1、CRS INSIGHT Prepared for Members and Committees of Congress The OCS Royalty Rate: Statutory Requirements and General Guidance Marc Humphries Specialist in Energy Policy September 14, 2017 Background The Outer Continental Shelf Lands Act (OCSLA) (43 U.S.C. 1337; P.L. 83-212) authorizes the Secretary
2、of the Interior to establish a royalty rate as part of the process for leasing acreage for oil and gas developments in federal waters. “The Secretary of the Interior shall establish royalties, fees, rentals, bonuses, and other payments to ensure a fair return to the United States for any lease.” Fur
3、ther, OCSLA requires a cash bonus bid with a royalty set at not less than 12.5% in amount or value of production (43 U.S.C. 1337 (a)(1)(A) (For details on product valuation, see 30 C.F.R. 1206.100 (federal oil) and 30 C.F.R. 1206.150 (natural gas.) However, in order to promote increased production o
4、n the lease, the Secretary of the Interior may reduce or eliminate any royalty established in the lease. The Bureau of Ocean Energy Management (BOEM)the Department of the Interior (DOI) agency that administers the offshore leasing program (based on scheduled lease sales in its Five-Year Leasing Prog
