§ 1727. Royalties on all extracted methane

§ 1727. Royalties on all extracted methane

(a) In general For all leases issued after August 16, 2022, except as provided in subsection (b), royalties paid for gas produced from Federal land and on the outer Continental Shelf shall be assessed on all gas produced, including all gas that is consumed or lost by venting, flaring, or negligent releases through any equipment during upstream operations.

(b) Exception Subsection (a) shall not apply with respect to—

(1) gas vented or flared for not longer than 48 hours in an emergency situation that poses a danger to human health, safety, or the environment;

(2) gas used or consumed within the area of the lease, unit, or communitized area for the benefit of the lease, unit, or communitized area; or

(3) gas that is unavoidably lost.

(Pub. L. 117–169, title V, § 50263, Aug. 16, 2022, 136 Stat. 2058.)

Editorial Notes

Codification

Section was enacted as part of Pub L. 117–169, and not as part of the Federal Oil and Gas Royalty Management Act of 1982 which comprises this chapter.