Rulemaking Public Comments

Establishing Oil Value for Royalty Due on Federal Leases

68 FR 7086--February 12, 2003

Summary: The Minerals Management Service is proposing further changes to its proposed rulemaking regarding the valuation, for royalty purposes, of crude oil produced from Federal leases. MMS is proposing to: eliminate MMS-published differentials; change the way that actual costs of transportation are calculated; change the definition of "affiliate" because of a judicial decision in a case decided after the close of the most recent comment period; issue binding value determinations; and add specific regulatory language regarding the issue of "second guessing" a sale under an arm's-length contract. These amendments are intended to simplify and improve the proposed rule.

Submitted on behalf of: (142KB)
Alaska Wilderness League,
American Federation of Government Employees
American Federation of State, County & Municipal Employees (AFSCME),
American Lands Alliance, American Oceans Campaign,
American Rivers, Better Government Association,
Common Cause, Consumer Federation of America,
Council of Chief State School Officers, Friends of the Earth,
Government Accountability Project, Greenpeace, Mineral Policy Center,
Native American Rights Fund, Natural Resources Defense Council,
Navajo Nation, Ozone Action, Project On Government Oversight,
Public Citizen Critical Mass Energy Project,
Public Employees for Environmental Responsibility
Service Employees International Union,
Taxpayers for Common Sense, U.S. PIRG

Volume 1 & Volume II, and Appendices A (525KB)
Appendices B, C, D, and E (321KB)
Comments of the American Petroleum Institute,
Independent Petroleum Association of America,
Domestic Petroleum Council,
U.S. Oil & Gas Association,
Independent Petroleum Association of Mountain States,
Western States Petroleum Association, and
California Independent Producers Association

Anadarko Petroleum Corporation (27KB)

BP Amoco Corporation (264KB)

Barents Group, LLC (Part 1) (1401KB)
Appendix (Part 2) (341KB)
On behalf of: Independent Petroleum Association of America, Independent Petroleum Association of Mountain States,
Chevron U.S.A. Inc., Conoco Inc., Marathon Oil Company, Oxy USA Inc.