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Years 2005 through Current Year
The Federal Oil and Gas Royalty Simplification and Fairness Act of 1996 (RSFA), requires MMS to pay interest on federal oil and gas royalty overpayments. The RSFA also allows royalty reporters to calculate interest on royalties and to report this interest on the Report of Sales and Royalty Remittance, (Form MMS-2014).
This reporting option applies solely to federal oil and gas leases and to reports for sales months January 1997 and later. Reporters may begin reporting interest on overpayments and underpayments on Form MMS-2014 for the October 1997 report month.
Underpayment interest on solid mineral and geothermal leases is calculated as simple interest using the United States Treasury Current Value of Funds Rate. Underpayment interest on oil and gas leases is calculated as compound interest using the Internal Revenue Service underpayment rate for corporate tax payers. Overpayment interest on oil and gas leases is calculated as compound interest using the Internal Revenue Service overpayment rate for corporate tax payers.
The following table contains the interest rates used to calculate underpayment and overpayment interest.
Interest Table for Years 1997 through 1999
Interest Table for Years 2000 through 2004
Rates Used to Calculate Interest | ||||
---|---|---|---|---|
Late Payments and Underpayments | Overpayments | |||
Period | Indian Leases |
Solid Mineral and Geothermal Leases * |
Federal Oil and Gas Leases |
Federal Oil and Gas Leases |
01-01-2005 thru 03-31-2005 |
5.0% | 1.0% | 5.0% | 4.0% |
04-01-2005 thru 06-30-2005 |
6.0% | 1.0% | 6.0% | 5.0% |
07-01-2005 thru 09-30-2005 |
6.0% | 1.0% | 6.0% | 5.0% |
10-01-2005 thru 12-31-2005 |
7.0% | 1.0% | 7.0% | 6.0% |
01-01-2006 thru 03-31-2006 |
7.0% | 2.0% | 7.0% | 6.0% |
04-01-2006 thru 06-30-2006 |
7.0% | 2.0% | 7.0% | 6.0% |
07-01-2006 thru 09-30-2006 |
8.0% | 4.0% | 8.0% | 7.0% |
10-01-2006 thru 12-31-2006 |
8.0% | 4.0% | 8.0% | 7.0% |
01-01-2007 thru 03-31-2007 |
8.0% | 4.0% | 8.0% | 7.0% |
04-01-2007 thru 06-30-2007 |
8.0% | 4.0% | 8.0% | 7.0% |
07-01-2007 thru 09-30-2007 |
8.0% | 4.0% | 8.0% | 7.0% |
10-01-2007 thru 12-31-2007 |
8.0% | 4.0% | 8.0% | 7.0% |
01-01-2008 thru 03-31-2008 |
7.0% | 5.0% | 7.0% | 6.0% |
04-01-2008 thru 06-30-2008 |
6.0% | 5.0% | 6.0% | 5.0% |
07-01-2008 thru 09-30-2008 |
5.0% | 3.0% | 5.0% | 4.0% |
10-01-2008 thru 12-31-2008 |
6.0% | 3.0% | 6.0% | 5.0% |
01-01-2009 thru 03-31-2009 |
5.0% | 3.0% | 5.0% | 4.0% |
04-01-2009 thru 06-30-2009 |
4.0% | 3.0% | 4.0% | 3.0% |
07-01-2009 thru 09-30-2009 |
4.0% | 3.0% | 4.0% | 3.0% |
10-01-2009 thru 12-31-2009 |
4.0% | 3.0% | 4.0% | 3.0% |
01-01-2010 thru 03-31-2010 |
4.0% | 1.0% | 4.0% | 3.0% |
04-01-2010 thru 06-30-2010 |
4.0% | 1.0% | 4.0% | 3.0% |
* Solid Minerals interest rates are calculated as simple interest.
If you have interest calculation questions, please call Financial Management Services at: 1-800-433-9801.