"This is an issue of great interest to states eligible to perform delegable functions," said MMS Director Cynthia Quarterman, "and as the law requires, we have consulted extensively with them in developing this proposal."

While the Federal Oil and Gas Royalty Management Act of 1982 provided for the delegation of audits, inspections and investigations to states, RSFA, which amends that Act, has expanded that authority to also include receiving and processing production and royalty reports; correcting erroneous report data; performing automated verification; and issuing demands, oil and gas subpoenas, orders to perform restructured accounting, and related tolling agreements and notices to lessees. The law also requires the issuance of standards pertaining to those delegable functions and other relevant responsibilities.

"MMS is also proposing the delegation of many of these functions associated with solid mineral, geothermal and certain offshore leases," Quarterman added. "We believe that it is most efficient to delegate functions for these other leases since they comprise a significant amount of activity in several states."