[Federal Register Volume 76, Number 124 (Tuesday, June 28, 2011)]
[Notices]
[Pages 37828-37829]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-16125]


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DEPARTMENT OF THE INTERIOR

Office of Natural Resources Revenue

[Docket No. ONRR-2011-0014]


Update to Indian Index Zone Price Points

AGENCY: Office of Natural Resources Revenue, Interior.

ACTION: Notice.

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SUMMARY: The Office of Natural Resources Revenue (ONRR, formerly 
Minerals Management Service's (MMS) Minerals Revenue Management) is 
announcing an update to Indian index zone price points that will remove 
certain natural gas index prices from the Indian Index Zone 
calculation. These changes will impact Oklahoma-Zone 1, Oklahoma-Zone 
2, and the Central Rocky Mountain Zone. The ONRR State and Indian 
Outreach Program held three Indian Tribal Consultation meetings seeking 
input and comments on several changes that could affect the valuation 
of mineral production on Indian lands, including this Federal Register 
Notice. The meetings took place in Albuquerque, NM on May 19; Denver, 
CO on May 26; and Oklahoma City, OK on June 9, 2011. The ONRR did not 
receive any negative comments from the various Indian Tribes on this 
Federal Register Notice.

DATES: Effective August 1, 2011.

FOR FURTHER INFORMATION CONTACT: For questions on technical issues, 
contact Jason Boroos, Economic and Market Analysis, ONRR, telephone 
(303) 231-3048; e-mail [email protected]. For other questions, 
contact Armand Southall, Project Management Office-Regulations, ONRR, 
telephone (303) 231-3221, or e-mail [email protected].

SUPPLEMENTARY INFORMATION: The ONRR (formerly MMS) published a final 
rule, regarding amendments to gas valuation regulations for Indian 
leases, in the Federal Register on August 10, 1999 (64 FR 43506). The 
ONRR also published additional information in the Federal Register on 
November 30, 1999 (64 FR 66771) and March 8, 2007 (72 FR 10522), which 
listed the Index Zones Eligible for the Index-Based Valuation Method 
and the acceptable publications and indices. The ONRR has recently 
completed an analysis to examine the designated indices contained in 
each Index Zone from the standpoint of market liquidity, transparency, 
and value and has concluded three index zones need to be revised 
pursuant to section 1206.172 (d)(6) of title 30 of the Code of Federal 
Register. This document lists those revisions.
    The ONRR analyzed the trading volume and number of deals from 
January 2005 through August 2010 for indices in all the Index Zones. As 
a result, ONRR determined that two indices, CenterPoint West in 
Oklahoma-Zones 1 and 2, and Questar in the Central Rocky Mountain Zone 
were very thinly traded and unrepresentative of the market. Beginning 
with production on the first day of the second month following the 
publication date, ONRR will no longer use these indices in the Index 
Zone calculation. Additionally, we have removed Northern NG TX, OK, KS, 
CenterPointWest (Platts), Enogex, and Northern Natural Mid 10-13, which 
are no longer published by either the Platts or Natural Gas 
Intelligence. Lessees must value gas production for Oklahoma-Zone 1, 
Oklahoma-Zone 2, and the Central Rocky Mountain Zone on the index-based 
valuation formula at Sec.  1206.172(d) using the updated list of ONRR 
approved publications and indices for the affected Index Zones to 
determine the Index Zone price; or lessees may obtain the index-based 
values from the ONRR Web site at: http://onrr.gov/SIC/allzones.htm.
    The approved publications and index pricing points for the Index 
Zones are shown in the following table:

                                 Approved Publications and Index Pricing Points
----------------------------------------------------------------------------------------------------------------
                                                      ONRR approved
                                                      publications
                                                ------------------------
                   Index zone                      Platts        NGI               Index-pricing points
                                                   Inside      bidweek
                                                    FERC       survey
----------------------------------------------------------------------------------------------------------------
Oklahoma-Zone 1................................          X   ..........  ANR Pipeline Co. for Oklahoma.
                                                         X   ..........  Natural Gas Pipeline Co. of America for
                                                                          Mid-continent.
                                                         X   ..........  Panhandle Eastern Pipe Line Co. for
                                                                          Texas, Oklahoma (mainline).
                                                         X   ..........  Southern Star Natural Gas Pipeline Inc.
                                                                          for Texas, Oklahoma, Kansas (formerly
                                                                          Williams Gas Pipelines Central Inc.
                                                                          Texas, Oklahoma, Kansas).
                                                 ..........          X   ANR SW.
                                                 ..........          X   NGPL Midcontinent.
                                                 ..........          X   Panhandle Eastern.
                                                 ..........          X   Southern Star.
Oklahoma-Zone 2................................          X   ..........  ANR Pipeline Co. for Oklahoma.
                                                         X   ..........  Natural Gas Pipeline Co. of America for
                                                                          Mid-continent.
                                                         X   ..........  Panhandle Eastern Pipe Line Co. for
                                                                          Texas, Oklahoma (mainline).
                                                         X   ..........  Southern Star Natural Gas Pipeline Inc.
                                                                          for Texas, Oklahoma, Kansas.
                                                 ..........          X   ANR SW.
                                                 ..........          X   NGPL Midcontinent.
                                                 ..........          X   Panhandle Eastern.
                                                 ..........          X   Southern Star.
Oklahoma-Zone 3................................          X   ..........  Natural Gas Pipeline Co. of America
                                                                          Texok.

[[Page 37829]]

 
                                                         X   ..........  Southern Star Natural Gas Pipeline Inc.
                                                                          for Texas, Oklahoma, Kansas.
                                                         X   ..........  CenterPoint Energy Gas Transmission
                                                                          East (formerly Reliant Energy Gas
                                                                          Transmission Co. East).
                                                 ..........          X   NGPL Texok.
                                                 ..........          X   CenterPoint East.
                                                 ..........          X   Southern Star.
Central Rocky Mountains........................          X   ..........  Kern River Gas Transmission for
                                                                          Wyoming.
                                                         X   ..........  Northwest Pipeline Corp. for Rocky
                                                                          Mountains.
                                                         X   ..........  Colorado Interstate Gas for Rocky
                                                                          Mountains.
                                                 ..........          X   CIG.
                                                 ..........          X   Kern River.
                                                 ..........          X   Northwest Domestic.
Northern Rocky Mountains.......................          X   ..........  Colorado Interstate Gas for Rocky
                                                                          Mountains.
                                                 ..........          X   CIG.
San Juan Basin.................................          X   ..........  El Paso Natural Gas Co. San Juan.
                                                         X   ..........  Transwestern Pipeline Co. San Juan
                                                                          (effective August 1st, 2010).
                                                 ..........          X   El Paso Non-bondad.
                                                 ..........          X   Transwestern San Juan.
----------------------------------------------------------------------------------------------------------------

    The ONRR State and Indian Outreach Program completed the three 
Indian Tribal Consultation meetings in Albuquerque, NM; Denver, CO; and 
Oklahoma City, OK, required under Executive Order 13175, Consultation 
and Coordination with Indian Tribal Governments, dated November 9, 
2000. The ONRR did not receive any negative comments from the Indian 
Tribes.

    Dated: June 23, 2011.
Gregory J. Gould,
Director for Office of Natural Resources Revenue.
[FR Doc. 2011-16125 Filed 6-27-11; 8:45 am]
BILLING CODE 4310-MR-P