65FR38299B Market Centers for Use in Applying Revised Royalty Valuation Regulations for Federal Oil
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Posting-number: Volume 65, Issue 119, Page 38299B
[Federal Register: June 20, 2000 (Volume 65, Number 119)]
[Notices]
[Page 38299-38300]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20jn00-89]
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DEPARTMENT OF THE INTERIOR
Minerals Management Service
RIN 1010-AC09
Market Centers for Use in Applying Revised Royalty Valuation
Regulations for Federal Oil
AGENCY: Minerals Management Service, Interior.
ACTION: Notice of market centers.
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SUMMARY: As required by revised Federal oil valuation regulations, the
[[Page 38300]]
Minerals Management Service (MMS) has identified the market centers
that royalty payors should use to value oil produced from Federal
leases.
EFFECTIVE DATE: June 1, 2000.
ADDRESSES: See for further information contact section below.
FOR FURTHER INFORMATION CONTACT: David Domagala, Royalty Valuation
Division, Royalty Management Program, Minerals Management Service, P.O.
Box 25165, Mail Stop 3151, Denver, Colorado 80225, telephone number
(303) 275-7255 or fax number (303) 275-7227.
SUPPLEMENTARY INFORMATION: MMS published its revised regulations
establishing oil value for royalty due on Federal leases in the Federal
Register on March 15, 2000 (65 FR 14022), effective June 1, 2000. The
primary changes in the revised regulations affect Federal lessees who
value oil not sold at arm's length. The rule provides that the primary
means of valuing crude oil not sold at arm's length is an adjusted spot
price, except in the Rocky Mountain Region, where use of an adjusted
spot price for valuation purposes is the third valuation benchmark (30
CFR 206.103(b)(4)) (65 FR 14091). The applicable spot price is the one
for the oil most closely representing the lease production in terms of
physical proximity and quality parameters.
On June 13, 2000, MMS published a list of approved publications
from which a lessee may select the appropriate spot price (65 FR
37043). These publications provide spot prices for various types of
oils at specific market centers.
Under Sec. 206.113 of the final rule for establishing oil value for
royalty due on Federal leases (65 FR 14095), MMS must also identify and
publish a list of appropriate market centers using the following
factors and conditions:
(1) Points where MMS-approved publications publish prices useful
for index purposes;
(2) Markets served;
(3) Input from industry and others knowledgeable in crude oil
marketing and transportation;
(4) Simplification; and
(5) Other relevant matters.
These market centers and the oil types at each location are listed
below:
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Market center location Oil types at that location
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Cushing, Oklahoma......................... West Texas Intermediate.
Midland, Texas............................ West Texas Intermediate.
West Texas Sour.
Saint James, Louisiana.................... Light Louisiana Sweet.
Eugene Island.
Bonito Sour.
Empire, Louisiana......................... Heavy Louisiana Sweet.
Clovelly, Louisiana....................... Mars Blend.
Houma, Louisiana.......................... Poseidon.
Los Angeles, California................... Alaska North Slope.
San Francisco, California
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MMS will monitor market activity and, if necessary, add to or
modify the list of market centers and will publish such modifications
in the Federal Register.
Dated: June 15, 2000
R. Dale Fazio,
Acting Associate Director for Royalty Management.
[FR Doc. 00-15498 Filed 6-19-00; 8:45 am]
BILLING CODE 4310-MR-P