The Office of Natural Resources Revenue (ONRR) has issued a final rule that updates regulations on how oil, gas, and coal are valued for royalty purposes from Federal and Indian leases, and how civil penalties for certain violations are assessed. The rule reintroduces the option for gas lessees to use an index-based valuation method, removes some limitations on transportation and processing allowances, and clarifies definitions and procedures for valuation. It also explains that civil penalties for payment violations will be assessed more transparently, considering the monetary impact of the violation, and clarifies how ONRR considers mitigating and aggravating circumstances, aiming to increase transparency and fairness.
Simple Explanation
The government has made new rules about how it figures out the money to be paid for using land to get oil, gas, and coal, and what happens if people break those rules. They want to make it fair and easy to understand, like a game where the rules are clear and everyone knows the score.