[Federal Register Volume 65, Number 226 (Wednesday, November 22, 2000)]
[Corrections]
[Pages 70386-70387]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: C0-29372]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Part 203

RIN 1010-AC71


Relief or Reduction in Royalty Rates--Deep Water Royalty Relief 
for OCS Oil and Gas Leases Issued After 2000

Correction

    In proposed rule document 00-29372 beginning on page 69259 in the 
issue of Thursday, November 16, 2000, make the following corrections:
    1. On page 69263, the table headings are corrected to read as 
follows:


               Proposed Modifications to DWRR Applications
------------------------------------------------------------------------
                                      Current and      Proposed changes
                                  continuing program -------------------
             Element             --------------------  Applies to post-
                                  Applies to pre-Act    2000 deep water
                                        leases              leases
------------------------------------------------------------------------
Eligibility (Central, Western,    Leases in 200m or   Leases in 200m or
 and western part of Eastern       more water depth    more water depth
 Gulf of Mexico).                  issued before       issued after
                                   1996.               2000.
Royalty-free production can come  Any production      Only production
 from.                             from the field      from resources
                                   until cumulative    identified in the
                                   recovery volume     application until
                                   equals the          cumulative
                                   suspension volume.  recovery equals
                                                       the suspension
                                                       volume
Minimum suspension volume for     For fields that     For development
 non-producing leases.             did not produce     projects, matches
                                   before the Act,     volumes
                                   matches eligible    designated in
                                   lease suspension    sale and lease
                                   volumes (17.5,      documents for
                                   52.5, 87.5 MMBOE)   various water
                                   in equivalent       depths of 200m or
                                   water depths.       greater plus 10
                                                       percent of
                                                       reserves.
Credit for sunk costs in          For fields with     For development
 application.                      pre-Act leases      projects, after-
                                   that did not        tax cost of only
                                   produce before      the discovery
                                   the application,    well, except when
                                   after-tax costs     the application
                                   of and after        involves a pre-
                                   discovery well      Act lease.
                                   used in
                                   qualification.
Threshold oil and gas price       Statute sets        Lease terms set
 levels for lifting relief.        threshold price     threshold price
                                   for light sweet     for light sweet
                                   crude oil and       crude oil and
                                   natural gas.        natural gas.
------------------------------------------------------------------------

    2. On page 69264, the table headings are corrected to read as 
follows:


[[Page 70387]]



               Proposed Modifications to DWRR Applications
------------------------------------------------------------------------
                                      Current and      Proposed changes
                                     discontinuing   -------------------
                                        program
             Element             -------------------- Applies to pre-Act
                                  Applies to pre-Act  and post-2000 deep
                                        leases           water leases
------------------------------------------------------------------------
Discount rate used in evaluation  Same rate used on   Use 10% on
                                   viability and       viability test,
                                   profitability       applicant chooses
                                   tests, applicant    rate between 10%
                                   chooses between     and 15% for
                                   10% and 15%.        profitability
                                                       test.
Redetermination of field          Available for new   Available anytime
 qualification or volume by MMS.   well or seismic     after relief
                                   data, 25% lower     relinquished or
                                   prices, or 20%      withdrawn.
                                   higher cost.        Otherwise, for
                                                       new well or
                                                       seismic data, 25%
                                                       lower prices, 20%
                                                       higher cost, or
                                                       more efficient
                                                       development
                                                       system.
Deadline for starting             Within 1 year of    Within 18 months
 fabrication.                      approval,           of approval,
                                   extendable for up   extendable for up
                                   to 1 year.          to 6 months.
Correction for overestimating     Retain only half    Retain only half
 cost by 20% or more.              of suspension       or smaller of
                                   volume granted.     granted
                                                       suspension volume
                                                       or most likely
                                                       resource size.
Minimum suspension volume for     None..............  10 percent
 expansion project.                                    reserves.
Credit for sunk costs in          None..............  After-tax cost of
 application for expansion                             the discovery
 project.                                              well.
------------------------------------------------------------------------

Sec. 203.74  [Corrected]

    3. On page 69273, in the second column, in the section heading, 
``Sec. 203.70'' should read ``Sec. 203.74''.
[FR Doc. C0-29372 Filed 11-21-00; 8:45 am]
BILLING CODE 1505-01-D