[Federal Register Volume 76, Number 124 (Tuesday, June 28, 2011)]
[Notices]
[Pages 37828-37829]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-16125]
-----------------------------------------------------------------------
DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue
[Docket No. ONRR-2011-0014]
Update to Indian Index Zone Price Points
AGENCY: Office of Natural Resources Revenue, Interior.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Office of Natural Resources Revenue (ONRR, formerly
Minerals Management Service's (MMS) Minerals Revenue Management) is
announcing an update to Indian index zone price points that will remove
certain natural gas index prices from the Indian Index Zone
calculation. These changes will impact Oklahoma-Zone 1, Oklahoma-Zone
2, and the Central Rocky Mountain Zone. The ONRR State and Indian
Outreach Program held three Indian Tribal Consultation meetings seeking
input and comments on several changes that could affect the valuation
of mineral production on Indian lands, including this Federal Register
Notice. The meetings took place in Albuquerque, NM on May 19; Denver,
CO on May 26; and Oklahoma City, OK on June 9, 2011. The ONRR did not
receive any negative comments from the various Indian Tribes on this
Federal Register Notice.
DATES: Effective August 1, 2011.
FOR FURTHER INFORMATION CONTACT: For questions on technical issues,
contact Jason Boroos, Economic and Market Analysis, ONRR, telephone
(303) 231-3048; e-mail Jason.Boroos@onrr.gov. For other questions,
contact Armand Southall, Project Management Office-Regulations, ONRR,
telephone (303) 231-3221, or e-mail Armand.Southall@onrr.gov.
SUPPLEMENTARY INFORMATION: The ONRR (formerly MMS) published a final
rule, regarding amendments to gas valuation regulations for Indian
leases, in the Federal Register on August 10, 1999 (64 FR 43506). The
ONRR also published additional information in the Federal Register on
November 30, 1999 (64 FR 66771) and March 8, 2007 (72 FR 10522), which
listed the Index Zones Eligible for the Index-Based Valuation Method
and the acceptable publications and indices. The ONRR has recently
completed an analysis to examine the designated indices contained in
each Index Zone from the standpoint of market liquidity, transparency,
and value and has concluded three index zones need to be revised
pursuant to section 1206.172 (d)(6) of title 30 of the Code of Federal
Register. This document lists those revisions.
The ONRR analyzed the trading volume and number of deals from
January 2005 through August 2010 for indices in all the Index Zones. As
a result, ONRR determined that two indices, CenterPoint West in
Oklahoma-Zones 1 and 2, and Questar in the Central Rocky Mountain Zone
were very thinly traded and unrepresentative of the market. Beginning
with production on the first day of the second month following the
publication date, ONRR will no longer use these indices in the Index
Zone calculation. Additionally, we have removed Northern NG TX, OK, KS,
CenterPointWest (Platts), Enogex, and Northern Natural Mid 10-13, which
are no longer published by either the Platts or Natural Gas
Intelligence. Lessees must value gas production for Oklahoma-Zone 1,
Oklahoma-Zone 2, and the Central Rocky Mountain Zone on the index-based
valuation formula at Sec. 1206.172(d) using the updated list of ONRR
approved publications and indices for the affected Index Zones to
determine the Index Zone price; or lessees may obtain the index-based
values from the ONRR Web site at: http://onrr.gov/SIC/allzones.htm.
The approved publications and index pricing points for the Index
Zones are shown in the following table:
Approved Publications and Index Pricing Points
----------------------------------------------------------------------------------------------------------------
ONRR approved
publications
------------------------
Index zone Platts NGI Index-pricing points
Inside bidweek
FERC survey
----------------------------------------------------------------------------------------------------------------
Oklahoma-Zone 1................................ X .......... ANR Pipeline Co. for Oklahoma.
X .......... Natural Gas Pipeline Co. of America for
Mid-continent.
X .......... Panhandle Eastern Pipe Line Co. for
Texas, Oklahoma (mainline).
X .......... Southern Star Natural Gas Pipeline Inc.
for Texas, Oklahoma, Kansas (formerly
Williams Gas Pipelines Central Inc.
Texas, Oklahoma, Kansas).
.......... X ANR SW.
.......... X NGPL Midcontinent.
.......... X Panhandle Eastern.
.......... X Southern Star.
Oklahoma-Zone 2................................ X .......... ANR Pipeline Co. for Oklahoma.
X .......... Natural Gas Pipeline Co. of America for
Mid-continent.
X .......... Panhandle Eastern Pipe Line Co. for
Texas, Oklahoma (mainline).
X .......... Southern Star Natural Gas Pipeline Inc.
for Texas, Oklahoma, Kansas.
.......... X ANR SW.
.......... X NGPL Midcontinent.
.......... X Panhandle Eastern.
.......... X Southern Star.
Oklahoma-Zone 3................................ X .......... Natural Gas Pipeline Co. of America
Texok.
[[Page 37829]]
X .......... Southern Star Natural Gas Pipeline Inc.
for Texas, Oklahoma, Kansas.
X .......... CenterPoint Energy Gas Transmission
East (formerly Reliant Energy Gas
Transmission Co. East).
.......... X NGPL Texok.
.......... X CenterPoint East.
.......... X Southern Star.
Central Rocky Mountains........................ X .......... Kern River Gas Transmission for
Wyoming.
X .......... Northwest Pipeline Corp. for Rocky
Mountains.
X .......... Colorado Interstate Gas for Rocky
Mountains.
.......... X CIG.
.......... X Kern River.
.......... X Northwest Domestic.
Northern Rocky Mountains....................... X .......... Colorado Interstate Gas for Rocky
Mountains.
.......... X CIG.
San Juan Basin................................. X .......... El Paso Natural Gas Co. San Juan.
X .......... Transwestern Pipeline Co. San Juan
(effective August 1st, 2010).
.......... X El Paso Non-bondad.
.......... X Transwestern San Juan.
----------------------------------------------------------------------------------------------------------------
The ONRR State and Indian Outreach Program completed the three
Indian Tribal Consultation meetings in Albuquerque, NM; Denver, CO; and
Oklahoma City, OK, required under Executive Order 13175, Consultation
and Coordination with Indian Tribal Governments, dated November 9,
2000. The ONRR did not receive any negative comments from the Indian
Tribes.
Dated: June 23, 2011.
Gregory J. Gould,
Director for Office of Natural Resources Revenue.
[FR Doc. 2011-16125 Filed 6-27-11; 8:45 am]
BILLING CODE 4310-MR-P