec.

1(2), Sept. 22, 1996, 110 Stat. 2421.)

-COD-

CODIFICATION

Pub. L. 104-185, Sec. 4(a), which directed the addition of this

section after section 114 of the Federal Oil and Gas Royalty

Management Act of 1982, Pub. L. 97-451, was executed by adding this

section after section 113 to reflect the probable intent of

Congress because Pub. L. 97-451 did not contain a section 114.

-MISC1-

AMENDMENTS

1996 - Subsec. (l). Pub. L. 104-200 inserted "so" after "the

person is not able to".

EFFECTIVE DATE

Section applicable with respect to production of oil and gas

after the first day of the month following Aug. 13, 1996, except as

provided by subsec. (h) of this section, see section 11 of Pub. L.

104-185, set out as an Effective Date of 1996 Amendment note under

section 1701 of this title.

APPLICABILITY

Section not applicable to any privately owned minerals or with

respect to Indian lands, see sections 9 and 10 of Pub. L. 104-185,

set out as an Applicability of 1996 Amendment note under section

1701 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1721a of this title.

-End-

-CITE-

30 USC Sec. 1725 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

SUBCHAPTER I - FEDERAL ROYALTY MANAGEMENT AND ENFORCEMENT

-HEAD-

Sec. 1725. Assessments

-STATUTE-

Beginning eighteen months after August 13, 1996, to encourage

proper royalty payment the Secretary or the delegated State shall

impose assessments on a person who chronically submits erroneous

reports under this chapter. Assessments under this chapter may only

be issued as provided for in this section.

-SOURCE-

(Pub. L. 97-451, title I, Sec. 116, as added Pub. L. 104-185, Sec.

6(f)(1), Aug. 13, 1996, 110 Stat. 1714.)

-COD-

CODIFICATION

Pub. L. 104-185, Sec. 4(a), which directed the addition of this

section at the end of the Federal Oil and Gas Royalty Management

Act of 1982, was executed by adding this section at the end of

title I of that Act to reflect the probable intent of Congress.

-MISC1-

EFFECTIVE DATE

Section applicable with respect to production of oil and gas

after the first day of the month following Aug. 13, 1996, see

section 11 of Pub. L. 104-185, set out as an Effective Date of 1996

Amendment note under section 1701 of this title.

APPLICABILITY

Section not applicable to any privately owned minerals or with

respect to Indian lands, see sections 9 and 10 of Pub. L. 104-185,

set out as an Applicability of 1996 Amendment note under section

1701 of this title.

-End-

-CITE-

30 USC Sec. 1726 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

SUBCHAPTER I - FEDERAL ROYALTY MANAGEMENT AND ENFORCEMENT

-HEAD-

Sec. 1726. Alternatives for marginal properties

-STATUTE-

(a) Determination of best interests of State concerned and United

States

The Secretary and the State concerned, acting in the best

interests of the United States and the State concerned to promote

production, reduce administrative costs, and increase net receipts

to the United States and the States, shall jointly determine, on a

case by case basis, the amount of what marginal production from a

lease or leases or well or wells, or parts thereof, shall be

subject to a prepayment under subsection (b) of this section or

regulatory relief under subsection (c) of this section. If the

State concerned does not consent, such prepayments or regulatory

relief shall not be made available under this section for such

marginal production: Provided, That if royalty payments from a

lease or leases, or well or wells are not shared with any State,

such determination shall be made solely by the Secretary.

(b) Prepayment of royalty

(1) In general

Notwithstanding the provisions of any lease to the contrary,

for any lease or leases or well or wells identified by the

Secretary and the State concerned pursuant to subsection (a) of

this section, the Secretary is authorized to accept a prepayment

for royalties in lieu of monthly royalty payments under the lease

for the remainder of the lease term if the affected lessee so

agrees. Any prepayment agreed to by the Secretary, State

concerned and lessee which is less than an average $500 per month

in total royalties shall be effectuated under this section not

earlier than two years after August 13, 1996, and, any prepayment

which is greater than an average $500 per month in total

royalties shall be effectuated under this section not earlier

than three years after August 13, 1996. The Secretary and the

State concerned may condition their acceptance of the prepayment

authorized under this section on the lessee's agreeing to such

terms and conditions as the Secretary and the State concerned

deem appropriate and consistent with the purposes of this

chapter. Such terms may -

(A) provide for prepayment that does not result in a loss of

revenue to the United States in present value terms;

(B) include provisions for receiving additional prepayments

or royalties for developments in the lease or leases or well or

wells that deviate significantly from the assumptions and facts

on which the valuation is determined; and

(C) require the lessee or its designee to provide such

periodic production reports as may be necessary to allow the

Secretary and the State concerned to monitor production for the

purposes of subparagraph (B).

(2) State share

A prepayment under this section shall be shared by the

Secretary with any State or other recipient to the same extent as

any royalty payment for such lease.

(3) Satisfaction of obligation

Except as may be provided in the terms and conditions

established by the Secretary under subsection (b) of this

section, a lessee or its designee who makes a prepayment under

this section shall have satisfied in full the lessee's obligation

to pay royalty on the production stream sold from the lease or

leases or well or wells.

(c) Alternative accounting and auditing requirements

Within one year after August 13, 1996, the Secretary or the

delegated State shall provide accounting, reporting, and auditing

relief that will encourage lessees to continue to produce and

develop properties subject to subsection (a) of this section:

Provided, That such relief will only be available to lessees in a

State that concurs, which concurrence is not required if royalty

payments from the lease or leases or well or wells are not shared

with any State. Prior to granting such relief, the Secretary and,

if appropriate, the State concerned shall agree that the type of

marginal wells and relief provided under this paragraph is in the

best interest of the United States and, if appropriate, the State

concerned.

-SOURCE-

(Pub. L. 97-451, title I, Sec. 117, as added Pub. L. 104-185, Sec.

7(a), Aug. 13, 1996, 110 Stat. 1715; amended Pub. L. 104-200, Sec.

1(7), Sept. 22, 1996, 110 Stat. 2421.)

-COD-

CODIFICATION

Pub. L. 104-185, Sec. 4(a), which directed the addition of this

section at the end of the Federal Oil and Gas Royalty Management

Act of 1982, was executed by adding this section at the end of

title I of that Act to reflect the probable intent of Congress.

-MISC1-

AMENDMENTS

1996 - Subsec. (b)(1)(C). Pub. L. 104-200, Sec. 1(7), substituted

"its designee" for "it designee".

EFFECTIVE DATE

Section applicable with respect to production of oil and gas

after the first day of the month following Aug. 13, 1996, except as

provided by this section, see section 11 of Pub. L. 104-185, set

out as an Effective Date of 1996 Amendment note under section 1701

of this title.

APPLICABILITY

Section not applicable to any privately owned minerals or with

respect to Indian lands, see sections 9 and 10 of Pub. L. 104-185,

set out as an Applicability of 1996 Amendment note under section

1701 of this title.

-End-

-CITE-

30 USC SUBCHAPTER II - STATES AND INDIAN TRIBES 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

SUBCHAPTER II - STATES AND INDIAN TRIBES

-HEAD-

SUBCHAPTER II - STATES AND INDIAN TRIBES

-End-

-CITE-

30 USC Sec. 1731 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

SUBCHAPTER II - STATES AND INDIAN TRIBES

-HEAD-

Sec. 1731. Application of subchapter

-STATUTE-

This subchapter shall apply only with respect to oil and gas

leases on Federal lands or Indian lands. Nothing in this subchapter

shall be construed to apply to any lease on the Outer Continental

Shelf.

-SOURCE-

(Pub. L. 97-451, title II, Sec. 201, Jan. 12, 1983, 96 Stat. 2457.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1731a of this title.

-End-

-CITE-

30 USC Sec. 1731a 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

SUBCHAPTER II - STATES AND INDIAN TRIBES

-HEAD-

Sec. 1731a. Application of subchapter to leases of lands within

three miles of seaward boundaries of coastal States

-STATUTE-

For fiscal year 1990 and each fiscal year thereafter,

notwithstanding the provisions of section 1731 of this title,

sections 1732 through 1736 of this title shall apply to any lease

or portion of a lease subject to section 1337(g) of title 43,

which, for purposes of those provisions and for no other purposes,

shall be regarded as within the coastal State or States entitled to

receive revenues from it under section 1337(g) of title 43.

-SOURCE-

(Pub. L. 101-121, title I, Oct. 23, 1989, 103 Stat. 711.)

-COD-

CODIFICATION

Section was enacted as part of the Department of the Interior and

Related Agencies Appropriations Act, 1990, and not as part of the

Federal Oil and Gas Royalty Management Act of 1982 which comprises

this chapter.

-MISC1-

SIMILAR PROVISIONS

Similar provisions were contained in Pub. L. 100-446, title I,

Sept. 27, 1988, 102 Stat. 1791.

-End-

-CITE-

30 USC Sec. 1732 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

SUBCHAPTER II - STATES AND INDIAN TRIBES

-HEAD-

Sec. 1732. Cooperative agreements

-STATUTE-

(a) Authorization of Secretary; permission of Indian tribe required

for activities on Indian lands

The Secretary is authorized to enter into a cooperative agreement

or agreements with any State or Indian tribe to share oil or gas

royalty management information, to carry out inspection, auditing,

investigation or enforcement (not including the collection of

royalties, civil or criminal penalties or other payments)

activities under this chapter in cooperation with the Secretary,

and to carry out any other activity described in section 1718 of

this title. The Secretary shall not enter into any such cooperative

agreement with a State with respect to any such activities on

Indian lands, except with the permission of the Indian tribe

involved.

(b) Access to royalty accounting information

Except as provided in section 1733 of this title, and pursuant to

a cooperative agreement -

(1) each State shall, upon request, have access to all royalty

accounting information in the possession of the Secretary

respecting the production, removal, or sale of oil or gas from

leases on Federal lands within the State; and

(2) each Indian tribe shall, upon request, have access to all

royalty accounting information in the possession of the Secretary

respecting the production, removal, or sale of oil or gas from

leases on Indian lands under the jurisdiction of such tribe.

Information shall be made available under paragraphs (1) and (2) as

soon as practicable after it comes into the possession of the

Secretary. Effective October 1, 1983, such information shall be

made available under paragraphs (1) and (2) not later than 30 days

after such information comes into the possession of the Secretary.

(c) Agreements in accordance with chapter 63 of title 31; terms and

conditions

Any cooperative agreement entered into pursuant to this section

shall be in accordance with the provisions of chapter 63 of title

31, and shall contain such terms and conditions as the Secretary

deems appropriate and consistent with the purposes of this chapter,

including, but not limited to, a limitation on the use of Federal

assistance to those costs which are directly required to carry out

the agreed upon activities.

-SOURCE-

(Pub. L. 97-451, title II, Sec. 202, Jan. 12, 1983, 96 Stat. 2457.)

-COD-

CODIFICATION

In subsec. (c), "chapter 63 of title 31" substituted for "the

Federal Grant and Cooperative Agreement Act of 1977 [41 U.S.C. 501

et seq.]" on authority of Pub. L. 97-258, Sec. 4(b), Sept. 13,

1982, 96 Stat. 1067, the first section of which enacted Title 31,

Money and Finance.

-MISC1-

APPLICABILITY

Pub. L. 104-185, Sec. 8(a), Aug. 13, 1996, 110 Stat. 1717,

provided that: "With respect to Federal lands, sections 202 and 307

of the Federal Oil and Gas Royalty Management Act of 1982 (30

U.S.C. 1732 and 1755), are no longer applicable. The applicability

of those sections to Indian leases is not affected."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 196, 1731a, 1736 of this

title.

-End-

-CITE-

30 USC Sec. 1733 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

SUBCHAPTER II - STATES AND INDIAN TRIBES

-HEAD-

Sec. 1733. Information

-STATUTE-

(a) Availability of confidential information by Secretary pursuant

to cooperative agreements; conditions

Trade secrets, proprietary and other confidential information

shall be made available by the Secretary, pursuant to a cooperative

agreement, to a State or Indian tribe upon request only if -

(1) such State or Indian tribe consents in writing to restrict

the dissemination of the information to those who are directly

involved in an audit or investigation under this chapter and who

have a need to know;

(2) such State or tribe accepts liability for wrongful

disclosure;

(3) in the case of a State, such State demonstrates that such

information is essential to the conduct of an audit or

investigation or to litigation under section 1734 of this title;

and

(4) in the case of an Indian tribe, such tribe demonstrates

that such information is essential to the conduct of an audit or

investigation and waives sovereign immunity by express consent

for wrongful disclosure by such tribe.

(b) Nonliability of United States for wrongful disclosure

The United States shall not be liable for the wrongful disclosure

by any individual, State, or Indian tribe of any information

provided to such individual, State, or Indian tribe pursuant to any

cooperative agreement or a delegation, authorized by this chapter.

(c) Law governing disclosure

Whenever any individual, State, or Indian tribe has obtained

possession of information pursuant to a cooperative agreement

authorized by this section, or any individual or State has obtained

possession of information pursuant to a delegation under section

1735 of this title, the individual shall be subject to the same

provisions of law with respect to the disclosure of such

information as would apply to an officer or employee of the United

States or of any department or agency thereof and the State or

Indian tribe shall be subject to the same provisions of law with

respect to the disclosure of such information as would apply to the

United States or any department or agency thereof. No State or

State officer or employee who receives trade secrets, proprietary

information, or other confidential information under this chapter

may be required to disclose such information under State law.

-SOURCE-

(Pub. L. 97-451, title II, Sec. 203, Jan. 12, 1983, 96 Stat. 2458.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 196, 1731a, 1732 of this

title.

-End-

-CITE-

30 USC Sec. 1734 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

SUBCHAPTER II - STATES AND INDIAN TRIBES

-HEAD-

Sec. 1734. State suits under Federal law

-STATUTE-

(a) Action for royalty, interest, or civil penalty; limitations;

notice of suit; award of costs and fees

(1) A State may commence a civil action under this section

against any person to recover any royalty, interest, or civil

penalty which the State believes is due, based upon credible

evidence, with respect to any oil and gas lease on Federal lands

located within the State.

(2)(A) No action may be commenced under paragraph (1) prior to 90

days after the State has given notice in writing to the Secretary

of the payment required. Such 90-day limitation may be waived by

the Secretary on a case-by-case basis.

(B) If, within the 90-day period specified in subparagraph (A),

the Secretary issues a demand for the payment concerned, no action

may be commenced under paragraph (1) with respect to such payment

during a 45-day period after issuance of such demand. If, during

such 45-day period, the Secretary receives payment in full, no

action may be commenced under paragraph (1).

(C) If the Secretary refers the case to the Attorney General of

the United States within the 45-day period referred to in

subparagraph (B) or within 10 business days after the expiration of

such 45-day period, no action may be commenced under paragraph (1)

if the Attorney General, within 45 days after the date of such

referral, commences, and thereafter diligently prosecutes, a civil

action in a court of the United States with respect to the payment

concerned.

(3) The State shall notify the Secretary and the Attorney General

of the United States of any suit filed by the State under this

section.

(4) A court in issuing any final order in any action brought

under paragraph (1) may award costs of litigation including

reasonable attorney and expert witness fees, to any party in such

action if the court determines such an award is appropriate.

(b) Venue; jurisdiction of district court

An action brought under subsection (a) of this section may be

brought only in a United States district court for the judicial

district in which the lease site or the leasing activity complained

of is located. Such district court shall have jurisdiction, without

regard to the amount in controversy or the citizenship of the

parties, to require compliance or order payment in any such action.

(c) Recovery of civil penalty by State; deposit of rent, royalty,

or interest recovery in Treasury of the United States

(1) Notwithstanding any other provision of law, any civil penalty

recovered by a State under subsection (a) of this section shall be

retained by the State and may be expended in such manner and for

such purposes as the State deems appropriate.

(2) Any rent, royalty, or interest recovered by a State under

subsection (a) of this section shall be deposited in the Treasury

of the United States in the same manner, and subject to the same

requirements, as are applicable in the case of any rent, royalty,

or interest collected by an officer or employee of the United

States, except that such amounts shall be deposited in the Treasury

not later than 10 days after receipt by the State.

-SOURCE-

(Pub. L. 97-451, title II, Sec. 204, Jan. 12, 1983, 96 Stat. 2458.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 196, 1731a, 1733 of this

title.

-End-

-CITE-

30 USC Sec. 1735 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

SUBCHAPTER II - STATES AND INDIAN TRIBES

-HEAD-

Sec. 1735. Delegation of royalty collections and related activities

-STATUTE-

(a) Authorization of Secretary

Upon written request of any State, the Secretary is authorized to

delegate, in accordance with the provisions of this section, all or

part of the authorities and responsibilities of the Secretary under

this chapter to:

(1) conduct inspections, audits, and investigations;

(2) receive and process production and financial reports;

(3) correct erroneous report data;

(4) perform automated verification; and

(5) issue demands, subpoenas, and orders to perform

restructured accounting, for royalty management enforcement

purposes,

to any State with respect to all Federal land within the State.

(b) Prerequisites

After notice and opportunity for a hearing, the Secretary is

authorized to delegate such authorities and responsibilities

granted under this section as the State has requested, if the

Secretary finds that -

(1) it is likely that the State will provide adequate resources

to achieve the purposes of this chapter;

(2) the State has demonstrated that it will effectively and

faithfully administer the rules and regulations of the Secretary

under this chapter in accordance with the requirements of

subsections (c) and (d) of this section;

(3) such delegation will not create an unreasonable burden on

any lessee;

(4) the State agrees to adopt standardized reporting procedures

prescribed by the Secretary for royalty and production accounting

purposes, unless the State and all affected parties (including

the Secretary) otherwise agree;

(5) the State agrees to follow and adhere to regulations and

guidelines issued by the Secretary pursuant to the mineral

leasing laws regarding valuation of production; and

(6) where necessary for a State to have authority to carry out

and enforce a delegated activity, the State agrees to enact such

laws and promulgate such regulations as are consistent with

relevant Federal laws and regulations

with respect to the Federal lands within the State.

(c) Ruling as to consistency of State's proposal

After notice and opportunity for hearing, the Secretary shall

issue a ruling as to the consistency of a State's proposal with the

provisions of this section and regulations under subsection (d) of

this section within 90 days after submission of such proposal. In

any unfavorable ruling, the Secretary shall set forth the reasons

therefor and state whether the Secretary will agree to delegate to

the State if the State meets the conditions set forth in such

ruling.

(d) Promulgation of standards and regulations with respect to

delegation

After consultation with State authorities, the Secretary shall by

rule promulgate, within 12 months after August 13, 1996, standards

and regulations pertaining to the authorities and responsibilities

to be delegated under subsection (a) of this section, including

standards and regulations pertaining to -

(1) audits to be performed;

(2) records and accounts to be maintained;

(3) reporting procedures to be required by States under this

section;

(4) receipt and processing of production and financial reports;

(5) correction of erroneous report data;

(6) performance of automated verification;

(7) issuance of standards and guidelines in order to avoid

duplication of effort;

(8) transmission of report data to the Secretary; and

(9) issuance of demands, subpoenas, and orders to perform

restructured accounting, for royalty management enforcement

purposes.

Such standards and regulations shall be designed to provide

reasonable assurance that a uniform and effective royalty

management system will prevail among the States. The records and

accounts under paragraph (2) shall be sufficient to allow the

Secretary to monitor the performance of any State under this

section.

(e) Revocation; issuance of demand or order by Secretary

If, after notice and opportunity for a hearing, the Secretary

finds that any State to which any authority or responsibility of

the Secretary has been delegated under this section is in violation

of any requirement of this section or any rule thereunder, or that

an affirmative finding by the Secretary under subsection (b) of

this section can no longer be made, the Secretary may revoke such

delegation. If, after providing written notice to a delegated State

and a reasonable opportunity to take corrective action requested by

the Secretary, the Secretary determines that the State has failed

to issue a demand or order to a Federal lessee within the State,

that such failure may result in an underpayment of an obligation

due the United States by such lessee, and that such underpayment

may be uncollected without Secretarial intervention, the Secretary

may issue such demand or order in accordance with the provisions of

this chapter prior to or absent the withdrawal of delegated

authority.

(f) Compensation to State for costs of delegation; allocation of

costs

Subject to appropriations, the Secretary shall compensate any

State for those costs which may be necessary to carry out the

delegated activities under this Section.(!1) Payment shall be made

no less than every quarter during the fiscal year. Compensation to

a State may not exceed the Secretary's reasonably anticipated

expenditure for performance of such delegated activities by the

Secretary. Such costs shall be allocable for the purposes of

section 191(b) of this title to the administration and enforcement

of laws providing for the leasing of any onshore lands or interests

in land owned by the United States. Any further allocation of costs

under section 191(b) of this title made by the Secretary for oil

and gas activities, other than those costs to compensate States for

delegated activities under this chapter, shall be only those costs

associated with onshore oil and gas activities and may not include

any duplication of costs allocated pursuant to the previous

sentence. Nothing in this section affects the Secretary's authority

to make allocations under section 191(b) of this title for non-oil

and gas mineral activities. All moneys received from sales,

bonuses, rentals, royalties, assessments and interest, including

money claimed to be due and owing pursuant to a delegation under

this section, shall be payable and paid to the Treasury of the

United States.

(g) Judicial review

Any action of the Secretary to approve or disapprove a proposal

submitted by a State under this section shall be subject to

judicial review in the United States district court which includes

the capital of the State submitting the proposal.

(h) Existing delegation

Any State operating pursuant to a delegation existing on August

13, 1996, may continue to operate under the terms and conditions of

the delegation, except to the extent that a revision of the

existing agreement is adopted pursuant to this section.

-SOURCE-

(Pub. L. 97-451, title II, Sec. 205, Jan. 12, 1983, 96 Stat. 2459;

Pub. L. 104-185, Sec. 3(a), Aug. 13, 1996, 110 Stat. 1702.)

-COD-

CODIFICATION

August 13, 1996, referred to in subsec. (d), was in the original

"the date of enactment of this section", which was translated as

meaning the date of enactment of Pub. L. 104-185, which amended

this section generally, to reflect the probable intent of Congress.

August 13, 1996, referred to in subsec. (h), was in the original

"the date of enactment of this Act", which was translated as

meaning the date of enactment of Pub. L. 104-185, which amended

this section generally, to reflect the probable intent of Congress.

-MISC1-

AMENDMENTS

1996 - Pub. L. 104-185 amended section generally, substituting

present provisions for provisions which stated in subsec. (a),

authorization of Secretary to delegate to States except permission

of Indian tribe required with respect to Indian lands; subsec. (b),

prerequisites; subsec. (c), promulgation of regulations defining

joint functions; subsec. (d), promulgation of standards and

regulations with respect to delegation; subsec. (e), revocation;

and subsec. (f), compensation to State for costs of delegation.

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by Pub. L. 104-185 applicable with respect to

production of oil and gas after the first day of the month

following Aug. 13, 1996, see section 11 of Pub. L. 104-185, set out

as a note under section 1701 of this title.

APPLICABILITY OF 1996 AMENDMENT

Amendment by Pub. L. 104-185 not applicable to any privately

owned minerals or with respect to Indian lands, see sections 9 and

10 of Pub. L. 104-185, set out as a note under section 1701 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 196, 1702, 1724, 1731a,

1733, 1736 of this title.

-FOOTNOTE-

(!1) So in original. Probably should not be capitalized.

-End-

-CITE-

30 USC Sec. 1736 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

SUBCHAPTER II - STATES AND INDIAN TRIBES

-HEAD-

Sec. 1736. Shared civil penalties

-STATUTE-

An amount equal to 50 per centum of any civil penalty collected

by the Federal Government under this chapter resulting from

activities conducted by a State or Indian tribe pursuant to a

cooperative agreement under section 1732 of this title or a State

under a delegation under section 1735 of this title, shall be

payable to such State or tribe. Such amount shall be deducted from

any compensation due such State or Indian tribe under section 1732

of this title or such State under section 1735 of this title.

-SOURCE-

(Pub. L. 97-451, title II, Sec. 206, Jan. 12, 1983, 96 Stat. 2460.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 196, 1731a of this title.

-End-

-CITE-

30 USC SUBCHAPTER III - GENERAL PROVISIONS 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

SUBCHAPTER III - GENERAL PROVISIONS

-HEAD-

SUBCHAPTER III - GENERAL PROVISIONS

-End-

-CITE-

30 USC Sec. 1751 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

SUBCHAPTER III - GENERAL PROVISIONS

-HEAD-

Sec. 1751. Secretarial authority

-STATUTE-

(a) Prescription of rules and regulations

The Secretary shall prescribe such rules and regulations as he

deems reasonably necessary to carry out this chapter.

(b) Conformity with rulemaking provisions

Rules and regulations issued to implement this chapter shall be

issued in conformity with section 553 of title 5, notwithstanding

section 553(a)(2) of that title.

(c) Contracts with non-Federal Government inspectors, auditors,

etc.; coordination of auditing and enforcement functions

In addition to entering into cooperative agreements or delegation

of authority authorized under this chapter, the Secretary may

contract with such non-Federal Government inspectors, auditors, and

other persons as he deems necessary to aid in carrying out his

functions under this chapter and its implementation. With respect

to his auditing and enforcement functions under this chapter, the

Secretary shall coordinate such functions so as to avoid to the

maximum extent practicable, subjecting lessees, operators, or other

persons to audits or investigations of the same subject matter by

more than one auditing or investigating entity at the same time.

-SOURCE-

(Pub. L. 97-451, title III, Sec. 301, Jan. 12, 1983, 96 Stat.

2460.)

-End-

-CITE-

30 USC Sec. 1752 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

SUBCHAPTER III - GENERAL PROVISIONS

-HEAD-

Sec. 1752. Reports

-STATUTE-

The Secretary shall submit to the Congress an annual report on

the implementation of this chapter. The information to be included

in the report and the format of the report shall be developed by

the Secretary after consulting with the Committees on Natural

Resources of the House of Representatives and on Energy and Natural

Resources of the Senate. The Secretary shall also report on the

progress of the Department in reconciling account balances.

-SOURCE-

(Pub. L. 97-451, title III, Sec. 302, Jan. 12, 1983, 96 Stat. 2461;

Pub. L. 103-437, Sec. 11(a)(2), Nov. 2, 1994, 108 Stat. 4589; Pub.

L. 105-362, title IX, Sec. 901(j)(1), Nov. 10, 1998, 112 Stat.

3290.)

-MISC1-

AMENDMENTS

1998 - Pub. L. 105-362 struck out subsec. (a) designation and

struck out subsec. (b) which read as follows: "Commencing with

fiscal year 1984, the Inspector General of the Department of the

Interior shall conduct a biennial audit of the Federal royalty

management system. The Inspector General shall submit the results

of such audit to the Secretary and to the Congress."

1994 - Subsec. (a). Pub. L. 103-437 substituted "Natural

Resources" for "Interior and Insular Affairs" after "Committees

on".

-CHANGE-

CHANGE OF NAME

Committee on Natural Resources of House of Representatives

treated as referring to Committee on Resources of House of

Representatives by section 1(a) of Pub. L. 104-14, set out as a

note preceding section 21 of Title 2, The Congress.

-MISC2-

TERMINATION OF REPORTING REQUIREMENTS

For termination, effective May 15, 2000, of provisions of law

requiring submittal to Congress of any annual, semiannual, or other

regular periodic report listed in House Document No. 103-7 (in

which a report required under this section is listed on page 111),

see section 3003 of Pub. L. 104-66, as amended, set out as a note

under section 1113 of Title 31, Money and Finance.

STUDY OF THE ADEQUACY OF ROYALTY MANAGEMENT FOR MINERALS ON FEDERAL

AND INDIAN LANDS

Section 303 of Pub. L. 97-451 directed Secretary to study

question of adequacy of royalty management for coal, uranium and

other energy and nonenergy minerals on Federal and Indian lands,

include proposed legislation if Secretary determined that such

legislation was necessary to ensure prompt and proper collection of

revenues owed to the United States, the States and Indian tribes or

Indian allottees from the sale, lease or other disposal of such

minerals, with study to be submitted to Congress not later than one

year from Jan. 12, 1983.

-End-

-CITE-

30 USC Sec. 1753 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

SUBCHAPTER III - GENERAL PROVISIONS

-HEAD-

Sec. 1753. Relation to other laws

-STATUTE-

(a) Supplemental nature of chapter

The penalties and authorities provided in this chapter are

supplemental to, and not in derogation of, any penalties or

authorities contained in any other provision of law.

(b) Responsibilities of Secretary related to minerals on Federal

and Indian lands

Nothing in this chapter shall be construed to reduce the

responsibilities of the Secretary to ensure prompt and proper

collection of revenues from coal, uranium and other energy and

nonenergy minerals on Federal and Indian lands, or to restrain the

Secretary from entering into cooperative agreements or other

appropriate arrangements with States and Indian tribes to share

royalty management responsibilities and activities for such

minerals under existing authorities.

(c) Authority and responsibilities of Inspector General and

Comptroller General unaffected

Nothing in this chapter shall be construed to enlarge, diminish,

or otherwise affect the authority or responsibility of the

Inspector General of the Department of the Interior or of the

Comptroller General of the United States.

(d) Lands and land interests entrusted to Tennessee Valley

Authority unaffected

No provision of this chapter impairs or affects lands and

interests in land entrusted to the Tennessee Valley Authority.

-SOURCE-

(Pub. L. 97-451, title III, Sec. 304, Jan. 12, 1983, 96 Stat. 2461;

Pub. L. 105-362, title IX, Sec. 901(j)(2), Nov. 10, 1998, 112 Stat.

3290.)

-MISC1-

AMENDMENTS

1998 - Subsec. (c). Pub. L. 105-362 substituted "Nothing" for

"Except as expressly provided in section 1752(b) of this title,

nothing".

-End-

-CITE-

30 USC Sec. 1754 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

SUBCHAPTER III - GENERAL PROVISIONS

-HEAD-

Sec. 1754. Funding

-STATUTE-

Effective October 1, 1983, there are hereby authorized to be

appropriated such sums as may be necessary to carry out the

provisions of this chapter, including such sums as may be necessary

for the cooperative agreements, contracts, and delegations

authorized by this chapter: Provided, That nothing in this chapter

shall be construed to affect or impair any authority to enter into

contracts or make payments under any other provision of law.

-SOURCE-

(Pub. L. 97-451, title III, Sec. 306, Jan. 12, 1983, 96 Stat.

2462.)

-End-

-CITE-

30 USC Sec. 1755 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

SUBCHAPTER III - GENERAL PROVISIONS

-HEAD-

Sec. 1755. Statute of limitations

-STATUTE-

Except in the case of fraud, any action to recover penalties

under this chapter shall be barred unless the action is commenced

within 6 years after the date of the act or omission which is the

basis for the action.

-SOURCE-

(Pub. L. 97-451, title III, Sec. 307, Jan. 12, 1983, 96 Stat.

2462.)

-MISC1-

APPLICABILITY

Section no longer applicable with respect to Federal lands, but

applicability of section to Indian leases not affected, see section

8(a) of Pub. L. 104-185, set out as a note under section 1732 of

this title.

-End-

-CITE-

30 USC Sec. 1756 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

SUBCHAPTER III - GENERAL PROVISIONS

-HEAD-

Sec. 1756. Expanded royalty obligations

-STATUTE-

Any lessee is liable for royalty payments on oil or gas lost or

wasted from a lease site when such loss or waste is due to

negligence on the part of the operator of the lease, or due to the

failure to comply with any rule or regulation, order or citation

issued under this chapter or any mineral leasing law.

-SOURCE-

(Pub. L. 97-451, title III, Sec. 308, Jan. 12, 1983, 96 Stat.

2462.)

-End-

-CITE-

30 USC Sec. 1757 01/06/03

-EXPCITE-

TITLE 30 - MINERAL LANDS AND MINING

CHAPTER 29 - OIL AND GAS ROYALTY MANAGEMENT

SUBCHAPTER III - GENERAL PROVISIONS

-HEAD-

Sec. 1757. Severability

-STATUTE-

If any provision of this chapter or the applicability thereof to

any person or circumstances is held invalid, the remainder of this

chapter and the application of such provision to other persons or

circumstances shall not be affected thereby.

-SOURCE-

(Pub. L. 97-451, title III, Sec. 309, Jan. 12, 1983, 96 Stat.

2462.)

-End-