For Immediate Release: Congressman Wesley Hunt's Bill - The Royalty Resiliency Act passed out of The House Natural Resources Committee

 

 

Washington, D.C. - Today, Congressman Wesley Hunt's legislation H.R. 7377 - The Royalty Resiliency Act passed out of House Natural Resources Committee. This bill amends 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 Office of Natural Resources Revenue (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 and helps the Department of Interior simplify internal accounting errors associated with energy royalties without burdening the taxpayer.

 

“The Royalty Resiliency Act is a tremendous step in the right direction for America’s oil and gas industry to ensure their resources and capital are not tied up in administrative bureaucratic processes.  Once passed into law, this unleashed capital will be directed towards additional projects, additional employees, and invested back into the American economy thereby reducing energy prices,” said Hunt.