[Federal Register Volume 63, Number 207 (Tuesday, October 27, 1998)]
[Rules and Regulations]
[Pages 57249-57250]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-28677]
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DEPARTMENT OF THE INTERIOR
Minerals Management Service
30 CFR Part 203
RIN 1010-AC13
Royalty Relief for Producing Leases and Certain Existing Leases
in Deep Water
AGENCY: Minerals Management Service (MMS), Interior.
ACTION: Correcting amendments.
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SUMMARY: This document contains corrections to the final regulations
which were published in the Federal Register of Friday, January 16,
1998 (63 FR 2605-2626), and also in 30 CFR Part 203, Revised as of July
1, 1998. The corrections noted here are in the portion of these
regulations related to the Royalty Relief for End-of-Life Leases.
EFFECTIVE DATE: November 1, 1998.
FOR FURTHER INFORMATION CONTACT: Marshall Rose, Chief, Economics
Division, (703) 787-1538.
SUPPLEMENTARY INFORMATION:
Background
The final regulations that are the subject of these corrections
affect persons requesting reduction of oil and gas royalty under
Sec. 1337(a)(3)(A) of the United States Code.
Need for Correction
As published, the final regulations omit logical implications of
the simplified relief approval process. The corrections make explicit
when you should apply for royalty relief and the action we may take if
we determine that you have not applied properly. The corrections also
clarify which costs we consider allowable in the end-of-life
circumstance.
List of Subjects in 30 CFR Part 203
Continental shelf, Government contracts, Indians-lands, Minerals
royalties, Oil and gas exploration, Public lands-mineral resources,
Sulphur.
Accordingly, 30 CFR Part 203 is corrected by making the following
correcting technical amendments:
PART 203--RELIEF OR REDUCTION IN ROYALTY RATES
1. The authority citation for Part 203 continues to read as
follows:
Authority: 25 U.S.C. 396 et seq.; 25 U.S.C. 396a et seq.; 25
U.S.C. 2101 et seq.; 30 U.S.C. 181 et seq.; 30 U.S.C. 351 et seq.;
30 U.S.C. 1001 et seq.; 30 U.S.C. 1701 et seq.; 31 U.S.C. 9701 et
seq.; 43 U.S.C. 1301 et seq.; 43 U.S.C. 1331 et seq.; and 43 U.S.C.
1801 et seq.
Subpart B--[Corrected]
2. Subpart B is corrected by revising the word ``OLS'' in the
Subpart heading to read ``OCS''.
3. Section 203.50 is corrected by adding two sentences at the end
of paragraph (a) to read as follows:
Sec. 203.50 Who may apply for end-of-life royalty relief?
(a)* * * These 12 months should reflect the basic operation you
intend to use until your resources are depleted. If you changed your
operation significantly (e.g., begin re-injecting rather than
recovering gas) during the qualifying months, or if you do so while we
are processing your application, we may defer action on your
application until you revise it to show the new circumstances.
* * * * *
Sec. 203.84 [Corrected]
4. In Sec. 203.84, paragraph (b) is corrected by revising the
citation ``30 CFR 220.013(a), (b), and (d) through (k)'' to read ``30
CFR 220.013''.
5. Section 203.84 is corrected by revising paragraphs (b)(7) and
(c) to read as follows:
Sec. 203.84 What is in a net revenue and relief justification report?
* * * * *
(b) * * *
(7) Costs associated with existing obligations (e.g., royalty
overrides or other forms of payment for acquiring the lease,
depreciation on previously acquired equipment or facilities).
(c) We may, in reviewing and evaluating your application, disallow
costs when you have not shown they are necessary to operate the lease,
or if they
[[Page 57250]]
are inconsistent with end-of-life operations.
Dated: October 19, 1998.
John V. Mirabella,
Acting Chief, Engineering and Operations Division.
[FR Doc. 98-28677 Filed 10-26-98; 8:45 am]
BILLING CODE 4310-MR-P
