[Federal Register: March 8, 2007 (Volume 72, Number 45)]
[Notices]
[Page 10552-10553]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08mr07-89]
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DEPARTMENT OF THE INTERIOR
Minerals Management Service
Notice Terminating the Exclusion of Indian Allotted Leases in the
Uintah and Ouray Reservation From Valuation Under 30 CFR 206.172
AGENCY: Minerals Management Service, Interior.
ACTION: Notice.
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SUMMARY: The Minerals Management Service (MMS) with Bureau of Indian
Affairs (BIA) concurrence is terminating the exclusion from valuation
under the rules at 30 CFR 206.172 for gas produced from the Ute
allotted leases in the Uintah and Ouray Reservation (Reservation),
Utah. The final rule was published in the Federal Register on August
10, 1999 (64 FR 43506).
DATES: Effective Date: May 1, 2007.
FOR FURTHER INFORMATION CONTACT: John Barder, Manager, San Juan Basin
Region, Indian Oil and Gas Compliance and Asset Management, Minerals
Revenue Management, Minerals Management Service, P.O. Box 25165, MS
396B2, Denver, CO 80225-0165, telephone number (303) 231-3702, fax
number (303) 231-3755, e-mail john.barder@mms.gov.
SUPPLEMENTARY INFORMATION: The MMS published in the Federal Register on
August 10, 1999 (64 FR 43506), a final rule titled ``Amendments to Gas
Valuation Regulations for Indian Leases'' with an effective date of
January 1, 2000. Indian leases in the Reservation were excluded from
index-based valuation (Sec. 206.172). This exclusion was based on the
results of a cost benefit analysis MMS performed in 1999. In the 1999
cost benefit analysis, MMS estimated individual Indian mineral owners
would receive more revenue under the non-index-based valuation
methodology (Sec. 206.174) than under the index-based valuation
methodology (Sec. 206.172).
Effective January 2000, MMS has valued gas production from the
Reservation under the non-index-based valuation methodology at Sec.
206.174. However, MMS recently performed a cost benefit analysis for
calendar years 2004 through 2005 and estimated that revenues using the
index-based valuation formula at Sec. 206.172 exceed the estimated
revenues using the non-index-based valuation method at Sec. 206.174.
Therefore, as required under Sec. 206.172(g), MMS received written
concurrence from BIA to terminate the exclusion from index-based
valuation of gas production from Indian allotted leases in the
Reservation.
As a result, gas production from Ute allotted leases in the
Reservation must be valued under the index-based valuation method
(Sec. 206.172), beginning with production on the first day of the
second month following the date MMS publishes notice of its decision in
the Federal Register. Lessees must value gas production from Ute
allotted leases in the Reservation on the index-based valuation formula
at Sec. 206.172(d) using MMS-approved publications and indexes for the
Central Rocky Mountain Index Zone to determine the index zone price; or
lessees may obtain the index-based values from the MRM Internet Web
site at: http://www.mrm.mms.gov.
Approved publications and index pricing points for the Central
Rocky Mountain Index Zone are shown in the following table:
Approved Publications and Index Pricing Points for the Central Rocky Mountain Index Zone
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MMS-approved publications
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Index zone Platts gas NGI's Index-pricing points
daily price bidweek
guide survey
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Central Rocky Mountains...................... X ............ Kern River Gas Trans. Co. for
Wyoming.
X ............ Northwest Pipeline Corp. for Rocky
Mountains.
X ............ Questar Pipeline Co. for Rocky
Mountains.
X ............ Colorado Interstate Gas Co. for Rocky
Mountains.
............ X Rocky Mountains
CIG.
Questar.
Kern River.
Northwest Domestic.
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[[Page 10553]]
Dated: January 16, 2007.
Lucy Querques Denett,
Associate Director for Minerals, Revenue Management.
[FR Doc. E7-4150 Filed 3-7-07; 8:45 am]
BILLING CODE 4310-MR-P
