586
the location notice or certificate is posted on the land
under applicable State law, confer upon the owner of any
unpatented mining claim or site, whether located before
or after the date of enactment of this Act, an exclusive
right of possession, as against subsequent locators, of the
land included in such mining claim or site under the gen-
eral mining laws. If more than one mining claim or site
owned or controlled by the same claim or site owner covers
substantially the same land, by reason of the location of
one or more mining claims or sites on such land, the
amendment or relocation of any such mining claim or site,
or otherwise, such exclusive right of possession shall ex-
tend to all such mining claims or sites, effective from the
time the location notice or certificate for the initial mining
claim or site was posted on such land under applicable
State law. The order of location, amendment, or relocation
of any such mining claims or sites on such land shall not
affect the validity of any such mining claim or site. Such
owner of the mining claim or site shall not be required
to be in actual, physical occupation of such land and shall
not be required to exclude rival locators from such land.
Such exclusive right of possession shall be subject to appli-
cable Federal law, including the Multiple Mineral Develop-
ment Act of 1954 (30 U.S.C. 521–31), the Materials Act
of 1947 (30 U.S.C. 601–604) and the Surface Resources
587
Act of 1955 (30 U.S.C. 611–15) to the extent applicable,
and shall neither enlarge nor diminish any rights of such
owner of the mining claim or site as against the United
States in such land. This paragraph shall supersede the
common law doctrine of pedis possessio.
(2) Conflicts over the right of exclusive possession of
land included in any mining claim or site shall be deter-
mined in proceedings between owners of mining claims or
sites under the provisions of section 910 of the Revised
Statutes (30 U.S.C. 53) and other applicable law, includ-
ing but not limited to each of the following:
(A) Any conflict based upon circumstances ex-
isting as of the date of enactment of this Act be-
tween mining claims or sites located before the date
of enactment of this Act, shall be resolved under the
law in effect on the day prior to the date of enact-
ment of this Act, including the common law doctrine
of pedis possessio.
(B) Any conflict arising on or after the date of
enactment of this Act between mining claims or sites
located before, on or after the date of enactment
over whether either owner of the mining claim or
site has complied with the requirements of this sec-
tion, shall be resolved under this Act.
588
(h) FAILURE
OF CO-OWNER TO CONTRIBUTE.—
Upon the failure of any one or more of several co-owners
of any mining claim or site to contribute such co-owner
or owners’ portion of any location or maintenance fee pay-
able under this section, any co-owner who has paid such
fee may, after the payment due date, serve the delinquent
co-owner or owners with notice of such failure in writing
or, if such delinquent co-owner or owners cannot be lo-
cated after reasonable efforts, by publication in a general
circulation newspaper published in a location nearest the
mining claim or site at least once a week for at least 90
days. If at the expiration of 90 days after such notice in
writing or by publication, any delinquent co-owner fails or
refuses to contribute the owed portion, such co-owner or
owners’ interest shall become the property of the owner
or co-owners who have paid the required fee.
(i) LOCATION FEE.—The owner of each unpatented
mining claim or site located on or after the date of enact-
ment of this Act pursuant to the general mining laws shall
pay to the Secretary, at the time the notice or certificate
of location is filed with the Bureau of Land Management
pursuant to subsection 314(b) of the Federal Land Policy
and Management Act of 1976 (43 U.S.C. 1744(b)), a loca-
tion fee of $25.00 per mining claim or site. The full
amount of all fees paid under this subsection shall be de-
589
posited in the General Fund of the Treasury. Effective
on the date of the enactment of this Act, section 10102
of the Omnibus Budget Reconciliation Act of 1993 (107
Stat. 406; 30 U.S.C. 28g) is repealed.
(j) CREDIT AGAINST MAINTENANCE FEE.—(1) Ex-
cept as provided in paragraph (2), the annual maintenance
fee payable for any unpatented mining claim or site for
any assessment year shall be reduced by the amount of
royalty paid by such claimholder for such mining claim
or site, or for any contiguous mining claim or site, during
the prior assessment year.
(2) Royalties paid during any assessment year prior
to the first full assessment year commencing after the en-
actment of this Act shall not reduce the amount of any
maintenance fee.
(k) OIL SHALE CLAIMS SUBJECT TO CLAIM MAINTE-
NANCE FEE UNDER ENERGY POLICY ACT OF 1992.—
This section shall not apply to any oil shale claims for
which a fee is required to be paid under paragraph
2511(e)(2) of the Energy Policy Act of 1992 (30 U.S.C.
242(e)(2)).
(l) FAILURE TO COMPLY.—The failure of the owner
of the mining claim or site to pay any claim maintenance
fee or location fee for a mining claim or site on or before
the date such payment is due under this section shall con-
590
stitute forfeiture of the mining claim or site and such min-
ing claim or site shall be null and void, effective as of the
day after the date such payment is due, except that if such
maintenance fee or location fee is paid or tendered on or
before the 30th day after such payment was due under
subsection of this section, such mining claim or site shall
not be forfeited or null or void, and such maintenance fee
or location fee shall be deemed timely paid.
(m) AMENDMENT
OF FLPMA FILING REQUIRE-
MENTS.—(1) Section 314(a) of the Federal Land Policy
and Management Act of 1976 (43 U.S.C. 1744(a)) is
hereby repealed.
(2) Section 314(c) of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1744(c)) is amended
to read as follows:
‘‘(c) FAILURE TO FILE AS CONSTITUTING FORFEIT-
URE; DEFECTIVE OR UNTIMELY FILING.—The failure to
timely file the copy of the notice or certificate of location
as required by subsection (b) shall constitute forfeiture of
the mining claim and such claim shall be null and void
by operation of law; except that it shall not be considered
a failure to file if the notice or certificate of location is
defective or not timely filed for record under other State
or Federal laws permitting or requiring the filing or re-
cording thereof, or if the copy of the notice or certificate
591
is filed by or on behalf of some but not all of the owners
of the claim.’’.
(n) RELATED PERSONS.—As used in this section, the
term ‘‘related persons’’ includes—
(1) the spouse and dependent children (as de-
fined in section 152 of the Internal Revenue Code of
1986), of the owner of the mining claim or site; and
(2) a person controlled by, controlling, or under
common control with the owner of the mining claim
or site.
(o) REPEAL.—Section 10101 of the Omnibus Budget
Reconciliation Act of 1993 (107 Stat. 406; 30 U.S.C. 28g)
is repealed, effective with respect to assessment year com-
mencing after the enactment of this Act.
(p) PERIODIC REVIEW OF FEE STRUCTURE.—Begin-
ning in the year 2005 and at 10 year intervals thereafter,
the Secretary shall review the costs incurred by the Sec-
retary to administer mining claims for locatable minerals
under the general mining laws and the structure and level
of maintenance and location fees received by the Secretary
with respect to such claims. The Secretary shall determine
if the revenues from such fees is adequate to cover such
costs, taking inflation and other appropriate factors into
account. The Secretary shall submit the results of each
592
such review to the Congress, together with such legislative
recommendations as the Secretary deems appropriate.
PART 2—FEDERAL OIL AND GAS ROYALTIES
SEC. 9511. SHORT TITLE.
This part may be cited as the ‘‘Federal Oil and Gas
Royalty Simplification and Fairness Act of 1995’’.
SEC. 9512. DEFINITIONS.
(a) IN GENERAL.—Section 3 of the Federal Oil and
Gas Royalty Management Act of 1982 (30 U.S.C. 1701
et seq.) is amended—
(1) by amending paragraph (7) to read as fol-
lows:
‘‘(7) ‘lessee’ means any person to whom the
United States, an Indian tribe, or an Indian allottee
issues a lease or any person to whom operating
rights have been assigned;’’; and
(2) by striking ‘‘and’’ at the end of paragraph
(15), by striking the period at the end of paragraph
(16) and inserting a semicolon, and by adding at the
end the following:
‘‘(17) ‘adjustment’ means an amendment to a
previously filed report on an obligation, and any ad-
ditional payment or credit, if any, applicable thereto,
to rectify an underpayment or overpayment on a
lease;
593
‘‘(18) ‘administrative proceeding’ means any
agency process in which a demand, decision or order
issued by the Secretary is subject to appeal or has
been appealed;
‘‘(19) ‘assessment’ means any fee or charge lev-
ied or imposed by the Secretary or the United States
other than—
‘‘(A) the principal amount of any royalty,
minimum royalty, rental, bonus, net profit
share or proceed of sale;
‘‘(B) any interest; or
‘‘(C) any civil or criminal penalty;
‘‘(20) ‘commence’ means—
‘‘(A) with respect to a judicial proceeding,
the service of a complaint, petition, counter-
claim, crossclaim, or other pleading seeking af-
firmative relief or seeking credit or recoupment;
or
‘‘(B) with respect to a demand, the receipt
by the Secretary or a lessee of the demand;
‘‘(21) ‘credit’ means the application of an over-
payment (in whole or in part) against an obligation
which has become due to discharge, cancel or reduce
the obligation;
‘‘(22) ‘demand’ means—
594
‘‘(A) an order to pay issued by the Sec-
retary; or
‘‘(B) a separate written request by a lessee
which asserts an obligation due the lessee,
but does not mean any royalty or production report,
or any information contained therein, required by
the Secretary;
‘‘(23) ‘obligation’ means—
‘‘(A) any duty of the Secretary or the
United States—
‘‘(i) to take oil or gas royalty in kind;
or
‘‘(ii) to pay, refund, offset, or credit
monies including but not limited to—
‘‘(I) the principal amount of any
royalty, 
minimum 
royalty, 
rental,
bonus, net profit share or proceed of
sale; or
‘‘(II) any interest;
‘‘(B) any duty of a lessee—
‘‘(i) to deliver oil or gas royalty in
kind; or
‘‘(ii) to pay, offset or credit monies in-
cluding but not limited to—
595
‘‘(I) the principal amount of any
royalty, 
minimum 
royalty, 
rental,
bonus, net profit share or proceed of
sale;
‘‘(II) any interest;
‘‘(III) any penalty; or
‘‘(IV) any assessment,
which arises from or relates to any lease adminis-
tered by the Secretary for, or any mineral leasing
law related to, the exploration, production and devel-
opment of oil or gas on Federal lands or the Outer
Continental Shelf;
‘‘(24) ‘order to pay’ means a written order is-
sued by the Secretary or the United States which—
‘‘(A) asserts a definite and quantified obli-
gation; and
‘‘(B) specifically identifies the obligation by
lease, production month and amount of such
obligation ordered to be paid, as well as the rea-
son or reasons such obligation is claimed to be
due,
but such term does not include any other commu-
nication or action by or on behalf of the Secretary
or the United States;
596
‘‘(25) ‘overpayment’ means any payment by a
lessee in excess of an amount legally required to be
paid on an obligation and includes the portion of any
estimated payment for a production month that is in
excess of the royalties due for that month;
‘‘(26) ‘payment’ means satisfaction, in whole or
in part, of an obligation;
‘‘(27) ‘penalty’ means a statutorily authorized
civil fine levied or imposed by the Secretary or the
United States for a violation of this Act, any mineral
leasing law, or a term or provision of a lease admin-
istered by the Secretary;
‘‘(28) ‘refund’ means the return of an overpay-
ment by the Secretary or the United States by the
drawing of funds from the United States Treasury;
‘‘(29) ‘State concerned’ means, with respect to
a lease, a State which receives a portion of royalties
under this Act from such lease; and
‘‘(30) ‘underpayment’ means any payment or
nonpayment by a lessee that is less than the amount
legally required to be paid on an obligation.’’.
(b) LESSEE LIABILITY.—Section 102(a) of the Fed-
eral Oil and Gas Royalty Management Act of 1982 (30
U.S.C. 1712(a)) is amended to read as follows:
597
‘‘(a) A lessee who is required to make any royalty
or other payment under a lease or under the mineral leas-
ing laws, shall make such payments in the time and man-
ner as may be specified by the Secretary. A lessee may
designate a person to act on the lessee’s behalf and shall
notify the Secretary in writing of such designation. The
person to whom the United States issues a lease or the
person by whom operating rights are currently owned, but
not both, shall remain primarily liable for its obligations.’’.
SEC. 9513. LIMITATION PERIODS.
(a) IN GENERAL.—The Federal Oil and Gas Royalty
Management Act of 1982 (30 U.S.C. 1701 et seq.) is
amended by adding after section 114 the following new
section:
‘‘SEC. 115. LIMITATION PERIODS AND AGENCY ACTIONS.
‘‘(a) IN GENERAL.—A judicial proceeding or demand
which arises from, or relates to an obligation, shall be
commenced within six years from the date on which the
obligation becomes due and if not so commenced shall be
barred, except as otherwise provided by this section.
‘‘(b) OBLIGATION BECOMES DUE.—
‘‘(1) IN GENERAL.—For purposes of this Act,
an obligation becomes due when the right to enforce
the obligation is fixed.
598
‘‘(2) ROYALTY OBLIGATIONS.—The right to en-
force the royalty obligation for a production month
for a lease is fixed for purposes of this Act on the
last day of the calendar month following the month
in which oil or gas is produced.
‘‘(c) TOLLING OF LIMITATION PERIOD.—The run-
ning of the limitation period under subsection (a) shall
not be suspended, tolled, extended, or enlarged for any ob-
ligation for any reason by any action, including an action
by the Secretary or the United States, other than the fol-
lowing:
‘‘(1) TOLLING AGREEMENT.—A written agree-
ment executed during the limitation period between
the Secretary and a lessee which tolls the limitation
period for the amount of time during which the
agreement is in effect.
‘‘(2) SUBPOENA.—The issuance of a subpoena
in accordance with the provisions of section 107(c)
shall toll the limitation period with respect to the ob-
ligation which is the subject of a subpoena only for
the period beginning on the date the lessee receives
the subpoena and ending on the date on which (A)
the lessee has produced such subpoenaed records for
the subject obligation, (B) the Secretary receives
written notice that the subpoenaed records for the
599
subject obligation are not in existence or are not in
the lessee’s possession or control, or (C) a court has
determined in a final decision that such records are
not required to be produced, whichever occurs first.
‘‘(3) FRAUD OR CONCEALMENT.—Any fraud or
concealment by a lessee in an attempt to defeat or
evade an obligation in which case the limitation pe-
riod shall be tolled for the period of such fraud or
such concealment.
‘‘(4) TOLLING REQUEST.—A written tolling re-
quest from a lessee based upon the lessee’s represen-
tation that the lessee’s entitlement to an overpay-
ment has not been finally determined. The limitation
period shall be tolled pursuant to this paragraph
from the date the Secretary receives the tolling re-
quest until the earlier of the end of the requested
period or 12 months after the date the Secretary re-
ceives the tolling request, but is subject to successive
12-month renewals by the lessee made prior to the
expiration of the then applicable 12-month period.
The tolling request shall be sufficient if it identi-
fies—
‘‘(A) the person who made the potential
overpayment;
600
‘‘(B) the leases and production months in-
volved in the potential overpayment; and
‘‘(C) the reasons the lessee believes that it
may later be entitled to a refund of the over-
payment.
‘‘(5) ORDER
TO
PERFORM
A
RESTRUCTURED
ACCOUNTING.—The issuance of a notice under sec-
tion 107(d)(4) that the lessee has not adequately
performed a restructured accounting shall toll the
limitation period with respect to the obligation which
is the subject of the notice only for the period begin-
ning on the date the lessee receives the notice and
ending on the date on which (A) the Secretary re-
ceives written notice the accounting or other require-
ment has been performed, or (B) a court has deter-
mined in a final decision that the lessee is not re-
quired to perform the accounting, whichever occurs
first.
‘‘(d) TERMINATION OF LIMITATION PERIOD.—The
limitation period shall be terminated in the event—
‘‘(1) the Secretary has notified the lessee in
writing that a time period is closed to further audit;
or
‘‘(2) the Secretary and a lessee have so agreed
in writing.
601
‘‘(e) FINAL AGENCY ACTION.—
‘‘(1) 3-YEAR
PERIOD.—The Secretary shall
issue a final decision in any administrative proceed-
ing, including any administrative proceedings pend-
ing on the date of enactment of the Federal Oil and
Gas Royalty Simplification and Fairness Act of
1995, within three years from the date such pro-
ceeding was initiated or three years from the date of
such enactment, whichever is later. The three-year
period may be extended by any period of time agreed
upon in writing by the Secretary and the lessee.
‘‘(2) EFFECT
OF
FAILURE
TO
ISSUE
DECI-
SION.—
‘‘(A) IN
GENERAL.—If no such decision
has been issued by the Secretary within the
three-year period referred to in paragraph (1)—
‘‘(i) the Secretary shall be deemed to
have issued and granted a decision in favor
of the lessee or lessees as to any
nonmonetary obligation and any monetary
obligation the principal amount of which is
less than $2,500; and
‘‘(ii) the Secretary shall be deemed to
have issued a final decision in favor of the
Secretary, which decision shall be deemed
602
to affirm those issues for which the agency
rendered a decision prior to the end of
such period, as to any monetary obligation
the principal amount of which is $2,500 or
more, and the lessee shall have a right to
a de novo judicial review of such deemed
final decision.
‘‘(B) NO
PRECEDENTIAL
EFFECT
ON
OTHER
PROCEEDINGS.—Deemed 
decisions
under 
subparagraph 
(A) 
shall 
have 
no
precedential effect in any judicial or administra-
tive proceeding or for any other purpose.
‘‘(f) ADMINISTRATIVE SETTLEMENT.—During the
pendency of any administrative proceeding, the parties
shall hold at least one settlement consultation for the pur-
pose of discussing disputed matters between the parties.
For purposes of settlement, the Secretary may take such
action as is appropriate to compromise and settle a dis-
puted obligation, including interest and allowing offsetting
of obligations among leases. The Secretary and the State
concerned shall seek to resolve disputes with a lessee in
as expeditious a manner as possible, through settlement
negotiations and other alternative dispute resolution proc-
esses methods. If any dispute involving an obligation due
is not resolved by the end of the six-year period beginning
603
on the date the obligation became due, the amount of in-
terest otherwise payable with respect to the obligation
shall accrue after such six-year period at the rate—
‘‘(1) for purposes of section 111(h), reduced
each year thereafter by two additional percentage
points from the rate in effect under this subsection
for the previous year (but not less than zero); and
‘‘(2) for purposes of section 111(a), reduced
each year thereafter by one additional percentage
point from the rate in effect under this subsection
for the previous year (but not less than zero).
‘‘(g) LIMITATION ON CERTAIN ACTIONS.—When an
action on or enforcement of an obligation under the min-
eral leasing laws is barred under this section—
‘‘(1) no other or further action regarding that
obligation, including (but not limited to) the issu-
ance of any order, request, demand or other commu-
nication seeking any document, accounting, deter-
mination, calculation, recalculation, payment, prin-
cipal, interest, assessment, or penalty or the initi-
ation, pursuit or completion of an audit with respect
to that obligation may be taken; and
‘‘(2) no other equitable or legal remedy, wheth-
er under statute or common law, with respect to an
604
action on or an enforcement of said obligation may
be pursued.
‘‘(h) JUDICIAL REVIEW.—In the event a demand sub-
ject to this section is timely commenced, a judicial pro-
ceeding challenging the final agency action with respect
to such demand shall be deemed timely so long as such
judicial proceeding is commenced within 180 days from
receipt of notice by the lessee of the final agency action.
‘‘(i) IMPLEMENTATION OF FINAL DECISION.—In the
event a judicial proceeding or demand subject to this sec-
tion is timely commenced and thereafter the limitation pe-
riod in this section lapses during the pendency of such
proceeding, any party to such proceeding shall not be
barred from taking such action as is required or necessary
to implement a final unappealable judicial or administra-
tive decision, including any action required or necessary
to implement such decision by the recovery or recoupment
of an underpayment or overpayment by means of refund
or credit.
‘‘(j) STAY OF PAYMENT OBLIGATION PENDING RE-
VIEW.—Any party ordered by the Secretary or the United
States to pay any obligation (other than an assessment)
shall be entitled to a stay of such payment without bond
or other surety instrument pending an administrative or
judicial proceeding if the party periodically demonstrates
605
to the satisfaction of the Secretary that such party is fi-
nancially solvent or otherwise able to pay the obligation.
In the event the party is not able to so demonstrate, the
Secretary may require a bond or other surety instrument
satisfactory to cover the obligation. Any party ordered by
the Secretary to pay an assessment shall be entitled to
a stay without bond or other surety instrument.
‘‘(k) INAPPLICABILITY OF THE OTHER STATUTES OF
LIMITATION.—The limitations set forth in sections 2401,
2415, 2416, and 2462 of title 28, United States Code,
section 42 of the Mineral Leasing Act (30 U.S.C. 226-
2) and section 3716 of title 31, United States Code, shall
not apply to any obligation to which this Act applies.’’.
(b) SUBPOENA.—Section 107 of the Federal Oil and
Gas Royalty Management Act of 1982 (30 U.S.C. 1717)
is amended by adding at the end the following:
‘‘(c) RULES REGARDING ISSUANCE OF SUBPOENA
RELATING TO REPORTING AND PAYMENT OF AN OBLIGA-
TION DUE.—
‘‘(1) IN GENERAL.—A subpoena which requires
a lessee to produce records necessary to determine
the proper reporting and payment of an obligation
due the Secretary may be issued under this section
only by an Assistant Secretary of the Interior and
an acting Assistant Secretary of the Interior who is
606
a schedule C employee (as defined by section
213.3301 of title 5, Code of Federal Regulations)
and may not be delegated.
‘‘(2) PRIOR WRITTEN REQUEST REQUIRED.—A
subpoena described in paragraph (1) may only be is-
sued against a lessee during the limitation period
provided in section 115 and only after the Secretary
has in writing requested the records from the lessee
related to the obligation which is the subject of the
subpoena and has determined that—
‘‘(A) the lessee has failed to respond within
a reasonable period of time to the Secretary’s
written request for such records necessary for
an audit, investigation or other inquiry made in
accordance with the Secretary’s responsibilities
under this Act;
‘‘(B) the lessee has in writing denied the
Secretary’s written request to produce such
records in the lessee’s possession or control nec-
essary for an audit, investigation or other in-
quiry made in accordance with the Secretary’s
responsibilities under this Act; or
‘‘(C) the lessee has unreasonably delayed
in producing records necessary for an audit, in-
vestigation or other inquiry made in accordance
607
with the Secretary’s responsibilities under this
Act after the Secretary’s written request.
‘‘(3) REASONABLE
PERIOD
FOR
COMPLIANCE
WITH WRITTEN REQUEST.—In seeking records, the
Secretary shall afford the lessee a reasonable period
of time after a written request by the Secretary in
which to provide such records prior to the issuance
of any subpoena.’’.
(c) RESTRUCTURED ACCOUNTING.—Section 107 of
the Federal Oil and Gas Royalty Management Act of 1982
(30 U.S.C. 1717), as amended by subsection (b) of this
section, is amended by adding at the end the following:
‘‘(d) RESTRUCTURED ACCOUNTING.—
‘‘(1) IN GENERAL.—The Secretary shall issue
an order to perform a restructured accounting when
the Secretary determines during an in-depth audit of
a lessee that the lessee should recalculate royalty
due on an obligation based upon the Secretary’s
finding that the lessee has made identified under-
payments or overpayments which are demonstrated
by the Secretary to be based upon repeated, systemic
reporting errors for a significant number of leases or
a single lease for a significant number of reporting
months with the same type of error which con-
stitutes a pattern of violations and which are likely
608
to result in either significant underpayments or over-
payments.
‘‘(2) DELEGATION.—The power of the Sec-
retary to issue an order to perform a restructured
accounting may not be delegated below the most
senior career professional position having respon-
sibility for the royalty management program, which
position is currently designated as the ‘Associate Di-
rector for Royalty Management’. An order to per-
form a restructured accounting shall—
‘‘(A) be issued within a reasonable period
of time from when the audit identifies the sys-
temic, reporting errors;
‘‘(B) specify the reasons and factual bases
for such order; and
‘‘(C) be specifically identified as an ‘order
to perform a restructured accounting’.
‘‘(3) ORDER TO PERFORM.—An order to per-
form a restructured accounting shall not include any
other communication or action by or on behalf of the
Secretary or the United States.
‘‘(4) NOTICE.—If a lessee fails to adequately
perform a restructured accounting pursuant to this
subsection, a notice shall be issued to the lessee that
the restructured accounting has not been adequately
609
performed. Such notice may be issued under this
section only by an Assistant Secretary of the Inte-
rior or an acting Assistant Secretary of the Interior
who is a schedule C employee (as defined by section
213.3301 of title 5, Code of Federal Regulations)
and may not be delegated.’’.
(d) STATE SUITS.—Section 204 of the Federal Oil
and Gas Royalty Management Act of 1982 (30 U.S.C.
1751) is amended by adding at the end the following:
‘‘(d) With respect to an obligation, a State bringing
an action under this section shall enjoy no greater rights
than the Secretary enjoys under this Act.’’.
(e) CLERICAL AMENDMENT.—The table of contents
in section 1 of such Act (30 U.S.C. 1701) is amended by
adding after the item relating to section 114 the following
new item:
‘‘Sec. 115. Limitation periods and agency actions.’’.
SEC. 9514. ADJUSTMENT AND REFUNDS.
(a) IN GENERAL.—The Federal Oil and Gas Royalty
Management Act of 1982 (30 U.S.C. 1701 et seq.) is
amended by adding after section 111 the following new
section:
‘‘SEC. 111A. ADJUSTMENTS AND REFUNDS.
‘‘(a) ADJUSTMENTS.—
‘‘(1) If, during the adjustment period, a lessee
determines that an adjustment or refund request is
610
necessary to correct an underpayment or overpay-
ment of an obligation, the lessee shall make such ad-
justment or request a refund within a reasonable pe-
riod of time and only during the adjustment period.
The filing of a royalty report which reflects the
underpayment or overpayment of an obligation shall
constitute prior written notice to the Secretary of an
adjustment.
‘‘(2)(A) For any adjustment, the lessee shall
calculate and report the interest due attributable to
such adjustment at the same time the lessee adjusts
the principal amount of the subject obligation, ex-
cept as provided by subparagraph (B).
‘‘(B) In the case of a lessee on whom the Sec-
retary determines that subparagraph (A) would im-
pose a hardship, the Secretary shall calculate the in-
terest due and notify the lessee within a reasonable
time of the amount of interest due, unless such les-
see elects to calculate and report interest in accord-
ance with subparagraph (A).
‘‘(3) An adjustment or a request for a refund
for an obligation may be made after the adjustment
period only upon written notice to and approval by
the Secretary during an audit of the period which
includes the production month for which the adjust-
611
ment is being made. If an overpayment is identified
during an audit, then the Secretary shall allow a
credit or refund in the amount of the overpayment.
‘‘(4) For purposes of this section, the adjust-
ment period for any obligation shall be the five-year
period following the date on which an obligation be-
came due. The adjustment period shall be sus-
pended, tolled, extended, enlarged, or terminated by
the same actions as the limitation period in section
115.
‘‘(b) REFUNDS.—
‘‘(1) IN GENERAL.—A request for refund is suf-
ficient if it—
‘‘(A) is made in writing to the Secretary
and, for purposes of section 115, is specifically
identified as a demand;
‘‘(B) identifies the person entitled to such
refund;
‘‘(C) provides the Secretary information
that reasonably enables the Secretary to iden-
tify the overpayment for which such refund is
sought; and
‘‘(D) provides the reasons why the pay-
ment was an overpayment.