[Federal Register Volume 88, Number 224 (Wednesday, November 22, 2023)]
[Notices]
[Pages 81432-81433]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-25795]



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DEPARTMENT OF THE INTERIOR

Office of Natural Resources Revenue

[Docket No. ONRR-2011-0002; DS63644000 DRT000000.CH7000 245D1113RT]


States' Decisions on Participating in Accounting and Auditing 
Relief for Federal Oil and Gas Marginal Properties

AGENCY: Office of Natural Resources Revenue, Interior.

ACTION: Notice.

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SUMMARY: In accordance with Office of Natural Resources Revenue (ONRR) 
regulations, ONRR provides two types of accounting and auditing relief 
for Federal oil and gas production from marginal properties: the 
cumulative royalty reports and payments relief option, which allows a 
lessee or designee to submit one royalty report and payment for the 
calendar year's production; and other requested relief, which allows a 
lessee or designee to request any type of accounting and auditing 
relief that is appropriate for production from the marginal property 
and meets certain requirements. By October 1 of each calendar year, 
ONRR provides a list of qualifying marginal Federal oil and gas 
properties to the States receiving a portion of Federal royalties from 
those properties. Each State then decides whether to participate in 
neither, one, or both relief options. This Notice provides the public 
each State's decision on whether to participate in marginal property 
relief.

DATES: Applicable January 1, 2024.

FOR FURTHER INFORMATION CONTACT: Mr. Robert Sudar, Market & Spatial 
Analytics, Research, Enforcement, Guidance, and Appeals, ONRR, at (303) 
231-3511; or by email to [email protected].

SUPPLEMENTARY INFORMATION: Pursuant to the Federal Oil and Gas Royalty 
Simplification and Fairness Act of 1996 (30 U.S.C. 1726) and 30 CFR 
part 1204, subpart C, ONRR and States can relieve the lessee of a 
marginal Federal oil and gas property from certain reporting, 
accounting, and auditing requirements. ONRR's rules under 30 CFR 
1204.202 and 1204.203 authorize two relief options: (1) cumulative 
royalty reports and payments relief option, which allows a lessee or 
designee to submit one royalty report and payment during a calendar 
year; and (2) other requested relief, which allows a lessee or designee 
to request any type of appropriate marginal property accounting and 
auditing relief that meets the requirements under Sec.  1204.5 and is 
not prohibited under Sec.  1204.204.
    To qualify for the first relief option, cumulative royalty reports 
and payments relief option, properties must produce less than 1,000 
barrels-of-oil-equivalent (BOE) per year for the base period (July 1, 
2022, through June 30, 2023). Annual reporting relief will begin 
January 1, 2024, with the annual report and payment due February 28, 
2025. If a lessee has an estimated payment on file, the payment due 
date is March 31, 2025. To qualify for the second relief option, other 
requested relief, the combined equivalent production of the marginal 
properties during the base period must equal an average daily well 
production of less than 15 BOE per well per day, as calculated under 30 
CFR 1204.4(c).
    Each State makes an annual determination as to whether it will 
participate in neither, one, or both relief options. This Notice 
fulfills the requirement in ONRR's rules to publish a notice of the 
State's ``intent to allow or not allow certain relief options . . . in 
the Federal Register no later than 30 days before the beginning of the 
applicable calendar year.'' See 30 CFR 1204.208(f).
    The following table shows the States with qualifying marginal 
properties and those States' decisions on whether to participate in 
neither, one, or both relief options for calendar year 2024. An ``N/A'' 
means that no properties within the State met that condition for that 
type of relief:

------------------------------------------------------------------------
                                                        Other accounting
                                  Cumulative royalty      and auditing
             State                report and payment      relief (less
                                   relief (less than     than 15 BOE per
                                  1,000 BOE per year)     well per day)
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Alabama.......................  No....................  No.
Arkansas......................  No....................  No.
California....................  No....................  No.
Colorado......................  No....................  No.
Kansas........................  No....................  No.
Louisiana.....................  Yes...................  Yes.
Michigan......................  Yes...................  Yes.
Montana.......................  No....................  No.
Nebraska......................  No....................  No.
Nevada........................  Yes...................  Yes.
New Mexico....................  No....................  Yes.
North Dakota..................  Yes...................  Yes.
Oklahoma......................  Yes...................  Yes.
South Dakota..................  Yes...................  Yes.
Utah..........................  No....................  No.
Wyoming.......................  Yes...................  No.
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    Pursuant to 30 U.S.C. 1726(c), a Federal oil and gas property 
located in a State where ONRR does not share a portion of Federal 
royalties with that State (that is, for 2024, a State not listed in the 
table above) is eligible for relief if it qualifies as a marginal 
property. For more information on how to obtain relief, please refer to 
30 CFR 1204.205.
    Unless the information that ONRR receives is proprietary data, all 
correspondence, records, or information received in response to this 
notice may be subject to disclosure under the Freedom of Information 
Act (FOIA, 5 U.S.C. 552 et seq.). If applicable, please highlight the 
proprietary portions, including any supporting documentation, or mark 
the page(s) containing proprietary data. ONRR protects proprietary 
information under the Trade Secrets Act (18 U.S.C. 1905), FOIA 
Exemption 4 (5 U.S.C. 552(b)(4)), and the Department of the Interior's 
FOIA regulations (43 CFR part 2).
    Authority: Federal Oil and Gas Royalty Management Act of 1982, 30 
U.S.C. 1701 et seq., as amended by Federal Oil and Gas Royalty 
Simplification and Fairness Act of 1996 (RSFA, Pub. L. 104-185--Aug. 
13, 1996,

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as corrected by Pub. L. 104-200--Sept. 22, 1996).

Howard M. Cantor,
Director, Office of Natural Resources Revenue.
[FR Doc. 2023-25795 Filed 11-21-23; 8:45 am]
BILLING CODE 4335-30-P