January 01, 2016

The Office of Natural Resources Revenue: There’s a New Sheriff in Town!

Kathleen C. Schroder and Peter J. Schaumberg

Since the minerals revenue management functions of the Department of the Interior were relocated to the Office of Natural Resources Revenue (ONRR) in 2010, federal and Indian oil and gas lessees have endured a dramatic increase in enforcement actions relating to their royalty reporting and payment obligations. Press releases published by ONRR reveal that, over the last five years, the agency has sought to assess oil and gas companies at least $37 million in civil penalties, an amount that far exceeds the civil penalties assessed prior to 2010.

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