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[Federal Register Volume 62, Number 65 (Friday, April 4, 1997)]
[Proposed Rules]
[Pages 16121-16122]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-8721]

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DEPARTMENT OF THE INTERIOR
30 CFR Parts 202 and 216

RIN 1010-AC23

Amendments to Standards for Reporting and Paying Royalties on Gas 
and the Gas Analysis Report

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Proposed rulemaking.

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SUMMARY: The Minerals Management Service proposes to amend its 
regulations requiring operators in the Gulf of Mexico Region to report 
gas at the standard conditions of 14.73 psia (instead of 15.025 psia) 
and adjusted to 60 degrees Fahrenheit. This change will make the 
regulations consistent with proposed changes to 30 CFR Part 250.
    MMS also proposes to change the requirement for submitting Form 
MMS-4055, Gas Analysis Report (GAR), from a semiannual basis to 
submitting a GAR when requested by MMS. This reduction of reporting 
will help satisfy the requirements of the Paperwork Reduction Act of 
1995 by eliminating reports that are no longer used.

DATES: Comments must be received on or before May 5, 1997.

ADDRESSES: Comments should be sent to: David S. Guzy, Chief, Rules and 
Procedures Staff, Royalty Management Program, Minerals Management 
Service, P.O. Box 25165, MS 3101, Denver, Colorado 80225-0165; courier 
delivery to Building 85, Denver Federal Center, Denver, Colorado 80225; 
or e-Mail David__G[email protected]. Comments received will be posted on 
the Internet at http://www.rmp.mms.gov.

SUPPLEMENTARY INFORMATION: We are limiting the comment period to 30 
days because this proposal is a minor wording change to the existing 
regulations, and it parallels the proposed offshore rule.
    The intention of the amendments is to keep the regulations in parts 
202 and 216 relating to royalty consistent with those relating to 
offshore minerals management and to reduced reporting requirements on 
the public.
    MMS is seeking comments on the applicable industry standards and 
practices regarding the pressure at which gas should be measured. 
Please comment on whether reporting gas measurement at the standard 
pressure of 14.73 psia is appropriate or whether some other pressure 
should be adopted.
    The principal author of this proposed rulemaking is Lawrence K. 
Barker of the Compliance Verification Division, Lakewood, Colorado.

Regulatory Flexibility Act

    The Department certifies that this proposed rule will not have a 
significant economic effect on a substantial number of small entities 
under the Regulatory Flexibility Act (5 U.S.C. Sec. 601 et seq.). This 
proposed rule would revise RMP's rules for reporting gas at the same 
standards as Offshore Minerals Management's rules.

Executive Order 12630

    The Department certifies that this proposed rule does not represent 
a governmental action capable of interference with constitutionally 
protected property rights. Thus, a Takings Implication Assessment need 
not be prepared under Executive Order 12630, ``Governmental Actions and 
Interference with Constitutionally Protected Property Rights.''

Paperwork Reduction Act

    This proposed rule has been examined under the Paperwork Reduction 
Act of 1995; no new reporting and information collection requirements 
are included. The current information collection requirements have been 
approved by the Office of Management and Budget (OMB) under 44 U.S.C. 
Sec. 3501 et seq., and assigned Clearance Number 1010-0040.

Executive Order 12866

    This proposed rule does not meet the criteria for a significant 
rule requiring review by OMB.

Executive Order 12988

    The Department has certified to OMB that this proposed rule meets 
the applicable reform standards in section 3 (a) and (b)(2).

Unfunded Mandate Reform Act of 1995

    The Department has determined and certifies that this proposed rule 
will not impose a cost of $100 million or more in any given year on 
local, tribal, State governments, or the private sector.

National Environmental Policy Act of 1969

    We have determined that this proposed rulemaking is not a major 
Federal action significantly affecting the quality of the human 
environment, and a detailed statement under section 192(2)(c) of the 
National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(c)) is not 
required.

List of Subjects

30 CFR Part 202

    Coal, Continental shelf, Geothermal energy, Government contracts, 
Indian

[[Page 16122]]

lands, Mineral royalties, Natural gas, Petroleum, Public lands-mineral 
resources, Reporting and recordkeeping requirements.

30 CFR Part 216

    Coal, Continental shelf, Geothermal energy, Government contracts, 
Indian lands, Mineral royalties, Natural gas, Penalties, Petroleum, 
Public lands-mineral resources, Reporting and recordkeeping 
requirements.

    Dated: March 27, 1997.
Bob Armstrong,
Assistant Secretary--Land and Minerals Management.
    For the reasons set out in the preamble, 30 CFR Parts 202 and 216 
are proposed to be amended as follows:

PART 202--ROYALTIES

    1. The authority citation for part 202 continues to read as 
follows:

    Authority: 5 U.S.C. 301 et seq.; 25 U.S.C. 396 et seq., 396a et 
seq., 2101 et seq.; 30 U.S.C. 181 et seq., 351 et seq., 1001 et 
seq., 1701 et seq.; 31 U.S.C. 9701; 43 U.S.C. 1301 et seq., 1331 et 
seq., 1801 et seq.

Subpart D--Federal and Indian Gas

    2. Section 202.152(a)(1) is revised to read as follows:

Sec. 202.152  Standards for reporting and paying royalties on gas.

    (a)(1) If you are responsible for reporting production or 
royalties, you must:
    (A) Report gas volumes and Btu heating values, if applicable, under 
the same degree of water saturation as stated in your sales contract;
    (B) Report gas volumes in units of 1,000 cubic feet (mcf); and
    (C) Report gas volumes and Btu heating value at a standard pressure 
base of 14.73 psia and a standard temperature base of 60 degrees 
Fahrenheit.
* * * * *

PART 216--PRODUCTION ACCOUNTING

    1. The authority citation for part 216 continues to read as 
follows:

    Authority: 5 U.S.C. 301 et seq.; 25 U.S.C. 396 et seq., 396a et 
seq., 2101 et seq.; 30 U.S.C. 181 et seq., 351 et seq., 1001 et 
seq., 1701 et seq.; 31 U.S.C. 3716, 3720A, 9701; 43 U.S.C. 1301 et 
seq., 1331 et seq., 1801 et seq.

Subpart B--Oil and Gas, General

    2. Section 216.54 is revised to read as follows:

Sec. 216.54  Gas Analysis Report.

    When requested by MMS, any operator must file a Gas Analysis Report 
(GAR) (Form MMS-4055) for each sale or transfer meter. The form must 
contain accurate and detailed gas analysis information. This 
requirement applies to offshore, onshore, or Indian leases.
    (a) MMS may request a GAR when you sell gas or transfer gas for 
processing before the point of royalty computation.
    (b) When MMS first requests this report, the report is due within 
30 days. If MMS requests subsequent reports, they will be due no later 
than 45 days after the month covered by the report.

[FR Doc. 97-8721 Filed 4-3-97; 8:45 am]
BILLING CODE 4310-MR-P
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