[Congressional Record Volume 142, Number 107 (Friday, July 19, 1996)]
[Senate]
[Pages S8369-S8370]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




THE FEDERAL OIL AND GAS ROYALTY SIMPLIFICATION AND FAIRNESS ACT OF 1996

  Mr. BINGAMAN. After extensive negotiations over the past year with 
the Department of the Interior, the affected States, and the industry, 
the Federal Oil and Gas Royalty Fairness Act is now before the Senate 
for final passage. This bipartisan reform of the Federal Royalty 
Program is identical to the version passed by the Senate Energy and 
Natural Resources Committee in May.
  The Federal Oil and Gas Royalty Fairness Act will result in a 
simpler, fairer and more cost effective way to administer oil and gas 
royalty collections on Federal lands. This is important legislation for 
the independent producers in New Mexico and for independent producers 
throughout the Nation.
  The bill, H.R. 1975, amends the Federal Oil and Gas Royalty 
Management Act of 1982 with respect to royalty collections on Federal 
lands and the Outer Continental Shelf. It does not apply to Indian 
lands.
  The bill establishes a statute of limitations to ensure royalty 
audits and collections are final within 7 years from the date of 
production; establishes reciprocity with respect to payment of interest 
on royalty overpayments and underpayments; simplifies

[[Page S8370]]

recordkeeping and reporting requirements; and expands the Federal 
royalty functions that may be delegated to a qualifying State.
  In short, The Federal Oil and Gas Royalty Simplification and Fairness 
Act will streamline the process, reduce the burden on industry while 
protecting the revenues of New Mexico and the Federal Government. I 
worked hard to make this a bill the President would sign. I urge that 
we pass this bill as soon as possible and send it to the President for 
his signature.
  Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. LOTT. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.

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