30 U.S.C. § 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)

1 So in original. Probably should be “principal”.

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  amount of the subject obligation, except as provided by subparagraph (B).

(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)

section 1724 of this title 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 .

(b)

Refunds

(1)

In general

A request for refund is sufficient if it—

(A)

section 1724 of this title is made in writing to the Secretary and, for purposes of , 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

30 U.S.C. 181 43 U.S.C. 1331The 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 [ et seq.] and the Outer Continental Shelf Lands Act [ 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

section 1724 of this titleIn 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 .

Pub. L. 97–451, title I, § 111A Pub. L. 104–185, § 5(a)Aug. 13, 1996110 Stat. 1710(, as added , , .)

Editorial Notes

References in Text

act Feb. 25, 1920, ch. 85 41 Stat. 437 section 181 of this titleThe Mineral Leasing Act, referred to in subsec. (b)(2), is , , which is classified generally to chapter 3A (§ 181 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under and Tables.

act Aug. 7, 1953, ch. 345 67 Stat. 462 section 1301 of Title 43The Outer Continental Shelf Lands Act, referred to in subsec. (b)(2), is , , which is classified generally to subchapter III (§ 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 and Tables.

Statutory Notes and Related Subsidiaries

Effective Date

Aug. 13, 1996section 11 of Pub. L. 104–185 section 1701 of this titleSection applicable with respect to production of oil and gas after the first day of the month following , see , set out as an Effective Date of 1996 Amendment note under .

Applicability

Pub. L. 104–185 section 1701 of this titleSection not applicable to any privately owned minerals or with respect to Indian lands, see sections 9 and 10 of , set out as an Applicability of 1996 Amendment note under .