H.R. 10256 — Taxpayer Relief from Big Oil Act

This section repeals royalty relief for ultra-deep gas wells in shallow Gulf of Mexico waters under 42 U.S.C. 15904 and voids all prior regulations issued under that authority. It removes Alaska planning areas from royalty relief eligibility under the Outer Continental Shelf Lands Act and eliminates exploration consistency requirements and related subsections for the Naval Petroleum Reserve in Alaska. It also requires annual reports to Congress on the number of onshore and offshore royalty relief applications, approvals, wells, production volumes, relief periods, new royalty rates, and revenue effects.

This section requires the Secretary of the Interior, acting through the Office of Natural Resources Revenue, to establish standardized transportation allowances for calculating oil and gas royalties within one year of enactment. The allowances apply to each Bureau of Land Management oil and gas administrative boundary and each Outer Continental Shelf planning area where production occurs, and may not exceed the lesser of 30 percent of the value of the oil and gas produced or actual and reasonable transportation costs.