[Federal Register Volume 63, Number 127 (Thursday, July 2, 1998)]
[Notices]
[Page 36260]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-17694]
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DEPARTMENT OF THE INTERIOR
Minerals Management Service
Announcement of Posting of Invitation for Bids on Crude Oil From
Federal Leases in Wyoming
AGENCY: Minerals Management Service, Interior.
ACTION: Notice of IFB on Federal crude oil in the State of Wyoming.
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SUMMARY: The Minerals Management Service (MMS) will post on MMS's
Internet Home Page and make available in hard copy an Invitation for
Bids (IFB) offering of approximately 3,700 barrels per day (bpd) of
crude oil to be taken as royalty-in-kind (RIK) from Federal leases in
Wyoming's Bighorn and Powder River Basins. The oil will be sold
publicly by competitive bid.
DATES: The IFB will be posted on MMS's Internet Home Page on or about
July 1, 1998. Bids will be due to MMS on or about July 31, 1998. MMS
will notify successful bidders on or about August 17, 1998. The Federal
Government will begin actual taking of royalty volumes for a 6-month
period beginning on or about October 1, 1998.
ADDRESSES: The IFB will be posted on MMS's Home page at http://
www.rmp.mms.gov under the icon ``What's New.'' The IFB may also be
obtained by contacting Ms. Betty Estey at the address in the FURTHER
INFORMATION section. Bids should be submitted to the address provided
in the IFB.
FOR FURTHER INFORMATION CONTACT: For additional information on MMS's
RIK pilots, contact Mr. Bonn J. Macy, Minerals Management Service, 1849
C Street, NW, MS 4230, Washington, DC 20240; telephone number (202)
208-3827; fax (202) 208-3918; e-mail Bonn.Macy@mms.gov. For additional
information concerning the IFB document, terms, and process, contact
Ms. Betty Estey, Minerals Management Service, MS 2510, 381 Elden
Street, Herndon, VA 20170-4817; telephone number (703) 787-1352; fax
(703) 787-1009; e-mail Betty.Estey@mms.gov.
SUPPLEMENTARY INFORMATION: The offering of crude oil in the IFB is
Phase I of the first of MMS's three planned RIK pilots. The other two
RIK pilots will be in the Gulf of Mexico. MMS's objective in all its
pilots is to identify the circumstances under which taking oil and gas
royalties as a share of production, or RIK, is a viable alternative to
MMS's usual practice of collecting oil and gas royalties as a share of
the value received by the lessee for sale of the production. The
Wyoming pilot is a joint project with the State of Wyoming expected to
last 2 to 3 years.
The sale will involve approximately 3,700 bpd of crude oil from
some 186 Federal properties located in Wyoming's Bighorn and Powder
River Basins.
Purchasers may bid on individual properties and/or on the entire
packages of Wyoming sweet crude oil (1,051 bpd), Wyoming general sour
crude oil (890 bpd), or Wyoming asphaltic sour crude oil (1,782 bpd).
Bids will be due as specified in the IFB on or about July 31, 1998;
successful bidders will be notified on or about August 17, 1998.
The following are some of the additional details regarding the
offerings that will be posted in the IFB on or about July 1, 1998:
List of specific properties;
For each property, royalty rate(s), average daily royalty
volume, quality, transportation method (truck/pipe), and current
transporter and operator;
Bid basis;
Reporting requirements;
Terms and conditions; and
Contract format.
The internet posting and availability of the IFB in hard copy are
being announced in oil and gas trade journals as well as in this
Federal Register notice.
Dated: June 26, 1998.
Walter D. Cruickshank,
Associate Director for Policy and Management Improvement.
[FR Doc. 98-17694 Filed 7-1-98; 8:45 am]
BILLING CODE 4310-MR-P
