Southern Ute Department of Energy

Energy Accounting

Energy Accounting

Rig
Courtesy of DOE

The accounting division is responsible for the administration of the Tribal Severance Tax Code ensuring the Tribe receives its entitled severance tax revenue.

Royalty audits are conducted by auditors to verify the Tribe receives the proper royalty amounts under a cooperative agreement with Office of Natural Resources Revenue (ONRR).

The division is responsible for the accounting of revenue, processing of invoices, revenue payments, and overall general accounting functions within the Department of Energy.

Severance Tax

A severance tax is a tax imposed on the removal of nonrenewable resources such as crude oil, condensate, and natural gas.  The Tribal Severance tax is imposed on producers and any interest owner of minerals severed from lands subject to the jurisdiction of the Tribe.

Audits are conducted to ensure operators and/or interest owners are paying the correct severance tax.

Severance Tax Code

The Severance Tax Code is the legal document used in the administration and enforcement of the Tribal Severance Tax.

Royalty Auditing

A royalty audit is an audit of an oil and gas operator to determine if the operator is paying the proper amount of royalties or participations and complying with relevant provisions of their agreement with the Southern Ute Indian Tribe.  Audits are conducted for compliance and to ensure the royalties  were calculated and paid correctly to the Southern Ute Indian Tribe.  Operators are provided time to correct deficiencies and pay any royalties owed from the audit period.