[Federal Register Volume 75, Number 104 (Tuesday, June 1, 2010)]
[Notices]
[Page 30430]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-13018]



[[Page 30430]]

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DEPARTMENT OF THE INTERIOR

Minerals Management Service

[Docket No. MMS-2008-MRM-0036]


Notice Terminating the Exclusion of Indian Tribal 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: For gas produced from Indian tribal leases on the Uintah and 
Ouray Reservation (Reservation) in Utah, the Minerals Management 
Service (MMS) is terminating the exclusion from valuation under the 
regulations at 30 CFR 206.172, based on a request by the Ute Indian 
Tribe of the Uintah and Ouray Reservation.

DATES: Effective Date: First day of the second month following 
publication.

FOR FURTHER INFORMATION CONTACT: John Barder, Manager, Team B, Western 
Audit and Compliance, Minerals Revenue Management, Minerals Management 
Service, P.O. Box 25165, MS 62220B, Denver, Colorado 80225-0165, 
telephone number (303) 231-3702, fax number (303) 231-3755, e-mail 
[email protected].

SUPPLEMENTARY INFORMATION: On August 10, 1999, MMS published a final 
rule titled ``Amendments to Gas Valuation Regulations for Indian 
Leases'' at 64 FR 43506, with an effective date of January 1, 2000. Per 
30 CFR 206.172, MMS excluded Indian leases on the Reservation from 
index-based valuation because of the results of a cost benefit analysis 
MMS performed in 1999. Effective January 2000, MMS has valued gas 
production from the Reservation under the non-index valuation 
methodology at 30 CFR 206.174. In the 1999 analysis, MMS estimated that 
the Ute Indian Tribe would receive more revenue under the non-index-
based valuation methodology than under the index-based valuation 
methodology. Thus, MMS excluded the Ute Indian tribal leases from 
index-based valuation, effective January 1, 2000. Since the 
implementation of the final rule (64 FR 43506), MMS has analyzed 
whether the Ute Indian Tribe would continue to receive more revenue 
under the non-index-based valuation method than the index-based 
valuation method.
    The MMS recently performed a cost benefit analysis and estimated 
that revenues using the index-based formula at 30 CFR 206.172 exceed 
the estimated revenues using the non-index valuation method at 30 CFR 
206.174.
    As required under 30 CFR 206.172(f)(2), MMS received a tribal 
resolution from the Business Committee of the Ute Indian Tribe to 
terminate the exclusion from index-based valuation of gas production 
from Indian tribal leases on the Reservation. As a result of the tribal 
resolution and publishing of this notice, gas production from Ute 
Indian tribal leases on the Reservation must be valued under the index-
based valuation method at 30 CFR 206.172 beginning with production on 
the first day of the second month following the date MMS publishes this 
notice in the Federal Register.
    Lessees must value gas production from Ute Indian tribal leases on 
the Reservation with the index-based valuation formula in 30 CFR 
206.172(d) using the 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 MMS Web site at 
http://www.mrm.mms.gov/TribServ/allzones.htm.
    The approved publications and index pricing points for the Central 
Rocky Mountain Index Zone are listed in the following table:

----------------------------------------------------------------------------------------------------------------
                                                MMS-approved publications
                                           ----------------------------------
                Index zone                   Platt's inside                          Index-pricing points
                                            FERC gas market   NGI's bidweek
                                                 report           survey
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Central...................................               X   ...............  Kern River Gas Transmission Co.
                                                                               for Wyoming.
Rocky.....................................               X   ...............  Northwest Pipeline Corp. for Rocky
                                                                               Mountains.
Mountain..................................               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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    Dated: April 5, 2010.
Gregory J. Gould,
Associate Director for Minerals Revenue Management.
[FR Doc. 2010-13018 Filed 5-28-10; 8:45 am]
BILLING CODE 4310-MR-P