[Federal Register Volume 77, Number 46 (Thursday, March 8, 2012)]
[Notices]
[Pages 14041-14042]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-5669]


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DEPARTMENT OF THE INTERIOR

Office of Natural Resources Revenue

[Docket No. ONRR-2011-0012]


Major Portion Prices and Due Date for Additional Royalty Payments 
on Indian Gas Production in Designated Areas Not Associated With an 
Index Zone

AGENCY: Office of Natural Resources Revenue, Interior.

ACTION: Notice.

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SUMMARY: Final regulations for valuing gas produced from Indian leases, 
published August 10, 1999, require the Office of Natural Resources 
Revenue (ONRR) to determine major portion prices and notify industry by 
publishing the prices in the Federal Register. The regulations also 
require ONRR to publish a due date for industry to pay additional 
royalties based on the major portion prices. This notice provides major 
portion prices for the 12 months of calendar year 2010.

DATES: The due date to pay additional royalties based on the major 
portion prices is May 7, 2012.

FOR FURTHER INFORMATION CONTACT: John Barder, Manager, Team B, Western 
Audit and Compliance, ONRR; telephone (303) 231-3702; fax number (303) 
231-3473; email [email protected]; or Mike Curry, Team B, Western 
Audit and Compliance, ONRR; telephone (303) 231-3741; fax (303) 231-
3473; email [email protected]. Mailing address: Office of Natural 
Resources Revenue, Western Audit and Compliance Management, Team B, 
P.O. Box 25165, MS 62520B, Denver, Colorado 80225-0165.

SUPPLEMENTARY INFORMATION: On August 10, 1999, ONRR published a final 
rule titled ``Amendments to Gas Valuation Regulations for Indian 
Leases'' effective January 1, 2000 (64 FR 43506). The Indian gas 
valuation regulations apply to all gas production from Indian (tribal 
and allotted) oil and gas leases, except leases on the Osage Indian 
Reservation.
    The regulations require ONRR to publish major portion prices for 
each designated area not associated with an index zone for each 
production month beginning January 2000, and a due date for additional 
royalty payments. See 30 CFR 1206.174(a)(4)(ii) (2011). If you owe 
additional royalties based on a published major portion price, you must 
submit to ONRR by the due date an amended Form MMS-2014, Report of 
Sales and Royalty Remittance. If you do not pay the additional 
royalties by the due date, ONRR will bill you late payment interest 
under 30 CFR 1218.54. The interest will accrue from the due date until 
ONRR receives your payment and an amended Form MMS-2014.
    The table below lists the major portion prices for all designated 
areas not associated with an index zone. The due date is 60 days after 
the publication date of this notice.

[[Page 14042]]



            Gas Major Portion Prices ($/MMBtu) For Designated Areas Not Associated With an Index Zone
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                    ONRR-Designated areas                       Jan 2010     Feb 2010     Mar 2010     Apr 2010
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Blackfeet Reservation.......................................         5.00         4.62         3.68         3.39
Fort Belknap Reservation....................................         5.86         5.72         5.35         4.98
Fort Berthold Reservation...................................         5.34         5.07         4.39         3.96
Fort Peck Reservation.......................................         8.21         7.64         6.76         6.22
Navajo Allotted Leases in the Navajo Reservation............         5.95         5.48         4.65         3.82
Rocky Boys Reservation......................................         3.90         3.67         2.81         2.50
Ute Tribal Leases in the Uintah and Ouray Reservation.......         5.30         4.95         4.16         3.37
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                    ONRR-Designated areas                       May 2010     Jun 2010     Jul 2010     Aug 2010
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Blackfeet Reservation.......................................         3.39         3.69         3.21         2.97
Fort Belknap Reservation....................................         4.99         5.09         5.20         5.10
Fort Berthold Reservation...................................         3.81         3.64         3.75         4.51
Fort Peck Reservation.......................................         6.22         5.56         6.30         6.72
Navajo Allotted Leases in the Navajo Reservation............         3.81         3.83         4.21         4.01
Rocky Boys Reservation......................................         2.47         2.67         2.27         2.13
Ute Tribal Leases in the Uintah and Ouray Reservation.......         3.44         3.47         3.68  ...........
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                    ONRR-Designated areas                       Sep 2010     Oct 2010     Nov 2010     Dec 2010
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Blackfeet Reservation.......................................         3.16         2.94         3.33         3.57
Fort Belknap Reservation....................................         5.10         4.73         4.75         5.32
Fort Berthold Reservation...................................         3.86         4.00         3.90         4.49
Fort Peck Reservation.......................................         3.90         4.76         5.56         6.16
Navajo Allotted Leases in the Navajo Reservation............         3.34         3.47         3.39         4.13
Rocky Boys Reservation......................................         2.24         2.16         2.46         2.60
Ute Tribal Leases in the Uintah and Ouray Reservation.......  ...........  ...........  ...........  ...........
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Note: By tribal resolution, the Ute Indian Tribe requested ONRR to change the Ute tribal leases in the Uintah
  and Ouray Reservation from valuation under the major portion pricing provisions to index zone pricing. We
  approved the Ute Indian Tribe's request; therefore, you must value production from Ute tribal leases in the
  Uintah and Ouray Reservation under index zone pricing, effective August 1, 2010. See Federal Register notice
  (75 FR 30430) published June 1, 2010.


    For information on how to report additional royalties associated 
with major portion prices, please refer to our Dear Payor letter dated 
December 1, 1999, on our Web site at http://www.onrr.gov/FM/PDFDocs/991201.pdf.

    Dated: March 2, 2012.
Gregory J. Gould,
Director, Office of Natural Resources Revenue.
[FR Doc. 2012-5669 Filed 3-7-12; 8:45 am]
BILLING CODE 4310-T2-P