§ 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.
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.