Office of Natural Resources Revenue--Cooperative Agreements

The Office of Natural Resources Revenue (ONRR) enters into cooperative agreements with States and Indian Tribes to conduct audits of certain leases. ONRR must pay a State or Tribe 50 percent of civil penalties collected as a result of their audits, and offset its original obligation for the cooperative agreement by that amount. 30 U.S.C. 1736. ONRR should deobligate its appropriation by that amount and, if the appropriation has not yet expired, the deobligated amounts become part of the unobligated balance of the appropriation. Consistent with the account closing law, 31 U.S.C. 1551-1553, if the appropriation has expired, the deobligated amounts are only available to adjust previously incurred obligations.