[Federal Register Volume 71, Number 38 (Monday, February 27, 2006)]
[Notices]
[Pages 9833-9834]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-2690]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service


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 2004.

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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 
2004. The due date to pay is April 30, 2006, after which late interest 
will accrue.

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 Larry Gratz, Indian 
Oil and Gas Compliance and Asset Management, MMS; telephone (303) 231-
3427; FAX (303) 231-3755; e-mail to [email protected]. Mailing 
address: Minerals Management Service, Minerals Revenue Management, 
Compliance and Asset Management, 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) (2005). 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 
(2005), will accrue using the Internal Revenue Service underpayment 
rate (26 CFR 6621(a)(2)) 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 April 30, 2006.

                 Gas Major Portion Prices for Designated Areas Not Associated With an Index Zone
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                                                                Jan 2004     Feb 2004     Mar 2004     Apr 2004
                    MMS-Designated Areas                        (MMBtu)      (MMBtu)      (MMBtu)      (MMBtu)
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Blackfeet Reservation.......................................         7.37         7.07         6.35         6.61
Fort Belknap................................................         5.42         5.32         5.25         5.25
Fort Berthold...............................................         5.32         4.70         4.56         5.12
Fort Peck Reservation.......................................         5.83         5.43         4.75         4.87
Navajo Allotted Leases in the Navajo Reservation............         5.04         4.80         4.27         4.38
Rocky Boys Reservation......................................         4.19         3.93         4.08         4.24
Ute Allotted Leases in the Uintah and Ouray Reservation.....         4.39         4.65         4.19         4.15
Ute Tribal Leases in the Uintah and Ouray Reservation.......         5.06         4.74         4.28         4.11
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                                                                May 2004     Jun 2004     Jul 2004     Aug 2004
                                                                (MMBtu)      (MMBtu)      (MMBtu)      (MMBtu)
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Blackfeet Reservation.......................................         6.78         7.58         7.32         7.27
Fort Belknap................................................         5.35         5.55         5.56         5.42
Fort Berthold...............................................         5.83         5.80         5.22         6.35
Fort Peck Reservation.......................................         5.02         5.67         5.59         5.91
Navajo Allotted Leases in the Navajo Reservation............         4.92         5.41         5.22         5.18
Rocky Boys Reservation......................................         4.55         4.55         4.41         4.18
Ute Allotted Leases in the Uintah and Ouray Reservation.....         4.82         5.13         5.09         4.87
Ute Tribal Leases in the Uintah and Ouray Reservation.......         4.91         5.24         4.97         4.89
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                                                                Sep 2004     Oct 2004     Nov 2004     Dec 2004
                                                                (MMBtu)      (MMBtu)      (MMBtu)      (MMBtu)
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Blackfeet Reservation.......................................         6.48         6.22         9.20         8.95
Fort Belknap................................................         5.37         5.56         5.67         5.74
Fort Berthold...............................................         4.14         4.94         8.00         5.67
Fort Peck Reservation.......................................         5.35         6.91         7.61         7.09
Navajo Allotted Leases in the Navajo Reservation............         4.47         4.54         6.47         5.73
Rocky Boys Reservation......................................         3.66         4.54         4.62         4.86
Ute Allotted Leases in the Uintah and Ouray Reservation.....         4.25         4.40         6.32         5.81

[[Page 9834]]

 
Ute Tribal Leases in the Uintah and Ouray Reservation.......         4.37         4.46         6.57         6.03
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    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: January 17, 2006.
Shirley M. Conway,
Acting Associate Director for Minerals Revenue Management.
[FR Doc. E6-2690 Filed 2-24-06; 8:45 am]
BILLING CODE 4310-MR-P