Opinion ID: 695254
Heading Depth: 2
Heading Rank: 2

Heading: Responsibility for Collecting and Paying Royalties to Utah

Text: 24 The federal Defendants claim that the district court erred in ordering the Secretary of the Interior to collect and pay to Utah royalties due under the Act. We review questions of law de novo. Estate of Holl v. Commissioner, 967 F.2d 1437, 1438 (10th Cir.1992). 25 The federal Defendants argue that the Secretary is not obligated to carry out this administration of royalties. The Act is silent as to who holds the responsibility of royalty collection. FOGRMA provides, however, that [t]he Secretary shall establish a comprehensive inspection, collection and fiscal and production accounting and auditing system to provide the capability to accurately determine oil and gas royalties ... and to collect and account for such amounts in a timely manner. 30 U.S.C. Sec. 1711(a) (West 1986). Moreover, Congress has found that the Secretary should aggressively carry out his trust responsibility in the administration of Indian oil and gas. Id. Sec. 1701(a)(4). 26 Defendants argue that requiring the Secretary to collect and pay over the royalties is contrary to the express terms and purpose of the IMDA. We disagree. Just because a regulation promulgated pursuant to the IMDA allows parties to designate a party other than the Secretary to collect royalties does not mean that the Secretary may never handle such administration. See 25 C.F.R. Sec. 225.31 (1994). 27 We find no evidence that the parties to the agreement designated another party to collect and settle royalties owed to Utah. Moreover, the agreement provides that the Operator agrees to be supervised and monitored by ... any ... agency of the Department of Interior as set forth in Title 30 and Title 25 of the Code of Federal Regulations and any other applicable law or regulation. Aplt.App. at 98. Consequently, it was not error for the district court to order the Secretary to perform the administration of royalties. We are not suggesting that the Secretary pay the sum due out of governmental monetary sources, but that he oversee the collection of the proper amount from the Navajo Nation and the payment thereof to Utah. 28 AFFIRMED.