Alternative Dispute Resolution

ONRR uses Alternative Dispute Resolution (ADR) consistant with the Alternative Dispute Resolution Act of 1990. In addition, the Royalty Simplification and Fairness Act mandates at least one settlement consultation for federal oil and gas leases.

When to request ADR

  • A company may request ADR to address its royalty compliance issues at any time – during an audit, at the issue letter phase, at the order phase, or during an administrative or judicial appeal.
  • ONRR may or may not agree to ADR.
  • ONRR asks all companies if they are interested in ADR as part of its appeals process.

ADR Process

  • Lessee initiates the process by requesting discussions.
  • The ONRR ADR Branch builds a team with other ONRR divisions, and, if appropriate, with a State or Tribe, other Interior agencies, the Solicitor's Office, and/or Department of Justice.
  • ONRR facilitates negotiations to resolve issues through settlement or discussions to facilitate compliance.

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