[Title 33 CFR 135.103]
[Code of Federal Regulations (annual edition) - July 1, 2005 Edition]
[Title 33 - NAVIGATION AND NAVIGABLE WATERS]
[Chapter I - COAST GUARD, DEPARTMENT OF HOMELAND SECURITY (CONTINUED)]
[Subchapter M - MARINE POLLUTION FINANCIAL RESPONSIBILITY AND COMPENSATION]
[Part 135 - OFFSHORE OIL POLLUTION COMPENSATION FUND]
[Subpart B - Levy of Fees]
[Sec. 135.103 - Levy and payment of barrel fee on OCS oil.]
[From the U.S. Government Printing Office]


33NAVIGATION AND NAVIGABLE WATERS22005-07-012005-07-01falseLevy and payment of barrel fee on OCS oil.135.103Sec. 135.103NAVIGATION AND NAVIGABLE WATERSCOAST GUARD, DEPARTMENT OF HOMELAND SECURITY (CONTINUED)MARINE POLLUTION FINANCIAL RESPONSIBILITY AND COMPENSATIONOFFSHORE OIL POLLUTION COMPENSATION FUNDLevy of Fees
Sec. 135.103  Levy and payment of barrel fee on OCS oil.

    (a) A fee of $.03 per barrel is levied on all oil produced on the 
OCS and is imposed upon the owner of the oil when such oil is produced.
    (b) The owner of oil obtained from the OCS shall, for the purpose of 
computing the barrel fee levied in paragraph (a) of this section, 
measure OCS oil production by employing the methods and criteria of the 
Minerals Management Service contained in 30 CFR 250.180.
    (c) The barrel fee levied in paragraph (a) of this section applies 
whenever the unobligated Fund balance is less than $200,000,000.

[[Page 62]]

    (d) Payment of the fee levied in paragraph (a) of this section is 
made in accordance with the fee collection regulations of the IRS at 26 
CFR part 301, Sec. 301.9001. Federal government entitlement to royalty 
oil does not constitute ownership of oil at time of production. The Fund 
Administrator advises the IRS when the unobligated Fund balance requires 
starting or stopping the collection of the barrel fee levied in this 
section, so the IRS may provide appropriate notice to affected owners of 
OCS oil.

[CGD 88-050, 53 FR 52997, Dec. 30, 1988, as amended by CGD 90-005, 55 FR 
17268, Apr. 24, 1990]