[Federal Register Volume 63, Number 250 (Wednesday, December 30, 1998)]
[Notices]
[Pages 71947-71948]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-34479]


-----------------------------------------------------------------------

DEPARTMENT OF THE INTERIOR

Minerals Management Service


Announcement of Posting of Invitation for Bids on Crude Oil From 
Federal Leases and State of Wyoming Properties in Wyoming

AGENCY: Minerals Management Service, Interior.

ACTION: Notice of Invitation for Bids on Federal and State of Wyoming 
crude oil in the State of Wyoming.

-----------------------------------------------------------------------

SUMMARY: The Minerals Management Service (MMS) will post on MMS's 
Internet Home Page, and make available in hard copy, a public 
competitive offering of approximately 3,810 barrels per day (bpd) of 
crude oil, to be taken as royalty-in-kind (RIK) from a combination of 
Federal properties and State of Wyoming (State) properties in Wyoming's 
Bighorn and Powder River Basins through an Invitation For Bids (IFB), 
Number 3984.

DATES: The IFB will be posted on MMS's Internet Home Page on or about 
January 4, 1999. Bids will be due to MMS and State of Wyoming, at the 
posted receipt location for both, on or about February 4, 1999. MMS and 
the State of Wyoming will notify successful bidders on or about 
February 12, 1999. The Federal Government and the State will begin 
actual taking of awarded royalty oil volumes for delivery to

[[Page 71948]]

successful bidders for a 6-month period beginning on or about April 1, 
1999.

ADDRESSES: The IFB will be posted on MMS's Home page at http://
www.mms.gov under the icon ``What's New.'' The IFB may also be obtained 
by contacting Ms. Betty Estey at the address in the FURTHER INFORMATION 
section. Bids should be submitted to the address provided in the IFB.

FOR FURTHER INFORMATION CONTACT: For additional information on MMS's 
RIK pilots, contact Mr. Bonn J. Macy, Minerals Management Service, 1849 
C Street, N.W., MS 4230, Washington D.C. 20240; telephone number (202) 
208-3827; fax (202) 208-3918; e-mail Bonn.M[email protected]. For additional 
information concerning the IFB document, terms, and process for Federal 
leases, contact Ms. Betty Estey, Minerals Management Service, MS 2510, 
381 Elden Street, Herndon, VA 20170-4817; telephone number (703) 787-
1352; fax (703) 787-1009; e-mail Betty.E[email protected]. For additional 
information concerning the IFB document, terms, and process for State 
of Wyoming properties, contact Mr. Harold Kemp, Office of State Lands 
and Investments, Herschler Building, 3rd Floor West, 122 West 25th 
Street, Cheyenne, WY 82002-0600; telephone number (307) 777-6643; Fax: 
(307) 777-5400; Email: [email protected].

SUPPLEMENTARY INFORMATION: The offering of crude oil in the IFB is a 
continuation of Phase I of the first of MMS's three planned RIK pilots. 
The other two RIK pilots will be in the Gulf of Mexico. The State's 
objective in this pilot and MMS's objective in all its pilots is to 
identify the circumstances in which taking oil and gas royalties as a 
share of production (RIK) is a viable alternative to the agencies' 
usual practice of collecting oil and gas royalties as a share of the 
value received by the lessee for sale of the production. The Wyoming 
pilot is a joint project with the State of Wyoming expected to last 2 
to 3 years.
    The sale will involve approximately 3,810 bpd of crude oil from 183 
Federal and State properties located in Wyoming's Bighorn and Powder 
River Basins. RIK oil from these Federal properties was previously 
offered under IFB No. 3947 for delivery to purchasers for production 
months October 1998 through March 1999. The State properties are being 
added to this IFB.
    Purchasers may bid on individual properties and/or on the entire 
packages of Wyoming sweet crude oil (1,135 bpd), Wyoming general sour 
crude oil (820 bpd), or Wyoming asphaltic sour crude oil (1,855 bpd). 
Bids will be due as specified in the IFB on or about February 04, 1999; 
successful bidders will be notified on or about February 12, 1999.
    The following are some of the additional details regarding the 
offerings that will be posted in the IFB on or about January 4, 1999.
     List of specific properties;
     For each property, royalty rate(s), average daily royalty 
volume, quality, transportation method (truck/pipe), and current 
transporter and operator;
     Bid basis;
     Reporting requirements;
     Terms and conditions; and
     Contract format.
    The internet posting and availability of the IFB in hard copy are 
being announced in oil and gas trade journals as well as in this 
Federal Register notice.

    Dated: December 23, 1998.
Anthony Gallagher,
Acting Associate Director for Policy and Management Improvement.
[FR Doc. 98-34479 Filed 12-29-98; 8:45 am]
BILLING CODE 4310-MR-U