Office of Natural Resources Revenue Valuation Rule payment/reporting extension

  • 1.  Office of Natural Resources Revenue Valuation Rule payment/reporting extension

    Posted 08-03-2020 17:49
    As a reminder, the U.S. Department of the Interior's Office of Natural Resources Revenue (ONRR) has extended the reporting and payment deadline for lessees to comply with the federal oil and gas provisions of the Consolidated Federal Oil & Gas and Federal & Indian Coal Valuation Reform rule (2016 Valuation Rule) from July 1, 2020, to October 1, 2020 due to the ongoing COVID-19 pandemic. (You may read more about the rule published at 81 Fed. Reg. 43337 here)

    According to the ONRR announcement, "Lessees are responsible for submitting amended reports and additional payments, if applicable, under the 2016 Valuation Rule for production and sales of federal oil and gas occurring on and after January 1, 2017. Payors will remain liable for late payment interest for any underpayment from the month the royalty payment was due until paid. The Department of the Interior has received feedback from industry stating that because this reinstatement requires system changes and re-reporting for the period January 1, 2017, through the present, additional time is necessary for industry to comply with the requirements of the 2016 Valuation Rule. Since ONRR set the July 1, 2020, deadline, the
    global crisis arising from the COVID-19 pandemic and resulting National Emergency has impacted many sectors of the economy, including the energy sector."

    To review the applicable ONRR letter detailing the extension, read more here.

    Russell Cohen
    AAPL Governmental Affairs