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Cooperative Agreements (STRAC)

Overview

States and Indian tribes can form cooperative agreements with ONRR to partner on royalty management and compliance.

The Federal Oil and Gas Royalty Management Act (FOGRMA) of 1982 authorizes the Secretary of the Interior to enter into cooperative agreements with states or Indian tribes. ONRR and partners with cooperative agreements share oil and gas royalty management information. Cooperative agreements also allow states and tribes to inspect, audit, investigate, and enforce compliance on federal and Indian lands.

The State and Tribal Royalty Audit Committee (STRAC) is a committee composed of state and tribal partners with cooperative agreements.

Authority

A state or Indian tribe may request to enter into a cooperative agreement by sending a letter to the Director of ONRR. This letter should be from the governor, tribal chairman, or other appropriate official with delegation authority. We reimburse states and Indian tribes for the costs of performing authorized activities. These costs may include salaries, office equipment, and travel expenses.

Regulations:

Every state and Indian tribe must adhere to the same standards followed by ONRR. These standards include the Government Auditing Standards, the ONRR Audit Manual, and ONRR Compliance Review Manual.

Standards

ONRR reviews each participating State and Indian tribal program to determine whether it is:

  • Achieving satisfactory performance. This includes progress toward milestones, timely completion of audits, and/or conducting compliance reviews.
  • Adhering to records management system standards.
  • Requesting accurate costs for reimbursement.
  • Receiving satisfactory peer review ratings.
  • Adhering to ONNR's Audit Manual and Compliance Review Manual.
  • Maintaining an accurate and complete equipment inventory.

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