§1715 Explanation of Payments

Summary

When the United States pays a State for an oil or gas lease on Federal land, or puts money into an Indian tribe’s or allottee’s account for an oil or gas lease on Indian land, the payment must come with a clear explanation. The explanation must say what kind of payment it is (for example royalty, bonus, interest, fine, or rental), the time period covered, the source of the money, how much was produced, the royalty rate, the unit value, and any other details agreed to with the recipient. The rule applies to payments made after October 1, 1983, unless the Secretary sets an earlier effective date by rule.