[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