[Federal Register Volume 64, Number 153 (Tuesday, August 10, 1999)]
[Rules and Regulations]
[Pages 43288-43289]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-20470]
[[Page 43288]]
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DEPARTMENT OF THE INTERIOR
Minerals Management Service
30 CFR Part 206
RIN 1010-AC00
Revision of Valuation Regulations Governing Oil and Gas
Transportation and Processing Allowances, and Coal Washing and
Transportation Allowances
AGENCY: Minerals Management Service, Interior.
ACTION: Correcting amendments.
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SUMMARY: This document contains corrections to final regulations
concerning oil and gas and coal allowances on Federal and Indian leases
which were published in the Federal Register on Monday, February 12,
1996, (61 FR 5447).
DATES: Effective on March 1, 1996.
FOR FURTHER INFORMATION CONTACT: David S. Guzy, Chief, Rules and
Procedures Staff, Royalty Management Program, Minerals Management
Service, telephone (303) 231-3432, fax (303) 231-3194, e-Mail
David__Guzy@smtp.mms.gov.
SUPPLEMENTARY INFORMATION:
Background
The Minerals Management Service (MMS) is making corrections to a
final rule published in the Federal Register on February 12, 1996 (61
FR 5447). This final rule, effective March 1, 1996, amended 30 CFR part
206-PRODUCT VALUATION regulations for oil and gas transportation and
processing allowances for production from Federal leases. It also
amended the regulations for coal washing and transportation allowances
for production from Federal leases. The final rule did not change the
existing regulations applicable to Indian leases.
Need for Correction
As published, the final regulations in 30 CFR part 206 contain
errors which may prove to be misleading and need to be clarified.
List of Subjects in 30 CFR Part 206
Coal, Continental Shelf, Geothermal energy, Government contracts,
Indian lands, Mineral royalties, Natural gas, Petroleum, Public lands--
mineral resources, Reporting and recordkeeping requirements.
Accordingly, 30 CFR part 206 is corrected by making the following
correcting amendments:
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 B--Indian Oil
Sec. 206.51 Definitions [Corrected]
2. In Sec. 206.51, definition of gross proceeds, remove the word
``terminating'' in the third sentence and add, in its place, the word
``terminaling.''
3. In Sec. 206.51, definition of tar sands, remove the word
``either,'' the comma after the word ``temperature,'' and the phrase
``or contains quarrying.'' End the sentence with a period.
Sec. 206.53 [Corrected]
4. In Sec. 206.53(c), remove the word ``proved'' in the second
sentence and add, in its place, the word ``approved.''
Subpart D--Federal Gas
Sec. 206.151 [Corrected]
5. In Sec. 206.151, definition of gross proceeds, remove the next-
to-last word in the first sentence, ``oil,'' and add, in its place, the
words ``gas, residue gas, and gas plant products.'' Also, remove the
third sentence.
Sec. 206.156 [Corrected]
6. In Sec. 206.156(d), remove the word ``oil'' in the last
sentence, and add, in its place, the words ``unprocessed gas, residue
gas, and gas plant products.''
Sec. 206.158 [Corrected]
7. In Sec. 206.158(e), remove the word ``transportation'' in the
second sentence and add, in its place, the word ``processing.'' Also
remove the word ``oil'' in the second sentence and add, in its place,
the words ``gas plant products.''
8. In Sec. 206.159 paragraph (a)(1)(i), remove the word
``transportation'' in the last sentence and add, in its place, the word
``processing.'' In paragraph (e)(2), remove the word ``transporting''
and add, in its place, the word ``processing.''
9. In the last section in Subpart D, Sec. 206.106, correct the
section number to read ``206.160.''
Subpart E--Indian Gas
Sec. 206.172 [Corrected]
10. In Sec. 206.172(h), remove both instances of the words
``pursuant to'' and add, in their place, the word ``under.''
Sec. 206.173 [Corrected]
11. In Sec. 206.173(a)(2), remove the word ``section'' immediately
before the words ``of this part'' and add, in its place,
``Sec. 206.52.''
Sec. 206.174 [Corrected]
12. In Sec. 206.174(d)(2), remove the reference ``202.171(c)'' in
the first sentence, and add, in its place, ``202.151(b) and (c).''
Sec. 206.176 [Corrected]
13. In Sec. 206.176(c)(3), remove the last sentence and add, in its
place, the sentence ``Under no circumstances will the value for royalty
purposes be reduced to zero.''
Sec. 206.177 [Corrected]
14. In Sec. 206.177 paragraph (b)(3)(ii), first sentence, remove
the letter ``(i)'' after the word ``paragraph'' and add, in its place,
the words ``(b)(3)(i) of this section.'' In paragraph (d)(1), first
sentence, remove the word ``processing,'' and add, in its place, the
word ``transportation.''
Subpart F--Federal Coal
Sec. 206.251 [Corrected]
15. In Sec. 206.251, definition of like-quality coal, add the word
``that'' before the word ``has.''
Sec. 206.258 [Corrected]
16. In Sec. 206.258(a), remove the second sentence and add, in its
place, the sentence ``Under no circumstances will the authorized
washing allowance and the transportation allowance reduce the value for
royalty purposes to zero.''
Sec. 206.259 [Corrected]
17. In Sec. 206.259(c)(2)(ii), second sentence, remove the word
``processing'' and add, in its place, the word ``washing.''
18. In Sec. 206.261, revise paragraph (b) to read as follows:
Sec. 206.261 Transportation allowances--general.
* * * * *
(b) Under no circumstances will the authorized washing allowance
and the transportation allowance reduce the value for royalty purposes
to zero.
* * * * *
19. In Sec. 206.262, remove reserved paragraph (c)(2)(iv),
redesignate paragraph (c)(2)(v) as paragraph (c)(2)(iv), add paragraphs
(d)(2) and
[[Page 43289]]
(d)(3), and revise paragraph (e)(2). The added and revised text reads
as follows:
Sec. 206.262 Determination of transportation allowances.
* * * * *
(d) * * *
(2) If a lessee erroneously reports a transportation allowance
which results in an underpayment of royalties, interest shall be paid
on the amount of that underpayment.
(3) Interest required to be paid by this section shall be
determined in accordance with 30 CFR 218.202.
(e) * * *
(2) The lessee must submit a corrected Form MMS-2014 to reflect
actual costs, together with any payments, in accordance with
instructions provided by MMS.
* * * * *
Sec. 206.263 [Corrected]
20. In Sec. 206.263(b), remove the words ``pursuant to'' and add,
in its place, the word ``under.'' Also, remove the word ``in'' and add,
in its place, the word ``is.''
Sec. 206.264 [Corrected]
21. In Sec. 206.264, remove the first word ``In'' and add, in its
place the word ``If.''
Subpart J--Indian Coal
Sec. 206.451 [Corrected]
22. In Sec. 206.451, definition of like-quality coal, add the word
``that'' before the word ``has.''
23. In Sec. 206.457, revise the last sentence of paragraph (a) to
read as follows:
Sec. 206.457 Washing allowances--general.
(a) * * * Under no circumstances will the authorized washing
allowance and the transportation allowance reduce the value for royalty
purposes to zero.
* * * * *
24. In Sec. 206.460 revise paragraph (b) to read as follows:
Sec. 206.460 Transportation allowances--general.
* * * * *
(b) Under no circumstances will the authorized washing allowance
and the transportation allowance reduce the value for royalty purposes
to zero.
* * * * *
Sec. 206.461 [Corrected]
25. In Sec. 206.461(e)(1), last sentence, add the word ``entitled''
before the word ``to.''
Sec. 206.462 [Corrected]
26. In Sec. 206.462 paragraph (b), remove the word ``in'' and add,
in its place, the word ``is.'' In paragraph (c), remove the section
number ``206.251'' and add, in its place, ``206.451.''
Sec. 206.463 [Corrected]
27. In Sec. 206.463, remove the first word ``In'' and add, in its
place, the word ``If.''
Sec. 206.464 [Corrected]
28. In Sec. 206.464(a), remove the section number ``206.465'' in
the sentence and add, in its place, ``206.456.''
Dated: August 3, 1999.
Lucy Querques Denett,
Associate Director for Royalty Management.
[FR Doc. 99-20470 Filed 8-9-99; 8:45 am]
BILLING CODE 4310-MR-P
