83 FR 44669 - Market Centers for Use in Applying Royalty Valuation Regulations for Federal Oil

DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue

Federal Register Volume 83, Issue 170 (August 31, 2018)

The Office of Natural Resources Revenue (ONRR) is inviting comments on proposed modifications to the list of existing market centers that royalty payors use to value oil produced from Federal leases. This proposed modification is applicable to those valuing Federal oil production using NYMEX prices or ANS spot prices.

[Federal Register Volume 83, Number 170 (Friday, August 31, 2018)]
[Notices]
[Pages 44669-44670]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-19011]


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DEPARTMENT OF THE INTERIOR

Office of Natural Resources Revenue

[Docket No. ONRR-2018-0002; DS63644000 DR2000000.CH7000 189D0102R2]
RIN 1010-AC09


Market Centers for Use in Applying Royalty Valuation Regulations 
for Federal Oil

AGENCY: Office of the Secretary, Office of Natural Resources Revenue, 
Interior.

ACTION: Notice of proposed modifications; request for comments.

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SUMMARY: The Office of Natural Resources Revenue (ONRR) is inviting 
comments on proposed modifications to the list of existing market 
centers that royalty payors use to value oil produced from Federal 
leases. This proposed modification is applicable to those valuing 
Federal oil production using NYMEX prices or ANS spot prices.

DATES: You must submit your written comments on or before October 1, 
2018.

ADDRESSES: You may submit comments on this notice to ONRR by using one 
of the following three methods. Please reference ``ONRR-2018-0002'' in 
your comments.
     Electronically go to http://www.regulations.gov. In the 
entry titled ``Enter Keyword or ID,'' enter ``ONRR-2018-0002,'' then 
click ``Search.'' Follow the instructions to submit public comments. 
ONRR will post all comments.
     Mail comments to Mr. Armand Southall, Regulatory 
Specialist, ONRR, P.O. Box 25165, MS 64400B, Denver, Colorado 80225-
0165.
     Hand-carry or mail comments using an overnight courier 
service to ONRR. Our courier address is Building 85, Entrance N-1, 
Denver Federal Center, West 6th Avenue and Kipling Street, Denver, 
Colorado 80225. Visitor parking is available in the north parking lot 
near Entrance N-1, which is the only

[[Page 44670]]

entrance on the north side of Building 85. To request service, please 
use the courtesy phone and call Janet Giron at (303) 231-3088.

FOR FURTHER INFORMATION CONTACT: For questions on technical issues, 
contact Mr. Robert Sudar, Market and Spatial Analytics, CEVA, ONRR, 
telephone (303) 231-3511 or email to [email protected]. For other 
questions, contact Mr. Armand Southall, telephone (303) 231-3221, or 
email to [email protected].

SUPPLEMENTARY INFORMATION: ONRR publishes a list of market centers for 
use in Federal oil valuation calculations under 30 CFR 1206.112. This 
regulation applies to payors who are applying adjustments and 
transportation allowances when Federal oil production is valued using 
NYMEX prices or ANS spot prices. Under Sec.  1206.113, ONRR will 
monitor market activity and, if necessary, add to or modify the list of 
market centers. ONRR last published the list of market centers in the 
Federal Register on June 20, 2000 (65 FR 38299). Under Sec.  1206.113, 
ONRR will consider the following factors and conditions in specifying 
market centers:
    1. Points where ONRR-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.
    ONRR is seeking comments on its proposal to modify the list of 
market centers and the oil types at each location as listed below:

------------------------------------------------------------------------
          Market center location                      Oil types
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                       Proposed New Market Centers
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Nederland, Texas..........................  Southern Green Canyon.
Clovelly, Louisiana.......................  Thunder Horse.
Houston, Texas............................  Light Sweet.
Clearbrook, Minnesota.....................  Bakken Blend.
Guernsey, Wyoming.........................  Bakken Blend.
Guernsey, Wyoming.........................  Wyoming Sweet.
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                  Existing Market Centers to be removed
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San Francisco, California.................  Alaska North Slope.
Saint James, Louisiana....................  Eugene Island.
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               Existing Market Centers to remain unchanged
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Cushing, Oklahoma.........................  West Texas Intermediate.
Midland, Texas............................  West Texas Intermediate.
Midland, Texas............................  West Texas Sour.
Saint James, Louisiana....................  Light Louisiana Sweet.
Saint James, Louisiana....................  Bonito Sour.
Empire, Louisiana.........................  Heavy Louisiana Sweet.
Clovelly, Louisiana.......................  MARS Blend.
Houma, Louisiana..........................  Poseidon.
Multiple locations, U.S. West Coast.......  Alaska North Slope.
------------------------------------------------------------------------

    For supplementary information on these proposed market center 
locations, please visit https://www.onrr.gov/Valuation/pdfdocs/Crude-Oil-Market-Centers-Map.pdf.
    Before making this proposal final, ONRR seeks comments. We are 
especially interested in comments from Industry and others 
knowledgeable in crude oil marketing and transportation that addresses 
the following issues: (1) Whether ONRR should reconsider the proposed 
new market centers based on the five factors specified in Sec.  
1206.113; (2) whether ONRR should reconsider removing the market 
centers proposed for removal based on the five factors specified in 
Sec.  1206.113; (3) whether ONRR should reconsider modifying or 
removing the market centers proposed to remain unchanged based on the 
five factors specified in Sec.  1206.113; and (4) whether ONRR should 
consider adding any other market centers based on the five factors 
specified in Sec.  1206.113.
    ONRR will post all comments, including names and addresses of 
respondents at http://www.regulations.gov. We will include or summarize 
each comment when finalizing any modifications to the market centers 
list. Before including your address, phone number, email address, or 
other personal identifying information in your comment, you should be 
aware that your entire comment--including your personal identifying 
information--may be made publicly available at any time. While you can 
ask us in your comment to withhold your personal identifying 
information from public review, we cannot guarantee that we will be 
able to do so.

    Authorities: 30 CFR 1206.113.

Gregory J. Gould,
Director for Office of Natural Resources Revenue.
[FR Doc. 2018-19011 Filed 8-30-18; 8:45 am]
 BILLING CODE 4335-30-P