Royalty management: Correction,

[Federal Register: November 22, 2000 (Volume 65, Number 226)]

[Corrections]

[Page 70386-70387]

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

[DOCID:fr22no00-115]

DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Part 203

RIN 1010-AC71

Relief or Reduction in Royalty Rates--Deep Water Royalty Relief for OCS Oil and Gas Leases Issued After 2000

Correction

In proposed rule document 00-29372beginning on page 69259 in the issue of Thursday, November 16, 2000, make the following corrections:

1. On page 69263, the table headings are corrected to read as follows:

Proposed Modifications to DWRR Applications

Current and Proposed changes continuing program ------------------- Element

-------------------- Applies to post- Applies to pre-Act 2000 deep water leases

leases

Eligibility (Central, Western, Leases in 200m or Leases in 200m or and western part of Eastern more water depth more water depth Gulf of Mexico).

issued before issued after 1996.

2000. Royalty-free production can come Any production Only production from.

from the field from resources until cumulative identified in the recovery volume application until equals the

cumulative suspension volume. recovery equals the suspension volume Minimum suspension volume for For fields that For development non-producing leases.

did not produce projects, matches before the Act, volumes matches eligible designated in lease suspension sale and lease volumes (17.5, documents for 52.5, 87.5 MMBOE) various water in equivalent depths of 200m or water depths. greater plus 10 percent of reserves. Credit for sunk costs in

For fields with For development application.

pre-Act leases projects, after- that did not

tax cost of only produce before the discovery the application, well, except when after-tax costs the application of and after

involves a pre- discovery well Act lease. used in qualification. Threshold oil and gas price Statute sets

Lease terms set levels for lifting relief.

threshold price threshold price for light sweet for light sweet crude oil and crude oil and natural gas.

natural gas.

2. On page 69264, the table headings are corrected to read as follows:

[[Page 70387]]

Proposed Modifications to DWRR Applications

Current and Proposed changes discontinuing ------------------- program Element

-------------------- Applies to pre-Act Applies to pre-Act and post-2000 deep leases

water leases

Discount rate used in evaluation Same rate used on Use 10% on viability and viability test, profitability applicant chooses tests, applicant rate between 10% chooses between and 15% for 10% and 15%.

profitability test. Redetermination of field

Available for new Available anytime qualification or volume by MMS. well or seismic after relief data, 25% lower relinquished or prices, or 20% withdrawn. higher cost.

Otherwise, for new well or seismic data, 25% lower prices, 20% higher cost, or more efficient development system. Deadline for starting

Within 1 year of Within 18 months fabrication.

approval,

of approval, extendable for up extendable for up to 1 year.

to 6 months. Correction for overestimating Retain only half Retain only half cost by 20% or more.

of suspension or smaller of volume granted. granted suspension volume or most likely resource size. Minimum suspension volume for None.............. 10 percent expansion project.

reserves. Credit for sunk costs in

None.............. After-tax cost of application for expansion

the discovery project.

well.

Sec. 203.74 [Corrected]

3. On page 69273, in the second column, in the section heading, ``Sec. 203.70'' should read ``Sec. 203.74''.

[FR Doc. C0-29372Filed11-21-00; 8:45 am]

BILLING CODE 1505-01-D