---
kind: "section"
citation: "30 U.S.C. § 1712"
title: "30"
title_heading: "Mineral Lands and Mining"
number: "1712"
heading: "Duties of lessees, operators, and motor vehicle transporters"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/30/1712"
units:
  - "Chapter 29 — Oil and Gas Royalty Management"
  - "Subchapter I — Federal Royalty Management and Enforcement"
---

# §1712. Duties of lessees, operators, and motor vehicle transporters

- (a) **Liability for royalty payments—** In order to increase receipts and achieve effective collections of [royalty](/usc/30/1702.md?p=14) and other [payments](/usc/30/1702.md?p=28), a [lessee](/usc/30/1702.md?p=7) who is required to make any [royalty](/usc/30/1702.md?p=14) or other [payment](/usc/30/1702.md?p=28) under a [lease](/usc/30/1702.md?p=5) or under the [mineral leasing laws](/usc/30/1702.md?p=8), shall make such [payments](/usc/30/1702.md?p=28) in the time and manner as may be specified by the [Secretary](/usc/30/1702.md?p=15) or the applicable [delegated State](/usc/30/1702.md?p=22). A [lessee](/usc/30/1702.md?p=7) may designate a [person](/usc/30/1702.md?p=12) to make all or part of the [payments](/usc/30/1702.md?p=28) due under a [lease](/usc/30/1702.md?p=5) on the [lessee](/usc/30/1702.md?p=7)’s behalf and shall notify the [Secretary](/usc/30/1702.md?p=15) or the applicable [delegated State](/usc/30/1702.md?p=22) in writing of such designation, in which event said designated [person](/usc/30/1702.md?p=12) may, in its own name, pay, offset or [credit](/usc/30/1702.md?p=21) monies, make [adjustments](/usc/30/1702.md?p=17), request and receive [refunds](/usc/30/1702.md?p=30) and submit reports with respect to [payments](/usc/30/1702.md?p=28) required by the [lessee](/usc/30/1702.md?p=7). Notwithstanding any other provision of this chapter to the contrary, a [designee](/usc/30/1702.md?p=24) shall not be liable for any [payment](/usc/30/1702.md?p=28) [obligation](/usc/30/1702.md?p=25) under the [lease](/usc/30/1702.md?p=5). The [person](/usc/30/1702.md?p=12) owning operating rights in a [lease](/usc/30/1702.md?p=5) shall be primarily liable for its pro rata share of [payment](/usc/30/1702.md?p=28) [obligations](/usc/30/1702.md?p=25) under the [lease](/usc/30/1702.md?p=5). If the [person](/usc/30/1702.md?p=12) owning the legal record title in a [lease](/usc/30/1702.md?p=5) is other than the operating rights owner, the [person](/usc/30/1702.md?p=12) owning the legal record title shall be secondarily liable for its pro rata share of such [payment](/usc/30/1702.md?p=28) [obligations](/usc/30/1702.md?p=25) under the [lease](/usc/30/1702.md?p=5).
- (b) **Development of and compliance with site security plan and minimum site security measures by operators; notification to Secretary of well production—** An [operator](/usc/30/1702.md?p=11) shall—
  - (1) develop and comply with a site security plan designed to protect the [oil or gas](/usc/30/1702.md?p=9) produced or stored on an onshore [lease site](/usc/30/1702.md?p=6) from theft, which plan shall conform with such minimum standards as the [Secretary](/usc/30/1702.md?p=15) may prescribe by rule, taking into account the variety of circumstances at [lease sites](/usc/30/1702.md?p=6);
  - (2) develop and comply with such minimum site security measures as the [Secretary](/usc/30/1702.md?p=15) deems appropriate to protect [oil or gas](/usc/30/1702.md?p=9) produced or stored on a [lease site](/usc/30/1702.md?p=6) or on the Outer Continental Shelf from theft; and
  - (3) not later than the 5th business day after any well begins [production](/usc/30/1702.md?p=13) anywhere on a [lease site](/usc/30/1702.md?p=6) or allocated to a [lease site](/usc/30/1702.md?p=6), or resumes [production](/usc/30/1702.md?p=13) in the case of a well which has been off of [production](/usc/30/1702.md?p=13) for more than 90 days, notify the [Secretary](/usc/30/1702.md?p=15), in the manner prescribed by the [Secretary](/usc/30/1702.md?p=15), of the date on which such [production](/usc/30/1702.md?p=13) has begun or resumed.
- (c) **Possession of documentation by transporters of oil or gas by motor vehicle or pipeline—**
  - (1) Any [person](/usc/30/1702.md?p=12) engaged in transporting by motor vehicle any oil from any [lease site](/usc/30/1702.md?p=6), or allocated to any such [lease site](/usc/30/1702.md?p=6), shall carry, on his [person](/usc/30/1702.md?p=12), in his vehicle, or in his immediate control, documentation showing, at a minimum, the amount, origin, and intended first destination of the oil.
  - (2) Any [person](/usc/30/1702.md?p=12) engaged in transporting any [oil or gas](/usc/30/1702.md?p=9) by pipeline from any [lease site](/usc/30/1702.md?p=6), or allocated to any [lease site](/usc/30/1702.md?p=6), on Federal or [Indian lands](/usc/30/1702.md?p=3) shall maintain documentation showing, at a minimum, amount, origin, and intended first destination of such [oil or gas](/usc/30/1702.md?p=9).

## Source credit

(Pub. L. 97–451, title I, § 102, Jan. 12, 1983, 96 Stat. 2450; Pub. L. 104–185, § 6(g), Aug. 13, 1996, 110 Stat. 1715.)

## Notes

### Editorial Notes

### Amendments

1996—Subsec. (a). Pub. L. 104–185 inserted heading and amended text generally. Prior to amendment, text read as follows: “A lessee—

“(1) who is required to make any royalty or other payment under a lease or under the mineral leasing laws, shall make such payments in the time and manner as may be specified by the Secretary; and

“(2) shall notify the Secretary, in the time and manner as may be specified by the Secretary, of any assignment the lessee may have made of the obligation to make any royalty or other payment under a lease or under the mineral leasing laws.”

### Statutory Notes and Related Subsidiaries

### Effective Date of 1996 Amendment

Amendment by Pub. L. 104–185 applicable with respect to the production of oil and gas after the first day of the month following Aug. 13, 1996, see section 11 of Pub. L. 104–185, set out as a note under section 1701 of this title.

### Applicability of 1996 Amendment

Amendment by Pub. L. 104–185 not applicable to any privately owned minerals or with respect to Indian lands, see sections 9 and 10 of Pub. L. 104–185, set out as a note under section 1701 of this title.