(B) be subject to payment of royalties on 
the basis of winter sales price minus $0.50 per 
MMBTU. 
(36) Requiring payment of royalties on any 
such natural gas stored on Federal or Indian lands 
on the basis of corresponding storage charges for the 
use of Federal or Indian lands, respectively, for such 
storage service. 
(37) Imposing penalties for the intentional non-
payment of royalties for natural gas liquids recov-
ered— 
(A) from purging of natural gas gathering 
lines and natural gas pipelines; or 
(B) from field separators, dehydrators, and 
processing plants, 
including cancellation of oil and natural gas leases 
and criminal penalties. 
(38) Requiring that the separator, dehydrator, 
and natural gas meter be located within 100 feet of 
each natural gas wellhead. 
(39) Requiring that BTU heating content anal-
ysis be performed when the natural gas is at a tem-
perature of 140 to 150 degrees Fahrenheit at all 
times, as required by the American Gas Association 
(AGA) regulations. 
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(40) Requiring that heating content analysis 
and volume measurements are identical at the sales 
point to what they are at the purchase point, after 
allowing for a small volume for leakage in old pipes, 
but with no allowance for heating content discrep-
ancy. 
(41) Requiring that all natural gas produced 
under such leases be at all times sold to public, in-
dustrial, storage, and private customers only on a 
MMBTU basis of MCF (1000 CF) x MBTU (1000 
BTU). 
(42) Verification by the Secretary that the spe-
cific gravity of natural gas produced under such 
leases, as measured at the meter run, corresponds to 
the heating content analysis data for such natural 
gas, in accordance with the Natural Gas Processors 
Association Publication 2145–71(1), entitled ‘‘Phys-
ical Constants Of Paraffin Hydrocarbons And Other 
Components Of Natural Gas’’, and reporting of all 
discrepancies immediately. 
(43) Prohibiting all deductions on royalty pay-
ments for marketing of natural gas, condensate, and 
oil by an affiliate or agent. 
(44) Requiring that all standards of the Amer-
ican Petroleum Institute, the American Gas Associa-
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tion, the Gas Processors Association, and the Amer-
ican Society of Testing Materials, Minerals Manage-
ment Service Order No. 5, and all other Minerals 
Management Service orders be faithfully observed 
and applied, and willful misconduct of such stand-
ards and orders be subject to oil and gas lease can-
cellation. 
(45) Requiring that all oil and condensate pro-
duced from Federal and Indian lands must be stored 
and measured in cylindrical tanks, and prohibiting 
any distortion, such as squeezing or bending of a 
storage tank, that hinders the true and honest meas-
urement of volume of condensate and oil. 
SEC. 3. REVIEW OF ROYALTY PAYMENTS. 
The Secretary of the Interior, subject to the avail-
ability of appropriations, shall award a contract under 
which the contractor shall— 
(1) compare royalty payments made under Fed-
eral oil and gas lease provisions for covered lands 
against data supplied to the Federal Energy Regu-
latory Commission; 
(2) make such comparison retroactive to June 
1, 1974, by integrating existing natural gas analog 
charts or digital meter results (or both) for each 
natural gas meter and multiplying the corresponding 
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standard volume results by heating content analysis 
obtained from corresponding specific gravity meas-
urement relationship; 
(3) determine whether the correct production 
standard volume and total heating content analysis 
was used to calculate such payments; and 
(4) determine whether such payments were ade-
quate under the terms of such oil and gas leases, by 
among other procedures comparing the reported roy-
alty values with respected published market price re-
ports, such as Platts or Bloombergs. 
SEC. 4. DEFINITIONS. 
In this Act: 
(1) COVERED
LANDS.—The term ‘‘covered 
lands’’ means— 
(A) all Federal onshore lands and offshore 
lands that are under the administrative jurisdic-
tion of the Department of the Interior for pur-
poses of oil and gas leasing; and 
(B) Indian onshore lands. 
(2) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior. 
Æ 
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