96-27758. Meeting on Federal Oil and Gas Royalty Simplification and Fairness Act of 1996  

  • [Federal Register Volume 61, Number 211 (Wednesday, October 30, 1996)]
    [Proposed Rules]
    [Pages 55941-55942]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-27758]
    
    
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    DEPARTMENT OF THE INTERIOR
    
    Minerals Management Service
    
    30 CFR Ch. II
    
    
    Meeting on Federal Oil and Gas Royalty Simplification and 
    Fairness Act of 1996
    
    AGENCY: Minerals Management Service, Interior.
    
    ACTION: Notice of meeting.
    
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    SUMMARY: The Minerals Management Service (MMS), Royalty Management 
    Program, is analyzing the requirements of the Federal Oil and Gas 
    Royalty Simplification and Fairness Act of 1996 and developing 
    strategies to implement this Act. The purpose of this notice is to 
    inform the public of MMS's intention to consult with affected parties 
    about the changes to MMS processes required by this Act and describe 
    the method MMS will use to obtain input from the public.
    
    DATES: A public meeting will be held on Tuesday, November 19, 1996, 
    from 1 p.m. until 5 p.m.
    
    ADDRESSES: The meeting will be held in the Building 85 Auditorium on 
    the Denver Federal Center. Mail comments to: David S. Guzy, Chief, 
    Rules and Procedures Staff, Minerals Management Service, Royalty 
    Management Program, P.O. Box 25165, MS 3101, Denver, Colorado, 80225-
    0165, courier delivery to Building 85, Denver Federal Center, Denver, 
    Colorado, or e-mail David-Guzy@smtp.mms.gov.
    
    FOR FURTHER INFORMATION CONTACT: David S. Guzy, Rules and Procedures 
    Staff, telephone (303) 231-3432, Fax (303) 231-3194, or e-mail 
    David__Guzy@smtp.mms.gov. State and industry organizational 
    representatives are listed below:
    
    American Petroleum Institute
    
    Richard McPike, Fina Oil, P.O. Box 2159, Dallas, Texas 75221, (214) 
    750-2820, Fax: (214) 750-2987
    Backup: David Deal, 1220 L. Street N.W., Washington, DC 20005, (202) 
    682-8261, Fax: (202) 682-8033
    
    Council of Petroleum Accounting Societies
    
    Bill Stone, Exxon, P. O. Box 2024, Houston, Texas 77252-2024, (713) 
    680-7667, Fax: (713) 680-5280
    
    Domestic Petroleum Council
    
    David Blackmon, Meridian Oil, 801 Cherry, Suite 700, Fort Worth, Texas 
    76102, (817) 347-2354, Fax: (817) 347-2877
    
    Independent Petroleum Association of America
    
    Ben Dillon, 1101 16th St N.W., Washington, DC 20036, (202) 857-4722, 
    Fax: (202) 857-4799
    
    Independent Petroleum Association of Mountain States
    
    Barbara Widick, 518 17th Street, Denver, Colorado 80202-4167, (303) 
    623-0987, Fax: (303) 893-0709
    
    Mid-Continent Oil & Gas Association
    
    Patty Patten, OXY USA, Inc., 110 W. 7th Street, Tulsa, Oklahoma 74137, 
    (918) 561-3703, Fax: (918) 561-4364
    
    Natural Gas Supply Association
    
    George Butler, Chevron, P.O. Box 3725, Houston, Texas 77213-3725, (713) 
    754-7809, Fax: (713) 754-3366
    
    Rocky Mountain Oil & Gas Association
    
    Mary Stonecipher, Amoco Corporation, P.O. Box 591, Tulsa, Oklahoma 
    74102, (918) 581-4354, Fax: (918) 581-4526, Backup: Carla Wilson, 1775 
    Sherman Street, Suite 2501, Denver, Colorado 80203, (303) 860-0099, 
    Fax: (303) 860-0310
    
    Royalty Policy Committee
    
    Don Hoffman, Department of Revenue, State of Montana, Mitchell 
    Building, Room 330, Helena, Montana 59620, (406) 444-3587, Fax: (406) 
    444-2900
    
    State and Tribal Royalty Audit Committee
    
    Wanda Fleming, Montana Department of Revenue, P.O. Box 202701, Helena, 
    Montana 59620-2701, (406) 444-3573, Fax: (406) 444-3696
    
    Western Governors' Association
    
    Paul Kruse, Assistant Director, Federal Land Policy, State of Wyoming, 
    Herschler Building, 3 West, 121 West 25th Street, Cheyenne, Wyoming 
    82002-0600, (307) 777-7331, Fax: (307) 777-5400
    
    Western States Land Commissioners Association
    
    Maurice Lierz, New Mexico State Land Office, P.O. Box 1148, Santa Fe, 
    New Mexico 87504-1148, (505) 827-5735, Fax: (505) 827-4262
    
    or contact Mike Miller, MMS at (303) 231-3413 or via e:Mail at 
    Mike__Miller@smtp.mms.gov.
    
    SUPPLEMENTARY INFORMATION: President Clinton signed the Federal Oil and 
    Gas Royalty Simplification and Fairness Act (RSFA) on August 13, 1996, 
    to improve the management of royalties from Federal and Outer 
    Continental Shelf oil and gas leases. This is the first major 
    legislation affecting royalty management since the Federal Oil and Gas 
    Royalty Management Act of 1982 (FOGRMA) was passed in January 1983. The 
    key issues of RSFA implementation listed by near term and longer term 
    focus are:
    
    Near Term Focus
    
          Report and Pay/Credit Interest on Overpayments.
          Accept Interest Payments and Reporting from ``Designees'' 
    on Underpayments.
          Issue Enforceable Demands (Orders to Pay) to Operating 
    Rights.
        Owners Related to Production Occurring After 8/31/96.
          Implement the Repeal of Section 10 of the Outer 
    Continental Shelf Lands Act.
          Provide for Self Bonding for Appeals Relating to 
    Underpayments of Production After 09/01/96.
          Implement Section 205 Amendments (State Delegations) in 
    Consultation With States.
          Implement Reporting Requirements on Takes/Entitlement 
    Basis.
          Implement Marginal Properties Exception to RSFA 
    Entitlement Reporting Requirements.
          Provide Accounting, Reporting, and Auditing Relief for 
    Marginal Properties.
          Process Written Refund Requests Within 120 Days of 
    Receipt.
    
    [[Page 55942]]
    
          Address Cost/Benefit Provision of the RSFA.
    
    Long Term Focus
    
          BLM/OMM Approval of Unit/Communitization Agreements 
    Within 120 Days.
          Monitor Adjustments Beyond the ``6-year Adjustment 
    Period'' or Closed Audit Periods for Production After 09/01/96.
          Assess for Chronic Erroneous Reporting.
          Resolve and Bill, if Appropriate, Existing Takes/
    Entitlement Issues as of RSFA (08/13/96) Within 2 Years.
          Allow for Prepayments of Future Revenue Streams.
          Implement 7 Year Statute of Limitations for MMS' 
    Processes.
          Process All Appeals Within 33 months.
        We believe that contacts with both State government agencies and 
    the oil and gas industry are critical to gaining information, views, 
    ideas and approaches that will facilitate MMS moving forward with 
    implementation plans.
        Also, we believe that such contacts are important for keeping our 
    affected constituencies informed on the status of implementation 
    efforts.
        We believe our implementation strategy should be flexible and 
    provide for a range of outreach approaches. For example, topics such as 
    how to best establish the identity of designees and operating rights 
    owners may be appropriate for Customer Feedback Sessions to obtain 
    customer input during the evaluation of possible implementation 
    alternatives. Other topics such as how to implement the provisions for 
    marginal properties as well as the implementation of FOGRMA Section 205 
    amendments (state delegations) are likely candidates for a workshop 
    approach to facilitate extensive and ongoing dialog. Development of the 
    major implementing regulations required by RSFA will also require 
    extensive outreach with State government agencies and industry using 
    this strategy.
        MMS has invited representatives from State and industry 
    organizations to participate in the more structured discussion. 
    Organizational representatives and the MMS contact are listed in the 
    FURTHER INFORMATION section. Please direct your questions and comments 
    to the representatives.
        In complying with the Small Business Regulatory Enforcement 
    Fairness Act of 1996, we are also soliciting comments from small 
    entities as to the impact revised reporting requirements and 
    regulations resulting from RSFA will have on their operations. In 
    preparing rules required by RSFA, we will also work to comply with new 
    requirements of other recently passed laws and Executive Orders 
    affecting regulatory development.
    
    Customer Feedback Sessions
    
        MMS met with a working group of representatives from State 
    government agencies and industry organizations in an initial outreach 
    planning meeting in October 1996.
        The next phase of our outreach strategy centers around a series of 
    feedback sessions designed to present and discuss specific actions 
    taken and planned to implement one or more of the previously listed key 
    RSFA issues.
        We feel that we can best work with our stakeholders on an issue-by-
    issue basis to implement the requirements of RSFA. At these sessions 
    MMS would describe work to date including any decisions reached which 
    should, because of the timing, be communicated to stakeholders.
        As we schedule issue-specific meetings, we will notify members of 
    the working group that met in October. Each member of the working group 
    will then make sure those stakeholders whom they represent are 
    appropriately represented at the scheduled meetings. The objectives and 
    expected benefits of these meetings include a forum to gain an 
    understanding of the various positions of the stakeholders regarding 
    the issues presented. Periodically, we will meet with the entire 
    working group to discuss overall progress in implementing all issues 
    related to RSFA.
    
    Workshop Strategy
    
        The workshop strategy is intended to focus on selected aspects of 
    RSFA where MMS believes that State government agencies and industry 
    positions should be fully developed and evaluated before MMS selects 
    its implementation approach.
        This approach will rely primarily on workshops to be held in 
    Denver, Colorado. Other locations such as Houston may be appropriate 
    for selected workshops. The topics will be developed in consultation 
    with industry trade groups and State government agencies. MMS will 
    determine the final list of topics and the agenda for each workshop.
    
    Payor and Operator Training Sessions
    
        These sessions which take place several times a year provide 
    opportunities for exchange of information and ideas on new initiatives 
    currently underway. Industry representatives at these sessions can 
    attend with the expectation of some level of discussion on the RSFA 
    issues. Questions can be raised and discussed.
    
    Day to Day Contacts
    
        Within three of RMP's divisions, employees and contractor personnel 
    have day to day contacts with industry representatives. Questions can 
    be asked daily by many payors and operators reporting to RMP.
    
    Other Sessions
    
        Many other sessions that involve industry and State government 
    agencies will take place over the next few months which are not 
    specifically organized to deal with RSFA or its implementation, but 
    which will nevertheless require a level of understanding of RSFA for 
    attendees. Sessions for discussing electronic reporting will take place 
    and our representative can be asked to discuss the implications of RSFA 
    as it relate to electronic reporting. Clearly, industry will require as 
    much lead time as RMP to properly prepare for future changes to 
    reporting requirements.
        In order to accomplish a broad based fact finding on how the 
    requirements of RSFA affect our customers and stakeholders, comments 
    from the public are encouraged on any issue related to implementing 
    RSFA. In addition to attendance at the previously described sessions 
    and workshops comments can be made in writing and be sent directly to 
    MMS using instructions in the ADDRESSES part of this notice.
    
        Date: October 22, 1996.
    James W. Shaw,
    Associate Director for Royalty Management.
    [FR Doc. 96-27758 Filed 10-29-96; 8:45 am]
    BILLING CODE 4310-MR-P
    
    
    

Document Information

Published:
10/30/1996
Department:
Minerals Management Service
Entry Type:
Proposed Rule
Action:
Notice of meeting.
Document Number:
96-27758
Dates:
A public meeting will be held on Tuesday, November 19, 1996, from 1 p.m. until 5 p.m.
Pages:
55941-55942 (2 pages)
PDF File:
96-27758.pdf
CFR: (1)
30 CFR None