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Current as of January 02, 2025 | Updated by Findlaw Staff
Automated verification involves systematic monitoring of production and royalty reports to identify and resolve reporting or payment discrepancies. States may perform the following:
(a) Automated comparison of sales volumes reported by royalty reporters to sales and transfer volumes reported by production reporters. If you request delegation of automated comparison of sales and production volumes, you must perform at least the following functions:
(1) Performing an initial sales volume comparison between royalty and production reports;
(2) Performing subsequent comparisons when reporters adjust royalty or production reports;
(3) Checking unit prices for reasonable product valuation based on reference price ranges ONRR provides;
(4) Resolving volume variances using written correspondence, telephone inquiries, or other media;
(5) Maintaining appropriate file documentation to support case resolution; and
(6) Issuing orders to correct reports or payments;
(b) Any one or more of the following additional automated verification functions:
(1) Verifying compliance with lease financial terms, such as payment of rent, minimum royalty, and advance royalty;
(2) Identifying and resolving improper adjustments;
(3) Identifying late payments and insufficient estimates, including calculating interest owed to ONRR and verifying payor-calculated interest owed to ONRR;
(4) Calculating interest due to a lessee or its designee for an adjustment or refund, including identifying overpayments and excessive estimates;
(5) Verifying royalty rates; and
(6) Verifying compliance with transportation and processing allowance limitations;
(c) Issuing notices and bills associated with any of the functions under paragraphs (a) and (b) of this section; and
(d) Providing assistance to ONRR for any of these delegated functions on appealed demands or orders, including meeting timeframes, supplying information, using the appropriate format, taking remanded actions, modifying orders, and providing oral and written briefing and testimony as expert witnesses.
Cite this article: FindLaw.com - Code of Federal Regulations Title 30. Mineral Resources § 30.1227.600 What automated verification functions may a State perform? - last updated January 02, 2025 | https://codes.findlaw.com/cfr/title-30-mineral-resources/cfr-sect-30-1227-600/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.
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