Federal Register - September 30, 2021
Version en texte Qu'est-ce que c'est?Dateas est un site Web indépendant, non affilié à un organisme gouvernemental. La source des documents PDF que nous publions est l'agence officielle indiquée dans chacun d'eux. Les versions en texte sont des transcriptions non officielles que nous faisons pour fournir de meilleurs outils d'accès et de recherche d'informations, mais peuvent contenir des erreurs ou peuvent ne pas être complètes.
Source: Federal Register
Federal Register / Vol. 86, No. 187 / Thursday, September 30, 2021 / Rules and Regulations this withdrawal. The table breaks out the impacts to Federal and State
disbursements based on the typical distributions noted in the table above
54067
and the appropriate product weightings and the location of the affected leases.
WITHDRAWAL OF THE 2020 RULE: ANNUAL IMPACT TO ROYALY COLLECTIONS, THE FEDERAL GOVERNMENT, AND STATES
Impact to royalty collections
Rule provision
Federal portion
State portion
Index-Based Valuation Method Extended to Arms-Length Gas Sales
Index-Based Valuation Method Extended to Arms-Length NGL Sales
High to Midpoint Index Price for Non-Arms-Length Gas Sales
Transportation Deduction Non-Arms-Length Index-Based Valuation Method
Extraordinary Processing Allowance
Allowance for Certain OCS Gathering Costs
$6,800,000
660,000
5,060,000
8,030,000
11,130,000
32,900,000
$4,180,000
430,000
3,110,000
4,930,000
5,680,000
31,320,000
$2,620,000
230,000
1,950,000
3,100,000
5,450,000
1,580,000
Total
64,600,000
49,700,000
14,900,000
Note: Totals may not add due to rounding.
Federal Oil and Gas Amendments With No Estimated Change to Royalty or Regulatory Costs Change 1: Default Provision Applicable to Federal Oil and Gas The 2016 Valuation Rule added the default provision to ONRR regulations.
The 2020 Rule removed the default provision from ONRR regulations. In instances of misconduct, breach of a lessees duty to market, or other situations where royalty value cannot be determined under ONRRs valuation rules, ONRR can use the Secretarys statutory authority and the authority granted to the Secretary under the terms of the applicable leases to determine Federal oil and gas royalty value, as ONRR would have done prior to adoption of the 2016 Valuation Rule.
ONRR has never found an impact to
royalty collections on account of the default provision.
Federal and Indian Coal In the 2020 Rule, ONRR estimated there will be no change to royalty collections for the Federal Government, Indian Tribes, individual Indian mineral owners, States, or industry for Federal and Indian coal. ONRR has not changed or adjusted this estimate in this final rule. There is no impact to royalty collections on account of the coal provisions due to this final rules withdrawals.
VI. Procedural Matters A. Regulatory Planning and Review E.O. 12866 and 13563
OIRA of OMB will review all significant rulemakings. OMB has determined that this final rule is a significant regulatory action under E.O.
12866. The primary effect of this final rule is on royalty payments. ONRR
expects that this final rule will largely result in transfers, which are described in the table below. ONRR also anticipates that this final rule will result in annual administrative cost savings of $2.85 million and a one-time administrative cost of $243,000.
Please note that, unless otherwise indicated, numbers in the tables in this section are rounded to the nearest thousand and that the totals may not match due to rounding.
E.O. 12866 provides that the Office of Information and Regulatory Affairs
SUMMARY OF ESTIMATED CHANGES TO ROYALTY COLLECTIONS FROM THE WITHDRAWAL OF THE 2020 RULE
Annual Net change in royalties paid by lessees
LOTTER on DSK11XQN23PROD with RULES1
Rule provision Index-Based Valuation Method Extended to Arms-Length Gas Sales
Index-Based Valuation Method Extended to Arms-Length NGL Sales
High to Midpoint Index Price for Non-Arms-Length Gas Sales
Transportation Deduction Non-Arms-Length Index-Based Valuation Method
Extraordinary Processing Allowances
Allowances for Certain OCS Gathering Costs
$6,800,000
660,000
5,062,000
8,033,000
11,131,000
32,900,000
Total
64,600,000
To estimate the present value of potential administrative costs/savings to industry, ONRR looked at two potential time periods to represent various production lives of oil and gas leases.
ONRR applied three percent and seven percent discount rates as described in OMB Circular A4, using a base year of 2021, and reported in 2020 dollars. As described above, ONRR estimates a cost
to industry in the first year and incursion of administrative cost savings each year thereafter.
SUMMARY OF ANNUAL ADMINISTRATIVE IMPACTS TO INDUSTRY FROM THE WITHDRAWAL OF 2020 RULE
Rule provision
Cost cost savings
Administrative Cost Savings for Index-Based Valuation Method for Arms-Length Gas & NGL Sales
$1,077,000
VerDate Sep<11>2014
17:35 Sep 29, 2021
Jkt 253001
PO 00000
Frm 00039
Fmt 4700
Sfmt 4700
E:FRFM30SER1.SGM
30SER1
