[Federal Register Volume 72, Number 45 (Thursday, March 8, 2007)]
[Notices]
[Pages 10552-10553]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-4150]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service


Notice Terminating the Exclusion of Indian Allotted Leases in the 
Uintah and Ouray Reservation From Valuation Under 30 CFR 206.172

AGENCY: Minerals Management Service, Interior.

ACTION: Notice.

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SUMMARY: The Minerals Management Service (MMS) with Bureau of Indian 
Affairs (BIA) concurrence is terminating the exclusion from valuation 
under the rules at 30 CFR 206.172 for gas produced from the Ute 
allotted leases in the Uintah and Ouray Reservation (Reservation), 
Utah. The final rule was published in the Federal Register on August 
10, 1999 (64 FR 43506).

DATES: Effective Date: May 1, 2007.

FOR FURTHER INFORMATION CONTACT: John Barder, Manager, San Juan Basin 
Region, Indian Oil and Gas Compliance and Asset Management, Minerals 
Revenue Management, Minerals Management Service, P.O. Box 25165, MS 
396B2, Denver, CO 80225-0165, telephone number (303) 231-3702, fax 
number (303) 231-3755, e-mail [email protected].

SUPPLEMENTARY INFORMATION: The MMS published in the Federal Register on 
August 10, 1999 (64 FR 43506), a final rule titled ``Amendments to Gas 
Valuation Regulations for Indian Leases'' with an effective date of 
January 1, 2000. Indian leases in the Reservation were excluded from 
index-based valuation (Sec.  206.172). This exclusion was based on the 
results of a cost benefit analysis MMS performed in 1999. In the 1999 
cost benefit analysis, MMS estimated individual Indian mineral owners 
would receive more revenue under the non-index-based valuation 
methodology (Sec.  206.174) than under the index-based valuation 
methodology (Sec.  206.172).
    Effective January 2000, MMS has valued gas production from the 
Reservation under the non-index-based valuation methodology at Sec.  
206.174. However, MMS recently performed a cost benefit analysis for 
calendar years 2004 through 2005 and estimated that revenues using the 
index-based valuation formula at Sec.  206.172 exceed the estimated 
revenues using the non-index-based valuation method at Sec.  206.174. 
Therefore, as required under Sec.  206.172(g), MMS received written 
concurrence from BIA to terminate the exclusion from index-based 
valuation of gas production from Indian allotted leases in the 
Reservation.
    As a result, gas production from Ute allotted leases in the 
Reservation must be valued under the index-based valuation method 
(Sec.  206.172), beginning with production on the first day of the 
second month following the date MMS publishes notice of its decision in 
the Federal Register. Lessees must value gas production from Ute 
allotted leases in the Reservation on the index-based valuation formula 
at Sec.  206.172(d) using MMS-approved publications and indexes for the 
Central Rocky Mountain Index Zone to determine the index zone price; or 
lessees may obtain the index-based values from the MRM Internet Web 
site at: http://www.mrm.mms.gov.
    Approved publications and index pricing points for the Central 
Rocky Mountain Index Zone are shown in the following table:

            Approved Publications and Index Pricing Points for the Central Rocky Mountain Index Zone
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                                                MMS-approved publications
                                              ----------------------------
                  Index zone                    Platts gas       NGI's              Index-pricing points
                                                daily price     bidweek
                                                   guide        survey
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Central Rocky Mountains......................            X   ............  Kern River Gas Trans. Co. for
                                                                            Wyoming.
                                                         X   ............  Northwest Pipeline Corp. for Rocky
                                                                            Mountains.
                                                         X   ............  Questar Pipeline Co. for Rocky
                                                                            Mountains.
                                                         X   ............  Colorado Interstate Gas Co. for Rocky
                                                                            Mountains.
                                               ............            X   Rocky Mountains
                                                                            CIG.
                                                                            Questar.
                                                                            Kern River.
                                                                            Northwest Domestic.
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[[Page 10553]]

    Dated: January 16, 2007.
Lucy Querques Denett,
Associate Director for Minerals, Revenue Management.
 [FR Doc. E7-4150 Filed 3-7-07; 8:45 am]
BILLING CODE 4310-MR-P