[Federal Register Volume 73, Number 244 (Thursday, December 18, 2008)]
[Notices]
[Page 77058]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-30129]



[[Page 77058]]

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DEPARTMENT OF THE INTERIOR

Minerals Management Service


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 2009.

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SUMMARY: The Minerals Management Service (MMS) published final 
regulations on September 13, 2004 (69 FR 55076), codified at 30 CFR 
204.200 through 204.215, 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 allow one or both forms of relief in their state. As 
required in the rule, MMS provided states receiving a portion of the 
Federal royalties with a list of qualifying marginal Federal oil and 
gas properties located in their state so that each affected state could 
decide whether to participate in one or both relief options. This 
notice provides the decisions by the states concerned to allow one or 
both types of relief.

DATES: Effective January 1, 2009.

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 their decisions regarding marginal 
property relief.
    To qualify for the first option of relief (notification-based 
relief) for calendar year 2009, properties must have produced less than 
1,000 barrels-of-oil-equivalent (BOE) per year for the base period 
(July 1, 2007, through June 30, 2008). Annual reporting relief will 
begin on January 1, 2009, with the annual report and payment due 
February 28, 2010; or March 31, 2010, if you have an estimated payment 
on file. 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 to allow one or both forms of relief.

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                                             Notification-based relief      Request-based relief  (less than 15
                  State                    (less than 1,000 BOE per year)          BOE per well per day)
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Alabama.................................  No.............................  No.
California..............................  No.............................  No.
Colorado................................  No.............................  No.
Kansas..................................  No.............................  No.
Louisiana...............................  Yes............................  Yes.
Michigan................................  Yes............................  No.
Mississippi.............................  No.............................  No.
Montana.................................  No.............................  No.
Nebraska................................  No.............................  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.
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    Federal oil and gas properties located in all other states, where a 
portion of the royalties is not shared with the state, are eligible for 
relief if they qualify as marginal under this rule. 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.
    Unless the information received is proprietary data, all 
correspondence, records, or information received in response to this 
notice are subject to disclosure under the Freedom of Information Act 
(FOIA). If applicable, please highlight the proprietary portions, 
including any supporting documentation, or mark the page(s) that 
contain proprietary data. Proprietary information is protected by the 
Trade Secrets Act (18 U.S.C. 1905), FOIA, Exemption 4, and Department 
regulations (43 CFR, Part 2).

    Dated: December 1, 2008.
Gregory J. Gould,
Associate Director for Minerals Revenue Management.
[FR Doc. E8-30129 Filed 12-17-08; 8:45 am]
BILLING CODE 4310-MR-P