3084 Federal Register / Vol. 60, No. 9 / Friday, January 13, 1995 / Rules and Regulations

be in pay status on the valuation date,

the immediate annuity rate shall apply.

(2) For benefits for which the deferral

period is y years (y is an integer and 0

< y ≤ n1), interest rate i1 shall apply from

the valuation date for a period of y

years; thereafter the immediate annuity

rate shall apply.

(3) For benefits for which the deferral

period is y years (y is an integer and n1

< y ≤ n1 + n2), interest rate i2 shall apply

from the valuation date for a period of

y ¥ n1 years, interest rate i1 shall apply

for the following n1 years; thereafter the

immediate annuity rate shall apply.

(4) For benefits for which the deferral

period is y years (y is an integer and y

> n1 + n2), interest rate i3 shall apply

from the valuation date for a period of

y ¥ n1 ¥ n2 years, interest rate i2 shall

apply for the following n2 years, interest

rate i1 shall apply for the following n1

years; thereafter the immediate annuity

rate shall apply.

TABLE I

[Lump Sum Valuations]

Rate set

For plans with a valuation

date

Immediate annuity rate

(percent)

Deferred annuities (percent)

On or after Before i1 i2 i3 n1 n2

* * * * * * *

16 ........................................................................ 2–1–95 3–1–95 6.00 5.25 4.00 4.00 7 8

Annuity Valuations

In determining the value of interest

factors of the form vo:n (as defined in

§ 2676.13(b)(1)) for purposes of applying

the formulas set forth in § 2676.13 (b)

through (i) and in determining the value

of any interest factor used in valuing

annuity benefits under this subpart, the

plan administrator shall use the values

of it prescribed in the table below.

The following table tabulates, for each

calendar month of valuation ending

after the effective date of this part, the

interest rates (denoted by i1, i2, . . ., and

referred to generally as it) assumed to be

in effect between specified anniversaries

of a valuation date that occurs within

that calendar month; those anniversaries

are specified in the columns adjacent to

the rates. The last listed rate is assumed

to be in effect after the last listed

anniversary date.

TABLE II

[Annuity Valuations]

For valuation dates occurring in the month—

The values of it are:

it for t = it for t = it for t =

* * * * * * *

February 1995 ............................................................................................ .0730 1–20 .0575 >20 N/A N/A

Issued in Washington, DC, on this 10th day

of January 1995.

Martin Slate,

Executive Director, Pension Benefit Guaranty

Corporation.

[FR Doc. 95–965 Filed 1–12–95; 8:45 am]

BILLING CODE 7708–01–M

29 CFR Part 2644

Notice and Collection of Withdrawal

Liability; Adoption of New Interest Rate

AGENCY: Pension Benefit Guaranty

Corporation.

ACTION: Final rule.

SUMMARY: This is an amendment to the

Pension Benefit Guaranty Corporation’s

regulation on Notice and Collection of

Withdrawal Liability. That regulation

incorporates certain interest rates

published by another Federal agency.

This amendment adds to the appendix

of that regulation a new interest rate to

be effective from January 1, 1995, to

March 31, 1995. The effect of the

amendment is to advise the public of

the new rate.

EFFECTIVE DATE: January 1, 1995.

FOR FURTHER INFORMATION CONTACT:

Harold J. Ashner, Assistant General

Counsel, Office of the General Counsel,

Pension Benefit Guaranty Corporation,

1200 K Street, NW., Washington, DC

20005–4026; telephone 202–326–4024

(202–326–4179 for TTY and TDD).

These are not toll-free numbers.

SUPPLEMENTARY INFORMATION: Under

section 4219(c) of the Employee

Retirement Income Security Act of 1974,

as amended (‘‘ERISA’’), the Pension

Benefit Guaranty Corporation (‘‘the

PBGC’’) promulgated a final regulation

on Notice and Collection of Withdrawal

Liability. That regulation, codified at 29

CFR part 2644, deals with the rate of

interest to be charged by multiemployer

pension plans on withdrawal liability

payments that are overdue or in default,

or to be credited by plans on

overpayments of withdrawal liability.

The regulation allows plans to set rates,

subject to certain restrictions. Where a

plan does not set the interest rate,

§ 2644.3(b) of the regulation provides

that the rate to be charged or credited

for any calendar quarter is the average

quoted prime rate on short-term

commercial loans for the fifteenth day

(or the next business day if the fifteenth

day is not a business day) of the month

preceding the beginning of the quarter,

as reported by the Board of Governors

of the Federal Reserve System in

Statistical Release H.15 (‘‘Selected

Interest Rates’’).

Because the regulation incorporates

interest rates published in Statistical

Release H.15, that release is the

authoritative source for the rates that are

to be applied under the regulation. As

a convenience to persons using the

regulation, however, the PBGC collects

the applicable rates and republishes

them in an appendix to part 2644. This

amendment adds to this appendix the

interest rate of 8.50 percent, which will
Federal Register / Vol. 60, No. 9 / Friday, January 13, 1995 / Rules and Regulations 3085

be effective from January 1, 1995,

through March 31, 1995. This rate

represents an increase of .75 percent

from the rate in effect for the fourth

quarter of 1994. This rate is based on the

prime rate in effect on December 15,

1994.

The appendix to 29 CFR part 2644

does not prescribe interest rates under

the regulation; the rates prescribed in

the regulation are those published in

Statistical Release H.15. The appendix

merely collects and republishes the

rates in a convenient place. Thus, the

interest rates in the appendix are

informational only. Accordingly, the

PBGC finds that notice of and public

comment on this amendment would be

unnecessary and contrary to the public

interest. For the above reasons, the

PBGC also believes that good cause

exists for making this amendment

effective immediately.

The PBGC has determined that this

action is not a ‘‘significant regulatory

action’’ under the criteria set forth in

Executive Order 12866, because it will

not have an annual effect on the

economy of $100 million or more or

adversely affect in a material way the

economy, a sector of the economy,

productivity, competition, jobs, the

environment, public health or safety, or

State, local, or tribal governments or

communities; create a serious

inconsistency or otherwise interfere

with an action taken or planned by

another agency; materially alter the

budgetary impact of entitlements,

grants, user fees, or loan programs or the

rights and obligations of recipients

thereof; or raise novel legal or policy

issues arising out of legal mandates, the

President’s priorities, or the principles

set forth in Executive Order 12866.

Because no general notice of proposed

rulemaking is required for this

amendment, the Regulatory Flexibility

Act of 1980 does not apply. See 5 U.S.C.

601(2).

List of Subjects in 29 CFR Part 2644

Employee benefit plans, Pensions.

In consideration of the foregoing, part

2644 of subchapter F of chapter XXVI of

title 29, Code of Federal Regulations, is

amended as follows:

PART 2644—NOTICE AND

COLLECTION OF WITHDRAWAL

LIABILITY

1. The authority citation for part 2644

continues to read as follows:

Authority: 29 U.S.C. 1302(b)(3), 1399(c)(6).

2. Appendix A to part 2644 is

amended by adding to the end of the

table a new entry to read as follows:

Appendix A to Part 2644—Table of

Interest Rates

* * * * *

From To Date of

quotation

Rate

(percent)

* * * * *

1/01/95 3/31/95 12/15/94 8.50

Issued in Washington, DC, on this 10th day

of January 1995.

Martin Slate,

Executive Director, Pension Benefit Guaranty

Corporation.

[FR Doc. 95–967 Filed 1–12–95; 8:45 am]

BILLING CODE 7708–01–M

DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Part 218

RIN 1010–AB40

Regulations Governing Recoupment of

Overpayments on Indian Mineral

Leases

AGENCY: Minerals Management Service

(MMS), Interior.

ACTION: Final rule.

SUMMARY: The Minerals Management

Service (MMS) is amending its Royalty

Management Program regulations to

codify longstanding policy with respect

to recoupment of overpayments made

by lessees and other payors on Indian

mineral leases. The established policy is

that recoupments cannot exceed 50

percent of the reported revenues in the

current month on an allotted lease or

100 percent of the reported revenues in

the current month on a tribal lease.

EFFECTIVE DATE: February 13, 1995.

FOR FURTHER INFORMATION CONTACT:

David S. Guzy, Chief, Rules and

Procedures Staff at (303) 231–3432, FAX

(303) 231–3194.

SUPPLEMENTARY INFORMATION: The

principal author of this final rule is

Marvin D. Shaver of the Royalty

Management Program, Rules and

Procedures Staff, Lakewood, Colorado.

I. Background

In the Notice of Proposed Rulemaking

(55 FR 3232, January 31, 1990), MMS

described the current policy regarding

recoupment of overpayments made by

lessees and other payors on Indian

mineral leases. As stated in the

proposed rule, royalty payments on

production from mineral leases are a

major source of income to many Indian

allottees and tribes and, for some

allottees, the only source.

The current policy permits lessees

and payors to recoup overpayments as

a credit against future rental or royalty

accruals due to Indian tribes or allottees.

Lessees and operators were instructed to

follow the recoupment policy in ‘‘Notice

to Lessees and Operators of Indian Oil

and Gas Leases No. 1A’’ (NTL–1A),

issued by the Conservation Division of

the U.S. Geological Survey in 1977.

Section IX of NTL–1A provided that in

the case of tribal leases the credit must

be against the same lease or, with

approval of the tribe, against amounts

due under other tribal leases. In the case

of allotted leases, such credits were

limited to the lease on which the

overpayments were made with recovery

of the overpayment prorated over a

period of time necessary to prevent an

allottee’s current monthly revenue being

reduced by more than 50 percent. This

recoupment policy was adopted by

MMS and instructions were included in

Volume II of the MMS ‘‘Oil and Gas

Payor Handbook’’ by Addendum No. 12,

effective December 1, 1983. Also,

instructions were included in the

revised MMS ‘‘Oil and Gas Payor

Handbook’’ issued in December 1986

(Section 3.7, ‘‘Reporting Indian

Overpayment Recoupments’’). The

instructions are also included in the

MMS ‘‘AFS Payor Handbook—Solid

Minerals’’ issued in September 1984

(Chapter 5, ‘‘Recoupments on Indian

Leases’’). These payor handbooks have

been provided to all royalty payors on

Federal and Indian leases for specific

guidance with respect to reporting

requirements on oil and gas and solid

mineral leases.

MMS published in the Federal

Register revised final oil and gas

product valuation regulations at 30 CFR

Part 206 on January 15, 1988, effective

March 1, 1988 (53 FR 1184 and 53 FR

1230). Paragraph 206.150(e)(2) of the

revised regulations terminated NTL–1A.

However, MMS’ policy and procedure

remained in the payor handbooks.

Although the Indian lease

overpayment recoupment policy has

been the same for many years, MMS has

determined that its regulations should

state the policy. Consequently, MMS

published the January 31, 1990,

proposed rulemaking to codify the

policy and procedure. In response to the

proposed rule, MMS received comments

from four lessees/payors and other

interested parties. All of these

comments were considered in the final

rule and are discussed in Section II

below. The final rule is summarized in

Section III below.