TITLE 30--MINERAL LANDS AND MINING
CHAPTER 29--OIL AND GAS ROYALTY MANAGEMENT
Sec. 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;
(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, Sec. 2, Jan. 12, 1983, 96 Stat. 2448.)
Sec. 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;
(13) ``production'' means those activities which take place for
the removal of oil or gas, including such removal, field operations,
transfer of oil or gas off the lease site, operation monitoring,
maintenance, and workover drilling;
(14) ``royalty'' means any payment based on the value or volume
of production which is due to the United States or an Indian tribe
or an Indian allottee on production of oil or gas from the Outer
Continental Shelf, Federal, or Indian lands, or any minimum royalty
owed to the United States or an Indian tribe or an Indian allottee
under any provision of a lease;
(15) ``Secretary'' means the Secretary of the Interior or his
designee;
(16) ``State'' means the several States of the Union, the
District of Columbia, Puerto Rico, the territories and possessions
of the United States, and the Trust Territory of the Pacific
Islands;
(17) ``adjustment'' means an amendment to a previously filed
report on an obligation, and any additional payment or credit, if
any, applicable thereto, to rectify an underpayment or overpayment
on an obligation;
(18) ``administrative proceeding'' means any Department of the
Interior agency process in which a demand, decision or order issued
by the Secretary or a delegated State is subject to appeal or has
been appealed;
(19) ``assessment'' means any fee or charge levied or imposed by
the Secretary or a delegated State other than--
(A) the principal amount of any royalty, minimum royalty,
rental bonus, net profit share or proceed of sale;
(B) any interest; or
(C) any civil or criminal penalty;
(20) ``commence'' means--
(A) with respect to a judicial proceeding, the service of a
complaint, petition, counterclaim, cross claim, or other
pleading seeking affirmative relief or seeking credit or
recoupment: Provided, That if the Secretary commences a judicial
proceeding against a designee, the Secretary shall give notice
of that commencement to the lessee who designated the designee,
but the Secretary is not required to give notice to other
lessees who may be liable pursuant to section 1712(a) of this
title, for the obligation that is the subject of the judicial
proceeding; or
(B) with respect to a demand, the receipt by the Secretary
or a delegated State or a lessee or its designee (with written
notice to the lessee who designated the designee) of the demand;
(21) ``credit'' means the application of an overpayment (in
whole or in part) against an obligation which has become due to
discharge, cancel or reduce the obligation;
(22) ``delegated State'' means a State which, pursuant to an
agreement or agreements under section 1735 of this title, performs
authorities, duties, responsibilities, or activities of the
Secretary;
(23) ``demand'' means--
(A) an order to pay issued by the Secretary or the
applicable delegated State to a lessee or its designee (with
written notice to the lessee who designated the designee) that
has a reasonable basis to conclude that the obligation in the
amount of the demand is due and owing; or
(B) a separate written request by a lessee or its designee
which asserts an obligation due the lessee or its designee that
provides a reasonable basis to conclude that the obligation in
the amount of the demand is due and owing, but does not mean any
royalty or production report, or any information contained
therein, required by the Secretary or a delegated State;
(24) ``designee'' means the person designated by a lessee
pursuant to section 1712(a) of this title, with such written
designation effective on the date such designation is received by
the Secretary and remaining in effect until the Secretary receives
notice in writing that the designation is modified or terminated;
(25) ``obligation'' means--
(A) any duty of the Secretary or, if applicable, a delegated
State--
(i) to take oil or gas royalty in kind; or
(ii) to pay, refund, offset, or credit monies including
(but not limited to)--
(I) the principal amount of any royalty, minimum
royalty, rental, bonus, net profit share or proceed of
sale; or
(II) any interest; and
(B) any duty of a lessee or its designee (subject to the
provisions of section 1712(a) of this title)--
(i) to deliver oil or gas royalty in kind; or
(ii) to pay, offset or credit monies including (but not
limited to)--
(I) the principal amount of any royalty, minimum
royalty, rental, bonus, net profit share or proceed of
sale;
(II) any interest;
(III) any penalty; or
(IV) any assessment,
which arises from or relates to any lease administered by the
Secretary for, or any mineral leasing law related to, the
exploration, production and development of oil or gas on
Federal lands or the Outer Continental Shelf;
(26) ``order to pay'' means a written order issued by the
Secretary or the applicable delegated State to a lessee or its
designee (with notice to the lessee who designated the designee)
which--
(A) asserts a specific, definite, and quantified obligation
claimed to be due, and
(B) specifically identifies the obligation by lease,
production month and monetary amount of such obligation claimed
to be due and ordered to be paid, as well as the reason or
reasons such obligation is claimed to be due, but such term does
not include any other communication or action by or on behalf of
the Secretary or a delegated State;
(27) ``overpayment'' means any payment by a lessee or its
designee in excess of an amount legally required to be paid on an
obligation and includes the portion of any estimated payment for a
production month that is in excess of the royalties due for that
month;
(28) ``payment'' means satisfaction, in whole or in part, of an
obligation;
(29) ``penalty'' means a statutorily authorized civil fine
levied or imposed for a violation of this chapter, any mineral
leasing law, or a term or provision of a lease administered by the
Secretary;
(30) ``refund'' means the return of an overpayment;
(31) ``State concerned'' means, with respect to a lease, a State
which receives a portion of royalties or other payments under the
mineral leasing laws from such lease;
(32) ``underpayment'' means any payment or nonpayment by a
lessee or its designee that is less than the amount legally required
to be paid on an obligation; and
(33) ``United States'' means the United States Government and
any department, agency, or instrumentality thereof, the several
States, the District of Columbia, and the territories of the United
States.
(Pub. L. 97-451, Sec. 3, Jan. 12, 1983, 96 Stat. 2448; Pub. L. 92-203,
Sec. 29(f)(1), as added Pub. L. 100-241, Sec. 15, Feb. 3, 1988, 101
Stat. 1813; Pub. L. 104-185, Sec. 2, Aug. 13, 1996, 110 Stat. 1700; Pub.
L. 104-200, Sec. 1(1), Sept. 22, 1996, 110 Stat. 2421.)
TITLE 30--MINERAL LANDS AND MINING
CHAPTER 29--OIL AND GAS ROYALTY MANAGEMENT
SUBCHAPTER I--FEDERAL ROYALTY MANAGEMENT AND ENFORCEMENT
Sec. 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 the
Federal Property and Administrative Services Act of 1949 \1\ (41 U.S.C.
252), except that the Secretary may not enter into a contract or other
arrangement with any independent certified public accountant to audit
any lessee or operator where such lessee or operator is a primary audit
client of such certified public accountant.
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\1\ See References in Text note below.
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(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, Sec. 101, Jan. 12, 1983, 96 Stat. 2449.)
References in Text
The Federal Property and Administrative Services Act of 1949,
referred to in subsec. (c)(2), is act June 30, 1949, ch. 288, 63 Stat.
377, as amended. Except for title III of the Act, which is classified
generally to subchapter IV (Sec. 251 et seq.) of chapter 4 of Title 41,
Public Contracts, the Act was repealed and reenacted by Pub. L. 107-217,
Secs. 1, 6(b), Aug. 21, 2002, 116 Stat. 1062, 1304, as chapters 1 to
11 of Title 40, Public Buildings, Property, and Works.
Sec. 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
(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, Sec. 102, Jan. 12, 1983, 96 Stat. 2450; Pub.
L. 104-185, Sec. 6(g), Aug. 13, 1996, 110 Stat. 1715.)
Sec. 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 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, Sec. 103, Jan. 12, 1983, 96 Stat. 2451.)
Sec. 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, Sec. 104(b), Jan. 12, 1983, 96 Stat. 2452.)
Sec. 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, Sec. 105, Jan. 12, 1983, 96 Stat. 2452.)
Sec. 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, Sec. 106, Jan. 12, 1983, 96 Stat. 2452.)
Sec. 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.
(Pub. L. 97-451, title I, Sec. 107, Jan. 12, 1983, 96 Stat. 2452.)
Sec. 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, Sec. 108, Jan. 12, 1983, 96 Stat. 2453.)
Sec. 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
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\1\ See References in Text note below.
shall be liable for a penalty of up to $500 per violation for each day
such violation continues, dating from the date of such notice or report.
A penalty under this subsection may not be applied to any person who is
otherwise liable for a violation of paragraph (1) if:
(A) the violation was discovered and reported to the Secretary
or his authorized representative by the liable person and corrected
within 20 days after such report or such longer time as the
Secretary may agree to; or
(B) after the due notice of violation required in paragraph (1)
has been given to such person by the Secretary or his authorized
representative, such person has corrected the violation within 20
days of such notification or such longer time as the Secretary may
agree to.
(b) Failure to take corrective action
If corrective action in not taken within 40 days or a longer period
as the Secretary may agree to, after due notice or the report referred
to in subsection (a)(1) of this section, such person shall be liable for
a civil penalty of not more than $5,000 per violation for each day such
violation continues, dating from the date of such notice or report.
(c) Failure to make royalty payment; failure to permit lawful entry,
inspection, or audit; failure to notify Secretary of well
production
Any person who--
(1) knowingly or willfully fails to make any royalty payment by
the date as specified by statute, regulation, order or terms of the
lease;
(2) fails or refuses to permit lawful entry, inspection, or
audit; or
(3) knowingly or willfully fails or refuses to comply with
section 1712(b)(3) of this title, shall be liable for a penalty of up to $10,000 per violation for each
day such violation continues.
(d) False information; unauthorized removal, etc., of oil or gas;
purchase, sale, etc., of stolen oil or gas
Any person who--
(1) knowingly or willfully prepares, maintains, or submits
false, inaccurate, or misleading reports, notices, affidavits,
records, data, or other written information;
(2) knowingly or willfully takes or removes, transports, uses or
diverts any oil or gas from any lease site without having valid
legal authority to do so; or
(3) purchases, accepts, sells, transports, or conveys to
another, any oil or gas knowing or having reason to know that such
oil or gas was stolen or unlawfully removed or diverted,
shall be liable for a penalty of up to $25,000 per violation for each
day such violation continues.
(e) Hearing
No penalty under this section shall be assessed until the person
charged with a violation has been given the opportunity for a hearing on
the record.
(f) Deduction of penalty from sums owed by United States
The amount of any penalty under this section, as finally determined
\2\ may be deducted from any sums owing by the United States to the
person charged.
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\2\ So in original. Probably should be followed by a comma.
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(g) Compromise or reduction of penalties
On a case-by-case basis the Secretary may compromise or reduce civil
penalties under this section.
(h) Notice
Notice under subsection (a) of this section shall be by personal
service by an authorized representative of the Secretary or by
registered mail. Any person may, in the manner prescribed by the
Secretary, designate a representative to receive any notice under this
subsection.
(i) Reasons on record for amount of penalty
In determining the amount of such penalty, or whether it should be
remitted or reduced, and in what amount, the Secretary shall state on
the record the reasons for his determinations.
(j) Review
Any person who has requested a hearing in accordance with subsection
(e) of this section within the time the Secretary has prescribed for
such a hearing and who is aggrieved by a final order of the Secretary
under this section may seek review of such order in the United States
district court for the judicial district in which the violation
allegedly took place. Review by the district court shall be only on the
administrative record and not de novo. Such an action shall be barred
unless filed within 90 days after the Secretary's final order.
(k) Failure to pay penalty
If any person fails to pay an assessment of a civil penalty under
this chapter--
(1) after the order making the assessment has become a final
order and if such person does not file a petition for judicial
review of the order in accordance with subsection (j) of this
section, or
(2) after a court in an action brought under subsection (j) of
this section has entered a final judgment in favor of the Secretary,
the court shall have jurisdiction to award the amount assessed plus
interest from the date of the expiration of the 90-day period referred
to in subsection (j) of this section. Judgment by the court shall
include an order to pay.
(l) Nonliability for leases automatically terminated
No person shall be liable for a civil penalty under subsection (a)
or (b) of this section for failure to pay any rental for any lease
automatically terminated pursuant to section 188 of this title.
(Pub. L. 97-451, title I, Sec. 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, Sec. 6(g), Aug. 13, 1996, 110
Stat. 1715, and, as so amended, no longer contains a par. (2). See
section 1712(a) of this title.
Sec. 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, Sec. 110, Jan. 12, 1983, 96 Stat. 2455.)
Sec. 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
interest charge computed at the rate applicable under section 6621 of
title 26.
(c) Deposit in royalty accounts of charges on royalties due and owing
Indians
All interest charges collected under this chapter or under other
applicable laws because of nonpayment, late payment or underpayment of royalties due and owing an
Indian tribe or an Indian allottee shall be deposited to the same
account as the royalty with respect to which such interest is paid.
(d) Charge on late deposit of royalty fund to an Indian account
Any deposit of royalty funds made by the Secretary to an Indian
account which is not made by the date required under section 1714 of
this title shall include an interest charge computed at the rate
applicable under section 6621 of title 26.
(e) Nonliability of States for Secretary's failure to comply with the
Emergency Petroleum Allocation Act of 1973 or regulations
thereunder
Notwithstanding any other provision of law, no State will be
assessed for any interest or penalties found to be due against the
Secretary for failure to comply with the Emergency Petroleum Allocation
Act of 1973 [15 U.S.C. 751 et seq.] or regulation of the Secretary of
Energy thereunder concerning crude oil certification or pricing with
respect to crude oil taken by the Secretary in kind as royalty. Any
State share of an overcharge, resulting from such failure to comply,
shall be assessed against moneys found to be due and owing to such State
as a result of audits of royalty accounts for transactions which took
place prior to January 12, 1983, except that if after the completion of
such audits, sufficient moneys have not been found due and owing to any
State, the State shall be assessed the balance of that State's share of
the overcharge.
(f) Limitation on interest charged
Interest shall be charged under this section only for the number of
days a payment is late.
(g) Omitted
(h) Lessee or designee interest
Interest shall be allowed and paid or credited on any overpayment,
with such interest to accrue from the date such overpayment was made, at
the rate obtained by applying the provisions of subparagraphs (A) and
(B) of section 6621(a)(1) of title 26, but determined without regard to
the sentence following subparagraph (B) of section 6621(a)(1). Interest
which has accrued on any overpayment may be applied to reduce an
underpayment. This subsection applies to overpayments made later than
six months after August 13, 1996, or September 1, 1996, whichever is
later. Such interest shall be paid from amounts received as current
receipts from sales, bonuses, royalties (including interest charges
collected under this section) and rentals of the public lands and the
Outer Continental Shelf under the provisions of the Mineral Leasing Act
[30 U.S.C. 181 et seq.], and the Outer Continental Shelf Lands Act [43
U.S.C. 1331 et seq.], which are not payable to a State or the
Reclamation Fund. The portion of any such interest payment attributable
to any amounts previously disbursed to a State, the Reclamation Fund, or
any other recipient designated by law shall be deducted from the next
disbursements to that recipient made under the applicable law. Such
amounts deducted from subsequent disbursements shall be credited to
miscellaneous receipts in the Treasury.
(i) Limitation on interest
Upon a determination by the Secretary that an excessive overpayment
(based upon all obligations of a lessee or its designee for a given
reporting month) was made for the sole purpose of receiving interest,
interest shall not be paid on the excessive amount of such overpayment.
For purposes of this chapter, an ``excessive overpayment'' shall be the
amount that any overpayment a lessee or its designee pays for a given
reporting month (excluding payments for demands for obligations
determined to be due as a result of judicial or administrative
proceedings or agreed to be paid pursuant to settlement agreements) for
the aggregate of all of its Federal leases exceeds 10 percent of the
total royalties paid that month for those leases.
(j) Estimated payment
A lessee or its designee may make a payment for the approximate
amount of royalties (hereinafter in this subsection ``estimated
payment'') that would otherwise be due for such lease by the date
royalties are due for that lease. When an estimated payment is made,
actual royalties are payable at the end of the month following the month
in which the estimated payment is made. If the estimated payment was
less than the amount of actual royalties due, interest is owed on the
underpaid amount. If the estimated payment exceeds the actual royalties
due, interest is owed on the overpayment. If the lessee or its designee
makes a payment for such actual royalties, the lessee or its designee
may apply the estimated payment to future royalties. Any estimated
payment may be adjusted, recouped, or reinstated at any time by the
lessee or its designee.
(k) Volume allocation of oil and gas production
(1) Except as otherwise provided by this subsection--
(A) a lessee or its designee of a lease in a unit or
communitization agreement which contains only Federal leases with
the same royalty rate and funds distribution shall report and pay
royalties on oil and gas production for each production month based
on the actual volume of production sold by or on behalf of that
lessee;
(B) a lessee or its designee of a lease in any other unit or
communitization agreement shall report and pay royalties on oil and
gas production for each production month based on the volume of oil
and gas produced from such agreement and allocated to the lease in
accordance with the terms of the agreement; and
(C) a lessee or its designee of a lease that is not contained in
a unit or communitization agreement shall report and pay royalties
on oil and gas production for each production month based on the
actual volume of production sold by or on behalf of that lessee.
(2) This subsection applies only to requirements for reporting and
paying royalties. Nothing in this subsection is intended to alter a
lessee's liability for royalties on oil or gas production based on the
share of production allocated
to the lease in accordance with the terms of the lease, a unit or
communitization agreement, or any other agreement.
(3) For any unit or communitization agreement if all lessees
contractually agree to an alternative method of royalty reporting and
payment, the lessees may submit such alternative method to the Secretary
or the delegated State for approval and make payments in accordance with
such approved alternative method so long as such alternative method does
not reduce the amount of the royalty obligation.
(4) The Secretary or the delegated State shall grant an exception
from the reporting and payment requirements for marginal properties by
allowing for any calendar year or portion thereof royalties to be paid
each month based on the volume of production sold. Interest shall not
accrue on the difference for the entire calendar year or portion thereof
between the amount of oil and gas actually sold and the share of
production allocated to the lease until the beginning of the month
following such calendar year or portion thereof. Any additional
royalties due or overpaid royalties and associated interest shall be
paid, refunded, or credited within six months after the end of each
calendar year in which royalties are paid based on volumes of production
sold. For the purpose of this subsection, the term ``marginal property''
means a lease that produces on average the combined equivalent of less
than 15 barrels of oil per well per day or 90 thousand cubic feet of gas
per well per day, or a combination thereof, determined by dividing the
average daily production of crude oil and natural gas from producing
wells on such lease by the number of such wells, unless the Secretary,
together with the State concerned, determines that a different
production is more appropriate.
(5) Not later than two years after August 13, 1996, the Secretary
shall issue any appropriate demand for all outstanding royalty payment
disputes regarding who is required to report and pay royalties on
production from units and communitization agreements outstanding on
August 13, 1996, and collect royalty amounts owed on such production.
(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 120-day period, the Secretary shall waive
interest due on obligations subject to the determination until the end
of the month following the month in which the determination is made.
(Pub. L. 97-451, title I, Sec. 111, Jan. 12, 1983, 96 Stat. 2455; Pub.
L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 104-185,
Sec. 6(a)-(e), (h)(1), Aug. 13, 1996, 110 Stat. 1712-1715; Pub. L. 104-
200, Sec. 1(3)-(6), Sept. 22, 1996, 110 Stat. 2421.)
Sec. 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).
---------------------------------------------------------------------------
\1\ So in original. Probably should be ``principal''.
---------------------------------------------------------------------------
(B) In the case of a lessee or its designee who determines that
subparagraph (A) would impose a hardship, the Secretary or such
delegated State shall calculate the interest due and notify the lessee
or its designee within a reasonable time of the amount of interest due,
unless such lessee or its designee elects to calculate and report
interest in accordance with subparagraph (A).
(3) An adjustment or a request for a refund for an obligation may be
made after the adjustment period only upon written notice to and
approval by the Secretary or the applicable delegated State, as
appropriate, during an audit of the period which includes the production
month for which the adjustment is being made. If an overpayment is
identified during an audit, then the Secretary or the applicable
delegated State, as appropriate, shall allow a credit or refund in the
amount of the overpayment.
(4) For purposes of this section, the adjustment period for any
obligation shall be the six-year period following the date on which an
obligation became due. The adjustment period shall be suspended, tolled,
extended, enlarged, or terminated by the same actions as the limitation
period in section 1724 of this title.
(b) Refunds
(1) In general
A request for refund is sufficient if it--
(A) is made in writing to the Secretary and, for purposes of
section 1724 of this title, is specifically identified as a
demand;
(B) identifies the person entitled to such refund;
(C) provides the Secretary information that reasonably
enables the Secretary to identify the overpayment for which such
refund is sought; and
(D) provides the reasons why the payment was an overpayment.
(2) Payment by Secretary of the Treasury
The Secretary shall certify the amount of the refund to be paid
under paragraph (1) to the Secretary of the Treasury who shall make
such refund. Such refund shall be paid from amounts received as
current receipts from sales, bonuses, royalties (including interest
charges collected under this section) and rentals of the public
lands and the Outer Continental Shelf under the provisions of the
Mineral Leasing Act [30 U.S.C. 181 et seq.] and the Outer
Continental Shelf Lands Act [43 U.S.C. 1331 et seq.], which are not
payable to a State or the Reclamation Fund. The portion of any such
refund attributable to any amounts previously disbursed to a State,
the Reclamation Fund, or any recipient prescribed by law shall be
deducted from the next disbursements to that recipient made under
the applicable law. Such amounts deducted from subsequent
disbursements shall be credited to miscellaneous receipts in the
Treasury.
(3) Payment period
A refund under this subsection shall be paid or denied (with an
explanation of the reasons for the denial) within 120 days of the
date on which the request for refund is received by the Secretary.
Such refund shall be subject to later audit by the Secretary or the
applicable delegated State and subject to the provisions of this
chapter.
(4) Prohibition against reduction of refunds or credits
In no event shall the Secretary or any delegated State directly
or indirectly claim or offset any amount or amounts against, or
reduce any refund or credit (or interest accrued thereon) by the
amount of any obligation the enforcement of which is barred by
section 1724 of this title.
(Pub. L. 97-451, title I, Sec. 111A, as added Pub. L. 104-185,
Sec. 5(a), Aug. 13, 1996, 110 Stat. 1710.)
Sec. 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) of this section may be
brought only in the United States district court for the judicial
district wherein the act, omission, or transaction constituting a
violation under this chapter or any other mineral leasing law occurred,
or wherein the defendant is found or transacts business.
(Pub. L. 97-451, title I, Sec. 112, Jan. 12, 1983, 96 Stat. 2456.)
Sec. 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, Sec. 113, Jan. 12, 1983, 96 Stat. 2456.)
Sec. 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 performed by the Secretary, delegated States, and
lessees or their designees in a timely manner.
(b) Limitation period
(1) In general
A judicial proceeding or demand which arises from, or relates to
an obligation, shall be commenced within seven years from the date
on which the obligation becomes due and if not so commenced shall be
barred. If commencement of a judicial proceeding or demand for an
obligation is barred by this section, the Secretary, a delegated
State, or a lessee or its designee (A) shall not take any other or
further action regarding that obligation, including (but not limited
to) the issuance of any order, request, demand or other
communication seeking any document, accounting, determination,
calculation, recalculation, payment, principal, interest,
assessment, or penalty or the initiation, pursuit or completion of
an audit with respect to that obligation; and (B) shall not pursue
any other equitable or legal remedy, whether under statute or common
law, with respect to an action on or an enforcement of said
obligation.
(2) Rule of construction
A judicial proceeding or demand that is timely commenced under
paragraph (1) against a designee shall be considered timely
commenced as to any lessee who is liable pursuant to section 1712(a)
of this title for the obligation that is the subject of the judicial
proceeding or demand.
(3) Application of certain limitations
The limitations set forth in sections 2401, 2415, 2416, and 2462
of title 28 and section 226-2 of this title shall not apply to any
obligation to which this chapter applies. Section 3716 of title 31
may be applied to an obligation the enforcement of which is not
barred by this chapter, but may not be applied to any obligation the
enforcement of which is barred by this chapter.
(c) Obligation becomes due
(1) In general
For purposes of this chapter, an obligation becomes due when the
right to enforce the obligation is fixed.
(2) Royalty obligations
The right to enforce any royalty obligation for any given
production month for a lease is fixed for purposes of this chapter
on the last day of the calendar month following the month in which
oil or gas is produced.
(d) Tolling of limitation period
The running of the limitation period under subsection (b) of this
section shall not be suspended, tolled, extended, or enlarged for any
obligation for any reason by any action, including an action by the
Secretary or a delegated State, other than the following:
(1) Tolling agreement
A written agreement executed during the limitation period
between the Secretary or a delegated State and a lessee or its
designee (with notice to the lessee who designated the designee)
shall toll the limitation period for the amount of time during which
the agreement is in effect.
(2) Subpoena
(A) The issuance of a subpoena to a lessee or its designee (with
notice to the lessee who designated the designee, which notice shall
not constitute a subpoena to the lessee) in accordance with the
provisions of subparagraph (B)(i) shall toll the limitation period
with respect to the obligation which is the subject of a subpoena
only for the period beginning on the date the lessee or its designee
receives the subpoena and ending on the date on which (i) the lessee
or its designee has produced such subpoenaed records for the subject
obligation, (ii) the Secretary or a delegated State receives written
notice that the subpoenaed records for the subject obligation are
not in existence or are not in the lessee's or its designee's
possession or control, or (iii) a court has determined
in a final decision that such records are not required to be
produced, whichever occurs first.
(B)(i) A subpoena for the purposes of this section which
requires a lessee or its designee to produce records necessary to
determine the proper reporting and payment of an obligation due the
Secretary may be issued only by an Assistant Secretary of the
Interior or an Acting Assistant Secretary of the Interior who is a
schedule C employee (as defined by section 213.3301 of title 5, Code
of Federal Regulations), or the Director or Acting Director of the
respective bureau or agency, and may not be delegated to any other
person. If a State has been delegated authority pursuant to section
1735 of this title, the State, acting through the highest State
official having ultimate authority over the collection of royalties
from leases on Federal lands within the State, may issue such
subpoena, but may not delegate such authority to any other person.
(ii) A subpoena described in clause (i) may only be issued
against a lessee or its designee during the limitation period
provided in this section and only after the Secretary or a delegated
State has in writing requested the records from the lessee or its
designee related to the obligation which is the subject of the
subpoena and has determined that--
(I) the lessee or its designee has failed to respond within
a reasonable period of time to the Secretary's or the applicable
delegated State's written request for such records necessary for
an audit, investigation or other inquiry made in accordance with
the Secretary's or such delegated State's responsibilities under
this chapter; or
(II) the lessee or its designee has in writing denied the
Secretary's or the applicable delegated State's written request
to produce such records in the lessee's or its designee's
possession or control necessary for an audit, investigation or
other inquiry made in accordance with the Secretary's or such
delegated State's responsibilities under this chapter; or
(III) the lessee or its designee has unreasonably delayed in
producing records necessary for an audit, investigation or other
inquiry made in accordance with the Secretary's or the
applicable delegated State's responsibilities under this chapter
after the Secretary's or delegated State's written request.
(C) In seeking records, the Secretary or the applicable
delegated State shall afford the lessee or its designee a reasonable
period of time after a written request by the Secretary or such
delegated State in which to provide such records prior to the
issuance of any subpoena.
(3) Misrepresentation or concealment
The intentional misrepresentation or concealment of a material
fact for the purpose of evading the payment of an obligation in
which case the limitation period shall be tolled for the period of
such misrepresentation or such concealment.
(4) Order to perform restructured accounting
(A)(i) The issuance of a notice under subparagraph (D) that the
lessee or its designee has not substantially complied with the
requirement to perform a restructured accounting shall toll the
limitation period with respect to the obligation which is the
subject of the notice only for the period beginning on the date the
lessee or its designee receives the notice and ending 120 days after
the date on which (I) the Secretary or the applicable delegated
State receives written notice that the accounting or other
requirement has been performed, or (II) a court has determined in a
final decision that the lessee is not required to perform the
accounting, whichever occurs first.
(ii) If the lessee or its designee initiates an administrative
appeal or judicial proceeding to contest an order to perform a
restructured accounting issued under subparagraph (B)(i), the
limitation period in subsection (b) of this section shall be tolled
from the date the lessee or its designee received the order until a
final, nonappealable decision is issued in any such proceeding.
(B)(i) The Secretary or the applicable delegated State may issue
an order to perform a restructured accounting to a lessee or its
designee when the Secretary or such delegated State determines
during an audit of a lessee or its designee that the lessee or its
designee should recalculate royalty due on an obligation based upon
the Secretary's or the delegated State's finding that the lessee or
its designee has made identified underpayments or overpayments which
are demonstrated by the Secretary or the delegated State to be based
upon repeated, systemic reporting errors for a significant number of
leases or a single lease for a significant number of reporting
months with the same type of error which constitutes a pattern of
violations and which are likely to result in either significant
underpayments or overpayments.
(ii) The power of the Secretary to issue an order to perform a
restructured accounting may not be delegated below the most senior
career professional position having responsibility for the royalty
management program, which position is currently designated as the
``Associate Director for Royalty Management'', and may not be
delegated to any other person. If a State has been delegated
authority pursuant to section 1735 of this title, the State, acting
through the highest ranking State official having ultimate authority
over the collection of royalties from leases on Federal lands within
the State, may issue such order to perform, which may not be
delegated to any other person. An order to perform a restructured
accounting shall--
(I) be issued within a reasonable period of time from when
the audit identifies the systemic, reporting errors;
(II) specify the reasons and factual bases for such order;
(III) be specifically identified as an ``order to perform a
restructured accounting'';
(IV) provide the lessee or its designee a reasonable period
of time (but not less than 60 days) within which to perform the
restructured accounting; and
(V) provide the lessee or its designee 60 days within which
to file an administrative appeal of the order to perform a restructured accounting.
(C) An order to perform a restructured accounting shall not mean
or be construed to include any other action by or on behalf of the
Secretary or a delegated State.
(D) If a lessee or its designee fails to substantially comply
with the requirement to perform a restructured accounting pursuant
to this subsection, a notice shall be issued to the lessee or its
designee that the lessee or its designee has not substantially
complied with the requirements to perform a restructured accounting.
A lessee or its designee shall be given a reasonable time within
which to perform the restructured accounting. Such notice may be
issued under this section only by an Assistant Secretary of the
Interior or an acting Assistant Secretary of the Interior who is a
schedule C employee (as defined by section 213.3301 of title 5, Code
of Federal Regulations) and may not be delegated to any other
person. If a State has been delegated authority pursuant to section
1735 of this title, the State, acting through the highest State
official having ultimate authority over the collection of royalties
from leases on Federal lands within the State, may issue such
notice, which may not be delegated to any other person.
(e) Termination of limitations period
An action or an enforcement of an obligation by the Secretary or
delegated State or a lessee or its designee shall be barred under this
section prior to the running of the seven-year period provided in
subsection (b) of this section in the event--
(1) the Secretary or a delegated State has notified the lessee
or its designee in writing that a time period is closed to further
audit; or
(2) the Secretary or a delegated State and a lessee or its
designee have so agreed in writing.
For purposes of this subsection, notice to, or an agreement by, the
designee shall be binding on any lessee who is liable pursuant to
section 1712(a) of this title for obligations that are the subject of
the notice or agreement.
(f) Records required for determining collections
Records required pursuant to section 1713 of this title by the
Secretary or any delegated State for the purpose of determining
obligations due and compliance with any applicable mineral leasing law,
lease provision, regulation or order with respect to oil and gas leases
from Federal lands or the Outer Continental Shelf shall be maintained
for the same period of time during which a judicial proceeding or demand
may be commenced under subsection (b) of this section. If a judicial
proceeding or demand is timely commenced, the record holder shall
maintain such records until the final nonappealable decision in such
judicial proceeding is made, or with respect to that demand is rendered,
unless the Secretary or the applicable delegated State authorizes in
writing an earlier release of the requirement to maintain such records.
Notwithstanding anything herein to the contrary, under no circumstance
shall a record holder be required to maintain or produce any record
relating to an obligation for any time period which is barred by the
applicable limitation in this section. In connection with any hearing,
administrative proceeding, inquiry, investigation, or audit by the
Secretary or a delegated State under this chapter, the Secretary or the
delegated State shall minimize the submission of multiple or redundant
information and make a good faith effort to locate records previously
submitted by a lessee or a designee to the Secretary or the delegated
State, prior to requiring the lessee or the designee to provide such
records.
(g) Timely collections
In order to most effectively utilize resources available to the
Secretary to maximize the collection of oil and gas receipts from lease
obligations to the Treasury within the seven-year period of limitations,
and consequently to maximize the State share of such receipts, the
Secretary should not perform or require accounting, reporting, or audit
activities if the Secretary and the State concerned determine that the
cost of conducting or requiring the activity exceeds the expected amount
to be collected by the activity, based on the most current 12 months of
activity. This subsection shall not provide a defense to a demand or an
order to perform a restructured accounting. To the maximum extent
possible, the Secretary and delegated States shall reduce costs to the
United States Treasury and the States by discontinuing requirements for
unnecessary or duplicative data and other information, such as separate
allowances and payor information, relating to obligations due. If the
Secretary and the State concerned determine that collection will result
sooner, the Secretary or the applicable delegated State may waive or
forego interest in whole or in part.
(h) Appeals and final agency action
(1) 33-month period
Demands or orders issued by the Secretary or a delegated State
are subject to administrative appeal in accordance with the
regulations of the Secretary. No State shall impose any conditions
which would hinder a lessee's or its designee's immediate appeal of
an order to the Secretary or the Secretary's designee. The Secretary
shall issue a final decision in any administrative proceeding,
including any administrative proceedings pending on August 13, 1996,
within 33 months from the date such proceeding was commenced or 33
months from August 13, 1996, whichever is later. The 33-month period
may be extended by any period of time agreed upon in writing by the
Secretary and the appellant.
(2) Effect of failure to issue decision
If no such decision has been issued by the Secretary within the
33-month period referred to in paragraph (1)--
(A) the Secretary shall be deemed to have issued and granted
a decision in favor of the appellant as to any nonmonetary
obligation and any monetary obligation the principal amount of
which is less than $10,000; and
(B) the Secretary shall be deemed to have issued a final
decision in favor of the Secretary, which decision shall be deemed to affirm those issues
for which the agency rendered a decision prior to the end of
such period, as to any monetary obligation the principal amount
of which is $10,000 or more, and the appellant shall have a
right to judicial review of such deemed final decision in
accordance with title 5.
(i) Collections of disputed amounts due
To expedite collections relating to disputed obligations due within
the seven-year period beginning on the date the obligation became due,
the parties shall hold not less than one settlement consultation and the
Secretary and the State concerned may take such action as is appropriate
to compromise and settle a disputed obligation, including waiving or
reducing interest and allowing offsetting of obligations among leases.
(j) Enforcement of claim for judicial review
In the event a demand subject to this section is properly and timely
commenced, the obligation which is the subject of the demand may be
enforced beyond the seven-year limitations period without being barred
by this statute of limitations. In the event a demand subject to this
section is properly and timely commenced, a judicial proceeding
challenging the final agency action with respect to such demand shall be
deemed timely so long as such judicial proceeding is commenced within
180 days from receipt of notice by the lessee or its designee of the
final agency action.
(k) Implementation of final decision
In the event a judicial proceeding or demand subject to this section
is timely commenced and thereafter the limitation period in this section
lapses during the pendency of such proceeding, any party to such
proceeding shall not be barred from taking such action as is required or
necessary to implement a final unappealable judicial or administrative
decision, including any action required or necessary to implement such
decision by the recovery or recoupment of an underpayment or overpayment
by means of refund or credit.
(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, Sec. 115, as added Pub. L. 104-185, Sec. 4(a),
Aug. 13, 1996, 110 Stat. 1704; amended Pub. L. 104-200, Sec. 1(2), Sept.
22, 1996, 110 Stat. 2421.)
Sec. 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, Sec. 116, as added Pub. L. 104-185,
Sec. 6(f)(1), Aug. 13, 1996, 110 Stat. 1714.)
Sec. 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) of this section or regulatory relief under subsection (c)
of this section. If the State concerned does not consent, such
prepayments or regulatory relief shall not be made available under this
section for such marginal production: Provided, That if royalty payments
from a lease or leases, or well or wells are not shared with
any State, such determination shall be made solely by the Secretary.
(b) Prepayment of royalty
(1) In general
Notwithstanding the provisions of any lease to the contrary, for
any lease or leases or well or wells identified by the Secretary and
the State concerned pursuant to subsection (a) of this section, the
Secretary is authorized to accept a prepayment for royalties in lieu
of monthly royalty payments under the lease for the remainder of the
lease term if the affected lessee so agrees. Any prepayment agreed
to by the Secretary, State concerned and lessee which is less than
an average $500 per month in total royalties shall be effectuated
under this section not earlier than two years after August 13, 1996,
and, any prepayment which is greater than an average $500 per month
in total royalties shall be effectuated under this section not
earlier than three years after August 13, 1996. The Secretary and
the State concerned may condition their acceptance of the prepayment
authorized under this section on the lessee's agreeing to such terms
and conditions as the Secretary and the State concerned deem
appropriate and consistent with the purposes of this chapter. Such
terms may--
(A) provide for prepayment that does not result in a loss of
revenue to the United States in present value terms;
(B) include provisions for receiving additional prepayments
or royalties for developments in the lease or leases or well or
wells that deviate significantly from the assumptions and facts
on which the valuation is determined; and
(C) require the lessee or its designee to provide such
periodic production reports as may be necessary to allow the
Secretary and the State concerned to monitor production for the
purposes of subparagraph (B).
(2) State share
A prepayment under this section shall be shared by the Secretary
with any State or other recipient to the same extent as any royalty
payment for such lease.
(3) Satisfaction of obligation
Except as may be provided in the terms and conditions
established by the Secretary under subsection (b) of this section, a
lessee or its designee who makes a prepayment under this section
shall have satisfied in full the lessee's obligation to pay royalty
on the production stream sold from the lease or leases or well or
wells.
(c) Alternative accounting and auditing requirements
Within one year after August 13, 1996, the Secretary or the
delegated State shall provide accounting, reporting, and auditing relief
that will encourage lessees to continue to produce and develop
properties subject to subsection (a) of this section: Provided, That
such relief will only be available to lessees in a State that concurs,
which concurrence is not required if royalty payments from the lease or
leases or well or wells are not shared with any State. Prior to granting
such relief, the Secretary and, if appropriate, the State concerned
shall agree that the type of marginal wells and relief provided under
this paragraph is in the best interest of the United States and, if
appropriate, the State concerned.
(Pub. L. 97-451, title I, Sec. 117, as added Pub. L. 104-185, Sec. 7(a),
Aug. 13, 1996, 110 Stat. 1715; amended Pub. L. 104-200, Sec. 1(7), Sept.
22, 1996, 110 Stat. 2421.)
TITLE 30--MINERAL LANDS AND MINING
CHAPTER 29--OIL AND GAS ROYALTY MANAGEMENT
SUBCHAPTER II--STATES AND INDIAN TRIBES
Sec. 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, Sec. 201, Jan. 12, 1983, 96 Stat. 2457.)
Sec. 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 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.)
Sec. 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.
(Pub. L. 97-451, title II, Sec. 202, Jan. 12, 1983, 96 Stat. 2457.)
Sec. 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.
(Pub. L. 97-451, title II, Sec. 203, Jan. 12, 1983, 96 Stat. 2458.)
Sec. 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) of this section shall be
retained by the State and may be expended in such manner and for such
purposes as the State deems appropriate.
(2) Any rent, royalty, or interest recovered by a State under
subsection (a) of this section shall be deposited in the Treasury of the
United States in the same manner, and subject to the same requirements,
as are applicable in the case of any rent, royalty, or interest
collected by an officer or employee of the United States, except that
such amounts shall be deposited in the Treasury not later than 10 days
after receipt by the State.
(Pub. L. 97-451, title II, Sec. 204, Jan. 12, 1983, 96 Stat. 2458.)
Sec. 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) of this section
within 90 days after submission of such proposal. In any unfavorable
ruling, the Secretary shall set forth the reasons therefor and state
whether the Secretary will agree to delegate to the State if the State
meets the conditions set forth in such ruling.
(d) Promulgation of standards and regulations with respect to delegation
After consultation with State authorities, the Secretary shall by
rule promulgate, within 12 months after August 13, 1996, standards and
regulations pertaining to the authorities and responsibilities to be
delegated under subsection (a) of this section, including standards and
regulations pertaining to--
(1) audits to be performed;
(2) records and accounts to be maintained;
(3) reporting procedures to be required by States under this
section;
(4) receipt and processing of production and financial reports;
(5) correction of erroneous report data;
(6) performance of automated verification;
(7) issuance of standards and guidelines in order to avoid
duplication of effort;
(8) transmission of report data to the Secretary; and
(9) issuance of demands, subpoenas, and orders to perform
restructured accounting, for royalty management enforcement
purposes.
Such standards and regulations shall be designed to provide reasonable
assurance that a uniform and effective royalty management system will
prevail among the States. The records and accounts under paragraph (2)
shall be sufficient to allow the Secretary to monitor the performance of
any State under this section.
(e) Revocation; issuance of demand or order by Secretary
If, after notice and opportunity for a hearing, the Secretary finds
that any State to which any authority or responsibility of the Secretary
has been delegated under this section is in violation of any requirement
of this section or any rule thereunder, or that an affirmative finding
by the Secretary under subsection (b) of this section can no longer be
made, the Secretary may revoke such delegation. If, after providing
written notice to a delegated State and a reasonable opportunity to take
corrective action requested by the Secretary, the Secretary determines
that the State has failed to issue a demand or order to a Federal lessee
within the State, that such failure may result in an underpayment of an
obligation due the United States by such lessee, and that such
underpayment may be uncollected without Secretarial intervention, the
Secretary may issue such demand or order in accordance with the
provisions of this chapter prior to or absent the withdrawal of
delegated authority.
(f) Compensation to State for costs of delegation; allocation of costs
Subject to appropriations, the Secretary shall compensate any State
for those costs which may be necessary to carry out the delegated
activities under this Section.\1\ Payment shall be made no less than
every quarter during the fiscal year. Compensation to a State may not
exceed the Secretary's reasonably anticipated expenditure for
performance of such delegated activities by the Secretary. Such costs
shall be allocable for the purposes of section 191(b) of this title to
the administration and enforcement of laws providing for the leasing of
any onshore lands or interests in land owned by the United States. Any
further allocation of costs under section 191(b) of this title made by
the Secretary for oil and gas activities, other than those costs to
compensate States for delegated activities under this chapter, shall be
only those costs associated with onshore oil and gas activities and may
not include any duplication of costs allocated pursuant to the previous
sentence. Nothing in this section affects the Secretary's authority to
make allocations under section 191(b) of this title for non-oil and gas
mineral activities. All moneys received from sales, bonuses, rentals,
royalties, assessments and interest, including money claimed to be due
and owing pursuant to a delegation under this section, shall be payable
and paid to the Treasury of the United States.
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\1\ So in original. Probably should not be capitalized.
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(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, Sec. 205, Jan. 12, 1983, 96 Stat. 2459; Pub.
L. 104-185, Sec. 3(a), Aug. 13, 1996, 110 Stat. 1702.)
Sec. 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.
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.
(Pub. L. 97-451, title II, Sec. 206, Jan. 12, 1983, 96 Stat. 2460.)
TITLE 30--MINERAL LANDS AND MINING
CHAPTER 29--OIL AND GAS ROYALTY MANAGEMENT
SUBCHAPTER III--GENERAL PROVISIONS
Sec. 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, Sec. 301, Jan. 12, 1983, 96 Stat. 2460.)
Sec. 1752. Reports
The Secretary shall submit to the Congress an annual report on the
implementation of this chapter. The information to be included in the
report and the format of the report shall be developed by the Secretary
after consulting with the Committees on Natural Resources of the House
of Representatives and on Energy and Natural Resources of the Senate.
The Secretary shall also report on the progress of the Department in
reconciling account balances.
(Pub. L. 97-451, title III, Sec. 302, Jan. 12, 1983, 96 Stat. 2461; Pub.
L. 103-437, Sec. 11(a)(2), Nov. 2, 1994, 108 Stat. 4589; Pub. L. 105-
362, title IX, Sec. 901(j)(1), Nov. 10, 1998, 112 Stat. 3290.)
Sec. 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
General of the Department of the Interior or of the Comptroller General
of the United States.
(d) Lands and land interests entrusted to Tennessee Valley Authority
unaffected
No provision of this chapter impairs or affects lands and interests
in land entrusted to the Tennessee Valley Authority.
(Pub. L. 97-451, title III, Sec. 304, Jan. 12, 1983, 96 Stat. 2461; Pub.
L. 105-362, title IX, Sec. 901(j)(2), Nov. 10, 1998, 112 Stat. 3290.)
Sec. 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, Sec. 306, Jan. 12, 1983, 96 Stat. 2462.)
Sec. 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, Sec. 307, Jan. 12, 1983, 96 Stat. 2462.)
Sec. 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, Sec. 308, Jan. 12, 1983, 96 Stat. 2462.)
Sec. 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.
(Pub. L. 97-451, title III, Sec. 309, Jan. 12, 1983, 96 Stat. 2462.)
Sec. 1758. Use of royalty-in-kind revenue by Minerals Management
Service
That in fiscal year 2006 and thereafter, the MMS may under the
royalty-in-kind program, 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.)
| File Type | application/msword |
| Author | jesonnem |
| Last Modified By | jesonnem |
| File Modified | 2009-05-28 |
| File Created | 2009-05-28 |