Proposed Rule2023-14440
Mining of the Osage Mineral Estate for Oil and Gas
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
July 10, 2023
Effective
January 13, 2023
Issuing agencies
Interior DepartmentIndian Affairs Bureau
Abstract
The Bureau of Indian Affairs (BIA) is reopening the public comment period for the proposed rule revising the regulations governing leasing of the Osage Nation's mineral estate ("Osage Mineral Estate") for oil and gas mining. The BIA is also requesting information regarding the transportation costs for oil produced from the Osage Mineral Estate.
Full Text
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<title>Federal Register, Volume 88 Issue 130 (Monday, July 10, 2023)</title>
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[Federal Register Volume 88, Number 130 (Monday, July 10, 2023)]
[Proposed Rules]
[Pages 43482-43483]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-14440]
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DEPARTMENT OF THE INTERIOR
Bureau of Indian Affairs
25 CFR Part 226
[Docket No. BIA-2022-0006; 234A2100DD/AAKC001030/A0A501010.999900; OMB
Control Number 1076-0180, 1012-0004, 1012-0006]
RIN 1076-AF59
Mining of the Osage Mineral Estate for Oil and Gas
AGENCY: Bureau of Indian Affairs, Interior.
[[Page 43483]]
ACTION: Proposed rule; reopening of public comment period.
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SUMMARY: The Bureau of Indian Affairs (BIA) is reopening the public
comment period for the proposed rule revising the regulations governing
leasing of the Osage Nation's mineral estate (``Osage Mineral Estate'')
for oil and gas mining. The BIA is also requesting information
regarding the transportation costs for oil produced from the Osage
Mineral Estate.
DATES: The comment period for the proposed rule published on January
13, 2023 (88 FR 2430), is reopened. Comments must be received by 11:59
p.m. EST on August 18, 2023.
ADDRESSES: You may submit your comments on the proposed rule by any of
the methods listed below.
<bullet> Federal Rulemaking Portal: Please visit <a href="https://www.regulations.gov/docket/BIA-2022-0006">https://www.regulations.gov/docket/BIA-2022-0006</a> or <a href="https://www.regulations.gov">https://www.regulations.gov</a>
and enter ``RIN 1076-AF59'' in the search box and click ``Search.''
Follow the instructions for sending comments.
<bullet> Mail: U.S. Department of the Interior, Eastern Oklahoma
Region, Bureau of Indian Affairs, Attn: Regional Director, P.O. Box
8002, Muskogee, OK 74402. All submissions must include the words
``Bureau of Indian Affairs'' or ``BIA'' and ``RIN 1076-AF59.''
<bullet> Hand Delivery/Courier: U.S. Department of the Interior,
Eastern Oklahoma Region, Bureau of Indian Affairs, Attn: Regional
Director, 3100 W Peak Boulevard, Muskogee, OK 74402.
FOR FURTHER INFORMATION CONTACT: Oliver Whaley, Director, Office of
Regulatory Affairs and Collaborative Action, Office of the Assistant
Secretary--Indian Affairs, (202) 738-6065, <a href="/cdn-cgi/l/email-protection#d7b4b8babab2b9a3a497b5beb6f9b0b8a1"><span class="__cf_email__" data-cfemail="fc9f9391919992888fbc9e959dd29b938a">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: On January 13, 2023, the BIA published a
proposed rule in the Federal Register (88 FR 2430) revised 25 CFR part
226, Leasing of Osage Reservation Lands for Oil and Gas Mining, to
strengthen the BIA's management and administration of the Osage Mineral
Estate. The proposed rule would allow the BIA to strengthen management
of the Osage Mineral Estate by updating bonding, royalty payment and
reporting, production valuation and measurement, site security, and
operational requirements to address changes in technology and industry
standards that have occurred in the 47 years since the regulations were
issued.
The proposed rule would also allow the BIA to respond to
recommendations made by the Office of Inspector General, U.S.
Department of the Interior (OIG). The public comment period for the
proposed rule closed on Friday, April 7, 2023. To give the public
additional time to review the proposed revisions and provide comments,
the BIA is reopening the public comment period until Friday, August 18,
2023. Comments previously submitted on the proposed rule will be fully
considered in preparing the final rule and do not need to be
resubmitted.
The BIA also invites comments from anyone who would like to submit
information regarding transportation costs for oil produced from the
Osage Mineral Estate. The proposed rule states that the value of oil
for royalty purposes will be the greater of the NYMEX Calendar Month
Average Price of oil at Cushing, Oklahoma, or the actual selling price
for the transaction, adjusted for gravity (see the proposed 25 CFR
226.37 replacing the current 25 CFR 226.11(a)(2)). In response to the
BIA's first request for public comments on the proposed rule, some
commenters states that the NYMEX Calendar Month Average Price exceeds
what a lessee may receive from a refinery purchasing oil from the Osage
Mineral Estate. Those commenters advocated for the value of oil for
royalty purposes to be less than the NYMEX Calendar Month Average
Price.
The BIA is interested in information regarding the cost of
transporting oil from a lease within the Osage Mineral Estate to: (1) a
refinery located in Osage County, Oklahoma; and (2) a refinery located
in Cushing, Oklahoma. The BIA may consider the incremental cost of
transporting oil from the Osage Mineral Estate to Cushing, Oklahoma in
determining the method for valuing oil from the Osage Mineral Estate
for royalty purposes under any final rule.
Bryan Newland,
Assistant Secretary--Indian Affairs.
[FR Doc. 2023-14440 Filed 7-7-23; 8:45 am]
BILLING CODE 4337-15-P
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