Collapse to view only § 1735. Delegation of royalty collections and related activities
- § 1731. Application of subchapter
- § 1731a. Application of subchapter to leases of lands within three miles of seaward boundaries of coastal States
- § 1732. Cooperative agreements
- § 1733. Information
- § 1734. State suits under Federal law
- § 1735. Delegation of royalty collections and related activities
- § 1736. Shared civil penalties
§ 1731. Application of subchapter
This subchapter shall apply only with respect to oil and gas leases on Federal lands or Indian lands. Nothing in this subchapter shall be construed to apply to any lease on the Outer Continental Shelf.
(Pub. L. 97–451, title II, § 201, Jan. 12, 1983, 96 Stat. 2457.)
§ 1731a. Application of subchapter to leases of lands within three miles of seaward boundaries of coastal States
For fiscal year 1990 and each fiscal year thereafter, notwithstanding the provisions of section 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.)
§ 1732. Cooperative agreements
(a) Authorization of Secretary; permission of Indian tribe required for activities on Indian lands
(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
(Pub. L. 97–451, title II, § 202, Jan. 12, 1983, 96 Stat. 2457.)
§ 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
(c) Law governing disclosure
(Pub. L. 97–451, title II, § 203, Jan. 12, 1983, 96 Stat. 2458.)
§ 1734. State suits under Federal law
(a) Action for royalty, interest, or civil penalty; limitations; notice of suit; award of costs and fees
(1) A State may commence a civil action under this section against any person to recover any royalty, interest, or civil penalty which the State believes is due, based upon credible evidence, with respect to any oil and gas lease on Federal lands located within the State.
(2)
(A) No action may be commenced under paragraph (1) prior to 90 days after the State has given notice in writing to the Secretary of the payment required. Such 90-day limitation may be waived by the Secretary on a case-by-case basis.
(B) If, within the 90-day period specified in subparagraph (A), the Secretary issues a demand for the payment concerned, no action may be commenced under paragraph (1) with respect to such payment during a 45-day period after issuance of such demand. If, during such 45-day period, the Secretary receives payment in full, no action may be commenced under paragraph (1).
(C) If the Secretary refers the case to the Attorney General of the United States within the 45-day period referred to in subparagraph (B) or within 10 business days after the expiration of such 45-day period, no action may be commenced under paragraph (1) if the Attorney General, within 45 days after the date of such referral, commences, and thereafter diligently prosecutes, a civil action in a court of the United States with respect to the payment concerned.
(3) The State shall notify the Secretary and the Attorney General of the United States of any suit filed by the State under this section.
(4) A court in issuing any final order in any action brought under paragraph (1) may award costs of litigation including reasonable attorney and expert witness fees, to any party in such action if the court determines such an award is appropriate.
(b) Venue; jurisdiction of district court
(c) Recovery of civil penalty by State; deposit of rent, royalty, or interest recovery in Treasury of the United States
(1) Notwithstanding any other provision of law, any civil penalty recovered by a State under subsection (a) shall be retained by the State and may be expended in such manner and for such purposes as the State deems appropriate.
(2) Any rent, royalty, or interest recovered by a State under subsection (a) shall be deposited in the Treasury of the United States in the same manner, and subject to the same requirements, as are applicable in the case of any rent, royalty, or interest collected by an officer or employee of the United States, except that such amounts shall be deposited in the Treasury not later than 10 days after receipt by the State.
(Pub. L. 97–451, title II, § 204, Jan. 12, 1983, 96 Stat. 2458.)
§ 1735. Delegation of royalty collections and related activities
(a) Authorization of Secretary
Upon written request of any State, the Secretary is authorized to delegate, in accordance with the provisions of this section, all or part of the authorities and responsibilities of the Secretary under this chapter to:
(1) conduct inspections, audits, and investigations;
(2) receive and process production and financial reports;
(3) correct erroneous report data;
(4) perform automated verification; and
(5) issue demands, subpoenas, and orders to perform restructured accounting, for royalty management enforcement purposes,
to any State with respect to all Federal land within the State.
(b) Prerequisites
After notice and opportunity for a hearing, the Secretary is authorized to delegate such authorities and responsibilities granted under this section as the State has requested, if the Secretary finds that—
(1) it is likely that the State will provide adequate resources to achieve the purposes of this chapter;
(2) the State has demonstrated that it will effectively and faithfully administer the rules and regulations of the Secretary under this chapter in accordance with the requirements of subsections (c) and (d) of this section;
(3) such delegation will not create an unreasonable burden on any lessee;
(4) the State agrees to adopt standardized reporting procedures prescribed by the Secretary for royalty and production accounting purposes, unless the State and all affected parties (including the Secretary) otherwise agree;
(5) the State agrees to follow and adhere to regulations and guidelines issued by the Secretary pursuant to the mineral leasing laws regarding valuation of production; and
(6) where necessary for a State to have authority to carry out and enforce a delegated activity, the State agrees to enact such laws and promulgate such regulations as are consistent with relevant Federal laws and regulations
with respect to the Federal lands within the State.
(c) Ruling as to consistency of State’s proposal
(d) Promulgation of standards and regulations with respect to delegation
After consultation with State authorities, the Secretary shall by rule promulgate, within 12 months after August 13, 1996, standards and regulations pertaining to the authorities and responsibilities to be delegated under subsection (a), including standards and regulations pertaining to—
(1) audits to be performed;
(2) records and accounts to be maintained;
(3) reporting procedures to be required by States under this section;
(4) receipt and processing of production and financial reports;
(5) correction of erroneous report data;
(6) performance of automated verification;
(7) issuance of standards and guidelines in order to avoid duplication of effort;
(8) transmission of report data to the Secretary; and
(9) issuance of demands, subpoenas, and orders to perform restructured accounting, for royalty management enforcement purposes.
Such standards and regulations shall be designed to provide reasonable assurance that a uniform and effective royalty management system will prevail among the States. The records and accounts under paragraph (2) shall be sufficient to allow the Secretary to monitor the performance of any State under this section.
(e) Revocation; issuance of demand or order by Secretary
(f) Compensation to State for costs of delegation; allocation of costs
(g) Judicial review
(h) Existing delegation
(Pub. L. 97–451, title II, § 205, Jan. 12, 1983, 96 Stat. 2459; Pub. L. 104–185, § 3(a), Aug. 13, 1996, 110 Stat. 1702.)
§ 1736. Shared civil penalties
An amount equal to 50 per centum of any civil penalty collected by the Federal Government under this chapter resulting from activities conducted by a State or Indian tribe pursuant to a cooperative agreement under section 1732 of this title or a State under a delegation under section 1735 of this title, shall be payable to such State or tribe. Any payments under this section shall be reduced by an amount equal to any payments provided or due to such State or Indian tribe under the cooperative agreement or delegation, as applicable, during the fiscal year in which the civil penalty is received, up to the total amount provided or due for that fiscal year.
(Pub. L. 97–451, title II, § 206, Jan. 12, 1983, 96 Stat. 2460; Pub. L. 113–76, div. G, title I, § 121, Jan. 17, 2014, 128 Stat. 314.)