[Federal Register Volume 63, Number 199 (Thursday, October 15, 1998)]
[Notices]
[Page 55405]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-27586]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service


Outer Continental Shelf (OCS)

AGENCY: Minerals Management Service (MMS).

ACTION: Notice to rescind notice to lessees and operators (NTL) 98-11N.

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SUMMARY: This notice announces our decision to rescind NTL 98-11N, 
Guidelines for Suspension of Production Due to Uneconomic Market 
Conditions.

DATES: NTL 98-11N is rescinded effective on January 13, 1998.

FOR FURTHER INFORMATION CONTACT: E. P. Danenberger at (703) 787-1600.

SUPPLEMENTARY INFORMATION: We are in the process of updating our NTLs 
to reflect current technologies, correct regulatory citations, and 
include a statement on the Paperwork Reduction Act of 1995. In most 
instances we are not changing the requirements and information in the 
superseded NTLs. During this process we updated NTL 92-1N, ``Guidelines 
for Application for Suspension of Production Due to Uneconomic Market 
Conditions'' and superseded it by NTL 98-11N.
    The superseded NTL 92-1N was developed in 1992 and was issued under 
the authority of 30 CFR 250.110(a)(5) which states, ``To avoid 
continued operations which would result in premature abandonment of a 
producing well(s) or would not be economic.'' We have reviewed our 
policy in NTL 98-11N and determined that the regulations in 30 CFR 
250.110 are sufficient to prevent premature abandonment of producing 
wells.
    We expect lessees to diligently manage their leases by exploring, 
developing, and commencing production within the primary term. We will 
only grant SOPs for a lease when the lessee commits to production and 
provides a reasonable schedule of activities including measurable 
milestones. We will not grant suspensions for nonproducing leases 
solely to wait for uncertain economic or technological conditions to 
improve.
    Based on this policy, NTL 98-11N is officially rescinded effective 
January 13, 1998, and no further SOPs will be approved under this NTL 
after that date. All currently approved SOPs will remain in effect 
until their specified expiration date or production begins, whichever 
occurs first.
    For your reference, on February 13, 1998, we published a Notice of 
Proposed Rulemaking (63 FR 7335), titled ``Postlease Operations 
Safety,'' revising the entire 30 CFR 250, subpart A. The proposed rule 
was subsequently corrected in a notice on March 9, 1998 (63 FR 11385). 
The comment period was extended once and closed on July 17, 1998. The 
current Sec. 250.110 on suspension of production or other operations 
was renumbered Sec. 250.119 in the proposed rule. Our regulatory policy 
on suspensions of production or operations will be reflected in the 30 
CFR 250, subpart A, final rule.
    The collection of information we refer to in this notice is 
authorized under 30 CFR 250, subpart A. The Paperwork Reduction Act of 
1995 requires us to inform you that the Office of Management and Budget 
(OMB) has approved the information collection requirements in these 
regulations and assigned OMB control number 1010-0030.

    Dated: October 8, 1998.
Carolita U. Kallaur,
Associate Director for Offshore Minerals Management.
[FR Doc. 98-27586 Filed 10-14-98; 8:45 am]
BILLING CODE 4310-MR-U