Notice of the Annual Price Threshold Determination, 33768-33771 [07-2991]

Download as PDF 33768 Federal Register / Vol. 72, No. 117 / Tuesday, June 19, 2007 / Notices Street, SW., Room 8236, Washington, DC 20410–3000; telephone (202) 755– 1785, extension 4337 (this is not a tollfree number). Speech- or hearingimpaired individuals may access this number through TTY by calling the tollfree Federal Information Relay Service at (800) 877–8339. SUPPLEMENTARY INFORMATION: HUD regulations at 24 CFR part 35, subparts B through R, set out general lead-based paint requirements for all federally-assisted pre-1978 housing. Specifically, subparts B and R set forth general requirements applying to all HUD programs and subparts G and H describe the procedures for notification, evaluation, and reduction of lead-based paint hazards in (1) multifamily residential properties for which HUD is the owner of the mortgage or for which a lender receives mortgage insurance, including non-residential properties being converted to multifamily residential properties and (2) multifamily residential properties for which an owner receives project-based housing assistance, respectively. HUD regulations at 24 CFR 30.45 and 30.68 authorize the Assistant Secretary for Housing—Federal Housing Commissioner, or the Assistant Secretary’s designee, to initiate civil money penalty actions for violations of section 537(c)(1)(B) of the National Housing Act (12 U.S.C. 1735f– 15(c)(1)(B)) and for violations of Section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f), including the failure to provide decent, safe, and sanitary housing, as set out by 24 CFR 5.703. Pursuant to this authority, the Assistant Secretary for Housing— Federal Housing Commissioner redelegates to the Director of the Office of Healthy Homes and Lead Hazard Control authority to initiate civil money penalty actions pursuant to 24 CFR 30.45 and 30.68 against a property owner who fails to provide information documenting compliance with or fails to comply with HUD regulations that require the notification, evaluation, and reduction of lead-based paint hazards in (1) multifamily residential properties for which HUD is the owner of the mortgage or for which a lender receives mortgage insurance, including nonresidential properties being converted to multifamily residential properties and (2) multifamily properties for which an owner receives project-based housing assistance as set out in 24 CFR part 35, subparts B, G, H, and R. Accordingly, the Assistant Secretary for Housing—Federal Housing Commissioner hereby retains and redelegates authority as follows: I. Redelegation of Authority The Director of the Office of Healthy Homes and Lead Hazard Control is hereby authorized to initiate a civil money penalty action pursuant to and within the scope of 24 CFR 30.45 and 30.68 against property owners who fail to provide information documenting compliance with or fail to comply with HUD regulations that require the notification, evaluation, and reduction of lead-based paint hazards in (1) multifamily residential properties for which HUD is the owner of the mortgage or for which a lender receives mortgage insurance, including nonresidential properties being converted to multifamily residential properties and (2) multifamily residential properties for which an owner receives project-based housing assistance as set out in 24 CFR part 35, subparts B, G, H, and R. II. Authority To Redelegate The Director of the Office of Healthy Homes and Lead Hazard Control is not authorized to redelegate the authority described herein. III. Revocation The Assistant Secretary for Housing— Federal Housing Commissioner may revoke the authority authorized herein, in whole or in part, at any time. Dated: June 8, 2007. Brian D. Montgomery, Assistant Secretary for Housing—Federal Housing Commissioner. [FR Doc. E7–11747 Filed 6–18–07; 8:45 am] BILLING CODE 4210–67–P DEPARTMENT OF THE INTERIOR Minerals Management Service Notice of the Annual Price Threshold Determination Minerals Management Service (MMS), Interior. AGENCY: Notice of annual price threshold determination and annual average oil and gas market price calculations, along with their effects for the Gulf of Mexico royalty relief programs. ACTION: SUMMARY: This notice provides the official MMS documentation of which Gulf of Mexico price thresholds have been exceeded by annual market prices for oil or gas, by lease vintage, for calendar year 2006. This notice also explains in detail how MMS calculates the annual oil and gas prices and applicable price thresholds used to determine whether royalty relief applies in calendar year 2006 for our various deepwater and deep depth royalty relief programs. FOR FURTHER INFORMATION CONTACT: Marshall Rose, Chief, Economics Division at (703) 787–1536. By various laws (Outer Continental Shelf Lands Act, Deep Water Royalty Relief Act, Energy Policy Act) and regulations (30 CFR 203.47, 203.54, 203.78, 260.110, and 260.122), MMS has authority to impose price thresholds for royalty relief. As prescribed in applicable regulations or lease terms, notwithstanding any provisions for royalty relief, companies are required to pay royalties for those calendar years when annual average New York Mercantile Exchange (NYMEX) market prices for oil or gas exceed the adjusted price thresholds levels. As a courtesy, MMS tracks, calculates, and posts on its website a variety of relevant information about applicable oil and gas prices and the price threshold levels to be used in determining whether a particular lease continues to be eligible for deep gas, deep water, or other royalty relief. The information contained in this published notice was posted on MMS Web site previously. The following table represents the official MMS price threshold and market price calculation determinations made for calendar year 2006. Any subsequent inflation adjustments or market price adjustments will not affect these official results or their implication for royalty relief on the designated categories of leases. SUPPLEMENTARY INFORMATION: rwilkins on PROD1PC63 with NOTICES APPLICABLE PRICE THRESHOLDS AND MARKET PRICES FOR CALENDAR YEAR 2006 Product Lease vintage (sales held in) Deepwater oil ................................................... Annual average NYMEX price ($/bbl or $/ mmbtu) Before 1996; 1996–1997; 2000; 2002–3/2004 VerDate Aug<31>2005 18:32 Jun 18, 2007 Jkt 211001 PO 00000 Frm 00034 Fmt 4703 Sfmt 4703 E:\FR\FM\19JNN1.SGM $66.22 19JNN1 Adjusted price threshold level ($/bbl or $/ mmbtu) $35.75 Royalty relief suspended Yes 33769 Federal Register / Vol. 72, No. 117 / Tuesday, June 19, 2007 / Notices APPLICABLE PRICE THRESHOLDS AND MARKET PRICES FOR CALENDAR YEAR 2006—Continued Annual average NYMEX price ($/bbl or $/ mmbtu) Product Lease vintage (sales held in) Deepwater oil ................................................... Deepwater oil ................................................... Deepwater gas ................................................ Deepwater gas ................................................ Deepwater gas ................................................ Deep gas ......................................................... Deep gas ......................................................... Deep gas ......................................................... Deep gas ......................................................... 2001 ................................................................ 8/2004–2006 ................................................... Before 1996; 1996–1997; 2000; 2002–3/2004 2001 ................................................................ 8/2004–2006 ................................................... 3/2001 ............................................................. 8/2001–2003 ................................................... 2004–2006 ...................................................... Reg 30 CFR 203.47 ........................................ Adjusted price threshold level ($/bbl or $/ mmbtu) 66.22 66.22 6.99 6.99 6.99 6.99 6.99 6.99 6.99 32.06 41.36 4.47 4.00 6.88 4.00 5.72 9.88 9.88 Royalty relief suspended Yes Yes Yes Yes Yes Yes Yes No No bbl = barrel, mmbtu = million British Thermal Units. Technical Documentation The data and methodology used for making the 2006 calculations and determinations are discussed below. This same information for all years since 1996 is available at the Economics Division Web site http://www.mms.gov/ econ/DWRRAPrice1.htm. Additional information and notes about understanding this Web site are included at the end of this notice. Methodology for Calculation of the Actual Annual Average NYMEX Nearby Delivery Price 1. We use the price for the nearby delivery month. That is, the price for the first contract or earliest month that you can get the delivery/inventory for buying and selling today’s product. For example, on September 1, 2006, the nearby delivery month was October 2006. There are prices for other delivery months that can be bought and sold on September 1, 2006, such as November 2006, December 2006, etc., but the ‘‘nearby delivery month’’ would be October 2006. However, the nearby delivery month is not always the next month because trading days may differ for oil and gas futures. For example, on September 28, 2006, the nearby delivery month was November 2006. 2. The daily NYMEX closing price is listed as the settle price at the end of business trading hours for each commodity. These are listed at http:// www.nymex.com and also summarized at http://www.oilnergy.com. 3. The daily closing average is used to calculate the monthly average. For holidays and weekends, we use the previous business day’s closing average. For example, Table A illustrates the calculation of the average NYMEX oil price for the month of September 2006. (Note—this methodology is different from the Minerals Revenue Management’s Royalty In-Kind Program that excludes weekends and holidays.) Our analysis indicates that inclusion or exclusion of weekends and holidays does not bias the annual average price calculation in either direction. We chose to include the weekends and holidays, as highlighted in Table A, because our source summarizes the monthly price data with the inclusion. TABLE A.—EXAMPLE OF MONTHLY AVERAGE PRICE CALCULATION Day Daily closing price ($/bbl) Date Day Date Daily closing price ($/bbl) 9/1/2006 9/2/2006 9/3/2006 9/4/2006 9/5/2006 9/6/2006 9/7/2006 9/8/2006 9/9/2006 9/10/2006 9/11/2006 9/12/2006 9/13/2006 9/14/2006 9/15/2006 $69.19 69.19 69.19 69.19 68.60 67.50 67.32 66.25 66.25 66.25 65.61 63.76 63.97 63.22 63.33 Saturday ..................................................... Sunday ....................................................... Monday ....................................................... Tuesday ...................................................... Wednesday ................................................. Thursday ..................................................... Friday .......................................................... Saturday ..................................................... Sunday ....................................................... Monday ....................................................... Tuesday ...................................................... Wednesday ................................................. Thursday ..................................................... Friday .......................................................... Saturday ..................................................... 9/16/2006 9/17/2006 9/18/2006 9/19/2006 9/20/2006 9/21/2006 9/22/2006 9/23/2006 9/24/2006 9/25/2006 9/26/2006 9/27/2006 9/28/2006 9/29/2006 9/30/2006 $63.33 63.33 63.80 61.66 60.46 61.59 60.55 60.55 60.55 61.45 61.01 62.96 62.76 62.91 62.91 Average ............................................... rwilkins on PROD1PC63 with NOTICES Friday .......................................................... Saturday ...................................................... Sunday ........................................................ Monday (Holiday) ........................................ Tuesday ...................................................... Wednesday ................................................. Thursday ..................................................... Friday .......................................................... Saturday ...................................................... Sunday ........................................................ Monday ....................................................... Tuesday ...................................................... Wednesday ................................................. Thursday ..................................................... Friday .......................................................... ...................... ................ ..................................................................... ...................... 64.29 VerDate Aug<31>2005 18:32 Jun 18, 2007 Jkt 211001 PO 00000 Frm 00035 Fmt 4703 Sfmt 4703 E:\FR\FM\19JNN1.SGM 19JNN1 33770 Federal Register / Vol. 72, No. 117 / Tuesday, June 19, 2007 / Notices 4. The monthly average is used to calculate the annual average. For example, Table B illustrates the calculation of the NYMEX oil price for 2006. The calculation for the year-todate average consists of the monthly averages so far in the year. The dollar amount of the result is rounded to the nearest tenth decimal point (i.e., cents). TABLE B. EXAMPLE OF ANNUAL AVER- official MMS determination is made, AGE PRICE CALCULATION—Contin- any subsequent revisions in the underlying source of the inflation ued Average closing price ($/bbl) Month December ................................. 62.22 Average ............................. 66.22 TABLE B. EXAMPLE OF ANNUAL AVERAGE PRICE CALCULATION Month January ..................................... February ................................... March ........................................ April ........................................... May ........................................... June .......................................... July ........................................... August ....................................... September ................................ October ..................................... November ................................. Methodology for Calculation of the Applicable Oil and Natural Gas Price Thresholds Average closing price 1. The price thresholds are estimates ($/bbl) until they are locked in for a calendar $65.33 year based on the most current inflation 62.02 data available after the close of the year. 62.89 In conjunction with the calculation of 70.11 the annual market prices for oil and gas 70.86 above, once the price thresholds are 71.03 locked in, MMS makes an official 74.45 determination regarding whether these 73.11 market prices have exceeded the 64.29 applicable price thresholds for the 59.22 calendar year for a given vintage of lease 59.14 and royalty relief program. After this figures will not affect the locked-in price thresholds or the determination of eligibility for royalty relief for that calendar year. 2. The source for inflation data is the Department of Commerce, Bureau of Economic Analysis (BEA) http:// www.bea.gov. U.S. Economic Accounts—Gross Domestic Product (GDP). National Income and Products Account (NIPA) Table 1.1.9. The 4th quarter implicit price deflator is usually not available from BEA until March of the subsequent calendar year. 3. The implicit price deflator for GDP is used to calculate the applicable annual inflation rate, as illustrated in Table C. The deflator from the applicable year is divided by the deflator from the previous year and subtracted by one. For example, the inflation rate used to set the 2003 price threshold is calculated as {(106.40/ 104.19) ¥ 1 = 2.1%} TABLE C.—INFLATION RATES (CURRENT AND LOCKED-IN) [Derived from BEA data] Implicit price deflator for GDP ( base=1996) Calendar year rwilkins on PROD1PC63 with NOTICES 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 ......................................................................................... ......................................................................................... ......................................................................................... ......................................................................................... ......................................................................................... ......................................................................................... ......................................................................................... ......................................................................................... ......................................................................................... ......................................................................................... ......................................................................................... ......................................................................................... ......................................................................................... 4. Because price thresholds are fixed for previous years, the current inflation rate displayed in Table C above may not correspond precisely to the rate actually employed to calculate previous price thresholds. For example, the GDP deflator posted on the BEA Web site in March 2007 shows an inflation rate for 2004 of 2.8 percent. However, back in March 2005, when the 2004 price threshold was locked-in, the BEA Web site showed an inflation rate of 2.3 percent, resulting in a change for the deepwater oil price threshold for lease vintage 1996–2000*; 2002–3/2004*, as shown in the Deepwater Table on the Web site, from $32.80/bbl in 2003 to $33.55/bbl in 2004. Note that the figures that were shown on the BEA Web site VerDate Aug<31>2005 18:32 Jun 18, 2007 Jkt 211001 Implicit price deflator for GDP (base=2000) Current annual inflation rate Locked-in annual inflation rate 96.01 98.10 100.00 101.95 103.20 104.65 107.04 .............................. .............................. .............................. .............................. .............................. .............................. .............................. .............................. .............................. .............................. .............................. .............................. 100.00 102.40 104.19 106.40 109.43 112.74 116.04 .............................. .............................. .............................. .............................. .............................. .............................. .............................. 2.2 1.2 2.1 2.8 3.0 2.9 .............................. .............................. .............................. .............................. .............................. .............................. .............................. 2.3 1.2 1.6 2.3 3.5 2.9 in March of each year would be consistent with the adjustments made in the price thresholds from year to year. Rounding explains any remaining small differences between calculated lockedin inflation rates and those rates depicted on the MMS Web site. Therefore, to replicate the calculation for previous price thresholds, use the locked-in inflation rate. To replicate the calculation for the estimated price threshold, prior to March of the subsequent year, use the current inflation rate. Additional Information and Notes About the Web Site 1. The MMS will estimate the average market price at which oil or gas would PO 00000 Frm 00036 Fmt 4703 Sfmt 4703 have to sell during the remainder of the calendar year for the estimated price threshold to be exceeded for that year. If that estimated market price is shown in the table as a negative number, the average price at which oil or gas would have to be sold during the rest of the calendar year as of that time is guaranteed to exceed the estimated price threshold for the calendar year. 2. The bold font shown for selected actual annual market prices indicates years in which at least some leases were not eligible for royalty relief because actual prices exceeded the applicable price thresholds set for those leases. For example, in calendar year 2004, the actual average price of natural gas of $6.18 (per million Btu) exceeded the E:\FR\FM\19JNN1.SGM 19JNN1 Federal Register / Vol. 72, No. 117 / Tuesday, June 19, 2007 / Notices shallow water, deep natural gas price threshold levels of $3.76 for leases issued in Sale 178 (2001), and $5.37 for leases issued in all other Gulf of Mexico Sales held from 2001–2003 that did not exercise the option to switch terms offered under 30 CFR 203.48. 3. Production generated royalty-free under the deep gas program counts against the remaining royalty suspension volume, with one exception. That exception involves production from March 1, 2004, through May 2, 2004, from deep wells that qualified for royalty suspension under 30 CFR 203.40 through 48 (see Federal Register, Volume 69, Number 84, page 24055). 4. Regulations pertaining to price thresholds include 30 CFR 203.47, 203.54, 203.78, 260.110, and 260.122. DISTRICT OF COLUMBIA District of Columbia Sixteenth Street Historic District (Boundary Increase), 16th St., NW., Washington, 07000671 Wilson County Lebanon Woolen Mills, 218 N. Maple St., Lebanon, 07000687 TEXAS Bracken County Galveston County USS STEWART, East End of Seawolf Park, Galveston, 07000689 Baker Vineyard and Wine Cellar (Boundary Increase), 4465 W. Augusta–Chatham Rd., Augusta, 07000679 La Salle County La Salle County Courthouse, 101 Courthouse Square, Cotulla, 07000690 Campbell County Weber, John, Farm, (German Settlement, Four Mile Creek Area TR) 6231 Four Mile Rd., Camp Springs, 07000672 Rockwall County First Methodist Church of Rockwall, 303 E. Rusk, Rockwall, 07000691 Clark County Corinth Christian Methodist Episcopal Church, 1180 L & E Junction Rd., Winchester, 07000678 Orange County Foundry Bridge, VT 25, Tunbridge, 07000692 KENTUCKY Jefferson County Olympic, The, 223 W. Breckinridge St., Louisville, 07000677 Dated: May 22, 2007. Chris C. Oynes, Associate Director for Offshore Minerals Management. [FR Doc. 07–2991 Filed 6–18–07; 8:45 am] Knott County Bolen Building, 85 W. Main St., Hindman, 07000676 Hindman Ben Franklin, 16 W. Main St., Hindman, 07000675 BILLING CODE 4310–MR–P [OMB Number 1122–0005] Middlesex County Old Billerica Road Historic District, 229–301 Old Billerica Rd., Bedford, 07000681 Nominations for the following properties being considered for listing or related actions in the National Register were received by the National Park Service before June 2, 2007. Pursuant to section 60.13 of 36 CFR part 60 written comments concerning the significance of these properties under the National Register criteria for evaluation may be forwarded by United States Postal Service, to the National Register of Historic Places, National Park Service, 1849 C St., NW., 2280, Washington, DC 20240; by all other carriers, National Register of Historic Places, National Park Service, 1201 Eye St., NW., 8th floor, Washington, DC 20005; or by fax, 202–371–6447. Written or faxed comments should be submitted by July 5, 2007. rwilkins on PROD1PC63 with NOTICES [FR Doc. E7–11726 Filed 6–18–07; 8:45 am] BILLING CODE 4312–51–P DEPARTMENT OF JUSTICE National Register of Historic Places; Notification of Pending Nominations and Related Actions Plymouth County Wright Memorial Library, 147 St. George St., Duxbury, 07000680 J. Paul Loether, Chief, National Register of Historic Places/ National Historic Landmarks Program. COLORADO Las Animas County Aultman House, 711 Colorado Ave., Trinidad, 07000673 18:32 Jun 18, 2007 Rutland County Crown Point Road:Socialborough South Line to Otter Creek Crossing, (Crown Point Road MPS) Address Restricted, Clarendon, 07000693 Crown Point Road: Stevens Site South Road Segment, (Crown Point Road MPS) Address Restricted, Proctor, 07000694 MASSACHUSETTS National Park Service VerDate Aug<31>2005 VERMONT Pulaski County Gover–Hardin House, 307 W. Mt. Vernon St., Somerset, 07000674 DEPARTMENT OF THE INTERIOR Jkt 211001 33771 Worcester County Pan Burying Ground, 477 Main St., Bolton, 07000682 MISSOURI Cape Girardeau County Cape Girardeau Commercial Historic District (Boundary Increase), (Cape Girardeau, Missouri MPS) 101 N. Main St., Cape Girardeau, 07000683 TENNESSEE Davidson County McGavock—Gatewood Webb House, 908 Meridian St., Nashville, 07000688 Sevier County Settlement School Community Outreach Historic District, (Pi Beta Phi Settlement School MPS) 556 Parkway, Gatlinburg, 07000686 White Oak Flats Cemetery, Cemetery Rd., Gatlinburg, 07000685 Shelby County Vollintine Hills Historic District, (Memphis MPS) Roughly bounded by Bollintine, Brown, McLean, and Evergreen, Memphis, 07000684 PO 00000 Frm 00037 Fmt 4703 Sfmt 4703 Office on Violence Against Women; Agency Information Collection Activities: Extension of a Currently Approved Collection 60-Day Notice of Information Collection Under Review: Semi-Annual Progress Report for Grants to Reduce Violent Crimes Against Women on Campus Program ACTION: The Department of Justice, Office on Violence Against Women (OVW) will be submitting the following information collection request to the Office of Management and Budget (OMB) for review and approval in accordance with the Paperwork Reduction Act of 1995. Comments are encouraged and will be accepted for ‘‘sixty days’’ until August 20, 2007. This process is conducted in accordance with 5 CFR 1320.10. Written comments and/or suggestions regarding the items contained in this notice, especially the estimated public burden and associated response time, should be directed to The Office of Management and Budget, Office of Information and Regulatory Affairs, Attention Department of Justice Desk Officer, Washington, DC 20503. Additionally, comments may be submitted to OMB via facsimile to (202) 395–5806. E:\FR\FM\19JNN1.SGM 19JNN1

Agencies

[Federal Register Volume 72, Number 117 (Tuesday, June 19, 2007)]
[Notices]
[Pages 33768-33771]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 07-2991]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service


Notice of the Annual Price Threshold Determination

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Notice of annual price threshold determination and annual 
average oil and gas market price calculations, along with their effects 
for the Gulf of Mexico royalty relief programs.

-----------------------------------------------------------------------

SUMMARY: This notice provides the official MMS documentation of which 
Gulf of Mexico price thresholds have been exceeded by annual market 
prices for oil or gas, by lease vintage, for calendar year 2006. This 
notice also explains in detail how MMS calculates the annual oil and 
gas prices and applicable price thresholds used to determine whether 
royalty relief applies in calendar year 2006 for our various deepwater 
and deep depth royalty relief programs.

FOR FURTHER INFORMATION CONTACT: Marshall Rose, Chief, Economics 
Division at (703) 787-1536.

SUPPLEMENTARY INFORMATION: By various laws (Outer Continental Shelf 
Lands Act, Deep Water Royalty Relief Act, Energy Policy Act) and 
regulations (30 CFR 203.47, 203.54, 203.78, 260.110, and 260.122), MMS 
has authority to impose price thresholds for royalty relief. As 
prescribed in applicable regulations or lease terms, notwithstanding 
any provisions for royalty relief, companies are required to pay 
royalties for those calendar years when annual average New York 
Mercantile Exchange (NYMEX) market prices for oil or gas exceed the 
adjusted price thresholds levels. As a courtesy, MMS tracks, 
calculates, and posts on its website a variety of relevant information 
about applicable oil and gas prices and the price threshold levels to 
be used in determining whether a particular lease continues to be 
eligible for deep gas, deep water, or other royalty relief. The 
information contained in this published notice was posted on MMS Web 
site previously.
    The following table represents the official MMS price threshold and 
market price calculation determinations made for calendar year 2006. 
Any subsequent inflation adjustments or market price adjustments will 
not affect these official results or their implication for royalty 
relief on the designated categories of leases.

                      Applicable Price Thresholds and Market Prices for Calendar Year 2006
----------------------------------------------------------------------------------------------------------------
                                                           Annual average  Adjusted price
                                     Lease vintage (sales    NYMEX price      threshold        Royalty relief
              Product                      held in)         ($/bbl or $/    level  ($/bbl        suspended
                                                               mmbtu)        or $/mmbtu)
----------------------------------------------------------------------------------------------------------------
Deepwater oil.....................  Before 1996; 1996-             $66.22          $35.75  Yes
                                     1997; 2000; 2002-3/
                                     2004.

[[Page 33769]]

 
Deepwater oil.....................  2001.................           66.22           32.06  Yes
Deepwater oil.....................  8/2004-2006..........           66.22           41.36  Yes
Deepwater gas.....................  Before 1996; 1996-               6.99            4.47  Yes
                                     1997; 2000; 2002-3/
                                     2004.
Deepwater gas.....................  2001.................            6.99            4.00  Yes
Deepwater gas.....................  8/2004-2006..........            6.99            6.88  Yes
Deep gas..........................  3/2001...............            6.99            4.00  Yes
Deep gas..........................  8/2001-2003..........            6.99            5.72  Yes
Deep gas..........................  2004-2006............            6.99            9.88  No
Deep gas..........................  Reg 30 CFR 203.47....            6.99            9.88  No
----------------------------------------------------------------------------------------------------------------
bbl = barrel, mmbtu = million British Thermal Units.

Technical Documentation

    The data and methodology used for making the 2006 calculations and 
determinations are discussed below. This same information for all years 
since 1996 is available at the Economics Division Web site http://
www.mms.gov/econ/DWRRAPrice1.htm. Additional information and notes 
about understanding this Web site are included at the end of this 
notice.

Methodology for Calculation of the Actual Annual Average NYMEX Nearby 
Delivery Price

    1. We use the price for the nearby delivery month. That is, the 
price for the first contract or earliest month that you can get the 
delivery/inventory for buying and selling today's product. For example, 
on September 1, 2006, the nearby delivery month was October 2006. There 
are prices for other delivery months that can be bought and sold on 
September 1, 2006, such as November 2006, December 2006, etc., but the 
``nearby delivery month'' would be October 2006. However, the nearby 
delivery month is not always the next month because trading days may 
differ for oil and gas futures. For example, on September 28, 2006, the 
nearby delivery month was November 2006.
    2. The daily NYMEX closing price is listed as the settle price at 
the end of business trading hours for each commodity. These are listed 
at http://www.nymex.com and also summarized at http://www.oilnergy.com.
    3. The daily closing average is used to calculate the monthly 
average. For holidays and weekends, we use the previous business day's 
closing average. For example, Table A illustrates the calculation of 
the average NYMEX oil price for the month of September 2006. (Note--
this methodology is different from the Minerals Revenue Management's 
Royalty In-Kind Program that excludes weekends and holidays.) Our 
analysis indicates that inclusion or exclusion of weekends and holidays 
does not bias the annual average price calculation in either direction. 
We chose to include the weekends and holidays, as highlighted in Table 
A, because our source summarizes the monthly price data with the 
inclusion.

                             Table A.--Example of Monthly Average Price Calculation
----------------------------------------------------------------------------------------------------------------
                                                       Daily                                             Daily
                                                      closing                                           closing
                 Day                       Date      price  ($/           Day                Date      price  ($/
                                                        bbl)                                              bbl)
----------------------------------------------------------------------------------------------------------------
Friday...............................      9/1/2006     $69.19  Saturday...............     9/16/2006     $63.33
Saturday.............................      9/2/2006      69.19  Sunday.................     9/17/2006      63.33
Sunday...............................      9/3/2006      69.19  Monday.................     9/18/2006      63.80
Monday (Holiday).....................      9/4/2006      69.19  Tuesday................     9/19/2006      61.66
Tuesday..............................      9/5/2006      68.60  Wednesday..............     9/20/2006      60.46
Wednesday............................      9/6/2006      67.50  Thursday...............     9/21/2006      61.59
Thursday.............................      9/7/2006      67.32  Friday.................     9/22/2006      60.55
Friday...............................      9/8/2006      66.25  Saturday...............     9/23/2006      60.55
Saturday.............................      9/9/2006      66.25  Sunday.................     9/24/2006      60.55
Sunday...............................     9/10/2006      66.25  Monday.................     9/25/2006      61.45
Monday...............................     9/11/2006      65.61  Tuesday................     9/26/2006      61.01
Tuesday..............................     9/12/2006      63.76  Wednesday..............     9/27/2006      62.96
Wednesday............................     9/13/2006      63.97  Thursday...............     9/28/2006      62.76
Thursday.............................     9/14/2006      63.22  Friday.................     9/29/2006      62.91
Friday...............................     9/15/2006      63.33  Saturday...............     9/30/2006      62.91
                                      --------------------------------------------------------------------------
    Average..........................  ............  .........  .......................  ............      64.29
----------------------------------------------------------------------------------------------------------------


[[Page 33770]]

    4. The monthly average is used to calculate the annual average. For 
example, Table B illustrates the calculation of the NYMEX oil price for 
2006. The calculation for the year-to-date average consists of the 
monthly averages so far in the year. The dollar amount of the result is 
rounded to the nearest tenth decimal point (i.e., cents).

          Table B. Example of Annual Average Price Calculation
------------------------------------------------------------------------
                                                               Average
                                                               closing
                           Month                              price ($/
                                                                 bbl)
------------------------------------------------------------------------
January....................................................       $65.33
February...................................................        62.02
March......................................................        62.89
April......................................................        70.11
May........................................................        70.86
June.......................................................        71.03
July.......................................................        74.45
August.....................................................        73.11
September..................................................        64.29
October....................................................        59.22
November...................................................        59.14
December...................................................        62.22
                                                            ------------
    Average................................................        66.22
------------------------------------------------------------------------

Methodology for Calculation of the Applicable Oil and Natural Gas Price 
Thresholds

    1. The price thresholds are estimates until they are locked in for 
a calendar year based on the most current inflation data available 
after the close of the year. In conjunction with the calculation of the 
annual market prices for oil and gas above, once the price thresholds 
are locked in, MMS makes an official determination regarding whether 
these market prices have exceeded the applicable price thresholds for 
the calendar year for a given vintage of lease and royalty relief 
program. After this official MMS determination is made, any subsequent 
revisions in the underlying source of the inflation figures will not 
affect the locked-in price thresholds or the determination of 
eligibility for royalty relief for that calendar year.
    2. The source for inflation data is the Department of Commerce, 
Bureau of Economic Analysis (BEA) http://www.bea.gov. U.S. Economic 
Accounts--Gross Domestic Product (GDP). National Income and Products 
Account (NIPA) Table 1.1.9. The 4th quarter implicit price deflator is 
usually not available from BEA until March of the subsequent calendar 
year.
    3. The implicit price deflator for GDP is used to calculate the 
applicable annual inflation rate, as illustrated in Table C. The 
deflator from the applicable year is divided by the deflator from the 
previous year and subtracted by one. For example, the inflation rate 
used to set the 2003 price threshold is calculated as {(106.40/104.19) 
- 1 = 2.1%{time} 

                                Table C.--Inflation Rates (Current and Locked-In)
                                             [Derived from BEA data]
----------------------------------------------------------------------------------------------------------------
                                        Implicit price     Implicit price
            Calendar year              deflator for GDP   deflator for GDP    Current annual    Locked-in annual
                                         ( base=1996)       (base=2000)       inflation rate     inflation rate
----------------------------------------------------------------------------------------------------------------
1994................................              96.01  .................  .................  .................
1995................................              98.10  .................  .................  .................
1996................................             100.00  .................  .................  .................
1997................................             101.95  .................  .................  .................
1998................................             103.20  .................  .................  .................
1999................................             104.65  .................  .................  .................
2000................................             107.04             100.00  .................  .................
2001................................  .................             102.40                2.2                2.3
2002................................  .................             104.19                1.2                1.2
2003................................  .................             106.40                2.1                1.6
2004................................  .................             109.43                2.8                2.3
2005................................  .................             112.74                3.0                3.5
2006................................  .................             116.04                2.9                2.9
----------------------------------------------------------------------------------------------------------------

    4. Because price thresholds are fixed for previous years, the 
current inflation rate displayed in Table C above may not correspond 
precisely to the rate actually employed to calculate previous price 
thresholds. For example, the GDP deflator posted on the BEA Web site in 
March 2007 shows an inflation rate for 2004 of 2.8 percent. However, 
back in March 2005, when the 2004 price threshold was locked-in, the 
BEA Web site showed an inflation rate of 2.3 percent, resulting in a 
change for the deepwater oil price threshold for lease vintage 1996-
2000*; 2002-3/2004*, as shown in the Deepwater Table on the Web site, 
from $32.80/bbl in 2003 to $33.55/bbl in 2004. Note that the figures 
that were shown on the BEA Web site in March of each year would be 
consistent with the adjustments made in the price thresholds from year 
to year. Rounding explains any remaining small differences between 
calculated locked-in inflation rates and those rates depicted on the 
MMS Web site. Therefore, to replicate the calculation for previous 
price thresholds, use the locked-in inflation rate. To replicate the 
calculation for the estimated price threshold, prior to March of the 
subsequent year, use the current inflation rate.

Additional Information and Notes About the Web Site

    1. The MMS will estimate the average market price at which oil or 
gas would have to sell during the remainder of the calendar year for 
the estimated price threshold to be exceeded for that year. If that 
estimated market price is shown in the table as a negative number, the 
average price at which oil or gas would have to be sold during the rest 
of the calendar year as of that time is guaranteed to exceed the 
estimated price threshold for the calendar year.
    2. The bold font shown for selected actual annual market prices 
indicates years in which at least some leases were not eligible for 
royalty relief because actual prices exceeded the applicable price 
thresholds set for those leases. For example, in calendar year 2004, 
the actual average price of natural gas of $6.18 (per million Btu) 
exceeded the

[[Page 33771]]

shallow water, deep natural gas price threshold levels of $3.76 for 
leases issued in Sale 178 (2001), and $5.37 for leases issued in all 
other Gulf of Mexico Sales held from 2001-2003 that did not exercise 
the option to switch terms offered under 30 CFR 203.48.
    3. Production generated royalty-free under the deep gas program 
counts against the remaining royalty suspension volume, with one 
exception. That exception involves production from March 1, 2004, 
through May 2, 2004, from deep wells that qualified for royalty 
suspension under 30 CFR 203.40 through 48 (see Federal Register, Volume 
69, Number 84, page 24055).
    4. Regulations pertaining to price thresholds include 30 CFR 
203.47, 203.54, 203.78, 260.110, and 260.122.

    Dated: May 22, 2007.
Chris C. Oynes,
Associate Director for Offshore Minerals Management.
[FR Doc. 07-2991 Filed 6-18-07; 8:45 am]
BILLING CODE 4310-MR-P