[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