Royalty Resiliency Act

Bill: 118-hr-7377
Sponsor: full_name: Rep. Hunt, Wesley [R-TX-38]
Introduced: 2024-02-15
Policy area: Energy
Subjects: Business expenses

Business records

Energy revenues and royalties

Mining

Oil and gas
Latest action: action_date: 2024-09-20
text: Became Public Law No: 118-81.

Summaries:
action_date: 2024-02-15
action_desc: Introduced in House
text: <p><strong>Royalty Resiliency Act</strong></p><p>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.</p><p>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.</p><p>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.</p><!--tinycomments|2.1|data:application/json;base64,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-->

action_date: 2024-06-27
action_desc: Reported to House
text: <p><strong>Royalty Resiliency Act</strong></p><p>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.</p><p>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.</p><p>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,&nbsp;Interior must waive interest due on royalty obligations until the end of the third month.&nbsp;&nbsp;&nbsp;</p><!--tinycomments|2.1|data:application/json;base64,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-->

action_date: 2024-07-22
action_desc: Passed House
text: <p><strong>Royalty Resiliency Act</strong></p><p>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.</p><p>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.</p><p>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,&nbsp;Interior must waive interest due on royalty obligations until the end of the third month.&nbsp;&nbsp;&nbsp;</p><!--tinycomments|2.1|data:application/json;base64,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-->

action_date: 2024-09-11
action_desc: Passed Senate
text: <p><strong>Royalty Resiliency Act</strong></p><p>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.</p><p>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.</p><p>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,&nbsp;Interior must waive interest due on royalty obligations until the end of the third month.&nbsp;&nbsp;&nbsp;</p><!--tinycomments|2.1|data:application/json;base64,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-->

action_date: 2024-09-20
action_desc: Public Law
text: <p><strong>Royalty Resiliency Act</strong></p><p>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.</p><p>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.</p><p>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,&nbsp;Interior must waive interest due on royalty obligations until the end of the third month.&nbsp;&nbsp;&nbsp;</p><!--tinycomments|2.1|data:application/json;base64,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-->

tv_txt: I One Hundred Eighteenth Congress of the United States of America At the Second Session Begun and held at the City of Washington on Wednesday, the third day of January, two thousand and twenty-four H. R. 7377 AN ACT To amend the Federal Oil and Gas Royalty Management Act of 1982 to improve the management of royalties from oil and gas leases, and for other purposes.

1. Short title This Act may be cited as the Royalty Resiliency Act . 2. Determination of allocations of production for units and communitization agreements Section 111(j) of the Federal Oil and Gas Royalty Management Act of 1982 ( 30 U.S.C. 1721(j) ), as amended by the Federal Oil and Gas Royalty Simplification and Fairness Act of 1996 ( Public Law 104–185 ), is amended to read as follows: (j) The Secretary shall issue all determinations of allocations of production for units and communitization agreements within 120 days of a request for determination. Until the Secretary issues the determination, the lessee or its designee of a lease in a unit or communitization agreement shall report and pay royalties on oil and gas production for each production month in accordance with the terms of the proposed allocation of production for the unit or communitization agreement. After the Secretary issues the determination, the lessee or its designee shall, as necessary, correct such reports and the amount of royalties paid on oil and gas production under the unit or communitization agreement by not later than the end of the third month following the month in which the lessee or its designee receives the determination from the Secretary. Subject to the full and timely monthly payment of royalties to all parties in accordance with the terms of the proposed allocation of production for the unit or communitization agreement, the Secretary shall waive interest due on obligations subject to the determination until the end of the third month following the month in which the lessee or its designee receives the determination from the Secretary. This subsection shall not apply to unit or communization agreements containing Indian lands. .

Speaker of the House of Representatives. Vice President of the United States and President of the Senate.

tv_txt: II 118th CONGRESS 2d Session H. R. 7377 IN THE SENATE OF THE UNITED STATES July 23, 2024 Received AN ACT To amend the Federal Oil and Gas Royalty Management Act of 1982 to improve the management of royalties from oil and gas leases, and for other purposes.

1. Short title This Act may be cited as the Royalty Resiliency Act . 2. Determination of allocations of production for units and communitization agreements Section 111(j) of the Federal Oil and Gas Royalty Management Act of 1982 ( 30 U.S.C. 1721(j) ), as amended by the Federal Oil and Gas Royalty Simplification and Fairness Act of 1996 ( Public Law 104–185 ), is amended to read as follows: (j) The Secretary shall issue all determinations of allocations of production for units and communitization agreements within 120 days of a request for determination. Until the Secretary issues the determination, the lessee or its designee of a lease in a unit or communitization agreement shall report and pay royalties on oil and gas production for each production month in accordance with the terms of the proposed allocation of production for the unit or communitization agreement. After the Secretary issues the determination, the lessee or its designee shall, as necessary, correct such reports and the amount of royalties paid on oil and gas production under the unit or communitization agreement by not later than the end of the third month following the month in which the lessee or its designee receives the determination from the Secretary. Subject to the full and timely monthly payment of royalties to all parties in accordance with the terms of the proposed allocation of production for the unit or communitization agreement, the Secretary shall waive interest due on obligations subject to the determination until the end of the third month following the month in which the lessee or its designee receives the determination from the Secretary. This subsection shall not apply to unit or communization agreements containing Indian lands. .

Passed the House of Representatives July 22, 2024. Kevin F. McCumber, Clerk.

tv_txt: I 118th CONGRESS 2d Session H. R. 7377 IN THE HOUSE OF REPRESENTATIVES AN ACT To amend the Federal Oil and Gas Royalty Management Act of 1982 to improve the management of royalties from oil and gas leases, and for other purposes.

1. Short title This Act may be cited as the Royalty Resiliency Act . 2. Determination of allocations of production for units and communitization agreements Section 111(j) of the Federal Oil and Gas Royalty Management Act of 1982 ( 30 U.S.C. 1721(j) ), as amended by the Federal Oil and Gas Royalty Simplification and Fairness Act of 1996 ( Public Law 104–185 ), is amended to read as follows: (j) The Secretary shall issue all determinations of allocations of production for units and communitization agreements within 120 days of a request for determination. Until the Secretary issues the determination, the lessee or its designee of a lease in a unit or communitization agreement shall report and pay royalties on oil and gas production for each production month in accordance with the terms of the proposed allocation of production for the unit or communitization agreement. After the Secretary issues the determination, the lessee or its designee shall, as necessary, correct such reports and the amount of royalties paid on oil and gas production under the unit or communitization agreement by not later than the end of the third month following the month in which the lessee or its designee receives the determination from the Secretary. Subject to the full and timely monthly payment of royalties to all parties in accordance with the terms of the proposed allocation of production for the unit or communitization agreement, the Secretary shall waive interest due on obligations subject to the determination until the end of the third month following the month in which the lessee or its designee receives the determination from the Secretary. This subsection shall not apply to unit or communization agreements containing Indian lands. .

Passed the House of Representatives July 22, 2024. Kevin F. McCumber, Clerk.

tv_txt: IB Union Calendar No. 464 118th CONGRESS 2d Session H. R. 7377 [Report No. 118–562] IN THE HOUSE OF REPRESENTATIVES February 15, 2024 Mr. Hunt (for himself, Mr. Nehls , Mr. Weber of Texas , and Mr. Babin ) introduced the following bill; which was referred to the Committee on Natural Resources June 27, 2024 Additional sponsors: Ms. Hageman, Mr. Self, and Mr. Graves of Louisiana June 27, 2024 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed Strike out all after the enacting clause and insert the part printed in italic For text of introduced bill, see copy of bill as introduced on February 15, 2024 A BILL To amend the Federal Oil and Gas Royalty Management Act of 1982 to improve the management of royalties from oil and gas leases, and for other purposes.

1. Short title This Act may be cited as the Royalty Resiliency Act . 2. Determination of allocations of production for units and communitization agreements Section 111(j) of the Federal Oil and Gas Royalty Management Act of 1982 ( 30 U.S.C. 1721(j) ), as amended by the Federal Oil and Gas Royalty Simplification and Fairness Act of 1996 ( Public Law 104–185 ), is amended to read as follows: (j) The Secretary shall issue all determinations of allocations of production for units and communitization agreements within 120 days of a request for determination. Until the Secretary issues the determination, the lessee or its designee of a lease in a unit or communitization agreement shall report and pay royalties on oil and gas production for each production month in accordance with the terms of the proposed allocation of production for the unit or communitization agreement. After the Secretary issues the determination, the lessee or its designee shall, as necessary, correct such reports and the amount of royalties paid on oil and gas production under the unit or communitization agreement by not later than the end of the third month following the month in which the lessee or its designee receives the determination from the Secretary. Subject to the full and timely monthly payment of royalties to all parties in accordance with the terms of the proposed allocation of production for the unit or communitization agreement, the Secretary shall waive interest due on obligations subject to the determination until the end of the third month following the month in which the lessee or its designee receives the determination from the Secretary. This subsection shall not apply to unit or communization agreements containing Indian lands. .

June 27, 2024 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

tv_txt: I 118th CONGRESS 2d Session H. R. 7377 IN THE HOUSE OF REPRESENTATIVES February 15, 2024 Mr. Hunt (for himself, Mr. Nehls , Mr. Weber of Texas , and Mr. Babin ) introduced the following bill; which was referred to the Committee on Natural Resources A BILL To amend the Federal Oil and Gas Royalty Management Act of 1982 to improve the management of royalties from oil and gas leases, and for other purposes.

1. Short title This Act may be cited as the Royalty Resiliency Act . 2. Determination of allocations of production for units and communitization agreements Section 111(j) of the Federal Oil and Gas Royalty Management Act of 1982 ( 30 U.S.C. 1721(j) ) is amended to read as follows: (j) The Secretary shall issue all determinations of allocations of production for units and communitization agreements within 120 days of a request for determination. Until the Secretary issues the determination, the lessee or its designee of a lease in a unit or communitization agreement shall report and pay royalties on oil and gas production for each production month in accordance with the terms of the proposed allocation of production for the unit or communitization agreement. After the Secretary issues the determination, the lessee or its designee shall, as necessary, correct such reports and the amount of royalties paid on oil and gas production under the unit or communitization agreement by not later than the end of the third month following the month in which the lessee or its designee receives the determination from the Secretary. The Secretary shall waive interest due on obligations subject to the determination until the end of the third month following the month in which the lessee or its designee receives the determination from the Secretary. .