I
105TH CONGRESS
2D SESSION
H. R. 3334
To provide certainty for, reduce administrative and compliance burdens associ-
ated with, and streamline and improve the collection of royalties from
Federal and outer continental shelf oil and gas leases, and for other
purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 4, 1998
Mr. THORNBERRY (for himself, Mrs. CUBIN, and Mr. BRADY) introduced the
following bill; which was referred to the Committee on Resources
A BILL
To provide certainty for, reduce administrative and compli-
ance burdens associated with, and streamline and im-
prove the collection of royalties from Federal and outer
continental shelf oil and gas leases, and for other pur-
poses.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Royalty Enhancement Act of 1998’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Rights, obligations, and responsibilities.
Sec. 4. Costs responsibility.
Sec. 5. Transporter charges.
Sec. 6. Imbalances.
Sec. 7. Royalty-in-kind for trucked, tankered, or barged oil or gas.
Sec. 8. Limitations on application.
Sec. 9. Reporting.
Sec. 10. Audit.
Sec. 11. Lease terms not affected.
Sec. 12. Eligible and small refiners.
Sec. 13. Applicable laws.
Sec. 14. Indian lands.
Sec. 15. Effective date; regulations.
SEC. 2. DEFINITIONS.
In this Act:
(1) AFFILIATE; AFFILIATED.—
(A) The term ‘‘affiliate’’ or ‘‘affiliated’’
means that a person controls, is controlled by,
or is under common control with another per-
son. Affiliation shall be determined on a lease-
by-lease and asset-by-asset basis.
(B) For purposes of this Act, based on the
instruments of ownership—
(i) Ownership in excess of 50 percent
constitutes control.
(ii) Ownership of at least 10 percent
and not more than 50 percent creates a re-
buttable presumption of control if each
owner has a separate and independent
right to control or utilize the capacity of
the asset.
(iii) Ownership of less than 10 per-
cent creates a presumption of noncontrol
which the Secretary may rebut if he dem-
onstrates actual or legal control, including
the existence of interlocking directorates.
(2) 
COMPENSATORY
ROYALTY.—The 
term
‘‘compensatory royalty’’ means a payment made to
a royalty owner as compensation for loss of income
that it may suffer due to a lease being drained of
oil and gas by wells drilled on lands adjacent to the
lands subject to the lease.
(3) COMPRESSION.—The term ‘‘compression’’
means the process of raising the pressure of gas.
(4) CONDENSATE.—The term ‘‘condensate’’
means liquid hydrocarbons (normally exceeding 40
degrees of API gravity) recovered at the surface
without resorting to processing. Condensate is that
stabilized mixture of liquid hydrocarbons at atmos-
pheric pressure that results from condensation of pe-
troleum hydrocarbons existing initially in a gaseous
phase in an underground reservoir.
(5) DELIVERY
POINT.—The term ‘‘delivery
point’’ means—
(A) for a lease premise for which a produc-
tion measurement meter is approved in accord-
ance with applicable laws before the date of en-
actment of this Act—
(i) subject to clause (ii), the existing
approved meter location, or
(ii) subject to clause (ii), a delivery
point requested by a lessee and approved
in accordance with subparagraph (B); or
(B) for a lease premise for which no pro-
duction measurement meter is approved before
the date of the enactment of this Act, that
point on or near the lease premises, approved
by the appropriate agency in accordance with
applicable laws and regulations, where lease
production can be measured and reported in a
manner that is practical, economical, and verifi-
able, except that such point may be at a loca-
tion off the lease premises where, if necessary,
production can be allocated back to the lease
premises.
(6) ELIGIBLE SMALL REFINER.—The term ‘‘eli-
gible small refiner’’ means a refiner that—
(A) has applied to the Secretary for certifi-
cation as an eligible small refiner;
(B) has a total crude oil and condensate
refining capacity (including the refining capac-
ity of any person who controls, is controlled by,
or is under common control with such refiner)
not exceeding 100,000 barrels per day;
(C) is a corporation, company, partnership,
trust or estate organized under the laws of the
United States or of any State, territory, or mu-
nicipality thereof, or is a person who is a
United States citizen; and
(D) has continuously operated a refinery in
the United States for no less than 6 months im-
mediately preceding the date of application for
certification as an eligible small refiner.
(7) ELIGIBLE SMALL REFINER PORTION.—The
term ‘‘eligible small refiner portion’’ means the por-
tion of all royalty oil volumes required to be offered
for sale to eligible small refiners. The eligible small
refiner portion shall be 40 percent of all royalty oil
volumes, unless the Secretary determines that a
greater share is in the public interest.
(8) FERC.—The term ‘‘FERC’’ means the
Federal Energy Regulatory Commission.
(9) FIELD.—The term ‘‘field’’ means a geo-
graphic region situated over one or more subsurface
oil or gas reservoirs that encompasses at least the
outermost boundaries of all oil and gas accumula-
tions known to be within those reservoirs vertically
projected to the land surface.
(10) FORCE
MAJEURE.—The term ‘‘force
majeure’’ means foreseen and unforeseen acts of
God, strikes, lockouts, or other industrial disturb-
ances, acts of the public enemy, wars, blockades, in-
surrections, riots, epidemics, landslides, lightning,
hurricanes or storms, hurricane or storm warnings
which, in the judgment of the party affected by such
event, require the precautionary shutdown or evacu-
ation of Production facilities, earthquakes, fires,
floods, washouts, disturbances, explosions, accidental
breakage to lines of pipe, machine breakage, freezing
of wells or lines of pipe, partial or entire failure of
wells, and any other cause of a similar nature be-
yond the reasonable control of the party affected
which renders that party unable to carry out its obli-
gations under this Act.
(11) GAS.—The term ‘‘gas’’ means any fluid,
whether combustible, noncombustible, hydrocarbon,
or nonhydrocarbon, that—
(A) is extracted from a reservoir;
(B) has neither independent shape nor vol-
ume;
(C) tends to expand indefinitely; and
(D) exists in a gaseous or rarefied state
under standard temperature and pressure con-
ditions.
(12) 
GATHERING.—The 
term 
‘‘gathering’’
means the movement of lease production to a central
accumulation 
point 
on 
the 
lease, 
unit, 
or
communitized area, or to a central accumulation
point off the lease, unit, or communitized area ap-
proved by the Secretary.
(13) GISB.—The term ‘‘GISB’’ means the Gas
Industry Standards Board, as incorporated in the
State of Delaware on September 26, 1994.
(14) LEASE OPERATOR; OPERATOR.—Each of
the terms ‘‘lease operator’’ and ‘‘operator’’ means
any person, including a lessee, who has control of or
who manages operations on lease premises on Fed-
eral onshore lands or who has been designated as an
operator on the outer continental shelf by applicable
law.
(15) LEASE PREMISES.—The term ‘‘lease prem-
ises’’ means all land and interests in land owned by
the United States that are subject to an oil and gas
lease issued under the mineral leasing laws, includ-
ing mineral resources of mineral estates reserved to
the United States in the conveyance of a surface or
non-mineral estate.
(16) LEASE
PRODUCTION.—The term ‘‘lease
production’’ means any produced oil or gas that is
attributable to, originating from, or allocated to a
Federal onshore or an outer continental shelf lease
premises.
(17) LESSEE.—The term ‘‘lessee’’ means any
person to whom the United States issues an oil and
gas lease, or any person to whom operating rights
under an oil and gas lease have been assigned.
(18) MERCHANTABLE
CONDITION; 
MARKET-
ABLE CONDITION.—Each of the terms ‘‘merchant-
able condition’’ and ‘‘marketable condition’’ means
the condition of oil or gas that is sufficiently free of
impurities to meet the requirements of or is accepted
by the transporter of production from that lease
premises, royalty oil, or royalty gas. Whether or not
lease production is in merchantable condition shall
not affect the responsibility for the bearing of costs
of gathering or transportation, as provided by this
Act.
(19) MINIMUM ROYALTY.—The term ‘‘minimum
royalty’’ means that minimum amount of annual
royalty that a lessee must pay, as specified in the
lease or in applicable leasing regulations.
(20) NET
PROFIT
SHARE
LEASE
ROYALTY
PRIOR
TO
PAYOUT.—The term ‘‘net profit share
lease royalty prior to payout’’ means the specified
share of the net profit from production of oil and
gas as provided in the lease.
(21) OIL.—The term ‘‘oil’’—
(A) means a mixture of hydrocarbons that
exists in the liquid phase in natural under-
ground reservoirs and remains liquid at atmos-
pheric pressure after passing through surface
separating facilities; and
(B) includes condensate.
(22) OIL AND GAS LEASE; LEASE.—Each of the
terms ‘‘oil and gas lease’’ and ‘‘lease’’ means any
contract, profit-share arrangement, or other agree-
ment issued or maintained in accordance with the
Outer Continental Shelf Lands Act (43 U.S.C. 1301
et seq.) or the Mineral Lands Leasing Act (30
U.S.C. 181 et seq.) and issued or approved by the
United States that authorizes exploration for, ex-
traction of, or removal of oil or gas.
(23) OPERATING RIGHTS.—The term ‘‘operat-
ing rights’’ means the interest created by a lease or
derived therefrom authorizing the holder of that in-
terest to enter upon the lease premises to conduct
drilling and related operations, including production
of oil or gas from such lands in accordance with the
terms of the lease. A record title owner is the owner
of operating rights under a lease except to the extent
that the operating rights or a portion thereof have
been transferred from record title.
(24) PERSON.—The term ‘‘person’’ means an
individual natural person, proprietorship, firm (pri-
vate or public), corporation, business, limited liabil-
ity company, unincorporated association, association,
State, partnership, trust, consortium, joint venture,
joint stock company.
(25) PROCESSING; 
PROCESS.—Each of the
terms ‘‘processing’’ and ‘‘process’’—
(A) means any process designed to remove
elements or compounds (hydrocarbon and non-
hydrocarbon) from oil or gas;
(B) includes absorption, adsorption, or re-
frigeration; and
(C) does not include lease or field proc-
esses, such as natural pressure reduction, me-
chanical separation, heating, cooling, dehydra-
tion, and compression on the upstream side of
the delivery point.
(26) PRODUCING; PRODUCED; PRODUCTION.—
The term ‘‘producing’’, ‘‘produced’’, or ‘‘production’’
means the act of bringing hydrocarbons to the sur-
face.
(27) QUALIFIED
MARKETING
AGENT.—The
term ‘‘qualified marketing agent’’ means a person
with whom the Secretary has contracted to receive,
handle, transport, deliver, market, process, dispose
of, broker, or sell, or any combination thereof, roy-
alty oil or royalty gas taken in kind by the United
States from, or that is attributable to, an oil and gas
lease.
(28) REGULATED
PIPELINE; REGULATED
FA-
CILITY.—Each of the terms ‘‘regulated pipeline’’ and
‘‘regulated facility’’—
(A) means a pipeline, truck, tanker, barge,
or other modality of carriage for oil or gas, the
operation of which is subject to regulation by a
State governmental authority or Federal gov-
ernmental authority (or both) with respect to
the rates that may be charged shippers for
transportation service; and
(B) includes, but is not limited to—
(i) a pipeline performing the inter-
state movement of gas subject to regula-
tion by the Federal Energy Regulatory
Commission under the Natural Gas Act
(15 U.S.C. 717 et seq.);
(ii) a pipeline whose movements of oil
are subject to regulation by the Federal
Energy Regulatory Commission under the
Interstate Commerce Act (49 U.S.C. 1 et
seq.); and
(iii) any pipeline, truck, tanker, barge
or other modality of carriage for Oil or
Gas whose rates for carriage are regulated
by a governmental authority under State
law.
(29) ROYALTY GAS.—The term ‘‘royalty gas’’
means that fraction or percentage of gas produced
from or attributable to lease premises, that the
United States as lessor is entitled to take in kind
under the terms of an oil and gas lease.
(30) ROYALTY
OIL.—The term ‘‘royalty oil’’
means that fraction or percentage of oil produced
from or attributable to lease premises, that the
United States as lessor is entitled to take in kind
under the terms of an oil and gas lease.
(31) ROYALTY
SHARE.—The term ‘‘royalty
share’’ means that fraction or percentage of royalty
oil or royalty gas (or both) produced from or attrib-
utable to lease premises, that the United States as
lessor is entitled to take in kind under the terms of
an oil and gas lease.
(32) 
SECRETARY.—The 
term 
‘‘Secretary’’
means the Secretary of the Interior.
(33) TENDER.—The term ‘‘tender’’ means the
act by which a lessee makes royalty oil or royalty
gas produced from lease premises available to the
United States for receipt.
(34) TRANSPORTATION; TRANSPORT.—Each of
the terms ‘‘transportation’’ and ‘‘transporting’’
means any movement (including associated or relat-
ed activities to facilitate movement such as compres-
sion and dehydration) of royalty oil or royalty gas.
Such terms include any movement of royalty oil or
royalty gas downstream of the delivery point, includ-
ing movement described in this paragraph. Such
terms may include—
(A) the movement of unseparated, bulk
production away from the lease premises to a
point distant from the lease premises; and
(B) the movement of separated, identifi-
able production downstream of a well on the
lease premises to any point that is not on, and
is not adjacent to, the lease premises, unit, or
communitized area, as approved by the Sec-
retary.
(35) TRANSPORTER.—The term ‘‘transporter’’
means a person or entity who is transporting or pro-
viding transportation.
(36) UNITED
STATES.—The term ‘‘United
States’’ means the United States of America and
any agency, department, or instrumentality thereof.
SEC. 3. RIGHTS, OBLIGATIONS, AND RESPONSIBILITIES.
(a) RIGHTS, OBLIGATIONS, AND RESPONSIBILITIES
OF THE UNITED STATES.—
(1) GENERAL RULE.—Except as otherwise pro-
vided in section 8 of this Act, all royalty oil and roy-
alty gas accruing to the United States under any oil
and gas lease shall be taken in kind by the United
States at the applicable delivery point for each lease
premises.
(2) OWNERSHIP
AND
RECEIPT
BY
UNITED
STATES.—Ownership of all right, title and interest
in royalty oil and royalty gas produced from oil and
gas lease premises governed by this Act shall remain
in the United States until sale or other disposition
by the United States. Nothing in this Act shall limit
the right of the United States to have royalty oil or
royalty gas stored after its production in such tanks
or other surface facilities as the lessee may be ex-
pressly obligated to furnish under any applicable
lease term. The United States shall not delay or
defer the receipt of lease production, delay receipt of
new production, or physically segregate the royalty
share prior to receipt by the United States. The
United States shall have custody, possession, and re-
sponsibility attendant thereto for royalty oil and roy-
alty gas at and beyond the delivery point.
(3) SELECTION
OF
AND
CONTRACTS
WITH
A
QUALIFIED MARKETING AGENT.—(A) Except as pro-
vided in subsection (b), the Secretary shall, for each
lease premises, contract with a person to act as a
qualified marketing agent to market and dispose of
royalty oil and royalty gas. Each qualified marketing
agent shall be authorized to advise and consult with
the Secretary on the sale and disposition of the roy-
alty oil and royalty gas and to directly sell and
broker the royalty oil and royalty gas.
(B) To be eligible for a contract under this
paragraph to act as a qualified marketing agent, a
person must have the expertise necessary to receive,
handle, transport, deliver, market, process, dispose,
broker, or sell royalty oil and royalty gas in accord-
ance with this Act. Under rules promulgated by the
Secretary, the Secretary may designate any person
as ineligible to act as a qualified marketing agent
under this paragraph by reason of such person’s re-
lationship to persons engaged in the handling, gath-
ering, transporting, marketing, processing, or pur-
chasing of oil or gas.
(C) The Secretary shall contract with not more
than one qualified marketing agent for each lease
premises for royalty oil and not more than one quali-
fied marketing agent for each lease premises for roy-
alty gas.
(D) The Secretary shall solicit competitive bids
for contracts for qualified marketing agents. The
Secretary shall promulgate final rules within 12
months after the date of the enactment of this Act
regarding the competitive manner in which qualified
marketing agents shall be selected.
(E) The compensation of each qualified market-
ing agent—
(i) shall be determined and made by the
Secretary without further appropriation based
on the services to be performed by the qualified
marketing agent; and
(ii) shall be established in the contract be-
tween the qualified marketing agent and the
United States.
(F) Except as otherwise provided in subsection
(b), the Secretary shall be solely responsible for ob-
taining and contracting with qualified marketing
agents and shall be authorized to pay qualified mar-
keting agents from proceeds derived from the sale of
royalty oil and royalty gas without further appro-
priation.
(G) Each contract shall—
(i) require the qualified marketing agent to
dispose of and sell royalty oil and royalty gas
in an open, nondiscriminatory, and competitive
manner; and
(ii) prohibit the qualified marketing agent
from precluding any person from competing for
the handling, gathering, transporting, market-
ing, processing, or purchasing of royalty oil and
royalty gas solely by reason of the person being
a lessee or person affiliated with a lessee, quali-
fied marketing agent, gatherer, royalty payor,
transporter, processor or purchaser.
(4) TRANSPORTATION
COSTS.—Each contract
under paragraph (3) shall require the Secretary to
bear the costs of any transportation of royalty oil
and royalty gas without further appropriation as
specified by this Act incurred prior to the sale or
other disposition of the royalty oil and royalty gas
by the qualified marketing agent.
(5) PROCESSING.—The qualified marketing
agent under paragraph (3) shall—
(A) have the right to process royalty oil
and royalty gas, after receipt at the delivery
point, for the recovery and sale of valuable
products; and
(B) require the Secretary to bear any ap-
plicable costs of exercising such right without
further appropriation.
(6) COMPLIANCE WITH STANDARDS.—In taking
in kind, processing, and shipping royalty oil and roy-
alty gas, the United States and its qualified market-
ing agent shall comply with all procedures which are
customary or required of processors and shippers,
including but not limited to the applicable FERC-
approved GISB standards, nominations of volumes,
scheduling of deliveries, and the movement of oil or
gas in or through the facilities of the initial trans-
porter and any subsequent transporter. The Sec-
retary and his qualified marketing agent shall as-
sume responsibility and any liability associated with
such duties.
(7) FAIR
MARKET
VALUE
REQUIREMENTS.—
The net proceeds received by the United States from
the sale of royalty oil and royalty gas are deemed to
satisfy in full the Secretary’s responsibility to receive
fair market value as defined by any applicable stat-
ute or lease provision.
(b) RIGHTS, OBLIGATIONS AND RESPONSIBILITIES
OF STATES.—
(1) SELECTION
OF
QUALIFIED
MARKETING
AGENTS.—At its option and for the mutual benefit
of the United States and the State, a State entitled
to revenues under the provisions of section 35 of the
Mineral Leasing Act (30 U.S.C. 191) or section 8(g)
of the Outer Continental Shelf Lands Act (43
U.S.C. 1353) may elect to act on behalf of the Sec-
retary in selecting qualified marketing agents to sell
or dispose of royalty oil or royalty gas produced
from lease premises within the State or from section
8(g) lease premises adjacent to the State, whichever
is applicable. If it makes such an election, the State
shall enjoy all the rights and assume all obligations
that the United States would otherwise have under
this Act. If a State selects a qualified marketing
agent that has contracted to market production from
State leases, the contract with the qualified market-
ing agent shall be on terms no less favorable to the
interests of the United States than the contract with
the State. A State may make such an election from
time to time in accordance with paragraph (4).
(2) COMPLIANCE
WITH
REQUIREMENTS.—A
State that elects to act under this section shall—
(A) exercise such rights in accordance with
the requirements established by this Act gov-
erning royalty in kind; and
(B) be subject to the rights, responsibil-
ities, and obligations of the United States under
this Act, as may be applicable, including those
set forth in subsection (a).
(3) NOTICE; EFFECTIVE
PERIOD
OF
ELEC-
TION.—A State may elect to act under this section
after giving the Secretary 90 days notice. The elec-
tion is effective 90 days after the date the Secretary
receives notice of the election. The election shall re-
main in effect for a period of not less than 3 years.
After the initial term, a State must give sufficient
notice to the United States, but in no event less
than 180 days, to terminate an election period.
(4) COVERED OIL AND GAS.—A State’s election
under this subsection shall apply to all royalty oil
and royalty gas within the State and section 8(g)
lands adjacent to the State, as applicable.
(5) EXISTING CONTRACTS.—If a contract be-
tween a qualified marketing agent and the United
States exists that has not expired, the State’s elec-
tion shall be subject to that existing contract.
(6) LIMITATION ON DEDUCTIONS FROM STATE
SHARE OF RECEIPTS.—If a State makes an election
under this section, payment of the State’s share of
receipts for the sale of royalty oil and royalty gas
shall be made without deductions for costs applicable
to the services provided by the State under the net
receipts sharing provisions of the Mineral Leasing
Act.
(c) RIGHTS, OBLIGATIONS, AND RESPONSIBILITIES
OF THE LESSEE.—
(1) EFFECT OF TENDER BY LESSEE.—A lessee
shall tender royalty oil and royalty gas to the United
States at the delivery point for each lease premises,
except as provided in section 6. Upon such tender
for any lease premises, all royalty obligations of the
lessee shall be considered fulfilled and fully satisfied
for the amount tendered, including any express or
implied obligation or duty to market, except as pro-
vided in section 6. If the United States fails to take
in kind the entire volume tendered, the lessee’s obli-
gation or duty shall nonetheless be fully satisfied.
(2) MEASUREMENT OF LEASE PRODUCTION.—A
lessee shall measure or cause to be measured lease
production, including royalty oil and royalty gas, at
the delivery point in accordance with any applicable
laws and lease terms.
(3) TERMINATION
OF
RESPONSIBILITIES
OF
LESSEE.—A lessee shall have no responsibility or ob-
ligation for royalty oil or royalty gas after tendering
it in accordance with paragraph (1) and shall not be
liable for any costs or liability downstream of the de-
livery point associated with the royalty oil or royalty
gas.
(4) REPORTING
AND
RECORDKEEPING.—With
respect to royalty oil and royalty gas taken in kind
by the United States, a lessee shall not be subject
to the reporting and recordkeeping requirements of
the Federal Oil and Gas Royalty Management Act
(30 U.S.C. 1701 et seq.) or other applicable laws for
any lease, other than records or reports necessary to
verify the quantity of royalty oil or royalty gas pro-
duced from a lease premises.
(d) RIGHTS, OBLIGATIONS, AND RESPONSIBILITIES
OF QUALIFIED MARKETING AGENTS.—
(1) IN
GENERAL.—In accordance with the
terms of its contract with the United States, a quali-
fied marketing agent shall—
(A) advise and consult with the United
States regarding the terms and conditions of
sales to purchasers;
(B) arrange for the receipt, handling,
transporting, delivery, marketing, processing,
disposition, brokering and sale of royalty oil
and royalty gas; and
(C) be authorized to enter into sales con-
tracts on behalf of the United States.
(2) MOVEMENT OF ROYALTY OIL AND ROYALTY
GAS.—A qualified marketing agent shall be author-
ized to make any arrangements necessary to move
royalty oil and royalty gas downstream of the appli-
cable delivery point, and shall be authorized to enter
into transportation and processing contracts on be-
half of the United States.
(3) REQUIREMENT TO TAKE.—A qualified mar-
keting agent shall be required to take 100 percent
of the royalty share tendered by the lessee from each
lease premises on a daily basis.
(4) ENHANCEMENT OF REVENUES TO UNITED
STATES.—In handling, marketing, and disposing of
royalty oil and royalty gas, a qualified marketing
agent shall utilize its experience and expertise to
seek opportunities to enhance revenues to the United
States, including opportunities for the sale of royalty
oil and royalty gas at or away from the lease prem-
ises, depending on the facts and circumstances rel-
evant to receiving, handling, transporting, delivering,
marketing, processing, disposition, brokering, and
sale of the royalty oil or royalty gas.
(5) AFFILIATE TRANSACTIONS.—Qualified mar-
keting agent sales to itself or an affiliate shall be
made in accordance with the following standards:
(A) When selling royalty oil and royalty
gas to an affiliate, a qualified marketing agent
shall not give preference to an affiliate, includ-
ing but not limited to, favoring the affiliate
with lower sales prices, rights of first refusal or
more favorable terms than those offered to non-
affiliated purchasers of royalty oil and royalty
gas.
(B) The managing employees of the quali-
fied marketing agent shall periodically certify
that it has complied with these provisions. The
civil penalty provisions of section 109(d) of the
Federal Oil and Gas Royalty Management Act
of 1982 (30 U.S.C. 1719(d)) and the criminal
penalty provisions section 110 of such Act (30
U.S.C. 1720) shall apply to any qualified mar-
keting agent who violates subparagraph (A).
SEC. 4. COSTS RESPONSIBILITY.
(a) MERCHANTABLE CONDITION.—The lessee shall
bear the costs of placing royalty oil and royalty gas in
merchantable condition at the delivery point, if not pro-
duced in such condition at the well: Provided, however,
That gathering and transportation costs under this Act
shall be governed solely by section 4(b) and section 5, and
responsibility for such costs shall not be dependent upon
whether the royalty oil or royalty gas is in merchantable
condition at the time of gathering or transportation.
(b) GATHERING AND TRANSPORTATION OF ROYALTY
OIL AND ROYALTY GAS.—
(1) GATHERING.—The lessee shall bear the
costs of gathering royalty oil and royalty gas.
(2) TRANSPORTATION.—The United States
shall bear the costs of transporting royalty oil and
royalty gas to and beyond the delivery point until
disposition or sale by the United States. Transpor-
tation costs shall include associated or related activi-
ties to facilitate movement, such as the costs of com-
pression and dehydration associated with transpor-
tation. The movement of unseparated, bulk produc-
tion away from the lease premises to a point distant
from the lease premises and the movement of sepa-
rated, identifiable production away from a well on
the lease premises to any point not on or adjacent
to the lease premises, unit or communitized area
shall be considered transportation. Transportation
costs shall be governed solely by the definitions and
provisions in this Act relating to transportation and
responsibility for the payment of such costs shall not
be dependent upon whether the royalty oil or royalty
gas is in merchantable condition at the time of
transportation.
(c) LIMITATION ON LESSEE’S RESPONSIBILITY FOR
COSTS.—With respect to all royalty oil and royalty gas
taken in kind by the United States, the lessee shall bear
no costs other than those specifically identified in this sec-
tion. After the royalty share is taken in kind, the United
States shall dispose of and market its royalty oil and roy-
alty gas and the lessee shall have no obligation to dispose
of or market the United States royalty share of produc-
tion.
(d) REIMBURSEMENT
OF COSTS.—In bearing the
cost of transporting royalty oil and royalty gas, the United
States shall reimburse the lessee for transportation costs
without further appropriation in accordance with the pro-
visions of subsection (b) of this section and section 5.
SEC. 5. TRANSPORTER CHARGES.
(a) DETERMINATION.—The lessee or its affiliate shall
determine and calculate, where applicable, the transpor-
tation charges governed by this Act in accordance with
subsections (b) and (c).
(b) REIMBURSEMENT FOR TRANSPORTATION COSTS
PRIOR TO THE DELIVERY POINT.—
(1) TRANSPORT BY REGULATED PIPELINE OR
FACILITY.—Reimbursement to a lessee for costs of
transporting royalty oil and royalty gas produced by
the lessee and subsequently transported through a
regulated pipeline or facility before the delivery point
shall be—
(A) for nonaffiliated transactions, the ac-
tual rate paid under the tariff by the lessee; or
(B) for affiliated transactions, the lower of
the tariff rate or the actual rate paid under the
tariff.
(2) TRANSPORT
BY
SHIPMENT-BY-SHIPMENT
TARIFF JURISDICTION PIPELINE OR FACILITY.—Re-
imbursement to a lessee for transportation costs in-
curred to transport royalty oil through a pipeline or
facility for which jurisdiction for purposes of a tariff
is determined on a shipment-by-shipment basis, shall
be the tariff rate for all shipments by the lessee
through the same pipeline or facility if there is a
shipment through the pipeline or facility to which a
tariff applies.
(3) TRANSPORT
BY
UNREGULATED
PIPELINE
OR FACILITY.—(A) Reimbursement to a lessee for
transportation costs incurred to transport royalty oil
or royalty gas through an unregulated pipeline or fa-
cility before the delivery point shall be—
(i) for nonaffiliated transactions, the ac-
tual costs incurred by the lessee; or
(ii) for affiliated transactions—
(I) if third party oil or gas is being
transported through the pipeline or facility,
the weighted average (by volume) third
party charge; or
(II) if no third party oil or gas is
being transported through the pipeline or
facility, not to exceed the pipeline or facil-
ity owner’s or its affiliate’s costs of operat-
ing the pipeline or facility, including a re-
turn on undepreciated capital investment,
subject to paragraph (4).
(B) For purposes of subparagraph (A)(ii)(II)
the term ‘‘costs of operating’’ means the sum of the
following:
(i) Direct operating, maintenance, and re-
pair costs and expenses.
(ii) Indirect costs (including but not lim-
ited to costs such as information systems, busi-
ness services and technical services) allocated to
the pipeline or facility, in an amount not ex-
ceeding 15 percent of the amount of direct
costs that applies under clause (i).
(iii) An allowance for capital investment
calculated on the basis of either of the follow-
ing, as may be, elected by the lessee:
(I) depreciation, plus a return on the
undepreciated capital, or
(II) a return on depreciable capital in-
vestment.
Return under subclauses (I) and (II) shall be at
a rate equal to twice the rate payable for bonds
with a Standard and Poor’s industrial BBB
bond rating.
(4) ALLOWANCE OF HIGHER TRANSPORTATION
COSTS.—If the amount specified in paragraph
(3)(A)(ii) does not adequately reflect the costs of the
transportation services provided by a lessee or its af-
filiate, the lessee may request a different transpor-
tation reimbursement from the Secretary. For pipe-
lines in more than 200 meters of water, the Sec-
retary may allow a higher rate of return, sufficient
for an investment in the fabricating, installing, oper-
ating, and maintaining such pipelines as compared
to pipelines in waters of less than 200 meters.
(5) 
RESTRICTION
ON
DISCLOSURE.—The
United States and its qualified marketing agent
shall keep confidential and shall not disclose the
transportation charge or any facts or information re-
lated thereto used by a lessee or its affiliate for re-
imbursement under this subsection.
(c) CHARGES FOR TRANSPORTATION COSTS BEYOND
THE DELIVERY POINT.—
(1) IN GENERAL.—Charges by the lessee or its
affiliate for transportation of royalty oil or royalty
gas through an unregulated pipeline or facility be-
yond the delivery point shall be a negotiated rate,
that—
(A) shall not exceed the highest rate
charged for transportation provided to a third
party, if third party oil or gas is being trans-
ported through the pipeline or facility; or
(B) shall be the fair commercial value of
the transportation services provided by the les-
see or its affiliate if no third party oil or gas
is being transported through the pipeline or fa-
cility.
(2) 
DETERMINATION
OF
COMMERCIAL
VALUE.—The standard to be used to determine the
value/commercial value for purposes of paragraph
(1)(B) shall be based upon the transportation serv-
ices provided and not on the ownership of the pipe-
line or facility by the lessee or its affiliate.
(d) ARBITRATION.—
(1) IN
GENERAL.—If negotiations between a
qualified marketing agent and an entity owning the
pipeline or facility do not result in a mutually agree-
able charge for transportation under subsection (c),
then either party may, at any time during the nego-
tiation, require that such matter be submitted to ar-
bitration in accordance with this subsection.
(2) SELECTION OF ARBITRATORS.—Any dispute
regarding a charge for transportation that is not re-
solved by agreement shall be determined by a panel
of 3 arbitrators upon written notice given by either
party to the other, which notice shall also name one
arbitrator. The party receiving such notice shall,
within 10 business days thereafter, by written notice
to the other party, name the second arbitrator, or
failing to do so, the first party who gave notice shall
name the second arbitrator. The two arbitrators so
appointed shall name the third, or failing to do so
within 5 business days then upon the request of ei-
ther party, the third arbitrator shall be a certified
arbitrator appointed by a professional arbitration as-
sociation. Whether appointed by the two party-
named arbitrators or by a professional arbitration
association, the third arbitrator shall be knowledge-
able about and experienced in the transportation of
oil or gas or both, as applicable.
(3) HEARING.—An arbitration hearing shall be
held within 20 calendar days following the selection
of the third arbitrator. At the hearing, each party
shall submit a proposed transportation rate and evi-
dence to support such rate as it sees fit.
(4) DECISION.—The panel of arbitrators shall
determine which of the rates submitted by the par-
ties shall be the transportation charge used. The ar-
bitrators shall render a written decision within 10
calendar days after the hearing under paragraph (3)
based on a majority vote of the 3 arbitrators. Such
decision shall be final and binding on the United
States, the qualified marketing agent, and the lessee
and its affiliate, and shall be enforceable in any
court having jurisdiction.
(5) EXPENSES.—Each party shall bear its ex-
penses of prosecuting its own case in any arbitra-
tion, and the parties shall share equally any other
expenses of the arbitration, including compensation
for the third arbitrator at a rate that is fair and rea-
sonable to the United States.
(6) USE OF EMPLOYEE OF PARTY AS ARBITRA-
TOR.—(A) Any arbitrator named by the parties may
be a permanent or temporary officer or employee of
the Federal or a State Government, or an employee
of any party to the dispute, if all parties agree that
the arbitrator may serve.
(B) In implementing this paragraph, the Sec-
retary may use the services of one or more employ-
ees of other agencies to serve as arbitrators to be
named by the Secretary. The Secretary may enter
into an interagency agreement that provides for the
reimbursement by the user agency or the parties of
the full or partial costs of the services of such an
employee.
(7) LIMITATION ON DISCLOSURE.—Any party
(including the United States and its qualified mar-
keting agent) to an arbitration proceeding shall keep
confidential and shall not disclose the results of the
arbitration or any facts, evidence, or information re-
lated thereto provided in confidence to the arbitra-
tors.
(8) INTERIM RATE.—(A) The royalty oil and
royalty gas shall be transported at the disputed rate
during the interim period, subject to an obligation to
refund if the rate is later reduced as a result of arbi-
tration.
(B) Any refund under subparagraph (A) shall
be made with interest at the average short-term rate
as specified in section 6621 of the Internal Revenue
Code of 1986.
(9) DELAY OR CURTAILMENT OF PRODUCTION
PROHIBITED.—At no time during such arbitration or
dispute shall lease production be delayed or cur-
tailed.
SEC. 6. IMBALANCES.
(a) REQUIREMENT TO RESOLVE IMBALANCES.—
(1) IN GENERAL.—If the amount of royalty oil
or royalty gas production taken by the United States
from a lease premises during a calendar month dif-
fers from the amount of royalty oil or royalty gas
production attributable to that lease premises for
that calendar month, and the difference results from
the circumstances described in paragraph (2), the
difference (in this section referred to as a ‘‘royalty
share imbalance’’) shall be resolved in accordance
with this section.
(2) CIRCUMSTANCES.—The circumstances re-
ferred to in paragraph (1) are the following:
(A) A force majeure event at the delivery
point that prevents the United States trans-
porter from receiving royalty oil or royalty gas.
(B) A failure by the United States or its
qualified marketing agent to receive, transport,
and market its royalty oil or royalty gas ten-
dered for a one-time occurrence of not more
than 3 consecutive days in any calendar quar-
ter.
(C) A difference between the amount made
available to the United States at the delivery
point by the lease operator on behalf of the les-
see and the United States royalty share of total
production.
(b) IMBALANCE ACCOUNTS.—
(1) MAINTENANCE
OF
INFORMATION.—Each
lease operator shall maintain information on the
quantity of royalty oil and royalty gas produced
from or attributable to each lease premises and the
amount of royalty oil or royalty gas production
taken by the United States from each lease prem-
ises. The information shall include—
(A) the quantities of royalty oil and royalty
gas taken in kind by the United States at the
delivery point;
(B) the quantities of royalty oil and roy-
alty gas produced from and attributed to the
lease premises; and
(C) the current month and cumulative roy-
alty share imbalances.
(2) REPORT.—(A) Each lease operator shall—
(i) submit a royalty share imbalance report
to the qualified marketing agent for the United
States with respect to the lease no later than
60 days after the expiration of each month of
production from the lease; or
(ii) if all information for the report is not
available by such date, file or cause to be filed
with the qualified marketing agent a report that
contains estimated quantities, and file a revised
final report showing actual quantities no later
than 60 days after information on all actual
quantities is received.
(B) The royalty share imbalance report submit-
ted under subparagraph (A) to the qualified market-
ing agent shall constitute formal notice of a royalty
share imbalance, which shall be remedied in accord-
ance with subsection (c).
(c) MANAGING IMBALANCES.—
(1) IN GENERAL.—If a royalty share imbalance
occurs during any calendar month, the lease opera-
tor shall work with the United States (through its
qualified marketing agent) to settle the royalty share
imbalance in a manner consistent with the existing
production balancing agreements or practices among
operating rights owners.
(2) ROYALTY OIL IMBALANCE.—In the case of
a royalty share imbalance with respect to royalty oil,
and in the absence of multiple operating rights own-
ers, additional quantities of oil may be taken by ei-
ther a lessee or the United States to expeditiously
settle such royalty share imbalance as soon as is rea-
sonably practicable, as determined by the lease oper-
ator.
(3) ROYALTY GAS IMBALANCE.—(A) In the case
of a royalty share imbalance with respect to royalty
gas during any calendar month and in the absence
of multiple operating rights owners, the lease opera-
tor shall work with the United States (through its
qualified marketing agent) to arrange for increased
or decreased quantities of gas to be taken beginning
the month after receipt of such notice by the quali-
fied marketing agent, to expeditiously settle such
royalty share imbalances as soon as is reasonably
practicable.
(B) Additional quantities taken in a month by
either a lessee or the United States to reduce a roy-
alty share imbalance with respect to royalty gas
shall not exceed 25 percent of that month’s royalty
gas.
(C) Until final settlement pursuant to sub-
section (d), royalty share imbalances with respect to
royalty gas shall be reduced chronologically in the
order in which they were created.
(d) FINAL IMBALANCE REPORT AND FINAL SETTLE-
MENT.—
(1) FINAL IMBALANCE REPORT.—Upon perma-
nent cessation of production from a lease, the lease
operator shall file a final imbalance report that—
(A) contains the information described in
subsection (b); and
(B) states that the lease premises has per-
manently ceased production and that a royalty
share imbalance exists.
(2) FINAL SETTLEMENT.—The parties to a roy-
alty share imbalance shall settle such royalty share
imbalance using the same final settlement proce-
dures as set forth in the existing production bal-
ancing agreement between the operating rights own-
ers, if any. In the absence of such an agreement,
within 60 days of the final imbalance report, each
party that received excess quantities shall, at its op-
tion, make delivery of the excess quantities or make
a cash payment, to the parties who received insuffi-
cient quantities. The cash payment shall be based on
the net proceeds (in terms of actual value received)
from the sale of such excess quantities for value at
the lease premises or the lessee may make delivery
of the imbalance volume. No interest shall accrue,
prior to the date of any settlement, on any imbal-
ance.
SEC. 7. ROYALTY-IN-KIND FOR TRUCKED, TANKERED, OR
BARGED OIL OR GAS.
(a) APPLICATION.—This section shall apply to roy-
alty oil or royalty gas produced from onshore or offshore
lease premises for which there is no pipeline connection
at the well such that the royalty oil or royalty gas is trans-
ported by truck, tanker, or barge from the lease premises.
(b) SELECTION OF TRANSPORTER.—
(1) IN GENERAL.—To further the efficient and
cost-effective taking of royalty oil or royalty gas in
kind from such lease premises, the qualified market-
ing agent shall select and utilize a transporter who
is transporting oil or gas for a lessee from the lease
premises, or for the operator of the lease premises.
(2) EXCEPTION.—Royalty oil or royalty gas
taken in kind may be transported in any other man-
ner agreed to by the qualified marketing agent and
the lessee or lease operator.
(c) RELATIONSHIP TO OTHER LAWS.—
(1) LAWS REGARDING OIL OR GAS TRANSPOR-
TATION.—This section shall not alter or abridge any
State or Federal law regulating the transportation of
oil or gas by truck, tanker, or barge.
(2) FEDERAL
ROYALTY
PREPAYMENT
PROVI-
SIONS.—Nothing in this Act shall modify, abridge,
or alter the provisions of section 7(b) of the Federal
Oil and Gas Royalty Simplification and Fairness Act
(30 U.S.C. 1726) with respect to the prepayment of
royalty.
SEC. 8. LIMITATIONS ON APPLICATION.
(a) LEASE ROYALTY CLAUSES AND ROYALTY PAY-
MENTS.—This Act does not apply to royalty payments of
the following types:
(1) Compensatory royalties.
(2) Minimum royalties.
(3) Net profit share lease royalties prior to pay-
out.
(b) PRIOR ROYALTY RATE REDUCTION DETERMINA-
TIONS.—This Act shall not modify or alter any royalty
rate reduction determination made by the Secretary before
or after the date of enactment of this Act. The amount
of royalty oil and royalty gas taken in kind by the Sec-
retary shall be the amount calculated by such reduced roy-
alty rate.
(c) AUDIT OF ELIGIBLE SMALL REFINER.—The Sec-
retary shall have the right to audit the reports of eligible
small refiners related to the volume of royalty oil received
as are required under the provisions of this Act during
normal business hours, at reasonable times, to verify the
accuracy of such reports.
SEC. 9. REPORTING.
(a) REPORTING BY LESSEE.—A lessee shall provide
or cause to be provided all volume reports required under
the oil and gas lease to the United States, but shall be
relieved of the obligation of providing any royalty related
and all royalty-in-value reports for any royalty oil or roy-
alty gas taken in kind by the United States required pur-
suant to the oil and gas lease terms or applicable statutes.
A lessee shall make available or cause to be made available
such information as is customarily provided to third party
sellers of lease production on a timely basis.
(b) 
REPORTING
BY
QUALIFIED
MARKETING
AGENT.—A qualified marketing agent shall provide or
cause to be provided to the United States any valuation
or related royalty reports required by the Secretary.
SEC. 10. AUDIT.
(a) AUDIT OF LESSEE.—The Secretary shall have the
right to audit the reports of lessees related to the volume
of oil and gas produced as are required under this Act
during normal business hours, at reasonable times, to ver-
ify the accuracy of such reports.
(b) AUDIT OF QUALIFIED MARKETING AGENT.—The
Secretary shall have the right to audit the reports of quali-
fied marketing agents required under this Act during nor-
mal business hours, at reasonable times, to verify the ac-
curacy of such reports. Any information and records re-
garding sales of royalty oil and royalty gas shall be ob-
tained, where necessary, from a qualified marketing agent
and nonaffiliated purchaser shall be subject to audit.
SEC. 11. LEASE TERMS NOT AFFECTED.
In accordance with the terms of oil and gas leases
issued by the Secretary, the Secretary shall exercise the
right to be paid oil and gas royalties in amount pursuant
to this Act and lessees shall pay such oil and gas royalties
in amount pursuant to provisions of this Act. Nothing in
this Act shall alter or abridge the rights of a lessee under
an oil and gas lease, including the right to explore for,
operate, drill for, or produce oil and gas or to otherwise
operate the lease. The rights, duties, or obligations that
exist between the United States and a lessee which arise
under an oil and gas lease with respect to oil or gas used
on the lease premises or gas unavoidably lost prior to the
delivery point shall not be affected, abridged, or altered
by this Act. When oil or gas is used on, or for the benefit
of, a lease premises at a facility handling production from
more than one lease premises, or at a facility handling
unitized or communitized production, the proportionate
share of each lease’s production (actual or allocated) nec-
essary to operate the facility may be used royalty-free.
SEC. 12. ELIGIBLE AND SMALL REFINERS.
(a) SALE OF ROYALTY OIL TO ELIGIBLE SMALL RE-
FINERS.—(1) The Secretary shall direct qualified market-
ing agents to offer for sale to eligible small refiners the
eligible small refiner portion in accordance with the provi-
sions set forth in this section.
(2) The sale of royalty oil from the eligible small re-
finer portion to an eligible small refiner is intended for
processing, or trading for equivalent barrels for process-
ing, in the eligible small refiner’s refineries located in the
United States and not for resale in-kind or value.
(3) The Secretary shall annually review and recertify
or withdraw the continuing eligibility of previously cer-
tified eligible small refiners.
(4) The eligible small refiner portion shall be offered
to eligible small refiners from royalty oil volumes to be
sold by each qualified marketing agent. If there are suc-
cessful offers for all royalty oil volumes to be sold, the
eligible small refiner portion price shall be the weighted
average price of the 40 percent of royalty oil volumes to
be sold for which the lowest successful offers have been
received. If a part of the royalty oil volumes to be sold
does not receive a successful offer, for weighted average
pricing purposes, that part shall be valued using the price
of the lowest successful offer.
(5) Nothing in this section shall preclude any eligible
small refiner from participating in any open and adver-
tised or negotiated sale by qualified marketing agents.
Royalty oil volumes obtained by any eligible small refiner
in any open and advertised or negotiated sale shall not
be included in calculating limitations on eligibility as de-
fined in subsection (b).
(b) LIMITATIONS ON ELIGIBILITY.—No eligible small
refiner may purchase royalty oil from the eligible small
refiner portion for delivery at a rate that exceeds 60 per-
cent of the combined crude oil and condensate distillation
capacity of that eligible small refiner’s currently operating
refineries located in the United States unless the Sec-
retary determines that it is in the public interest to allow
all eligible small refiners to purchase royalty oil at a great-
er rate. The Secretary shall promulgate rules and regula-
tions to determine an eligible small refiner’s current oper-
ating capacity.
(c) FEES, CREDITWORTHINESS, AND SURETY RE-
QUIREMENTS.—(1) The purchase of royalty oil from the
eligible small refiner portion pursuant to this section shall
not be subject to any fees or charges not required of all
purchasers of royalty oil.
(2) The Secretary shall establish conditions for each
eligible small refiner’s creditworthiness at the time of de-
termining and reviewing eligibility.
(3) Creditworthiness requirements for eligible small
refiners shall not exceed standard industry requirements
governing non-Federal crude oil purchasers, and the Sec-
retary may not require surety in excess of the estimated
value of 60 days anticipated deliveries of royalty oil from
the eligible small refiner portion to individual eligible small
refiners.
(d) ELIGIBLE SMALL REFINER ADVISORY PANEL.—
The Secretary shall convene an eligible small refiner advi-
sory panel to assist in developing policies and procedures
to implement the provisions of this Act. The eligible small
refiner advisory panel shall be comprised of representa-
tives from not less than 5 small refiners who have partici-
pated in the small refiner program established pursuant
to section 36 of the Mineral Leasing Act (30 U.S.C. 192)
or section 1353 of the Outer Continental Shelf Lands Act
(43 U.S.C. 1353).
(e) ll.—Pursuant to the recommendations of the
Small Refiner’s Advisory Group, the Secretary shall de-
velop and implement procedures to ensure a fair and equi-
table opportunity for interested eligible small refiners to
purchase royalty oil from the eligible small refiner portion.
(f) REPORTS ON RIK.—The Secretary may require
any eligible small refiner to submit a report demonstrating
the eligible small refiner’s compliance with subsection
(a)(2).
(g) REPEAL
OF EXISTING ROYALTY-IN-KIND AU-
THORITY.—Section 36 of the Mineral Leasing Act (30
U.S.C. 192) and section 1353 of the Outer Continental
Shelf Lands Act (43 U.S.C. 1353) are repealed.
SEC. 13. APPLICABLE LAWS.
(a) MOVEMENT, DISPOSITION, AND SALE OF ROY-
ALTY OIL
AND ROYALTY GAS.—In arranging for the
movement, disposition and sale of royalty oil and royalty
gas, the United States and its qualified marketing agents
shall be subject to all laws that apply to the movement,
disposition, and sale of oil and gas.
(b) NO ADDITIONAL PRIORITY
OF SERVICE
OR
MOVEMENT.—In any pipeline, truck, barge, railroad, or
other carrier downstream of the delivery point, royalty oil
and royalty gas shall not be afforded a priority of service
or movement, nor assigned a capacity right which is supe-
rior to that identified in—
(1) the contract for carriage of royalty oil and
royalty gas entered into by the transporter with the
United States or the qualified marketing agent; or
(2) the tariff applicable to such carrier, if any.
(c) MEANING OF TERMS USED.—The meaning of the
terms used in this Act shall be supplemented by reference
to generally accepted accounting principles.
(d) LAWS APPLICABLE TO STRIPPER OR MARGINAL
PRODUCTION NOT AFFECTED.—Nothing in this Act shall
modify, abridge or alter the provisions of the Deep Water
Royalty Relief Act of 1995 (43 U.S.C. 1337), or any other
Federal law applicable to stripper or marginal production.
SEC. 14. INDIAN LANDS.
This Act shall not apply with respect to Indian lands.
SEC. 15. EFFECTIVE DATE; REGULATIONS.
(a) IN GENERAL.—Except as provided in subsection
(b), this Act shall become effective 18 months after the
date of enactment of this Act, and shall apply with respect
to the production of oil and gas on or after the first day
of the month following the effective date of this Act.
(b) REGULATIONS.—The Secretary shall issue all
regulations required for implementation of this Act within
one year after the date of enactment of this Act.
Æ