Standardized oil and gas transportation allowance

(a) In general Not later than one year after the date of enactment of this Act, the Secretary of the Interior, acting through the Office of Natural Resources Revenue, shall issue or revise regulations to establish standardized transportation allowances for the calculation of oil and gas royalties for— (1) each Bureau of Land Management oil and gas administrative boundaries; and (2) each Outer Continental Shelf planning area in which oil or gas is produced. (b) Maximum transportation allowance Each standardized transportation allowance established by regulation under subsection (a) shall not exceed the lesser of— (1) the amount that is equal to 30 percent of the total value of the oil and gas that is produced; and (2) the amount that is equal to actual and reasonable transportation costs.