U.S. Congress urged to repeal net receipts sharing - Brief Article

World Oil, August, 2000

Interstate Oil and Gas Compact Commission (IOGCC) Vice Chairman, Lawrence E. Bengal pushed for Congress to enact H.R. 4340, which will eliminate net receipts sharing--a system whereby states share the federal cost of managing onshore mineral royalties. However, the new law would allow for an equal sharing of royalties between the states and the U.S.

government without any federal administrative deductions. The seven-year-old, net receipt system was implemented by the Omnibus Budget Reconciliation Act of 1993. Before implementing the 1993 act, states were already using the system being proposed. In its 1999 meeting, IOGCC supported the repeal of net receipts sharing, and called for a return to a "fair and equitable means" of royalty distribution.