§ 1712. Duties of lessees, operators, and motor vehicle transporters
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(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, § 102, Jan. 12, 1983, 96 Stat. 2450; Pub. L. 104–185, § 6(g), Aug. 13, 1996, 110 Stat. 1715.)
Connections46 cite this · traces to 1
Cited by 46 sections · top 31
U.S. Code
CFR
- § 1218.52How does a lessee designate a Designee?
- § 556.604What are my rights and obligations as a record title owner?
- § 1243.7What must a person do when posting a bond or other surety instrument or demonstrating financial solvency on behalf of an appellant?
- § 556.711What is the effect of a record title holder's sublease of operating rights on the record title holder's liability?
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- Public Law 104–185To improve the management of royalties from Federal and Outer Continental Shelf oil and gas leases, and for other purposes
- Public Law 97–451To ensure that all oil and gas originated on the public lands and on the Outer Continental Shelf are properly accounted for under the direction of the Secretary of the Interior, and for other purposes
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- Pub. L. 97–451, title I, § 102
- 96 Stat. 2450
- Pub. L. 104–185, § 6(g)
- 110 Stat. 1715
- Pub. L. 104–185
- section 11 of Pub. L. 104–185
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§ 1712
Duties of lessees, operators, and motor vehicle transporters
Fed. Reg.×23
U.S.C.×8
Bills×6
C.F.R.×6
Stat.×2
Stat. Comp.×1
Pub. L.Pub. L. 97–451, title I, § 102
Stat.96 Stat. 2450
Pub. L.Pub. L. 104–185, § 6(g)
Stat.110 Stat. 1715
Pub. L.Pub. L. 104–185
Cites 7 · showing 6Cited by 46 across 6 sources