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Federal & Tribal Royalty Compliance

Davis Graham & Stubbs attorneys have significant experience assisting clients through every phase of federal and Indian royalty management. We advise clients on how to comply with Office of Natural Resources Revenue (ONRR) royalty reporting and valuation rules. We assist clients with:

  • the interpretation of the marketable condition rule and its application to each of a client’s gathering and processing contracts;
  • the application of ONRR calculated unbundling cost allocations (“UCAs”);
  • the identification of portions of transportation and processing costs for which allowances may be taken using alternatives to ONRR’s UCAs;
  • interfacing with ONRR on behalf of clients with questions on royalty compliance, filing of Oil & Gas Operations Reports on Form ONRR-4054, and Reports of Sales and Royalty Remittance on Form ONRR-2014 (“OGOR Reports”);
  • § Override requests;
  • § responding to data mining requests, demands for payment, orders to pay, orders to report, and orders for restructured accounting issued by ONRR;
  • § training of in-house marketing, land, production reporting, and revenue reporting groups; and
  • § performing internal self-audits.

We represent clients seeking review of ONRR orders through the administrative appeals processes before the ONRR Director and Interior Board of Land Appeals and, if necessary, in the federal courts. We also counsel clients facing civil penalties or administrative investigations. Finally, we advise clients on the royalty implications of new marketing contracts and acquisitions.

The ONRR royalty reporting and valuation rules are technical and complex, and we strive to make the compliance process straightforward and accessible. We work closely with both revenue accountants and in-house counsel to facilitate producers’ compliance with the rules, and we tailor our role to the needs of individual producers and their particular gathering and processing agreements and marketing agreements. Our clients range from small producers with a handful of federal or Indian wells to producers with thousands of wells.

Related Attorneys

person image - Kathleen C. Schroder

Kathleen C. Schroder

Partner, Federal Oil & Gas Leasing, Public Lands Law, Natural Resources & Environmental Litigation, Environmental Law & Litigation, Wildlife & Endangered Species, NEPA
303.892.7354

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