[Federal Register Volume 63, Number 207 (Tuesday, October 27, 1998)]
[Rules and Regulations]
[Pages 57249-57250]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-28677]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Part 203

RIN 1010-AC13


Royalty Relief for Producing Leases and Certain Existing Leases 
in Deep Water

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Correcting amendments.

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SUMMARY: This document contains corrections to the final regulations 
which were published in the Federal Register of Friday, January 16, 
1998 (63 FR 2605-2626), and also in 30 CFR Part 203, Revised as of July 
1, 1998. The corrections noted here are in the portion of these 
regulations related to the Royalty Relief for End-of-Life Leases.

EFFECTIVE DATE: November 1, 1998.

FOR FURTHER INFORMATION CONTACT: Marshall Rose, Chief, Economics 
Division, (703) 787-1538.

SUPPLEMENTARY INFORMATION:

Background

    The final regulations that are the subject of these corrections 
affect persons requesting reduction of oil and gas royalty under 
Sec. 1337(a)(3)(A) of the United States Code.

Need for Correction

    As published, the final regulations omit logical implications of 
the simplified relief approval process. The corrections make explicit 
when you should apply for royalty relief and the action we may take if 
we determine that you have not applied properly. The corrections also 
clarify which costs we consider allowable in the end-of-life 
circumstance.

List of Subjects in 30 CFR Part 203

    Continental shelf, Government contracts, Indians-lands, Minerals 
royalties, Oil and gas exploration, Public lands-mineral resources, 
Sulphur.

    Accordingly, 30 CFR Part 203 is corrected by making the following 
correcting technical amendments:

PART 203--RELIEF OR REDUCTION IN ROYALTY RATES

    1. The authority citation for Part 203 continues to read as 
follows:

    Authority: 25 U.S.C. 396 et seq.; 25 U.S.C. 396a et seq.; 25 
U.S.C. 2101 et seq.; 30 U.S.C. 181 et seq.; 30 U.S.C. 351 et seq.; 
30 U.S.C. 1001 et seq.; 30 U.S.C. 1701 et seq.; 31 U.S.C. 9701 et 
seq.; 43 U.S.C. 1301 et seq.; 43 U.S.C. 1331 et seq.; and 43 U.S.C. 
1801 et seq.

Subpart B--[Corrected]

    2. Subpart B is corrected by revising the word ``OLS'' in the 
Subpart heading to read ``OCS''.
    3. Section 203.50 is corrected by adding two sentences at the end 
of paragraph (a) to read as follows:


Sec. 203.50  Who may apply for end-of-life royalty relief?

    (a)* * * These 12 months should reflect the basic operation you 
intend to use until your resources are depleted. If you changed your 
operation significantly (e.g., begin re-injecting rather than 
recovering gas) during the qualifying months, or if you do so while we 
are processing your application, we may defer action on your 
application until you revise it to show the new circumstances.
* * * * *


Sec. 203.84  [Corrected]

    4. In Sec. 203.84, paragraph (b) is corrected by revising the 
citation ``30 CFR 220.013(a), (b), and (d) through (k)'' to read ``30 
CFR 220.013''.
    5. Section 203.84 is corrected by revising paragraphs (b)(7) and 
(c) to read as follows:


Sec. 203.84  What is in a net revenue and relief justification report?

* * * * *
    (b) * * *
    (7) Costs associated with existing obligations (e.g., royalty 
overrides or other forms of payment for acquiring the lease, 
depreciation on previously acquired equipment or facilities).
    (c) We may, in reviewing and evaluating your application, disallow 
costs when you have not shown they are necessary to operate the lease, 
or if they

[[Page 57250]]

are inconsistent with end-of-life operations.

    Dated: October 19, 1998.
John V. Mirabella,
Acting Chief, Engineering and Operations Division.
[FR Doc. 98-28677 Filed 10-26-98; 8:45 am]
BILLING CODE 4310-MR-P