[Federal Register Volume 65, Number 159 (Wednesday, August 16, 2000)]
[Proposed Rules]
[Page 49957]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-20815]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Part 206

RIN 1010-AC59


Valuation of Federal Geothermal Resources

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Withdrawal of advance notice of proposed rulemaking.

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SUMMARY: MMS withdraws its August 19, 1999, Advance Notice of Proposed 
Rulemaking (Advance Notice) regarding the valuation of Federal 
geothermal resources. After further analysis, we conclude that the 
concerns that prompted the Advance Notice can be satisfactorily 
addressed using alternative valuation methods available in existing 
regulations. This notice terminates the geothermal rulemaking process 
initiated by the Advance Notice.

DATES: The advance notice of proposed rulemaking is withdrawn as of 
August 16, 2000.

ADDRESSES: See FOR FURTHER INFORMATION CONTACT section below.

FOR FURTHER INFORMATION CONTACT: Charles Brook, Royalty Valuation 
Division, MMS; telephone, (303) 275-7250; E-mail, 
[email protected]; mailing address, Minerals Management Service, 
Royalty Valuation Division, P.O. Box 25165, MS 3153, Denver, Colorado 
80225-0165.

SUPPLEMENTARY INFORMATION: MMS published an Advance Notice of Proposed 
Rulemaking in the Federal Register on August 19, 1999 (64 FR 45213), 
requesting public comments on new methods of valuing, for royalty 
purposes, Federal geothermal resources that are not subject to a sales 
transaction (the ``no-sales'' resources). MMS took this action in 
response to concerns raised by several California congressional 
representatives and their constituent county governments over declining 
royalties. The concerns centered around the use of the netback 
procedure to value no-sales electrical generation resources. MMS also 
solicited comments on valuation standards for direct-use resources.
    The comment period on the Advance Notice closed on October 18, 
1999. MMS also held a public workshop on October 7, 1999 (64 FR 50026), 
and met with several industry representatives on December 7, 1999.
    MMS received written comments from 20 respondents, including 
representatives of States, county governments, and industry; members of 
a municipal utility; and a Member of Congress. All of the comments 
focused on the valuation of electrical generation resources. Fourteen 
of the 20 respondents--all of the industry representatives, the members 
of the municipal utility, a Member of Congress, and a State 
representative--commented on the existing netback valuation procedure. 
The remaining 6 respondents commented on other geothermal valuation 
procedures. MMS received no comments on the valuation of direct-use 
resources.
    The comments did not reveal a preferred valuation method for no-
sales resources. In general, advocates of one valuation method found 
fault with, or were fundamentally opposed to, other methods. Some 
respondents also questioned the merits of the rulemaking, stating that 
MMS had not fully presented its reasons for the new valuation rules.
    Based on the comments received, both written and verbal, the impact 
of declining royalties appears to affect only a few county governments 
and geothermal lessees operating within those counties. Both MMS and 
the lessees involved have taken steps to mitigate this impact by 
exploring alternative valuation methods within the existing regulatory 
structure. These efforts are proving successful and are satisfying the 
concerns of the affected county governments and Members of Congress. 
Accordingly, MMS believes it is no longer necessary to pursue a 
rulemaking for geothermal valuation and withdraws its August 19, 1999, 
Advance Notice.

    Dated: August 10, 2000.
Lucy Querques Denett,
Associate Director for Royalty Management.
[FR Doc. 00-20815 Filed 8-15-00; 8:45 am]
BILLING CODE 4310-MR-P