Federal Oil and Gas and Federal and Indian Coal Valuation, 16325-16327 [2017-06600]
Download as PDF
Federal Register / Vol. 82, No. 63 / Tuesday, April 4, 2017 / Proposed Rules
ambiguity and to write them to
minimize litigation.
b. Would meet the criteria of § 3(b)(2),
which requires that we write all
regulations in clear language using clear
legal standards.
9. Consultation With Indian Tribal
Governments (E.O. 13175)
The Department strives to strengthen
its government-to-government
relationship with the Indian Tribes
through a commitment to consultation
with the Indian Tribes and recognition
of their right to self-governance and
Tribal sovereignty. Under the
Department’s consultation policy and
the criteria in E.O. 13175, we evaluated
this proposed rule and determined that
it would potentially affect Federallyrecognized Indian Tribes. We
determined that this rule would restore
the historical valuation methodology for
coal produced from Indian leases. Our
previous and planned activities include:
(a) As described in the 2017 Valuation
Rule under Procedural Matters, item 9,
at 81 FR 43368, we consulted with the
affected Tribes on a government-togovernment basis in preparing the 2017
Valuation Rule. We also will consult
with the affected Tribes about potential
repeal of the 2017 Valuation Rule.
(b) We will fully consider Tribal
views in the final rule.
nlaroche on DSK30NT082PROD with PROPOSALS
10. Paperwork Reduction Act
This proposed rule:
(a) Does not contain any new
information collection requirements.
(b) Does not require a submission to
OMB under the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501 et seq). See
5 CFR 1320.4(a)(2).
This proposed rule, if promulgated as
a final rule, will leave in tack the
information collection requirements that
OMB already approved under OMB
Control Numbers 1012–0004, 1012–
0005, and 1012–0010.
11. National Environmental Policy Act
of 1969 (NEPA)
This proposed rule would not
constitute a major Federal action,
significantly affecting the quality of the
human environment. We are not
required to provide a detailed statement
under NEPA because this rule qualifies
for categorically exclusion under 43
CFR 46.210(i) in that this is ‘‘. . . of an
administrative, financial, legal,
technical, or procedural nature. . . .’’
This rule also qualifies for categorically
exclusion under Departmental Manual,
part 516, section 15.4.(C)(1) in that its
impacts are limited to administrative,
economic, or technological effects. We
also have determined that this rule is
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15:42 Apr 03, 2017
Jkt 241001
not involved in any of the extraordinary
circumstances listed in 43 CFR 46.215
that would require further analysis
under NEPA. The procedural changes
resulting from the repeal of the 2017
Valuation Rule would have no
consequences on the physical
environment. This proposed rule would
not alter, in any material way, natural
resources exploration, production, or
transportation.
Dated: March 30, 2017.
Amy Holley,
Acting Assistant Secretary for Policy,
Management and Budget.
12. Effects on the Energy Supply (E.O.
13211)
16325
30 CFR Parts 1202 and 1206
This proposed rule would not be a
significant energy action under the
definition in E.O. 13211, and, therefore,
would not require a Statement of Energy
Effects.
13. Clarity of This Regulation
14. Public Availability of Comments
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 view, we
cannot guarantee that we will be able to
do so.
List of Subjects in 30 CFR Parts 1202
and 1206
Coal, Continental shelf, Government
contracts, Indian lands, Mineral
royalties, Natural gas, Oil, Oil and gas
exploration, Public lands—mineral
resources, Reporting and recordkeeping
requirements.
Frm 00019
Fmt 4702
Sfmt 4702
BILLING CODE 4335–30–P
DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue
[Docket No. ONRR–2017–0002; DS63644000
DR2000000.CH7000 178D0102R2]
RIN 1012–AA21
Federal Oil and Gas and Federal and
Indian Coal Valuation
Office of Natural Resources
Revenue (ONRR), Interior.
ACTION: Advance Notice of Proposed
Rulemaking (ANPRM).
AGENCY:
Executive Orders 12866 (section
1(b)(12)), 12988 (section 3(b)(1)(B)), and
13563 (section 1(a)), and the
Presidential Memorandum of June 1,
1998, would require us to write all rules
in Plain Language. This means that each
rule that we publish must: (a) Have
logical organization; (b) use the active
voice to address readers directly; (c) use
clear language rather than jargon; (d) use
short sections and sentences; and (e) use
lists and tables wherever possible.
If you feel that we have not met these
requirements, send your comments to
armand.southall@onrr.gov. To better
help us revise this rule, make your
comments as specific as possible. For
example, you should tell us the
numbers of the sections or paragraphs
that you think we wrote unclearly,
which sections or sentences are too
long, the sections where you feel lists or
tables would be useful, etc.
PO 00000
[FR Doc. 2017–06617 Filed 4–3–17; 8:45 am]
The Office of Natural
Resources Revenue (ONRR) requests
comments and suggestions from affected
parties and the interested public on
whether revisions to the regulations
governing the valuation, for royalty
purposes, of oil and gas produced from
Federal onshore and offshore leases and
coal produced from Federal and Indian
leases, are needed and, if so, what
specific revisions should be considered.
On July 1, 2016, ONRR published a final
rule, Consolidated Federal Oil and Gas
and Federal and Indian Coal Valuation
Reform (2017 Valuation Rule). ONRR
subsequently stayed the effective date of
that rule pending resolution of
litigation. As a result of the stay, the
regulations in effect prior to January 1,
2017 (‘‘pre-existing regulations’’) remain
in effect. In a separate notice, ONRR is
seeking comments on a proposed rule to
repeal the 2017 Valuation Rule to
maintain the status quo in which the
pre-existing regulations remain in effect
while ONRR reconsiders whether
changes made by the 2017 Valuation
Rule are needed or appropriate.
DATES: You must submit your comments
by May 4, 2017.
ADDRESSES: You may submit comments
to ONRR on this ANPRM by any of the
following methods. Please reference the
Regulation Identifier Number (RIN)
1012–AA21 in your comments.
• Electronically: Go to https://
www.regulations.gov. In the entry titled
‘‘Enter Keyword or ID,’’ enter ‘‘ONRR–
2017–0002,’’ then click ‘‘Search.’’
Follow the instructions to submit public
comments. We will post all comments.
• Email comments to Luis Aguilar,
Regulatory Specialist, at Luis.Aguilar@
onrr.gov.
SUMMARY:
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Federal Register / Vol. 82, No. 63 / Tuesday, April 4, 2017 / Proposed Rules
nlaroche on DSK30NT082PROD with PROPOSALS
• Hand-carry or mail comments,
using an overnight courier service, to
the Office of Natural Resources
Revenue, Building 53, Entrance E–20,
Denver Federal Center, West 6th Ave.
and Kipling St., Denver, Colorado
80225.
FOR FURTHER INFORMATION CONTACT: For
questions on procedural issues, contact
Luis Aguilar, Regulatory Specialist,
ONRR, at (303) 231–3418 or email to
Luis.Aguilar@onrr.gov. For questions on
technical issues, contact Michael
DeBerard, Asset Valuation, ONRR, at
(303) 231–3884 or email to
Michael.DeBerard@onrr.gov.
SUPPLEMENTARY INFORMATION:
I. Background
The Secretary of the Interior’s
authority to establish the value of
Federal oil and gas production through
regulations is contained in the mineral
leasing statutes (43 U.S.C. 1334; 30
U.S.C. 189 and 359). Likewise, the
Secretary of the Interior’s authority to
establish the value of Federal and
Indian coal production through
regulations is contained in the Indian
Mineral Leasing Act of 1938, the
Mineral Leasing Act, and the Mineral
Leasing Act for Acquired Lands (25
U.S.C. 396d; 30 U.S.C. 189 and 359). In
addition, virtually all Federal oil and
gas and Federal and Indian coal leases
expressly reserve to the Secretary the
authority to establish the reasonable
value of production or provide that the
royalty value be set by regulation.
The 2017 Valuation Rule addressed
Federal oil and gas and Federal and
Indian coal valuation in one
rulemaking. The 2017 Valuation Rule
sought to (1) offer greater simplicity,
certainty, clarity, and consistency in
product valuation for mineral lessees
and mineral revenue recipients; (2)
ensure that Indian mineral lessors
receive the maximum revenues from
coal resources on their land, consistent
with the Secretary’s trust responsibility
and lease terms; (3) decrease lessees’
cost of compliance and ONRR’s cost to
ensure compliance; and (4) provide
early certainty to ONRR and
stakeholders. Whether the 2017
Valuation Rule is repealed or retained,
ONRR seeks to accomplish the goals
outlined in that rulemaking. For
additional information, see 81 FR
43338, dated July 1, 2016.
This ANPRM is intended to solicit
comments and suggestions for two
possible scenarios. If the 2017 Valuation
Rule is repealed, ONRR seeks comments
regarding whether a new valuation rule
is needed and, if so, what particular
issues the new valuation rule should
VerDate Sep<11>2014
15:42 Apr 03, 2017
Jkt 241001
address. Alternatively, if the 2017
Valuation Rule is not repealed, ONRR is
seeking comments as to what changes
should be made to ONRR’s valuation
regulations in 30 CFR parts 1202 and
1206, as amended by the 2017 Valuation
Rule. Please segregate comments to each
of these two scenarios.
Soliciting comments and involving all
affected stakeholders early in the
rulemaking process are the hallmarks of
good government and smart business
practice. The purpose of this rulemaking
process is to provide regulations that
would (1) offer greater simplicity,
certainty, clarity, and consistency in
production valuation for mineral lessees
and mineral revenue recipients; (2) be
easy to understand; (3) decrease
industry’s cost of compliance; and (4)
provide early certainty to industry,
ONRR, and stakeholders.
II. Public Comment Procedures
ONRR is not obligated to consider
comments that we receive after the close
of the comment period for this ANPRM,
or comments that are delivered to an
address other than those listed in the
ADDRESSES section of this notice. After
the comment period for this ANPRM
closes, ONRR will review all comment
submissions. Upon consideration,
ONRR may publish a notice of proposed
rulemaking.
A. Written Comment Guidelines
We are particularly interested in
receiving comments and suggestions
about the topics identified in section III,
Description of Information Requested.
Your written comments should: (1) Be
specific; (2) explain the reason for your
comments and suggestions; (3) address
the issues outlined in this notice; and
(4) where possible, refer to the specific
provision, section, or paragraph of
statutory law, case law, lease term, or
existing regulations that you are
addressing.
The comments and recommendations
that are most useful and have greater
likelihood of influencing decisions on
the content of a possible future
proposed rule are: (1) Comments and
recommendations supported by
quantitative information or studies; and
(2) comments that include citations to,
and analyses of, the applicable laws,
lease terms, and regulations.
B. Public Availability of Comments
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.
PO 00000
Frm 00020
Fmt 4702
Sfmt 4702
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.
III. Description of Information
Requested
We are interested in submission of
proposals that will lead to improved
efficiencies for lessees, ONRR, and other
stakeholders. In considering proposed
changes to the existing Federal oil and
gas royalty valuation regulations at 30
CFR parts 1202 and 1206, we have three
goals in mind, as follows:
• Provide clear regulations that are
understandable and consistent with
fulfilling the Secretary’s responsibility
to ensure fair value for the public’s
resources.
• Provide valuation methods that are
as efficient as practicable for lessees to
use.
• Provide early certainty that correct
payment has been made.
As discussed above, ONRR requests
comments on two possible scenarios
pending the outcome of the proposed
rule to repeal the 2017 Valuation Rule.
We recognize the outcome of the
proposed rule to repeal the 2017
Valuation Rule may not be known by
the closing date of this ANPRM.
Therefore, we encourage commenters to
consider both of the two possible
outcomes of that rulemaking when
preparing their submissions as follows.
1. If the 2017 Valuation Rule is
repealed, ONRR requests comments
regarding whether a new rulemaking
would be beneficial or is necessary. If
commenters believe that a new
rulemaking would be beneficial, ONRR
requests comments regarding specific
changes to the Federal oil and gas and
Federal and Indian coal valuation
regulations.
2. If the 2017 Valuation Rule is not
repealed, ONRR requests comments
regarding whether potential changes to
the 2017 Valuation Rule are needed.
Possible topics include, but are not
limited to:
• Whether ONRR should have one
rule addressing Federal oil and gas and
Federal and Indian coal valuation, or
separate rulemakings.
• How best to value non-arm’s-length
coal sales and/or sales between
affiliates.
• Whether ONRR should update the
valuation regulations governing nonarm’s-length dispositions of Federal gas,
and if so, how.
• Whether ONRR should address
marketable condition and/or
unbundling, and if so, how.
E:\FR\FM\04APP1.SGM
04APP1
Federal Register / Vol. 82, No. 63 / Tuesday, April 4, 2017 / Proposed Rules
• Whether ONRR should have a
default provision clarifying how ONRR
will exercise Secretarial authority to
determine value for royalty purposes in
cases where there is misconduct, breach
of duty to market, or ONRR cannot
otherwise verify value. Other potential
valuation methods or necessary changes
to ONRR valuation regulations.
ONRR appreciates your participation
and looks forward to receiving your
comments.
SUPPLEMENTARY INFORMATION section for
further instructions on submitting
comments.
FOR FURTHER INFORMATION CONTACT: If
you have questions on this proposed
rulemaking, call or email Lieutenant
Scott Ledee, Waterways Management
Division Chief, Sector Key West, FL,
U.S. Coast Guard; telephone (305) 292–
8768, email Scott.G.Ledee@uscg.mil.
SUPPLEMENTARY INFORMATION:
I. Table of Abbreviations
Dated: March 30, 2017.
Amy Holley,
Acting Assistant Secretary for Policy,
Management and Budget.
COTP Captain of the Port
CFR Code of Federal Regulations
DHS Department of Homeland Security
FR Federal Register
NPRM Notice of proposed rulemaking
[FR Doc. 2017–06600 Filed 4–3–17; 8:45 am]
BILLING CODE 4335–30–P
§
Section
U.S.C.
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 165
[Docket Number USCG–2016–0983]
RIN 1625–AA00
Safety Zone; Fireworks Displays,
Sector Key West, Florida
Coast Guard, DHS.
Notice of proposed rulemaking.
AGENCY:
ACTION:
The Coast Guard proposes to
establish safety zones for certain waters
within the Sector Key West Captain of
the Port (COTP) Zone. This action
would establish safety zones around
firework platforms, structures, or barges
during the storage, preparation, and
launching of fireworks. The proposed
rule is necessary to provide for the
safety of the participants, participant
vessels, and the general public on the
navigable waters of the United States
during the fireworks displays. This
proposed rule would allow the Coast
Guard to restrict persons and vessels,
except those participating in the event,
from entering, transiting through,
anchoring in, or remaining within the
regulated area unless authorized by the
COTP Key West or a designated
representative. We invite your
comments on this proposed rulemaking.
DATES: Comments and related material
must be received by the Coast Guard on
or before May 4, 2017.
ADDRESSES: You may submit comments
identified by docket number USCG–
2016–0983 using the Federal
e-Rulemaking Portal at https://
www.regulations.gov. See the ‘‘Public
Participation and Request for
Comments’’ portion of the
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SUMMARY:
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15:42 Apr 03, 2017
Jkt 241001
United States Code
II. Background, Purpose, and Legal
Basis
This proposed rule would establish
safety zones around firework platforms,
structures or barges within the Sector
Key West COTP Zone during the
storage, preparation, and launching of
fireworks. Hazards from firework
displays include accidental discharge of
fireworks, dangerous projectiles, and
falling hot embers or other debris. The
COTP Key West has determined that
potential hazards associated with
fireworks are a safety concern for
anyone within a 500-yard radius of the
firework platforms, structures, or barges.
The purpose of this rulemaking is to
ensure the safety of vessels and the
navigable waters within a 500-yard
radius of all firework platforms,
structures, or barges during the storage,
preparation, and launching of fireworks.
The Coast Guard proposes this
rulemaking under authority in 33 U.S.C.
1231.
III. Discussion of Proposed Rule
The Coast Guard proposes to establish
safety zones on navigable waters around
firework platforms, structures, or barges
within the COTP Zone Key West,
Florida. The safety zones would include
all waters within a 500-yard radius of all
fireworks launching platforms,
structures, or barges while engaged in
the storage, preparation, and launching
of fireworks.
The proposed rule seeks to enhance
navigation safety and marine
environmental protection, reduce the
potential for the loss of lives and
property, and ensure the safety of vessel
and workers from hazards associated
with fireworks operations in the
regulated area.
No vessel or person would be
permitted to enter the safety zone
without obtaining permission from the
PO 00000
Frm 00021
Fmt 4702
Sfmt 4702
16327
COTP Key West or a designated
representative. The proposed regulatory
text appears at the end of this
document.
Notice of enforcement and suspension
of enforcement will be made by all
appropriate means to affect the widest
distribution among the affected
segments of the public. Such means of
notification may include, but are not
limited to, Broadcast Notice to Mariners,
Local Notice to Mariners, or notices on
the U. S. Coast Guard Homeport Web
site.
IV. Regulatory Analyses
We developed this proposed rule after
considering numerous statutes and
executive orders related to rulemaking.
Below we summarize our analyses
based on a number of these statutes and
executive orders and we discuss First
Amendment rights of protestors.
A. Regulatory Planning and Review
Executive Orders 12866 and 13563
direct agencies to assess the costs and
benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits.
Executive Order 13563 emphasizes the
importance of quantifying both costs
and benefits, of reducing costs, of
harmonizing rules, and of promoting
flexibility. This NPRM has not been
designated a ‘‘significant regulatory
action,’’ under Executive Order 12866.
Accordingly, the NPRM has not been
reviewed by the Office of Management
and Budget.
Although this proposed rule may
restrict access to small portions of the
waterway within the Sector Key West
COTP Zone, the effect of this regulation
would not be significant for the
following reasons: (1) The safety zones
would only be enforced during limited
time intervals while firework display
operations present a hazard; (2) vessels
may be authorized to enter the regulated
areas with permission of the COTP Key
West or a designated representative; and
(3) advanced notification of closures
will be made via Local Notice to
Mariners, Broadcast to Mariners, and
the U. S. Coast Guard Homeport Web
site.
B. Impact on Small Entities
The Regulatory Flexibility Act of
1980, 5 U.S.C. 601–612, as amended,
requires Federal agencies to consider
the potential impact of regulations on
small entities during rulemaking. The
term ‘‘small entities’’ comprises small
businesses, not-for-profit organizations
that are independently owned and
operated and are not dominant in their
E:\FR\FM\04APP1.SGM
04APP1
Agencies
[Federal Register Volume 82, Number 63 (Tuesday, April 4, 2017)]
[Proposed Rules]
[Pages 16325-16327]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-06600]
-----------------------------------------------------------------------
DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue
30 CFR Parts 1202 and 1206
[Docket No. ONRR-2017-0002; DS63644000 DR2000000.CH7000 178D0102R2]
RIN 1012-AA21
Federal Oil and Gas and Federal and Indian Coal Valuation
AGENCY: Office of Natural Resources Revenue (ONRR), Interior.
ACTION: Advance Notice of Proposed Rulemaking (ANPRM).
-----------------------------------------------------------------------
SUMMARY: The Office of Natural Resources Revenue (ONRR) requests
comments and suggestions from affected parties and the interested
public on whether revisions to the regulations governing the valuation,
for royalty purposes, of oil and gas produced from Federal onshore and
offshore leases and coal produced from Federal and Indian leases, are
needed and, if so, what specific revisions should be considered. On
July 1, 2016, ONRR published a final rule, Consolidated Federal Oil and
Gas and Federal and Indian Coal Valuation Reform (2017 Valuation Rule).
ONRR subsequently stayed the effective date of that rule pending
resolution of litigation. As a result of the stay, the regulations in
effect prior to January 1, 2017 (``pre-existing regulations'') remain
in effect. In a separate notice, ONRR is seeking comments on a proposed
rule to repeal the 2017 Valuation Rule to maintain the status quo in
which the pre-existing regulations remain in effect while ONRR
reconsiders whether changes made by the 2017 Valuation Rule are needed
or appropriate.
DATES: You must submit your comments by May 4, 2017.
ADDRESSES: You may submit comments to ONRR on this ANPRM by any of the
following methods. Please reference the Regulation Identifier Number
(RIN) 1012-AA21 in your comments.
Electronically: Go to https://www.regulations.gov. In the
entry titled ``Enter Keyword or ID,'' enter ``ONRR-2017-0002,'' then
click ``Search.'' Follow the instructions to submit public comments. We
will post all comments.
Email comments to Luis Aguilar, Regulatory Specialist, at
Luis.Aguilar@onrr.gov.
[[Page 16326]]
Hand-carry or mail comments, using an overnight courier
service, to the Office of Natural Resources Revenue, Building 53,
Entrance E-20, Denver Federal Center, West 6th Ave. and Kipling St.,
Denver, Colorado 80225.
FOR FURTHER INFORMATION CONTACT: For questions on procedural issues,
contact Luis Aguilar, Regulatory Specialist, ONRR, at (303) 231-3418 or
email to Luis.Aguilar@onrr.gov. For questions on technical issues,
contact Michael DeBerard, Asset Valuation, ONRR, at (303) 231-3884 or
email to Michael.DeBerard@onrr.gov.
SUPPLEMENTARY INFORMATION:
I. Background
The Secretary of the Interior's authority to establish the value of
Federal oil and gas production through regulations is contained in the
mineral leasing statutes (43 U.S.C. 1334; 30 U.S.C. 189 and 359).
Likewise, the Secretary of the Interior's authority to establish the
value of Federal and Indian coal production through regulations is
contained in the Indian Mineral Leasing Act of 1938, the Mineral
Leasing Act, and the Mineral Leasing Act for Acquired Lands (25 U.S.C.
396d; 30 U.S.C. 189 and 359). In addition, virtually all Federal oil
and gas and Federal and Indian coal leases expressly reserve to the
Secretary the authority to establish the reasonable value of production
or provide that the royalty value be set by regulation.
The 2017 Valuation Rule addressed Federal oil and gas and Federal
and Indian coal valuation in one rulemaking. The 2017 Valuation Rule
sought to (1) offer greater simplicity, certainty, clarity, and
consistency in product valuation for mineral lessees and mineral
revenue recipients; (2) ensure that Indian mineral lessors receive the
maximum revenues from coal resources on their land, consistent with the
Secretary's trust responsibility and lease terms; (3) decrease lessees'
cost of compliance and ONRR's cost to ensure compliance; and (4)
provide early certainty to ONRR and stakeholders. Whether the 2017
Valuation Rule is repealed or retained, ONRR seeks to accomplish the
goals outlined in that rulemaking. For additional information, see 81
FR 43338, dated July 1, 2016.
This ANPRM is intended to solicit comments and suggestions for two
possible scenarios. If the 2017 Valuation Rule is repealed, ONRR seeks
comments regarding whether a new valuation rule is needed and, if so,
what particular issues the new valuation rule should address.
Alternatively, if the 2017 Valuation Rule is not repealed, ONRR is
seeking comments as to what changes should be made to ONRR's valuation
regulations in 30 CFR parts 1202 and 1206, as amended by the 2017
Valuation Rule. Please segregate comments to each of these two
scenarios.
Soliciting comments and involving all affected stakeholders early
in the rulemaking process are the hallmarks of good government and
smart business practice. The purpose of this rulemaking process is to
provide regulations that would (1) offer greater simplicity, certainty,
clarity, and consistency in production valuation for mineral lessees
and mineral revenue recipients; (2) be easy to understand; (3) decrease
industry's cost of compliance; and (4) provide early certainty to
industry, ONRR, and stakeholders.
II. Public Comment Procedures
ONRR is not obligated to consider comments that we receive after
the close of the comment period for this ANPRM, or comments that are
delivered to an address other than those listed in the ADDRESSES
section of this notice. After the comment period for this ANPRM closes,
ONRR will review all comment submissions. Upon consideration, ONRR may
publish a notice of proposed rulemaking.
A. Written Comment Guidelines
We are particularly interested in receiving comments and
suggestions about the topics identified in section III, Description of
Information Requested. Your written comments should: (1) Be specific;
(2) explain the reason for your comments and suggestions; (3) address
the issues outlined in this notice; and (4) where possible, refer to
the specific provision, section, or paragraph of statutory law, case
law, lease term, or existing regulations that you are addressing.
The comments and recommendations that are most useful and have
greater likelihood of influencing decisions on the content of a
possible future proposed rule are: (1) Comments and recommendations
supported by quantitative information or studies; and (2) comments that
include citations to, and analyses of, the applicable laws, lease
terms, and regulations.
B. Public Availability of Comments
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.
III. Description of Information Requested
We are interested in submission of proposals that will lead to
improved efficiencies for lessees, ONRR, and other stakeholders. In
considering proposed changes to the existing Federal oil and gas
royalty valuation regulations at 30 CFR parts 1202 and 1206, we have
three goals in mind, as follows:
Provide clear regulations that are understandable and
consistent with fulfilling the Secretary's responsibility to ensure
fair value for the public's resources.
Provide valuation methods that are as efficient as
practicable for lessees to use.
Provide early certainty that correct payment has been
made.
As discussed above, ONRR requests comments on two possible
scenarios pending the outcome of the proposed rule to repeal the 2017
Valuation Rule. We recognize the outcome of the proposed rule to repeal
the 2017 Valuation Rule may not be known by the closing date of this
ANPRM. Therefore, we encourage commenters to consider both of the two
possible outcomes of that rulemaking when preparing their submissions
as follows.
1. If the 2017 Valuation Rule is repealed, ONRR requests comments
regarding whether a new rulemaking would be beneficial or is necessary.
If commenters believe that a new rulemaking would be beneficial, ONRR
requests comments regarding specific changes to the Federal oil and gas
and Federal and Indian coal valuation regulations.
2. If the 2017 Valuation Rule is not repealed, ONRR requests
comments regarding whether potential changes to the 2017 Valuation Rule
are needed. Possible topics include, but are not limited to:
Whether ONRR should have one rule addressing Federal oil
and gas and Federal and Indian coal valuation, or separate rulemakings.
How best to value non-arm's-length coal sales and/or sales
between affiliates.
Whether ONRR should update the valuation regulations
governing non-arm's-length dispositions of Federal gas, and if so, how.
Whether ONRR should address marketable condition and/or
unbundling, and if so, how.
[[Page 16327]]
Whether ONRR should have a default provision clarifying
how ONRR will exercise Secretarial authority to determine value for
royalty purposes in cases where there is misconduct, breach of duty to
market, or ONRR cannot otherwise verify value. Other potential
valuation methods or necessary changes to ONRR valuation regulations.
ONRR appreciates your participation and looks forward to receiving
your comments.
Dated: March 30, 2017.
Amy Holley,
Acting Assistant Secretary for Policy, Management and Budget.
[FR Doc. 2017-06600 Filed 4-3-17; 8:45 am]
BILLING CODE 4335-30-P