80 FR 7994 - Consolidated Federal Oil & Gas and Federal & Indian Coal Valuation Reform

DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue

Federal Register Volume 80, Issue 30 (February 13, 2015)

The Office of Natural Resources Revenue (ONRR) published a notice of proposed rulemaking in the Federal Register on January 6, 2015, (80 FR 608). ONRR invited the public to submit written comments by March 9, 2015. ONRR is granting a 60-day extension to the comment period in response to stakeholder requests.

[Federal Register Volume 80, Number 30 (Friday, February 13, 2015)]
[Proposed Rules]
[Page 7994]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-02997]


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DEPARTMENT OF THE INTERIOR

Office of Natural Resources Revenue

30 CFR Parts 1202 and 1206

[Docket No. ONRR-2012-0004; DS63610000 DR2PS0000.CH7000 156D0102R2]
RIN 1012-AA13


Consolidated Federal Oil & Gas and Federal & Indian Coal 
Valuation Reform

AGENCY: Office of Natural Resources Revenue, Interior.

ACTION: Proposed rule; notice of extension of comment period.

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SUMMARY: The Office of Natural Resources Revenue (ONRR) published a 
notice of proposed rulemaking in the Federal Register on January 6, 
2015, (80 FR 608). ONRR invited the public to submit written comments 
by March 9, 2015. ONRR is granting a 60-day extension to the comment 
period in response to stakeholder requests.

DATES: You must submit comments on or before May 8, 2015.

ADDRESSES: You may submit comments to ONRR on the proposed rulemaking, 
as follows: (1) Electronically go to www.regulations.gov and enter 
``ONRR-2012-0004'' in ``Enter Keyword or ID,'' then click ``Search;'' 
(2) mail comments to Armand Southall, Regulatory Specialist, P.O. Box 
25165, MS 61030A, Denver, Colorado 80225; or (3) hand-carry comments, 
or use an overnight courier service, to ONRR, Building 85, Room A-614, 
Denver Federal Center, West 6th Ave. and Kipling St., Denver, Colorado 
80225. Please refer to the Regulation Identifier Number (RIN) 1012-AA13 
in your comments. ONRR will post all comments.

FOR FURTHER INFORMATION CONTACT: Armand Southall, ONRR, telephone (303) 
231-3221 or email [email protected].

SUPPLEMENTARY INFORMATION: The current Federal oil valuation 
regulations have been in effect since 2000, with a subsequent amendment 
relating, primarily, to the use of index pricing in some circumstances. 
The current Federal gas valuation regulations have been in effect since 
March 1, 1988, with various subsequent amendments relating, primarily, 
to the transportation allowance provisions. The current Federal and 
Indian coal valuation regulations have been in effect since March 1, 
1989, with minor subsequent amendments relating, primarily, to the 
Federal black lung excise taxes, abandoned mine lands fees, State and 
local severance taxes, and washing and transportation allowance 
provisions. In the years since we wrote these regulations, the 
Secretary of the Interior's (Secretary) responsibility to determine the 
royalty value of minerals produced has not changed, but the industry 
and marketplace have changed dramatically. ONRR proposes these 
amendments to our valuation regulations to permit the Secretary to 
discharge the Department of the Interior's (Department) royalty 
valuation responsibility in an environment of continuing and 
accelerating change in the industry and in the marketplace. The 
Secretary's responsibilities regarding oil and gas production from 
Federal leases and coal production from Federal and Indian leases 
require the development of flexible valuation methodologies that 
lessees can accurately comply with in a timely manner.
    To increase the effectiveness and efficiency of our rules, ONRR is 
proposing proactive and innovative changes. We intend for this proposed 
rulemaking to provide regulations that (1) offer greater simplicity, 
certainty, clarity, and consistency in product valuation for mineral 
lessees and mineral revenue recipients; (2) are more understandable; 
(3) decrease industry's cost of compliance and ONRR's cost to ensure 
industry compliance; and (4) provide early certainty to industry and to 
ONRR that companies have paid every dollar due. Therefore, ONRR 
proposes to amend the current regulations at 30 CFR part 1202, subpart 
F, and part 1206, subparts C, D, F, and J, governing the valuation, for 
royalty purposes, of oil, gas, and coal produced from Federal leases 
and coal produced from Indian leases.
    ONRR received requests for an extension to the comment deadline for 
this proposed rule. This action extends the comment period until May 8, 
2015. ONRR believes that this extension allows adequate time for 
interested parties to submit comments. ONRR will review and carefully 
consider all comments that we receive on the proposed rule.

     Dated: February 6, 2015.
Gregory J. Gould,
Director, Office of Natural Resources Revenue.
[FR Doc. 2015-02997 Filed 2-12-15; 8:45 am]
BILLING CODE 4335-30-P