[Federal Register Volume 64, Number 126 (Thursday, July 1, 1999)]
[Notices]
[Pages 35678-35679]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-16744]


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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, and potential purchasers 
concerning royalty-in-kind gas produced from Federal leases 
administered by MMS in the Gulf of Mexico Region. 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 July 20, 1999, from 10:00 a.m. until 
3:00 p.m., Central Daylight Time.

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

FOR FURTHER INFORMATION CONTACT: Mr. Bonn J. Macy, Minerals Management 
Service, 1849 C Street, NW, MS 4230, Washington, D.C. 20240-0001; 
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 CONTACT section.

SUPPLEMENTARY INFORMATION: The subject of this Notice is preparation 
for the Gulf of Mexico Royalty-in-Kind (RIK) Pilot, the last of three 
planned RIK Pilots being implemented by MMS. This Pilot, in MMS's Gulf 
of Mexico Region (GOMR), will potentially involve large numbers of 
leases, operators, payors, lessees, and potential purchasers. The GOMR 
Pilot will be similar to the Pilot we are currently operating in the 
``8(g)'' zone off the coast of Texas. Much of what we have done in the 
8(g) Pilot will be expanded and further developed in the GOMR. Gas 
volumes in the GOMR

[[Page 35679]]

Pilot will be substantially larger, involving as much as 800 million 
cubic feet of gas per day. The objectives of this GOMR Pilot program 
for Federal gas are, as with all three Pilots, to determine the key 
factors required for a successful Federal RIK program and to test its 
effectiveness for collecting Federal oil and gas royalties. Consistent 
with these objectives, MMS seeks the comments and suggestions of the 
public and our stakeholders. We urge all with an interest in the 
program to attend and participate in the discussion.
    MMS will direct operators of affected Federal leases and associated 
communitization/unit agreements to deliver royalty volumes in kind to 
the Federal Government beginning this fall. 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 GOMR Pilot.
    2. Intent of the GOMR Pilot.
    3. Responsibilities of Federal Government or its purchasers or 
agents:

 100 per cent take of all royalty volumes delivered.
 Communication with operator.
 Imbalance procedures.
 Reporting.

    4. Responsibilities of operators:
 Reporting.

 Imbalance procedures.
 Communication with purchaser or agent.
 Verification of royalty volumes.
 Project termination and next phase of the pilot.

    5. Delivery for Federal RIK gas volumes and transportation 
arrangements.
    6. Sales of RIK natural gas production:

    ' Within the Federal Government.
    ' To the public.

    7. Question and answer period.

    Dated: June 25, 1999.
Walter D. Cruickshank,
Associate Director for Policy and Management Improvement.
[FR Doc. 99-16744 Filed 6-30-99; 8:45 am]
BILLING CODE 4310-MR-P