[Federal Register Volume 61, Number 211 (Wednesday, October 30, 1996)] [Proposed Rules] [Pages 55941-55942] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 96-27758] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF THE INTERIOR Minerals Management Service 30 CFR Ch. II Meeting on Federal Oil and Gas Royalty Simplification and Fairness Act of 1996 AGENCY: Minerals Management Service, Interior. ACTION: Notice of meeting. ----------------------------------------------------------------------- SUMMARY: The Minerals Management Service (MMS), Royalty Management Program, is analyzing the requirements of the Federal Oil and Gas Royalty Simplification and Fairness Act of 1996 and developing strategies to implement this Act. The purpose of this notice is to inform the public of MMS's intention to consult with affected parties about the changes to MMS processes required by this Act and describe the method MMS will use to obtain input from the public. DATES: A public meeting will be held on Tuesday, November 19, 1996, from 1 p.m. until 5 p.m. ADDRESSES: The meeting will be held in the Building 85 Auditorium on the Denver Federal Center. Mail comments to: David S. Guzy, Chief, Rules and Procedures Staff, Minerals Management Service, Royalty Management Program, P.O. Box 25165, MS 3101, Denver, Colorado, 80225- 0165, courier delivery to Building 85, Denver Federal Center, Denver, Colorado, or e-mail David-G[email protected]. FOR FURTHER INFORMATION CONTACT: David S. Guzy, Rules and Procedures Staff, telephone (303) 231-3432, Fax (303) 231-3194, or e-mail David__G[email protected]. State and industry organizational representatives are listed below: American Petroleum Institute Richard McPike, Fina Oil, P.O. Box 2159, Dallas, Texas 75221, (214) 750-2820, Fax: (214) 750-2987 Backup: David Deal, 1220 L. Street N.W., Washington, DC 20005, (202) 682-8261, Fax: (202) 682-8033 Council of Petroleum Accounting Societies Bill Stone, Exxon, P. O. Box 2024, Houston, Texas 77252-2024, (713) 680-7667, Fax: (713) 680-5280 Domestic Petroleum Council David Blackmon, Meridian Oil, 801 Cherry, Suite 700, Fort Worth, Texas 76102, (817) 347-2354, Fax: (817) 347-2877 Independent Petroleum Association of America Ben Dillon, 1101 16th St N.W., Washington, DC 20036, (202) 857-4722, Fax: (202) 857-4799 Independent Petroleum Association of Mountain States Barbara Widick, 518 17th Street, Denver, Colorado 80202-4167, (303) 623-0987, Fax: (303) 893-0709 Mid-Continent Oil & Gas Association Patty Patten, OXY USA, Inc., 110 W. 7th Street, Tulsa, Oklahoma 74137, (918) 561-3703, Fax: (918) 561-4364 Natural Gas Supply Association George Butler, Chevron, P.O. Box 3725, Houston, Texas 77213-3725, (713) 754-7809, Fax: (713) 754-3366 Rocky Mountain Oil & Gas Association Mary Stonecipher, Amoco Corporation, P.O. Box 591, Tulsa, Oklahoma 74102, (918) 581-4354, Fax: (918) 581-4526, Backup: Carla Wilson, 1775 Sherman Street, Suite 2501, Denver, Colorado 80203, (303) 860-0099, Fax: (303) 860-0310 Royalty Policy Committee Don Hoffman, Department of Revenue, State of Montana, Mitchell Building, Room 330, Helena, Montana 59620, (406) 444-3587, Fax: (406) 444-2900 State and Tribal Royalty Audit Committee Wanda Fleming, Montana Department of Revenue, P.O. Box 202701, Helena, Montana 59620-2701, (406) 444-3573, Fax: (406) 444-3696 Western Governors' Association Paul Kruse, Assistant Director, Federal Land Policy, State of Wyoming, Herschler Building, 3 West, 121 West 25th Street, Cheyenne, Wyoming 82002-0600, (307) 777-7331, Fax: (307) 777-5400 Western States Land Commissioners Association Maurice Lierz, New Mexico State Land Office, P.O. Box 1148, Santa Fe, New Mexico 87504-1148, (505) 827-5735, Fax: (505) 827-4262 or contact Mike Miller, MMS at (303) 231-3413 or via e:Mail at Mike__M[email protected]. SUPPLEMENTARY INFORMATION: President Clinton signed the Federal Oil and Gas Royalty Simplification and Fairness Act (RSFA) on August 13, 1996, to improve the management of royalties from Federal and Outer Continental Shelf oil and gas leases. This is the first major legislation affecting royalty management since the Federal Oil and Gas Royalty Management Act of 1982 (FOGRMA) was passed in January 1983. The key issues of RSFA implementation listed by near term and longer term focus are: Near Term FocusReport and Pay/Credit Interest on Overpayments. Accept Interest Payments and Reporting from ``Designees'' on Underpayments. Issue Enforceable Demands (Orders to Pay) to Operating Rights. Owners Related to Production Occurring After 8/31/96. Implement the Repeal of Section 10 of the Outer Continental Shelf Lands Act. Provide for Self Bonding for Appeals Relating to Underpayments of Production After 09/01/96. Implement Section 205 Amendments (State Delegations) in Consultation With States. Implement Reporting Requirements on Takes/Entitlement Basis. Implement Marginal Properties Exception to RSFA Entitlement Reporting Requirements. Provide Accounting, Reporting, and Auditing Relief for Marginal Properties. Process Written Refund Requests Within 120 Days of Receipt. [[Page 55942]] Address Cost/Benefit Provision of the RSFA. Long Term Focus BLM/OMM Approval of Unit/Communitization Agreements Within 120 Days. Monitor Adjustments Beyond the ``6-year Adjustment Period'' or Closed Audit Periods for Production After 09/01/96. Assess for Chronic Erroneous Reporting. Resolve and Bill, if Appropriate, Existing Takes/ Entitlement Issues as of RSFA (08/13/96) Within 2 Years. Allow for Prepayments of Future Revenue Streams. Implement 7 Year Statute of Limitations for MMS' Processes. Process All Appeals Within 33 months. We believe that contacts with both State government agencies and the oil and gas industry are critical to gaining information, views, ideas and approaches that will facilitate MMS moving forward with implementation plans. Also, we believe that such contacts are important for keeping our affected constituencies informed on the status of implementation efforts. We believe our implementation strategy should be flexible and provide for a range of outreach approaches. For example, topics such as how to best establish the identity of designees and operating rights owners may be appropriate for Customer Feedback Sessions to obtain customer input during the evaluation of possible implementation alternatives. Other topics such as how to implement the provisions for marginal properties as well as the implementation of FOGRMA Section 205 amendments (state delegations) are likely candidates for a workshop approach to facilitate extensive and ongoing dialog. Development of the major implementing regulations required by RSFA will also require extensive outreach with State government agencies and industry using this strategy. MMS has invited representatives from State and industry organizations to participate in the more structured discussion. Organizational representatives and the MMS contact are listed in the FURTHER INFORMATION section. Please direct your questions and comments to the representatives. In complying with the Small Business Regulatory Enforcement Fairness Act of 1996, we are also soliciting comments from small entities as to the impact revised reporting requirements and regulations resulting from RSFA will have on their operations. In preparing rules required by RSFA, we will also work to comply with new requirements of other recently passed laws and Executive Orders affecting regulatory development. Customer Feedback Sessions MMS met with a working group of representatives from State government agencies and industry organizations in an initial outreach planning meeting in October 1996. The next phase of our outreach strategy centers around a series of feedback sessions designed to present and discuss specific actions taken and planned to implement one or more of the previously listed key RSFA issues. We feel that we can best work with our stakeholders on an issue-by- issue basis to implement the requirements of RSFA. At these sessions MMS would describe work to date including any decisions reached which should, because of the timing, be communicated to stakeholders. As we schedule issue-specific meetings, we will notify members of the working group that met in October. Each member of the working group will then make sure those stakeholders whom they represent are appropriately represented at the scheduled meetings. The objectives and expected benefits of these meetings include a forum to gain an understanding of the various positions of the stakeholders regarding the issues presented. Periodically, we will meet with the entire working group to discuss overall progress in implementing all issues related to RSFA. Workshop Strategy The workshop strategy is intended to focus on selected aspects of RSFA where MMS believes that State government agencies and industry positions should be fully developed and evaluated before MMS selects its implementation approach. This approach will rely primarily on workshops to be held in Denver, Colorado. Other locations such as Houston may be appropriate for selected workshops. The topics will be developed in consultation with industry trade groups and State government agencies. MMS will determine the final list of topics and the agenda for each workshop. Payor and Operator Training Sessions These sessions which take place several times a year provide opportunities for exchange of information and ideas on new initiatives currently underway. Industry representatives at these sessions can attend with the expectation of some level of discussion on the RSFA issues. Questions can be raised and discussed. Day to Day Contacts Within three of RMP's divisions, employees and contractor personnel have day to day contacts with industry representatives. Questions can be asked daily by many payors and operators reporting to RMP. Other Sessions Many other sessions that involve industry and State government agencies will take place over the next few months which are not specifically organized to deal with RSFA or its implementation, but which will nevertheless require a level of understanding of RSFA for attendees. Sessions for discussing electronic reporting will take place and our representative can be asked to discuss the implications of RSFA as it relate to electronic reporting. Clearly, industry will require as much lead time as RMP to properly prepare for future changes to reporting requirements. In order to accomplish a broad based fact finding on how the requirements of RSFA affect our customers and stakeholders, comments from the public are encouraged on any issue related to implementing RSFA. In addition to attendance at the previously described sessions and workshops comments can be made in writing and be sent directly to MMS using instructions in the ADDRESSES part of this notice. Date: October 22, 1996. James W. Shaw, Associate Director for Royalty Management. [FR Doc. 96-27758 Filed 10-29-96; 8:45 am] BILLING CODE 4310-MR-P