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‘‘that arises from or relates to any lease, easement, right- 
of-way, permit, or other agreement regardless of form ad-
ministered by the Secretary for, or any mineral leasing 
law related to, the exploration, production, and develop-
ment of oil and gas or other energy resource on Federal 
lands or the Outer Continental Shelf;’’. 
(7) in paragraph (29), by inserting ‘‘or permit’’ 
after ‘‘lease’’; and 
(8) by striking ‘‘and’’ after the semicolon at the 
end of paragraph (32), by striking the period at the 
end of paragraph (33) and inserting a semicolon, 
and by adding at the end the following new para-
graphs: 
‘‘(34) ‘compliance review’ means a full-scope or 
a limited-scope examination of a lessee’s lease ac-
counts to compare one or all elements of the royalty 
equation (volume, value, royalty rate, and allow-
ances) against anticipated elements of the royalty 
equation to test for variances; and 
‘‘(35) ‘marketing affiliate’ means an affiliate of 
a lessee whose function is to acquire the lessee’s pro-
duction and to market that production.’’. 
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SEC. 302. COMPLIANCE REVIEWS. 
Section 101 of the Federal Oil and Gas Royalty Man-
agement Act of 1982 (30 U.S.C. 1711) is amended by 
adding at the end the following new subsection: 
‘‘(d) The Secretary may, as an adjunct to audits of 
accounts for leases, utilize compliance reviews of accounts. 
Such reviews shall not constitute nor substitute for audits 
of lease accounts. Any disparity uncovered in such a com-
pliance review shall be immediately referred to a program 
auditor. The Secretary shall, before completion of a com-
pliance review, provide notice of the review to designees 
whose obligations are the subject of the review.’’. 
SEC. 303. CLARIFICATION OF LIABILITY FOR ROYALTY PAY-
MENTS. 
Section 102(a) of the Federal Oil and Gas Royalty 
Management Act of 1982 (30 U.S.C. 1712(a)) is amended 
to read as follows: 
‘‘(a) In order to increase receipts and achieve effec-
tive collections of royalty and other payments, a lessee who 
is required to make any royalty or other payment under 
a lease, easement, right-of-way, permit, or other agree-
ment, regardless of form, or under the mineral leasing 
laws, shall make such payment in the time and manner 
as may be specified by the Secretary or the applicable dele-
gated State. Any person who pays, offsets, or credits mon-
ies, makes adjustments, requests and receives refunds, or 
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submits reports with respect to payments the lessee must 
make is the lessee’s designee under this Act. Notwith-
standing any other provision of this Act to the contrary, 
a designee shall be liable for any payment obligation of 
any lessee on whose behalf the designee pays royalty under 
the lease. The person owning operating rights in a lease 
and a person owning legal record title in a lease shall be 
liable for that person’s pro rata share of payment obliga-
tions under the lease.’’. 
SEC. 304. REQUIRED RECORDKEEPING. 
Section 103(b) of the Federal Oil and Gas Royalty 
Management Act of 1982 (30 U.S.C. 1712(a)) is amended 
by striking ‘‘6’’ and inserting ‘‘7’’. 
SEC. 305. FINES AND PENALTIES. 
Section 109 of the Federal Oil and Gas Royalty Man-
agement Act of 1982 (30 U.S.C. 1719) is amended— 
(1) in subsection (a) in the matter following 
paragraph (2), by striking ‘‘$500’’ and inserting 
‘‘$1,000’’; 
(2) in subsection (a)(2)(B), by inserting ‘‘(i)’’ 
after ‘‘such person’’, and by striking the period at 
the end and inserting ‘‘; and (ii) has not received no-
tice, pursuant to paragraph (1), of more than two 
prior violations in the current calendar year.’’; 
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(3) in subsection (b), by striking ‘‘$5,000’’ and 
inserting ‘‘$10,000’’; 
(4) in subsection (c)— 
(A) in paragraph (2), by striking ‘‘; or’’ 
and inserting ‘‘, including any failure or refusal 
to promptly tender requested documents;’’; 
(B) in the text following paragraph (3)— 
(i) by striking ‘‘$10,000’’ and insert-
ing ‘‘$20,000’’; and 
(ii) by striking the comma at the end 
and inserting a semicolon; and 
(C) by adding at the end the following new 
paragraphs: 
‘‘(4) knowingly or willfully fails to make any 
royalty payment in the amount or value as specified 
by statute, regulation, order, or terms of the lease; 
or 
‘‘(5) fails to correctly report and timely provide 
operations or financial records necessary for the Sec-
retary or any authorized designee of the Secretary to 
accomplish lease management responsibilities,’’; 
(5) in subsection (d), by striking ‘‘$25,000’’ 
and inserting ‘‘$50,000’’; 
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(6) in subsection (h), by striking ‘‘by registered 
mail’’ and inserting ‘‘a common carrier that provides 
proof of delivery’’; and 
(7) by adding at the end the following sub-
section: 
‘‘(m)(1) Any determination by the Secretary or a des-
ignee of the Secretary that a person has committed a vio-
lation under subsection (a), (c), or (d)(1) shall toll any 
applicable statute of limitations for all oil and gas leases 
held or operated by such person, until the later of— 
‘‘(A) the date on which the person corrects the 
violation and certifies that all violations of a like na-
ture have been corrected for all of the oil and gas 
leases held or operated by such person; or 
‘‘(B) the date a final, nonappealable order has 
been issued by the Secretary or a court of competent 
jurisdiction. 
‘‘(2) A person determined by the Secretary or a des-
ignee of the Secretary to have violated subsection (a), (c), 
or (d)(1) shall maintain all records with respect to the per-
son’s oil and gas leases until the later of— 
‘‘(A) the date the Secretary releases the person 
from the obligation to maintain such records; and 
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‘‘(B) the expiration of the period during which 
the records must be maintained under section 
103(b).’’. 
SEC. 306. INTEREST ON OVERPAYMENTS. 
Section 111 of the Federal Oil and Gas Royalty Man-
agement Act of 1982 (30 U.S.C. 1721) is amended— 
(1) by amending subsections (h) and (i) to read 
as follows: 
‘‘(h) Interest shall not be allowed nor paid nor cred-
ited on any overpayment, and no interest shall accrue from 
the date such overpayment was made. 
‘‘(i) A lessee or its designee may make a payment 
for the approximate amount of royalties (hereinafter in 
this subsection referred to as the ‘estimated payment’) 
that would otherwise be due for such lease by the date 
royalties are due for that lease. When an estimated pay-
ment is made, actual royalties are payable at the end of 
the month following the month in which the estimated 
payment is made. If the estimated payment was less than 
the amount of actual royalties due, interest is owed on 
the underpaid amount. If the lessee or its designee makes 
a payment for such actual royalties, the lessee or its des-
ignee may apply the estimated payment to future royal-
ties. Any estimated payment may be adjusted, recouped, 
or reinstated by the lessee or its designee provided such 
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SEC. 
313. 
COLLECTION 
AND 
PRODUCTION 
ACCOUNT-
ABILITY. 
(a) PILOT PROJECT.—Within 2 years after the date 
of enactment of this Act, the Secretary shall complete a 
pilot project with willing operators of oil and gas leases 
on the Outer Continental Shelf that assesses the costs and 
benefits of automatic transmission of oil and gas volume 
and quality data produced under Federal leases on the 
Outer Continental Shelf in order to improve the produc-
tion verification systems used to ensure accurate royalty 
collection and audit. 
(b) REPORT.—The Secretary shall submit to Con-
gress a report on findings and recommendations of the 
pilot project within 3 years after the date of enactment 
of this Act. 
SEC. 314. NATURAL GAS REPORTING. 
The Secretary shall, within 180 days after the date 
of enactment of this Act, implement the steps necessary 
to ensure accurate determination and reporting of BTU 
values of natural gas from all Federal oil and gas leases 
to ensure accurate royalty payments to the United States. 
Such steps shall include, but not be limited to— 
(1) establishment of consistent guidelines for 
onshore and offshore BTU information from gas 
producers; 
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(2) development of a procedure to determine 
the potential BTU variability of produced natural 
gas on a by-reservoir or by-lease basis; 
(3) development of a procedure to adjust BTU 
frequency requirements for sampling and reporting 
on a case-by-case basis; 
(4) systematic and regular verification of BTU 
information; and 
(5) revision of the ‘‘MMS–2014’’ reporting 
form to record, in addition to other information al-
ready required, the natural gas BTU values that 
form the basis for the required royalty payments. 
SEC. 315. PENALTY FOR LATE OR INCORRECT REPORTING 
OF DATA. 
(a) IN GENERAL.—The Secretary shall issue regula-
tions by not later than 1 year after the date of enactment 
of this Act that establish a civil penalty for late or incor-
rect reporting of data under the Federal Oil and Gas Roy-
alty Management Act of 1982 (30 U.S.C. 1701 et seq.). 
(b) AMOUNT.—The amount of the civil penalty shall 
be— 
(1) an amount (subject to paragraph (2)) that 
the Secretary determines is sufficient to ensure filing 
of data in accordance with that Act; and 
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(2) not less than $10 for each failure to file 
correct data in accordance with that Act. 
(c) CONTENT OF REGULATIONS.—Except as provided 
in subsection (b), the regulations issued under this section 
shall be substantially similar to part 216.40 of title 30, 
Code of Federal Regulations, as most recently in effect 
before the date of enactment of this Act. 
SEC. 316. REQUIRED RECORDKEEPING. 
Within 1 year after the date of enactment of this Act, 
the Secretary shall publish final regulations concerning re-
quired recordkeeping of natural gas measurement data as 
set forth in part 250.1203 of title 30, Code of Federal 
Regulations (as in effect on the date of enactment of this 
Act), to include operators and other persons involved in 
the transporting, purchasing, or selling of gas under the 
requirements of that rule, under the authority provided 
in section 103 of the Federal Oil and Gas Royalty Man-
agement Act of 1982 (30 U.S.C. 1713). 
SEC. 317. SHARED CIVIL PENALTIES. 
Section 206 of the Federal Oil and Gas Royalty Man-
agement Act of 1982 (30 U.S.C. 1736) is amended by 
striking ‘‘Such amount shall be deducted from any com-
pensation due such State or Indian Tribe under section 
202 or section 205 or such State under section 205.’’. 
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SEC. 318. APPLICABILITY TO OTHER MINERALS. 
Section 304 of the Federal Oil and Gas Royalty Man-
agement Act of 1982 (30 U.S.C. 1753) is amended by 
adding at the end the following new subsection: 
‘‘(e) APPLICABILITY TO OTHER MINERALS.— 
‘‘(1) Notwithstanding any other provision of 
law, sections 107, 109, and 110 of this Act and the 
regulations duly promulgated with respect thereto 
shall apply to any lease authorizing the development 
of coal or any other solid mineral on any Federal 
lands or Indian lands, to the same extent as if such 
lease were an oil and gas lease, on the same terms 
and conditions as those authorized for oil and gas 
leases. 
‘‘(2) Notwithstanding any other provision of 
law, sections 107, 109, and 110 of this Act and the 
regulations duly promulgated with respect thereto 
shall apply with respect to any lease, easement, 
right-of-way, or other agreement, regardless of form 
(including any royalty, rent, or other payment due 
thereunder)— 
‘‘(A) under section 8(k) or 8(p) of the 
Outer Continental Shelf Lands Act (43 U.S.C. 
1337(k) and 1337(p)); or 
‘‘(B) under the Geothermal Steam Act (30 
U.S.C. 1001 et seq.), to the same extent as if 
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such lease, easement, right-of-way, or other 
agreement were an oil and gas lease on the 
same terms and conditions as those authorized 
for oil and gas leases. 
‘‘(3) For the purposes of this subsection, the 
term ‘solid mineral’ means any mineral other than 
oil, gas, and geo-pressured-geothermal resources, 
that is authorized by an Act of Congress to be pro-
duced from public lands (as that term is defined in 
section 103 of the Federal Land Policy and Manage-
ment Act of 1976 (43 U.S.C. 1702)).’’. 
SEC. 319. ENTITLEMENTS. 
Not later than 180 days after the date of enactment 
of this Act, the Secretary shall publish final regulations 
prescribing when a Federal lessee or designee must report 
and pay royalties on the volume of oil and gas it takes 
under either a Federal or Indian lease or on the volume 
to which it is entitled to based upon its ownership interest 
in the Federal or Indian lease. The Secretary shall give 
consideration to requiring 100 percent entitlement report-
ing and paying based upon the lease ownership. 
SEC. 320. LIMITATION ON ROYALTY IN-KIND PROGRAM. 
Section 36 of the Mineral Leasing Act (30 U.S.C. 
192) is amended by inserting before the period at the end 
of the first sentence the following: ‘‘, except that the Sec-
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