Federal Oil and Gas Royalty Simplification and Fairness Act of 1996
PL 104-185 (H.R.1975), enacted 08/13/1996

110 STAT. 1700 
PUBLIC LAW 104-185—AUG. 13, 1996 
Public Law 104-185 
104th Congress 
An Act 
Aug. 13, 1996 
[H.R. 1975] 
Federal Oil and 
Gas Royalty 
Simplification 
and Fairness Act 
of 1996. 
30 u s e 1701 
note. 
30 u s e 1702. 
To improve the management of royalties from Federal and Outer Continental Shelf 
oil and gas leases, and for other purposes. 
Be it enacted by the Senate and House of Representatives 
of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the "Federal Oil and Gas Royalty 
Simplification and Fairness Act of 1996". 
SEC. 2. DEFINITIONS. 
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 follows: 
"(7) 'lessee' means any person to whom the United States 
issues an oil and gas lease or any person to whom operating 
rights in a lease 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 additional pajonent or 
credit, if any, applicable thereto, to rectify an underpajrment 
or overpayment on an obligation; 
"(18) 'administrative proceeding' means any Department 
of the Interior agency process in which a demand, decision 
or order issued by the Secretary or a delegated State is subject 
to appeal or has been appealed; 
"(19) 'assessment' means any fee or charge levied or 
imposed by the Secretary or a delegated State 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 pensdty; 
"(20) 'commence' means— 
"(A) with respect to a judicial proceeding, the service 
of a complaint, petition, counterclaim, cross claim, or other 
pleading seeking affirmative relief or seeking credit or 
recoupment: Provided, That if the Secretary commences 
a judicial proceeding against a designee, the Secretary 
shall give notice of that commencement to the lessee who 
designated the designee, but the Secretary is not required 
to give notice to other lessees who may be liable pursuant 
to section 102(a) of this Act, for the obligation that is 
the subject of the judicial proceeding; or 
PUBLIC LAW 104-185—AUG. 13, 1996 
110 STAT. 1701 
"(B) with respect to a demand, the receipt by the 
Secretary or a delegated State or a lessee or its designee 
(with written notice to the lessee who designated the des-
ignee) of the demand; 
"(21) 'credit' means the application of an overpayment (in 
whole or in part) against an obligation which has become due 
to discharge, cancel or reduce the obligation; 
"(22) 'delegated State' means a State which, pursuant to 
an agreement or agreements under section 205 of this Act, 
performs authorities, duties, responsibilities, or activities of 
the Secretary; 
"(23) 'demand' means— 
"(A) an order to pay issued by the Secretary or the 
applicable delegated State to a lessee or its designee (with 
written notice to the lessee who designated the designee) 
that has a reasonable basis to conclude that the obligation 
in the amount of the demand is due and owing; or 
"(B) a separate written request by a lessee or its des-
ignee which asserts an obligation due the lessee or its 
designee that provides a reasonable basis to conclude that 
the obligation in the amount of the demand is due and 
owing, but does not mean any royalty or production report, 
or any information contained therein, required by the Sec-
retary or a delegated State; 
"(24) 'designee' means the person designated by a lessee 
pursuant to section 102(a) of this Act, with such written des-
ignation effective on the date such designation is received by 
the Secretary and remaining in effect until the Secretary 
receives notice in writing that the designation is modified or 
terminated; 
"(25) 'obligation' means— 
"(A) any duty of the Secretary or, if applicable, a dele-
gated State— 
"(i) to take oil or gas royalty in kind; or 
"(ii) to pay, refund, offset, or credit monies includ-
ing (but not limited to)— 
"(I) the principal amount of any royalty, mini-
mum royalty, rental, bonus, net profit share or 
proceed of sale; or 
"(II) any interest; and 
"(B) any duty of a lessee or its designee (subject to 
the provision of section 102(a) of this Act)— 
"(i) to deliver oil or gas royalty in kind; or 
"(ii) to pay, offset or credit monies including (but 
not limited to)— 
"(I) the principal amount of any royalty, mini-
mum 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 administered 
by the Secretary for, or any mineral leasing law related 
to, the exploration, production and development of oil 
or gas on Federal lands or the Outer Continental Shelf; 
"(26) 'order to pay' means a written order issued by the 
Secretary or the applicable delegated State to a lessee or its 
110 STAT. 1702 
PUBLIC LAW 104-185—AUG. 13, 1996 
designee (with notice to the lessee who designated the designee) 
which— 
"(A) asserts a specific, definite, and quantified obliga-
tion claimed to be due, and 
"(B) specifically identifies the obligation by lease, 
production month and monetary amount of such obligation 
claimed to be due and ordered to be paid, as well as 
the reason or reasons such obligation is claimed to be 
due, but such term does not include any other communica-
tion or action by or on behalf of the Secretary or a delegated 
State; 
"(27) 'overpayment' means any pajonent by a lessee or 
its designee in excess of an amount legally required to be 
paid on an obligation and includes the portion of any estimated 
pa5rment for a production month that is in excess of the royalties 
due for that month; 
"(28) 'pa3mient' means satisfaction, in whole or in part, 
of an obligation; 
"(29) 'penalty* means a statutorily authorized civil fine 
levied or imposed for a violation of this Act, any mineral leasing 
law, or a term or provision of a lease administered by the 
Secretary; 
"(30) 'refund' means the return of an overpayment; 
"(31) 'State concerned' means, with respect to a lease, a 
State which receives a portion of royalties or other payments 
under the mineral leasing laws from such lease; 
"(32) 'underpayment' means any pajonent or nonpajrment 
by a lessee or its designee that is less than the amount legally 
required to be paid on an obligation; and 
"(33) 'United States' means the United States Grovernment 
and any department, agency, or instrumentality thereof, the 
several States, the District of Columbia, and the territories 
ofthe United States.". 
SEC. 
3
. 
DELEGATION OF ROYALTY COLLECTIONS AND RELATED 
ACTIVITIES. 
(a) GENERAL AUTHORITY.—Section 205 of the Federal Oil and 
Gas Royalty Management Act of 1982 (30 U.S.C. 1735) is amended 
to read as follows: 
30 use 1735. 
«SEC. 205. DELEGATION OF ROYALTY COLLECTIONS AND RELATED 
ACTIVITIES. 
"(a) Upon written request of any State, the Secretary is 
authorized to delegate, in accordance with the provisions of 
this section, all or part of the authorities and responsibilities 
ofthe Secretary under this Act to: 
"(1) conduct inspections, audits, and investigations; 
"(2) receive and process production and financial reports; 
"(3) correct erroneous report data; 
"(4) perform automated verification; and 
"(5) issue demands, subpoenas, and orders to perform 
restructured accounting, for royalty management enforcement 
purposes, 
to any State with respect to all Federal land within the State. 
"(b) After notice and opportunity for a hearing, the Secretary 
is authorized to delegate such authorities and responsibilities 
granted under this section as the State has requested, if the Sec-
retary finds that— 
PUBLIC LAW 104-185—AUG. 13, 1996 
110 STAT. 1703 
"(1) it is likely that the State will provide adequate 
resources to achieve the purposes of this Act; 
"(2) the State has demonstrated that it will effectively 
and faithfully administer the rules and regulations of the Sec-
retary under this Act in accordance with the requirements 
of subsections (c) and (d) of this section; 
"(3) such delegation will not create an unreasonable burden 
on any lessee; 
"(4) the State agrees to adopt standardized reporting proce-
dures prescribed by the Secretary for royalty and production 
accounting purposes, unless the State and all affected parties 
(including the Secretary) otherwise agree; 
"(5) the State agrees to follow guid adhere to regulations 
and guidelines issued by the Secretary pursuant to the mineral 
leasing laws regarding valuation of production; and 
"(6) where necessary for a State to have authority to carry 
out and enforce a delegated activity, the State agrees to enact 
such laws and promulgate such regulations as are consistent 
with relevant Federal laws and regulations 
with respect to the Federal lands within the State. 
"(c) After notice and opportunity for hearing, the Secretary 
shall issue a ruling as to the consistency of a State's proposal 
with the provisions of this section and regulations under subsection 
(d) within 90 days after submission of such proposal. In any unfavor-
able ruling, the Secretary shall set forth the reasons therefor and 
state whether the Secretary will agree to delegate to the State 
if the State meets the conditions set forth in such ruling. 
"(d) After consultation with State authorities, the Secretary Regulations, 
shall by rule promulgate, within 12 months gifter the date of enact-
ment of this section, standards and regulations pertaining to the 
authorities and responsibilities to be delegated under subsection 
(a), including standards and regulations pertaining to— 
"(1) audits to be performed; 
"(2) records and accounts to be maintained; 
"(3) reporting procedures to be required by States under 
this section; 
"(4) receipt and processing of production and financial 
reports; 
"(5) correction of erroneous report data; 
"(6) performance of automated verification; 
"(7) issuance of standards and guidelines in order to avoid 
duplication of effort; 
"(8) transmission of report data to the Secretary; and 
"(9) issuance of demands, subpoenas, and orders to perform 
restructured accounting, for royalty management enforcement 
purposes. 
Such standards and regulations shall be designed to provide reason-
able assurance that a uniform and effective royalty management 
system will prevail among the States. The records and accounts 
under paragraph (2) shall be sufficient to allow the Secretary to 
monitor the performance of any State under this section. 
"(e) If, after notice and opportunity for a hearing, the Secretary 
finds that any State to which any authority or responsibility of 
the Secretary has been delegated under this section is in violation 
of any requirement of this section or any rule thereunder, or that 
an affirmative finding by the Secretary under subsection (b) can 
no longer be made, the Secretary may revoke such delegation. 
110 STAT. 1704 
PUBLIC LAW 104-185—AUG. 13, 1996 
If, Eifter providing written notice to a delegated State and a reason-
able opportunity to take corrective action requested by the Sec-
retary, the Secretary determines that the State has failed to issue 
a demand or order to a Federal lessee within the State, that 
such failure may result in an underpa5mrient of an obligation due 
the United States by such lessee, and that such underpajonent 
may be uncollected without Secretarial intervention, the Secretary 
may issue such demand or order in accordance with the provisions 
of this Act prior to or absent the withdrawal of delegated authority. 
"(f) Subject to appropriations, the Secretary shall compensate 
any State for those costs which may be necessary to carry out 
the delegated activities under this Section. Payment shall be made 
no less than every quarter during the fiscal year. Compensation 
to a State may not exceed the Secretary's reasonably anticipated 
expenditure for performance of such delegated activities by the 
Secretary. Such costs shall be allocable for the purposes of section 
35(b) of the Act entitled 'An act to promote the mining of coal, 
phosphate, oil, oil shale, gas and sodium on the public domain', 
approved February 25, 1920 (commonly known as the Mineral Leas-
ing Act) (30 U.S.C. 191 (b)) to the administration and enforcement 
of laws providing for the leasing of any onshore lands or interests 
in land owned by the United States. Any further allocation of 
costs under section 35(b) made by the Secretary for oil and gas 
activities, other than those costs to compensate States for delegated 
activities under this Act, shall be only those costs associated with 
onshore oil and gas activities and may not include any duplication 
of costs allocated pursuant to the previous sentence. Nothing in 
this section affects the Secretary's authority to make allocations 
under section 35(b) for non-oil and gas mineral activities. All moneys 
received from sales, bonuses, rentals, royalties, assessments and 
interest, including money claimed to be due and owing pursuant 
to a delegation under this section, shall be payable and paid to 
the Treasury of the United States. 
"(g) Any action of the Secretary to approve or disapprove a 
proposal submitted by a State under this section shall be subject 
to judicigd review in the United States district court which includes 
the capital of the State submitting the proposal. 
"(h) Any State operating pursuant to a delegation existing 
on the date of enactment of this Act may continue to operate 
under the terms and conditions of the delegation, except to the 
extent that a revision of the existing agreement is adopted pursuant 
to this section.". 
(b) CLERICAL AMENDMENT.—^The item relating to section 205 
in the table of contents in section 1 of the Federal Oil and Gas 
Royalty Management Act of 1982 (30 U.S.C. 1701) is amended 
to read as follows: 
"Sec. 205. Delegation of royalty collections and related activities.". 
SEC. 4. SECRETARIAL AND DELEGATED STATES' ACTIONS AND LIMITA-
TION PERIODS. 
(a) IN GENERAL.—^The Federal Oil and Gas Royalty Manage-
ment Act of 1982 (30 U.S.C. 1701 et seq.) is amended by adding 
Eifter section 114 the following new section: 
PUBLIC LAW 104-185—AUG. 13, 1996 
110 STAT. 1705 
"SEC. 115. SECRETARIAL AND DELEGATED STATES' ACTIONS AND 30USC1724. 
LIMITATION PERIODS. 
"(a) IN GENERAL.—^The respective duties, responsibilities, and 
activities with respect to a lease shall be performed by the Sec-
retary, delegated States, and lessees or their designees in a timely 
manner. 
"(b) LIMITATION PERIOD.— 
"(1) IN GENERAL.—^A judicial proceeding or demand which 
arises from, or relates to an obligation, shall be commenced 
within seven years from the date on which the obligation 
becomes due and if not so commenced shall be barred. If 
commencement of a judicial proceeding or demand for an obliga-
tion is barred by this section, the Secretary, a delegated State, 
or a lessee or its designee (A) shall not take any other or 
further action regarding that obligation, including (but not 
limited to) the issuance of any order, request, demand or other 
communication seeking any document, accounting, determina-
tion, calculation, recalculation, payment, principal, interest, 
assessment, or penalty or the initiation, pursuit or completion 
of an audit with respect to that obligation; and (B) shall not 
pursue any other equitable or legal remedy, whether under 
statute or common law, with respect to an action on or an 
enforcement of said obligation. 
"(2) RULE OF CONSTRUCTION.—A judicial proceeding or 
demand that is timely commenced under paragraph (1) against 
a designee shall be considered timely commenced as to any 
lessee who is liable pursuant to section 102(a) of this Act 
for the obligation that is the subject of the judicial proceeding 
or demand. 
"(3) APPLICATION OF CERTAIN LIMITATIONS.—^The limitations 
set forth in sections 2401, 2415, 2416, and 2462 of title 28, 
United States Code, and section 42 of the Mineral Leasing 
Act (30 U.S.C. 226-2) shall not apply to any obligation to 
which this Act applies. Section 3716 of title 31, United States 
Code, may be applied to an obligation the enforcement of which 
is not barred by this Act, but may not be applied to any 
obligation the enforcement of which is barred by this Act. 
"(c) OBLIGATION BECOMES DUE.— 
"(1) IN GENERAL.—^For purposes of this Act, an obligation 
becomes due when the right to enforce the obligation is fixed. 
"(2) ROYALTY OBLIGATIONS.—^The right to enforce any roy-
alty obligation for any given 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. 
"(d) TOLLING OF LIMITATION PERIOD.—The running of the 
limitation period under subsection (b) shall not be suspended, tolled, 
extended, or enlarged for any obligation for any reason by any 
action, including an action by the Secretary or a delegated State, 
other than the following: 
"(1) TOLLING AGREEMENT.—^A written agreement executed 
during the limitation period between the Secretary or a dele-
gated State and a lessee or its designee (with notice to the 
lessee who designated the designee) shall toll the limitation 
period for the amount of time during which the agreement 
is in effect. 
"(2) SUBPOENA.— 
110 STAT. 1706 
PUBLIC LAW 104-185—AUG. 13, 1996 
"(A) The issuance of a subpoena to a lessee or its 
designee (with notice to the lessee who designated the 
designee, which notice shall not constitute a subpoena to 
the lessee) in accordance with the provisions of subpara-
graph (B)(i) shall toll the limitation period with respect 
to the obligation which is the subject of a subpoena only 
for the period beginning on the date the lessee or its 
designee receives the subpoena and ending on the date 
on which (i) the lessee or its designee has produced such 
subpoenaed records for the subject obligation, (ii) the Sec-
retary or a delegated State receives written notice that 
the subpoenaed records for the subject obligation are not 
in existence or are not in the lessee's or its designee's 
possession or control, or (iii) a court has determined in 
a final decision that such records are not required to be 
produced, whichever occurs first. 
"(B)(i) A subpoena for the purposes of this section 
which requires a lessee or its designee to produce records 
necessary to determine the proper reporting and payment 
of an obligation due the Secretary may be issued only 
by an Assistant Secretary of the Interior or EOI 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), or the Director or Acting Director 
of the respective bureau or agency, and may not be dele-
gated to any other person. If a State has been delegated 
authority pursuant to section 205, the State, acting through 
the highest State official having ultimate authority over 
the collection of royalties from leases on Federal lands 
within the State, may issue such subpoena, but may not 
delegate such authority to any other person. 
"(ii) A subpoena described in clause (i) may only be 
issued against a lessee or its designee during the limitation 
period provided in this section and only after the Secretary 
or a delegated State has in writing requested the records 
from the lessee or its designee related to the obligation 
which is the subject of the subpoena and has determined 
t h a t -
'll) the lessee or its designee has failed to respond 
within a reasonable period of time to the Secretary's 
or the applicable delegated State's written request for 
such records necessary for an audit, investigation or 
other inquiry made in accordance with the Secretary's 
or such delegated State's responsibilities under this 
Act; or 
"(II) the lessee or its designee has in writing denied 
the Secretary's or the applicable delegated State's writ-
ten request to produce such records in the lessee's 
or its designee's possession or control necessary for 
an audit, investigation or other inquiry made in accord-
ance with the Secretary's or such delegated State's 
responsibilities under this Act; or 
"(III) the lessee or its designee has unreasonably 
delayed in producing records necessary for an audit, 
investigation or other inquiry made in accordance with 
the Secretary's or the applicable delegated State's 
PUBLIC LAW 104-185—AUG. 13, 1996 
110 STAT. 1707 
responsibilities under this Act after the Secretary's 
or delegated State's written request. 
"(C) In seeking records, the Secretary or the applicable 
delegated State shall afford the lessee or its designee a 
reasonable period of time after a written request by the 
Secretary or such delegated State in which to provide such 
records prior to the issuance of any subpoena. 
"(3) 
MISREPRESENTATION OR CONCEALMENT.—The inten-
tional misrepresentation or concealment of a material fact for 
the purpose of evading the payment of an obligation in which 
case the limitation period shall be tolled for the period of 
such misrepresentation or such concealment. 
"(4) ORDER TO PERFORM RESTRUCTURED ACCOUNTING.—^A)(i) 
The issuance of a notice under subparagraph (D) that the 
lessee or its designee has not substantially complied with the 
requirement to perform a restructured accounting shall toll 
the limitation period with respect to the obligation which is 
the subject of the notice only for the period beginning on the 
date the lessee or its designee receives the notice and ending 
120 days after the date on which (I) the Secretary or the 
applicable delegated State receives written notice that the 
accounting or other requirement has been performed, or (II) 
a court has determined in a final decision that the lessee 
is not required to perform the accounting, whichever occurs 
first. 
"(ii) If the lessee or its designee initiates an administrative 
appeal or judicial proceeding to contest an order to perform 
a restructured accounting issued under subparagraph (B)(i), 
the limitation period in subsection (b) shall be tolled from 
the date the lessee or its designee received the order until 
a final, nonappealable decision is issued in any such proceeding. 
"(B)(i) The Secretary or the applicable delegated State may 
issue an order to perform a restructured accounting to a lessee 
or its designee when the Secretary or such delegated State 
determines during an audit of a lessee or its designee that 
the lessee or its designee should recalculate royalty due on 
an obligation based upon the Secretary's or the delegated State's 
finding that the lessee or its designee has made identified 
underpayments or overpayments which are demonstrated by 
the Secretary or the delegated State 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 constitutes a pattern of 
violations and which are likely to result in either significant 
underpayments or overpa3mients. 
"(ii) The power of the Secretary to issue an order to perform 
a restructured accounting may not be delegated below the most 
senior career professional position having responsibility for the 
royalty management program, which position is currently des-
ignated as the 'Associate Director for Royalty Management', 
and may not be delegated to any other person. If a State 
has been delegated authority pursuant to section 205 of this 
Act, the State, acting through the highest ranking State official 
having ultimate authority over the collection of royalties from 
leases on Federal lands within the State, may issue such order 
to perforin, which may not be delegated to any other person. 
An order to perform a restructured accounting shall— 
110 STAT. 1708 
PUBLIC LAW 104-185—AUG. 13, 1996 
"(I) be issued within a reasonable period of time from 
when the audit identifies the systemic, reporting errors; 
"(11) specify the reasons and factual bases for such 
order; 
"(III) be specifically identified as an 'order to perform 
a restructured accounting*; 
"(IV) provide the lessee or its designee a reasonable 
period of time (but not less than 60 days) within which 
to perform the restructured accounting; and 
"(V) provide the lessee or its designee 60 days within 
which to file an administrative appeal of the order to 
perform a restructured accounting. 
'(C) An order to perform a restructured accounting shall 
not mean or be construed to include any other action by or 
on behalf of the Secretary or a delegated State. 
Notice. 
"(D) If a lessee or its designee fails to substantially comply 
with the requirement to perform a restructured accounting 
pursuant to this subsection, a notice shall be issued to the 
lessee or its designee that the lessee or its designee has not 
substantially complied with the requirements to perform a 
restructured accounting. A lessee or its designee shall be given 
a reasonable time within which to perform the restructured 
accounting. Such notice may be issued under this section only 
by an Assistant Secretary of the Interior 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 Regula-
tions) and may not be delegated to any other person. If a 
State has been delegated authority pursuant to section 205, 
the State, acting through the highest State official having ulti-
mate authority over the collection of royalties from leases on 
Federal lands within the State, may issue such notice, which 
may not be delegated to any other person. 
"(e) TERMINATION OF LIMITATIONS PERIOD.—^An action or 
an 
enforcement of an obligation by the Secretary or delegated State 
or a lessee or its designee shall be barred under this section prior 
to the running of the seven-year period provided in subsection 
(b) in the event— 
"(1) the Secretary or a delegated State has notified the 
lessee or its designee in writing that a time period is closed 
to further audit; or 
"(2) the Secretary or a delegated State and a lessee or 
its designee have so agreed in writing. 
For purposes of this subsection, notice to, or an agreement by, 
the designee shall be binding on any lessee who is liable pursuant 
to section 102(a) for obligations that are the subject of the notice 
or agreement. 
"(f) 
RECORDS REQUIRED FOR DETERMINING COLLECTIONS.— 
Records required pursuant to section 103 of this Act by the Sec-
retary or any delegated State for the purpose of determining obliga-
tions due and compligmce with any applicable mineral leasing law, 
lease provision, regulation or order with respect to oil and gas 
leases from Federal lands or the Outer Continental Shelf shall 
be maintained for the same period of time during which a judicial 
proceeding or demand may be commenced under subsection (b). 
If a judicial proceeding or demand is timely commenced, the record 
holder shall maintain such records until the final nonappealable 
decision in such judicial proceeding is made, or with respect to 
PUBLIC LAW 104-185—AUG. 13, 1996 
110 STAT. 1709 
that demand is rendered, unless the Secretary or the applicable 
delegated State authorizes in writing an earlier release of the 
requirement to maintain such records. Notwithstanding an3rthing 
herein to the contrary, under no circumstance shall a record holder 
be required to maintain or produce any record relating to an obliga-
tion for any time period which is barred by the applicable limitation 
in this section. In connection with any hearing, administrative 
proceeding, inquiry, investigation, or audit by the Secretary or 
a delegated State under this Act, the Secretary or the delegated 
State shall minimize the submission of multiple or redundant 
information and make a good faith effort to locate records previously 
submitted by a lessee or a designee to the Secretary or the delegated 
State, prior to requiring the lessee or the designee to provide 
such records. 
"(g) TIMELY COLLECTIONS.—In order to most effectively utilize 
resources available to the Secretary to maximize the collection 
of oil and gas receipts from lease obligations to the Treasury within 
the seven-year period of limitations, and consequently to maximize 
the State share of such receipts, the Secretary should not perform 
or require accounting, reporting, or audit activities if the Secretary 
and the State concerned determine that the cost of conducting 
or requiring the activity exceeds the expected amount to be collected 
by the activity, based on the most current 12 months of activity. 
This subsection shall not provide a defense to a demand or an 
order to perform a restructured accounting. To the maximum extent 
possible, the Secretary and delegated States shall reduce costs 
to the United States Treasury and the States by discontinuing 
requirements for unnecessary or duplicative data and other informa-
tion, such as separate allowances and payor information, relating 
to obligations due. If the Secretary and the State concerned deter-
mine that collection will result sooner, the Secretary or the 
applicable delegated State may waive or forego interest in whole 
or in part. 
"(h) APPEALS AND FIN^VL AGENCY ACTION.— 
"(1) 33-MONTH PERIOD.—^Demands or orders issued by the 
Secretary or a delegated State are subject to administrative 
appeal in accordance with the regulations of the Secretary. 
No State shall impose any conditions which would hinder a 
lessee's or its designee's immediate appeal of an order to the 
Secretary or the Secretary's designee. The Secretary shall issue 
a final decision in any administrative proceeding, including 
any administrative proceedings pending on the date of enact-
ment of this section,, within 33 months from the date such 
proceeding was commenced or 33 months from the date of 
such enactment, whichever is later. The 33-month period may 
be extended by any period of time agreed upon in writing 
by the Secretary and the appellant. 
"(2) EFFECT OF FAILURE TO ISSUE DECISION.—If no such 
decision has been issued by the Secretary within the 33-month 
period referred to in paragraph (1)— 
"(A) the Secretary shall be deemed to have issued 
and granted a decision in favor of the appellant as to 
any nonmonetary obligation and any monetary obligation 
the principal amount of which is less than $10,000; and 
"(B) the Secretary shall be deemed to have issued 
a final decision in favor of the Secretary, which decision 
shall be deemed to affirm those issues for which the agency 
110 STAT. 1710 
PUBLIC LAW 104-185—AUG. 13, 1996 
rendered a decision prior to the end of such period, as 
to any monetary obUgation the principal amount of which 
is $10,000 or more, and the appellant shall have a right 
to judicial review of such deemed final decision in accord-
ance with title 5 of the United States Code. 
"(i) COLLECTIONS OF DISPUTED AMOUNTS DUE.—To expedite 
collections relating to disputed obligations due within the seven-
year period beginning on the date the obligation became due, the 
parties shall hold not less than one settlement consultation and 
the Secretary and the State concerned may take such action as 
is appropriate to compromise and settle a disputed obligation, 
including waiving or reducing interest and allowing offsetting of 
obligations among leases. 
"(j) ENFORCEMENT OF A CLAIM FOR JUDICIAL REVIEW.—In the 
event a demand subject to this section is properly and timely 
commenced, the obligation which is the subject of the demand 
may be enforced beyond the seven-year limitations period without 
being barred by this statute of limitations. In the event a demand 
subject to this section is properly and timely commenced, a judicial 
proceeding 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 
or its designee of the final agency action. 
"(k) IMPLEMENTATION OF FINAL DECISION.—In the event a 
judicial proceeding or demand subject to this section is timely 
commenced and thereafter the limitation period in this section 
lapses during the pendency of such proceeding, any party to such 
proceeding shall not be barred from tsdcing such action as is required 
or necessary to implement a final unappealable judicial or adminis-
trative decision, including any action required or necessary to imple-
ment such decision by the recovery or recoupment of an underpay-
ment or overpayment by means of refund or credit. 
"(1) STAY OF PAYMENT OBLIGATION PENDING REVIEW.—^Any per-
son ordered by the Secretary or a delegated State 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 person periodically 
demonstrates to the satisfaction of the Secretary that such person 
is financially solvent or otherwise able to pay the obligation. In 
the event the person is not able to demonstrate, the Secretary 
may require a bond or other surety instrument satisfactory to 
cover the obligation. Any person ordered by the Secretary or a 
delegated State to pay an assessment shall be entitled to a stay 
without bond or other surety instrument.". 
(b) CLERICAL AMENDMENT.—^The table of contents in section 
1 of the Federal Oil and Gas Royalty Management Act of 1982 
(30 U.S.C. 1701) is amended by inserting after the item relating 
to section 114 the following new item: 
"Sec. 
115. Secretarial and delegated States' actions and limitation periods.". 
SEC. 5. ADJUSTMENT AND REFUNDS. 
(a) IN GENERAL.—^The Federal Oil and Gas Royalty Manage-
ment Act of 1982 (30 U.S.C. 1701 et seq.) is amended by inserting 
after section 111 the following: 
PUBLIC LAW 104-185—AUG. 13, 1996 
110 STAT. 1711 
"SEC. IIIA. ADJUSTMENTS AND REFUNDS. 
30 USC 1721a. 
"(a) ADJUSTMENTS TO ROYALTIES PAID TO THE SECRETARY OR 
A DELEGATED STATE.— 
"(1) If, during the adjustment period, a lessee or its des-
ignee determines that an adjustment or refund request is nec-
essary to correct an underpa5anent or overpajrment of an obliga-
tion, the lessee or its designee shall make such adjustment 
or request a refund within a reasonable period of time and 
only during the adjustment period. The filing of a royalty 
report which reflects the underpajrment or overpayment of an 
obligation shall constitute prior written notice to the Secretary 
or the applicable delegated State of an adjustment. 
"(2)(A) For any adjustment, the lessee or its designee shall 
calculate and report the interest due attributable to such adjust-
ment at the same time the lessee or its designee adjusts the 
principle amount of the subject obligation, except £is provided 
by subparagraph (B). 
"(B) In the case of a lessee or its designee who determines 
that subparagraph (A) would impose a hardship, the Secretary 
or such delegated State shall calculate the interest due and 
notify the lessee or its designee within a reasonable time of 
the amount of interest due, unless such lessee or its designee 
elects to calculate and report interest in accordance with 
subparagraph (A). 
"(3) An adjustment or a request for a refund for an obliga-
tion may be made after the adjustment period only upon written 
notice to and approval by the Secretary or the applicable dele-
gated State, as appropriate, during an audit of the period 
which includes the production month for which the adjustment 
is being made. If an overpa5anent is identifled during an audit, 
then the Secretary or the applicable delegated State, as appro-
priate, shsdl allow a credit or refund in the amount of the 
overpa3ntnent. 
"(4) For purposes of this section, the adjustment period 
for any obligation shall be the six-year period following the 
date on which an obligation became due. The adjustment period 
shall be suspended, 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 sufficient if it— 
"(A) is made in writing to the Secretary and, for pur-
poses 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 identify the overpayment for which 
such refund is sought; and 
"(D) provides the reasons why the payment was an 
overpayment. 
"(2) PAYMENT BY SECRETARY OF THE TREASURY.—^The Sec-
retary shall certify the amount of the refund to be paid under 
paragraph (1) to the Secretary of the Treasury who shall make 
such refund. Such refund shall be paid from amounts received 
as current receipts from sales, bonuses, royalties (including 
interest charges collected under this section) and rentals of 
the public lands and the Outer Continental Shelf under the 
provisions of the Mineral Leasing Act and the Outer Continen-
tal Shelf Lands Act, which are not payable to a State or 
110 STAT. 1712 
PUBLIC LAW 104-185—AUG. 13, 1996 
the Reclamation Fund. The portion of any such refund attrib-
utable to any amounts previously disbursed to a State, the 
Reclamation Fund, or £iny recipient prescribed by law shall 
be deducted from the next disbursements to that recipient 
made under the applicable law. Such amounts deducted from 
subsequent disbursements shall be credited to miscellaneous 
receipts in the Treasury. 
"(3) PAYMENT PERIOD.—^A refund under this subsection 
shall be paid or denied (with an explanation of the reasons 
for the denial) within 120 days of the date on which the request 
for refund is received by the Secretary. Such refund shall 
be subject to later audit by the Secretary or the applicable 
delegated State and subject to the provisions of this Act. 
"(4) PROHIBITION AGAINST REDUCTION OF REFUNDS OR CRED-
ITS.—In no event shall the Secretary or any delegated State 
directly or indirectly claim or offset any amount or amounts 
against, or reduce any refund or credit (or interest accrued 
thereon) by the amount of any obligation the enforcement of 
which is barred by section 115 of this Act.". 
(b) CLERICAL AMENDMENT.—The table of contents in section 
1 of the Federal Oil and Gas Royalty Management Act of 1982 
(30 U.S.C. 1701) is amended by inserting after the item relating 
to section 111 the following new item: 
"Sec. IIIA. At^justments and refunds.". 
SEC. 
6. 
ROYALTY 
TERMS 
AND 
CONDITIONS, 
INTEREST, 
AND 
PENALTIES. 
(a) LESSEE OR DESIGNEE INTEREST.—Section 111 of the Federal 
Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1721) 
is amended by adding after subsection (g) the following: 
"(h) Interest shall be allowed and paid or credited on any 
overpayment, with such interest to accrue from the date such over-
payment was made, at the rate obtained by applying the provisions 
of subparagraphs (A) and (B) of section 6621(a)(1) of the Internal 
Revenue Code of 1986, but determined without regard to the sen-
tence following subparagraph (B) of section 6621(a)(1). Interest 
which has accrued on any overpajonent may be applied to reduce 
an underpayment. This subsection applies to overpajrments made 
later than six months after the date of enactment of this subsection 
or September 1, 1996, whichever is later. Such interest shall be 
paid from amounts received as current receipts from sales, bonuses, 
royalties (including interest charges collected under this section) 
and rentals of the public lands and the Outer Continental Shelf 
under the provisions of the Mineral Leasing Act, and the Outer 
ContinentgJ Shelf Lands Act, which are not payable to a State 
or the Reclamation Fund. The portion of any such interest pajmtient 
attributable to any amounts previously disbursed to a State, the 
Reclamation Fund, or any other recipient designated by law shall 
be deducted from the next disbursements to that recipient made 
under the applicable law. Such amounts deducted from subsequent 
disbursements shall be credited to miscellaneous receipts in the 
Treasury.". 
(b) LIMITATION ON INTEREST.—Section 111 of the Federal Oil 
and Gas Royalty Management Act of 1982, as amended by sub-
section (a), is further amended by adding at the end the following: 
"(i) Upon a determination by the Secretary that an excessive 
overpayment (based upon all obligations of a lessee or its designee 
PUBLIC LAW 104-185—AUG. 13, 1996 
110 STAT. 1713 
for a given reporting month) was made for the sole purpose of 
receiving interest, interest shall be paid on the excessive amount 
of such overpayment. For purposes of this Act, an 'excessive over-
payment' shall be the amount that any overpayment a lessee or 
its designee pays for a given reporting month (excluding pajonents 
for demands for obligations determined to be due as a result of 
judicial or administrative proceedings or agreed to be paid pursuant 
to settlement agreements) for the aggregate of all of its Federal 
leases exceeds 10 percent of the total royalties paid that month 
for those leases.". 
(c) ESTIMATED PAYMENT.—Section 111 of the Federal Oil and 
Gas Royalty Management Act of 1982 (30 U.S.C. 1721), as amended 
by subsections (a) and (b), is further amended by adding at the 
end the following: 
"(j) A lessee or its designee may make a payment for the 
approximate amount of royalties (hereinafter in this subsection 
'estimated pa5niient') that would otherwise be due for such lease 
by the rate royalties are due for that lease. When an estimated 
payment 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 owned on the underpaid amount. 
If the estimated pajonent exceeds the actual royalties due, interest 
is owned on the overpa3rment. If the lessee or its designee makes 
a payment for such actual royalties, the lessee or its designee 
may apply the estimated payment to future royalties. Any estimated 
payment may be adjusted, recouped, or reinstated at any time 
by the lessee or its designee.". 
(d) VOLUME ALLOCATION OF OIL AND GAS PRODUCTION.—Section 
111 of the Federal Oil and Gas Royalty Management Act of 1982 
(30 U.S.C. 1721), as amended by subsections (a) through (c), is 
amended by adding at the end the following: 
"(k)(l) Except as otherwise provided by this subsection— 
"(A) a lessee or its designee of a lease in a unit or 
communitization agreement which contains only Federal leases 
with the same royalty rate and funds distribution shall report 
and pay royalties on oil and gas production for each production 
month based on the actual volume of production sold by or 
on behalf of that lessee; 
"(B) a lessee or its designee of a lease in any other unit 
or communitization agreement shall report and pay royalties 
on oil and gas production for each production month based 
on the volume of oil and gas produced from such agreement 
and allocated to the lease in accordance with the terms of 
the agreement; and 
"(C) a lessee or its designee of a lease that is not contained 
in a unit or communitization agreement shall report and pay 
royalties on oil and gas production for each production month 
based on the actual volume of production sold by or on behalf 
of that lessee. 
"(2) This subsection applies only to requirements for reporting 
and paying royalties. Nothing in this subsection is intended to 
alter a lessee's liability for royalties on oil or gas production based 
on the share of production allocated to the lease in accordance 
with the terms of the lease, a unit or communitization agreement, 
or any other agreement. 
110 STAT. 1714 
PUBLIC LAW 104-185—AUG. 13, 1996 
"(3) For any unit or communitization agreement if all lessees 
contractually agree to an alternative method of royalty reporting 
and pajonent, the lessees may submit such alternative method 
to the Secretary or the delegated State for approval and make 
payments in accordance with such approved alternative method 
so long as such alternative method does not reduce the amount 
of the royalty obligation. 
"(4) The Secretary or the delegated State shall grant an excep-
tion from the reporting and payment requirements for marginal 
properties by allowing for any calendar year or portion thereof 
royalties to be paid each month based on the volume of production 
sold. Interest shall not accrue on the difference for the entire 
calendar year or portion thereof between the amount of oil and 
gas actually sold and the share of production allocated to the 
lease until the beginning of the month following such calendar 
year or portion thereof. Any additional royalties dues or overpaid 
royalties and associated interest shall be paid, refunded, or credited 
within six months after the end of each calendar year in which 
royalties are paid based on volumes of production sold. For the 
purpose of this subsection, the term 'marginal property' means 
a lease that produces on average the combined equivalent of less 
than 15 barrels of oil per well per day or 90 thousand cubic feet 
of gas per well per day, or a combination thereof, determined 
by dividing the average daily production of crude oil and natural 
gas from producing wells on such lease by the number of such 
wells, unless the Secretary, together with the State concerned, 
determines that a different production is more appropriate. 
"(5) Not later than two years sifter the date of the enactment 
of this subsection, the Secretary shall issue any appropriate demand 
for all outstanding royalty payment disputes regarding who is 
required to report and pay royalties on production from units Eind 
communitization agreements outstanding on the date of the enact-
ment of this subsection, and collect royalty amounts owed on such 
production.". 
(e) PRODUCTION ALLOCATION.—Section 111 of the Federal Oil 
and Gas Royalty Management Act of 1982 (30 U.S.C. 1721), as 
amended by subsections (a) through (d), is amended by adding 
at the end the following: 
"(1) The Secretary shall issue all determinations of allocations 
of production for units and communitization agreements within 
120 days of a request for determination. If the Secretary fails 
to issue a determination within such 120-day period, the Secretary 
shall waive interest due on obligations subject to the determination 
until the end of the month following the month in which the 
determination is made.". 
(f) NEW ASSESSMENT TO ENCOURAGE PROPER ROYALTY PAY-
MENTS.— 
(1) IN GENERAL.—^The Federal Oil and Gas Royalty Manage-
ment Act of 1982 (30 U.S.C. 1721), as amended by section 
4(a), is further amended by adding at the end the following: 
30 use 1725. 
"SEC. 116. ASSESSMENTS. 
"Beginning eighteen months after the date of enactment of 
this section, to encourage proper royalty payment the Secretary 
or the delegated State shall impose assessments on a person who 
chronically submits erroneous reports under this Act. Assessments 
under this Act may only be issued as provided for in this section.". 
PUBLIC LAW 104-185—AUG. 13, 1996 
110 STAT. 1715 
(2) CLERICAL AMENDME>rr.—^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 115 the following new item: 
"Sec. 116. Assessments.". 
(g) LIABILITY FOR ROYALTY PAYMENTS.—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 effective collections 
of royalty and other payments, a lessee who is required to make 
any royalty or other pa3nnient under a lease or under the mineral 
leasing laws, shall make such payments in the time and manner 
as may be specified by the Secretary or the applicable delegated 
State. A lessee may designate a person to make all or part of 
the payments due under a lease on the lessee's behalf and shall 
notify the Secretary or the applicable delegated State in writing 
of such designation, in which event said designated person may, 
in its own name, pay, offset or credit monies, make adjustments, 
request and receive refunds and submit reports with respect to 
payments required by the lessee. Notwithstanding any other provi-
sion of this Act to the contrary, a designee shall not be liable 
for any payment obligation under the lease. The person owning 
operating rights in a lease shall be primarily liable for its pro 
rata share of pajrment obligations under the lease. If the person 
owning the legal record title in a lease is other than the operating 
rights owner, the person owning the legal record title shall be 
secondarily liable for its pro rata share of such payment obligations 
under the lease.". 
(h) CLERICAL AMENDMENTS.—(1) The heading of section 111 
of the Federal Oil and Gas Royalty management Act of 1982 (30 
U.S.C. 1721) is amended to read as follows: 
"ROYALTY TERMS AND CONDITIONS, INTEREST, AND PENALTIES". 
(2) The item relating to section 111 in the table of contents 
in section 1 of such Act (30 U.S.C. 1701) is amended to read 
as follows: 
"Sec. 111. Royalty terms and conditions, interest, and penalties.". 
SEC. 7. ALTERNATIVES FOR MARGINAL PROPERTIES. 
(a) IN GENERAL.—^The Federal Oil and Gas Royalty Manage-
ment Act of 1982 (30 U.S.C. 1701 et seq.), as amended by section 
6 of this Act, is further amended by adding at the end the following: 
"SEC. 117. ALTERNATIVES FOR MARGINAL PROPERTIES. 
30 USC 1726. 
"(a) DETERMINATION OF BEST INTERESTS OF STATE CONCERNED 
AND THE UNITED STATES.—^The Secretary and the State concerned, 
acting in the best interests of the United States and the State 
concerned to promote production, reduce administrative costs, and 
increase net receipts to the United States and the States, shall 
jointly determine, on a case by case basis, the amount of what 
marginal production from a lease or leases or well or wells, or 
parts thereof, shall be subject to a prepayment under subsection 
(b) or regulatory relief under subsection (c). If the State concerned 
does not consent, such prepa3mtients or regulatory relief shall not 
be made available under this section for such marginal production: 
Provided, That if royalty pa3anents from a lease or leases, or well 
or wells are not shared with any State, such determination shall 
be made solely by the Secretary. 
110 STAT. 1716 
PUBLIC LAW 104-185—AUG. 13, 1996 
"(b) PREPAYMENT OF ROYALTY.— 
"(1) IN GENERAL.—^Notwithstanding the provisions of any 
lease to the contrary, for any lease or leases or well or wells 
identified by the Secretary and the State concerned pursuant 
to subsection (a), the Secretary is authorized to accept a prepay-
ment for royalties in lieu of monthly royalty payments under 
the lease for the remainder of the lease term if the affected 
lessee so agrees. Any prepayment agreed to by the Secretary, 
State concerned and lessee which is less than an average $500 
per month in total royalties shall be effectuated under this 
section not earlier than two years after the date of enactment 
of this section and, any prepayment which is greater thcin 
an average $500 per month in total royalties shall be effec-
tuated under this section not earlier than three years after 
the date of enactment of this section. The Secretary and the 
State concerned may condition their acceptance of the prepay-
ment authorized under this section on the lessee's agreeing 
to such terms and conditions as the Secretary and the State 
concerned deem appropriate and consistent with the purposes 
of this Act. Such terms may— 
"(A) provide for prepa3anent that does not result in 
a loss of revenue to the United States in present value 
terms; 
"(B) include provisions for receiving additional prepay-
ments or royalties for developments in the lease or leases 
or well or wells that deviate significantly from the assump-
tions and facts on which the valuation is determined; and 
"(C) require the lessee or it designee to provide such 
periodic production reports as may be necessary to allow 
the Secretary and the State concerned to monitor produc-
tion for the purposes of subparagraph (B). 
"(2) STATE SHARE.—A prepa5mtient under this section shall 
be shared by the Secretary with any State or other recipient 
to the same extent as any royalty payment for such lease. 
"(3) SATISFACTION OF OBLIGATION.—^Except as may be pro-
vided in the terms and conditions established by the Secretary 
under subsection (b), a lessee or its designee who makes a 
prepayment under this section shall have satisfied in full the 
lessee's obligation to pay royalty on the production stream 
sold from the lease or leases or well or wells. 
"(c) ALTERNATIVE ACCOUNTING AND AUDITING REQUIREMENTS.— 
Within one year after the date of the enactment of this section, 
the Secretary or the delegated State shall provide accounting, 
reporting, and auditing relief that will encourage lessees to continue 
to produce and develop properties subject to subsection (a): Pro-
vided, That such relief will only be available to lessees in a State 
that concurs, which concurrence is not required if royalty pa3anents 
from the lease or leases or well or wells are not shared with 
any State. Prior to granting such relief, the Secretary and, if appro-
priate, the State concerned shall agree that the type of marginal 
wells and relief provided under this paragraph is in the best interest 
of the United States and, if appropriate, the State concerned.". 
PUBLIC LAW 104-185—AUG. 13, 1996 
110 STAT. 1717 
(b) 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 116 the following new item: 
"Sec. 117. Alternatives for marginal properties.". 
SEC. 8. APPLICABILITY. 
(a) FOGRMA.—With respect to Federal lands, sections 202 30USC1732 
and 307 of the Federal Oil and Gas Royalty Management Act note. 
of 1982 (30 U.S.C. 1732 and 1755), are no longer applicable. The 
applicability of those sections to Indian leases is not affected. 
(b) OCSLA.—Effective on the date of the enactment of this 
Act, section 10 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1339) is repealed. 
SEC. 9. INDIAN LANDS. 
30 USC 1701 
The amendments made by this Act shall not apply with respect 
to Indian lands, and the provisions of the Federal Oil and Gas 
Royalty Management Act of 1982 as in effect on the day before 
the date of enactment of this Act shall continue to apply after 
such date with respect to Indian lands. 
SEC. 10. PRIVATE LANDS. 
30 USC 1701 
This Act shall not apply to any privately owned minerals. 
SEC. 11. EFFECTIVE DATE. 
30 USC 1701 
Except as provided by section 115(h), section 111(h), section 
lll(k)(5), and section 117 of the Federal Oil and Gas Royalty 
Management Act of 1982 (as added by this Act), this Act, and 
the amendments made by this Act, shall apply with respect to 
the production of oil and gas after the first day of the month 
following the date of the enactment of this Act. 
SEC. 12. SAVINGS CLAUSE. 
30 USC 1701 
Nothing in this Act shall be construed to give a State a property 
right or interest in any Federal lease or land. 
Approved August 13, 1996. 
LEGISLATIVE HISTORY—H.R. 1975: 
HOUSE REPORTS: No. 104-667 (Comm. on Resources). 
CONGRESSIONAL RECORD, Vol. 142 (1996): 
July 16, considered and passed House. 
Aug. 2, considered and passed Senate. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996): 
Aug. 13, Presidential remarks and statement.