§1734 State Suits Under Federal Law

Summary

A State may sue a person to get royalties, interest, or civil penalties it believes are owed for oil and gas leases on federal land in the State, but only if the belief is based on credible evidence. Before suing, the State must give the Secretary written notice and wait 90 days unless the Secretary waives that wait. If the Secretary issues a demand during those 90 days, the State must wait 45 days after the demand; if payment is made in that 45-day time, the State cannot sue. If the Secretary refers the matter to the U.S. Attorney General within that 45-day period or within 10 business days after it ends, and the Attorney General files a federal lawsuit within 45 days and keeps prosecuting it, the State may not bring its own suit. The State must tell the Secretary and Attorney General when it files suit. A federal district court where the lease is located handles the case and can order payment or compliance, and the court may award litigation costs and reasonable lawyer or expert fees if appropriate. Any civil penalty the State recovers it keeps and can spend as it chooses. Any rent, royalty, or interest the State recovers must be put into the U.S. Treasury the same way federal collections are handled, and must be deposited no later than 10 days after the State receives it.