For Immediate Release: Congressman Wesley Hunt Introduces The Royalty Resiliency Act
February 15, 2024
Contact: Matthew Topolski, Communications Director
Washington, D.C. - Today, Congressman Wesley Hunt introduced the Royalty Resiliency 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.
Currently, until a communization agreement (CA) is approved by DOI the lessee is mandated by ONRR to pay the Federal Government a 100% royalty rate on production, even in cases where the Federal Government does not own 100% of the land used during a project.
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.
This Bill ensures that the Federal Government only charges operators the correct percentage that corresponds with their land ownership.
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