---
kind: "section"
citation: "30 U.S.C. § 1711"
title: "30"
title_heading: "Mineral Lands and Mining"
number: "1711"
heading: "Duties of Secretary"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/30/1711"
units:
  - "Chapter 29 — Oil and Gas Royalty Management"
  - "Subchapter I — Federal Royalty Management and Enforcement"
---

# §1711. Duties of Secretary

- (a) **Establishment of inspection, collection, and accounting and auditing system—** The [Secretary](/usc/30/1702.md?p=15) shall establish a comprehensive inspection, collection and fiscal and [production](/usc/30/1702.md?p=13) accounting and auditing system to provide the capability to accurately determine oil and gas [royalties](/usc/30/1702.md?p=14), interest, fines, [penalties](/usc/30/1702.md?p=29), fees, deposits, and other [payments](/usc/30/1702.md?p=28) owed, and to collect and account for such amounts in a timely manner.
- (b) **Annual inspection of lease sites; training—** The [Secretary](/usc/30/1702.md?p=15) shall—
  - (1) establish procedures to ensure that authorized and properly identified representatives of the [Secretary](/usc/30/1702.md?p=15) will inspect at least once annually each [lease site](/usc/30/1702.md?p=6) producing or expected to produce significant quantities of [oil or gas](/usc/30/1702.md?p=9) in any year or which has a history of noncompliance with applicable provisions of law or regulations; and
  - (2) establish and maintain adequate programs providing for the training of all such authorized representatives in methods and techniques of inspection and accounting that will be used in the implementation of this chapter.
- (c) **Audit and reconciliation of lease accounts; contracts with certified public accountants; availability of books, accounts, records, etc., necessary for audit—**
  - (1) The [Secretary](/usc/30/1702.md?p=15) shall audit and reconcile, to the extent practicable, all current and past [lease](/usc/30/1702.md?p=5) accounts for [leases](/usc/30/1702.md?p=5) of [oil or gas](/usc/30/1702.md?p=9) and take appropriate actions to make additional collections or [refunds](/usc/30/1702.md?p=30) as warranted. The [Secretary](/usc/30/1702.md?p=15) shall conduct audits and reconciliations of [lease](/usc/30/1702.md?p=5) accounts in conformity with the business practices and recordkeeping systems which were required of the [lessee](/usc/30/1702.md?p=7) by the [Secretary](/usc/30/1702.md?p=15) for the period covered by the audit. The [Secretary](/usc/30/1702.md?p=15) shall give priority to auditing those [lease](/usc/30/1702.md?p=5) accounts identified by a [State](/usc/30/1702.md?p=16) or [Indian tribe](/usc/30/1702.md?p=4) as having significant potential for [underpayment](/usc/30/1702.md?p=32). The [Secretary](/usc/30/1702.md?p=15) may also audit accounts and records of selected [lessees](/usc/30/1702.md?p=7) and [operators](/usc/30/1702.md?p=11).
  - (2) The [Secretary](/usc/30/1702.md?p=15) may enter into contracts or other appropriate arrangements with independent certified public accountants to undertake audits of accounts and records of any [lessee](/usc/30/1702.md?p=7) or [operator](/usc/30/1702.md?p=11) relating to the [lease](/usc/30/1702.md?p=5) of [oil or gas](/usc/30/1702.md?p=9). Selection of such independent certified public accountants shall be by competitive bidding in accordance with chapters [1](/usc/40/chstI/ch1.md) to [11](/usc/40/chstI/ch11.md) of title 40 and division C (except sections 3302, 3307(e), 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of [title 41](/usc/41.md), except that the [Secretary](/usc/30/1702.md?p=15) may not enter into a contract or other arrangement with any independent certified public accountant to audit any [lessee](/usc/30/1702.md?p=7) or [operator](/usc/30/1702.md?p=11) where such [lessee](/usc/30/1702.md?p=7) or [operator](/usc/30/1702.md?p=11) is a primary audit client of such certified public accountant.
  - (3) All books, accounts, financial records, reports, files, and other papers of the [Secretary](/usc/30/1702.md?p=15), or used by the [Secretary](/usc/30/1702.md?p=15), which are reasonably necessary to facilitate the audits required under this section shall be made available to any [person](/usc/30/1702.md?p=12) or governmental entity conducting audits under this chapter.

## Source credit

(Pub. L. 97–451, title I, § 101, Jan. 12, 1983, 96 Stat. 2449.)

## Notes

### Editorial Notes

### Codification

In subsec. (c)(2), “chapters 1 to 11 of title 40 and division C (except sections 3302, 3307(e), 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41” substituted for “the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 252)” on authority of Pub. L. 107–217, § 5(c), Aug. 21, 2002, 116 Stat. 1303, which Act enacted Title 40, Public Buildings, Property, and Works, and Pub. L. 111–350, § 6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts.