I
105TH CONGRESS
2D SESSION
H. R. 4604
To direct the Minerals Management Service to grant the State of Louisiana
and its lessees a credit in the payment of Federal offshore royalties
to compensate for oil and gas drainage in the West Delta Field.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 18, 1998
Mr. TAUZIN (for himself, Mr. LIVINGSTON, Mr. BAKER, and Mr. JOHN) intro-
duced the following bill; which was referred to the Committee on Re-
sources
A BILL
To direct the Minerals Management Service to grant the
State of Louisiana and its lessees a credit in the payment
of Federal offshore royalties to compensate for oil and
gas drainage in the West Delta Field.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. ROYALTY RELIEF.
(a) ROYALTY RELIEF.—The purpose of this Act is
to grant relief efficiently and expeditiously to the State
of Louisiana and the State lessees for moneys owed to the
State and the State lessees under section 6004(c) of Pub-
lic Law 101–380 (104 Stat. 558, 559). Payment of Fed-
eral offshore royalties owed by the States lessees to the
United States under the Outer Continental Shelf Lands
Act may be withheld by the State lessees if, on or before
the date that the royalty payment concerned is due and
payable to the United States, the State lessees make a
payment to the State of Louisiana at a rate of 44 cents
for every $1.00 of royalty withheld.
(b) PERIOD OF ROYALTY RELIEF.—The royalty relief
granted under subsection (a) shall commence with respect
to royalty payments due and payable to the United States
after the date 60 days after the enactment of this Act
and shall end when the total of the royalty relief granted
under subsection (a) is equal to the full amount of the
authorization set forth in section 6004(c) of Public Law
101–380 plus simple interest at 8 percent per year from
March 21, 1989, in accordance with such section 6004(c).
(c) MANNER OF PAYMENTS.—Payments by the State
lessees to the State of Louisiana under this Act shall be
made in a manner mutually agreed upon by the State of
Louisiana and the States lessees. Any dispute between the
State of Louisiana and the State lessees as to the manner
of payments to the State under this Act shall be resolved
by the Secretary of the Interior, acting through the Direc-
tor of the Minerals Management Service, in the exercise
of his discretion.
(d) REPORTS.—The State lessees shall provide a
quarterly report to the Director of the Minerals Manage-
ment Service listing the Federal leases for which royalty
payments are withheld pursuant to this Act. For each such
Federal lease the report shall detail the amount and dates
of production from those leases, the value of royalties due
on production from any such leases, and the outstanding
balance, if any, of royalty relief still owed to the State
lessees and the State of Louisiana under section 6004(c)
of Public Law 101–380.
(d) DEFINITION OF STATE LESSEES.—As used in
this Act, the term ‘‘State lessees’’ means those companies
of individuals, and their successors and assigns, that, dur-
ing the Critical Time Period, as defined in the March 21,
1989 Third Party Factfinder Louisiana Boundary Study
provided to the Department of the Interior under contract
number 14–35–0001–30469, held lease rights in the State
of Louisiana leases SL10087, SL10088, and SL10187,
but did not hold lease rights in Federal Lease OCS–G–
5669.
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