[Federal Register Volume 65, Number 140 (Thursday, July 20, 2000)]
[Notices]
[Page 45101]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-18342]


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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 IFB 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, will post on MMS's Internet Home Page and make 
available in hard copy a public competitive offering of approximately 
6,600 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 1435-02-00-RP-40329.

DATES: The IFB will be posted on MMS's Internet Home Page on or about 
July 25, 2000. Bids will be due for both, MMS and the State, at the 
posted receipt location on or about August 21, 2000. MMS and the State 
will notify successful bidders on or about August 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 October 1, 2000.

ADDRESSES: The IFB will be posted on RMP's Home page at http://www.rmp.mms.gov under the icon ``What's New.'' The IFB may also be 
obtained by contacting Mr. Todd Leneau 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 Mr. 
Todd Leneau, Minerals Management Service, MS 2730, P.O. Box 25165, 
Denver, Co 80225-0165; telephone number (303) 275-7385; fax (303) 275-
7303; 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; e-
mail: [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, or 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 6,600 bpd of crude oil from 380 
Federal and State properties located in Wyoming's Bighorn and Powder 
River Basins. The volume represents an increase of about 1,700 bpd 
compared to the most recent IFB, No. 31053, which offered 4,900 bpd of 
crude oil for delivery to purchasers for production months April 2000 
through September 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 August 21, 2000, and successful bidders will be 
notified on or about August 25, 2000.
    MMS is allowing bidders to self-certify their financial solvency 
for the purpose of pre-qualifying to bid without the 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 July 25, 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: July 14, 2000.
Lucy Querques Denett,
Associate Director for Royalty, Management Program.
[FR Doc. 00-18342 Filed 7-19-00; 8:45 am]
BILLING CODE 4310-MR-P