§ 1206.157 - What interest and penalties apply if I improperly report a transportation allowance?

§ 1206.157 What interest and penalties apply if I improperly report a transportation allowance?

Cross Reference

Link to an amendment published at 86 FR 4656, Jan. 15, 2021.

Cross Reference

This amendment was delayed until Apr. 16, 2021, at 86 FR 9289, Feb. 12, 2021.

Cross Reference

This amendment was further delayed until Nov. 1, 2021, at 86 FR 20032, Apr. 16, 2021.

Cross Reference

This amendment was withdrawn effective Nov. 1, 2021, at 86 FR 54072, Sept. 30, 2021.

(a)

(1) If ONRR determines that you took an unauthorized transportation allowance, then you must pay any additional royalties due, plus late payment interest calculated under §§ 1218.54 and 1218.102 of this chapter.

(2) If you understated your transportation allowance, you may be entitled to a credit, with interest.

(b) If you deduct a transportation allowance on form ONRR-2014 that exceeds 50 percent of the value of the gas, residue gas, or gas plant products transported, you must pay late payment interest on the excess allowance amount taken from the date when that amount is taken until the date when you pay the additional royalties due.

(c) If you improperly net a transportation allowance against the sales value of the residue gas, gas plant products, or unprocessed gas instead of reporting the allowance as a separate entry on form ONRR-2014, ONRR may assess a civil penalty under 30 CFR part 1241.