30 U.S.C. § 1726 — Alternatives for marginal properties

Page 375 TITLE 30—MINERAL LANDS AND MINING § 1726 firm those issues for which the agency ren- dered a decision prior to the end of such pe- riod, as to any monetary obligation the prin- cipal amount of which is $10,000 or more, and the appellant shall have a right to judicial review of such deemed final decision in ac- cordance with title 5. (i) Collections of disputed amounts due To expedite collections relating to disputed obligations due within the seven-year period be- ginning on the date the obligation became due, the parties shall hold not less than one settle- ment consultation and the Secretary and the State concerned may take such action as is ap- propriate to compromise and settle a disputed obligation, including waiving or reducing inter- est and allowing offsetting of obligations among leases. (j) Enforcement of claim for judicial review In the event a demand subject to this section is properly and timely commenced, the obliga- tion which is the subject of the demand may be enforced beyond the seven-year limitations pe- riod without being barred by this statute of lim- itations. In the event a demand subject to this section is properly and timely commenced, a ju- dicial proceeding challenging the final agency action with respect to such demand shall be deemed timely so long as such judicial pro- ceeding is commenced within 180 days from re- ceipt of notice by the lessee or its designee of the final agency action. (k) Implementation of final decision In the event a judicial proceeding or demand subject to this section is timely commenced and thereafter the limitation period in this section lapses during the pendency of such proceeding, any party to such proceeding shall not be barred from taking such action as is required or nec- essary to implement a final unappealable judi- cial or administrative decision, including any action required or necessary to implement such decision by the recovery or recoupment of an underpayment or overpayment by means of re- fund or credit. (l) Stay of payment obligation pending review Any person ordered by the Secretary or a dele- gated State to pay any obligation (other than an assessment) shall be entitled to a stay of such payment without bond or other surety instru- ment pending an administrative or judicial pro- ceeding if the person periodically demonstrates to the satisfaction of the Secretary that such person is financially solvent or otherwise able to pay the obligation. In the event the person is not able to so demonstrate, the Secretary may require a bond or other surety instrument satis- factory to cover the obligation. Any person or- dered by the Secretary or a delegated State to pay an assessment shall be entitled to a stay without bond or other surety instrument. (Pub. L. 97–451, title I, § 115, as added Pub. L. 104–185, § 4(a), Aug. 13, 1996, 110 Stat. 1704; amend- ed Pub. L. 104–200, § 1(2), Sept. 22, 1996, 110 Stat. 2421.) Editorial Notes CODIFICATION Pub. L. 104–185, § 4(a), which directed the addition of this section after section 114 of the Federal Oil and Gas Royalty Management Act of 1982, Pub. L. 97–451, was executed by adding this section after section 113 to re- flect the probable intent of Congress because Pub. L. 97–451 did not contain a section 114. AMENDMENTS 1996—Subsec. (l). Pub. L. 104–200 inserted ‘‘so’’ after ‘‘the person is not able to’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section applicable with respect to production of oil and gas after the first day of the month following Aug. 13, 1996, except as provided by subsec. (h) of this sec- tion, see section 11 of Pub. L. 104–185, set out as an Ef- fective Date of 1996 Amendment note under section 1701 of this title. APPLICABILITY Section not applicable to any privately owned min- erals or with respect to Indian lands, see sections 9 and 10 of Pub. L. 104–185, set out as an Applicability of 1996 Amendment note under section 1701 of this title. § 1725. Assessments Beginning eighteen months after August 13, 1996, to encourage proper royalty payment the Secretary or the delegated State shall impose assessments on a person who chronically sub- mits erroneous reports under this chapter. As- sessments under this chapter may only be issued as provided for in this section. (Pub. L. 97–451, title I, § 116, as added Pub. L. 104–185, § 6(f)(1), Aug. 13, 1996, 110 Stat. 1714.) Editorial Notes CODIFICATION Pub. L. 104–185, § 4(a), which directed the addition of this section at the end of the Federal Oil and Gas Roy- alty Management Act of 1982, was executed by adding this section at the end of title I of that Act to reflect the probable intent of Congress. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section applicable with respect to production of oil and gas after the first day of the month following Aug. 13, 1996, see section 11 of Pub. L. 104–185, set out as an Effective Date of 1996 Amendment note under section 1701 of this title. APPLICABILITY Section not applicable to any privately owned min- erals or with respect to Indian lands, see sections 9 and 10 of Pub. L. 104–185, set out as an Applicability of 1996 Amendment note under section 1701 of this title. § 1726. Alternatives for marginal properties (a) Determination of best interests of State con- cerned and United States The Secretary and the State concerned, acting in the best interests of the United States and the State concerned to promote production, re- duce administrative costs, and increase net re- ceipts to the United States and the States, shall Page 376 TITLE 30—MINERAL LANDS AND MINING § 1727 jointly determine, on a case by case basis, the amount of what marginal production from a lease or leases or well or wells, or parts thereof, shall be subject to a prepayment under sub- section (b) or regulatory relief under subsection (c). If the State concerned does not consent, such prepayments or regulatory relief shall not be made available under this section for such marginal production: Provided, That if royalty payments from a lease or leases, or well or wells are not shared with any State, such determina- tion shall be made solely by the Secretary. (b) Prepayment of royalty (1) In general Notwithstanding the provisions of any lease to the contrary, for any lease or leases or well or wells identified by the Secretary and the State concerned pursuant to subsection (a), the Secretary is authorized to accept a pre- payment for royalties in lieu of monthly roy- alty payments under the lease for the remain- der of the lease term if the affected lessee so agrees. Any prepayment agreed to by the Sec- retary, State concerned and lessee which is less than an average $500 per month in total royalties shall be effectuated under this sec- tion not earlier than two years after August 13, 1996, and, any prepayment which is greater than an average $500 per month in total royal- ties shall be effectuated under this section not earlier than three years after August 13, 1996. The Secretary and the State concerned may condition their acceptance of the prepayment authorized under this section on the lessee’s agreeing to such terms and conditions as the Secretary and the State concerned deem ap- propriate and consistent with the purposes of this chapter. Such terms may— (A) provide for prepayment that does not result in a loss of revenue to the United States in present value terms; (B) include provisions for receiving addi- tional prepayments or royalties for develop- ments in the lease or leases or well or wells that deviate significantly from the assump- tions and facts on which the valuation is de- termined; and (C) require the lessee or its designee to provide such periodic production reports as may be necessary to allow the Secretary and the State concerned to monitor production for the purposes of subparagraph (B). (2) State share A prepayment under this section shall be shared by the Secretary with any State or other recipient to the same extent as any roy- alty payment for such lease. (3) Satisfaction of obligation Except as may be provided in the terms and conditions established by the Secretary under subsection (b), a lessee or its designee who makes a prepayment under this section shall have satisfied in full the lessee’s obligation to pay royalty on the production stream sold from the lease or leases or well or wells. (c) Alternative accounting and auditing require- ments Within one year after August 13, 1996, the Sec- retary or the delegated State shall provide ac- counting, reporting, and auditing relief that will encourage lessees to continue to produce and de- velop properties subject to subsection (a): Pro- vided, That such relief will only be available to lessees in a State that concurs, which concur- rence is not required if royalty payments from the lease or leases or well or wells are not shared with any State. Prior to granting such relief, the Secretary and, if appropriate, the State concerned shall agree that the type of marginal wells and relief provided under this paragraph is in the best interest of the United States and, if appropriate, the State concerned. (Pub. L. 97–451, title I, § 117, as added Pub. L. 104–185, § 7(a), Aug. 13, 1996, 110 Stat. 1715; amend- ed Pub. L. 104–200, § 1(7), Sept. 22, 1996, 110 Stat. 2421.) Editorial Notes CODIFICATION Pub. L. 104–185, § 4(a), which directed the addition of this section at the end of the Federal Oil and Gas Roy- alty Management Act of 1982, was executed by adding this section at the end of title I of that Act to reflect the probable intent of Congress. AMENDMENTS 1996—Subsec. (b)(1)(C). Pub. L. 104–200, § 1(7), sub- stituted ‘‘its designee’’ for ‘‘it designee’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section applicable with respect to production of oil and gas after the first day of the month following Aug. 13, 1996, except as provided by this section, see section 11 of Pub. L. 104–185, set out as an Effective Date of 1996 Amendment note under section 1701 of this title. APPLICABILITY Section not applicable to any privately owned min- erals or with respect to Indian lands, see sections 9 and 10 of Pub. L. 104–185, set out as an Applicability of 1996 Amendment note under section 1701 of this title. § 1727. Royalties on all extracted methane (a) In general For all leases issued after August 16, 2022, ex- cept as provided in subsection (b), royalties paid for gas produced from Federal land and on the outer Continental Shelf shall be assessed on all gas produced, including all gas that is consumed or lost by venting, flaring, or negligent releases through any equipment during upstream oper- ations. (b) Exception Subsection (a) shall not apply with respect to— (1) gas vented or flared for not longer than 48 hours in an emergency situation that poses a danger to human health, safety, or the envi- ronment; (2) gas used or consumed within the area of the lease, unit, or communitized area for the benefit of the lease, unit, or communitized area; or (3) gas that is unavoidably lost. (Pub. L. 117–169, title V, § 50263, Aug. 16, 2022, 136 Stat. 2058.)