00-18694. Major Portion Prices and Due Dates for Additional Royalty Payments on Indian Gas Production in Designated Areas Not Associated with an Index Zone

AGENCY:

Minerals Management Service (MMS), Interior.

ACTION:

Notice of major portion prices.

SUMMARY:

Final regulations for valuing gas produced from Indian leases, published on August 10, 1999, require MMS to determine major portion values and notify industry by publishing the values in the Federal Register. The regulations also require MMS to publish a due date for industry to pay additional royalty based on the major portion value. This notice provides the major portion values and due dates for January and February 2000 production months.

EFFECTIVE DATES:

January 1, 2000.

ADDRESSES:

See FOR FURTHER INFORMATION CONTACT section below.

FOR FURTHER INFORMATION CONTACT:

John Barder, Royalty Valuation Division, MMS; telephone, [phone]; FAX, [phone]; E-mail, [e-mail]; mailing address, Minerals Management Service, Royalty Management Program, Royalty Valuation Division, P.O. Box 25165, MS 3152, Denver, Colorado 80225-0165.

SUPPLEMENTARY INFORMATION:

On August 10, 1999, MMS published a final rule, titled “Amendments to Gas Valuation Regulations for Indian Leases,” with an effective date of January 1, 2000 (64 FR 43506). The gas regulations apply to all gas produced from Indian (tribal or allotted) oil and gas leases (except leases on the Osage Indian Reservation).

The rule requires that MMS publish major portion prices for each designated area not associated with an index zone for each production month beginning January 2000 along with a due date for additional royalty payments. See 30 CFR 206.174(a)(4)(ii) (64 FR 43520, August 10, 1999). If additional royalties are due based on a published major portion price, the lessee must submit an amended Form MMS-2014, Report of Sales and Royalty Remittance, to MMS by the due date. If additional royalties are not paid by the due date, late payment interest under 30 CFR 218.54 (1999) will accrue from the due date until payment is made and an amended Form MMS-2014 is received. The table below lists the major portion prices for all designated areas not associated with an index zone and the due date for payment of additional royalties.

GAS MAJOR PORTION PRICES FOR JANUARY AND FEBRUARY 2000 AND DUE DATES FOR DESIGNATED AREAS NOT ASSOCIATED WITH AN INDEX ZONE

MMS-Designated Areas	January 2000	February 2000	Due Date
Blackfeet Reservation	$1.73/MMBtu	$1.68/MMBtu	08/31/2000
Fort Belknap	3.72/MMBtu	3.81/MMBtu	08/31/2000
Fort Berthold	0.87/MMBtu	1.00/MMBtu	08/31/2000
Fort Peck Reservation	1.47/MMBtu	1.67/MMBtu	08/31/2000
Navajo Allotted Leases in the Navajo Reservation	2.20/MMBtu	2.45/MMBtu	08/31/2000
Rocky Boys Reservation	1.64/MMBtu	1.84/MMBtu	08/31/2000
Turtle Mountain Reservation	1.27/MMBtu	1.27/MMBtu	08/31/2000
Ute Allotted Leases in the Uintah and Ouray Reservation	2.18/MMBtu	2.38/MMBtu	08/31/2000
Ute Tribal Leases in the Uintah and Ouray Reservation	2.18/MMBtu	2.38/MMBtu	08/31/2000

For information on how to report additional royalties due to major portion prices, please refer to our Dear Payor letter dated December 1, 1999.

Dated: July 19, 2000.

Lucy Querques Denett,

Associate Director for Royalty Management.