PUBLIC LAW 104-185—AUG. 13, 1996 110 STAT. 1715 (2) CLERICAL AMENDME>rr. —The table of contents in section 1 of such Act (30 U.S.C. 1701) is amended by adding after the item relating to section 115 the following new item: "Sec. 116. Assessments.". (g) LIABILITY FOR ROYALTY PAYMENTS. —Section 102(a) of the Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1712(a)) is amended to read as follows: "(a) In order to increase receipts and achieve effective collections of royalty and other payments, a lessee who is required to make any royalty or other payment under a lease or under the mineral leasing laws, shall make such payments in the time and manner as may be specified by the Secretary or the applicable delegated State. A lessee may designate a person to make all or part of the payments due under a lease on the lessee's behalf and shall notify the Secretary or the applicable delegated State in writing of such designation, in which event said designated person may, in its own name, pay, offset or credit monies, make adjustments, request and receive refunds and submit reports with respect to payments required by the lessee. Notwithstanding any other provision of this Act to the contrary, a designee shall not be liable for any payment obligation under the lease. The person owning operating rights in a lease shall be primarily liable for its pro rata share of payment obligations under the lease. If the person owning the legal record title in a lease is other than the operating rights owner, the person owning the legal record title shall be secondarily liable for its pro rata share of such payment obligations under the lease.". (h) CLERICAL AMENDMENTS.—(1) The heading of section 111 of the Federal Oil and Gas Royalty management Act of 1982 (30 U.S.C. 1721) is amended to read as follows: "ROYALTY TERMS AND CONDITIONS, INTEREST, AND PENALTIES". (2) The item relating to section 111 in the table of contents in section 1 of such Act (30 U.S.C. 1701) is amended to read as follows: "Sec. 111. Royalty terms and conditions, interest, and penalties.". SEC. 7. ALTERNATIVES FOR MARGINAL PROPERTIES. (a) IN GENERAL. —The Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1701 et seq.), as amended by section 6 of this Act, is further amended by adding at the end the following: "SEC. 117. ALTERNATIVES FOR MARGINAL PROPERTIES. 30 USC 1726. "(a) DETERMINATION OF BEST INTERESTS OF STATE CONCERNED AND THE UNITED STATES.— The Secretary and the State concerned, acting in the best interests of the United States and the State concerned to promote production, reduce administrative costs, and increase net receipts to the United States and the States, shall jointly determine, on a case by case basis, the amount of what marginal production from a lease or leases or well or wells, or parts thereof, shall be subject to a prepayment under subsection (b) or regulatory relief under subsection (c). If the State concerned does not consent, such prepa3mtients or regulatory relief shall not be made available under this section for such marginal production: Provided, That if royalty pa3anents from a lease or leases, or well or wells are not shared with any State, such determination shall be made solely by the Secretary.