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Union Calendar No. 589
106TH CONGRESS
2D SESSION
H. R. 4340
[Report No. 106–1012]
To simplify Federal oil and gas revenue distributions, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 13, 2000
Mr. UDALL of New Mexico (for himself, Mrs. CUBIN, and Mr. SKEEN) intro-
duced the following bill; which was referred to the Committee on Re-
sources
OCTOBER 26, 2000
Additional sponsors: Mr. JOHN, Mr. ISTOOK, Mr. COOK, Mr. POMEROY, Mr.
MORAN of Kansas, Mr. GIBBONS, Mr. RADANOVICH, Mr. MOORE, and
Mr. RYUN of Kansas
OCTOBER 26, 2000
Committed to the Committee of the Whole House on the State of the Union
and ordered to be printed
A BILL
To simplify Federal oil and gas revenue distributions, and
for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Mineral Revenue Pay-
ments Clarification Act of 2000’’.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) Subtitle C of title X of the Omnibus Budget
Reconciliation Act of 1993 (Public Law 103–66)
changed the sharing of onshore mineral revenues
and revenues from geothermal steam from a 50:50
split between the Federal Government and the
States to a complicated formula, which provides that
‘‘50 percent of the portion of the enacted appropria-
tion of the Department of the Interior and any other
agency during the preceding fiscal year allocable to
the administration of all laws providing for the leas-
ing of any onshore lands or interest in land owned
by the United States for the production of the same
types of minerals leasable under this Act or of geo-
thermal steam, and to enforcement of such laws,
shall be deducted from the receipts derived under
those laws in approximately equal amounts each
month (subject to paragraph (4)) prior to the divi-
sion and distribution of such receipts between the
States and the United States.’’.
(2) The system put in place by this change in
law has proved difficult to administer and has given
rise to disputes between the Federal Government
and the States as to the nature of allocable ex-
penses. Federal accounting systems have proven to
be poorly suited to breaking down administrative
costs in the manner required by the law. Different
Federal agencies implementing this law have used
varying methodologies to identify allocable costs, re-
sulting in an inequitable distribution of costs during
fiscal years 1994 through 1996. In November, 1997,
the Inspector General of the Department of the In-
terior found that ‘‘the congressionally approved
method for cost sharing deductions effective in fiscal
year 1997 may not accurately compute the deduc-
tions.’’.
(3) Given the complexity and administrative
burden involved, a return to the sharing formula as
last amended by Public Law 100–203 is justified.
SEC. 3. AMENDMENT OF THE MINERAL LEASING ACT.
Section 35(b) of the Mineral Leasing Act (30 U.S.C.
191(b)) is amended to read as follows:
‘‘(b) In determining the amount of payments to the
States under this section, the amount of such payments
shall not be reduced by any administrative or other costs
incurred by the United States.’’.
Union Calendar No. 589
106TH CONGRESS
2D SESSION
H. R. 4340
[Report No. 106–1012]
A BILL
To simplify Federal oil and gas revenue
distributions, and for other purposes.
OCTOBER 26, 2000
Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed