[Federal Register Volume 62, Number 128 (Thursday, July 3, 1997)] [Proposed Rules] [Pages 36030-36037] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 97-17312] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF THE INTERIOR Minerals Management Service 30 CFR Part 206 RIN 1010-AC09 Establishing Oil Value for Royalty Due on Federal Leases, and on Sale of Federal Royalty Oil AGENCY: Minerals Management Service, Interior. ACTION: Supplementary proposed rule. ----------------------------------------------------------------------- SUMMARY: The Minerals Management Service (MMS), Royalty Management Program (RMP) is proposing changes to its recently-issued proposed rule regarding valuation of crude oil produced from Federal leases. MMS also is reopening the comment period to receive comments on the originally proposed rule and these additional changes. These revisions would modify the eligibility requirements for oil valuation for arm's-length transactions and the procedures for collecting oil exchange information. MMS also is amending the list of aggregation points to include additional locations inadvertently left out of the earlier proposal. DATES: Comments must be submitted on or before August 4, 1997. ADDRESSES: Mail written comments, suggestions, or objections regarding the proposed rule to: Minerals Management Service, Royalty Management Program, Rules and Publications Staff, P.O. Box 25165, MS 3021, Denver, Colorado 80225-0165; courier address is Building 85, Denver Federal Center, Denver, Colorado 80225; or e:Mail David__G[email protected]. MMS will publish a separate notice in the Federal Register indicating dates and locations of public meetings regarding this proposed rulemaking. FOR FURTHER INFORMATION CONTACT: David S. Guzy, Chief, Rules and Publications Staff, telephone (303) 231-3432, FAX (303) 231-3385, e:Mail David__G[email protected], Minerals Management Service, Royalty Management Program, Rules and Publications Staff, P.O. Box 25165, MS 3021, Denver, Colorado 80225-0165. SUPPLEMENTARY INFORMATION: The principal authors of this supplementary proposed rule are Deborah Gibbs Tschudy of RMP and Peter Schaumberg of the Office of the Solicitor. I. Background MMS published a notice of proposed rulemaking on January 24, 1997 (62 FR 3741), to amend its current Federal crude oil valuation regulations in 30 CFR Part 206. The initial comment period expired March 25, 1997, and was twice extended to April 28, 1997 (62 FR 7189), and to May 28, 1997 (62 FR 19966). Comments received to date are available for public inspection at the RMP offices in Lakewood, Colorado or on the Internet at http://www.rmp.mms.gov. MMS also will place any additional comments received on this rule on the Internet. Call David Guzy at (303) 231-3432 for further information. By this notice, MMS is reopening the comment period until August 4, 1997. II. Public Comments As part of the public comment process, MMS held public meetings in Lakewood, Colorado on April 15, 1997, and Houston, Texas on April 17, 1997, to hear comments on the proposal. MMS has received many comments on the proposed rule. There have been issues raised to date that MMS recognizes require changes to the proposed rule because they result in unintentional exceptions to use of gross proceeds for calculating royalty value by small producers. MMS heard a number of comments from attendees at the public meetings about provisions in the proposal that would require small producers to pay based on index pricing instead of gross proceeds if they: (1) Made small-volume purchases of oil for lease operations or other purposes (see Sec. 206.102(a)(6) of the proposed rule), or (2) had crude oil call provisions that were never exercised (see Sec. 206.102(a)(5) of the proposed rule). MMS also received comments about proposed new Form MMS-4415, the Oil Location Differential Report. These comments included complaints about the amount of information required, some of which the commenters believed that MMS does not need. MMS met with representatives of the Independent Petroleum Association of America (IPAA), the Independent Petroleum Association of Mountain States (IPAMS), and the State of Louisiana on May 13-14, 1997. At that meeting, IPAA and IPAMS presented their comments on the January 24, 1997, [[Page 36031]] proposal, including the issues discussed above. The IPAA submitted its written comments to MMS on May 15, 1997. In these comments, IPAA recommended that MMS allow companies that purchase oil and companies whose production is subject to crude oil calls to use gross proceeds under arm's-length contracts to determine value. IPAA also recommended that MMS revise its benchmarks for valuing production not sold under arm's-length contracts. III. Revisions to Proposed Rule After hearing these comments, MMS is amending the proposed rule to address significant concerns raised early in the public comment process and is reopening the comment period to receive additional comments on those minor changes to the proposed rule. MMS's intent in proposed Sec. 206.102(a)(4) was to exclude oil subject to crude oil calls from gross proceeds valuation because factors other than the real value of the oil may be affecting the price. However, excluding all oil ``subject'' to crude oil calls was too broad. MMS recognizes that in cases where crude oil calls are not exercised and the production is sold under an arm's-length contract, it may be unnecessary to use index prices to determine value. The arm's- length gross proceeds in such a circumstance may generally reflect the value of production. Also, if the production disposed of when a crude oil call is exercised is valued based upon the price that other parties are willing to competitively bid to purchase the production (the so- called Most Favored Nation clause), then the oil should not be subject to index pricing provisions under Sec. 206.102(c). Therefore, MMS is proposing to amend Sec. 206.102(a)(4) to limit the exclusion from gross proceeds valuation to situations involving only non-competitive crude oil calls. That is, MMS is proposing that in a situation where there is a purchase sale agreement or farm out in which the purchaser of the property agrees to be subject to a non- competitive call by the seller of the property instead of paying full market value for the property, then the production would be valued under Sec. 206.102(c). Also, a corresponding definition of ``non- competitive crude oil call'' is added to the proposed rule. MMS does have some concerns about whether this proposal to allow valuation based on gross proceeds in a competitive call circumstance may result in undervaluation situations. For instance, we have concerns about a lessee's ability to know, and MMS's ability to obtain timely the pricing information needed to monitor adequately, whether the prices lessees are receiving are the highest prices under the Most Favored Nations clause and whether such prices are subject to discounts below true market prices and index values because of exchanges and other complex marketing arrangements. MMS would like specific comments on these concerns. MMS also would like comments to address the situation where the holder of the call may transfer the right to take the production to a third party and whether that might affect the gross proceeds paid to the lessee. MMS is also proposing a further change to Sec. 206.102(a)(4) to exclude one other category of arm's-length transactions from gross proceeds valuation. There are situations where two parties transact purchases and sales of oil that would appear to be arm's-length. However, the prices in the transactions are below market for the field or area. Neither party cares because they agree to sell roughly equivalent volumes to one another, either in the same field or another field, so any discount is enjoyed equally by the two parties. The royalty owners lose in this case because of the below-market valuation in the purportedly arm's-length sales. In these ``overall balance'' situations, MMS would require you to value the production based on index value under Sec. 206.102(c)(2) instead of your gross proceeds. This situation would also be covered under Sec. 206.102(a)(2), but MMS believes it would be preferable to address this situation directly in Sec. 206.102(a)(4). MMS also recognizes that the requirement in the proposed rule that purchasers of small amounts of oil must value oil using index prices is potentially too restrictive. It was not MMS's intent to require producers to pay royalties based on index prices if they purchase oil to make up for production shortfalls (meaning production insufficient to meet confirmed nominations or warranted volumes), or if they must purchase crude oil to operate their lease. MMS therefore is proposing to delete Sec. 206.102(a)(6) as proposed in January. MMS believes that the new proposed paragraph (a)(4) is sufficient to address the concerns that the original paragraph (a)(6) proposed in January intended to address. However, MMS has concerns about whether it can effectively enforce that provision prior to audit, therefore, MMS specifically requests comments on whether we should require lessees who value their production using gross proceeds received under an arm's- length contract to certify that they are not maintaining an ``overall balance'' with their purchaser. MMS also requests comments on whether we should amend Sec. 206.102(a)(6) as proposed in January to specify purchase levels below which a lessee would not be required to value their production using index value. MMS is proposing a new paragraph (a)(6) to address oil production you dispose of under certain exchange agreements. Under this proposed new paragraph, if you dispose of your oil under an exchange agreement with a person who is not affiliated with you, and if after the exchange you sell the acquired oil under an arm's-length contract, you may use either Sec. 206.102(a) or (c)(2) to value your production. This means you would have a choice to value your production based on either gross proceeds or index value. If you elect to use gross proceeds, you would use the gross proceeds from your arm's-length sale of the oil after the exchange, adjusted for any location or quality differences paid or received under the arm's-length exchange agreement. For example, assume that Company X produces 100 barrels of oil from a Federal lease and enters into an exchange agreement with Company Y (who is not affiliated with Company X). Under the exchange agreement, Company Y is providing an equal volume of higher gravity oil, so Company X is paying a 25-cent-per-barrel quality differential. After the exchange, Company X sells the oil arm's-length to Company Z for $20 per barrel. Company X could use either Sec. 206.102(c)(2) and value its lease production based on index value, or use its gross proceeds received under the arm's-length contract with Company Z adjusted for quality and location, in this example $19.75. If you transfer your Federal lease production to an affiliate, and that affiliate enters into an arm's-length exchange agreement, (a)(6)(i) would not apply. Nor would it apply if the oil you receive back in an exchange agreement is transferred to an affiliate before it is sold. In both of these cases, the transfer to an affiliate before or after the exchange is considered a non-arm's-length sale that would be valued under Sec. 206.102(c)(2). Further, you may use (a)(6)(i) only if there is a single exchange before you sell the oil arm's-length. You must use index value under Sec. 206.102(c)(2) if you enter into a second (or third, etc.) exchange for the oil you received back from your exchange partner in the first exchange. [[Page 36032]] Proposed Sec. 206.102(a)(6)(iii) explains that if you use gross proceeds under Sec. 206.102(a) to value production subject to paragraph (a)(6)(i), you must make that election for all oil production disposed of under all other arm's-length exchange agreements that are subject to paragraph (a)(6)(i). MMS also is amending Sec. 206.102(a)(1) to clarify that the exceptions to valuing oil sold under arm's-length contracts based on gross proceeds are transaction or contract specific. That is, if you have one arm's-length contract that is subject to a non-competitive crude oil call, then that does not necessarily mean that all of your Federal production must be valued under Sec. 206.102(c). MMS also heard comments concerning the filing of Form MMS-4415. Comments asked for clarification on who must file the form and what information is required. MMS developed this form to gather information on the relative value of crude oil involved in exchange agreements and to determine appropriate location and quality differentials between the aggregation points and the market centers. To calculate specific differentials, MMS would take the volume-weighted average of the individual differentials derived from information payors report on Form MMS-4415. MMS will collect only information about exchanges where delivery occurs at an aggregation point and a market center. MMS seeks comments on the usefulness of collecting information about exchanges between two aggregation points. Lessees would not be required to report information from exchanges where oil is exchanged at the lease. During the public hearings, MMS also received comments on whether MMS should collect information about exchanges between aggregation points and market centers from other than Federal lease production. Obviously, if only Federal production is commingled at a particular aggregation point, MMS would only need information regarding Federal lease production. MMS seeks comment on how lessees would allocate to Federal leases differentials from aggregation points to market centers when non-Federal production is commingled with Federal production at aggregation points. The January 24, 1997, proposal for valuing Federal crude oil contained a list of aggregation points in Appendix H. That listing was incomplete. This supplementary proposed rule revises Appendix H to include more aggregation points. MMS specifically requests comments on the revised paragraphs addressed in this notice. MMS also requests comments on alternatives for valuing production not sold under arm's-length contracts-- Sec. 206.102(c). Specifically, MMS requests comments on alternatives based on lease market indicators that are readily available contemporaneously. You also may comment further on any other provision in the January 24 proposed rule. If you already submitted written comments on other portions of the rule, you do not need to resubmit those comments. List of Subjects in 30 CFR Part 206 Coal, Continental shelf, Geothermal energy, Government contracts, Indians-lands, Mineral royalties, Natural gas, Petroleum, Public lands- mineral resources, Reporting and recordkeeping requirements. Dated June 26, 1997. Bob Armstrong, Assistant Secretary for Land and Minerals Management. For the reasons set forth in the preamble, the proposed rule published at 62 FR 3741, on January 24, 1997, amending 30 CFR Part 206, is further amended as follows: PART 206--PRODUCT VALUATION 1. The Authority citation for Part 206 continues to read as follows: Authority: 5 U.S.C. 301 et seq.; 25 U.S.C. 396 et seq.; 396a et seq., 2101 et seq.; 30 U.S.C. 181 et seq.; 351 et seq.; 1001 et seq.; 1701 et seq.; 31 U.S.C. 9701.; 43 U.S.C. 1301 et seq.; 1331 et seq.; and 1801 et seq. Subpart C--Federal Oil 2. Section 206.101 as proposed to be revised at 62 FR 3751 is further amended by adding the following definition to read as follows: Sec. 206.101 Definitions. Non-competitive crude oil call means a purchase sale agreement or farm out in which the buyer of the property agrees to be subject to a call on their production that does not contain a Most Favored Nations clause or a similar clause in which the price is based on what other parties are willing to competitively bid to purchase the production. 3. Section 206.102 as proposed to be revised at 62 FR 3752 is further amended by revising paragraphs (a)(1), (a)(4), and (a)(6) to read as follows: Sec. 206.102 How do I calculate royalty value for oil? * * * * * (a) * * * (1) Paragraphs (a)(2) through (a)(6) of this section contain exceptions to the valuation rule in paragraph (a) of this section. Apply these exceptions on an individual contract basis. * * * * * (4) You must use paragraph (c)(2) of this section to value oil disposed of under: (i) An exchange agreement, except as provided in paragraph (a)(6) of this section; (ii) An arm's-length contract between a buyer and seller in which the contract price does not represent market value in the field or area because an overall balance between volumes bought and sold is maintained between that buyer and seller; or (iii) The exercise of a non-competitive crude oil call. If you dispose of your oil under a competitive crude oil call, value your oil under Sec. 206.102(a). * * * * * (6) (i) If you dispose of your oil under an exchange agreement with a person who is not affiliated with you, and if after the exchange you sell the acquired oil under an arm's-length contract, you may use either Sec. 206.102(a) or Sec. 206.102(c)(2) to value your production for royalty purposes. If you use Sec. 206.102(a), your gross proceeds are the gross proceeds under your arm's-length contract after the exchange occurs, adjusted for any location or quality differential or other adjustments you received or paid under the arm's-length exchange agreement. (ii) You must use Sec. 206.102(c)(2) to value your production if you transfer your oil to an affiliate before the exchange occurs. You also must use Sec. 206.102(c)(2) to value your oil if you transfer the oil you receive in the exchange to an affiliate or if you enter into a second exchange for the oil you received back under your first exchange. (iii) If you value production under Sec. 206.102(a)(6)(i), you must make the same election for all of your production disposed of under arm's-length exchange agreements that are subject to Sec. 206.102(a)(6)(i). * * * * * Note: The following appendix will not appear in the Code of Federal Regulations. [[Page 36033]] Appendix H to Preamble of Oil Valuation Rule ------------------------------------------------------------------------ State Station location County/offshore location ------------------------------------------------------------------------ AL................ Marion Corp. Connection.. Mobile. AL................ Mobile................... Mobile. AL................ Saraland Terminal........ Mobile. AL................ Ten Mile Point Terminal.. Mobile. CA................ Coalinga................. Fresno. CA................ Belridge................. Kern. CA................ Fellows.................. Kern. CA................ Kelley................... Kern. CA................ Leutholtz Jct............ Kern. CA................ Pentland................. Kern. CA................ Midway................... Kern. CA................ Station 36-Kern River.... Kern. CA................ Newhall.................. Los Angeles. CA................ Sunset................... Los Angeles. CA................ Cadiz.................... San Bernadino. CA................ Avila.................... San Luis Obispo. CA................ Gaviota Terminal......... Santa Barbara. CA................ Lompoc................... Santa Barbara. CA................ Sisquoc Jct.............. Santa Barbara. CA................ Filmore.................. Ventura. CA................ Rincon................... Ventura. CA................ Ventura.................. Ventura. CA................ Junction................. (County Unknown). CA................ Lake..................... (County Unknown). CA................ Rio Bravo................ (County Unknown). CA................ Santa Paula.............. (County Unknown). CA................ Signa.................... (County Unknown). CA................ Stewart.................. (County Unknown). CO................ Denver................... Adams. CO................ Cheyenne Wells Station... Cheyenne. CO................ Iles..................... (County Unknown). CO................ Sterling................. Logan. CO................ Fruita................... Mesa. CO................ Rangley.................. Rio Blanca. KS................ Humbolt-Williams P.L..... Allen. KS................ Augusta.................. Butler. KS................ Eldorado................. Butler. KS................ Harper's Ranch........... Clark. KS................ Arkansas City............ Cowley. KS................ McPherson Sta............ McPherson. KS................ Caney.................... Montgomery. KS................ Laton Sta................ Osborne. KS................ Herndon Station.......... Rawlings. KS................ Rawlings Sta............. Rice. KS................ Lyons Station............ Sedgwick. KS................ Valley Center............ Thomas. KS................ Bemis St................. (County Unknown). KS................ Broome St................ (County Unknown). KS................ Towlanda................. (County Unknown). LA................ Brown Sta................ Caddo. LA................ Clifton Ridge............ Calcasieu. LA................ Conoco Jct............... Calcasieu . LA................ Lake Charles............. Calcasieu LA................ Pecan Grove.............. Calcasieu. LA................ Rose Bluff............... Calcasieu. LA................ Texaco Jct............... Calcasieu. LA................ Grand Chenier Term....... Cameron. LA................ Hainesville Sta.......... Claiborne. LA................ Maryland................. East Baton Rouge. LA................ Bayou Fifi............... Jefferson. LA................ Grand Isle............... Jefferson. LA................ Bay Marchand Term........ Lafourche. LA................ Bayou Fourchon........... Lafourche. LA................ Clovelly................. Lafourche. LA................ Clovelly Storage Dome.... Lafourche. LA................ Elmers Jct............... Lafourche. LA................ Fourchon Terminal........ Lafourche. LA................ Golden Meadow............ Lafourche. LA................ Larose Barge Terminal.... Lafourche. LA................ Pass Fourchon P.L........ Lafourche. LA................ Blk. 28 Tie-in........... Offshore East Cameron. LA................ Blk. 23.................. Offshore Eugene Island. [[Page 36034]] LA................ Blk. 51 B Platform....... Offshore Eugene Island. LA................ Blk. 188 A Structure..... Offshore Eugene Island. LA................ Blk. 259................. Offshore Eugene Island. LA................ Blk. 316................. Offshore Eugene Island. LA................ Blk. 337 Subsea Tie-in... Offshore Eugene Island. LA................ Blk. 361................. Offshore Eugene Island. LA................ Texas P.L. Subsea Tie-in. Offshore Eugene Island. LA................ Blk. 17.................. Offshore Grand Isle. LA................ Blk. 42--Chevron P.L..... Offshore Main Pass. LA................ Blk. 42L................. Offshore Main Pass. LABlk. 69 B Plat........... Offshore Main Pass. LA................ Blk. 77 (Pompano P.L. Offshore Main Pass. Jct.). LA................ Blk. 144 Structure A..... Offshore Main Pass. LA................ Blk. 298 Plat. A......... Offshore Main Pass. LA................ Blk. 299 Platform........ Offshore Main Pass. LA................ Blk. 28.................. Offshore Ship Shoal. LA................ Blk. 154................. Offshore Ship Shoal. LA................ Blk. 169................. Offshore Ship Shoal. LA................ Blk. 203 Subsea Tie-in... Offshore Ship Shoal. LA................ Blk. 208................. Offshore Ship Shoal. LA................ Blk. 208 B Structure..... Offshore Ship Shoal. LA................ Blk. 208 F............... Offshore Ship Shoal. LA................ Ship Shoal Area.......... Offshore Ship Shoal. LA................ Blk. 6................... Offshore South Marsh Island. LA................ Blk. 10--Structure A..... Offshore South Marsh Island. LA................ Blk. 58A................. Offshore South Marsh Island. LA................ Blk. 139................. Offshore South Marsh Island. LA................ Blk. 139 Subsea Tap Valve Offshore South Marsh Connect. Island. LA................ Blk. 207--Light House Offshore South Marsh Point A. Island. LA................ Blk. 268--Platform A..... Offshore South Marsh Island. LA................ Blk. 55.................. Offshore--South Pass. LA................ Blk. 13 (Wesco P.L. Offshore--South Pelto. Subsea Tie-in). LA................ Blk. 35 Platform D....... Offshore--S. Timbalier. LA................ Blk. 52 Plat. A.......... Offshore--S. Timbalier. LA................ Blk. 172 Plat. D......... Offshore--S. Timbalier. LA................ Blk. 196 Exxon P.L. Offshore--S. Timbalier. System Tie-in. LA................ Blk. 300................. Offshore--S. Timbalier. LA................ Blk. 255................. Offshore Vermilion. LA................ Blk. 265 Platform A...... Offshore Vermilion. LA................ Blk. 350................. Offshore Vermilion. LA................ Blk. 30.................. Offshore--West Delta. LA................ Blk. 53.................. Offshore--West Delta. LA................ Blk. 53 Plat. B.......... Offshore--West Delta. LA................ Blk. 53B--Chevron P.L.... Offshore--West Delta. LA................ Blk. 53B Plat. Gulf Offshore--West Delta. Refining Co. LA................ Blk. 83.................. Offshore--West Delta. LA................ Alliance Refinery........ Plaquemines. LA................ Empire Terminal.......... Plaquemines. LA................ Main Pass................ Plaquemines. LA................ Main Pass Blk. 69........ Plaquemines. LA................ Ostrica Term............. Plaquemines. LA................ Pelican Island........... Plaquemines. LA................ Pilottown................ Plaquemines. LA................ Romere Pass.............. Plaquemines. LA................ South Pass Blk. 60A...... Plaquemines. LA................ South Pass Blk. 27....... Plaquemines. LA................ Onshore facil............ Plaquemines. LA................ South Pass Blk. 24....... Plaquemines. LA................ South Pass Blk. 24 Plaquemines. Onshore Plat. LA................ Southwest Pass Sta....... Plaquemines. LA................ West Delta Blk. 53....... Plaquemines. LA................ West Delta Rec'vg Sta.-- Plaquemines. Onshore. LA................ Dehli.................... Richland. LA................ Chalmette................ St. Bernard. LA................ Norco (Shell Refinery)... St. Charles. LA................ St. James................ St. James. LA................ Bayou Sale............... St. Mary. LA................ Burns Term............... St. Mary. LA................ Charenton................ St. Mary. LA................ South Bend............... St. Mary. LA................ Caillou Island........... Terrebonne. LA................ Caillou Island Fld....... Terrebonne. LA................ Gibson Term.............. Terrebonne. LA................ Erath.................... Vermilion. [[Page 36035]] LA................ Forked Island............ Vermilion. LA................ Mermentau River Station.. Vermilion. LA................ Anchorage................ West Baton Rouge. LA................ Grand Lake Terminal...... (County unknown.) LA................ Twin Island Terminal..... (County unknown.) LA................ Lakeside Terminal........ (County unknown.) LA................ Bayou Penchant Terminal.. (County unknown.) LA................ Gibbstown Terminal....... (County unknown.) LA................ Bluewater Terminal....... (County unknown.) LA................ Cocodrie Terminal........ (County unknown.) MI................ Bay City................. Bay. MI................ Montcalm................. Carson City. MI................ Lewiston................. Crawford. MI................ Kalamazoo................ Fulton Takeoff. MI................ Alma..................... Gratiot MI................ St. Clair................ Marysville. MI................ Monroe................... Samaria Sta. MI................ Ingham................... Stockbridge. MI................ Detroit.................. Wayne. MI................ Ogemaw................... West Branch. MS................ Liberty.................. Amite. MS................ Mayersville.............. Issaquena. MS................ Pascogoula............... Jackson. MS................ Soso..................... Jones. MS................ Lumberton................ Lamar. MS................ Purvis................... Lamar. MS................ Collierville Station..... Marshall. MT................ Silver Tip Station....... Carbon. MT................ Alzada................... Carter. MT................ Richey Station........... Dawson. MT................ Baker.................... Fallon. MT................ Cut Bank Station......... Glacier. MT................ Bell Creek Station....... Powder River. MT................ Poplar Station........... Roosevelt. MT................ Billings................. Yellowstone. MT................ Laurel................... Yellowstone. MT................ Clear Lake Sta........... (County Unknown). ND................ Fryburg Station.......... Billings. ND................ Tree Top Station......... Billings. ND................ Lignite.................. Burke. ND................ Alexander................ McKenzie. ND................ Keene.................... McKenzie. ND................ Killdear................. Dunn. ND................ Mandan................... Morton. ND................ Tioga.................... Ramberg. ND................ Ramberg.................. Williams. ND................ Thunderbird Refinery..... Williams. ND................ Tioga.................... Williams. ND................ Trenton.................. Williams. NM................ Jal...................... Lea. NM................ Lovington................ Lea. NM................ Ciniza................... McKinley. NM................ Bisti Jct................ San Juan. NM................ Navajo Jct............... San Juan. TX................ Carson Station........... Archer. TX................ Holliday................. Archer. TX................ Fullerton................ Andrews. TX................ Buccaneer Term........... Brazoria. TX................ Sweeney Sta.............. Brazoria. TX................ Mont Belvieu............. Chambers. TX................ Crane.................... Crane. TX................ Ranger................... Eastland. TX................ Caproch Jct.............. Ector. TX................ Odessa................... Ector. TX................ North Cowden............. Ector. TX................ Wheeler.................. Ector. TX................ El Paso.................. El Paso. TX................ Missouri City Jct........ Fort Bend. TX................ Winnsboro................ Franklin. TX................ Worthham................. Freestone. TX................ Pearsall Sta............. Frio. TX................ Texas City............... Galveston. TX................ Roberts.................. Glasscock. TX................ Covey Station............ Grayson. [[Page 36036]] TX................ Bumpus Sta............... Gregg. TX................ Kilgore St............... Gregg. TX................ Longview................. Gregg. TX................ Longview Mid-Valley...... Gregg. TX................ Sabine Sta. Amoco P.L.... Gregg. TX................ Mobil Jct................ Hardin. TX................ Sour Lake................ Hardin. TX................ Baytown.................. Harris. TX................ Exxon Jct................ Harris. TX................ Genoa Jct................ Harris. TX................ Houston.................. Harris. TX................ Pasadena................. Harris. TX................ Webster.................. Harris. TX................ Hillsboro................ Hill. TX................ Big Spring............... Howard. TX................ Phillips Hutchinson...... Howard. TX................ Jacksboro Sta............ Jack. TX................ Beaumont................. Jefferson. TX................ Lucas.................... Jefferson. TX................ Nederland................ Jefferson. TX................ Port Arthur.............. Jefferson. TX................ Port Neches.............. Jefferson. TX................ Sabine Pass.............. Jefferson. TX................ Mexia Jct................ Limestone. TX................ Midland.................. Midland. TX................ Colorado City Station.... Mitchell. TX................ McKee.................... Moore. TX................ Corsicanna............... Navarro. TX................ American Petrofina....... Nueces. TX................ Corpus Christi........... Nueces. TX................ Harbor Island............ Nueces. TX................ Beaver Station........... Ochiltree. TX................ Blk. 474-Inters. Seg. Offshore--High Island. III, III-7. TX................ Blk. A--571.............. Offshore--High Island. TX................ End Segment II........... Offshore--High Island. TX................ End Segment III--10...... Offshore--High Island. TX................ End Segment III--10 (Blk. Offshore--High Island. 547). TX................ End Segment III--6....... Offshore--High Island. TX................ Irran Sta................ Pecos. TX................ Kemper................... Reagan. TX................ Mason Jct................ Reeves. TX................ Rufugio Sta.............. Rufugio. TX................ Midway................... San Patricio. TX................ Eldorado................. Scheicher. TX................ Basin Station............ Scurry. TX................ Colorado City............ Scurry. TX................ Ft. Worth................ Tarrant. TX................ Merkel................... Taylor. TX................ Tye...................... Taylor. TX................ McCamey.................. Upton. TX................ Mesa Sta................. Upton. TX................ Burkburnett.............. Wichita. TX................ KMA--Total P.L........... Wichita. TX................ Wichita Falls............ Wichita. TX................ Halley................... Winkler. TX................ Hendrick/Hendrick-Wink... Winkler. TX................ Keystone................. Winkler. TX................ Wink..................... Winkler. TX................ South Bend............... Young. TX................ Channel View Jct......... (County Unknown). TX................ Clear Creek Sta.......... (County Unknown). TX................ Oyster Lake Term......... (County Unknown). TX................ Queens Jct............... (County Unknown). TX................ Spacek Sta............... (County Unknown). TX................ Jolly Jct................ (County Unknown). TX................ Nettleton Sta............ (County Unknown). TX................ Trent Sta................ (County Unknown). VT................ North Troy International Orleans. Boundary. WA................ Anacortes................ Whatcom. WA................ Ferndale................. Whatcom. WI................ Superior Terminal........ Douglas. WV................ St. Marys................ Pleasant. UT................ Salt Lake Station........ Davis. UT................ Wood Cross............... Davis. [[Page 36037]] UT................ Salt Lake City........... Salt Lake. UT................ Aneth.................... San Juan. UT................ Patterson Canyon Jct..... San Juan. UT................ Bonanza Station.......... Uintah. UT................ Red Wash Station......... Uintah. WY................ Rock River............... Albany. WY................ Byron.................... Big Horn. WY................ Central Hilight Sta...... Cambell. WY................ Rocky Point.............. Cambell. WY................ Ferris Jct............... Carbon. WY................ Big Muddy Sta............ Converse. WY................ Glenrock................. Converse. WY................ Lightening Flats......... Crook. WY................ Pilot Butte Sta.......... Freemont. WY................ Ft. Laramie.............. Goshen. WY................ Cottonwood Jct........... Hot Springs. WY................ Crawford Sta............. Johnson. WY................ Reno..................... Johnson. WY................ Sussex................... Johnson. WY................ Cheyenne................. Laramie. WY................ Casper................... Natrona. WY................ Noches................... Natrona. WY................ Lance Creek Station...... Niobrara. WY................ Frannie Sta.............. Park. WY................ Oregon................... Park. WY................ Oregon Basin Sta......... Park. WY................ Bridger Station.......... Uinta. WY................ Chatham Sta.............. Washakie. WY................ Butte Sta................ Weston. WY................ Mush Creek Jct........... Weston. WY................ Osage Station............ Weston. ------------------------------------------------------------------------ [FR Doc. 97-17312 Filed 7-2-97; 8:45 am] BILLING CODE 4310-MR-P