[Federal Register Volume 64, Number 153 (Tuesday, August 10, 1999)]
[Rules and Regulations]
[Pages 43288-43289]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-20470]



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DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Part 206

RIN 1010-AC00


Revision of Valuation Regulations Governing Oil and Gas 
Transportation and Processing Allowances, and Coal Washing and 
Transportation Allowances

AGENCY: Minerals Management Service, Interior.

ACTION: Correcting amendments.

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SUMMARY: This document contains corrections to final regulations 
concerning oil and gas and coal allowances on Federal and Indian leases 
which were published in the Federal Register on Monday, February 12, 
1996, (61 FR 5447).

DATES: Effective on March 1, 1996.

FOR FURTHER INFORMATION CONTACT: David S. Guzy, Chief, Rules and 
Procedures Staff, Royalty Management Program, Minerals Management 
Service, telephone (303) 231-3432, fax (303) 231-3194, e-Mail 
David__G[email protected].

SUPPLEMENTARY INFORMATION:

Background

    The Minerals Management Service (MMS) is making corrections to a 
final rule published in the Federal Register on February 12, 1996 (61 
FR 5447). This final rule, effective March 1, 1996, amended 30 CFR part 
206-PRODUCT VALUATION regulations for oil and gas transportation and 
processing allowances for production from Federal leases. It also 
amended the regulations for coal washing and transportation allowances 
for production from Federal leases. The final rule did not change the 
existing regulations applicable to Indian leases.

Need for Correction

    As published, the final regulations in 30 CFR part 206 contain 
errors which may prove to be misleading and need to be clarified.

List of Subjects in 30 CFR Part 206

    Coal, Continental Shelf, Geothermal energy, Government contracts, 
Indian lands, Mineral royalties, Natural gas, Petroleum, Public lands--
mineral resources, Reporting and recordkeeping requirements.

    Accordingly, 30 CFR part 206 is corrected by making the following 
correcting amendments:

PART 206--PRODUCT VALUATION

    1. The authority citation for part 206 continues to read as 
follows:

    Authority: 5 U.S.C. 301 et seq.; 25 U.S.C. 396 et seq., 396a et 
seq., 2101 et seq.; 30 U.S.C. 181 et seq., 351 et seq., 1001 et 
seq., 1701 et seq.; 31 U.S.C. 9701.; 43 U.S.C. 1301 et seq., 1331 et 
seq., and 1801 et seq.

Subpart B--Indian Oil


Sec. 206.51 Definitions  [Corrected]

    2. In Sec. 206.51, definition of gross proceeds, remove the word 
``terminating'' in the third sentence and add, in its place, the word 
``terminaling.''
    3. In Sec. 206.51, definition of tar sands, remove the word 
``either,'' the comma after the word ``temperature,'' and the phrase 
``or contains quarrying.'' End the sentence with a period.


Sec. 206.53  [Corrected]

    4. In Sec. 206.53(c), remove the word ``proved'' in the second 
sentence and add, in its place, the word ``approved.''

Subpart D--Federal Gas


Sec. 206.151  [Corrected]

    5. In Sec. 206.151, definition of gross proceeds, remove the next-
to-last word in the first sentence, ``oil,'' and add, in its place, the 
words ``gas, residue gas, and gas plant products.'' Also, remove the 
third sentence.


Sec. 206.156  [Corrected]

    6. In Sec. 206.156(d), remove the word ``oil'' in the last 
sentence, and add, in its place, the words ``unprocessed gas, residue 
gas, and gas plant products.''


Sec. 206.158  [Corrected]

    7. In Sec. 206.158(e), remove the word ``transportation'' in the 
second sentence and add, in its place, the word ``processing.'' Also 
remove the word ``oil'' in the second sentence and add, in its place, 
the words ``gas plant products.''
    8. In Sec. 206.159 paragraph (a)(1)(i), remove the word 
``transportation'' in the last sentence and add, in its place, the word 
``processing.'' In paragraph (e)(2), remove the word ``transporting'' 
and add, in its place, the word ``processing.''
    9. In the last section in Subpart D, Sec. 206.106, correct the 
section number to read ``206.160.''

Subpart E--Indian Gas


Sec. 206.172  [Corrected]

    10. In Sec. 206.172(h), remove both instances of the words 
``pursuant to'' and add, in their place, the word ``under.''


Sec. 206.173  [Corrected]

    11. In Sec. 206.173(a)(2), remove the word ``section'' immediately 
before the words ``of this part'' and add, in its place, 
``Sec. 206.52.''


Sec. 206.174  [Corrected]

    12. In Sec. 206.174(d)(2), remove the reference ``202.171(c)'' in 
the first sentence, and add, in its place, ``202.151(b) and (c).''


Sec. 206.176  [Corrected]

    13. In Sec. 206.176(c)(3), remove the last sentence and add, in its 
place, the sentence ``Under no circumstances will the value for royalty 
purposes be reduced to zero.''


Sec. 206.177  [Corrected]

    14. In Sec. 206.177 paragraph (b)(3)(ii), first sentence, remove 
the letter ``(i)'' after the word ``paragraph'' and add, in its place, 
the words ``(b)(3)(i) of this section.'' In paragraph (d)(1), first 
sentence, remove the word ``processing,'' and add, in its place, the 
word ``transportation.''

Subpart F--Federal Coal


Sec. 206.251  [Corrected]

    15. In Sec. 206.251, definition of like-quality coal, add the word 
``that'' before the word ``has.''


Sec. 206.258  [Corrected]

    16. In Sec. 206.258(a), remove the second sentence and add, in its 
place, the sentence ``Under no circumstances will the authorized 
washing allowance and the transportation allowance reduce the value for 
royalty purposes to zero.''


Sec. 206.259  [Corrected]

    17. In Sec. 206.259(c)(2)(ii), second sentence, remove the word 
``processing'' and add, in its place, the word ``washing.''
    18. In Sec. 206.261, revise paragraph (b) to read as follows:


Sec. 206.261  Transportation allowances--general.

* * * * *
    (b) Under no circumstances will the authorized washing allowance 
and the transportation allowance reduce the value for royalty purposes 
to zero.
* * * * *
    19. In Sec. 206.262, remove reserved paragraph (c)(2)(iv), 
redesignate paragraph (c)(2)(v) as paragraph (c)(2)(iv), add paragraphs 
(d)(2) and

[[Page 43289]]

(d)(3), and revise paragraph (e)(2). The added and revised text reads 
as follows:


Sec. 206.262  Determination of transportation allowances.

* * * * *
    (d) * * *
    (2) If a lessee erroneously reports a transportation allowance 
which results in an underpayment of royalties, interest shall be paid 
on the amount of that underpayment.
    (3) Interest required to be paid by this section shall be 
determined in accordance with 30 CFR 218.202.
    (e) * * *
    (2) The lessee must submit a corrected Form MMS-2014 to reflect 
actual costs, together with any payments, in accordance with 
instructions provided by MMS.
* * * * *


Sec. 206.263  [Corrected]

    20. In Sec. 206.263(b), remove the words ``pursuant to'' and add, 
in its place, the word ``under.'' Also, remove the word ``in'' and add, 
in its place, the word ``is.''


Sec. 206.264  [Corrected]

    21. In Sec. 206.264, remove the first word ``In'' and add, in its 
place the word ``If.''

Subpart J--Indian Coal


Sec. 206.451  [Corrected]

    22. In Sec. 206.451, definition of like-quality coal, add the word 
``that'' before the word ``has.''
    23. In Sec. 206.457, revise the last sentence of paragraph (a) to 
read as follows:


Sec. 206.457  Washing allowances--general.

    (a) * * * Under no circumstances will the authorized washing 
allowance and the transportation allowance reduce the value for royalty 
purposes to zero.
* * * * *
    24. In Sec. 206.460 revise paragraph (b) to read as follows:


Sec. 206.460  Transportation allowances--general.

* * * * *
    (b) Under no circumstances will the authorized washing allowance 
and the transportation allowance reduce the value for royalty purposes 
to zero.
* * * * *


Sec. 206.461  [Corrected]

    25. In Sec. 206.461(e)(1), last sentence, add the word ``entitled'' 
before the word ``to.''


Sec. 206.462  [Corrected]

    26. In Sec. 206.462 paragraph (b), remove the word ``in'' and add, 
in its place, the word ``is.'' In paragraph (c), remove the section 
number ``206.251'' and add, in its place, ``206.451.''


Sec. 206.463  [Corrected]

    27. In Sec. 206.463, remove the first word ``In'' and add, in its 
place, the word ``If.''


Sec. 206.464  [Corrected]

    28. In Sec. 206.464(a), remove the section number ``206.465'' in 
the sentence and add, in its place, ``206.456.''

    Dated: August 3, 1999.
Lucy Querques Denett,
Associate Director for Royalty Management.
[FR Doc. 99-20470 Filed 8-9-99; 8:45 am]
BILLING CODE 4310-MR-P