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Minerals Revenue Reporter Handbook

Release 4.0, dated June 4, 2020
View Complete Handbook

Any use of trade, product, or firm names is for descriptive purposes only and does not imply endorsement by the U.S. Department of the Interior. Names of persons and companies used in examples are fabricated and intended for illustration purposes only.

Chapter Section Title Page
Title page

Chapters

1 Chapter 1: About This Handbook 1-1
1.1 Naming Conventions 1-1
1.2 Distribution 1-1
1.3 Maintenance 1-2
1.4 Related Handbooks and Regulations 1-2
2 Chapter 2: Basic Reporting Principles 2-1
2.1 Sources of Production from which ONRR Expects to Receive Royalties 2-1
2.2 When Form ONRR-2014 Is Required 2-2
2.3 Leases Reported to ONRR 2-3
2.4 Indian Leases Not Reported to ONRR 2-4
2.5 Authorized Reporting Formats 2-4
2.6 Record Retention Requirement 2-4
2.7 Payment Requirements 2-5
2.8 Due Dates for Reports and Payments 2-5
2.9 Report Acceptance 2-6
2.10 Reporting Royalties on Leases within the State of Oklahoma 2-6
2.11 Takes or Entitlements--Definitions and Examples 2-7
3 Chapter 3: Electronic Form ONRR-2014 Field Descriptions and Explanations 3-1
3.1 Example Form ONRR-2014 3-1
3-1 Example of Report of Sales and Royalty Remittance (Form ONRR-2014) (figure) 3-2
3.2 Field Information 3-3
3.2.1 Header Fields 3-3
3.2.2 Line Item Reporting Fields 3-5
3.2.3 Trailer Fields 3-14
4 Chapter 4: Reporting Instructions by Transaction Code 4-1
4.1 Royalty Due 4-2
4.1.1 Transaction Code 01, Royalty Due 4-2
4.1.1.1 Reporting Drip (Pipeline Condensate, Retrograde Condensate, Drip Condensate, Drip Liquid, Scrubber/Pipeline Drip) 4-2
4-1 How to Report Royalty (Transaction Code 01) on Form ONRR-2014 (figure) 4-10
4.1.2 Transaction Code 10, Compensatory Royalty Payment 4-11
4.2 Estimated Royalty Payment 4-18
4.2.1 Transaction Code 03, Estimated Royalty Payment 4-18
4.3 Minimum Royalty 4-22
4.3.1 Transaction Code 02, Minimum Royalty Payment 4-22
4.3.2 Transaction Code 52, Recoup Minimum Royalty Paid in Advance 4-25
4.4 Rentals 4-29
4.4.1 Transaction Code 04, Rental Payment 4-29
4.4.2 Transaction Code 05, Advance Rental Credit 4-32
4.4.3 Transaction Code 25, Recoup Advance Rental Credit 4-35
4.5 Recoupment of Indian Overpayments 4-39
4.5.1 Transaction Code 50, Indian Recoupable Balance 4-39
4.5.2 Transaction Code 51, Indian Recoupment Taken 4-40
4.6 Other Royalty Transactions 4-42
4.6.1 Transaction Code 31, Contract Settlement Payment 4-42
4.6.2 Transaction Code 37, Royalties Due in Lieu of Severance Tax 4-49
4.6.3 Transaction Code 38, Additional Royalties Due for 6a9 Leases 4-52
4.6.4 Transaction Code 39, Net Profit Share--Unprofitable 4-55
4.6.5 Transaction Code 40, Net Profit Share--Profitable 4-59
4.6.6 Transaction Code 55, Offshore Deep Water Royalty Relief 4-63
4.7 Allowances 4-67
4.7.1 Transaction Code 11, Transportation Allowance 4-67
4.7.2 Transaction Code 15, Processing Allowance 4-71
4.7.3 Transaction Code 42, Net Revenue Share Lease, Allotment for Operating Costs 4-75
4.8 Tax Credit 4-79
4.8.1 Transaction Code 12, Tax Credit 4-79
4.9 Reimbursements 4-85
4.9.1 Transaction Code 14, Tax Reimbursement Payment 4-85
4.9.2 Transaction Code 53, Effluent Injection Reimbursement 4-89
4.9.3 Transaction Code 54, Geothermal Field Operations Reimbursement 4-93
4.10 Fees 4-93
4.10.1 Transaction Code 16, Well Fees 4-93
4.10.2 Transaction Code 17, Gas Storage Agreement--Flat Fee 4-96
4.10.3 Transaction Code 18, Gas Storage Agreement--Injection Fee 4-99
4.10.4 Transaction Code 19, Gas Storage Agreement--Withdrawal Fee 4-102
4.11 Quality and/or Gravity Bank Adjustment 4-105
4.11.1 Transaction Code 13, Quality and Gravity Adjustments 4-105
4.12.1 Transaction Code 21, Interest Amount Due ONRR 4-109
5 Chapter 5: Interest for Federal and Indian Oil and Gas Leases 5-1
5.1 Interest Liability 5-1
5.2 Avoiding Late Payment Interest 5-2
5.3 Interest and Estimates 5-2
5.4 Interest and Adjustment Reason Code 35 (ARC 35) 5-4
5.5 What Is the Running Balance Method (Federal Oil and Gas Only)? 5-4
5.6 Calculating Interest 5-6
5-1 Interest Invoice (figure) 5-7
5-2 Interest Schedule (figure) 5-8
5-3 Estimate Exception Bill Details (figure) 5-9
5-4 Late Payment Allocation (Payment Detail) (figure) 5-10
5-5 Late Payment Allocation--Prebill (figure) 5-11
6 Chapter 6: Adjustments, Recoupments, and Refunds 6-1
6.1 Adjustments 6-1
6.1.1 General Reporting Principles for Adjustments 6-2
6.1.2 Reporting Examples 6-3
6.2 Recoupments and Refunds 6-7
6.2.1 Recouping Overpayments 6-7
6.2.1.1 Recoupment Situations 6-7
6.2.1.2 How to Recoup Overpayments 6-7
6.2.2 Requesting a Refund of Federal Oil and Gas Leases 6-12
6.2.3 Recovering Overpayments on Indian Leases 6-13
7 Chapter 7: Reporting Geothermal Royalty and Other Geothermal Lease Payments 7-1
7.1 Introduction 7-1
7.2 How To Use This Chapter 7-1
7.3 Class I Leases 7-2
7.3.1 Geothermal Lease Financial Obligations Reported on Form ONRR-2014 (Report of Sales and Royalty Remittance) 7-2
7.3.2 Important Terms to Know 7-2
7.3.3 Rents 7-3
7.3.4 Minimum Royalty 7-6
7.3.5 Production Royalty 7-8
7.4 Class II Leases 7-24
7.4.1 Geothermal Lease Term Financial Obligations Reported on Form ONRR-2014 (Report of Sales and Royalty Remittance) 7-24
7.4.2 Important Terms to Know 7-24
7.4.3 Rents 7-25
7.4.3.1 Credit for In-Kind Deliveries of Electricity to States or Counties 7-27
7.4.3.2 Rental Credits 7-27
7.4.3.3 Site Licenses 7-29
7.4.3.4 Credit for In-Kind Deliveries of Electricity to States or Counties 7-37
7.4.3.5 Advanced Royalties for Cessation of Production 7-42
7.5 Class III Leases 7-44
7.5.1 Geothermal Lease Financial Obligations Reported on Form ONRR-2014 (Report of Sales and Royalty Remittance) 7-44
7.5.1.1 Important Terms to Know 7-44
7.5.1.2 Rents 7-45
7.5.1.3 Rental Credits 7-47
7.5.1.4 Site Licenses 7-49
7.5.1.5 Production Royalty 7-49
7.5.1.6 Credit for In-Kind Deliveries of Electricity to States or Counties 7-57
7.5.1.7 Advanced Royalties for Cessation of Production 7-62
8 Chapter 8: Electronic Reporting 8-1
8.1 Electronic Reporting Requirements 8-1
8.2 Electronic Reporting Web Site 8-2
8.3 Form ONRR-2014 CSV Format 8-2
8.3.1 Format Requirements 8-3
8.3.2 CSV Record Layout 8-4
8.4 Form ONRR-2014 ASCII Format 8-8
8.4.1 Format Requirements 8-8
8.4.2 ASCII Record Layout 8-9
9 Chapter 9: Online Rentals 9-1
9.1 Online Rental Reporting 9-1
9.2 Electronic Reporting Website 9-2
9.3 Form ONRR-2014 ASCII Format 9-2
9.3.1 Form Requirements 9-2

Appendices

A Appendix A: Contact Information A-1
B Appendix B: ONRR Lease, Unit, or Communitization Agreement Number B-1
B.1 ONRR Lease Conversions B-1
B-1 Valid financial accounting system lease prefixes (table) B-1
B.1.1 Offshore Lease Prefixes B-4
B-2 Lease prefix conversions for offshore (table) B-4
B.1.2 Onshore Lease Prefixes B-4
B-3 Lease prefix conversions for onshore (table) B-5
B.2 Unit or Communitization Agreement Conversions B-10
B.2.1 Offshore Agreement Conversion B-10
B-4 Offshore agreement prefix conversion (table) B-11
B.2.2 Onshore Agreement Conversion B-12
B-5 BLM State and District Offices (table) B-15
B-6 API State Codes (table) B-16
B-7 Onshore agreement prefix conversions (table) B-17
C Appendix C: Reporting Product Codes C-1
C.1 Oil and Gas C-1
C.2 Geothermal C-2
D Appendix D: Reporting Sales Type Codes D-1
E Appendix E: Reporting Transaction Codes E-1
F Appendix F: Reporting Adjustment Reason Codes F-1
G Appendix G: Reporting Payment Method Codes G-1

Supplemental Reporting Guidance

Glossary
Abbreviations
Multi-Unit Well Agreements
Overlapping Agreement Training 2020 Handbook
Form CMP-2014 Industry FAQ
Form ONRR-2014 Codes
Chapter 3 - Paper Form ONRR-2014 Field Descriptions and Explanations
Electronic Payment Information
Royalty Reporting (Except Solid Minerals)
Cross-Referenced Lease & Agreement Number Lists
ONRR Contacts

For help with the handbook content, please contact

Mary Dietrick
(303) 231-3318