99-18653. Announcement of Posting of Invitation for Bids on Crude Oil From Federal Leases and State of Wyoming Properties in Wyoming

[Federal Register Volume 64, Number 140 (Thursday, July 22, 1999)]
[Notices]
[Pages 39527-39528]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-18653]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service


Announcement of Posting of Invitation for Bids on Crude Oil From 
Federal Leases and State of Wyoming Properties in Wyoming

AGENCY: Minerals Management Service, Interior.

ACTION: Notice of Invitation for Bids on Federal and State of Wyoming 
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, a public 
competitive offering of approximately 3,250 barrels per day (bpd) of 
crude oil, to be taken as royalty-in-kind (RIK) from a combination of 
Federal properties and State of Wyoming (State) properties in Wyoming's 
Bighorn and Powder River Basins through an Invitation for Bids (IFB), 
Number 31010.

DATES: The IFB will be posted on MMS's Internet Home Page on or about 
July 19, 1999. Bids will be due to MMS and State of Wyoming, at the 
posted receipt location for both, on or about August 9, 1999. MMS and 
the State of Wyoming will notify successful bidders on or about August 
16, 1999. The Federal Government and the State will begin actual taking 
of awarded royalty oil volumes for delivery to successful bidders for a 
6-month period beginning on or about October 1, 1999.

ADDRESSES: The IFB will be posted on MMS's Home page at http://
www.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 [phone]; e-mail [e-mail]. For additional 
information concerning the IFB document, terms, and process for Federal 
leases, contact Ms. Betty Estey, Minerals Management Service, MS 2510, 
381 Elden Street, Herndon, VA 20170-4817; telephone number (703)787-
1352; fax [phone]; e-mail [e-mail]. For additional 
information concerning the IFB document, terms, and process for State 
of Wyoming properties, contact Mr. Harold Kemp, Office of State Lands 
and Investments, Herschler Building, 3rd Floor West, 122 West 25th 
Street, Cheyenne, WY 82002-0600; telephone number [phone]; Fax: 
[phone]; Email: [e-mail].


[[Page 39528]]


SUPPLEMENTARY INFORMATION: The offering of crude oil in the IFB is a 
continuation of the first of MMS's three planned RIK pilots. The other 
two RIK pilots are in the Gulf of Mexico. The State's objective in this 
pilot and MMS's objective in all its pilots is to identify the 
circumstances in which taking oil and gas royalties as a share of 
production (RIK) is a viable alternative to the agencies' 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 3,250 bpd of crude oil from 66 
Federal and State properties located in Wyoming's Bighorn and Powder 
River Basins. RIK oil from these Federal properties was previously 
offered under IFB No. 3984 for delivery to purchasers for production 
months April through September 1999. The main difference from the last 
sale is that only pipeline connected properties are being offered in 
this IFB.
    Purchasers may bid on specific pipeline subgroups and/or on the 
entire packages of Wyoming sweet crude oil (1,020 bpd), Wyoming general 
sour crude oil (526 bpd), or Wyoming asphaltic sour crude oil (1,704 
bpd). Bids will be due as specified in the IFB on or about August 9, 
1999; successful bidders will be notified on or about August 16, 1999.
    The following are some of the additional details regarding the 
offerings that will be posted in the IFB on or about July 19, 1999.
     List of specific properties;
     For each property--tract allocations, royalty rate(s), 
average daily royalty volume, quality, 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: July 16, 1999.
Walter Cruickshank,
Associate Director for Policy and Management Improvement.
[FR Doc. 99-18653 Filed 7-21-99; 8:45 am]
BILLING CODE 4310-MR-U