[Federal Register Volume 70, Number 232 (Monday, December 5, 2005)]
[Rules and Regulations]
[Pages 72381-72382]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-23621]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service

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 2006.

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SUMMARY: The Minerals Management Service (MMS) published final 
regulations on September 13, 2004 (69 FR 55076), to provide accounting 
and auditing relief for marginal Federal oil and gas properties. The 
rule requires MMS to publish in the Federal Register the decisions of 
the states concerned to allow or not to allow one or both forms of 
relief in their state. As required in the rule, MMS provided each state 
receiving a portion of the Federal royalties with a list of qualifying 
marginal Federal oil and gas properties located in the state so that 
each affected state could decide whether to participate in one or both 
relief options. This Notice provides the decisions by the respective 
states concerned to allow one or both types of relief.

DATES: Effective Date: January 1, 2006.

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 mail 
to P.O. Box 25165, MS 392B2, Denver Federal Center, Denver, Colorado 
80225-0165.

SUPPLEMENTARY INFORMATION: The rule implemented certain provisions of 
Section 7 of the Federal Oil and Gas Royalty Simplification and 
Fairness Act of 1996 and 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 and the decisions of each state regarding 
marginal property relief.
    To qualify for the first option of relief (notification-based 
relief) for calendar year 2006, properties must have produced less than 
1,000 barrels-of-oil-equivalent (BOE) per year for the base period 
(July 1, 2004-June 30, 2005). Annual reporting relief will begin on 
January 1, 2006, with the annual report and payment due February 28, 
2007 (unless an estimated payment is on file, which will move the due 
date to March 31, 2007). 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 the states that have marginal properties, 
where a portion of the royalties are shared between the state and MMS, 
and the states' decisions whether to allow one or both forms of relief.

------------------------------------------------------------------------
                                  Notification-based     Request-based
                                   relief (less than   relief (less than
              State                  1,000 BOE per      15 BOE per well
                                         year)             per day)
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Alabama.........................  No................  No.
Arkansas........................  Yes...............  Yes.
California......................  No................  No.
Colorado........................  Yes...............  Yes.
Kansas..........................  Yes...............  No.

[[Page 72382]]

 
Louisiana.......................  Yes...............  Yes.
Michigan........................  Yes...............  No.
Montana.........................  Yes...............  No.
Nevada..........................  No................  No.
New Mexico......................  No................  No.
North Dakota....................  No................  No.
Oklahoma........................  No................  No.
South Dakota....................  No................  No.
Utah............................  No................  No.
Wyoming.........................  Yes...............  No.
------------------------------------------------------------------------

    Federal oil and gas properties located in all other states are 
eligible for relief if they qualify as marginal properties under the 
rule and if no portion of the royalties derived from the property is 
shared with the state.
    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 Mineral Development Act of 1982 (25 U.S.C. 2103), and Department 
regulations (43 CFR part 2).

    Dated: November 16, 2005.
Lucy Querques Denett,
Associate Director for Minerals Revenue Management.
[FR Doc. 05-23621 Filed 12-2-05; 8:45 am]
BILLING CODE 4310-MR-P