§ 1721a. — Adjustments and refunds.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 30USC1721a]
TITLE 30--MINERAL LANDS AND MINING
CHAPTER 29--OIL AND GAS ROYALTY MANAGEMENT
SUBCHAPTER I--FEDERAL ROYALTY MANAGEMENT AND ENFORCEMENT
Sec. 1721a. Adjustments and refunds
(a) Adjustments to royalties paid to Secretary or a delegated State
(1) If, during the adjustment period, a lessee or its designee
determines that an adjustment or refund request is necessary to correct
an underpayment or overpayment of an obligation, the lessee or its
designee shall make such adjustment or request a refund within a
reasonable period of time and only during the adjustment period. The
filing of a royalty report which reflects the underpayment or
overpayment of an obligation shall constitute prior written notice to
the Secretary or the applicable delegated State of an adjustment.
(2)(A) For any adjustment, the lessee or its designee shall
calculate and report the interest due attributable to such adjustment at
the same time the lessee or its designee adjusts the principle \1\
amount of the subject obligation, except as provided by subparagraph
(B).
---------------------------------------------------------------------------
\1\ So in original. Probably should be ``principal''.
---------------------------------------------------------------------------
(B) In the case of a lessee or its designee who determines that
subparagraph (A) would impose a hardship, the Secretary or such
delegated State shall calculate the interest due and notify the lessee
or its designee within a reasonable time of the amount of interest due,
unless such lessee or its designee elects to calculate and report
interest in accordance with subparagraph (A).
(3) An adjustment or a request for a refund for an obligation may be
made after the adjustment period only upon written notice to and
approval by the Secretary or the applicable delegated State, as
appropriate, during an audit of the period which includes the production
month for which the adjustment is being made. If an overpayment is
identified during an audit, then the Secretary or the applicable
delegated State, as appropriate, shall allow a credit or refund in the
amount of the overpayment.
(4) For purposes of this section, the adjustment period for any
obligation shall be the six-year period following the date on which an
obligation became due. The adjustment period shall be suspended, tolled,
extended, enlarged, or terminated by the same actions as the limitation
period in section 1724 of this title.
(b) Refunds
(1) In general
A request for refund is sufficient if it--
(A) is made in writing to the Secretary and, for purposes of
section 1724 of this title, is specifically identified as a
demand;
(B) identifies the person entitled to such refund;
(C) provides the Secretary information that reasonably
enables the Secretary to identify the overpayment for which such
refund is sought; and
(D) provides the reasons why the payment was an overpayment.
(2) Payment by Secretary of the Treasury
The Secretary shall certify the amount of the refund to be paid
under paragraph (1) to the Secretary of the Treasury who shall make
such refund. Such refund shall be paid from amounts received as
current receipts from sales, bonuses, royalties (including interest
charges collected under this section) and rentals of the public
lands and the Outer Continental Shelf under the provisions of the
Mineral Leasing Act [30 U.S.C. 181 et seq.] and the Outer
Continental Shelf Lands Act [43 U.S.C. 1331 et seq.], which are not
payable to a State or the Reclamation Fund. The portion of any such
refund attributable to any amounts previously disbursed to a State,
the Reclamation Fund, or any recipient prescribed by law shall be
deducted from the next disbursements to that recipient made under
the applicable law. Such amounts deducted from subsequent
disbursements shall be credited to miscellaneous receipts in the
Treasury.
(3) Payment period
A refund under this subsection shall be paid or denied (with an
explanation of the reasons for the denial) within 120 days of the
date on which the request for refund is received by the Secretary.
Such refund shall be subject to later audit by the Secretary or the
applicable delegated State and subject to the provisions of this
chapter.
(4) Prohibition against reduction of refunds or credits
In no event shall the Secretary or any delegated State directly
or indirectly claim or offset any amount or amounts against, or
reduce any refund or credit (or interest accrued thereon) by the
amount of any obligation the enforcement of which is barred by
section 1724 of this title.
(Pub. L. 97-451, title I, Sec. 111A, as added Pub. L. 104-185,
Sec. 5(a), Aug. 13, 1996, 110 Stat. 1710.)
References in Text
The Mineral Leasing Act, referred to in subsec. (b)(2), is act Feb.
25, 1920, ch. 85, 41 Stat. 437, as amended, which is classified
generally to chapter 3A (Sec. 181 et seq.) of this title. For complete
classification of this Act to the Code, see Short Title note set out
under section 181 of this title and Tables.
The Outer Continental Shelf Lands Act, referred to in subsec.
(b)(2), is act Aug. 7, 1953, ch. 345, 67 Stat. 462, as amended, which is
classified generally to subchapter III (Sec. 1331 et seq.) of chapter 29
of Title 43, Public Lands. For complete classification of this Act to
the Code, see Short Title note set out under section 1301 of Title 43
and Tables.
Effective Date
Section applicable with respect to production of oil and gas after
the first day of the month following Aug. 13, 1996, see section 11 of
Pub. L. 104-185, set out as an Effective Date of 1996 Amendment note
under section 1701 of this title.
Applicability
Section not applicable to any privately owned minerals or with
respect to Indian lands, see sections 9 and 10 of Pub. L. 104-185, set
out as an Applicability of 1996 Amendment note under section 1701 of
this title.
