[Federal Register Volume 69, Number 227 (Friday, November 26, 2004)]
[Rules and Regulations]
[Pages 68805-68806]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-26111]


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DEPARTMENT OF THE INTERIOR

30 CFR Part 204

RIN 1010-AC30


States' Decisions on Participating in Accounting and Auditing 
Relief for Federal Oil and Gas Marginal Properties

AGENCY: Minerals Management Service, Interior.

ACTION: Notice of States' decisions to participate or not participate 
in accounting and auditing relief for Federal oil and gas marginal 
properties located in their State for calendar year 2005.

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SUMMARY: The Minerals Management Service's (MMS) final regulations 
providing accounting and auditing relief for marginal Federal oil and 
gas properties, published on September 13, 2004 (69 FR 55076), require 
MMS to notify industry of the decisions by States concerned to allow or 
not to allow one or both forms of relief in their State by publishing 
the decisions in the Federal Register. As required under the 
regulation, MMS provided those States that receive a portion of the 
Federal royalties with a list of qualifying marginal Federal oil and 
gas properties located in their State so that each affected State could 
decide whether to participate in one or both relief options. This 
Notice provides the decisions by the States concerned under the 
Accounting and Auditing Relief for Marginal Properties rule (rule) to 
allow one or both types of relief.

DATES: Effective Date: January 1, 2005.

FOR FURTHER INFORMATION CONTACT: Mary Williams, Manager, Federal 
Onshore Oil and Gas Compliance and Asset Management, telephone (303) 
231-3403, FAX (303) 231-3744, e-mail to [email protected], or P.O. 
Box 25165, MS 392B2, Denver Federal Center, Denver, Colorado 80225-
0165.

SUPPLEMENTARY INFORMATION:
    Introduction: The rule implemented certain provisions of section 7 
of the Federal Oil and Gas Royalty Simplification and Fairness Act of 
1996. The rule provides two options for relief: (1) notification-based 
relief for annual reporting, and (2) other requested relief, as 
proposed by industry and approved by MMS and the State concerned. The 
rule requires that MMS publish by December 1 of each year, a list of 
the States concerned and their decision on marginal property relief.
    To qualify for the first option of relief (notification-based 
relief) for Calendar Year 2005, properties must have produced less than 
1,000 barrels-of-oil-equivalent (BOE) per year for the base period 
(July 1, 2003--June 30, 2004). Annual reporting relief will begin on 
January 1, 2005, with the annual report and payment due February 28, 
2006 (unless an estimated payment is on file, which will move the due 
date to March 31, 2006).
    To qualify for the second option of relief (other requested 
relief), properties must have produced less than 15 BOE per well per 
day for the base period.
    The following table shows states with marginal properties from 
which a portion of the royalties are shared between MMS and the state 
and their decision to allow one or both forms of relief.

------------------------------------------------------------------------
                                   Participating in    Participating in
                                  notification-based     request-based
         State concerned            relief?  (less      relief?  (less
                                  than 1,000 BOE per    than 15 BOE per
                                         year)           well per day)
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Alabama.........................  No................  No.
Arkansas........................  No................  No.
California......................  No................  No.
Colorado........................  No................  No.
Kansas..........................  Yes...............  No.
Louisiana.......................  Yes...............  Yes.
Michigan........................  Yes...............  No.
Montana.........................  Yes...............  No.
North Dakota....................  No................  No.
New Mexico......................  No................  No.
Nevada..........................  No................  No.
Oklahoma........................  Yes...............  Yes.
South Dakota....................  No................  No.
Utah............................  No................  No.
Wyoming.........................  Yes...............  No.
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[[Page 68806]]

    Federal oil and gas properties located in all other States, where a 
portion of the royalties are not shared with the State, are eligible 
for relief if they qualify as marginal under this rule.
    For information on how to obtain relief, please refer to the rule, 
which can be viewed on the MMS Web site at http://www.mrm.mms.gov/Laws_R_D/FRNotices/AC30.htm.
    All correspondence, records, or information received in response to 
this Notice are subject to disclosure under the Freedom of Information 
Act. All information provided will be made public unless the respondent 
identifies which portions are proprietary. Please highlight the 
proprietary portions, including any supporting documentation, or mark 
the page(s) that contain proprietary data. Proprietary information is 
protected by the Federal Oil and Gas Royalty Management Act of 1982 (30 
U.S.C. 1733), the Freedom of Information Act (5 U.S.C. 552(b)(4), the 
Indian Minerals Development Act of 1982 (25 U.S.C. 2103), and 
Department regulations (43 CFR 2).

    Dated: November 12, 2004.
Lucy Querques Denett,
Associate Director for Minerals Revenue Management.
[FR Doc. 04-26111 Filed 11-24-04; 8:45 am]
BILLING CODE 4310-MR-P