97-17312. Establishing Oil Value for Royalty Due on Federal Leases, and on Sale of Federal Royalty Oil  

  • [Federal Register Volume 62, Number 128 (Thursday, July 3, 1997)]
    [Proposed Rules]
    [Pages 36030-36037]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 97-17312]
    
    
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    DEPARTMENT OF THE INTERIOR
    
    Minerals Management Service
    
    30 CFR Part 206
    
    RIN 1010-AC09
    
    
    Establishing Oil Value for Royalty Due on Federal Leases, and on 
    Sale of Federal Royalty Oil
    
    AGENCY: Minerals Management Service, Interior.
    
    ACTION: Supplementary proposed rule.
    
    -----------------------------------------------------------------------
    
    SUMMARY: The Minerals Management Service (MMS), Royalty Management 
    Program (RMP) is proposing changes to its recently-issued proposed rule 
    regarding valuation of crude oil produced from Federal leases. MMS also 
    is reopening the comment period to receive comments on the originally 
    proposed rule and these additional changes. These revisions would 
    modify the eligibility requirements for oil valuation for arm's-length 
    transactions and the procedures for collecting oil exchange 
    information. MMS also is amending the list of aggregation points to 
    include additional locations inadvertently left out of the earlier 
    proposal.
    
    DATES: Comments must be submitted on or before August 4, 1997.
    
    ADDRESSES: Mail written comments, suggestions, or objections regarding 
    the proposed rule to: Minerals Management Service, Royalty Management 
    Program, Rules and Publications Staff, P.O. Box 25165, MS 3021, Denver, 
    Colorado 80225-0165; courier address is Building 85, Denver Federal 
    Center, Denver, Colorado 80225; or e:Mail David__Guzy@mms.gov. MMS will 
    publish a separate notice in the Federal Register indicating dates and 
    locations of public meetings regarding this proposed rulemaking.
    
    FOR FURTHER INFORMATION CONTACT: David S. Guzy, Chief, Rules and 
    Publications Staff, telephone (303) 231-3432, FAX (303) 231-3385, 
    e:Mail David__Guzy@mms.gov, Minerals Management Service, Royalty 
    Management Program, Rules and Publications Staff, P.O. Box 25165, MS 
    3021, Denver, Colorado 80225-0165.
    
    SUPPLEMENTARY INFORMATION: The principal authors of this supplementary 
    proposed rule are Deborah Gibbs Tschudy of RMP and Peter Schaumberg of 
    the Office of the Solicitor.
    
    I. Background
    
        MMS published a notice of proposed rulemaking on January 24, 1997 
    (62 FR 3741), to amend its current Federal crude oil valuation 
    regulations in 30 CFR Part 206. The initial comment period expired 
    March 25, 1997, and was twice extended to April 28, 1997 (62 FR 7189), 
    and to May 28, 1997 (62 FR 19966). Comments received to date are 
    available for public inspection at the RMP offices in Lakewood, 
    Colorado or on the Internet at
    http://www.rmp.mms.gov.
    MMS also will place any additional comments received on this rule on 
    the Internet. Call David Guzy at (303) 231-3432 for further 
    information.
        By this notice, MMS is reopening the comment period until August 4, 
    1997.
    
    II. Public Comments
    
        As part of the public comment process, MMS held public meetings in 
    Lakewood, Colorado on April 15, 1997, and Houston, Texas on April 17, 
    1997, to hear comments on the proposal.
        MMS has received many comments on the proposed rule. There have 
    been issues raised to date that MMS recognizes require changes to the 
    proposed rule because they result in unintentional exceptions to use of 
    gross proceeds for calculating royalty value by small producers.
        MMS heard a number of comments from attendees at the public 
    meetings about provisions in the proposal that would require small 
    producers to pay based on index pricing instead of gross proceeds if 
    they: (1) Made small-volume purchases of oil for lease operations or 
    other purposes (see Sec. 206.102(a)(6) of the proposed rule), or (2) 
    had crude oil call provisions that were never exercised (see 
    Sec. 206.102(a)(5) of the proposed rule).
        MMS also received comments about proposed new Form MMS-4415, the 
    Oil Location Differential Report. These comments included complaints 
    about the amount of information required, some of which the commenters 
    believed that MMS does not need.
        MMS met with representatives of the Independent Petroleum 
    Association of America (IPAA), the Independent Petroleum Association of 
    Mountain States (IPAMS), and the State of Louisiana on May 13-14, 1997. 
    At that meeting, IPAA and IPAMS presented their comments on the January 
    24, 1997,
    
    [[Page 36031]]
    
    proposal, including the issues discussed above.
        The IPAA submitted its written comments to MMS on May 15, 1997. In 
    these comments, IPAA recommended that MMS allow companies that purchase 
    oil and companies whose production is subject to crude oil calls to use 
    gross proceeds under arm's-length contracts to determine value. IPAA 
    also recommended that MMS revise its benchmarks for valuing production 
    not sold under arm's-length contracts.
    
    III. Revisions to Proposed Rule
    
        After hearing these comments, MMS is amending the proposed rule to 
    address significant concerns raised early in the public comment process 
    and is reopening the comment period to receive additional comments on 
    those minor changes to the proposed rule.
        MMS's intent in proposed Sec. 206.102(a)(4) was to exclude oil 
    subject to crude oil calls from gross proceeds valuation because 
    factors other than the real value of the oil may be affecting the 
    price. However, excluding all oil ``subject'' to crude oil calls was 
    too broad. MMS recognizes that in cases where crude oil calls are not 
    exercised and the production is sold under an arm's-length contract, it 
    may be unnecessary to use index prices to determine value. The arm's-
    length gross proceeds in such a circumstance may generally reflect the 
    value of production. Also, if the production disposed of when a crude 
    oil call is exercised is valued based upon the price that other parties 
    are willing to competitively bid to purchase the production (the so-
    called Most Favored Nation clause), then the oil should not be subject 
    to index pricing provisions under Sec. 206.102(c).
        Therefore, MMS is proposing to amend Sec. 206.102(a)(4) to limit 
    the exclusion from gross proceeds valuation to situations involving 
    only non-competitive crude oil calls. That is, MMS is proposing that in 
    a situation where there is a purchase sale agreement or farm out in 
    which the purchaser of the property agrees to be subject to a non-
    competitive call by the seller of the property instead of paying full 
    market value for the property, then the production would be valued 
    under Sec. 206.102(c). Also, a corresponding definition of ``non-
    competitive crude oil call'' is added to the proposed rule.
        MMS does have some concerns about whether this proposal to allow 
    valuation based on gross proceeds in a competitive call circumstance 
    may result in undervaluation situations. For instance, we have concerns 
    about a lessee's ability to know, and MMS's ability to obtain timely 
    the pricing information needed to monitor adequately, whether the 
    prices lessees are receiving are the highest prices under the Most 
    Favored Nations clause and whether such prices are subject to discounts 
    below true market prices and index values because of exchanges and 
    other complex marketing arrangements. MMS would like specific comments 
    on these concerns. MMS also would like comments to address the 
    situation where the holder of the call may transfer the right to take 
    the production to a third party and whether that might affect the gross 
    proceeds paid to the lessee.
        MMS is also proposing a further change to Sec. 206.102(a)(4) to 
    exclude one other category of arm's-length transactions from gross 
    proceeds valuation. There are situations where two parties transact 
    purchases and sales of oil that would appear to be arm's-length. 
    However, the prices in the transactions are below market for the field 
    or area. Neither party cares because they agree to sell roughly 
    equivalent volumes to one another, either in the same field or another 
    field, so any discount is enjoyed equally by the two parties. The 
    royalty owners lose in this case because of the below-market valuation 
    in the purportedly arm's-length sales. In these ``overall balance'' 
    situations, MMS would require you to value the production based on 
    index value under Sec. 206.102(c)(2) instead of your gross proceeds. 
    This situation would also be covered under Sec. 206.102(a)(2), but MMS 
    believes it would be preferable to address this situation directly in 
    Sec. 206.102(a)(4).
        MMS also recognizes that the requirement in the proposed rule that 
    purchasers of small amounts of oil must value oil using index prices is 
    potentially too restrictive. It was not MMS's intent to require 
    producers to pay royalties based on index prices if they purchase oil 
    to make up for production shortfalls (meaning production insufficient 
    to meet confirmed nominations or warranted volumes), or if they must 
    purchase crude oil to operate their lease. MMS therefore is proposing 
    to delete Sec. 206.102(a)(6) as proposed in January.
        MMS believes that the new proposed paragraph (a)(4) is sufficient 
    to address the concerns that the original paragraph (a)(6) proposed in 
    January intended to address. However, MMS has concerns about whether it 
    can effectively enforce that provision prior to audit, therefore, MMS 
    specifically requests comments on whether we should require lessees who 
    value their production using gross proceeds received under an arm's-
    length contract to certify that they are not maintaining an ``overall 
    balance'' with their purchaser. MMS also requests comments on whether 
    we should amend Sec. 206.102(a)(6) as proposed in January to specify 
    purchase levels below which a lessee would not be required to value 
    their production using index value.
        MMS is proposing a new paragraph (a)(6) to address oil production 
    you dispose of under certain exchange agreements. Under this proposed 
    new paragraph, if you dispose of your oil under an exchange agreement 
    with a person who is not affiliated with you, and if after the exchange 
    you sell the acquired oil under an arm's-length contract, you may use 
    either Sec. 206.102(a) or (c)(2) to value your production. This means 
    you would have a choice to value your production based on either gross 
    proceeds or index value. If you elect to use gross proceeds, you would 
    use the gross proceeds from your arm's-length sale of the oil after the 
    exchange, adjusted for any location or quality differences paid or 
    received under the arm's-length exchange agreement.
        For example, assume that Company X produces 100 barrels of oil from 
    a Federal lease and enters into an exchange agreement with Company Y 
    (who is not affiliated with Company X). Under the exchange agreement, 
    Company Y is providing an equal volume of higher gravity oil, so 
    Company X is paying a 25-cent-per-barrel quality differential. After 
    the exchange, Company X sells the oil arm's-length to Company Z for $20 
    per barrel. Company X could use either Sec. 206.102(c)(2) and value its 
    lease production based on index value, or use its gross proceeds 
    received under the arm's-length contract with Company Z adjusted for 
    quality and location, in this example $19.75.
        If you transfer your Federal lease production to an affiliate, and 
    that affiliate enters into an arm's-length exchange agreement, 
    (a)(6)(i) would not apply. Nor would it apply if the oil you receive 
    back in an exchange agreement is transferred to an affiliate before it 
    is sold. In both of these cases, the transfer to an affiliate before or 
    after the exchange is considered a non-arm's-length sale that would be 
    valued under Sec. 206.102(c)(2). Further, you may use (a)(6)(i) only if 
    there is a single exchange before you sell the oil arm's-length. You 
    must use index value under Sec. 206.102(c)(2) if you enter into a 
    second (or third, etc.) exchange for the oil you received back from 
    your exchange partner in the first exchange.
    
    [[Page 36032]]
    
        Proposed Sec. 206.102(a)(6)(iii) explains that if you use gross 
    proceeds under Sec. 206.102(a) to value production subject to paragraph 
    (a)(6)(i), you must make that election for all oil production disposed 
    of under all other arm's-length exchange agreements that are subject to 
    paragraph (a)(6)(i).
        MMS also is amending Sec. 206.102(a)(1) to clarify that the 
    exceptions to valuing oil sold under arm's-length contracts based on 
    gross proceeds are transaction or contract specific. That is, if you 
    have one arm's-length contract that is subject to a non-competitive 
    crude oil call, then that does not necessarily mean that all of your 
    Federal production must be valued under Sec. 206.102(c).
        MMS also heard comments concerning the filing of Form MMS-4415. 
    Comments asked for clarification on who must file the form and what 
    information is required. MMS developed this form to gather information 
    on the relative value of crude oil involved in exchange agreements and 
    to determine appropriate location and quality differentials between the 
    aggregation points and the market centers. To calculate specific 
    differentials, MMS would take the volume-weighted average of the 
    individual differentials derived from information payors report on Form 
    MMS-4415. MMS will collect only information about exchanges where 
    delivery occurs at an aggregation point and a market center. MMS seeks 
    comments on the usefulness of collecting information about exchanges 
    between two aggregation points. Lessees would not be required to report 
    information from exchanges where oil is exchanged at the lease.
        During the public hearings, MMS also received comments on whether 
    MMS should collect information about exchanges between aggregation 
    points and market centers from other than Federal lease production. 
    Obviously, if only Federal production is commingled at a particular 
    aggregation point, MMS would only need information regarding Federal 
    lease production. MMS seeks comment on how lessees would allocate to 
    Federal leases differentials from aggregation points to market centers 
    when non-Federal production is commingled with Federal production at 
    aggregation points.
        The January 24, 1997, proposal for valuing Federal crude oil 
    contained a list of aggregation points in Appendix H. That listing was 
    incomplete. This supplementary proposed rule revises Appendix H to 
    include more aggregation points.
        MMS specifically requests comments on the revised paragraphs 
    addressed in this notice. MMS also requests comments on alternatives 
    for valuing production not sold under arm's-length contracts--
    Sec. 206.102(c). Specifically, MMS requests comments on alternatives 
    based on lease market indicators that are readily available 
    contemporaneously. You also may comment further on any other provision 
    in the January 24 proposed rule. If you already submitted written 
    comments on other portions of the rule, you do not need to resubmit 
    those comments.
    
    List of Subjects in 30 CFR Part 206
    
        Coal, Continental shelf, Geothermal energy, Government contracts, 
    Indians-lands, Mineral royalties, Natural gas, Petroleum, Public lands-
    mineral resources, Reporting and recordkeeping requirements.
    
        Dated June 26, 1997.
    Bob Armstrong,
    Assistant Secretary for Land and Minerals Management.
    
        For the reasons set forth in the preamble, the proposed rule 
    published at 62 FR 3741, on January 24, 1997, amending 30 CFR Part 206, 
    is further amended as follows:
    
    PART 206--PRODUCT VALUATION
    
        1. The Authority citation for Part 206 continues to read as 
    follows:
    
        Authority: 5 U.S.C. 301 et seq.; 25 U.S.C. 396 et seq.; 396a et 
    seq., 2101 et seq.; 30 U.S.C. 181 et seq.; 351 et seq.; 1001 et 
    seq.; 1701 et seq.; 31 U.S.C. 9701.; 43 U.S.C. 1301 et seq.; 1331 et 
    seq.; and 1801 et seq.
    
    Subpart C--Federal Oil
    
        2. Section 206.101 as proposed to be revised at 62 FR 3751 is 
    further amended by adding the following definition to read as follows:
    
    
    Sec. 206.101  Definitions.
    
        Non-competitive crude oil call means a purchase sale agreement or 
    farm out in which the buyer of the property agrees to be subject to a 
    call on their production that does not contain a Most Favored Nations 
    clause or a similar clause in which the price is based on what other 
    parties are willing to competitively bid to purchase the production.
        3. Section 206.102 as proposed to be revised at 62 FR 3752 is 
    further amended by revising paragraphs (a)(1), (a)(4), and (a)(6) to 
    read as follows:
    
    
    Sec. 206.102  How do I calculate royalty value for oil?
    
    * * * * *
        (a) * * *
        (1) Paragraphs (a)(2) through (a)(6) of this section contain 
    exceptions to the valuation rule in paragraph (a) of this section. 
    Apply these exceptions on an individual contract basis.
    * * * * *
        (4) You must use paragraph (c)(2) of this section to value oil 
    disposed of under:
        (i) An exchange agreement, except as provided in paragraph (a)(6) 
    of this section;
        (ii) An arm's-length contract between a buyer and seller in which 
    the contract price does not represent market value in the field or area 
    because an overall balance between volumes bought and sold is 
    maintained between that buyer and seller; or
        (iii) The exercise of a non-competitive crude oil call. If you 
    dispose of your oil under a competitive crude oil call, value your oil 
    under Sec. 206.102(a).
    * * * * *
        (6) (i) If you dispose of your oil under an exchange agreement with 
    a person who is not affiliated with you, and if after the exchange you 
    sell the acquired oil under an arm's-length contract, you may use 
    either Sec. 206.102(a) or Sec. 206.102(c)(2) to value your production 
    for royalty purposes. If you use Sec. 206.102(a), your gross proceeds 
    are the gross proceeds under your arm's-length contract after the 
    exchange occurs, adjusted for any location or quality differential or 
    other adjustments you received or paid under the arm's-length exchange 
    agreement.
        (ii) You must use Sec. 206.102(c)(2) to value your production if 
    you transfer your oil to an affiliate before the exchange occurs. You 
    also must use Sec. 206.102(c)(2) to value your oil if you transfer the 
    oil you receive in the exchange to an affiliate or if you enter into a 
    second exchange for the oil you received back under your first 
    exchange.
        (iii) If you value production under Sec. 206.102(a)(6)(i), you must 
    make the same election for all of your production disposed of under 
    arm's-length exchange agreements that are subject to 
    Sec. 206.102(a)(6)(i).
    * * * * *
        Note: The following appendix will not appear in the Code of 
    Federal Regulations.
    
    [[Page 36033]]
    
    Appendix H to Preamble of Oil Valuation Rule
    
    ------------------------------------------------------------------------
           State             Station location       County/offshore location
    ------------------------------------------------------------------------
    AL................  Marion Corp. Connection..  Mobile.                  
    AL................  Mobile...................  Mobile.                  
    AL................  Saraland Terminal........  Mobile.                  
    AL................  Ten Mile Point Terminal..  Mobile.                  
    CA................  Coalinga.................  Fresno.                  
    CA................  Belridge.................  Kern.                    
    CA................  Fellows..................  Kern.                    
    CA................  Kelley...................  Kern.                    
    CA................  Leutholtz Jct............  Kern.                    
    CA................  Pentland.................  Kern.                    
    CA................  Midway...................  Kern.                    
    CA................  Station 36-Kern River....  Kern.                    
    CA................  Newhall..................  Los Angeles.             
    CA................  Sunset...................  Los Angeles.             
    CA................  Cadiz....................  San Bernadino.           
    CA................  Avila....................  San Luis Obispo.         
    CA................  Gaviota Terminal.........  Santa Barbara.           
    CA................  Lompoc...................  Santa Barbara.           
    CA................  Sisquoc Jct..............  Santa Barbara.           
    CA................  Filmore..................  Ventura.                 
    CA................  Rincon...................  Ventura.                 
    CA................  Ventura..................  Ventura.                 
    CA................  Junction.................  (County Unknown).        
    CA................  Lake.....................  (County Unknown).        
    CA................  Rio Bravo................  (County Unknown).        
    CA................  Santa Paula..............  (County Unknown).        
    CA................  Signa....................  (County Unknown).        
    CA................  Stewart..................  (County Unknown).        
    CO................  Denver...................  Adams.                   
    CO................  Cheyenne Wells Station...  Cheyenne.                
    CO................  Iles.....................  (County Unknown).        
    CO................  Sterling.................  Logan.                   
    CO................  Fruita...................  Mesa.                    
    CO................  Rangley..................  Rio Blanca.              
    KS................  Humbolt-Williams P.L.....  Allen.                   
    KS................  Augusta..................  Butler.                  
    KS................  Eldorado.................  Butler.                  
    KS................  Harper's Ranch...........  Clark.                   
    KS................  Arkansas City............  Cowley.                  
    KS................  McPherson Sta............  McPherson.               
    KS................  Caney....................  Montgomery.              
    KS................  Laton Sta................  Osborne.                 
    KS................  Herndon Station..........  Rawlings.                
    KS................  Rawlings Sta.............  Rice.                    
    KS................  Lyons Station............  Sedgwick.                
    KS................  Valley Center............  Thomas.                  
    KS................  Bemis St.................  (County Unknown).        
    KS................  Broome St................  (County Unknown).        
    KS................  Towlanda.................  (County Unknown).        
    LA................  Brown Sta................  Caddo.                   
    LA................  Clifton Ridge............  Calcasieu.               
    LA................  Conoco Jct...............  Calcasieu .              
    LA................  Lake Charles.............  Calcasieu                
    LA................  Pecan Grove..............  Calcasieu.               
    LA................  Rose Bluff...............  Calcasieu.               
    LA................  Texaco Jct...............  Calcasieu.               
    LA................  Grand Chenier Term.......  Cameron.                 
    LA................  Hainesville Sta..........  Claiborne.               
    LA................  Maryland.................  East Baton Rouge.        
    LA................  Bayou Fifi...............  Jefferson.               
    LA................  Grand Isle...............  Jefferson.               
    LA................  Bay Marchand Term........  Lafourche.               
    LA................  Bayou Fourchon...........  Lafourche.               
    LA................  Clovelly.................  Lafourche.               
    LA................  Clovelly Storage Dome....  Lafourche.               
    LA................  Elmers Jct...............  Lafourche.               
    LA................  Fourchon Terminal........  Lafourche.               
    LA................  Golden Meadow............  Lafourche.               
    LA................  Larose Barge Terminal....  Lafourche.               
    LA................  Pass Fourchon P.L........  Lafourche.               
    LA................  Blk. 28 Tie-in...........  Offshore East Cameron.   
    LA................  Blk. 23..................  Offshore Eugene Island.  
    
    [[Page 36034]]
    
                                                                            
    LA................  Blk. 51 B Platform.......  Offshore Eugene Island.  
    LA................  Blk. 188 A Structure.....  Offshore Eugene Island.  
    LA................  Blk. 259.................  Offshore Eugene Island.  
    LA................  Blk. 316.................  Offshore Eugene Island.  
    LA................  Blk. 337 Subsea Tie-in...  Offshore Eugene Island.  
    LA................  Blk. 361.................  Offshore Eugene Island.  
    LA................  Texas P.L. Subsea Tie-in.  Offshore Eugene Island.  
    LA................  Blk. 17..................  Offshore Grand Isle.     
    LA................  Blk. 42--Chevron P.L.....  Offshore Main Pass.      
    LA................  Blk. 42L.................  Offshore Main Pass.      
                      LABlk. 69 B Plat...........  Offshore Main Pass.      
    LA................  Blk. 77 (Pompano P.L.      Offshore Main Pass.      
                         Jct.).                                             
    LA................  Blk. 144 Structure A.....  Offshore Main Pass.      
    LA................  Blk. 298 Plat. A.........  Offshore Main Pass.      
    LA................  Blk. 299 Platform........  Offshore Main Pass.      
    LA................  Blk. 28..................  Offshore Ship Shoal.     
    LA................  Blk. 154.................  Offshore Ship Shoal.     
    LA................  Blk. 169.................  Offshore Ship Shoal.     
    LA................  Blk. 203 Subsea Tie-in...  Offshore Ship Shoal.     
    LA................  Blk. 208.................  Offshore Ship Shoal.     
    LA................  Blk. 208 B Structure.....  Offshore Ship Shoal.     
    LA................  Blk. 208 F...............  Offshore Ship Shoal.     
    LA................  Ship Shoal Area..........  Offshore Ship Shoal.     
    LA................  Blk. 6...................  Offshore South Marsh     
                                                    Island.                 
    LA................  Blk. 10--Structure A.....  Offshore South Marsh     
                                                    Island.                 
    LA................  Blk. 58A.................  Offshore South Marsh     
                                                    Island.                 
    LA................  Blk. 139.................  Offshore South Marsh     
                                                    Island.                 
    LA................  Blk. 139 Subsea Tap Valve  Offshore South Marsh     
                         Connect.                   Island.                 
    LA................  Blk. 207--Light House      Offshore South Marsh     
                         Point A.                   Island.                 
    LA................  Blk. 268--Platform A.....  Offshore South Marsh     
                                                    Island.                 
    LA................  Blk. 55..................  Offshore--South Pass.    
    LA................  Blk. 13 (Wesco P.L.        Offshore--South Pelto.   
                         Subsea Tie-in).                                    
    LA................  Blk. 35 Platform D.......  Offshore--S. Timbalier.  
    LA................  Blk. 52 Plat. A..........  Offshore--S. Timbalier.  
    LA................  Blk. 172 Plat. D.........  Offshore--S. Timbalier.  
    LA................  Blk. 196 Exxon P.L.        Offshore--S. Timbalier.  
                         System Tie-in.                                     
    LA................  Blk. 300.................  Offshore--S. Timbalier.  
    LA................  Blk. 255.................  Offshore Vermilion.      
    LA................  Blk. 265 Platform A......  Offshore Vermilion.      
    LA................  Blk. 350.................  Offshore Vermilion.      
    LA................  Blk. 30..................  Offshore--West Delta.    
    LA................  Blk. 53..................  Offshore--West Delta.    
    LA................  Blk. 53 Plat. B..........  Offshore--West Delta.    
    LA................  Blk. 53B--Chevron P.L....  Offshore--West Delta.    
    LA................  Blk. 53B Plat. Gulf        Offshore--West Delta.    
                         Refining Co.                                       
    LA................  Blk. 83..................  Offshore--West Delta.    
    LA................  Alliance Refinery........  Plaquemines.             
    LA................  Empire Terminal..........  Plaquemines.             
    LA................  Main Pass................  Plaquemines.             
    LA................  Main Pass Blk. 69........  Plaquemines.             
    LA................  Ostrica Term.............  Plaquemines.             
    LA................  Pelican Island...........  Plaquemines.             
    LA................  Pilottown................  Plaquemines.             
    LA................  Romere Pass..............  Plaquemines.             
    LA................  South Pass Blk. 60A......  Plaquemines.             
    LA................  South Pass Blk. 27.......  Plaquemines.             
    LA................  Onshore facil............  Plaquemines.             
    LA................  South Pass Blk. 24.......  Plaquemines.             
    LA................  South Pass Blk. 24         Plaquemines.             
                         Onshore Plat.                                      
    LA................  Southwest Pass Sta.......  Plaquemines.             
    LA................  West Delta Blk. 53.......  Plaquemines.             
    LA................  West Delta Rec'vg Sta.--   Plaquemines.             
                         Onshore.                                           
    LA................  Dehli....................  Richland.                
    LA................  Chalmette................  St. Bernard.             
    LA................  Norco (Shell Refinery)...  St. Charles.             
    LA................  St. James................  St. James.               
    LA................  Bayou Sale...............  St. Mary.                
    LA................  Burns Term...............  St. Mary.                
    LA................  Charenton................  St. Mary.                
    LA................  South Bend...............  St. Mary.                
    LA................  Caillou Island...........  Terrebonne.              
    LA................  Caillou Island Fld.......  Terrebonne.              
    LA................  Gibson Term..............  Terrebonne.              
    LA................  Erath....................  Vermilion.               
    
    [[Page 36035]]
    
                                                                            
    LA................  Forked Island............  Vermilion.               
    LA................  Mermentau River Station..  Vermilion.               
    LA................  Anchorage................  West Baton Rouge.        
    LA................  Grand Lake Terminal......  (County unknown.)        
    LA................  Twin Island Terminal.....  (County unknown.)        
    LA................  Lakeside Terminal........  (County unknown.)        
    LA................  Bayou Penchant Terminal..  (County unknown.)        
    LA................  Gibbstown Terminal.......  (County unknown.)        
    LA................  Bluewater Terminal.......  (County unknown.)        
    LA................  Cocodrie Terminal........  (County unknown.)        
    MI................  Bay City.................  Bay.                     
    MI................  Montcalm.................  Carson City.             
    MI................  Lewiston.................  Crawford.                
    MI................  Kalamazoo................  Fulton Takeoff.          
    MI................  Alma.....................  Gratiot                  
    MI................  St. Clair................  Marysville.              
    MI................  Monroe...................  Samaria Sta.             
    MI................  Ingham...................  Stockbridge.             
    MI................  Detroit..................  Wayne.                   
    MI................  Ogemaw...................  West Branch.             
    MS................  Liberty..................  Amite.                   
    MS................  Mayersville..............  Issaquena.               
    MS................  Pascogoula...............  Jackson.                 
    MS................  Soso.....................  Jones.                   
    MS................  Lumberton................  Lamar.                   
    MS................  Purvis...................  Lamar.                   
    MS................  Collierville Station.....  Marshall.                
    MT................  Silver Tip Station.......  Carbon.                  
    MT................  Alzada...................  Carter.                  
    MT................  Richey Station...........  Dawson.                  
    MT................  Baker....................  Fallon.                  
    MT................  Cut Bank Station.........  Glacier.                 
    MT................  Bell Creek Station.......  Powder River.            
    MT................  Poplar Station...........  Roosevelt.               
    MT................  Billings.................  Yellowstone.             
    MT................  Laurel...................  Yellowstone.             
    MT................  Clear Lake Sta...........  (County Unknown).        
    ND................  Fryburg Station..........  Billings.                
    ND................  Tree Top Station.........  Billings.                
    ND................  Lignite..................  Burke.                   
    ND................  Alexander................  McKenzie.                
    ND................  Keene....................  McKenzie.                
    ND................  Killdear.................  Dunn.                    
    ND................  Mandan...................  Morton.                  
    ND................  Tioga....................  Ramberg.                 
    ND................  Ramberg..................  Williams.                
    ND................  Thunderbird Refinery.....  Williams.                
    ND................  Tioga....................  Williams.                
    ND................  Trenton..................  Williams.                
    NM................  Jal......................  Lea.                     
    NM................  Lovington................  Lea.                     
    NM................  Ciniza...................  McKinley.                
    NM................  Bisti Jct................  San Juan.                
    NM................  Navajo Jct...............  San Juan.                
    TX................  Carson Station...........  Archer.                  
    TX................  Holliday.................  Archer.                  
    TX................  Fullerton................  Andrews.                 
    TX................  Buccaneer Term...........  Brazoria.                
    TX................  Sweeney Sta..............  Brazoria.                
    TX................  Mont Belvieu.............  Chambers.                
    TX................  Crane....................  Crane.                   
    TX................  Ranger...................  Eastland.                
    TX................  Caproch Jct..............  Ector.                   
    TX................  Odessa...................  Ector.                   
    TX................  North Cowden.............  Ector.                   
    TX................  Wheeler..................  Ector.                   
    TX................  El Paso..................  El Paso.                 
    TX................  Missouri City Jct........  Fort Bend.               
    TX................  Winnsboro................  Franklin.                
    TX................  Worthham.................  Freestone.               
    TX................  Pearsall Sta.............  Frio.                    
    TX................  Texas City...............  Galveston.               
    TX................  Roberts..................  Glasscock.               
    TX................  Covey Station............  Grayson.                 
    
    [[Page 36036]]
    
                                                                            
    TX................  Bumpus Sta...............  Gregg.                   
    TX................  Kilgore St...............  Gregg.                   
    TX................  Longview.................  Gregg.                   
    TX................  Longview Mid-Valley......  Gregg.                   
    TX................  Sabine Sta. Amoco P.L....  Gregg.                   
    TX................  Mobil Jct................  Hardin.                  
    TX................  Sour Lake................  Hardin.                  
    TX................  Baytown..................  Harris.                  
    TX................  Exxon Jct................  Harris.                  
    TX................  Genoa Jct................  Harris.                  
    TX................  Houston..................  Harris.                  
    TX................  Pasadena.................  Harris.                  
    TX................  Webster..................  Harris.                  
    TX................  Hillsboro................  Hill.                    
    TX................  Big Spring...............  Howard.                  
    TX................  Phillips Hutchinson......  Howard.                  
    TX................  Jacksboro Sta............  Jack.                    
    TX................  Beaumont.................  Jefferson.               
    TX................  Lucas....................  Jefferson.               
    TX................  Nederland................  Jefferson.               
    TX................  Port Arthur..............  Jefferson.               
    TX................  Port Neches..............  Jefferson.               
    TX................  Sabine Pass..............  Jefferson.               
    TX................  Mexia Jct................  Limestone.               
    TX................  Midland..................  Midland.                 
    TX................  Colorado City Station....  Mitchell.                
    TX................  McKee....................  Moore.                   
    TX................  Corsicanna...............  Navarro.                 
    TX................  American Petrofina.......  Nueces.                  
    TX................  Corpus Christi...........  Nueces.                  
    TX................  Harbor Island............  Nueces.                  
    TX................  Beaver Station...........  Ochiltree.               
    TX................  Blk. 474-Inters. Seg.      Offshore--High Island.   
                         III, III-7.                                        
    TX................  Blk. A--571..............  Offshore--High Island.   
    TX................  End Segment II...........  Offshore--High Island.   
    TX................  End Segment III--10......  Offshore--High Island.   
    TX................  End Segment III--10 (Blk.  Offshore--High Island.   
                         547).                                              
    TX................  End Segment III--6.......  Offshore--High Island.   
    TX................  Irran Sta................  Pecos.                   
    TX................  Kemper...................  Reagan.                  
    TX................  Mason Jct................  Reeves.                  
    TX................  Rufugio Sta..............  Rufugio.                 
    TX................  Midway...................  San Patricio.            
    TX................  Eldorado.................  Scheicher.               
    TX................  Basin Station............  Scurry.                  
    TX................  Colorado City............  Scurry.                  
    TX................  Ft. Worth................  Tarrant.                 
    TX................  Merkel...................  Taylor.                  
    TX................  Tye......................  Taylor.                  
    TX................  McCamey..................  Upton.                   
    TX................  Mesa Sta.................  Upton.                   
    TX................  Burkburnett..............  Wichita.                 
    TX................  KMA--Total P.L...........  Wichita.                 
    TX................  Wichita Falls............  Wichita.                 
    TX................  Halley...................  Winkler.                 
    TX................  Hendrick/Hendrick-Wink...  Winkler.                 
    TX................  Keystone.................  Winkler.                 
    TX................  Wink.....................  Winkler.                 
    TX................  South Bend...............  Young.                   
    TX................  Channel View Jct.........  (County Unknown).        
    TX................  Clear Creek Sta..........  (County Unknown).        
    TX................  Oyster Lake Term.........  (County Unknown).        
    TX................  Queens Jct...............  (County Unknown).        
    TX................  Spacek Sta...............  (County Unknown).        
    TX................  Jolly Jct................  (County Unknown).        
    TX................  Nettleton Sta............  (County Unknown).        
    TX................  Trent Sta................  (County Unknown).        
    VT................  North Troy International   Orleans.                 
                         Boundary.                                          
    WA................  Anacortes................  Whatcom.                 
    WA................  Ferndale.................  Whatcom.                 
    WI................  Superior Terminal........  Douglas.                 
    WV................  St. Marys................  Pleasant.                
    UT................  Salt Lake Station........  Davis.                   
    UT................  Wood Cross...............  Davis.                   
    
    [[Page 36037]]
    
                                                                            
    UT................  Salt Lake City...........  Salt Lake.               
    UT................  Aneth....................  San Juan.                
    UT................  Patterson Canyon Jct.....  San Juan.                
    UT................  Bonanza Station..........  Uintah.                  
    UT................  Red Wash Station.........  Uintah.                  
    WY................  Rock River...............  Albany.                  
    WY................  Byron....................  Big Horn.                
    WY................  Central Hilight Sta......  Cambell.                 
    WY................  Rocky Point..............  Cambell.                 
    WY................  Ferris Jct...............  Carbon.                  
    WY................  Big Muddy Sta............  Converse.                
    WY................  Glenrock.................  Converse.                
    WY................  Lightening Flats.........  Crook.                   
    WY................  Pilot Butte Sta..........  Freemont.                
    WY................  Ft. Laramie..............  Goshen.                  
    WY................  Cottonwood Jct...........  Hot Springs.             
    WY................  Crawford Sta.............  Johnson.                 
    WY................  Reno.....................  Johnson.                 
    WY................  Sussex...................  Johnson.                 
    WY................  Cheyenne.................  Laramie.                 
    WY................  Casper...................  Natrona.                 
    WY................  Noches...................  Natrona.                 
    WY................  Lance Creek Station......  Niobrara.                
    WY................  Frannie Sta..............  Park.                    
    WY................  Oregon...................  Park.                    
    WY................  Oregon Basin Sta.........  Park.                    
    WY................  Bridger Station..........  Uinta.                   
    WY................  Chatham Sta..............  Washakie.                
    WY................  Butte Sta................  Weston.                  
    WY................  Mush Creek Jct...........  Weston.                  
    WY................  Osage Station............  Weston.                  
    ------------------------------------------------------------------------
    
    [FR Doc. 97-17312 Filed 7-2-97; 8:45 am]
    BILLING CODE 4310-MR-P
    
    
    

Document Information

Published:
07/03/1997
Department:
Minerals Management Service
Entry Type:
Proposed Rule
Action:
Supplementary proposed rule.
Document Number:
97-17312
Dates:
Comments must be submitted on or before August 4, 1997.
Pages:
36030-36037 (8 pages)
RINs:
1010-AC09: Valuation of Oil From Federal Mineral Leases
RIN Links:
https://www.federalregister.gov/regulations/1010-AC09/valuation-of-oil-from-federal-mineral-leases
PDF File:
97-17312.pdf
CFR: (6)
30 CFR 206.102(a)(5)
30 CFR 206.102(a)(4)
30 CFR 206.102(a)(6)(i)
30 CFR 206.102(c)
30 CFR 206.101
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