Federal Register / Vol. 63, No. 80 / Monday, April 27, 1998 / Notices 20645

relinquished have been re-leased. Thus,

leases that may be uneconomic at

today’s oil and gas prices can be released and developed later as economic,

geologic, or technological conditions

changes. In this case, allowing market

conditions and future discoveries to

determine the best time to explore and

develop tracts is preferable to offering

financial incentives for current

development.

In addition, we considered other

issues that would have impacts on

implementing a sound program of

royalty relief for nonproducing leases.

Auction and Tract Evaluation Process

Impacts

Reducing royalties on nonproducing

leases could distort the auction process

because some losing bidders may have

submitted higher bids had they known

that lease royalty rates could be

reduced. Also, the program would

complicate fair market value

determinations because lease stipulated

royalty rates could change before the

start of production.

Workload Impacts

The potential workload associated

with a relief program could become

burdensome and drain MMS resources

from other important jobs. Even a

program of categorical relief (i.e., one

based on predetermined qualifying

criteria such as drill depth or pressure)

could create a significant new workload.

Although certain criteria may have

substantial impact on project costs,

many factors ultimately determine a

project’s economic viability. The effort

to develop comprehensive qualifying

criteria and keep them up to date may

actually create more of a workload for

MMS than accepting applications on a

case-by-case basis.

Revenue Impacts

We considered the proposal to offer

certain relinquished tracts at a lower

royalty rate. However, the

relinquishment of a tract, even if it is on

the indicated hydrocarbons list, and its

failure to be re-leased at the next lease

sale, are not absolute determinants of its

current or future economic viability.

Tracts in the Central and Western Gulf

may be offered time and again. As noted

earlier, tracts that are uneconomic at

one time may be re-leased and

developed with changes in oil and gas

prices or advances in technology that

reduce drilling and production costs or

enhance ultimate resource recovery. In

these cases, the government would

receive royalties at the regular royalty

rate plus any bonus received on releasing.

In summary, the economic climate for

the oil and gas industry in the Gulf of

Mexico does not warrant taking action

at this time. We will continue to

monitor activities in the Central and

Western Gulf and will move to exercise

the authority if changed conditions

require it.

We welcome all comments on issues

related to this Notice and will consider

them in determining the nature and

timing of future actions.

Dated: April 21, 1998.

Walter Cruickshank,

Associate Director for Policy and

Management Improvement.

[FR Doc. 98–11012 Filed 4–24–98; 8:45 am]

BILLING CODE 4310–MR–M

DEPARTMENT OF THE INTERIOR

Minerals Management Service

Outer Continental Shelf, Western Gulf

of Mexico, Oil and Gas Lease Sale 171

AGENCY: Minerals Management Service,

Interior.

ACTION: Availability of the proposed

notice of sale.

Gulf of Mexico Outer Continental

Shelf (OCS); Notice of Availability of

the Proposed Notice of Sale for

Proposed Oil and Gas Lease Sale 171 in

the Western Gulf of Mexico. This Notice

of Availability is published pursuant to

30 CFR 256.29(c), as a matter of

information to the public.

With regard to oil and gas leasing on

the OCS, the Secretary of the Interior,

pursuant to section 19 of the OCS Lands

Act, as amended, provides the affected

States the opportunity to review the

proposed Notice of Sale. The proposed

Notice sets forth the proposed terms and

conditions of the sale, including

minimum bids, royalty rates, and

rentals.

The proposed Notice of Sale for

proposed Sale 171 may be obtained by

written request to the Public

Information Unit, Gulf of Mexico

Region, Minerals Management Service,

1201 Elmwood Park Boulevard, New

Orleans, Louisiana 70123–2394, or by

telephone at (504) 736–2529.

The final Notice of Sale will be

published in the Federal Register at

least 30 days prior to the date of bid

opening. Bid opening is currently

scheduled for August 1998.

Dated: April 20, 1998.

Cynthia Quarterman,

Director, Minerals Management Service.

[FR Doc. 98–11019 Filed 4–24–98; 8:45 am]

BILLING CODE 4310–MR–M

DEPARTMENT OF THE INTERIOR

National Park Service

Buffalo National River, Arkansas;

Concession Contract Negotiations

SUMMARY: Public notice is hereby given

that the National Park Service proposes

to award a concession contract

authorizing the continued overnight

accommodations, food service facilities

and vending machine services for the

public at Buffalo National River for a

period of five (5) years from January 1,

1999, through December 31, 2003.

EFFECTIVE DATE: June 26, 1998.

ADDRESSES: Interested parties should

contact National Park Service, Buffalo

National River, P.O. Box 1173, Harrison,

Arkansas 72602–1173, or phone (870)

741–5443 to obtain a copy of the

prospectus describing the requirements

of the proposed contract.

SUPPLEMENTARY INFORMATION: This

contract renewal has been determined to

be categorically excluded from the

procedural provisions of the National

Environmental Policy Act and no

environmental document will be

prepared.

The existing concessioner has

performed its obligations to the

satisfaction of the Secretary under an

existing contract which will expire by

limitation of time on December 31,

1998, and therefore pursuant to the

provisions of Section 5 of the Act of

October 9, 1965 (79 Stat, 969; 16 U.S.C.

20, et seq.), is entitled to be given

preference in the renewal of the contract

and in the negotiation of a new

proposed contract, providing that the

existing concessioner submits a

responsive offer (a timely offer which

meets the terms and conditions of the

Prospectus). This means that the

contract will be awarded to the party

submitting the best offer, provided that

if the best offer was not submitted by

the existing concessioner, then the

existing concessioner will be afforded

the opportunity to match the best offer.

If the existing concessioner agrees to

match the best offer, then the contract

will be awarded to the existing

concessioner. If the existing

concessioner does not submit a

responsive offer, the right of preference

in renewal shall be considered to have

been waived, and the contract will then

be awarded to the party that has

submitted the best responsive offer.

The Secretary of the Interior will

consider and evaluate all proposals

received as a result of this notice. Any

proposal, including that of the existing

concessioner, must be received by the