[Federal Register Volume 65, Number 21 (Tuesday, February 1, 2000)]
[Notices]
[Pages 4840-4841]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-2132]


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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.

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SUMMARY:  The Minerals Management Service (MMS), in cooperation with 
the State of Wyoming (State), will post on MMS's Internet Home Page and 
make available in hard copy a public competitive offering of 
approximately 4,900 barrels per day (bpd) of crude oil, to be taken as 
royalty-in-kind (RIK) from a combination of Federal and State 
properties in Wyoming's Bighorn and Powder River Basins through an 
Invitation For Bids (IFB), Number 31053.

DATES:  The IFB will be posted on MMS's Internet Home Page on or about 
February 1, 2000. Bids will be due to

[[Page 4841]]

MMS and the State, at the posted receipt location for both, on or about 
February 21, 2000. MMS and the State will notify successful bidders on 
or about February 25, 2000. The Federal Government and the State will 
begin actual taking of awarded royalty oil volumes for delivery to 
successful bidders for a 6-month period beginning April 1, 2000.

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 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 [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 in this IFB continues the 
ongoing RIK program in Wyoming. The State and MMS believe that taking 
oil royalties as a share of production (RIK) from the properties 
offered in the IFB is a viable alternative to the agencies' usual 
practice of collecting oil royalties as a share of the value received 
by the lessee for sale of the production. Both agencies will continue 
to monitor the effectiveness of the RIK approach to taking crude oil 
royalties in Wyoming.
    This sale involves approximately 4,900 bpd of crude oil from 85 
Federal and State properties located in Wyoming's Bighorn and Powder 
River Basins. The volume represents an increase of about 1,650 bpd 
compared to the most recent IFB, No. 31010, which offered 3,250 bpd of 
crude oil for delivery to purchasers for production months October 1999 
through March 2000. Most production is pipeline-connected. In the few 
instances where there is also some trucked production on a property, 
Exhibit A to the IFB will detail those properties.
    Purchasers may bid on specific pipeline subgroups and/or on the 
entire packages of Wyoming sweet crude oil, Wyoming general sour crude 
oil, or Wyoming asphaltic sour crude oil. Bids will be due as specified 
in the IFB on or about February 21, 2000 and successful bidders will be 
notified on or about February 25, 2000. MMS is considering allowing 
bidders to self-certify their current debt ratio for the purpose of 
pre-qualifying to bid without need for a letter of credit. Details will 
be available in the IFB.
    The following are some of the additional details regarding the 
offerings that will be posted in the IFB on or about February 1, 2000:
     List of specific properties;
     For each property--tract allocations, royalty rate(s), 
average daily royalty volume, quality, 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: January 27, 2000.
Walter D. Cruickshank,
Associate Director for Policy and Management Improvement.
[FR Doc. 00-2132 Filed 1-31-00; 8:45 am]
BILLING CODE 4310-MR-P