95-17774. Completing Reviews and Audits of Royalty Payments

[Federal Register Volume 60, Number 137 (Tuesday, July 18, 1995)]
[Rules and Regulations]
[Page 36711]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-17774]



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DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Chapter II


Completing Reviews and Audits of Royalty Payments

AGENCY: Minerals Management Service, Interior.

ACTION: Notice of availability of guidance.

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SUMMARY: The extent of the time periods covered by audits of royalty 
payments has been a matter of considerable controversy between the 
Minerals Management Service (MMS) and the minerals industry for several 
years. During the 1980's, MMS increased audit activities in compliance 
with the Federal Oil and Gas Royalty Management Act (30 U.S.C. 1711). 
The resulting orders issued to companies for royalty underpayments 
often covered periods more than six years old. Many companies have 
challenged MMS orders on statute of limitations grounds and their 
theories have been asserted in Federal court cases and in a large 
number of administrative appeals.
    In order to be more responsive to the public we serve, the MMS, in 
consultation with affected states, Indian tribes, and the minerals 
industry, has developed guidance regarding the extent of the time 
periods to be covered when reviewing and auditing royalty payments. 
Copies of this guidance may be obtained by contacting the Office of the 
Deputy Associate Director for Compliance at [phone].

FOR FURTHER INFORMATION CONTACT: Mr. David Guzy, Chief, Rules and 
Procedures Staff, Minerals Management Service, Royalty Management 
Program, P.O. Box 25165, MS-3101, Denver, Colorado, 80225-0165, 
telephone number [phone], fax number [phone].

    Dated: July 12, 1995.
James W. Shaw,
Associate Director for Royalty Management.
[FR Doc. 95-17774 Filed 7-17-95; 8:45 am]
BILLING CODE 4310-MR-P