In the News

To create more workable oil, gas and mineral valuation regulations and avoid costly litigation, the Department of the Interior today announced the repeal of the Consolidated Federal Oil and Gas and Federal and Indian Coal Valuation Reform Rule (Valuation Rule) which had created confusion and uncertainty regarding how companies report and pay royalties on energy and other mineral resources from federal onshore and offshore areas and American Indian lands.

The repeal of the Valuation Rule, published today in the Federal Register and effective on September 6, 2017, will provide certainty and clarity to the regulated community by continuing to require compliance with lawful and well-known oil, gas, and coal regulations in force for more than a decade. These regulations are easy to understand and provide certainty to industry and the Office of Natural Resources Revenue (ONRR) that correct payment has been made.

“Repealing the Valuation Rule provides a clean slate to create workable valuation regulations,” said Secretary of the Interior Ryan Zinke. “We are committed to working closely with stakeholders and the newly chartered Royalty Policy Committee to explore options for future rulemakings and to avoid the structural defects that were found in the prior rule. The Department and the Office of Natural Resources Revenue remain committed to collecting every dollar due. These are taxpayer and American Indian assets, and the public and American Indians deserve an accurate accounting and valuation.”

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“The Obama Administration's changes to royalties for coal, oil, and natural gas was just one in a series of barriers it put up to hold back energy production on federal lands,” said Congressional Coal Caucus Chairman David McKinley, P.E. (R-WV). “Returning to the more reasonable previous standards paves the way for further investment and development of energy resources. I applaud Secretary Zinke’s commitment to supporting American energy dominance.”

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