Notice of the Annual Price Threshold Determination, 26879-26882 [E9-13094]

Download as PDF 26879 Federal Register / Vol. 74, No. 106 / Thursday, June 4, 2009 / Notices practical utility; (2) Evaluate the accuracy of the agency’s estimate of the burden of the proposed collection of information; (3) Enhance the quality, utility, and clarity of the information to be collected; and (4) Minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated collection techniques or other forms of information technology, e.g., permitting electronic submission of responses. This notice also lists the following information: Title of Proposal: Request for Acceptance of Changes in Approved Drawings and Specifications. OMB Approval Number: 2502–0117. Form Numbers: HUD–92577. Description of the Need for the Information and Its Proposed Use: Builders request approval for changes to accepted drawings and specifications of proposed construction properties as required by homebuyers, or determined by the builder to increase market appeal. Builders submit the forms to lenders, who review them and submit them to HUD for approval. Frequency of Submission: On occasion. Number of respondents Annual responses 10,000 10,000 Reporting burden .............................................................................. Total Estimated Burden Hours: 5,000. Status: Extension of currently approved collection. Authority: Section 3507 of the Paperwork Reduction Act of 1995, 44 U.S.C. 35, as amended. Dated: May 28, 2009. Lillian L. Deitzer, Departmental Reports Management Officer, Office of the Chief Information Officer. [FR Doc. E9–13096 Filed 6–3–09; 8:45 am] BILLING CODE 4210–67–P DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–5300–N–05] Notice of Availability: Notice of Funding Availability (NOFA) for Fiscal Year (FY) 2009 Indian Community Development Block Grant (ICDBG) Program for Indian Tribes and Alaska Native Villages AGENCY: Office of the Assistant Secretary for Public and Indian Housing, Office of Native American Programs, HUD. ACTION: Notice. SUMMARY: HUD announces the availability of funds and the funding criteria for the Fiscal Year (FY) 2009 Indian Community Development Block Grant (ICDBG) Program for Indian Tribes and Alaska Native Villages. The Notice of Funding Availability (NOFA) makes approximately $65 million available under the Department of Housing and Urban Development Appropriations Act 2009 (Pub. L. 111– 8, approved March 11, 2009). Applicants for assistance under this NOFA must address applicable requirements in the FY 2009 ICDBG NOFA and the Notice of HUD’s Fiscal Year 2009 Notice of Funding Availability (NOFA) Policy Requirements and General Section to the HUD’s FY2009 NOFAs for VerDate Nov<24>2008 15:16 Jun 03, 2009 Jkt 217001 Discretionary Programs; Notice (also known as the General Section) published on December 29, 2008 (73 FR 79548), as amended on April 16, 2009 (74 FR 17685). Applicants should take particular note that they should follow the application submission instructions contained in the NOFA and not use those in the General Section. The notice providing information regarding the application process, funding criteria and eligibility requirements is available on the HUD Web site at http:// www.hud.gov/offices/pih/ih/grants/ icdbgl.cfm. FOR FURTHER INFORMATION CONTACT: Questions regarding specific program requirements should be directed to your Area Office of Native American Programs. A contact list for each Area ONAP can be accessed at http:// www.hud.gov/offices/pih/ih/codetalk/ onap/map/nationalmap.cfm. Persons with speech or hearing impairments may access this telephone number via TTY by calling the toll-free Federal Information Relay Service during working hours at 800–877–8339. Dated: May 18, 2009. Paula O. Blunt, General Deputy Assistant Secretary for Public and Indian Housing. [FR Doc. E9–13081 Filed 6–1–09; 4:15 pm] BILLING CODE 4210–67–P 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. PO 00000 Frm 00049 Fmt 4703 Sfmt 4703 × Hours per response 0.5 = Burden hours 5,000 SUMMARY: This notice provides the official MMS determination of which Gulf of Mexico price thresholds have been exceeded by annual market prices for oil or gas, by lease vintage, for calendar year 2008. 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 2008 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 203.48, 203.54, 203.78, 260.110, and 260.122), MMS has authority to impose price thresholds at which otherwise applicable royalty relief is suspended. 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. Production generated royalty-free counts against the remaining royalty suspension volume, with one exception. That exception involves deep-gas production from March 1, 2004, through May 2, 2004, from deep wells that qualified for royalty suspension under 30 CFR 203.40 through 203.48 (see 69 FR 24055). As a courtesy, MMS tracks, calculates, and posts on its Web site 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 E:\FR\FM\04JNN1.SGM 04JNN1 26880 Federal Register / Vol. 74, No. 106 / Thursday, June 4, 2009 / Notices notice was previously posted on the MMS Web site. Beginning in the second quarter of each year, 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. The following table represents the official MMS price threshold and market price calculation determinations made for calendar year 2008. 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 2008 Annual average NYMEX price ($/bbl or $/MMBtu) Product Lease vintage (sale held in) Deepwater oil ............................................ Adjusted price threshold level ($/bbl or $/MMBtu) 99.74 37.18 Yes. 99.74 99.74 8.89 33.33 43.28 4.65 Yes. Yes. Yes. 8.89 8.89 8.89 8.89 8.89 8.89 8.89 4.17 7.21 4.17 5.95 10.37 10.37 and 4.65 4.65 Yes. Yes. Yes. Yes. No. No 4. Yes. Before 1996; 1996–1997 1; 20001; 2002– 3/2004; 2007–2008. 2001 .......................................................... 8/2004–2006 ............................................. Before 1996; 1996–1997 1; 20001; 2002– 3/2004; 2007–2008. 2001 .......................................................... 8/2004–2006 ............................................. 3/2001 2 .................................................... 8/2001–2003 2 ........................................... Before 2001, 2001–2003 2, 2004–2008 ... Before 2001, 2001–2003 2, 2004–2008 ... All years .................................................... Deepwater oil ............................................ Deepwater oil ............................................ Deepwater gas .......................................... Deepwater gas .......................................... Deepwater gas .......................................... Deep gas .................................................. Deep gas .................................................. Deep gas 3 ................................................ Deep gas 4 ................................................ Deep gas 5 ................................................ Royalty relief suspended bbl = barrel, MMBtu = million British Thermal Units, bcf = billion cubic feet. 1 Price thresholds do not apply to leases issued in deepwater during the years 1998–1999 due to an administrative oversight. If the KerrMcGee v. DOI, Fifth Circuit Court Decision (1/12/09) is upheld, price thresholds will not apply to deepwater leases issued during the years 1996– 2000. 2 Leases issued in water 0–200 meters deep during 2001–2003 had the option to convert from lower price thresholds under lease terms to higher price thresholds set forth in the regulations. 3 Applies to qualified deep wells on leases in water 0–200 meters deep that spudded after 3/26/2003 and produced before 5/3/2009, and to qualified ultra-deep wells on leases in water 0–200 meters deep that spudded between 3/26/2003 and 5/17/2007 and produced before 5/3/2009. 4 Applies to qualified ultra-deep wells on leases in water 0–200 meters deep that spudded on or after 5/18/2007 and produced before 5/03/09. The higher price threshold applies to the first 25 bcf of royalty relief; the lower price threshold applies to the next 10 bcf of royalty relief. For qualified ultra-deep wells on leases in water 0–200 meters deep that spudded on or after 5/3/2009, the lower price threshold applies to the entire 35 bcf of royalty relief. 5 Applies to qualified deep wells on leases in water 200–400 meters deep that spudded on or after 5/18/2007 and produced before 5/3/2013, and to qualified ultra-deep wells on leases in water 200–400 meters deep that spudded on or after 5/18/2007. Technical Documentation The data and methodology used for making the 2008 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/econpt.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 or front 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 October 1, 2007, the nearby delivery month was November 2007. There are prices for other delivery months that can be bought and sold on October 1, 2007, such as December 2007, January 2008, etc., but the ‘‘nearby delivery month’’ would be November 2007. However, the nearby delivery month is not always the next month because the last trading day of the month differs for oil and gas futures. For example, on March 27, 2008, the nearby delivery month for light sweet crude oil is May 2008 while for natural gas it is still April 2008. 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 December 2008 (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, to avoid the necessity to keep track of actual trading days each month all year, and because our source summarizes the monthly price data with the inclusion. TABLE A—EXAMPLE OF MONTHLY AVERAGE PRICE CALCULATION Day Date Monday ........................................................................................................................................................ Tuesday ....................................................................................................................................................... Wednesday .................................................................................................................................................. Thursday ...................................................................................................................................................... VerDate Nov<24>2008 15:16 Jun 03, 2009 Jkt 217001 PO 00000 Frm 00050 Fmt 4703 Sfmt 4703 E:\FR\FM\04JNN1.SGM 12/1/2008 12/2/2008 12/3/2008 12/4/2008 04JNN1 Daily closing price ($/bbl) $49.28 46.96 46.79 43.67 Federal Register / Vol. 74, No. 106 / Thursday, June 4, 2009 / Notices 26881 TABLE A—EXAMPLE OF MONTHLY AVERAGE PRICE CALCULATION Day Date Daily closing price ($/bbl) Friday ........................................................................................................................................................... Saturday ....................................................................................................................................................... Sunday ......................................................................................................................................................... Monday ........................................................................................................................................................ Tuesday ....................................................................................................................................................... Wednesday .................................................................................................................................................. Thursday ...................................................................................................................................................... Friday ........................................................................................................................................................... Saturday ....................................................................................................................................................... Sunday ......................................................................................................................................................... Monday ........................................................................................................................................................ Tuesday ....................................................................................................................................................... Wednesday .................................................................................................................................................. Thursday ...................................................................................................................................................... Friday ........................................................................................................................................................... Saturday ....................................................................................................................................................... Sunday ......................................................................................................................................................... Monday ........................................................................................................................................................ Tuesday ....................................................................................................................................................... Wednesday .................................................................................................................................................. Thursday (Holiday) ...................................................................................................................................... Friday ........................................................................................................................................................... Saturday ....................................................................................................................................................... Sunday ......................................................................................................................................................... Monday ........................................................................................................................................................ Tuesday ....................................................................................................................................................... Wednesday .................................................................................................................................................. 12/5/2008 12/6/2008 12/7/2008 12/8/2008 12/9/2008 12/10/2008 12/11/2008 12/12/2008 12/13/2008 12/14/2008 12/15/2008 12/16/2008 12/17/2008 12/18/2008 12/19/2008 12/20/2008 12/21/2008 12/22/2008 12/23/2008 12/24/2008 12/25/2008 12/26/2008 12/27/2008 12/28/2008 12/29/2008 12/30/2008 12/31/2008 40.81 40.81 40.81 43.71 42.07 43.52 47.98 46.28 46.28 46.28 44.51 43.60 40.06 36.22 33.87 33.87 33.87 39.91 38.98 35.35 35.35 37.71 37.71 37.71 40.02 39.03 44.60 Average ................................................................................................................................................ .............................. 41.21 4. The monthly average is used to calculate the annual average. For example, Table B illustrates the calculation of the NYMEX oil price for 2008. 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 hundredth decimal point (i.e., cents). We do not weight the average each month by the number of days in that month, again to avoid adding superfluous complexity. TABLE B—EXAMPLE OF ANNUAL AVERAGE PRICE CALCULATION Month January ................................. February ............................... March .................................... April ....................................... May ....................................... June ...................................... July ....................................... August ................................... September ............................ VerDate Nov<24>2008 15:16 Jun 03, 2009 Average closing price ($/bbl) 92.94 94.92 105.15 112.58 125.61 134.60 134.42 116.73 104.41 Jkt 217001 TABLE B—EXAMPLE OF ANNUAL AVER- and royalty relief program. After this AGE PRICE CALCULATION—Contin- official MMS determination is made, any subsequent revisions in the ued Average closing price ($/bbl) Month October ................................. November ............................. December ............................. 76.77 57.54 41.21 Average ......................... 99.74 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 PO 00000 Frm 00051 Fmt 4703 Sfmt 4703 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: The 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 not available from BEA until late 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 2008 price threshold is calculated as {(122.42/ 119.82) ¥ 1 = 2.2%}. E:\FR\FM\04JNN1.SGM 04JNN1 26882 Federal Register / Vol. 74, No. 106 / Thursday, June 4, 2009 / Notices TABLE C—INFLATION RATES (CURRENT AND LOCKED-IN) [Derived from BEA data] Implicit price deflator for GDP (base = 1996) Calendar year 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 ............................................................................................. ............................................................................................. ............................................................................................. ............................................................................................. ............................................................................................. ............................................................................................. ............................................................................................. ............................................................................................. ............................................................................................. ............................................................................................. ............................................................................................. ............................................................................................. ............................................................................................. ............................................................................................. ............................................................................................. 4. Because price thresholds are fixed for previous years, the current inflation rate displayed on the BEA Web site (see Table C above) may not correspond precisely to the rate MMS employed to calculate previous price thresholds. For example, the GDP deflator posted on the BEA Web site in March 2008 shows an inflation rate for 2004 of 2.9 percent. However, back in March 2005, when the 2004 price threshold was locked in, the BEA Web site showed an inflation rate of 2.1 percent, which MMS used in a change for the deepwater oil price threshold for most leases, as shown in the first column of the Deepwater Table on the Web site, from $32.81/bbl in 2003 to $33.50/bbl in 2004. The figures that were shown on the BEA Web site in March of each year were used to make the adjustments 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. Dated: April 20, 2009. Chris C. Oynes, Associate Director for Offshore Energy and Minerals Management. [FR Doc. E9–13094 Filed 6–3–09; 8:45 am] BILLING CODE 4310–MR–P VerDate Nov<24>2008 15:16 Jun 03, 2009 Jkt 217001 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 .................................. .................................. .................................. .................................. .................................. .................................. .................................. .................................. .................................. .................................. .................................. .................................. .................................. .................................. 100.00 102.40 104.19 106.40 109.46 113.03 116.68 119.82 122.42 ........................ ........................ ........................ ........................ ........................ ........................ ........................ 2.4 1.7 2.1 2.9 3.3 3.2 2.7 2.2 ........................ ........................ ........................ ........................ ........................ ........................ ........................ 2.2 1.1 1.7 2.1 2.8 2.9 2.7 2.2 DEPARTMENT OF THE INTERIOR Fish and Wildlife Service [FWS–R4–ES–2009–N0089; 41910–1112– 0000–F2] Endangered and Threatened Wildlife and Plants; Permit(s); Road Construction and Associated Storm Water Retention Pond in Lake County, FL AGENCY: Fish and Wildlife Service, Interior. ACTION: Notice of receipt of application for an incidental take permit (ITP); availability of proposed low-effect habitat conservation plans (HCP); request for comment/information. SUMMARY: We, the Fish and Wildlife Service (Service), announce the availability of an incidental take permit (ITP) application and habitat conservation plan (HCP). Lake County Public Works (applicant) requests a 5year ITP under the Endangered Species Act of 1973, as amended (Act). The applicant anticipates taking approximately 0.19 acres (ac) of sand skink (Neoseps reynoldsi)—occupied habitat incidental to realignment of a county road (CR) and construction of a storm water retention pond in Lake County, Florida (project). The applicant’s HCP describes the mitigation and minimization measures the applicant proposes to address the effects of the project to the sand skink. DATES: We must receive any written comments on the ITP application and HCP on or before July 6, 2009. ADDRESSES: If you wish to review the application and HCP, you may write the Field Supervisor at our Jacksonville Field Office, 7915 Baymeadows Way, PO 00000 Frm 00052 Fmt 4703 Sfmt 4703 Suite 200, Jacksonville, FL 32256, or make an appointment to visit during normal business hours. If you wish to comment, you may mail or hand deliver comments to the Jacksonville Field Office, or you may e-mail comments to paula_sisson@fws.gov. For more information on reviewing documents and public comments and submitting comments, see SUPPLEMENTARY INFORMATION. FOR FURTHER INFORMATION CONTACT: Paula Sisson, Fish and Wildlife Biologist, Jacksonville Field Office (see ADDRESSES); telephone: 904–731–3134. SUPPLEMENTARY INFORMATION: Public Availability of Comments Before including your address, phone number, e-mail 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. Please reference permit number TE211384–0 for Lake County Public Works in all requests or comments. If you do not receive a confirmation from us that we have received your e-mail message, contact us directly at the telephone number listed under FOR FURTHER INFORMATION CONTACT. Background Due to the reduction in quality and acreage of xeric (bare, scrub-like areas with sandy soils, open canopies) upland communities, and the rapid development occurring in these areas, the sand skink is reportedly declining E:\FR\FM\04JNN1.SGM 04JNN1

Agencies

[Federal Register Volume 74, Number 106 (Thursday, June 4, 2009)]
[Notices]
[Pages 26879-26882]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-13094]


=======================================================================
-----------------------------------------------------------------------

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 determination of which 
Gulf of Mexico price thresholds have been exceeded by annual market 
prices for oil or gas, by lease vintage, for calendar year 2008. 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 2008 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 203.48, 203.54, 203.78, 260.110, and 260.122), MMS 
has authority to impose price thresholds at which otherwise applicable 
royalty relief is suspended. 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. Production 
generated royalty-free counts against the remaining royalty suspension 
volume, with one exception. That exception involves deep-gas production 
from March 1, 2004, through May 2, 2004, from deep wells that qualified 
for royalty suspension under 30 CFR 203.40 through 203.48 (see 69 FR 
24055). As a courtesy, MMS tracks, calculates, and posts on its Web 
site 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

[[Page 26880]]

notice was previously posted on the MMS Web site. Beginning in the 
second quarter of each year, 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.
    The following table represents the official MMS price threshold and 
market price calculation determinations made for calendar year 2008. 
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 2008
----------------------------------------------------------------------------------------------------------------
                                                                                 Adjusted price
                                      Lease vintage (sale     Annual average    threshold level   Royalty relief
              Product                       held in)         NYMEX price  ($/     ($/bbl or $/       suspended
                                                             bbl or $/MMBtu)         MMBtu)
----------------------------------------------------------------------------------------------------------------
Deepwater oil......................  Before 1996; 1996-                 99.74              37.18            Yes.
                                      1997 \1\; 20001;
                                      2002-3/2004; 2007-
                                      2008.
Deepwater oil......................  2001.................              99.74              33.33            Yes.
Deepwater oil......................  8/2004-2006..........              99.74              43.28            Yes.
Deepwater gas......................  Before 1996; 1996-                  8.89               4.65            Yes.
                                      1997 \1\; 20001;
                                      2002-3/2004; 2007-
                                      2008.
Deepwater gas......................  2001.................               8.89               4.17            Yes.
Deepwater gas......................  8/2004-2006..........               8.89               7.21            Yes.
Deep gas...........................  3/2001 \2\...........               8.89               4.17            Yes.
Deep gas...........................  8/2001-2003 2........               8.89               5.95            Yes.
Deep gas \3\.......................  Before 2001, 2001-                  8.89              10.37             No.
                                      2003 2, 2004-2008.
Deep gas \4\.......................  Before 2001, 2001-                  8.89     10.37 and 4.65         No \4\.
                                      2003 2, 2004-2008.
Deep gas \5\.......................  All years............               8.89               4.65            Yes.
----------------------------------------------------------------------------------------------------------------
bbl = barrel, MMBtu = million British Thermal Units, bcf = billion cubic feet.
\1\ Price thresholds do not apply to leases issued in deepwater during the years 1998-1999 due to an
  administrative oversight. If the Kerr-McGee v. DOI, Fifth Circuit Court Decision (1/12/09) is upheld, price
  thresholds will not apply to deepwater leases issued during the years 1996-2000.
\2\ Leases issued in water 0-200 meters deep during 2001-2003 had the option to convert from lower price
  thresholds under lease terms to higher price thresholds set forth in the regulations.
\3\ Applies to qualified deep wells on leases in water 0-200 meters deep that spudded after 3/26/2003 and
  produced before 5/3/2009, and to qualified ultra-deep wells on leases in water 0-200 meters deep that spudded
  between 3/26/2003 and 5/17/2007 and produced before 5/3/2009.
\4\ Applies to qualified ultra-deep wells on leases in water 0-200 meters deep that spudded on or after 5/18/
  2007 and produced before 5/03/09. The higher price threshold applies to the first 25 bcf of royalty relief;
  the lower price threshold applies to the next 10 bcf of royalty relief. For qualified ultra-deep wells on
  leases in water 0-200 meters deep that spudded on or after 5/3/2009, the lower price threshold applies to the
  entire 35 bcf of royalty relief.
\5\ Applies to qualified deep wells on leases in water 200-400 meters deep that spudded on or after 5/18/2007
  and produced before 5/3/2013, and to qualified ultra-deep wells on leases in water 200-400 meters deep that
  spudded on or after 5/18/2007.

Technical Documentation

    The data and methodology used for making the 2008 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/econpt.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 or front 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 October 1, 2007, the nearby delivery month was November 
2007. There are prices for other delivery months that can be bought and 
sold on October 1, 2007, such as December 2007, January 2008, etc., but 
the ``nearby delivery month'' would be November 2007. However, the 
nearby delivery month is not always the next month because the last 
trading day of the month differs for oil and gas futures. For example, 
on March 27, 2008, the nearby delivery month for light sweet crude oil 
is May 2008 while for natural gas it is still April 2008.
    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 December 2008 (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, to 
avoid the necessity to keep track of actual trading days each month all 
year, and because our source summarizes the monthly price data with the 
inclusion.

          Table A--Example of Monthly Average Price Calculation
------------------------------------------------------------------------
                                                         Daily closing
                Day                        Date          price ($/bbl)
------------------------------------------------------------------------
Monday............................          12/1/2008             $49.28
Tuesday...........................          12/2/2008              46.96
Wednesday.........................          12/3/2008              46.79
Thursday..........................          12/4/2008              43.67

[[Page 26881]]

 
Friday............................          12/5/2008              40.81
Saturday..........................          12/6/2008              40.81
Sunday............................          12/7/2008              40.81
Monday............................          12/8/2008              43.71
Tuesday...........................          12/9/2008              42.07
Wednesday.........................         12/10/2008              43.52
Thursday..........................         12/11/2008              47.98
Friday............................         12/12/2008              46.28
Saturday..........................         12/13/2008              46.28
Sunday............................         12/14/2008              46.28
Monday............................         12/15/2008              44.51
Tuesday...........................         12/16/2008              43.60
Wednesday.........................         12/17/2008              40.06
Thursday..........................         12/18/2008              36.22
Friday............................         12/19/2008              33.87
Saturday..........................         12/20/2008              33.87
Sunday............................         12/21/2008              33.87
Monday............................         12/22/2008              39.91
Tuesday...........................         12/23/2008              38.98
Wednesday.........................         12/24/2008              35.35
Thursday (Holiday)................         12/25/2008              35.35
Friday............................         12/26/2008              37.71
Saturday..........................         12/27/2008              37.71
Sunday............................         12/28/2008              37.71
Monday............................         12/29/2008              40.02
Tuesday...........................         12/30/2008              39.03
Wednesday.........................         12/31/2008              44.60
                                   -------------------------------------
    Average.......................  .................              41.21
------------------------------------------------------------------------

    4. The monthly average is used to calculate the annual average. For 
example, Table B illustrates the calculation of the NYMEX oil price for 
2008. 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 hundredth decimal point (i.e., cents). We do not 
weight the average each month by the number of days in that month, 
again to avoid adding superfluous complexity.

          Table B--Example of Annual Average Price Calculation
------------------------------------------------------------------------
                                                              Average
                          Month                            closing price
                                                              ($/bbl)
------------------------------------------------------------------------
January.................................................           92.94
February................................................           94.92
March...................................................          105.15
April...................................................          112.58
May.....................................................          125.61
June....................................................          134.60
July....................................................          134.42
August..................................................          116.73
September...............................................          104.41
October.................................................           76.77
November................................................           57.54
December................................................           41.21
                                                         ---------------
    Average.............................................           99.74
------------------------------------------------------------------------

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: The 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 
not available from BEA until late 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 2008 price threshold is calculated as {(122.42/119.82) 
- 1 = 2.2%{time} .

[[Page 26882]]



                                Table C--Inflation Rates (Current and Locked-In)
                                             [Derived from BEA data]
----------------------------------------------------------------------------------------------------------------
                                           Implicit price       Implicit price                       Locked-in
             Calendar year                deflator for GDP     deflator for GDP   Current annual      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             2.4             2.2
2002..................................  ...................               104.19             1.7             1.1
2003..................................  ...................               106.40             2.1             1.7
2004..................................  ...................               109.46             2.9             2.1
2005..................................  ...................               113.03             3.3             2.8
2006..................................  ...................               116.68             3.2             2.9
2007..................................  ...................               119.82             2.7             2.7
2008..................................  ...................               122.42             2.2             2.2
----------------------------------------------------------------------------------------------------------------

    4. Because price thresholds are fixed for previous years, the 
current inflation rate displayed on the BEA Web site (see Table C 
above) may not correspond precisely to the rate MMS employed to 
calculate previous price thresholds. For example, the GDP deflator 
posted on the BEA Web site in March 2008 shows an inflation rate for 
2004 of 2.9 percent. However, back in March 2005, when the 2004 price 
threshold was locked in, the BEA Web site showed an inflation rate of 
2.1 percent, which MMS used in a change for the deepwater oil price 
threshold for most leases, as shown in the first column of the 
Deepwater Table on the Web site, from $32.81/bbl in 2003 to $33.50/bbl 
in 2004. The figures that were shown on the BEA Web site in March of 
each year were used to make the adjustments 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.

    Dated: April 20, 2009.
Chris C. Oynes,
Associate Director for Offshore Energy and Minerals Management.
[FR Doc. E9-13094 Filed 6-3-09; 8:45 am]
BILLING CODE 4310-MR-P