Notice to Lessees No. 5 Gas Royalty Act of 1987

(House agreed to Senate amendment with an amendment)

Notice to Lessees No. 5 Gas Royalty Act of 1987 - Sets forth the calculations to be used in determining the value for royalty purposes of gas production from Federal onshore or Indian oil and gas leases during the period January 1, 1982, through July 31, 1986, which is within the coverage of certain provisions of the Notice of Lessees and Operators of Federal and Indian Onshore Oil and Gas leases Published May 4, 1977, (NTL-5). Prescribes the written documentation which must be furnished in order for the Secretary of the Interior to make royalty value determinations. Excludes from the application of this Act certain lessees or royalty payors who received less than the highest applicable price through failure to collect certain amounts rather than because of market conditions.

Directs the Secretary to: (1) publish in the Federal Register and send to each lessee or royalty payor of record for any Federal onshore oil and gas lease and for any Indian oil and gas lease a notice of the enactment and provisions of this Act; (2) conduct a case-by-case audit of such leases to determine their payment status and implement appropriate payments or refunds; and (3) report to each Indian Tribe holding an Indian oil and gas lease within the coverage of NTL-5 the difference between royalties computed under NTL-5 and those computed under this Act. Prescribes procedures for refunding royalties previously paid for either Federal onshore or Indian oil and gas leases. Sets forth recordkeeping requirements for lessees and payors relating to the value of gas production for the period January 1, 1982, through July 31, 1986.