§ 1218.52 How does a lessee designate a Designee?

(a) If you are a lessee under 30 U.S.C. 1702(7), and you want to designate a person to make all or part of the payments due under a lease on your behalf under 30 U.S.C. 1712(a), you must notify ONRR or the applicable delegated state in writing of such designation by submitting Form ONRR-4425, Designation Form for Royalty Payment Responsibility. Your notification for each lease must include the following: (1) The lease number for the lease; (2) The type of products you make payments for e.g., oil, gas. (3) The type of payments you are responsible for e.g., royalty, minimum royalty, rental. (4) Whether you are: (i) A lessee of record (record title owner) in the lease; or (ii) An operating rights owner (working interest owner) in the lease, and the percentage of your operating rights ownership in the lease; (5) The name, address, Taxpayer Identification Number (TIN), and phone number of your Designee; (6) The name, address, and phone number of the individual to contact for the person you named in paragraph (a)(5) of this section; (7) Your TIN; (8) The date the designation is effective; (9) The date the designation terminates, if applicable, and (10) A copy of the written designation; (b) The person you designate under paragraph (a) of this section is your Designee under 30 U.S.C. 1701(24) and 30 U.S.C. 1712(a). (c) If you want to terminate a designation you made under paragraph (a) of this section, you must submit a revised Form ONRR-4425 before the termination stating: (1) The date the designation is due to terminate; and (2) If you are not reporting and paying royalties and making other payments to ONRR, a new designation under paragraph (a) of this section. (d) ONRR may require you to provide notice when there is a change in the percentage of your record title or operating rights ownership.