[Federal Register Volume 63, Number 208 (Wednesday, October 28, 1998)]
[Notices]
[Page 57703]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-28910]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service


Announcement of Minerals Management Service Meeting on Natural 
Gas Royalty-in-Kind Pilot Program in the Federal Gulf of Mexico Region

AGENCY: Minerals Management Service, Interior.

ACTION: Notice of meeting.

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SUMMARY: The Minerals Management Service (MMS) will hold a public 
meeting with lessees, operators, and payors on royalty-in-kind (RIK) 
gas produced from a number of Federal leases in the 8(g) zone offshore 
Texas in MMS's Gulf of Mexico Region (GOMR). The purpose of the meeting 
is to discuss the operational issues involved in implementing sales of 
Federal gas production to be taken as royalty-in-kind.

DATES: The meeting will be held on November 10, 1998, from 10:00 a.m. 
until 5:00 p.m., Central time.

ADDRESSES: The meeting will be held at MMS's Houston Compliance 
Division Office, in Room 104, at 4141 N. Sam Houston Parkway, Houston, 
Texas.

FOR FURTHER INFORMATION CONTACT: Mr. Bonn J. Macy, Minerals Management 
Service, 1849 C Street, NW, MS 4230, Washington, D.C. 20240; telephone 
number (202) 208-3827; fax (202) 208-3918; e-mail Bonn.M[email protected].

COMMENTS: Written comments on the meetings or the topics for discussion 
listed below should be addressed to Mr. Bonn J. Macy at the address 
given in the FOR FURTHER INFORMATION section.

SUPPLEMENTARY INFORMATION: The subject of this Notice is the 
continuation of MMS's planning process for the Texas 8(g) gas RIK pilot 
in MMS's GOMR. This is one of three RIK pilot programs MMS is 
developing based on the recommendations in our 1997 RIK Feasibility 
Study. The 8(g) zone is a 3-mile wide band of Federal waters that lies 
directly adjacent to the State's jurisdiction. In the case of Texas, 
the band begins at 10.35 miles and extends out 3 miles. The objective 
of the Texas 8(g) GOMR pilot program for Federal gas is, as with all 
three pilots, to test the effectiveness of RIK for collecting Federal 
oil and gas royalties. Operators of affected Federal leases and 
associated communication/unit agreements have been directed to deliver 
royalty volumes in-kind to the Federal Government beginning December 1, 
1998. For all other leases or agreements, payors will continue paying 
royalties based on current requirements.
    Topics to be discussed at the meeting are:
    1. Overall framework and phases of the Texas 8(g) GOMR pilot.
    2. Intent of the pilot.
    3. Point of delivery for Federal RIK gas volumes and transportation 
arrangements.
    4. Operator responsibilities:
     Reporting;
     Imbalance procedures;
     Communication with purchaser or agent;
     Verification of royalty volumes; and
     Project termination and next phase of the pilot.
    5. Federal Government or its agent/purchaser's responsibilities:
     100% take of all royalty volumes delivered;
     Communication with operator;
     Imbalance procedures; and
     Reporting.
    6. Question and Answer Period.
    The operators and payors of affected properties have been notified 
by MMS of this meeting. If you are the operator or lessee of an 
affected property, you are urged to attend or send representative(s) to 
the November 10, 1998, meeting to discuss these issues at the location 
provided under ADDRESSES in this Notice.

    Dated: October 23, 1998.
Walter D. Cruickshank,
Associate Director for Policy and Management Improvement.
[FR Doc. 98-28910 Filed 10-27-98; 8:45 am]
BILLING CODE 4310-MR-M