About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline

B-205877 1 (1982-03-16)

handle is hein.gao/gaobadkdt0001 and id is 1 raw text is: 


931CIION


4


FILE: B-205877


DATEi


March 16, 1982


MATTER OF; Refurns by Department of Interior of Excess Royalty
               Poyments


DIGEST: 1,


Ovepayents made under royaltr oil sales contracts
between the C-overnment and small refiners, under
sectI6n 27 of the Outer Continental Shelf Lands Act,
as anended, may not be refunded under, section 10 of
the Act, because they were not covered into the
Treasury.under section 9 of the Act, such payments
were not-made under any lease on the Outer Continen-
tal Shelf as required in section 9, even though the
oil being sold was extracted pursuant to leases
issued under that section. Pefunds from the United
States Treasury under section 10 may only be made for
funds covered into the Treasury under section 9.


            2, Royalty payments collected by-the DepartwTint of the
                Interltor under section 27 of the Outer Continental
                Shelf F4ands Act, as amended, way be refunded from the
                permanent appropriation created by 31 US.C. § 725c-l
                (1976),upon a determination by the Department of the
                Interior that payments exceeded the amount due the
                Goverrment, if otherwise proper. Refunds may be made
                from tat apprbpfiation when fundswere erroneously
                coverc' into the Treasury as miscellaneous receipts,
                and their refund is not properly chargeable to some
                other appropriation.

     This decision is in response to a request from the Solicitor of
the Department of the Interior. The Solicitor asks whether Interior
may properly use the permanent appropriatibn 6ontained in 31 U.s.c.
s 725q-1 (1976)to effect the refund of overpayments made by refiners
purchasing Federal royalty oil producLd from the Outer Continental
Shelf.  For the reasons indicated below, we conclude that the perma-
nent appropriation is available for these refunds if Interior deter-
mines that refunds are, in fact, due. This decision, however, does
not rule on the propriety of the refund claims themselves.
   ...In accordance with the provisions of. section 8 of the Outer
continental Shelf Lds' Act, as amended,, 43 U.S.C. § 1337 (Supp i.i
1980), Interior (through the U.S. Geological Survey) leases to private
fixms the right to extract crude oil from the Outer Continental Shelf.
Under section 27 of the Act, as amended, 43 U.S.C. s 1353(b) (Supp Ill
1980), Interior takes from lessees some of the oil extracted under
these leases as payment in kind. That oil is sold to small refiners
in order to assure them of a constant supply, in times of shortage.
The Solicitor advises us that Interior routinely bills the small


... -I , f. .--


THECOMPTROLLW GENERAL
OF THE UNITED STATEB
WASHINGTON, OO, 20548

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Already a HeinOnline Subscriber?

profiles profiles most