Notice2021-28045
States' Decisions on Participating in Accounting and Auditing Relief for Federal Oil and Gas Marginal Properties
Primary source
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Published
December 27, 2021
Effective
January 1, 2022
Issuing agencies
Interior DepartmentNatural Resources Revenue Office
Abstract
In accordance with Office of Natural Resources Revenue (ONRR) regulations, ONRR provides two types of accounting and auditing relief for Federal oil and gas production from marginal properties: (1) The cumulative royalty reports and payments relief option, which allows a lessee or designee to submit one royalty report and payment for the calendar year's production; and (2) other requested relief, which allows a lessee or designee to request any type of accounting and auditing relief that is appropriate for production from the marginal property and meets certain requirements. By October 1 of each calendar year, ONRR provides a list of qualifying marginal Federal oil and gas properties to the States receiving a portion of Federal royalties from those properties. Each State then decides whether to participate in neither, one, or both relief options. This Notice provides the public each State's decision on whether to participate in marginal property relief.
Full Text
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<title>Federal Register, Volume 86 Issue 245 (Monday, December 27, 2021)</title>
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[Federal Register Volume 86, Number 245 (Monday, December 27, 2021)]
[Notices]
[Page 73314]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-28045]
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DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue
[Docket No. ONRR-2011-0002; DS63644000 DRT000000.CH7000 223D1113RT]
States' Decisions on Participating in Accounting and Auditing
Relief for Federal Oil and Gas Marginal Properties
AGENCY: Office of Natural Resources Revenue, Interior.
ACTION: Notice.
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SUMMARY: In accordance with Office of Natural Resources Revenue (ONRR)
regulations, ONRR provides two types of accounting and auditing relief
for Federal oil and gas production from marginal properties: (1) The
cumulative royalty reports and payments relief option, which allows a
lessee or designee to submit one royalty report and payment for the
calendar year's production; and (2) other requested relief, which
allows a lessee or designee to request any type of accounting and
auditing relief that is appropriate for production from the marginal
property and meets certain requirements. By October 1 of each calendar
year, ONRR provides a list of qualifying marginal Federal oil and gas
properties to the States receiving a portion of Federal royalties from
those properties. Each State then decides whether to participate in
neither, one, or both relief options. This Notice provides the public
each State's decision on whether to participate in marginal property
relief.
DATES: Effective January 1, 2022.
FOR FURTHER INFORMATION CONTACT: Mr. Robert Sudar, Market and Spatial
Analytics, Coordination, Enforcement, Valuations, and Appeals Division,
ONRR, at (303) 231-3511; or by email to <a href="/cdn-cgi/l/email-protection#7a2815181f080e54290f1e1b083a15140808541d150c"><span class="__cf_email__" data-cfemail="17457875726563394462737665577879656539707861">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: Pursuant to the Federal Oil and Gas Royalty
Simplification and Fairness Act of 1996 (30 U.S.C. 1726) and 30 CFR
part 1204, subpart C, ONRR and States can relieve the lessee of a
marginal Federal oil and gas property from certain reporting,
accounting, and auditing requirements. ONRR's rules under 30 CFR
1204.202 and 1204.203 authorize two relief options: (1) Cumulative
royalty reports and payments relief option, which allows a lessee or
designee to submit one royalty report and payment during a calendar
year; and (2) other requested relief, which allows a lessee or designee
to request any type of appropriate marginal property accounting and
auditing relief that meets the requirements under Sec. 1204.5 and is
not prohibited under Sec. 1204.204.
To qualify for the first relief option, cumulative royalty reports
and payments relief option, properties must produce less than 1,000
barrels-of-oil-equivalent (BOE) per year for the base period (July 1,
2020 through June 30, 2021). Annual reporting relief will begin January
1, 2022, with the annual report and payment due February 28, 2023. If a
lessee has an estimated payment on file, the payment due date is March
31, 2023. To qualify for the second relief option, other requested
relief, the combined equivalent production of the marginal properties
during the base period must equal an average daily well production of
less than 15 BOE per well per day, as calculated under 30 CFR
1204.4(c).
Each State makes an annual determination as to whether it will
participate in neither, one, or both relief options. This Notice
fulfills the requirement in ONRR's rules to publish a notice of the
State's ``intent to allow or not allow certain relief options . . . in
the Federal Register no later than 30 days before the beginning of the
applicable calendar year.'' See 30 CFR 1204.208(f).
The following table shows the States with qualifying marginal
properties and those States' decisions on whether to participate in
neither, one, or both relief options for calendar year 2022. An ``N/A''
means that no properties within the State met that condition for that
type of relief:
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Cumulative royalty Other accounting
report and payment and auditing
State relief (less than relief (less than
1,000 BOE per 15 BOE per well
year) per day)
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Alabama......................... YES............... YES.
Arkansas........................ N/A............... YES.
California...................... NO................ NO.
Colorado........................ NO................ NO.
Kansas.......................... NO................ NO.
Louisiana....................... YES............... YES.
Michigan........................ YES............... YES.
Montana......................... NO................ NO.
Nebraska........................ N/A............... NO.
Nevada.......................... YES............... YES.
New Mexico...................... NO................ YES.
North Dakota.................... YES............... YES.
Oklahoma........................ NO................ NO.
South Dakota.................... YES............... YES.
Utah............................ NO................ NO.
Wyoming......................... YES............... NO.
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Pursuant to 30 U.S.C. 1726(c), a Federal oil and gas property
located in a State where ONRR does not share a portion of Federal
royalties with that State (that is, for 2022, a State not listed in the
table above) is eligible for relief if it qualifies as a marginal
property. For more information on how to obtain relief, please refer to
30 CFR 1204.205.
Unless the information that ONRR receives is proprietary data, all
correspondence, records, or information received in response to this
notice may be subject to disclosure under the Freedom of Information
Act (FOIA, 5 U.S.C. 552 et seq.). If applicable, please highlight the
proprietary portions, including any supporting documentation, or mark
the page(s) containing proprietary data. ONRR protects proprietary
information under the Trade Secrets Act (18 U.S.C. 1905), FOIA
Exemption 4 (5 U.S.C. 552(b)(4)), and the Department of the Interior's
FOIA regulations (43 CFR part 2).
Authority: Federal Oil and Gas Royalty Management Act of 1982, 30
U.S.C. 1701 et seq., as amended by Federal Oil and Gas Royalty
Simplification and Fairness Act of 1996 (RSFA, Pub. L. 104-185--Aug.
13, 1996, as corrected by Pub. L. 104-200--Sept. 22, 1996).
Kimbra G. Davis,
Director, Office of Natural Resources Revenue.
[FR Doc. 2021-28045 Filed 12-23-21; 8:45 am]
BILLING CODE 4335-30-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.