American Geological Institute

Government Affairs Program

Legislative History and Digest of S. 1014


SPONSOR: Sen Don Nickles , (introduced 06/30/95)


A bill to improve the management of royalties from Federal and Outer Continental Shelf oil and gas leases, and for other purposes.

Sen Murkowski - 07/24/95
Sen Domenici - 08/10/95


Senate Action(s)

06/30/95 Read twice and referred to the Committee on Energy and Natural Resources.
07/05/95 Referred to Subcommittee on Energy Production and Regulation.
09/14/95 Subcommittee on Energy Production and Regulation. Hearings Held.
05/01/96 Committee on Energy and Natural Resources. Ordered to be reported with an amendment in the nature of a substitute favorably.
05/09/96 Committee on Energy and Natural Resources. Reported to Senate by Senator Murkowski with an amendment in the nature of a substitute. With written report No. 104-260. Additional views filed. Placed on Senate Legislative Calendar under General Orders. Calendar No. 394.

The complete bill text is available on Thomas: The Library of Congress Web Site. In Thomas, click on Full Text of Legislation, then 104th Congress Bills, then Search by Bill Number, type in s 1014 , hit RUN QUERY, and choose the most recent version.


(REVISED AS OF 05/09/96 -- Reported to Senate, amended)

Federal Oil and Gas Royalty Simplification and Fairness Act of 1996 - Amends the Federal Oil and Gas Royalty Management Act of 1982 to revise and expand the guidelines under which the authorities of the Secretary of the Interior regarding oil and gas receipts collected on lease obligations may be delegated to a State upon its request. Provides for a judicial review of any Secretarial action to approve or disapprove a State proposal.

(Sec. 4) Sets a seven-year statute of limitations for any judicial proceeding or demand arising from a royalty obligation. Prescribes procedural guidelines for Secretarial and delegated States' actions and limitation periods, including royalty adjustments and refunds.

(Sec. 6) Sets forth royalty terms, interest, and penalties, and assessments.

(Sec. 7) Prescribes procedural guidelines under which the Secretary and the State concerned shall jointly determine on a case by case basis the amount of what production from marginal properties shall be subject to prepayment or regulatory reflief. Permits the Secretary's sole determination if the royalty payments are not shared with any State.

(Sec. 8) Renders inapplicable except to Indian leases: (1) the current statute of limitations governing the recovery of penalities; and (2) the Secretary's authority to enter into cooperative agreements with any State (or Indian tribe) with respect to oil or gas royalty activities.

Amends the Outer Continental Shelf Lands Act to repeal the guidelines governing refunds or credit granted to a lessee for excess payments.

(Sec. 9) Excludes Indian lands and privately owned minerals from the purview of this Act.

(Source: Library of Congress)

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Last updated July 17, 1996 by Heidi Mohlman, AGI Government Affairs

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