[Federal Register Volume 70, Number 67 (Friday, April 8, 2005)]
[Notices]
[Pages 18051-18052]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-7019]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service

RIN 1010-AB57


Major Portion Prices and Due Date for Additional Royalty Payments 
on Indian Gas Production in Designated Areas Not Associated With an 
Index Zone

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Notice of major portion prices for calendar year 2003.

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SUMMARY: Final regulations for valuing gas produced from Indian leases, 
published on August 10, 1999, require MMS to determine major portion 
values and notify industry by publishing the values in the Federal 
Register. The regulations also require MMS to publish a due date for 
industry to pay additional royalty based on the major portion value. 
This notice provides the major portion values for the 12 months of 
2003. The due date to pay is May 31, 2005.

ADDRESSES: See FOR FURTHER INFORMATION CONTACT section below.

FOR FURTHER INFORMATION CONTACT: John Barder, Indian Oil and Gas 
Compliance and Asset Management, MMS; telephone (303) 231-3702; FAX 
(303) 231-3755; e-mail to [email protected]; or Shawna Hopkins, 
Indian Oil and Gas Compliance and Asset Management, MMS; telephone 
(303) 231-3817; FAX (303) 231-3755; e-mail to [email protected]. 
Mailing address: Minerals Management Service, Minerals Revenue 
Management, ONCAM, Indian Oil and Gas Compliance and Asset Management, 
P.O. Box 25165, MS 396B2, Denver, Colorado 80225-0165.

SUPPLEMENTARY INFORMATION: On August 10, 1999, MMS published a final 
rule titled ``Amendments to Gas Valuation Regulations for Indian 
Leases,'' (64 FR 43506) with an effective date of January 1, 2000. The 
gas regulations apply to all gas production from Indian (tribal or 
allotted) oil and gas leases, except leases on the Osage Indian 
Reservation.
    The rule requires that MMS publish major portion prices for each 
designated area not associated with an index zone for each production 
month beginning January 2000, along with a due date for additional 
royalty payments. See 30 CFR 206.174(a)(4)(ii) (2004). If additional 
royalties are due based on a published major portion price, the lessee 
must submit an amended Form MMS-2014, Report of Sales and Royalty 
Remittance, to MMS by the due date. If additional royalties are not 
paid by the due date, late payment interest under 30 CFR 218.54 (2004) 
will accrue from the due date until payment is made and an amended Form 
MMS-2014 is received. The table below lists the major portion prices 
for all designated areas not associated with an index zone. The due 
date is May 31, 2005.

Gas Major Portion Prices and Due Dates for Designated Areas Not 
Associated With an Index Zone

------------------------------------------------------------------------
                                          January    February    March
          MMS-Designated areas              2003       2003       2003
                                          (MMBtu)    (MMBtu)    (MMBtu)
------------------------------------------------------------------------
Blackfeet Reservation..................       5.57       6.48       9.53
Fort Belknap...........................       4.97       5.10       5.84
Fort Berthold..........................       4.32       5.88       6.31
Fort Peck Reservation..................       3.55       5.25       7.96
Navajo Allotted Leases in the Navajo          4.37       4.50       5.82
 Reservation...........................
Rocky Boys Reservation.................       3.75       4.65       6.76
Ute Allotted Leases in the Uintah and         2.90       3.21       5.05
 Ouray Reservation.....................
Ute Tribal Leases in the Uintah and           3.20       3.68       6.47
 Ouray Reservation.....................
------------------------------------------------------------------------


------------------------------------------------------------------------
                                         April
         MMS-Designated areas             2003     May 2003    June 2003
                                        (MMBtu)     (MMBtu)     (MMBtu)
------------------------------------------------------------------------
Blackfeet Reservation................       6.63        6.64        7.05
Fort Belknap.........................       5.04        5.08        5.27
Fort Berthold........................       4.28        4.76        4.83
Fort Peck Reservation................       4.43        4.29        4.97
Navajo Allotted Leases in the Navajo        3.65        4.02        4.88
 Reservation.........................
Rocky Boys Reservation...............       4.04        4.16        4.57
Ute Allotted Leases in the Uintah and       3.19        4.04        4.42
 Ouray Reservation...................
Ute Tribal Leases in the Uintah and         3.51        4.39        4.83
 Ouray Reservation...................
------------------------------------------------------------------------


------------------------------------------------------------------------
                                            July     August    September
          MMS-Designated areas              2003      2003       2003
                                           (MMBtu)   (MMBtu)    (MMBtu)
------------------------------------------------------------------------
Blackfeet Reservation...................      7.09      5.73        6.14
Fort Belknap............................      5.18      5.03        5.13
Fort Berthold...........................      4.22      4.25        3.93
Fort Peck Reservation...................      4.69      4.71        4.47
Navajo Allotted Leases in the Navajo          4.66      3.87        4.31
 Reservation............................
Rocky Boys Reservation..................      4.04      3.62        3.76
Ute Allotted Leases in the Uintah and         4.60      4.11        4.24
 Ouray Reservation......................
Ute Tribal Leases in the Uintah and           4.24      3.94        4.05
 Ouray Reservation......................
------------------------------------------------------------------------


[[Page 18052]]


------------------------------------------------------------------------
                                        October    November    December
         MMS-Designated areas             2003       2003        2003
                                        (MMBtu)     (MMBtu)     (MMBtu)
------------------------------------------------------------------------
Blackfeet Reservation................       5.83        5.64        5.88
Fort Belknap.........................       5.06        5.03        5.32
Fort Berthold........................       4.10        4.05        5.03
Fort Peck Reservation................       4.10        4.15        4.90
Navajo Allotted Leases in the Navajo        3.88        3.79        4.23
 Reservation.........................
Rocky Boys Reservation...............       3.44        3.38        3.94
Ute Allotted Leases in the Uintah and       4.11        3.77        4.10
 Ouray Reservation...................
Ute Tribal Leases in the Uintah and         3.84        3.63        4.24
 Ouray Reservation...................
------------------------------------------------------------------------

    For information on how to report additional royalties due to major 
portion prices, please refer to our Dear Payor letter dated December 1, 
1999, on the MMS Web site address at http://www.mrm.mms.gov/ReportingServices/PDFDocs/991201.pdf.

    Dated: March 3, 2005.
Lucy Querques Denett,
Associate Director for Minerals Revenue Management.
[FR Doc. 05-7019 Filed 4-7-05; 8:45 am]
BILLING CODE 4310-MR-P