MMS plans to streamline appeals process

U.S. Minerals Management Service has proposed regulations to streamline its appeals process, setting a 16-month limit for MMS to process administrative appeals by lessees, producers, and royalty payors on federal and Indian lands. MMS Director Cynthia Quarterman said, "The existing system provides no overall time limit for deciding administrative appeals, and it often took several years for the appeals to be decided in the first of two appellate levels within the Interior Department.

Nov. 25, 1996

3 min read

MMS Director Cynthia Quarterman said, "The existing system provides no overall time limit for deciding administrative appeals, and it often took several years for the appeals to be decided in the first of two appellate levels within the Interior Department.

"We believe that appellants and recipients of royalty revenue deserve faster resolution of disputes. MMS has completed work on 145 cases since May 1 in a concerted effort to reduce the backlog of cases. We've cleared up all active cases filed through 1993 with only a handful pending, and we're planning on completing all active cases through 1994 by the end of the year.

"We've also decreased the number of pending appeals by 43% from its peak a few years ago. This represents a 40% increase in productivity over past periods due to streamlined and refocused processes. Having virtually eliminated the older case workload, MMS is now prepared to meet the requirements of this proposed rule."

MMS said appeals it does not decide within the 16-month time limit, except those in which tolling agreements or formal extensions of time are entered by the appellant and MMS, would automatically be deemed "denied" by MMS, and the appellant could continue its appeal before the Interior's Board of Land Appeals.

Statutory mandate

The new Federal Oil and Gas Simplification and Fairness Act establishes a 33-month period for Interior to issue a final decision on administrative appeals involving royalty payments on federal oil and gas.

MMS said, "This rule will ensure that appeals are decided at the first level of departmental review within the first half of the statutory deadline."

Quarterman said the number of appeals filed yearly should decrease due to changes MMS has made to streamline the royalty collection process.

The proposed rule sets a $100 uniform filing fee on all appeals, although the fee for appeals filed by Indian tribes or allottees will be waived. MMS will return the fee, if no decision is made within the 16-month time for the appeal. The amount of the filing fee will be reevaluated periodically.

Only appeals filed after the rule becomes effective will be subject to the time limitation and filing requirement changes.

MMS will accept public comments on the proposed rule until Dec. 27.