Royalty Resiliency Act

Bill: 118-hr-7377
Sponsor: Rep. Hunt, Wesley [R-TX-38]
Introduced: 2024-02-15 in the House
Policy area: Energy
Subjects: Business expenses
Business records
Energy revenues and royalties
Mining
Oil and gas

Summary:
action_date: 2024-02-15
text: 

Royalty Resiliency Act

This bill modifies the process under which oil and gas leaseholders who have entered into a joint drilling agreement (i.e., a communitization agreement or a unit agreement) to drill wells on leased land pay royalties to the Department of the Interior under the Federal Oil and Gas Royalty Management Act of 1982.

Under current law, Interior must issue a determination of allocations of royalty payments for oil and gas production under a joint agreement within 120 days of a request for determination. Generally, the first leaseholder to drill must pay any royalties due to Interior for all oil and gas production on the land subject to the agreement until Interior determines the royalty allocations of each leaseholder. If Interior fails to issue the determination by that deadline, then it must waive interest due on royalty obligations until the end of the month following the month in which the determination was made.

Under the bill, a leaseholder must pay royalties on oil and gas production based on the lessee's proposed allocation of production under the joint agreement until Interior issues a determination of royalty allocations. After Interior issues the determination, then the lessee must correct, if necessary, the amount of royalties paid by the end of the third month following the month in which the lessee received the determination from Interior. The bill also directs Interior to waive interest due on royalty obligations until the end of the third month.
 
action_date: 2024-06-27
text: 

Royalty Resiliency Act

This bill modifies the process under which oil and gas leaseholders who have entered into certain joint drilling agreements (i.e., a communitization agreement or a unit agreement, except agreements containing Indian lands) to drill wells on leased land pay royalties to the Department of the Interior under the Federal Oil and Gas Royalty Management Act of 1982.

Under current law, Interior must issue a determination of allocations of royalty payments for oil and gas production under a joint agreement within 120 days of a request for determination. Generally, the first leaseholder to drill must pay any royalties due to Interior for all oil and gas production on the land subject to the agreement until Interior determines the royalty allocations of each leaseholder. If Interior fails to issue the determination by that deadline, then it must waive interest due on royalty obligations until the end of the month following the month in which the determination was made.

Under the bill, a leaseholder must pay royalties on oil and gas production based on the lessee's proposed allocation of production under the joint agreement until Interior issues a determination of royalty allocations. After Interior issues the determination, then the lessee must correct, if necessary, the amount of royalties paid by the end of the third month following the month in which the lessee received the determination from Interior. Subject to the full and timely payment of monthly royalties in accordance with the agreement, Interior must waive interest due on royalty obligations until the end of the third month. 
 
action_date: 2024-07-22
text: 

Royalty Resiliency Act

This bill modifies the process under which oil and gas leaseholders who have entered into certain joint drilling agreements (i.e., a communitization agreement or a unit agreement, except agreements containing Indian lands) to drill wells on leased land pay royalties to the Department of the Interior under the Federal Oil and Gas Royalty Management Act of 1982.

Under current law, Interior must issue a determination of allocations of royalty payments for oil and gas production under a joint agreement within 120 days of a request for determination. Generally, the first leaseholder to drill must pay any royalties due to Interior for all oil and gas production on the land subject to the agreement until Interior determines the royalty allocations of each leaseholder. If Interior fails to issue the determination by that deadline, then it must waive interest due on royalty obligations until the end of the month following the month in which the determination was made.

Under the bill, a leaseholder must pay royalties on oil and gas production based on the lessee's proposed allocation of production under the joint agreement until Interior issues a determination of royalty allocations. After Interior issues the determination, then the lessee must correct, if necessary, the amount of royalties paid by the end of the third month following the month in which the lessee received the determination from Interior. Subject to the full and timely payment of monthly royalties in accordance with the agreement, Interior must waive interest due on royalty obligations until the end of the third month. 
 
action_date: 2024-09-11
text: 

Royalty Resiliency Act

This bill modifies the process under which oil and gas leaseholders who have entered into certain joint drilling agreements (i.e., a communitization agreement or a unit agreement, except agreements containing Indian lands) to drill wells on leased land pay royalties to the Department of the Interior under the Federal Oil and Gas Royalty Management Act of 1982.

Under current law, Interior must issue a determination of allocations of royalty payments for oil and gas production under a joint agreement within 120 days of a request for determination. Generally, the first leaseholder to drill must pay any royalties due to Interior for all oil and gas production on the land subject to the agreement until Interior determines the royalty allocations of each leaseholder. If Interior fails to issue the determination by that deadline, then it must waive interest due on royalty obligations until the end of the month following the month in which the determination was made.

Under the bill, a leaseholder must pay royalties on oil and gas production based on the lessee's proposed allocation of production under the joint agreement until Interior issues a determination of royalty allocations. After Interior issues the determination, then the lessee must correct, if necessary, the amount of royalties paid by the end of the third month following the month in which the lessee received the determination from Interior. Subject to the full and timely payment of monthly royalties in accordance with the agreement, Interior must waive interest due on royalty obligations until the end of the third month. 
 
action_date: 2024-09-20
text: 

Royalty Resiliency Act

This act modifies the process under which oil and gas leaseholders who have entered into certain joint drilling agreements (i.e., a communitization agreement or a unit agreement, except agreements containing Indian lands) to drill wells on leased land pay royalties to the Department of the Interior under the Federal Oil and Gas Royalty Management Act of 1982.

Under current law, Interior must issue a determination of allocations of royalty payments for oil and gas production under a joint agreement within 120 days of a request for determination. Generally, the first leaseholder to drill must pay any royalties due to Interior for all oil and gas production on the land subject to the agreement until Interior determines the royalty allocations of each leaseholder. If Interior fails to issue the determination by that deadline, then it must waive interest due on royalty obligations until the end of the month following the month in which the determination was made.

Under the act, a leaseholder must pay royalties on oil and gas production based on the lessee's proposed allocation of production under the joint agreement until Interior issues a determination of royalty allocations. After Interior issues the determination, then the lessee must correct, if necessary, the amount of royalties paid by the end of the third month following the month in which the lessee received the determination from Interior. Subject to the full and timely payment of monthly royalties in accordance with the agreement, Interior must waive interest due on royalty obligations until the end of the third month. 
 

Legislative actions:
action_date: 2024-09-20
text: Became Public Law No: 118-81.
action_date: 2024-09-20
text: Became Public Law No: 118-81.
action_date: 2024-09-20
text: Signed by President.
action_date: 2024-09-20
text: Signed by President.
action_date: 2024-09-18
text: Presented to President.
action_date: 2024-09-18
text: Presented to President.
action_date: 2024-09-12
text: Message on Senate action sent to the House.
action_date: 2024-09-11
text: Passed Senate without amendment by Unanimous Consent. (consideration: CR S6003)
action_date: 2024-09-11
text: Passed/agreed to in Senate: Passed Senate without amendment by Unanimous Consent.
action_date: 2024-07-23
text: Received in the Senate, read twice.
action_date: 2024-07-22
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2024-07-22
text: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H4650)
action_date: 2024-07-22
text: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H4650)
action_date: 2024-07-22
text: DEBATE - The House proceeded with forty minutes of debate on H.R. 7377.
action_date: 2024-07-22
text: Considered under suspension of the rules. (consideration: CR H4650-4651)
action_date: 2024-07-22
text: Mr. Westerman moved to suspend the rules and pass the bill, as amended.
action_date: 2024-06-27
text: Placed on the Union Calendar, Calendar No. 464.
action_date: 2024-06-27
text: Reported (Amended) by the Committee on Natural Resources. H. Rept. 118-562.
action_date: 2024-06-27
text: Reported (Amended) by the Committee on Natural Resources. H. Rept. 118-562.
action_date: 2024-04-16
text: Ordered to be Reported (Amended) by Unanimous Consent.
action_date: 2024-04-16
text: Committee Consideration and Mark-up Session Held
action_date: 2024-04-16
text: Subcommittee on Energy and Mineral Resources Discharged
action_date: 2024-03-06
text: Subcommittee Hearings Held
action_date: 2024-03-04
text: Referred to the Subcommittee on Energy and Mineral Resources.
action_date: 2024-02-15
text: Referred to the House Committee on Natural Resources.
action_date: 2024-02-15
text: Introduced in House
action_date: 2024-02-15
text: Introduced in House

Enacted as: number: 118-81