Energy Accounting Division is responsible for the accounting of royalty and fee revenue, processing of invoices, revenue payments, and overall general accounting functions within the Department of Energy.
The Federal Oil and Gas Royalty Management Act (FOGRMA) authorized the Department of Interior to enter into cooperative agreements with Indian tribes under section 202. Under a cooperative agreement, an Indian tribe is permitted to conduct inspections, audits, and investigations of activities on their Indian lands. The Southern Ute Indian Tribe is currently one of seven tribes to hold a cooperative agreement under FOGRMA section 202 Cooperative Agreements.
Royalty auditors conduct audits to ensure the oil and gas companies are paying the proper amount of royalties based on provisions of their lease agreements with the Southern Ute Indian Tribe. The audit trail follows the gas from wellhead production through the transportation system and treating facilities to the transmission line. Audits are conducted utilizing various federal guidelines and standards including Code of Federal Regulation, Generally Accepted Government Auditing Standards, and the ONRR Audit Manual. Industry is provided time to correct any reporting deficiencies and pay any additional royalties due based on audit findings.
The Southern Ute Indian Tribe imposes a severance tax on non-renewable energy minerals from Tribal trust lands, tribally owned fee lands, and allotted or restricted lands within the boundaries of the Southern Ute Indian Reservation.
The severance tax administrator conducts audits and monitors tax payments to ensure the Tribe is receiving the correct severance tax from the operators and/or working interest owners.
Severance Tax Code
The Severance Tax Code is the legal document used in the administration and enforcement of the Tribal Severance Tax.