Notice of the Annual Price Threshold Determination, 26879-26882 [E9-13094]
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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 https://
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 https://
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
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×
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
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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 https://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 https://
www.nymex.com and also summarized
at https://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 ......................................................................................................................................................
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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
($/bbl)
92.94
94.92
105.15
112.58
125.61
134.60
134.42
116.73
104.41
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TABLE B—EXAMPLE OF ANNUAL AVER- and royalty relief program. After this
AGE PRICE CALCULATION—Contin- official MMS determination is made,
any subsequent revisions in the
ued
Average closing price
($/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
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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) https://
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%}.
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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
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]]>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 https://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 https://www.nymex.com and also summarized at https://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) https://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
