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Notice

Major Portion Prices and Due Date for Additional Royalty Payments on Indian Gas Production in Designated Areas Not Associated With an Index Zone

Document Details

Information about this document as published in the Federal Register.

Published Document

This document has been published in the Federal Register. Use the PDF linked in the document sidebar for the official electronic format.

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AGENCY:

Minerals Management Service (MMS), Interior.

ACTION:

Notice of major portion prices for calendar year 2007.

SUMMARY:

Final regulations for valuing gas produced from Indian leases, published August 10, 1999, require MMS to determine major portion prices and notify industry by publishing the prices in the Federal Register. The regulations also require MMS to publish a due date for industry to pay additional royalty based on the major portion prices. This notice provides the major portion prices for the 12 months of 2007.

DATES:

The due date to pay additional royalties based on the major portion prices is November 10, 2009.

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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; or Mike Curry, Indian Oil and Gas Compliance and Asset Management, MMS; telephone (303) 231-3741; FAX (303) 231-3755; e-mail to Michael.Curry@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.

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SUPPLEMENTARY INFORMATION:

On August 10, 1999, MMS published a final rule titled “Amendments to Gas Valuation Regulations for Indian Leases,” (64 FR 43506) with the effective date January 1, 2000. The gas regulations apply to all gas production from Indian (tribal or allotted) oil and gas leases, except leases on the Osage Indian Reservation.

The rule requires that MMS publish major portion prices for each designated area not associated with an index zone for each production month beginning January 2000, along with a due date for additional royalty payments. See 30 CFR 206.174(a)(4)(ii) (2008). If additional royalties are due based on a published major portion price, the lessee must submit an amended Form MMS-2014, Report of Sales and Royalty Remittance, to MMS by the due date. If additional royalties are not paid by the due date, late payment interest, under 30 CFR 218.54, will accrue from the due date until payment is made and an amended Form MMS-2014 is received. The table below lists the major portion prices for all designated areas not associated with an index zone. The due date is 60 days after the publication date of this notice.

Gas Major Portion Prices ($/MMBtu) for Designated Areas Not Associated With an Index Zone

MMS-designated areasJan 2007Feb 2007Mar 2007Apr 2007
Blackfeet Reservation5.965.866.396.11
Fort Belknap6.016.426.246.17
Fort Berthold5.937.356.166.66
Fort Peck Reservation6.648.929.479.19
Navajo Allotted Leases in the Navajo Reservation5.876.846.776.20
Rocky Boys Reservation4.875.385.305.22
Ute Allotted Leases in the Uintah and Ouray Reservation*3.986.296.333.72
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Ute Tribal Leases in the Uintah and Ouray Reservation3.395.835.762.80
MMS-designated areasMay 2007Jun 2007Jul 2007Aug 2007
Blackfeet Reservation6.446.235.814.74
Fort Belknap6.226.285.975.96
Fort Berthold6.816.475.515.48
Fort Peck Reservation7.287.126.487.12
Navajo Allotted Leases in the Navajo Reservation6.696.816.035.49
Rocky Boys Reservation5.354.924.123.76
Ute Tribal Leases in the Uintah and Ouray Reservation4.322.632.892.62
MMS-designated AreasSep 2007Oct 2007Nov 2007Dec 2007
Blackfeet Reservation4.484.995.706.30
Fort Belknap5.835.846.006.27
Fort Berthold5.946.647.076.75
Fort Peck Reservation6.747.698.809.85
Navajo Allotted Leases in the Navajo Reservation4.885.596.186.79
Rocky Boys Reservation3.894.905.225.13
Ute Tribal Leases in the Uintah and Ouray Reservation1.871.173.435.59
*As stated in the Federal Register notice published March 8, 2007, effective May 1, 2007 (72 FR 10552), MMS will value the Indian allotted leases in the Uintah and Ouray Reservation based on the Central Rocky Mountain index zone price.

For information on how to report additional royalties due to major portion prices, please refer to our Dear Payor letter dated December 1, 1999, on the MMS Web site at http://www.mrm.mms.gov/​ReportingServices/​PDFDocs/​991201.pdf.

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Dated: July 10, 2009.

Jennifer L. Goldblatt,

Acting Associate Director for Minerals Revenue Management.

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[FR Doc. E9-21911 Filed 9-10-09; 8:45 am]

BILLING CODE 4310-MR-P