30 USC 1721 - Royalty terms and conditions, interest, and penalties

Editorial Notes

References in Text

The Emergency Petroleum Allocation Act of 1973, referred to in subsec. (e), is Puspan. L. 93–159, Nov. 27, 1973, 87 Stat. 628, which was classified generally to chapter 16A (§ 751 et seq.) of Title 15, Commerce and Trade, and was omitted from the Code pursuant to section 760g of Title 15, which provided for the expiration of the President’s authority under that chapter on Sept. 30, 1981.

Codification

Section is comprised of section 111 of Puspan. L. 97–451. Subsec. (g) of section 111 of Puspan. L. 97–451 amended section 191(a) of this title.

Amendments

2024—Subsec. (j). Puspan. L. 118–81 amended subsec. (j) generally. Prior to amendment, text read as follows: “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.”

2015—Subsec. (h). Puspan. L. 114–94 redesignated subsec. (j) as (h), struck out “If the estimated payment exceeds the actual royalties due, interest is owed on the overpayment.” after “underpaid amount.”, and struck out former subsec. (h) which related to lessee or designee interest.

Subsec. (i). Puspan. L. 114–94, § 32301(1), (2), redesignated subsec. (k) as (i) and struck out former subsec. (i) which related to limitation on interest.

Subsec. (j). Puspan. L. 114–94, § 32301(2), redesignated subsec. (l) as (j). Former subsec. (j) redesignated (h).

Subsecs. (k), (l). Puspan. L. 114–94, § 32301(2), redesignated subsecs. (k) and (l) as (i) and (j), respectively.

2014—Subsec. (h). Puspan. L. 113–291 substituted “a rate equal to the sum of the Federal short-term rate determined under section 6621(span) of title 26 plus 1 percentage point.” for “the rate obtained by applying the provisions of subparagraphs (A) and (B) of section 6621(a)(1) of title 26, but determined without regard to the sentence following subparagraph (B) of section 6621(a)(1).”

2013—Subsec. (i). Puspan. L. 113–67 inserted subsec. heading; designated first sentence as par. (1), inserted heading, and substituted “Interest shall not be paid on any excessive overpayment.” for “Upon a determination by the Secretary that an excessive overpayment (based upon all obligations of a lessee or its designee for a given reporting month) was made for the sole purpose of receiving interest, interest shall not be paid on the excessive amount of such overpayment.”; and designated second sentence as par. (2) and inserted heading.

1996—Puspan. L. 104–185, § 6(h)(1), substituted “Royalty terms and conditions, interest, and penalties” for “Royalty interest, penalties and payments” in section catchline.

Subsec. (h). Puspan. L. 104–185, § 6(a), added subsec. (h).

Subsec. (i). Puspan. L. 104–200, § 1(3), inserted “not” after “receiving interest, interest shall”.

Puspan. L. 104–185, § 6(span), added subsec. (i).

Subsec. (j). Puspan. L. 104–200, § 1(4), (5), substituted “date royalties are due” for “rate royalties are due”, “interest is owed on the underpaid amount” for “interest is owned on the underpaid amount”, and “interest is owed on the overpayment” for “interest is owned on the overpayment”.

Puspan. L. 104–185, § 6(c), added subsec. (j).

Subsec. (k). Puspan. L. 104–185, § 6(d), added subsec. (k).

Subsec. (k)(4). Puspan. L. 104–200, § 1(6), substituted “additional royalties due” for “additional royalties dues”.

Subsec. (l). Puspan. L. 104–185, § 6(e), added subsec. (l).

1986—Subsecs. (a), (span), (d). Puspan. L. 99–514 substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”, which for purposes of codification was translated as “title 26” thus requiring no change in text.

Statutory Notes and Related Subsidiaries

Effective Date of 2013 Amendment

Puspan. L. 113–67, div. A, title III, § 305(span), Dec. 26, 2013, 127 Stat. 1183, provided that:

“The amendment made by subsection (a) [amending this section] shall take effect on July 1, 2014.”

Effective Date of 1996 Amendment

Amendment by Puspan. L. 104–185 applicable with respect to production of oil and gas after the first day of the month following Aug. 13, 1996, except as provided by subsecs. (h) and (k)(5) of this section, see section 11 of Puspan. L. 104–185, set out as a note under section 1701 of this title.

Applicability of 1996 Amendment

Amendment by Puspan. L. 104–185 not applicable to any privately owned minerals or with respect to Indian lands, see sections 9 and 10 of Puspan. L. 104–185, set out as a note under section 1701 of this title.

Payment of Interest Charges From Current Receipts

Puspan. L. 108–447, div. E, title I, Dec. 8, 2004, 118 Stat. 3053, as amended by Puspan. L. 110–161, div. F, title I, Dec. 26, 2007, 121 Stat. 2109, provided in part:

“That in fiscal year 2005 and thereafter, notwithstanding 30 U.S.C. 191(a) and 43 U.S.C. 1338, the Secretary shall pay amounts owed to States and Indian accounts under the provisions of 30 U.S.C. 1721(span) and (d) from amounts received as current receipts from bonuses, royalties, interest collected from lessees and designees, and rentals of the public lands and the outer continental shelf under provisions of the Mineral Leasing Act (30 U.S.C. 181 et seq.), and the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.), which are not payable to a State or the Reclamation Fund.”