[Congressional Record Volume 145, Number 165 (Friday, November 19, 1999)]
[Senate]
[Page S15113]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BINGAMAN:
  S. 1997. A bill to simplify Federal oil and gas revenue 
distributions, and for other purposes; to the Committee on Energy and 
Natural Resources.


           mineral revenue payments clarification act of 1999

 Mr. BINGAMAN. Mr. President, today, I am introducing 
legislation which will end the practice of charging States for costs 
the Federal Government incurs in managing Federal mineral leases.
  The Mineral Revenue Payments Clarification Act of 1999 will eliminate 
net receipts sharing, allowing Federal agencies to more rationally and 
fairly apportion to States their share of Federal mineral revenues.
  Since enactment of the Mineral Leasing Act in 1920, Congress has 
determined that it was fair and appropriate to share with States a 
portion of the money received by the United States for Federal mineral 
leases located within the State. Under current law, for most mineral 
leases the State share is 50 percent, except for Alaska which receives 
90 percent.
  In 1993, a permanent provision was added to the Omnibus 
Appropriations Act that requires the Department of the Interior to 
deduct from a State's share 50 percent of the Federal Government's 
costs of administering Federal mineral leases within that State. This 
new requirement substantially lowers the amounts States receive, but 
was added without either explanation or justification as to why such a 
deduction is either fair or appropriate.
  Furthermore, the statutory procedures for figuring these deductions 
are cumbersome to the point of being unworkable. The Federal agencies 
charged with administering these requirements have found them 
difficult, and sometimes impossible, to implement in any consistent 
fashion.
  In November of 1997, the Inspector General of the Department of the 
Interior found that the Department had inaccurately calculated the 
costs involved in administering the Federal onshore mineral leasing 
program, resulting in substantial overcharges to States. This issue has 
yet to be fully resolved by the Department of the Interior.
  Needless to say, this complicated and unjustified provision has been 
controversial with the States and unpopular with the Federal agencies 
charged with administering it. It penalizes States while creating 
administrative nightmares for the Federal Government. It is time to do 
away with this unwieldy provision.
  Therefore, I am introducing The Mineral Revenue Payments 
Clarification Act of 1999, which will eliminate this provision and 
provide that States' shares of payments under Federal mineral leases 
will not be reduced by administrative or other costs incurred by the 
United States. I believe that this will return a system that is both 
fair, and capable of being administered in a reasonable 
fashion.

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