[Federal Register Volume 72, Number 206 (Thursday, October 25, 2007)]
[Notices]
[Page 60691]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-20970]


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DEPARTMENT OF THE INTERIOR

Bureau of Land Management

[WO-310-1310-PP-24 1A]


Oil and Gas Leasing: Onshore Oil and Gas Operations--Fees, 
Rentals, and Royalty

AGENCY: Bureau of Land Management, Interior.

ACTION: Notification to terminate the heavy oil royalty reductions 
program.

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SUMMARY: The Bureau of Land Management (BLM) is providing the six-month 
notification to terminate all royalty reductions for the production of 
heavy oil and to terminate the availability of further heavy oil relief 
under regulations at 43 CFR 3103.4-3.

DATES: The termination of the heavy oil royalty reductions program is 
effective on May 1, 2008.

FOR FURTHER INFORMATION CONTACT: Rudy Baier, Division of Fluid 
Minerals, BLM, (202) 452-5024. Persons who use a telecommunications 
device for the deaf (TDD) may call the Federal Information Relay 
Service at 1-800-877-8339, 24 hours a day, 7 days a week, except 
holidays, for assistance in reaching Mr. Baier.

SUPPLEMENTARY INFORMATION: Under 43 CFR 3103.4-3(b)(6)(i), the BLM may 
suspend or terminate all heavy oil royalty reductions and terminate the 
availability of further heavy royalty relief ``upon 6 month's notice in 
the Federal Register when BLM determines that the average oil price has 
remained above $24 per barrel over a period of 6 consecutive months 
[based on the West Texas Intermediate (WTI) Crude average posted prices 
and adjusted for inflation using the implicit price deflator for gross 
national product with 1991 as the base year).'' The adjusted threshold 
for the third quarter of calendar year 2004 was $30.83 and for the 
fourth quarter $31.00.
    By Federal Register notice (70 FR 21810) dated April 27, 2005, this 
royalty reduction program was suspended effective November 1, 2005. In 
that notice, the BLM requested comments on the conditions under which 
the suspension should be removed. The BLM received three comments.
    The WTI crude average posted oil prices have continued to exceed 
the adjusted threshold at all times since the April 27, 2005 notice. 
Therefore, considering the price of crude oil since the April 27, 2005 
notice and current price projections for the near future, the BLM 
decided that this royalty reduction program should be terminated. As 
authorized by 43 CFR 3103.4-3(b)(6)(i), this serves as notice that the 
BLM will terminate the heavy oil royalty reductions program effective 
on May 1, 2008.
    Should conditions change so as to warrant relief, the BLM has 
authority to grant royalty rate reductions on a case-by-case basis (see 
43 CFR 3103.4-1).

James Abbott,
Assistant Director, Minerals, Realty, and Resource Protection.
 [FR Doc. E7-20970 Filed 10-24-07; 8:45 am]
BILLING CODE 4310-84-P