Don Nickles: “today we have finally passed the Federal Oil and Gas Royalty Simplification and Fairness Act of 1996. I introduced this…”

“today we have finally passed the Federal Oil and Gas Royalty Simplification and Fairness Act of 1996. I introduced this bill last year. It is a bipartisan bill that has the support of the administration as well as 14 State Governors who represent 99 percent of all Federal onshore production, the Interstate Oil and Gas Compact Commission and industry trade associations who represent virtually 100 percent of all Federal lessees. This bill amends the Federal Oil and Gas Royalty Management Act of 1982 and applies to leases issued by the Secretary of the Interior on Federal onshore lands and the Outer Continental Shelf. The bill's objectives are to provide greater certainty, simplicity, fairness and administrative efficiencies in the laws that govern Federal royalties. Over time, serious problems have developed with the ways courts and consequently the Minerals Management Service [MMS] have interpreted the Federal statute of limitations governing royalty collection. Basically the issue is: At what time does the statute of limitations begin to run on the underpayment of royalties?”