Federal Oil and Gas Royalty Management

To ensure that all oil, gas, and solid minerals originated on the public lands and on the Outer Continental Shelf are properly accounted for under the direction of the Secretary of the Interior, and for other purposes.

Examples of Funded Projects

Cooperative agreements with States and Tribes to conduct audits, investigations and inspections related to mineral payments made to the MMS which are attributable to leased Federal and Indian lands within State and Tribal boundaries and on the Outer Continental Shelf.

Agency - Department of the Interior

The Department of the Interior protects and provides access to the Nation's natural and cultural heritage, including responsibilities to Indian tribes and island communities. Departmental goals include resource protection and usage, overseeing recreational opportunities, serving communities and excellence in management.

Office - Mr. Patrick Milano, P.O.

Box 25165, Mail Stop 390B2, Denver, CO 80225-0165.

Telephone: (303) 231-3124, fax (303) 231-3473, email: patrick.milano@mms.gov.
Website Address


Program Accomplishments

State and Tribal compliance activities contributed to meeting Government Performance and Results Act (GPRA) goals for the MMS. For fiscal year 2008, 18 applications were received and awarded.

Uses and Use Restrictions

All projects are restricted to State and Tribal Governments.

No discretionary funds are available under this program.

Eligibility Requirements

Applicant Eligibility

State and Tribal Governments as specified in Title II of the Federal Oil and Gas Royalty Management Act of 1982, as amended.

Beneficiary Eligibility

States and Federally recognized Tribal Governments that receive funds collected as a result of the compliance activities on Federal and Indian mineral leases.


Must follow 30 CFR Parts 200 to 699 Mineral Resources, General Accountability Offices (GAO) Generally Accepted Government Audit Standards (Yellowbook), and Minerals Management Service Audit and Compliance Procedures.

Aplication and Award Process

Preapplication Coordination

This program is eligible for coverage under E.O.

12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point-of-contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.

Application Procedures

For grants awarded, the standard application forms furnished by the Federal agency as required by 43 CFR Part 12, Subpart C, "Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments" will apply. Also, reference the procedures outlined in 30 CFR 227.103 entitled, "What must a States delegation proposal contain?" For Indian tribes reference the procedures outlined in 30 CFR 228.100 entitled, "Entering into an Agreement."

Award Procedures

Projects are reviewed at the Minerals Management Service (MMS) Minerals Revenue Management (MRM) Program level, and funding recommendations are made through each State and Tribe's annual work plan. Final budget approvals rest with the MMS/MRM Associate Directors Washington Office.


For recipients on the Federal fiscal year cycle, applications are due on July 1st of each year. For recipients operating on an alternate fiscal year, applications are due 90 days prior to award.


Federal Oil and Gas Royalty Management Act of 1982, Public Law 97-451, as amended.

Range of Approval/Disapproval Time

Projects are approved through the Bureau budget cycle that normally requires 90 days to receive funding.




For State agreements, 30 CFR 227.110 entitled, When and for how long are delegation agreements effective? For Tribal agreements, 30 CFR 228.101 entitled, Terms of Agreement.

Assistance Considerations

Formula and Matching Requirements

This program has no statutory formula and no matching requirements.

Length and Time Phasing of Assistance

No specific restrictions, however, projects are funded on a year to year basis, and funds are expended during a particular fiscal year. Funding is released either monthly or quarterly through the fiscal year.

Post Assistance Requirements


Performance monitoring schedules and/or progress reports are required quarterly.

Financial status reports are required at the end of the yearly performance period.


In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Nonprofit Organizations, Nonfederal entities that receive financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133.


Records relating to work performed and costs are kept by the Bureau. There is no fixed records schedule. Records for grants awarded to State and Local Governments will be maintained in accordance with the provisions of 43 CFR Part 12, Subpart C, "Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments."

Financial Information

Account Identification



(Cooperative Agreements) FY 07 $9,490,000; FY 08 $10,180,000; and FY 09 est $10,480,000.

Range and Average of Financial Assistance

$70,000 to $2,100,000; $536,000.

Regulations, Guidelines, and Literature

MMS's cooperative (tribal) and delegated (State) audit program is basically guided by the provisions in 30 CFR Parts 227, 228, and 229. States and Tribes use the guidance contained in the GAO Yellowbook and two MMS procedural manuals for audits and compliance activities.

Information Contacts

Regional or Local Office

Mr. Patrick Milano, P.O. Box 25165, Mail Stop 390B2, Denver, CO 80225-0165. Telephone: (303) 231-3124, fax (303) 231-3473, email: patrick.milano@mms.gov.

Headquarters Office

Associate Director for Minerals Revenue Management, Minerals Management Service, 1849 C St., NW., Mail Stop 4230, Washington, DC 20240. Telephone: (202) 208-3500.

Criteria for Selecting Proposals

Criteria used to select assistance proposals are based on a balanced review including relevance to program objectives, merit, and cost effectiveness.

Social Entrepreneurship

Philanthropy: Fortifying American Democracy

Robert Gallucci, President, John D. and Catherine T. MacArthur Foundation, writes that philanthropy should at least bolster America’s democracy.

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