Oil and gas leases: Wyoming; crude oil bids,

[Federal Register: July 22, 1999 (Volume 64, Number 140)]

[Notices]

[Page 39527-39528]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr22jy99-96]

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.

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 (202)208-3918; e-mail Bonn.Macy@mms.gov. 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 (703) 787-1009; e-mail Betty.Estey@mms.gov. 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 (307) 777-6643; Fax: (307) 777-5400; Email: hkemp@missc.state.wy.us.

[[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.

‹bullet› List of specific properties;

‹bullet› For each property--tract allocations, royalty rate(s), average daily royalty volume, quality, current transporter, and operator;

‹bullet› Bid basis;

‹bullet› Reporting requirements;

‹bullet› Terms and conditions; and

‹bullet› 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. 99-18653Filed7-21-99; 8:45 am]

BILLING CODE 4310-MR-U