The U.S. Senate energy committee last week approved a "royalty fairness" bill that sets a 7 year statute of limitations on collection of back royalty on production from federal leases. The measure also permits the secretary on Interior to delegate the Minerals Management Service's royalty collection functions to producing states. Wyoming and New Mexico are the states most likely to take advantage of the delegation provision. The House resources committee has reported out a similar bill, but
The U.S. Senate energy committee last week approved a "royalty fairness" bill that sets a 7 year statute of limitations on collection of back royalty on production from federal leases.
The measure also permits the secretary on Interior to delegate the Minerals Management Service's royalty collection functions to producing states.
Wyoming and New Mexico are the states most likely to take advantage of the delegation provision.
The House resources committee has reported out a similar bill, but it has not been scheduled for a vote on the floor.
Sen. Frank Murkowski (R-Alaska), energy committee chairman, said the Interior Department helped the panel draft its compromise bill and presumably will support it.
He said the measure will speed the resolution of administrative appeals of royalty disputes. Today, more than $450 million in disputed claims are in Interior's appeals process. Copyright 1996 Oil & Gas Journal. All Rights Reserved.
