---
kind: "section"
citation: "30 U.S.C. § 1721a"
title: "30"
title_heading: "Mineral Lands and Mining"
number: "1721a"
heading: "Adjustments and refunds"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/30/1721a"
units:
  - "Chapter 29 — Oil and Gas Royalty Management"
  - "Subchapter I — Federal Royalty Management and Enforcement"
---

# §1721a. Adjustments and refunds

- (a) **Adjustments to royalties paid to Secretary or a delegated State—**
  - (1) If, during the [adjustment](/usc/30/1702.md?p=17) period, a [lessee](/usc/30/1702.md?p=7) or its [designee](/usc/30/1702.md?p=24) determines that an [adjustment](/usc/30/1702.md?p=17) or [refund](/usc/30/1702.md?p=30) request is necessary to correct an [underpayment](/usc/30/1702.md?p=32) or [overpayment](/usc/30/1702.md?p=27) of an [obligation](/usc/30/1702.md?p=25), the [lessee](/usc/30/1702.md?p=7) or its [designee](/usc/30/1702.md?p=24) shall make such [adjustment](/usc/30/1702.md?p=17) or request a [refund](/usc/30/1702.md?p=30) within a reasonable period of time and only during the [adjustment](/usc/30/1702.md?p=17) period. The filing of a [royalty](/usc/30/1702.md?p=14) report which reflects the [underpayment](/usc/30/1702.md?p=32) or [overpayment](/usc/30/1702.md?p=27) of an [obligation](/usc/30/1702.md?p=25) shall constitute prior written notice to the [Secretary](/usc/30/1702.md?p=15) or the applicable [delegated State](/usc/30/1702.md?p=22) of an [adjustment](/usc/30/1702.md?p=17).
  - (2)
    - (A) For any [adjustment](/usc/30/1702.md?p=17), the [lessee](/usc/30/1702.md?p=7) or its [designee](/usc/30/1702.md?p=24) shall calculate and report the interest due attributable to such [adjustment](/usc/30/1702.md?p=17) at the same time the [lessee](/usc/30/1702.md?p=7) or its [designee](/usc/30/1702.md?p=24) adjusts the principle[^1] amount of the subject [obligation](/usc/30/1702.md?p=25), except as provided by [subparagraph (B)](#a-2-B).
    - (B) In the case of a [lessee](/usc/30/1702.md?p=7) or its [designee](/usc/30/1702.md?p=24) who determines that [subparagraph (A)](#a-2-A) would impose a hardship, the [Secretary](/usc/30/1702.md?p=15) or such [delegated State](/usc/30/1702.md?p=22) shall calculate the interest due and notify the [lessee](/usc/30/1702.md?p=7) or its [designee](/usc/30/1702.md?p=24) within a reasonable time of the amount of interest due, unless such [lessee](/usc/30/1702.md?p=7) or its [designee](/usc/30/1702.md?p=24) elects to calculate and report interest in accordance with [subparagraph (A)](#a-2-A).
  - (3) An [adjustment](/usc/30/1702.md?p=17) or a request for a [refund](/usc/30/1702.md?p=30) for an [obligation](/usc/30/1702.md?p=25) may be made after the [adjustment](/usc/30/1702.md?p=17) period only upon written notice to and approval by the [Secretary](/usc/30/1702.md?p=15) or the applicable [delegated State](/usc/30/1702.md?p=22), as appropriate, during an audit of the period which includes the [production](/usc/30/1702.md?p=13) month for which the [adjustment](/usc/30/1702.md?p=17) is being made. If an [overpayment](/usc/30/1702.md?p=27) is identified during an audit, then the [Secretary](/usc/30/1702.md?p=15) or the applicable [delegated State](/usc/30/1702.md?p=22), as appropriate, shall allow a [credit](/usc/30/1702.md?p=21) or [refund](/usc/30/1702.md?p=30) in the amount of the [overpayment](/usc/30/1702.md?p=27).
  - (4) For purposes of this section, the [adjustment](/usc/30/1702.md?p=17) period for any [obligation](/usc/30/1702.md?p=25) shall be the six-year period following the date on which an [obligation](/usc/30/1702.md?p=25) became due. The [adjustment](/usc/30/1702.md?p=17) period shall be suspended, tolled, extended, enlarged, or terminated by the same actions as the limitation period in [section 1724 of this title](/usc/30/1724.md).
- (b) **Refunds—**
  - (1) **In general—** A request for [refund](/usc/30/1702.md?p=30) is sufficient if it—
    - (A) is made in writing to the [Secretary](/usc/30/1702.md?p=15) and, for purposes of [section 1724 of this title](/usc/30/1724.md), is specifically identified as a [demand](/usc/30/1702.md?p=23);
    - (B) identifies the [person](/usc/30/1702.md?p=12) entitled to such [refund](/usc/30/1702.md?p=30);
    - (C) provides the [Secretary](/usc/30/1702.md?p=15) information that reasonably enables the [Secretary](/usc/30/1702.md?p=15) to identify the [overpayment](/usc/30/1702.md?p=27) for which such [refund](/usc/30/1702.md?p=30) is sought; and
    - (D) provides the reasons why the [payment](/usc/30/1702.md?p=28) was an [overpayment](/usc/30/1702.md?p=27).
  - (2) **Payment by Secretary of the Treasury—** The [Secretary](/usc/30/1702.md?p=15) shall certify the amount of the [refund](/usc/30/1702.md?p=30) to be paid under [paragraph (1)](#b-1) to the [Secretary](/usc/30/1702.md?p=15) of the Treasury who shall make such [refund](/usc/30/1702.md?p=30). Such [refund](/usc/30/1702.md?p=30) shall be paid from amounts received as current receipts from sales, bonuses, [royalties](/usc/30/1702.md?p=14) (including interest charges collected under this section) and rentals of the public lands and the Outer Continental Shelf under the provisions of the Mineral Leasing Act [[30 U.S.C. 181](/usc/30/181.md) et seq.] and the Outer Continental Shelf Lands Act [[43 U.S.C. 1331](/usc/43/1331.md) et seq.], which are not payable to a [State](/usc/30/1702.md?p=16) or the Reclamation Fund. The portion of any such [refund](/usc/30/1702.md?p=30) attributable to any amounts previously disbursed to a [State](/usc/30/1702.md?p=16), the Reclamation Fund, or any recipient prescribed by law shall be deducted from the next disbursements to that recipient made under the applicable law. Such amounts deducted from subsequent disbursements shall be credited to miscellaneous receipts in the Treasury.
  - (3) **Payment period—** A [refund](/usc/30/1702.md?p=30) under this subsection shall be paid or denied (with an explanation of the reasons for the denial) within 120 days of the date on which the request for [refund](/usc/30/1702.md?p=30) is received by the [Secretary](/usc/30/1702.md?p=15). Such [refund](/usc/30/1702.md?p=30) shall be subject to later audit by the [Secretary](/usc/30/1702.md?p=15) or the applicable [delegated State](/usc/30/1702.md?p=22) and subject to the provisions of this chapter.
  - (4) **Prohibition against reduction of refunds or credits—** In no event shall the [Secretary](/usc/30/1702.md?p=15) or any [delegated State](/usc/30/1702.md?p=22) directly or indirectly claim or offset any amount or amounts against, or reduce any [refund](/usc/30/1702.md?p=30) or [credit](/usc/30/1702.md?p=21) (or interest accrued thereon) by the amount of any [obligation](/usc/30/1702.md?p=25) the enforcement of which is barred by [section 1724 of this title](/usc/30/1724.md).

## Footnotes

[^1]: So in original. Probably should be “principal”.

## Source credit

(Pub. L. 97–451, title I, § 111A, as added Pub. L. 104–185, § 5(a), Aug. 13, 1996, 110 Stat. 1710.)

## Notes

### Editorial Notes

### References in Text

The Mineral Leasing Act, referred to in subsec. (b)(2), is act Feb. 25, 1920, ch. 85, 41 Stat. 437, which is classified generally to chapter 3A (§ 181 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 181 of this title and Tables.

The Outer Continental Shelf Lands Act, referred to in subsec. (b)(2), is act Aug. 7, 1953, ch. 345, 67 Stat. 462, which is classified generally to subchapter III (§ 1331 et seq.) of chapter 29 of Title 43, Public Lands. For complete classification of this Act to the Code, see Short Title note set out under section 1301 of Title 43 and Tables.

### Statutory Notes and Related Subsidiaries

### Effective Date

Section applicable with respect to production of oil and gas after the first day of the month following Aug. 13, 1996, see section 11 of Pub. L. 104–185, set out as an Effective Date of 1996 Amendment note under section 1701 of this title.

### Applicability

Section not applicable to any privately owned minerals or with respect to Indian lands, see sections 9 and 10 of Pub. L. 104–185, set out as an Applicability of 1996 Amendment note under section 1701 of this title.