[Federal Register: April 28, 2008 (Volume 73, Number 82)]
[Notices]
[Page 22970-22972]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28ap08-74]
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DEPARTMENT OF THE INTERIOR
Minerals Management Service
Notice of Intent To Establish an Indian Oil Valuation Negotiated
Rulemaking Committee
AGENCY: Minerals Management Service, Interior.
ACTION: Notice of intent to establish an Indian Oil Valuation
Negotiated Rulemaking Committee; request for nominees and comments.
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SUMMARY: The Minerals Management Service (MMS) is announcing its intent
to establish an Indian Oil Valuation Negotiated Rulemaking Committee
(Committee). The Committee will develop specific recommendations
regarding proposed revisions to the existing Indian Oil regulations for
oil production from Indian leases, especially the major portion
valuation requirement. The Committee will include representatives of
parties who would be affected by a final rule. The MMS solicits
comments on this initiative and requests interested parties to nominate
representatives for membership on the Committee.
DATES: You must submit written comments and requests for membership on
or before May 28, 2008.
ADDRESSES: Submit written comments to Hyla Hurst, Regulatory
Specialist, Minerals Management Service, Minerals Revenue Management,
P.O. Box 25165, MS 302B2, Denver, Colorado 80225. If you use an
overnight courier service or wish to hand-carry your comments, our
courier address is Building 85, Room A-614, Denver Federal Center, West
6th Ave. and Kipling Blvd., Denver, Colorado 80225. You may also e-mail
your comments to us at mrm.comments@mms.gov. Include the title of this
Federal Register notice in the ``Attention'' line of your comment. Also
include your name and return address. If you do not receive a
confirmation that we have received your e-mail, contact Ms. Hurst at
(303) 231-3495.
FOR FURTHER INFORMATION CONTACT: John Barder, Indian Oil and Gas
Compliance and Asset Management, MMS; telephone (303) 231-3702; fax
(303) 231-3755; e-mail to John.Barder@mms.gov. Mailing address:
Minerals Management Service, Minerals Revenue Management, Compliance
and Asset Management, Indian Oil and Gas Compliance and Asset
Management, P.O. Box 25165, MS 396B2, Denver, Colorado 80225-0165.
SUPPLEMENTARY INFORMATION:
I. Background
The existing rule for valuation of oil produced from Indian leases,
codified at 30 CFR 206.50, was published on March 1, 1988 (53 FR 1184).
Since then, many changes have occurred in the oil market. Also,
concerns have arisen about the need for revised valuation methodologies
to address paragraph 3(c) of standard Indian oil and gas leases, such
as the major portion analysis requirement for valuation of oil
production from Indian leases.
The MMS published proposed rules for Indian oil valuation in
February 1998 (63 FR 7089) and in January 2000 (65 FR 403). Each of
these proposed rules was subsequently withdrawn because of market
changes and the passage of time. In addition, the MMS held a series of
eight public meetings during 2005 to consult with Indian tribes and
individual Indian mineral owners and to obtain information from
interested parties. Then MMS published a third proposed rule in
February 2006 (71 FR 7453). Tribal and industry commenters on the 2006
proposed rule did not agree on most issues regarding oil valuation, and
none of the commenters supported the major portion provisions.
The Royalty Policy Committee Indian Oil Valuation Subcommittee
evaluated the 2006 proposed rule but was unable to reach consensus
about how the Department should proceed. Thus, MMS decided to make only
technical amendments to the existing Indian oil valuation regulations
and to convene a negotiated rulemaking committee to make specific
recommendations regarding the major portion provision. On December 17,
2007, MMS published a final rule that addressed the technical
amendments (72 FR 71231).
II. Statutory Provisions
The Negotiated Rulemaking Act of 1996 (NRA) (5 U.S.C. 561 et seq.);
the Federal Advisory Committee Act (FACA) (5 U.S.C. Appendix 2, section
1 et. seq.); the Indian Mineral Development Act of 1982 (25 U.S.C.
2101-2108); 30 CFR part 206 (2007), 25 CFR part 225 (2007); and Indian
oil and gas lease and agreement terms.
III. The Committee and Its Process
In a negotiated rulemaking, a proposed rule is developed by a
committee composed of representatives of government and the interests
that will be significantly affected by the rule. Decisions are made by
``consensus.''
``[C]onsensus'' means unanimous concurrence among the interests
represented on a negotiated rulemaking committee established under
this subchapter, unless such committee (A) agrees to define such
term to mean a general but not unanimous concurrence; or (B) agrees
upon another specified definition.
5 U.S.C. 562(2)(A) and (B)
The negotiated rulemaking process is initiated by the agency's
identification of interests potentially affected by the rulemaking
under consideration. By this notice, MMS is soliciting comments on this
action.
Following receipt of comments, MMS will establish a negotiated
rulemaking
[[Page 22971]]
committee representing the identified interests to negotiate the
provisions of a proposed rule. The MMS will be a member of the
committee to represent the Federal Government's statutory mission. The
committee will be chaired by a facilitator. After the committee reaches
consensus on the provisions of a proposed rule, MMS will develop a
proposed rule to be published in the Federal Register.
Section 563 of the NRA requires the head of the agency to determine
that the use of the negotiated rulemaking procedure is in the public
interest. In making such a determination, the agency head must consider
certain factors. The MMS has determined a negotiated rulemaking is in
the public interest because:
1. A rule is needed. Royalty payors have considerable difficulty in
complying with the current regulations.
2. A limited number of identifiable interests will be significantly
affected by the rule. Such interests are oil and gas companies who
produce oil and pay royalties on Indian leases, and Indian tribes and
individual Indian mineral owners who receive royalties from oil
produced from Indian leases located on their lands.
3. There is a reasonable likelihood that a committee can be
convened with a balanced representation of persons who can adequately
represent the interests discussed in paragraph (2), and MMS will be
able to determine that the interests are willing to negotiate in good
faith to attempt to reach a consensus on provisions of a proposed rule.
4. There is a reasonable likelihood that the committee will reach
consensus on a proposed rule within a fixed period of time.
5. The use of negotiated rulemaking will not unreasonably delay the
development of a proposed rule if time limits are placed on the
negotiation. It is anticipated that negotiation will expedite a
proposed rule and ultimately the acceptance of a final rule.
6. The MMS is making a commitment that it will ensure the committee
has sufficient resources to complete its work in a timely fashion.
7. The MMS, to the maximum extent possible, consistent with its
statutory mission and the legal obligations of the agency, will seek to
use the consensus of the committee as the basis for a proposed rule for
public notice and comment.
IV. Negotiated Rulemaking Procedures
In compliance with FACA and NRA, MMS will use the following
procedures and guidelines for this negotiated rulemaking. The MMS may
modify them in response to comments received on this notice or during
the negotiation process.
A. Committee Formation
A committee will be formed and operated in full compliance with the
requirements of FACA and NRA and specifically under the guidelines of
its charter.
B. Interests Involved
The MMS intends to ensure full and adequate representation of those
interests that are expected to be significantly affected by the
proposed rule. Under Section 562(5) of the NRA, ``interest means, with
respect to an issue or matter, multiple parties which have a similar
point of view or which are likely to be affected in a similar manner.''
As discussed above, MMS believes the interests significantly affected
are oil and gas companies who produce oil and pay royalties on Indian
leases, and Indian tribes and individual Indian mineral owners who
receive royalties from oil produced from Indian leases located on their
lands.
C. Members
The committee should not exceed 25 members, and MMS prefers 15. The
MMS will provide at least two members plus a facilitator. The
facilitator will not count against the membership.
Section 568(c) of the NRA states:
Members of a negotiated rulemaking committee shall be
responsible for their own expenses of participation in such
committee, except that an agency may, in accordance with section
7(d) of the FACA, pay for a member's reasonable travel and per diem
expenses, expenses to obtain technical assistance, and a reasonable
rate of compensation, if
(1) Such member certifies a lack of adequate financial resources
to participate in the committee; and
(2) The agency determines that such member's participation in
the committee is necessary to assure an adequate representation of
the member's interest.
Therefore, MMS commits to pay the travel and per diem expenses of
committee members if appropriate under the NRA and the Federal travel
regulations.
D. Request for Nominations
The MMS solicits nominations for appointment to membership on the
committee. Members can be individuals or representatives of
organizations. An organization should identify the individual who will
be its representative.
Committee members need to have authorization to negotiate on behalf
of their interests and be willing to negotiate in good faith. MMS
interprets good faith to include: (1) A willingness to bring all issues
to the table; and (2) not to discuss the issues in other forums. Good
faith also includes a willingness to move away from taking adversarial
positions and instead to explore openly all relevant and productive
ideas that may emerge from the discussion of the committee.
Authorization for each application or nomination must include:
1. The name of the applicant or nominee and a description of the
interests such person will represent;
2. A description of the person's qualifications and expertise
regarding those interests;
3. Whether the participant will be seeking agency resources to
participate on the committee; and
4. A written commitment of the applicant or nominee to actively
participate in good faith in the negotiated rulemaking and keep all
issues at the table.
E. Tentative Schedule
When MMS publishes a notice establishing the committee and
appointing its members, it will include a proposed agenda and schedule
for completing the work of the committee, including a date for the
first meeting. The committee will agree on dates, times, and locations
of future meetings. The MMS plans to terminate the committee if it does
not reach consensus on the provisions of a proposed rule within 24
months of the first meeting. The committee may end earlier if the
committee itself so recommends.
V. Request for Nominations and Comments
To comply with negotiated rulemaking procedures, MMS invites
written comments on this initiative and nominations for the negotiated
rulemaking committee. Written comments are specifically requested on
the suitability of using the negotiated rulemaking procedure to develop
a proposed valuation rule for oil production from Indian leases.
Nominations are for all interests that could be affected by an Indian
oil valuation rulemaking and must comply with paragraph IV, D, Request
for Nominations, of this notice. All written comments and nominations
must be sent to an appropriate address as listed in the ADDRESSES
section of this notice.
Certification
For the above reasons, I hereby certify that the Indian Oil
Valuation Negotiated Rulemaking Committee is in the public interest.
[[Page 22972]]
Dated: April 16, 2008.
C. Stephen Allred,
Assistant Secretary for Land and Minerals Management.
[FR Doc. E8-9248 Filed 4-25-08; 8:45 am]
BILLING CODE 4310-MR-P
