Federarl OIl and Gas Royalty Management Act

§ 1605

TITLE 30—MINERAL LANDS AND MINING

(b), is Pub. L. 94–282, May 11, 1976, 90 Stat. 459, as
amended, which is classified principally to chapter 79
(§ 6601 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the
Code, see Short Title note set out under section 6601 of
Title 42 and Tables.
The Defense Production Act of 1950, referred to in
subsec. (d), is act Sept. 8, 1950, ch. 932, 64 Stat. 798, as
amended, which is classified to section 2061 et seq. of
Title 50, Appendix, War and National Defense. For complete classification of this Act to the Code, see section
2061 of Title 50, Appendix, and Tables.
The Strategic and Critical Materials Stock Piling
Act, referred to in subsec. (d), is act June 7, 1939, ch.
190, as revised generally by Pub. L. 96–41, § 2, July 30,
1979, 93 Stat. 319, which is classified generally to subchapter III (§ 98 et seq.) of chapter 5 of Title 50. For
complete classification of this Act to the Code, see section 98 of Title 50 and Tables.

Sec.

1719.
1720.
1720a.

Civil penalties.
Criminal penalties.
Applicability of civil and criminal penalties
to various uses of Federal or Indian lands
and Outer Continental Shelf.
1721.
Royalty terms and conditions, interest, and
penalties.
1721a.
Adjustments and refunds.
1722.
Injunction and specific enforcement authority.
1723.
Rewards.
1724.
Secretarial and delegated States’ actions and
limitation periods.
1725.
Assessments.
1726.
Alternatives for marginal properties.
SUBCHAPTER II—STATES AND INDIAN TRIBES
1731.
1731a.

CHANGE OF NAME
Reference to the Director of Central Intelligence or
the Director of the Central Intelligence Agency in the
Director’s capacity as the head of the intelligence community deemed to be a reference to the Director of National Intelligence. Reference to the Director of Central Intelligence or the Director of the Central Intelligence Agency in the Director’s capacity as the head of
the Central Intelligence Agency deemed to be a reference to the Director of the Central Intelligence Agency. See section 1081(a), (b) of Pub. L. 108–458, set out as
a note under section 3001 of Title 50, War and National
Defense.
‘‘United States Bureau of Mines’’ substituted for
‘‘Bureau of Mines’’ in subsec. (e)(1), (2) pursuant to section 10(b) of Pub. L. 102–285, set out as a note under section 1 of this title. For provisions relating to closure
and transfer of functions of the United States Bureau
of Mines, see Transfer of Functions note set out under
section 1 of this title.

§ 1605. Applicability to other statutory national
mining and minerals policies
Nothing in this chapter shall be interpreted as
changing in any manner or degree the provisions
of and requirements of section 21a of this title.
For the purposes of achieving the objectives set
forth in section 1602 of this title, the Congress
declares that the President shall direct (1) the
Secretary of the Interior to act immediately
within the Department’s statutory authority to
attain the goals contained in section 21a of this
title and (2) the Executive Office of the President to act immediately to promote the goals
contained in section 21a of this title among the
various departments and agencies.
(Pub. L. 96–479, § 6, Oct. 21, 1980, 94 Stat. 2309.)
CHAPTER 29—OIL AND GAS ROYALTY
MANAGEMENT
Sec.

1701.
1702.

1711.
1712.
1713.
1714.
1715.
1716.
1717.
1718.

Congressional statement of findings and purposes.
Definitions.
SUBCHAPTER I—FEDERAL ROYALTY
MANAGEMENT AND ENFORCEMENT
Duties of Secretary.
Duties of lessees, operators, and motor vehicle transporters.
Required recordkeeping.
Deposit of royalty funds to Indian accounts.
Explanation of payments.
Liabilities and bonding.
Hearings and investigations.
Inspections.

Page 332

1732.
1733.
1734.
1735.
1736.
1751.
1752.
1753.
1754.
1755.
1756.
1757.
1758.
1759.

Application of subchapter.
Application of subchapter to leases of lands
within three miles of seaward boundaries of
coastal States.
Cooperative agreements.
Information.
State suits under Federal law.
Delegation of royalty collections and related
activities.
Shared civil penalties.
SUBCHAPTER III—GENERAL PROVISIONS
Secretarial authority.
Reports.
Relation to other laws.
Funding.
Statute of limitations.
Expanded royalty obligations.
Severability.
Use of royalty-in-kind revenue by Minerals
Management Service.
Fees and charges.

§ 1701. Congressional statement of findings and
purposes
(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;

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TITLE 30—MINERAL LANDS AND MINING

(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.
(Pub. L. 97–451, § 2, Jan. 12, 1983, 96 Stat. 2448.)
EFFECTIVE DATE OF 1996 AMENDMENT
Pub. L. 104–185, § 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
Pub. L. 97–451, title III, § 305, Jan. 12, 1983, 96 Stat.
2461, 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, § 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
Pub. L. 97–451, § 1, Jan. 12, 1983, 96 Stat. 2447, 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, § 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, § 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, § 12, Aug. 13, 1996, 110 Stat. 1717, provided that: ‘‘Nothing in this Act [see Short Title of 1996

§ 1702

Amendment note above] shall be construed to give a
State a property right or interest in any Federal lease
or land.’’

§ 1702. Definitions
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;

§ 1702

TITLE 30—MINERAL LANDS AND MINING

(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

Page 334

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 pay-

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TITLE 30—MINERAL LANDS AND MINING

ment 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.
(Pub. L. 97–451, § 3, Jan. 12, 1983, 96 Stat. 2448;
Pub. L. 92–203, § 29(f)(1), as added Pub. L. 100–241,
§ 15, Feb. 3, 1988, 101 Stat. 1813; Pub. L. 104–185,
§ 2, Aug. 13, 1996, 110 Stat. 1700; Pub. L. 104–200,
§ 1(1), Sept. 22, 1996, 110 Stat. 2421.)
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.
AMENDMENTS
1996—Par. (7). Pub. L. 104–185, § 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, § 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, § 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
Pub. L. 92–203, § 29(f)(2), as added by Pub. L. 100–241,
§ 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

§ 1711

lands, see sections 9 and 10 of Pub. L. 104–185, set out
as a note under section 1701 of this title.
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.

SUBCHAPTER I—FEDERAL ROYALTY
MANAGEMENT AND ENFORCEMENT
§ 1711. Duties of Secretary
(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 chapters 1 to 11 of title 40 and division C (except sections 3302, 3307(e), 3501(b),
3509, 3906, 4710, and 4711) of subtitle I of title 41,
except that the Secretary may not enter into a
contract or other arrangement with any independent certified public accountant to audit any

§ 1712

TITLE 30—MINERAL LANDS AND MINING

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.
(Pub. L. 97–451, title I, § 101, Jan. 12, 1983, 96 Stat.
2449.)
CODIFICATION
In subsec. (c)(2), ‘‘chapters 1 to 11 of title 40 and division C (except sections 3302, 3307(e), 3501(b), 3509, 3906,
4710, and 4711) of subtitle I of title 41’’ substituted for
‘‘the Federal Property and Administrative Services Act
of 1949 (41 U.S.C. 252)’’ on authority of Pub. L. 107–217,
§ 5(c), Aug. 21, 2002, 116 Stat. 1303, which Act enacted
Title 40, Public Buildings, Property, and Works, and
Pub. L. 111–350, § 6(c), Jan. 4, 2011, 124 Stat. 3854, which
Act enacted Title 41, Public Contracts.

§ 1712. Duties of lessees, operators, and motor vehicle transporters
(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

Page 336

(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.
(Pub. L. 97–451, title I, § 102, Jan. 12, 1983, 96 Stat.
2450; Pub. L. 104–185, § 6(g), Aug. 13, 1996, 110 Stat.
1715.)
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.

§ 1713. Required recordkeeping
(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

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TITLE 30—MINERAL LANDS AND MINING

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.
(Pub. L. 97–451, title I, § 103, Jan. 12, 1983, 96 Stat.
2451.)
§ 1714. Deposit of royalty funds to Indian accounts
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.
(Pub. L. 97–451, title I, § 104(b), Jan. 12, 1983, 96
Stat. 2452.)
EFFECTIVE DATE
Pub. L. 97–451, title I, § 104(c), Jan. 12, 1983, 96 Stat.
2452, 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.’’

§ 1715. Explanation of payments
(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.
(Pub. L. 97–451, title I, § 105, Jan. 12, 1983, 96 Stat.
2452.)

§ 1717

§ 1716. Liabilities and bonding
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.
(Pub. L. 97–451, title I, § 106, Jan. 12, 1983, 96 Stat.
2452.)
§ 1717. Hearings and investigations
(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.

§ 1718

TITLE 30—MINERAL LANDS AND MINING

(Pub. L. 97–451, title I, § 107, Jan. 12, 1983, 96 Stat.
2452.)
§ 1718. Inspections
(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.
(Pub. L. 97–451, title I, § 108, Jan. 12, 1983, 96 Stat.
2453.)
§ 1719. Civil penalties
(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
1 See

References in Text note below.

Page 338

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), 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
2 So

in original. Probably should be followed by a comma.

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TITLE 30—MINERAL LANDS AND MINING

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 this 3 subsection (a) 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) 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), or
(2) after a court in an action brought under
subsection (j) 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). Judgment by the court shall include an order to pay.
(l) Nonliability for leases automatically terminated
No person shall be liable for a civil penalty
under subsection (a) or (b) for failure to pay any
rental for any lease automatically terminated
pursuant to section 188 of this title.
(Pub. L. 97–451, title I, § 109, Jan. 12, 1983, 96 Stat.
2454.)
REFERENCES IN TEXT
Section 1712(a) of this title, referred to in subsec.
(a)(2), was amended generally by Pub. L. 104–185, § 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.

§ 1720. Criminal penalties
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.
(Pub. L. 97–451, title I, § 110, Jan. 12, 1983, 96 Stat.
2455.)
§ 1720a. Applicability of civil and criminal penalties to various uses of Federal or Indian
lands and Outer Continental Shelf
Notwithstanding any other provision of law,
Sections 1 1719 and 1720 2 of this title shall, for
fiscal year 2010 and each fiscal year thereafter,
apply to any lease authorizing exploration for or
development of coal, any other solid mineral, or
any geothermal resource on any Federal or Indian lands and any lease, easement, right of
way, or other agreement, regardless of form, for
use of the Outer Continental Shelf or any of its
resources under sections 1337(k) and 1337(p) of
title 43 to the same extent as if such lease, easement, right of way, or other agreement, regardless of form, were an oil and gas lease, except
that in such cases the term ‘‘royalty payment’’
shall include any payment required by such
lease, easement, right of way or other agreement, regardless of form, or by applicable regulation.
(Pub. L. 111–88, div. A, title I, § 114, Oct. 30, 2009,
123 Stat. 2928.)
REFERENCES IN TEXT
Sections 1719 and 1720 of this title, referred to in text,
was in the original ‘‘Sections 109 and 110 of the Federal
Oil and Gas Royalty Management Act’’ and was translated as meaning sections 109 and 110 of the Federal Oil
and Gas Royalty Management Act of 1982, to reflect the
probable intent of Congress.
CODIFICATION
Section was enacted as part of the Department of the
Interior, Environment, and Related Agencies Appropriations Act, 2010, and not as part of the Federal Oil
and Gas Royalty Management Act of 1982 which comprises this chapter.

§ 1721. Royalty terms and conditions, interest,
and penalties
(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
1 So

3 So

in original.

§ 1721

in original. Probably should not be capitalized.
References in Text note below.

2 See

§ 1721

TITLE 30—MINERAL LANDS AND MINING

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 a rate equal to the sum of the Federal shortterm rate determined under section 6621(b) of
title 26 plus 1 percentage point. 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

Page 340

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
(1) In general
Interest shall not be paid on any excessive
overpayment.
(2) Excessive overpayment defined
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.

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TITLE 30—MINERAL LANDS AND MINING

(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.
(l) 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 120day 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.
(Pub. L. 97–451, title I, § 111, Jan. 12, 1983, 96 Stat.
2455; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat.
2095; Pub. L. 104–185, § 6(a)–(e), (h)(1), Aug. 13,
1996, 110 Stat. 1712–1715; Pub. L. 104–200, § 1(3)–(6),
Sept. 22, 1996, 110 Stat. 2421; Pub. L. 113–67, div.
A, title III, § 305(a), Dec. 26, 2013, 127 Stat. 1183;
Pub. L. 113–291, div. B, title XXX, § 3021(c)(2),
Dec. 19, 2014, 128 Stat. 3761.)

§ 1721

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 (§ 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 (§ 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
(§ 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.
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.
AMENDMENTS
2014—Subsec. (h). Pub. L. 113–291 substituted ‘‘a rate
equal to the sum of the Federal short-term rate determined under section 6621(b) of title 26 plus 1 percentage
point.’’ for ‘‘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).’’
2013—Subsec. (i). Pub. L. 113–67 inserted subsec. heading; designated first sentence as par. (1), inserted heading, and substituted ‘‘Interest shall not be paid on any
excessive overpayment.’’ for ‘‘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.’’; and designated second sentence as par. (2) and inserted heading.
1996—Pub. L. 104–185, § 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, § 6(a), added subsec. (h).
Subsec. (i). Pub. L. 104–200, § 1(3), inserted ‘‘not’’ after
‘‘receiving interest, interest shall’’.
Pub. L. 104–185, § 6(b), added subsec. (i).
Subsec. (j). Pub. L. 104–200, § 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, § 6(c), added subsec. (j).
Subsec. (k). Pub. L. 104–185, § 6(d), added subsec. (k).
Subsec. (k)(4). Pub. L. 104–200, § 1(6), substituted ‘‘additional royalties due’’ for ‘‘additional royalties dues’’.
Subsec. (l). Pub. L. 104–185, § 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 2013 AMENDMENT
Pub. L. 113–67, div. A, title III, § 305(b), Dec. 26, 2013,
127 Stat. 1183, provided that: ‘‘The amendment made by
subsection (a) [amending this section] shall take effect
on July 1, 2014.’’
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

§ 1721a

TITLE 30—MINERAL LANDS AND MINING

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.
PAYMENT OF INTEREST CHARGES FROM CURRENT
RECEIPTS
Pub. L. 108–447, div. E, title I, Dec. 8, 2004, 118 Stat.
3053, as amended by Pub. L. 110–161, div. F, title I, Dec.
26, 2007, 121 Stat. 2109, provided in part: ‘‘That in fiscal
year 2005 and thereafter, notwithstanding 30 U.S.C.
191(a) and 43 U.S.C. 1338, the Secretary shall pay
amounts owed to States and Indian accounts under the
provisions of 30 U.S.C. 1721(b) and (d) from amounts received as current receipts from bonuses, royalties, interest collected from lessees and designees, and rentals
of the public lands and the outer continental shelf
under 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.’’

§ 1721a. Adjustments and refunds
(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 six1 So

in original. Probably should be ‘‘principal’’.

Page 342

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.
(Pub. L. 97–451, title I, § 111A, as added Pub. L.
104–185, § 5(a), Aug. 13, 1996, 110 Stat. 1710.)
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 (§ 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.

Page 343

TITLE 30—MINERAL LANDS AND MINING

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
(§ 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.
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.

§ 1722. Injunction and specific enforcement authority
(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) 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.
(Pub. L. 97–451, title I, § 112, Jan. 12, 1983, 96 Stat.
2456.)
§ 1723. Rewards
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.
(Pub. L. 97–451, title I, § 113, Jan. 12, 1983, 96 Stat.
2456.)
§ 1724. Secretarial and delegated States’ actions
and limitation periods
(a) In general
The respective duties, responsibilities, and activities with respect to a lease shall be per-

§ 1724

formed 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) 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

§ 1724

TITLE 30—MINERAL LANDS AND MINING

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 nec-

Page 344

essary 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) 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

Page 345

TITLE 30—MINERAL LANDS AND MINING

‘‘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) 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

§ 1724

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). 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

§ 1725

TITLE 30—MINERAL LANDS AND MINING

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 33month 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.

Page 346

(l) 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.
(Pub. L. 97–451, title I, § 115, as added Pub. L.
104–185, § 4(a), Aug. 13, 1996, 110 Stat. 1704; amended Pub. L. 104–200, § 1(2), Sept. 22, 1996, 110 Stat.
2421.)
CODIFICATION
Pub. L. 104–185, § 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.
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.

§ 1725. Assessments
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.
(Pub. L. 97–451, title I, § 116, as added Pub. L.
104–185, § 6(f)(1), Aug. 13, 1996, 110 Stat. 1714.)
CODIFICATION
Pub. L. 104–185, § 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.
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

Page 347

TITLE 30—MINERAL LANDS AND MINING

10 of Pub. L. 104–185, set out as an Applicability of 1996
Amendment note under section 1701 of this title.

§ 1726. Alternatives for marginal properties
(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) or regulatory relief under subsection
(c). 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),
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.

§ 1731a

(3) Satisfaction of obligation
Except as may be provided in the terms and
conditions established by the Secretary under
subsection (b), 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): 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.
(Pub. L. 97–451, title I, § 117, as added Pub. L.
104–185, § 7(a), Aug. 13, 1996, 110 Stat. 1715; amended Pub. L. 104–200, § 1(7), Sept. 22, 1996, 110 Stat.
2421.)
CODIFICATION
Pub. L. 104–185, § 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.
AMENDMENTS
1996—Subsec. (b)(1)(C). Pub. L. 104–200, § 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.

SUBCHAPTER II—STATES AND INDIAN
TRIBES
§ 1731. Application of subchapter
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.
(Pub. L. 97–451, title II, § 201, Jan. 12, 1983, 96
Stat. 2457.)
§ 1731a. Application of subchapter to leases of
lands within three miles of seaward boundaries of coastal States
For fiscal year 1990 and each fiscal year thereafter, notwithstanding the provisions of section

§ 1732

TITLE 30—MINERAL LANDS AND MINING

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.
(Pub. L. 101–121, title I, Oct. 23, 1989, 103 Stat.
711.)
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.
SIMILAR PROVISIONS
Similar provisions were contained in Pub. L. 100–446,
title I, Sept. 27, 1988, 102 Stat. 1791.

§ 1732. Cooperative agreements
(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.

Page 348

(Pub. L. 97–451, title II, § 202, Jan. 12, 1983, 96
Stat. 2457.)
CODIFICATION
In subsec. (c), ‘‘chapter 63 of title 31’’ substituted for
‘‘the Federal Grant and Cooperative Agreement Act of
1977’’ on authority of Pub. L. 97–258, § 4(b), Sept. 13, 1982,
96 Stat. 1067, the first section of which Act enacted
Title 31, Money and Finance.
APPLICABILITY
Pub. L. 104–185, § 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.’’

§ 1733. Information
(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.

Page 349

TITLE 30—MINERAL LANDS AND MINING

(Pub. L. 97–451, title II, § 203, Jan. 12, 1983, 96
Stat. 2458.)
§ 1734. State suits under Federal law
(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) 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) shall be deposited
in the Treasury of the United States in the same
manner, and subject to the same requirements,

§ 1735

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.
(Pub. L. 97–451, title II, § 204, Jan. 12, 1983, 96
Stat. 2458.)
§ 1735. Delegation of royalty collections and related activities
(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)
within 90 days after submission of such proposal.
In any unfavorable ruling, the Secretary shall
set forth the reasons therefor and state whether

§ 1735

TITLE 30—MINERAL LANDS AND MINING

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), 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) 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 expendi1 So

in original. Probably should not be capitalized.

Page 350

ture 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.
(Pub. L. 97–451, title II, § 205, Jan. 12, 1983, 96
Stat. 2459; Pub. L. 104–185, § 3(a), Aug. 13, 1996, 110
Stat. 1702.)
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.
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

Page 351

TITLE 30—MINERAL LANDS AND MINING

lands, see sections 9 and 10 of Pub. L. 104–185, set out
as a note under section 1701 of this title.

§ 1736. Shared civil penalties
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. Any payments under this section shall
be reduced by an amount equal to any payments
provided or due to such State or Indian tribe
under the cooperative agreement or delegation,
as applicable, during the fiscal year in which the
civil penalty is received, up to the total amount
provided or due for that fiscal year.
(Pub. L. 97–451, title II, § 206, Jan. 12, 1983, 96
Stat. 2460; Pub. L. 113–76, div. G, title I, § 121,
Jan. 17, 2014, 128 Stat. 314.)
AMENDMENTS
2014—Pub. L. 113–76 substituted ‘‘Any payments under
this section shall be reduced by an amount equal to any
payments provided or due to such State or Indian tribe
under the cooperative agreement or delegation, as applicable, during the fiscal year in which the civil penalty is received, up to the total amount provided or due
for that fiscal year.’’ for ‘‘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.’’

SUBCHAPTER III—GENERAL PROVISIONS
§ 1751. Secretarial authority
(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.
(Pub. L. 97–451, title III, § 301, Jan. 12, 1983, 96
Stat. 2460.)
§ 1752. Reports
The Secretary shall submit to the Congress an
annual report on the implementation of this

§ 1753

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.
(Pub. L. 97–451, title III, § 302, Jan. 12, 1983, 96
Stat. 2461; Pub. L. 103–437, § 11(a)(2), Nov. 2, 1994,
108 Stat. 4589; Pub. L. 105–362, title IX, § 901(j)(1),
Nov. 10, 1998, 112 Stat. 3290.)
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’’.
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
Pub. L. 97–451, title III, § 303, Jan. 12, 1983, 96 Stat.
2461, 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.

§ 1753. Relation to other laws
(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 Gen-

TITLE 30—MINERAL LANDS AND MINING

§ 1754

eral 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.
(Pub. L. 97–451, title III, § 304, Jan. 12, 1983, 96
Stat. 2461; Pub. L. 105–362, title IX, § 901(j)(2),
Nov. 10, 1998, 112 Stat. 3290.)
AMENDMENTS
1998—Subsec. (c). Pub. L. 105–362 substituted ‘‘Nothing’’ for ‘‘Except as expressly provided in section
1752(b) of this title, nothing’’.

Page 352

or under its authority to transfer oil to the
Strategic Petroleum Reserve, use a portion of
the revenues from royalty-in-kind sales, without
regard to fiscal year limitation, to pay for
transportation to wholesale market centers or
upstream pooling points, to process or otherwise
dispose of royalty production taken in kind, and
to recover MMS transportation costs, salaries,
and other administrative costs directly related
to the royalty-in-kind program.
(Pub. L. 109–54, title I, Aug. 2, 2005, 119 Stat. 512.)
REFERENCES IN TEXT
MMS, referred to in text, means the Minerals Management Service.
CODIFICATION

§ 1754. Funding
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.
(Pub. L. 97–451, title III, § 306, Jan. 12, 1983, 96
Stat. 2462.)
§ 1755. Statute of limitations
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.
(Pub. L. 97–451, title III, § 307, Jan. 12, 1983, 96
Stat. 2462.)
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.

§ 1756. Expanded royalty obligations
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.
(Pub. L. 97–451, title III, § 308, Jan. 12, 1983, 96
Stat. 2462.)
§ 1757. Severability
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.

Section was enacted as part of the Department of the
Interior, Environment, and Related Agencies Appropriations Act, 2006, and not as part of the Federal Oil
and Gas Royalty Management Act of 1982 which comprises this chapter.
TRANSFER OF FUNCTIONS
The Minerals Management Service was abolished and
functions divided among the Office of Natural Resources Revenue, the Bureau of Ocean Energy Management, and the Bureau of Safety and Environmental Enforcement. See Secretary of the Interior Orders No. 3299
of May 19, 2010, and No. 3302 of June 18, 2010, and chapters II, V, and XII of title 30, Code of Federal Regulations, as revised by final rules of the Department of the
Interior at 75 F.R. 61051 and 76 F.R. 64432.
SIMILAR PROVISIONS
Similar provisions were contained in the following
prior appropriation acts:
Pub. L. 108–447, div. E, title I, Dec. 8, 2004, 118 Stat.
3053.
Pub. L. 108–108, title I, Nov. 10, 2003, 117 Stat. 1255.
Pub. L. 108–7, div. F, title I, Feb. 20, 2003, 117 Stat. 229.
Pub. L. 107–63, title I, Nov. 5, 2001, 115 Stat. 428.
Pub. L. 106–291, title I, Oct. 11, 2000, 114 Stat. 932.

§ 1759. Fees and charges
In fiscal year 2009 and each fiscal year thereafter, fees and charges authorized by section 9701
of title 31 may be collected only to the extent
provided in advance in appropriations Acts.
(Pub. L. 111–8, div. E, title I, Mar. 11, 2009, 123
Stat. 711.)
CODIFICATION
Section was enacted as part of the Department of the
Interior, Environment, and Related Agencies Appropriations Act, 2009, and also as part of the Omnibus Appropriations Act, 2009, and not as part of the Federal
Oil and Gas Royalty Management Act of 1982 which
comprises this chapter. Section is based on a proviso in
the par. under the headings ‘‘MINERALS MANAGEMENT
SERVICE’’ and ‘‘ROYALTY AND OFFSHORE MINERALS MANAGEMENT’’ in title I of div. E of Pub. L. 111–8.

CHAPTER 30—NATIONAL CRITICAL
MATERIALS COUNCIL
Sec.

1801.

(Pub. L. 97–451, title III, § 309, Jan. 12, 1983, 96
Stat. 2462.)

1802.

§ 1758. Use of royalty-in-kind revenue by Minerals Management Service

1803.
1804.

That in fiscal year 2006 and thereafter, the
MMS may under the royalty-in-kind program,

1805.

Congressional findings and declaration of purposes.
Establishment of National Critical Materials
Council.
Responsibilities and authorities of Council.
Program and policy for advanced materials
research and technology.
Innovation in basic and advanced materials
industries.