[Federal Register Volume 69, Number 100 (Monday, May 24, 2004)]
[Rules and Regulations]
[Page 29432]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-11665]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Part 206

RIN 1010-AD04


Federal Oil Valuation

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Final rule--technical amendment.

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SUMMARY: The July 6, 2004, effective date of the final rule originally 
published May 5, 2004, entitled ``Federal Oil Valuation,'' is changed 
to August 1, 2004, to correct an inadvertent clerical error.

DATES: The correct effective date of the rule published on May 5, 2004, 
at 69 FR 24959, is August 1, 2004.

FOR FURTHER INFORMATION CONTACT: Sharron L. Gebhardt, Lead Regulatory 
Specialist, Chief of Staff Denver Office, Minerals Revenue Management, 
MMS at (303) 231-3211. E-mail: [email protected]. Address: P.O. 
Box 25165, MS 320B2, Denver, Colorado 80225-0165.

SUPPLEMENTARY INFORMATION: The MMS published a final rule entitled 
``Federal Oil Valuation'' in the Federal Register on May 5, 2004 (69 FR 
24959). The May 2004 final rule amended the existing regulations 
governing the valuation of crude oil produced from Federal leases for 
royalty purposes, and related provisions governing the reporting 
thereof. The amendments primarily affect which published market prices 
are most appropriate to value crude oil not sold at arm's length and 
what transportation deductions should be allowed. The effective date 
for the May 2004 final rule as originally published is July 6, 2004.
    The original intent in publishing the May 2004 final rule was to 
make the rule become effective on the first day of the calendar month 
that is more than 60 days following the date of publication in the 
Federal Register. Through an inadvertent clerical error, just prior to 
publication, the effective date was changed to 60 days following the 
date of publication in the Federal Register. Consequently, the rule was 
published with an effective date of July 6, 2004. If left unchanged, 
Federal lessees would have to apply the existing rule to oil produced 
from July 1 through July 5, 2004, and then apply the May 2004 final 
rule to oil produced from July 6 to July 31, 2004. It was not MMS's 
intent to require Federal lessees to value oil produced during a 
particular production month (in this case, July 2004) using two 
different valuation rules. The MMS recognizes that to do so would be 
both administratively burdensome and costly to Federal lessees and MMS. 
Therefore, MMS is changing the effective date of the May 2004 final 
rule from July 6, 2004, to August 1, 2004.
    This change does not require public comment under 5 U.S.C. 
553(b)(3)(B). Public comment is unnecessary for the reasons explained 
above. Under 5 U.S.C. 553(d), MMS, for good cause, finds that this 
final rule--technical amendment, should be immediately final upon 
publication to correct MMS's inadvertent clerical error regarding the 
May 2004 final rule's effective date.

    Dated: May 17, 2004.
Rebecca W. Watson,
Assistant Secretary for Land and Minerals Management.
[FR Doc. 04-11665 Filed 5-21-04; 8:45 am]
BILLING CODE 4310-MR-P