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United States · Law · HR

H.R. 1975 (104th)

Federal Oil and Gas Royalty Simplification and Fairness Act of 1996

enactedUnited States· United States Congress· EN

Introduced

30 June 1995

Last action

13 August 1996 · President

Status

Became Public Law No: 104-185.

Sponsors

Ken Calvert, Rep. Brewster, Bill K. [D-OK-3], Rep. Dooley, Calvin M. [D-CA-20], Rep. Tauzin, W. J. (Billy) [D-LA-3], Frank Lucas, Rep. Cremeans, Frank A. [R-OH-6], WILLIAM THORNBERRY, Rep. Ortiz, Solomon P. [D-TX-27], Rep. Radanovich, George [R-CA-19], Rep. Hayes, James A. [D-LA-7], Rep. Ehrlich, Robert L., Jr. [R-MD-2], Rep. Frost, Martin [D-TX-24], Rep. Chapman, Jim [D-TX-1], Rep. Bentsen, Ken [D-TX-25]

Subjects

Energy

Source updated

7 April 2025

Energy

Summary

Federal Oil and Gas Royalty Simplification and Fairness Act of 1995 - Amends the Federal Oil and Gas Royalty Management Act of 1982 (FOGRMA) to set a six-year statute of limitations period for royalty underpayments owed by lessees of Federal lands to the United States, commencing the date on which the obligation becomes due. Declares that the running of such period shall not be suspended or tolled by any Federal action except the commencement of a judicial or administrative proceeding to collect the underpayment, or a written agreement between the Secretary of the Interior and a lessee to extend such period. Provides that a lessee's fraud or concealment in an attempt to defeat or evade payment of an obligation shall toll the statute of limitations. (Sec. 3) Requires the Director of the Minerals Management Service to issue a final decision in any administrative proceeding within one year from the date the proceeding commenced. Requires the Secretary to issue a final agency decision in any administrative proceeding within three years from its commencement. Prescribes guidelines for: (1) royalty obligations; (2) royalty overpayments, offsets and refunds; and (3) a six-year mandatory recordkeeping period. (Sec. 6) Modifies the guidelines for royalty interest, penalties, and payments to: (1) permit the Secretary to waive or forego interest; (2) restrict the billing for interest for any net underpayment to not less than one year following the subject reporting month; (3) use the Treasury Current Value of Funds Rate to compute interest due on late payments made by the Secretary and interest owed to lessee overpayment; (4) permit interest to be credited to lessee's net overpayment; and (5) provide a special payment arrangement for leases with minimal production. (Sec. 7) Authorizes the Secretary to impose an assessment of up to $250 for inaccurate reporting of information. Restricts audit and collection requirements for specified minimal oil and gas well production to prohibit the Secretary from conducting: (1) royalty reporting compliance and enforcement activities, levy assessments, or bill for comparisons between royalty reporting and production information; or (2) audits on such leases unless the Secretary has reason to believe that the lessee has not complied with certain payment obligations. (Sec. 9) Amends the Outer Continental Shelf Lands Act (OCSLA) to repeal the 60-day notice requirement placed upon commencement of an action by a private person to enforce compliance with the Act. (Sec. 10) Amends the OCSLA and the Mineral Leasing Act to permit any oil or gas royalty or net profit due the United States to be taken in kind at the Secretary's option. States that delivery of royalty in kind satisfies the lessee's royalty obligation and relieves the lessee of reporting and recordkeeping requirements. Amends OCSLA guidelines governing Federal gas sales to the public to permit the Secretary to sell gas by competitive bidding or private sale (removing the proscription against selling gas to the public at less than fair market value). (Sec. 11) Amends FOGRMA to restrict royalty payment and information requirements. Bars the Secretary from: (1) imposing additional data requirements, including data on allowances, payor information, selling arrangements, and revenue source; and (2) billing for, or collecting comparisons to productions, assessments, or interest on retroactive adjustments for de minimis production. (Sec. 12) Amends FOGRMA to repeal the current statute of limitations governing the recovery of penalties. Amends OCSLA to repeal the guidelines governing refunds or credit granted to a lessee for excess payments. (Sec. 13) Excludes Indian lands from the purview of this Act.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

  1. 30 June 1995

    Introduced

    Referred to the House Committee on Resources.

    Source: IntroReferral

  2. 30 June 1995

    Introduced

    Sponsor introductory remarks on measure. (CR E1385)

    Source: IntroReferral

  3. 30 June 1995

    Introduced

    Introduced in House

    Source: IntroReferral

  4. 30 June 1995

    Introduced

    Introduced in House

    Source: IntroReferral

  5. 7 July 1995

    Committee

    Executive Comment Requested from Interior.

    Source: Committee

  6. 7 July 1995

    Referred

    Referred to the Subcommittee on Energy and Mineral Resources.

    Source: Committee

  7. 18 July 1995

    Committee

    Subcommittee Hearings Held. Hearings Printed: H. Hrg. 104-27.

    Source: Committee

  8. 28 February 1996

    Committee

    Forwarded by Subcommittee to Full Committee (Amended) by Voice Vote.

    Source: Committee

  9. 28 February 1996

    Committee

    Subcommittee Consideration and Mark-up Session Held.

    Source: Committee

  10. 28 March 1996

    Vote

    Ordered to be Reported (Amended) by the Yeas and Nays: 20 - 7.

    Source: Committee

  11. 28 March 1996

    Committee

    Committee Consideration and Mark-up Session Held.

    Source: Committee

  12. 11 July 1996

    Calendars

    Placed on the Union Calendar, Calendar No. 341.

    Source: Calendars

  13. 11 July 1996

    Reported

    Reported (Amended) by the Committee on Resources. H. Rept. 104-667.

    Source: Committee

  14. 11 July 1996

    Reported

    Reported (Amended) by the Committee on Resources. H. Rept. 104-667.

    Source: Committee

  15. 16 July 1996

    Passed

    Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.

    Source: Floor

  16. 16 July 1996

    Passed

    Motion to reconsider laid on the table Agreed to without objection.

    Source: Floor

  17. 16 July 1996

    Passed

    On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.

    Source: Floor

  18. 16 July 1996

    Floor

    DEBATE - The House proceeded with forty minutes of debate.

    Source: Floor

  19. 16 July 1996

    Floor

    Considered under suspension of the rules. (consideration: CR H7597-7607)

    Source: Floor

  20. 16 July 1996

    Floor

    Mr. Calvert moved to suspend the rules and pass the bill, as amended.

    Source: Floor

  21. 17 July 1996

    Introduced

    Received in the Senate. Read twice. Placed on Senate Legislative Calendar under General Orders. Calendar No. 500.

    Source: Calendars

  22. 2 August 1996

    Passed

    Passed Senate without amendment by Unanimous Consent. (consideration: CR S9675-9678)

    Source: Floor

  23. 2 August 1996

    Passed

    Passed/agreed to in Senate: Passed Senate without amendment by Unanimous Consent.(consideration: CR S9675-9678)

    Source: Floor

  24. 5 August 1996

    Floor

    Message on Senate action sent to the House.

    Source: Floor

  25. 7 August 1996

    Floor

    Presented to President.

    Source: Floor

  26. 7 August 1996

    President

    Presented to President.

    Source: President

  27. 13 August 1996

    Became law

    Became Public Law No: 104-185.

    Source: President

  28. 13 August 1996

    Became law

    Signed by President.

    Source: BecameLaw

  29. 13 August 1996

    President

    Signed by President.

    Source: President

Votes

No vote records are attached yet.

Versions

Documents

15 official files

Enrolled Bill (text)

View fileDownload file

Sponsors

Related records

Sources

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