110 STAT. 1712
PUBLIC LAW 104-185—AUG. 13, 1996
the Reclamation Fund. The portion of any such refund attributable to any amounts previously disbursed to a State, the
Reclamation Fund, or any recipient prescribed by law shall
be deducted from the next disbursements to that recipient
made under the applicable law. Such amounts deducted from
subsequent disbursements shall be credited to miscellaneous
receipts in the Treasury.
"(3) PAYMENT PERIOD. —^A refund under this subsection
shall be paid or denied (with an explanation of the reasons
for the denial) within 120 days of the date on which the request
for refund is received by the Secretary. Such refund shall
be subject to later audit by the Secretary or the applicable
delegated State and subject to the provisions of this Act.
"(4) PROHIBITION AGAINST REDUCTION OF REFUNDS OR CRED-
ITS.— In no event shall the Secretary or any delegated State
directly or indirectly claim or offset any amount or amounts
against, or reduce any refund or credit (or interest accrued
thereon) by the amount of any obligation the enforcement of
which is barred by section 115 of this Act.".
(b) CLERICAL AMENDMENT. —The table of contents in section
1 of the Federal Oil and Gas Royalty Management Act of 1982
(30 U.S.C. 1701) is amended by inserting after the item relating
to section 111 the following new item:
"Sec. IIIA. At^justments and refunds.".
SEC. 6. ROYALTY TERMS AND CONDITIONS, INTEREST, AND
PENALTIES.
(a) LESSEE OR DESIGNEE INTEREST.—Section 111 of the Federal
Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1721)
is amended by adding after subsection (g) the following:
"(h) Interest shall be allowed and paid or credited on any
overpayment, with such interest to accrue from the date such overpayment was made, at the rate obtained by applying the provisions
of subparagraphs (A) and (B) of section 6621(a)(1) of the Internal
Revenue Code of 1986, but determined without regard to the sentence following subparagraph (B) of section 6621(a)(1). Interest
which has accrued on any overpayment may be applied to reduce
an underpayment. This subsection applies to overpayments made
later than six months after the date of enactment of this subsection
or September 1, 1996, whichever is later. Such interest shall be
paid from amounts received as current receipts from sales, bonuses,
royalties (including interest charges collected under this section)
and rentals of the public lands and the Outer Continental Shelf
under the provisions of the Mineral Leasing Act, and the Outer
ContinentgJ Shelf Lands Act, which are not payable to a State
or the Reclamation Fund. The portion of any such interest payment
attributable to any amounts previously disbursed to a State, the
Reclamation Fund, or any other recipient designated by law shall
be deducted from the next disbursements to that recipient made
under the applicable law. Such amounts deducted from subsequent
disbursements shall be credited to miscellaneous receipts in the
Treasury.".
(b) LIMITATION ON INTEREST. —Section 111 of the Federal Oil
and Gas Royalty Management Act of 1982, as amended by subsection (a), is further amended by adding at the end the following:
"(i) Upon a determination by the Secretary that an excessive
overpayment (based upon all obligations of a lessee or its designee
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