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30 U.S.C. § 1722 — Royalty terms and conditions, interest, and penalties

Federal law — U.S. Code and appendices · legal_authorities

30 U.S.C. § 1722 — Royalty terms and conditions, interest, and penalties

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Stable record: federal_law:legal_authorities:record_usc_92e5b24f89e3b5a2374038d1
Source file: Laws/federal/codes/united-states-code/title-30/section-1722-royalty-terms-and-conditions-interest-and-penalties--729e1c362f.md
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Source location: Title 30, Chapter 29, § 1722; chapter-029-oil-and-gas-royalty-management.md

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**(a) Charge on late royalty payment or royalty payment deficiency** In the case of oil and gas leases where royalty payments are not received by the Secretary on the date that such payments are due, or are less than the amount due, the Secretary shall charge interest on such late payments or underpayments at the rate applicable under [section 6621 of title 26](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section6621&num=0&edition=prelim). In the case of an underpayment or partial payment, interest shall be computed and charged only on the amount of the deficiency and not on the total amount due. **(b) Charge on late payment made by Secretary to States** Any payment made by the Secretary to a State under [section 191 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title30-section191&num=0&edition=prelim) and any other payment made by the Secretary to a State from any oil or gas royalty received by the Secretary which is not paid on the date required under [section 191 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title30-section191&num=0&edition=prelim) shall include an interest charge computed at the rate applicable under [section 6621 of title 26](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section6621&num=0&edition=prelim). **(c) Deposit in royalty accounts of charges on royalties due and owing Indians** All interest charges collected under this chapter or under other applicable laws because of nonpayment, late payment or underpayment of royalties due and owing an Indian tribe or an Indian allottee shall be deposited to the same account as the royalty with respect to which such interest is paid. **(d) Charge on late deposit of royalty fund to an Indian account** Any deposit of royalty funds made by the Secretary to an Indian account which is not made by the date required under [section 1714 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title30-section1714&num=0&edition=prelim) shall include an interest charge computed at the rate applicable under [section 6621 of title 26](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section6621&num=0&edition=prelim). **(e) Nonliability of States for Secretary’s failure to comply with the Emergency Petroleum Allocation Act of 1973 or regulations thereunder** Notwithstanding any other provision of law, no State will be assessed for any interest or penalties found to be due against the Secretary for failure to comply with the Emergency Petroleum Allocation Act of 1973 [[15 U.S.C. 751](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section751&num=0&edition=prelim) et seq.] or regulation of the Secretary of Energy thereunder concerning crude oil certification or pricing with respect to crude oil taken by the Secretary in kind as royalty. Any State share of an overcharge, resulting from such failure to comply, shall be assessed against moneys found to be due and owing to such State as a result of audits of royalty accounts for transactions which took place prior to January 12, 1983, except that if after the completion of such audits, sufficient moneys have not been found due and owing to any State, the State shall be assessed the balance of that State’s share of the overcharge. **(f) Limitation on interest charged** Interest shall be charged under this section only for the number of days a payment is late. **(g) Omitted** **(h) Estimated payment** A lessee or its designee may make a payment for the approximate amount of royalties (hereinafter in this subsection “estimated payment”) that would otherwise be due for such lease by the date royalties are due for that lease. When an estimated payment is made, actual royalties are payable at the end of the month following the month in which the estimated payment is made. If the estimated payment was less than the amount of actual royalties due, interest is owed on the underpaid amount. If the lessee or its designee makes a payment for such actual royalties, the lessee or its designee may apply the estimated payment to future royalties. Any estimated payment may be adjusted, recouped, or reinstated at any time by the lessee or its designee. **(i) Volume allocation of oil and gas production** (1) Except as otherwise provided by this subsection— (A) a lessee or its designee of a lease in a unit or communitization agreement which contains only Federal leases with the same royalty rate and funds distribution shall report and pay royalties on oil and gas production for each production month based on the actual volume of production sold by or on behalf of that lessee; (B) a lessee or its designee of a lease in any other unit or communitization agreement shall report and pay royalties on oil and gas production for each production month based on the volume of oil and gas produced from such agreement and allocated to the lease in accordance with the terms of the agreement; and (C) a lessee or its designee of a lease that is not contained in a unit or communitization agreement shall report and pay royalties on oil and gas production for each production month based on the actual volume of production sold by or on behalf of that lessee. (2) This subsection applies only to requirements for reporting and paying royalties. Nothing in this subsection is intended to alter a lessee’s liability for royalties on oil or gas production based on the share of production allocated to the lease in accordance with the terms of the lease, a unit or communitization agreement, or any other agreement. (3) For any unit or communitization agreement if all lessees contractually agree to an alternative method of royalty reporting and payment, the lessees may submit such alternative method to the Secretary or the delegated State for approval and make payments in accordance with such approved alternative method so long as such alternative method does not reduce the amount of the royalty obligation. (4) The Secretary or the delegated State shall grant an exception from the reporting and payment requirements for marginal properties by allowing for any calendar year or portion thereof royalties to be paid each month based on the volume of production sold. Interest shall not accrue on the difference for the entire calendar year or portion thereof between the amount of oil and gas actually sold and the share of production allocated to the lease until the beginning of the month following such calendar year or portion thereof. Any additional royalties due or overpaid royalties and associated interest shall be paid, refunded, or credited within six months after the end of each calendar year in which royalties are paid based on volumes of production sold. For the purpose of this subsection, the term “marginal property” means a lease that produces on average the combined equivalent of less than 15 barrels of oil per well per day or 90 thousand cubic feet of gas per well per day, or a combination thereof, determined by dividing the average daily production of crude oil and natural gas from producing wells on such lease by the number of such wells, unless the Secretary, together with the State concerned, determines that a different production is more appropriate. (5) Not later than two years after August 13, 1996, the Secretary shall issue any appropriate demand for all outstanding royalty payment disputes regarding who is required to report and pay royalties on production from units and communitization agreements outstanding on August 13, 1996, and collect royalty amounts owed on such production. **(j) Production allocation** The Secretary shall issue all determinations of allocations of production for units and communitization agreements within 120 days of a request for determination. Until the Secretary issues the determination, the lessee or its designee of a lease in a unit or communitization agreement shall report and pay royalties on oil and gas production for each production month in accordance with the terms of the proposed allocation of production for the unit or communitization agreement. After the Secretary issues the determination, the lessee or its designee shall, as necessary, correct such reports and the amount of royalties paid on oil and gas production under the unit or communitization agreement by not later than the end of the third month following the month in which the lessee or its designee receives the determination from the Secretary. Subject to the full and timely monthly payment of royalties to all parties in accordance with the terms of the proposed allocation of production for the unit or communitization agreement, the Secretary shall waive interest due on obligations subject to the determination until the end of the third month following the month in which the lessee or its designee receives the determination from the Secretary. This subsection shall not apply to unit or communization agreements containing Indian lands.

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Federal law — U.S. Code and appendices · legal_authorities

30 U.S.C. § 1714 — Duties of lessees, operators, and motor vehicle transporters

**(a) Liability for royalty payments** In order to increase receipts and achieve effective collections of royalty and other payments, a lessee who is required to make any royalty or other payment under a lease or under the mineral leasing laws, shall make such payments in the time and manner as may be specified by the Secretary or the applicable delegated State. A lessee may designate a person to make all or part of the payments due under a lease on the lessee’s behalf and shall notify the Secretary or the applicable delegated State in writing of such designation, in which event said designated person may, in its own name, pay, offset or credit monies, make adjustments, request and receive refunds and submit reports with respect to payments required by the lessee. Notwithstanding any other provision of this chapter to the contrary, a designee shall not be liable for any payment obligation under the lease. The person owning operating rights in a lease shall be primarily liable for its pro rata share of payment obligations under the lease. If the person owning the legal record title in a lease is other than the operating rights owner, the person owning the legal record title shall be secondarily liable for its pro rata share of such payment obligations under the lease. **(b) Development of and compliance with site security plan and minimum site security measures by operators; notification to Secretary of well production** An operator shall— (1) develop and comply with a site security plan designed to protect the oil or gas produced or stored on an onshore lease site from theft, which plan shall conform with such minimum standards as the Secretary may prescribe by rule, taking into account the variety of circumstances at lease sites; (2) develop and comply with such min

Source: Supplied U.S. Code snapshot — release unconfirmed · 30 U.S.C. § 1714

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Federal law — U.S. Code and appendices · legal_authorities

30 U.S.C. § 191 — Disposition of moneys received

**(a) In general** All money received from sales, bonuses, royalties including interest charges collected under the Federal Oil and Gas Royalty Management Act of 1982 [[30 U.S.C. 1701](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title30-section1701&num=0&edition=prelim) et seq.], and rentals of the public lands under the provisions of this chapter and the Geothermal Steam Act of 1970 [[30 U.S.C. 1001](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title30-section1001&num=0&edition=prelim) et seq.], shall be paid into the Treasury of the United States; and, subject to the provisions of subsection (b), 50 per centum thereof shall be paid by the Secretary of the Treasury to the State other than Alaska within the boundaries of which the leased lands or deposits are or were located; said moneys paid to any of such States on or after January 1, 1976, to be used by such State and its subdivisions, as the legislature of the State may direct giving priority to those subdivisions of the State socially or economically impacted by development of minerals leased under this chapter, for (i) planning, (ii) construction and maintenance of public facilities, and (iii) provision of public service; and excepting those from Alaska, 40 per centum thereof shall be paid into, reserved, appropriated, as part of the reclamation fund created by the Act of Congress known as the Reclamation Act, approved June 17, 1902, and of those from Alaska, 90 per centum thereof shall be paid to the State of Alaska for disposition by the legislature thereof: Provided, That all moneys which may accrue to the United States under the provisions of this chapter and the Geothermal Steam Act of 1970 from lands within the naval petroleum reserves shall be deposited in the Treasury as “m

Source: Supplied U.S. Code snapshot — release unconfirmed · 30 U.S.C. § 191

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Federal law — U.S. Code and appendices · legal_authorities

30 U.S.C. § 1701 — Use of royalty-in-kind revenue by Minerals Management Service

That in fiscal year 2006 and thereafter, the MMS may under the royalty-in-kind program, or under its authority to transfer oil to the Strategic Petroleum Reserve, use a portion of the revenues from royalty-in-kind sales, without regard to fiscal year limitation, to pay for transportation to wholesale market centers or upstream pooling points, to process or otherwise dispose of royalty production taken in kind, and to recover MMS transportation costs, salaries, and other administrative costs directly related to the royalty-in-kind program.

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Federal law — U.S. Code and appendices · legal_authorities

26 U.S.C. § 6621 — Determination of rate of interest

**(a) General rule** (1) **Overpayment rate** — The overpayment rate established under this section shall be the sum of— (A) the Federal short-term rate determined under subsection (b), plus (B) 3 percentage points (2 percentage points in the case of a corporation). To the extent that an overpayment of tax by a corporation for any taxable period (as defined in subsection (c)(3), applied by substituting “overpayment” for “underpayment”) exceeds $10,000, subparagraph (B) shall be applied by substituting “0.5 percentage point” for “2 percentage points”. (2) **Underpayment rate** — The underpayment rate established under this section shall be the sum of— (A) the Federal short-term rate determined under subsection (b), plus (B) 3 percentage points. **(b) Federal short-term rate** For purposes of this section— (1) **General rule** — The Secretary shall determine the Federal short-term rate for the first month in each calendar quarter. (2) **Period during which rate applies** (A) *In general* — Except as provided in subparagraph (B), the Federal short-term rate determined under paragraph (1) for any month shall apply during the first calendar quarter beginning after such month. (B) *Special rule for individual estimated tax* — In determining the addition to tax under section 6654 for failure to pay estimated tax for any taxable year, the Federal short-term rate which applies during the 3rd month following such taxable year shall also apply during the first 15 days of the 4th month following such taxable year. (3) **Federal short-term rate** — The Federal short-term rate for any month shall be the Federal short-term rate determined during such month by the Secretary in accordance with section 1274(d). Any such rate shall be rounded to the nearest full

Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 6621

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Federal law — U.S. Code and appendices · legal_authorities

30 U.S.C. § 181 — Lands subject to disposition; persons entitled to benefits; reciprocal privileges; helium rights reserved

Deposits of coal, phosphate, sodium, potassium, oil, oil shale, gilsonite (including all vein-type solid hydrocarbons), or gas, and lands containing such deposits owned by the United States, including those in national forests, but excluding lands acquired under the Appalachian Forest Act, approved March 1, 1911 (36 Stat. 961), and those in incorporated cities, towns, and villages and in national parks and monuments, those acquired under other Acts subsequent to February 25, 1920, and lands within the naval petroleum and oil-shale reserves, except as hereinafter provided, shall be subject to disposition in the form and manner provided by this chapter to citizens of the United States, or to associations of such citizens, or to any corporation organized under the laws of the United States, or of any State or Territory thereof, or in the case of coal, oil, oil shale, or gas, to municipalities. Citizens of another country, the laws, customs, or regulations of which deny similar or like privileges to citizens or corporations of this country, shall not by stock ownership, stock holding, or stock control, own any interest in any lease acquired under the provisions of this chapter.

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Federal law — U.S. Code and appendices · legal_authorities

43 U.S.C. § 1331 — Definitions

In this subchapter: **(a) Outer Continental Shelf.—** The term “outer Continental Shelf” means— (1) all submerged lands lying seaward and outside of the area of lands beneath navigable waters as defined in [section 1301 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title43-section1301&num=0&edition=prelim), and of which the subsoil and seabed appertain to the United States and are subject to its jurisdiction and control or within the exclusive economic zone of the United States and adjacent to any territory of the United States; and (2) does not include any area conveyed by Congress to a territorial government for administration; **(b) Secretary.—** The term “Secretary” means the Secretary of the Interior, except that with respect to functions under this subchapter transferred to, or vested in, the Secretary of Energy or the Federal Energy Regulatory Commission by or pursuant to the Department of Energy Organization Act ([42 U.S.C. 7101](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section7101&num=0&edition=prelim) et seq.), the term “Secretary” means the Secretary of Energy, or the Federal Energy Regulatory Commission, as the case may be. **(c) Lease.—** The term “lease” means any form of authorization which is issued under [section 1337 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title43-section1337&num=0&edition=prelim) or maintained under [section 1335 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title43-section1335&num=0&edition=prelim) and which authorizes exploration for, and development and production of, minerals. **(d) Person.—** The term “person” includes, in addition to a natural person, an association, a State, a political subdivision o

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Federal law — U.S. Code and appendices · legal_authorities

43 U.S.C. § 1338 — Disposition of revenues

All rentals, royalties, and other sums paid to the Secretary or the Secretary of the Navy under any lease on the outer Continental Shelf for the period from June 5, 1950, to date, and thereafter shall be deposited in the Treasury of the United States and credited to miscellaneous receipts.

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Federal law — U.S. Code and appendices · legal_authorities

15 U.S.C. § 751 — Untitled legal text

Page 1230 TITLE 15—COMMERCE AND TRADE §§ 721, 722 amendment of subsec. (a) by inserting ‘‘or with an enti- ty the Secretary determines is qualified to construct and operate a liquefied natural gas project to transport liquefied natural gas from Southcentral Alaska to West Coast States,’’ before ‘‘to issue’’, was executed to par. (1) of subsec. (a) to reflect the probable intent of Con- gress. Subsec. (b)(1). Pub.L. 108–199, § 146(2), as amended by Pub. L. 108–447, § 114(1)–(3), inserted before period at end ‘‘, or after the Secretary certifies there exists a quali- fied entity to construct and operate a liquefied natural gas project to transport liquefied natural gas from Southcentral Alaska to West Coast States. In no case shall loan guarantees be issued for more than one qualified project’’. Subsec. (b)(4). Pub. L. 108–447, § 114(b), added par. (4). Subsec. (c)(2). Pub. L. 108–199, § 146(3), as amended by Pub. L. 108–447, § 114(1), (2), (4), which directed the amendment of subsec. (a)(2) by inserting ‘‘, except that the total amount of principal that may be guaranteed for a qualified liquefied natural gas project may not ex- ceed a principal amount in which the cost of loan guar- antees, as defined by section 661a(5) of title 2, exceeds $2,000,000,000’’ before period at end, was executed by making the amendment to subsec. (c)(2), to reflect the probable intent of Congress. Subsec. (g)(4). Pub.L. 108–199, § 146(4), as amended by Pub. L. 108–447, § 114(1), (2), (5), inserted ‘‘or system’’ after ‘‘gas transportation project’’ and ‘‘liquification plants and liquefied natural gas tankers for transpor- tation of liquefied natural gas from Southcentral Alas- ka to the West Coast’’ after ‘‘including gas treatment plants’’. Statutory Notes and Related

Source: Supplied 2024 U.S. Code historical extraction · 15 U.S.C. § 751

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Federal law — U.S. Code and appendices · legal_authorities

30 U.S.C. § 1722 — Injunction and specific enforcement au-

Page 371 TITLE 30—MINERAL LANDS AND MINING § 1722 1 So in original. Probably should be ‘‘principal’’. refund request is necessary to correct an under- payment or overpayment of an obligation, the lessee or its designee shall make such adjust- ment or request a refund within a reasonable pe- riod of time and only during the adjustment pe- riod. The filing of a royalty report which re- flects the underpayment or overpayment of an obligation shall constitute prior written notice to the Secretary or the applicable delegated State of an adjustment. (2)(A) For any adjustment, the lessee or its designee shall calculate and report the interest due attributable to such adjustment at the same time the lessee or its designee adjusts the prin- ciple 1 amount of the subject obligation, except as provided by subparagraph (B). (B) In the case of a lessee or its designee who determines that subparagraph (A) would impose a hardship, the Secretary or such delegated State shall calculate the interest due and notify the lessee or its designee within a reasonable time of the amount of interest due, unless such lessee or its designee elects to calculate and re- port interest in accordance with subparagraph (A). (3) An adjustment or a request for a refund for an obligation may be made after the adjustment period only upon written notice to and approval by the Secretary or the applicable delegated State, as appropriate, during an audit of the pe- riod which includes the production month for which the adjustment is being made. If an over- payment is identified during an audit, then the Secretary or the applicable delegated State, as appropriate, shall allow a credit or refund in the amount of the overpayment. (4) For purposes of this section, the adjust- ment period

Source: Supplied 2024 U.S. Code historical extraction · 30 U.S.C. § 1722

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