CMM Interstate & Federal Regulations 4

Question 1

Under 30 CFR Part 1218, royalties on federal leases must be paid by what date each month?

Accepted Answer

The 15th of the month following production

Answer

ONRR regulations at 30 CFR Part 1218 require royalties to be paid by the 15th day of the month following the month of production.

Question 2

Which act established the Office of Natural Resources Revenue (ONRR) and its authority to collect royalties from federal mineral leases?

Accepted Answer

Federal Oil and Gas Royalty Management Act (FOGRMA)

Answer

FOGRMA, enacted in 1982, established the framework for federal royalty management and led to creation of the agency now known as ONRR.

Question 3

An interstate natural gas pipeline company seeking to construct a new pipeline must obtain a Certificate of Public Convenience and Necessity from:

Accepted Answer

FERC

Answer

FERC issues Certificates of Public Convenience and Necessity under Section 7 of the Natural Gas Act for new interstate pipeline construction.

Question 4

Under federal regulations, a 'suspension of operations' on a federal oil and gas lease is typically granted for a maximum of:

Accepted Answer

5 years, with extensions possible

Answer

BLM may grant suspensions of operations and production for up to 5 years, with possible extensions for extenuating circumstances.

Question 5

The Split Estate situation in the western U.S. occurs when:

Accepted Answer

The federal government owns the mineral rights but a private party owns the surface rights

Answer

Split estate refers to parcels where the federal government owns subsurface mineral rights while private individuals or entities own the surface.

(CMM) Certified Mineral Manager Practice Test