[Federal Register Volume 65, Number 25 (Monday, February 7, 2000)]
[Notices]
[Pages 5886-5887]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-2598]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service


Announcement of Posting of Two Invitations for Bids on Natural 
Gas from Federal Properties in the Gulf of Mexico

AGENCY:  Minerals Management Service, Interior.

ACTION:  Notice of Invitations for Bids on Federal Royalty Gas.

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SUMMARY:  The Minerals Management Service has posted on MMS's Internet 
Home Page, and will make available in hard copy, public competitive 
offerings of approximately 490,000 mmBtu per day of natural gas, to be 
taken as royalty-in-kind from Federal properties in the Gulf of Mexico 
under two Invitations For Bids (IFB), Numbers MMS-RIK-2000-GOMR-002, 
and MMS-RIK-2000-GOMR-003.

DATES:  The two IFBs were posted on MMS's Internet Home Page on January 
21, 2000. Bids will be due to MMS at the posted receipt location on 
February 18, 2000. MMS will notify successful bidders on or about 
February 25, 2000. The Federal Government will begin actual taking of 
awarded royalty gas volumes for delivery to successful bidders for a 7-
month period beginning on April 1, 1999.

ADDRESSES:  The IFBs are posted on MMS's Home Page at http://www.mms.gov under the icon ``What's New.'' The IFBs 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 IFBs.

FOR FURTHER INFORMATION CONTACT:  For additional information on MMS's 
RIK pilots, contact Mr. Bonn J. Macy, Minerals Management Service, 1849 
C Street, NW, MS 4230,Washington DC 20240; telephone number (202) 208-
3827; fax (202)208-3918; e-mail [email protected]. For additional 
information concerning the IFB 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 [email protected].

SUPPLEMENTARY INFORMATION:  These offerings of natural gas continue 
MMS's RIK pilot program and will involve Federal properties in the Gulf 
of Mexico. MMS's objective is to identify the circumstances in which 
taking oil and gas royalties as a share of production 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.
    IFB Number MMS-RIK-2000-GOMR-002 offers approximately 280,000 mmBtu 
per day of natural gas from selected Federal properties located in the 
East Breaks, Garden Banks, High Island, East and West Cameron, and 
Vermillion areas of the Gulf of Mexico. This royalty gas flows through 
88 facility measurement points (FMP's) on five pipeline systems--High 
Island/UTOS, ANR, Transco/NHIS, Pelican, and Stingray. This production 
was offered most recently October 8, 1999, under IFB No. RIK-2000-GOMR-
001 for deliveries through March 31, 2000. Under terms of this new IFB, 
purchasers will, as before, take the royalty gas from these properties 
and locations near the lease and, in return, deliver a fixed daily 
volume of natural gas (based on monthly nominations) to the General 
Services Administration (GSA) at a specified location for GSA's use in 
managing supply commitments to Federal agency end users.
    IFB Number MMS-RIK-2000-GOMR-003 offers an additional natural gas 
volume of approximately 210,000 mmBtu per day from selected Federal 
properties in the East and West Cameron, Garden Banks, Vermilion,

[[Page 5887]]

South Marsh, Ship Shoal and Eugene Island areas. This production flows 
through about 84 FMP's on the Sea Robin and Bluewater Pipeline systems. 
Successful bidders will be required to deliver production volumes to an 
onshore location; further disposition of these volumes will be 
announced at a later date.
    Purchasers may bid on production from all FMPs on both pipelines, 
and/or for all FMPs on the Sea Robin Pipeline, and/or from all FMPs on 
individual segments of the Bluewater Pipeline.
    The following are some of the additional details regarding the 
offerings that were posted to MMS's website as two IFB's on January 21, 
2000.
     List of specific properties;
     For each property--FMP location and identification number, 
average daily royalty volume, 1-year production histories, 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 IFB in 
hard copy are being made available to oil and gas trade journals as 
well as in this Federal Register notice.

    Dated: January 31, 2000.
Walter D. Cruickshank,
Associate Director for Policy and Management Improvement.
[FR Doc. 00-2598 Filed 2-4-00; 8:45 am]
BILLING CODE 4310-MR-P