---
kind: "range"
citation: "30 U.S.C. §§ 1732–1736"
title: "30"
from: "1732"
to: "1736"
count: 5
release: "119-102"
url: "https://uscodex.org/usc/30/1732..1736"
---

# §1732. Cooperative agreements

- (a) **Authorization of Secretary; permission of Indian tribe required for activities on Indian lands—** The [Secretary](/usc/30/1702.md?p=15) is authorized to enter into a cooperative agreement or agreements with any [State](/usc/30/1702.md?p=16) or [Indian tribe](/usc/30/1702.md?p=4) to share [oil or gas](/usc/30/1702.md?p=9) [royalty](/usc/30/1702.md?p=14) management information, to carry out inspection, auditing, investigation or enforcement (not including the collection of [royalties](/usc/30/1702.md?p=14), civil or criminal [penalties](/usc/30/1702.md?p=29) or other [payments](/usc/30/1702.md?p=28)) activities under this chapter in cooperation with the [Secretary](/usc/30/1702.md?p=15), and to carry out any other activity described in [section 1718 of this title](/usc/30/1718.md). The [Secretary](/usc/30/1702.md?p=15) shall not enter into any such cooperative agreement with a [State](/usc/30/1702.md?p=16) with respect to any such activities on [Indian lands](/usc/30/1702.md?p=3), except with the permission of the [Indian tribe](/usc/30/1702.md?p=4) involved.
- (b) **Access to royalty accounting information—** Except as provided in [section 1733 of this title](/usc/30/1733.md), and pursuant to a cooperative agreement—
  - (1) each [State](/usc/30/1702.md?p=16) shall, upon request, have access to all [royalty](/usc/30/1702.md?p=14) accounting information in the possession of the [Secretary](/usc/30/1702.md?p=15) respecting the [production](/usc/30/1702.md?p=13), removal, or sale of [oil or gas](/usc/30/1702.md?p=9) from [leases](/usc/30/1702.md?p=5) on [Federal lands](/usc/30/1702.md?p=1) within the [State](/usc/30/1702.md?p=16); and
  - (2) each [Indian tribe](/usc/30/1702.md?p=4) shall, upon request, have access to all [royalty](/usc/30/1702.md?p=14) accounting information in the possession of the [Secretary](/usc/30/1702.md?p=15) respecting the [production](/usc/30/1702.md?p=13), removal, or sale of [oil or gas](/usc/30/1702.md?p=9) from [leases](/usc/30/1702.md?p=5) on [Indian lands](/usc/30/1702.md?p=3) under the jurisdiction of such tribe.

  Information shall be made available under paragraphs [(1)](#b-1) and [(2)](#b-2) as soon as practicable after it comes into the possession of the [Secretary](/usc/30/1702.md?p=15). Effective October 1, 1983, such information shall be made available under paragraphs [(1)](#b-1) and [(2)](#b-2) not later than 30 days after such information comes into the possession of the [Secretary](/usc/30/1702.md?p=15).

- (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](/usc/31/chstV-ch63.md) of title 31, and shall contain such terms and conditions as the [Secretary](/usc/30/1702.md?p=15) 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.

# §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](/usc/30/1702.md?p=15), pursuant to a cooperative agreement, to a [State](/usc/30/1702.md?p=16) or [Indian tribe](/usc/30/1702.md?p=4) upon request only if—
  - (1) such [State](/usc/30/1702.md?p=16) or [Indian tribe](/usc/30/1702.md?p=4) 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](/usc/30/1702.md?p=16) or tribe accepts liability for wrongful disclosure;
  - (3) in the case of a [State](/usc/30/1702.md?p=16), such [State](/usc/30/1702.md?p=16) demonstrates that such information is essential to the conduct of an audit or investigation or to litigation under [section 1734 of this title](/usc/30/1734.md); and
  - (4) in the case of an [Indian tribe](/usc/30/1702.md?p=4), 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](/usc/30/1702.md?p=33) shall not be liable for the wrongful disclosure by any individual, [State](/usc/30/1702.md?p=16), or [Indian tribe](/usc/30/1702.md?p=4) of any information provided to such individual, [State](/usc/30/1702.md?p=16), or [Indian tribe](/usc/30/1702.md?p=4) pursuant to any cooperative agreement or a delegation, authorized by this chapter.
- (c) **Law governing disclosure—** Whenever any individual, [State](/usc/30/1702.md?p=16), or [Indian tribe](/usc/30/1702.md?p=4) has obtained possession of information pursuant to a cooperative agreement authorized by this section, or any individual or [State](/usc/30/1702.md?p=16) has obtained possession of information pursuant to a delegation under [section 1735 of this title](/usc/30/1735.md), 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](/usc/30/1702.md?p=33) or of any department or agency thereof and the [State](/usc/30/1702.md?p=16) or [Indian tribe](/usc/30/1702.md?p=4) shall be subject to the same provisions of law with respect to the disclosure of such information as would apply to the [United States](/usc/30/1702.md?p=33) or any department or agency thereof. No [State](/usc/30/1702.md?p=16) or [State](/usc/30/1702.md?p=16) 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](/usc/30/1702.md?p=16) law.

# §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](/usc/30/1702.md?p=16) may [commence](/usc/30/1702.md?p=20) a civil action under this section against any [person](/usc/30/1702.md?p=12) to recover any [royalty](/usc/30/1702.md?p=14), interest, or civil [penalty](/usc/30/1702.md?p=29) which the [State](/usc/30/1702.md?p=16) believes is due, based upon credible evidence, with respect to any oil and gas [lease](/usc/30/1702.md?p=5) on [Federal lands](/usc/30/1702.md?p=1) located within the [State](/usc/30/1702.md?p=16).
  - (2)
    - (A) No action may be commenced under [paragraph (1)](#a-1) prior to 90 days after the [State](/usc/30/1702.md?p=16) has given notice in writing to the [Secretary](/usc/30/1702.md?p=15) of the [payment](/usc/30/1702.md?p=28) required. Such 90-day limitation may be waived by the [Secretary](/usc/30/1702.md?p=15) on a case-by-case basis.
    - (B) If, within the 90-day period specified in [subparagraph (A)](#a-2-A), the [Secretary](/usc/30/1702.md?p=15) issues a [demand](/usc/30/1702.md?p=23) for the [payment](/usc/30/1702.md?p=28) concerned, no action may be commenced under [paragraph (1)](#a-1) with respect to such [payment](/usc/30/1702.md?p=28) during a 45-day period after issuance of such [demand](/usc/30/1702.md?p=23). If, during such 45-day period, the [Secretary](/usc/30/1702.md?p=15) receives [payment](/usc/30/1702.md?p=28) in full, no action may be commenced under [paragraph (1)](#a-1).
    - (C) If the [Secretary](/usc/30/1702.md?p=15) refers the case to the Attorney General of the [United States](/usc/30/1702.md?p=33) within the 45-day period referred to in [subparagraph (B)](#a-2-B) or within 10 business days after the expiration of such 45-day period, no action may be commenced under [paragraph (1)](#a-1) if the Attorney General, within 45 days after the date of such referral, [commences](/usc/30/1702.md?p=20), and thereafter diligently prosecutes, a civil action in a court of the [United States](/usc/30/1702.md?p=33) with respect to the [payment](/usc/30/1702.md?p=28) concerned.
  - (3) The [State](/usc/30/1702.md?p=16) shall notify the [Secretary](/usc/30/1702.md?p=15) and the Attorney General of the [United States](/usc/30/1702.md?p=33) of any suit filed by the [State](/usc/30/1702.md?p=16) under this section.
  - (4) A court in issuing any final order in any action brought under [paragraph (1)](#a-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)](#a) of this section may be brought only in a [United States](/usc/30/1702.md?p=33) district court for the judicial district in which the [lease site](/usc/30/1702.md?p=6) 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](/usc/30/1702.md?p=28) 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](/usc/30/1702.md?p=29) recovered by a [State](/usc/30/1702.md?p=16) under [subsection (a)](#a) shall be retained by the [State](/usc/30/1702.md?p=16) and may be expended in such manner and for such purposes as the [State](/usc/30/1702.md?p=16) deems appropriate.
  - (2) Any rent, [royalty](/usc/30/1702.md?p=14), or interest recovered by a [State](/usc/30/1702.md?p=16) under [subsection (a)](#a) shall be deposited in the Treasury of the [United States](/usc/30/1702.md?p=33) in the same manner, and subject to the same requirements, as are applicable in the case of any rent, [royalty](/usc/30/1702.md?p=14), or interest collected by an officer or employee of the [United States](/usc/30/1702.md?p=33), except that such amounts shall be deposited in the Treasury not later than 10 days after receipt by the [State](/usc/30/1702.md?p=16).

# §1735. Delegation of royalty collections and related activities

- (a) **Authorization of Secretary—** Upon written request of any [State](/usc/30/1702.md?p=16), the [Secretary](/usc/30/1702.md?p=15) is authorized to delegate, in accordance with the provisions of this section, all or part of the authorities and responsibilities of the [Secretary](/usc/30/1702.md?p=15) under this chapter to:
  - (1) conduct inspections, audits, and investigations;
  - (2) receive and process [production](/usc/30/1702.md?p=13) and financial reports;
  - (3) correct erroneous report data;
  - (4) perform automated verification; and
  - (5) issue [demands](/usc/30/1702.md?p=23), subpoenas, and orders to perform restructured accounting, for [royalty](/usc/30/1702.md?p=14) management enforcement purposes,

  to any [State](/usc/30/1702.md?p=16) with respect to all [Federal land](/usc/30/1702.md?p=1) within the [State](/usc/30/1702.md?p=16).

- (b) **Prerequisites—** After notice and opportunity for a hearing, the [Secretary](/usc/30/1702.md?p=15) is authorized to delegate such authorities and responsibilities granted under this section as the [State](/usc/30/1702.md?p=16) has requested, if the [Secretary](/usc/30/1702.md?p=15) finds that—
  - (1) it is likely that the [State](/usc/30/1702.md?p=16) will provide adequate resources to achieve the purposes of this chapter;
  - (2) the [State](/usc/30/1702.md?p=16) has demonstrated that it will effectively and faithfully administer the rules and regulations of the [Secretary](/usc/30/1702.md?p=15) under this chapter in accordance with the requirements of subsections [(c)](#c) and [(d)](#d) of this section;
  - (3) such delegation will not create an unreasonable burden on any [lessee](/usc/30/1702.md?p=7);
  - (4) the [State](/usc/30/1702.md?p=16) agrees to adopt standardized reporting procedures prescribed by the [Secretary](/usc/30/1702.md?p=15) for [royalty](/usc/30/1702.md?p=14) and [production](/usc/30/1702.md?p=13) accounting purposes, unless the [State](/usc/30/1702.md?p=16) and all affected parties (including the [Secretary](/usc/30/1702.md?p=15)) otherwise agree;
  - (5) the [State](/usc/30/1702.md?p=16) agrees to follow and adhere to regulations and guidelines issued by the [Secretary](/usc/30/1702.md?p=15) pursuant to the [mineral leasing laws](/usc/30/1702.md?p=8) regarding valuation of [production](/usc/30/1702.md?p=13); and
  - (6) where necessary for a [State](/usc/30/1702.md?p=16) to have authority to carry out and enforce a delegated activity, the [State](/usc/30/1702.md?p=16) agrees to enact such laws and promulgate such regulations as are consistent with relevant Federal laws and regulations

  with respect to the [Federal lands](/usc/30/1702.md?p=1) within the [State](/usc/30/1702.md?p=16).

- (c) **Ruling as to consistency of State’s proposal—** After notice and opportunity for hearing, the [Secretary](/usc/30/1702.md?p=15) shall issue a ruling as to the consistency of a [State](/usc/30/1702.md?p=16)’s proposal with the provisions of this section and regulations under [subsection (d)](#d) within 90 days after submission of such proposal. In any unfavorable ruling, the [Secretary](/usc/30/1702.md?p=15) shall set forth the reasons therefor and [state](/usc/30/1702.md?p=16) whether the [Secretary](/usc/30/1702.md?p=15) will agree to delegate to the [State](/usc/30/1702.md?p=16) if the [State](/usc/30/1702.md?p=16) meets the conditions set forth in such ruling.
- (d) **Promulgation of standards and regulations with respect to delegation—** After consultation with [State](/usc/30/1702.md?p=16) authorities, the [Secretary](/usc/30/1702.md?p=15) 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)](#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](/usc/30/1702.md?p=16) under this section;
  - (4) receipt and processing of [production](/usc/30/1702.md?p=13) 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](/usc/30/1702.md?p=15); and
  - (9) issuance of [demands](/usc/30/1702.md?p=23), subpoenas, and orders to perform restructured accounting, for [royalty](/usc/30/1702.md?p=14) management enforcement purposes.

  Such standards and regulations shall be designed to provide reasonable assurance that a uniform and effective [royalty](/usc/30/1702.md?p=14) management system will prevail among the [States](/usc/30/1702.md?p=16). The records and accounts under [paragraph (2)](#d-2) shall be sufficient to allow the [Secretary](/usc/30/1702.md?p=15) to monitor the performance of any [State](/usc/30/1702.md?p=16) under this section.

- (e) **Revocation; issuance of demand or order by Secretary—** If, after notice and opportunity for a hearing, the [Secretary](/usc/30/1702.md?p=15) finds that any [State](/usc/30/1702.md?p=16) to which any authority or responsibility of the [Secretary](/usc/30/1702.md?p=15) 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](/usc/30/1702.md?p=15) under [subsection (b)](#b) can no longer be made, the [Secretary](/usc/30/1702.md?p=15) may revoke such delegation. If, after providing written notice to a [delegated State](/usc/30/1702.md?p=22) and a reasonable opportunity to take corrective action requested by the [Secretary](/usc/30/1702.md?p=15), the [Secretary](/usc/30/1702.md?p=15) determines that the [State](/usc/30/1702.md?p=16) has failed to issue a [demand](/usc/30/1702.md?p=23) or order to a Federal [lessee](/usc/30/1702.md?p=7) within the [State](/usc/30/1702.md?p=16), that such failure may result in an [underpayment](/usc/30/1702.md?p=32) of an [obligation](/usc/30/1702.md?p=25) due the [United States](/usc/30/1702.md?p=33) by such [lessee](/usc/30/1702.md?p=7), and that such [underpayment](/usc/30/1702.md?p=32) may be uncollected without Secretarial intervention, the [Secretary](/usc/30/1702.md?p=15) may issue such [demand](/usc/30/1702.md?p=23) 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](/usc/30/1702.md?p=15) shall compensate any [State](/usc/30/1702.md?p=16) for those costs which may be necessary to carry out the delegated activities under this Section.[^1] [Payment](/usc/30/1702.md?p=28) shall be made no less than every quarter during the fiscal year. Compensation to a [State](/usc/30/1702.md?p=16) may not exceed the [Secretary](/usc/30/1702.md?p=15)’s reasonably anticipated expenditure for performance of such delegated activities by the [Secretary](/usc/30/1702.md?p=15). Such costs shall be allocable for the purposes of [section 191(b) of this title](/usc/30/191.md?p=b) to the administration and enforcement of laws providing for the leasing of any onshore lands or interests in land owned by the [United States](/usc/30/1702.md?p=33). Any further allocation of costs under [section 191(b) of this title](/usc/30/191.md?p=b) made by the [Secretary](/usc/30/1702.md?p=15) for oil and gas activities, other than those costs to compensate [States](/usc/30/1702.md?p=16) 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](/usc/30/1702.md?p=15)’s authority to make allocations under [section 191(b) of this title](/usc/30/191.md?p=b) for non-oil and gas mineral activities. All moneys received from sales, bonuses, rentals, [royalties](/usc/30/1702.md?p=14), [assessments](/usc/30/1702.md?p=19) 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](/usc/30/1702.md?p=33).
- (g) **Judicial review—** Any action of the [Secretary](/usc/30/1702.md?p=15) to approve or disapprove a proposal submitted by a [State](/usc/30/1702.md?p=16) under this section shall be subject to judicial review in the [United States](/usc/30/1702.md?p=33) district court which includes the capital of the [State](/usc/30/1702.md?p=16) submitting the proposal.
- (h) **Existing delegation—** Any [State](/usc/30/1702.md?p=16) 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.

# §1736. Shared civil penalties


An amount equal to 50 per centum of any civil [penalty](/usc/30/1702.md?p=29) collected by the Federal Government under this chapter resulting from activities conducted by a [State](/usc/30/1702.md?p=16) or [Indian tribe](/usc/30/1702.md?p=4) pursuant to a cooperative agreement under [section 1732 of this title](/usc/30/1732.md) or a [State](/usc/30/1702.md?p=16) under a delegation under [section 1735 of this title](/usc/30/1735.md), shall be payable to such [State](/usc/30/1702.md?p=16) or tribe. Any [payments](/usc/30/1702.md?p=28) under this section shall be reduced by an amount equal to any [payments](/usc/30/1702.md?p=28) provided or due to such [State](/usc/30/1702.md?p=16) or [Indian tribe](/usc/30/1702.md?p=4) under the cooperative agreement or delegation, as applicable, during the fiscal year in which the civil [penalty](/usc/30/1702.md?p=29) is received, up to the total amount provided or due for that fiscal year.