If your performance of the delegated function does not comply with your delegation agreement, or the Standards, or if ONRR finds that you can no longer meet the statutory requirements under §1227.106, then ONRR may:

(a) Notify you in writing of your noncompliance or inability to comply. The notice will prescribe corrective actions you must take, and how long you have to comply. You may ask ONRR for an extension of time to comply with the notice. In your extension request you must explain why you need more time; and

(b) If you do not take the prescribed corrective actions within the time that ONRR allows in a notice issued under paragraph (a) of this section, then ONRR may:

(1) Initiate proceedings under §1227.802 to terminate all or a part of your delegation agreement;

(2) Withhold compensation provided to you under §1227.112; and

(3) Perform the delegated function, before terminating or without terminating your delegation agreement, including, but not limited to, issuing a demand or order to a Federal lessee, or its designee, or any other person when:

(i) Your failure to issue the demand or order would result in an underpayment of an obligation due ONRR; and

(ii) The underpayment would go uncollected without ONRR intervention.