[Federal Register Volume 64, Number 192 (Tuesday, October 5, 1999)]
[Notices]
[Page 54054]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-25830]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service


Announcement of Posting of Invitation for Exchange of Natural Gas 
From Federal Properties in the Gulf of Mexico

AGENCY: Minerals Management Service, Interior.

ACTION: Notice of invitation for exchange of Federal royalty gas.

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SUMMARY: The Minerals Management Service will post on MMS's Internet 
Home Page, and make available in hard copy, a public competitive 
offering of approximately 260 million cubic feet per day of natural 
gas, to be taken as royalty-in-kind from Federal properties in the Gulf 
of Mexico Region (GOMR) under an Invitation For Exchange (IFE), Number 
MMS-RIK-2000-GOMR-001.

DATES: The IFE will be posted on MMS's Internet Home Page on or about 
October 8, 1999. Bids will be due to MMS, at the posted receipt 
location, on or about October 22, 1999. MMS will notify successful 
bidders on or about October 29, 1999. The Federal Government will begin 
actual taking of awarded royalty gas volumes for delivery to successful 
bidders for a 4-month period beginning on December 1, 1999. A 
preliminary list of properties from which MMS is considering taking 
royalty gas was posted September 27, 1999, on MMS's Internet Home Page.

ADDRESSES: The IFE will be posted on MMS's Home Page at http://
www.mms.gov under the icon ``What's New.'' The IFE may also be obtained 
by contacting Mr. Michael Del-Colle at the address in the FURTHER 
INFORMATION section. Bids should be submitted to the address provided 
in the IFE.

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 IFE document, terms, and process for Federal 
leases, contact Mr. Michael Del-Colle, Minerals Management Service, MS-
2510, 381 Elden Street, Herndon, VA 20170-4817; telephone number (703) 
787-1375; fax (703) 787-1009; e-mail Michael.Del-C[email protected].

SUPPLEMENTARY INFORMATION: This offering of natural gas in the IFE 
begins the third of MMS's three planned RIK pilots and will involve 
Federal properties in the Gulf of Mexico Region (GOMR). The first Pilot 
involved crude oil from Federal and State of Wyoming properties in 
Wyoming and the second was limited to Federal properties in the 8(g) 
zone of the GOMR, offshore of Texas. MMS's objective in this third 
pilot, as 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 its usual practice of collecting oil and gas royalties 
as a share of the value received by the lessee for sale of the 
production. This third pilot is expected to last 2 to 3 years.
    This IFE will offer approximately 260 million cubic feet per day of 
natural gas from about 146 Federal properties located in the High 
Island, East and West Cameron, and Sabine Pass areas of the GOMR. The 
royalty gas flows through about 75 facility measurement points (FMP's) 
on five pipeline systems.
    Purchasers may bid on production from individual properties and/or 
on groups of properties. Under the terms of the offer, successful 
bidders would take the royalty gas from specified properties and 
locations near the lease and, in return, deliver natural gas in 
equivalent amounts and qualities to a specified location. Bids will be 
due as specified in the IFE on October 22, 1999; successful bidders 
will be notified on or about October 29, 1999.
    The following are some of the additional details regarding the 
offering that will be posted in the IFE on or about October 8, 1999.
     List of specific properties;
     For each property--FMP location and identification number, 
average daily royalty volume, quality, current operator; and other 
pipeline information.
     Bid basis;
     Reporting requirements;
     Terms and conditions; and
     Contract format.
    Information on the internet posting and availability of the IFE in 
hard copy are being made available to oil and gas trade journals as 
well as in this Federal Register notice.

    Dated: September 29, 1999.
Walter D. Cruickshank,
Associate Director for Policy and Management Improvement.
[FR Doc. 99-25830 Filed 10-4-99; 8:45 am]
BILLING CODE 4310-MR-P