Bill Sponsor
House Bill 7377
118th Congress(2023-2024)
Royalty Resiliency Act
Introduced
Introduced
Introduced in House on Feb 15, 2024
Overview
Text
Introduced
Feb 15, 2024
Latest Action
Jun 27, 2024
Origin Chamber
House
Type
Bill
Bill
The primary form of legislative measure used to propose law. Depending on the chamber of origin, bills begin with a designation of either H.R. or S. Joint resolution is another form of legislative measure used to propose law.
Bill Number
7377
Congress
118
Policy Area
Energy
Energy
Primary focus of measure is all sources and supplies of energy, including alternative energy sources, oil and gas, coal, nuclear power; efficiency and conservation; costs, prices, and revenues; electric power transmission; public utility matters.
Sponsorship by Party
House Votes (0)
Senate Votes (0)
No House votes have been held for this bill.
Summary

Royalty Resiliency Act

This bill modifies the process under which oil and gas leaseholders who have entered into a joint drilling agreement (i.e., a communitization agreement or a unit agreement) to drill wells on leased land pay royalties to the Department of the Interior under the Federal Oil and Gas Royalty Management Act of 1982.

Under current law, Interior must issue a determination of allocations of royalty payments for oil and gas production under a joint agreement within 120 days of a request for determination. Generally, the first leaseholder to drill must pay any royalties due to Interior for all oil and gas production on the land subject to the agreement until Interior determines the royalty allocations of each leaseholder. If Interior fails to issue the determination by that deadline, then it must waive interest due on royalty obligations until the end of the month following the month in which the determination was made.

Under the bill, a leaseholder must pay royalties on oil and gas production based on the lessee's proposed allocation of production under the joint agreement until Interior issues a determination of royalty allocations. After Interior issues the determination, then the lessee must correct, if necessary, the amount of royalties paid by the end of the third month following the month in which the lessee received the determination from Interior. The bill also directs Interior to waive interest due on royalty obligations until the end of the third month.

Text (2)
June 27, 2024
February 15, 2024
Actions (9)
06/27/2024
Placed on the Union Calendar, Calendar No. 464.
06/27/2024
Reported (Amended) by the Committee on Natural Resources. H. Rept. 118-562.
04/16/2024
Ordered to be Reported (Amended) by Unanimous Consent.
04/16/2024
Committee Consideration and Mark-up Session Held
04/16/2024
Subcommittee on Energy and Mineral Resources Discharged
03/06/2024
Subcommittee Hearings Held
03/04/2024
Referred to the Subcommittee on Energy and Mineral Resources.
02/15/2024
Referred to the House Committee on Natural Resources.
02/15/2024
Introduced in House
Public Record
Record Updated
Jul 11, 2024 3:05:53 PM