Royalty In Kind Program

The Royalty in Kind (RIK) Program is responsible for managing Minerals Revenue Management’s (MRM) commercial oil and gas commodity sales activity. Currently, the RIK Program is competitively selling around 700 million cubic feet of natural gas per day and about 100,000 barrels of crude oil per day. Revenues from sales and other dispositions of RIK oil and gas in FY 2006 were approximately $3.75 billion.
 

Oil Sales Business Unit
This site describes the RIK crude oil program and lists sales and property information for the Unrestricted Crude Oil program, the Small Refiner program, and the Strategic Petroleum Reserve program (when active) in the Gulf of Mexico and the Pacific OCS.

Gas Sales Business Unit
This site describes the RIK natural gas program and lists sales and property information for RIK Natural Gas sales in the Gulf of Mexico, Wyoming, and the BLM Helium project in Texas.

Pre-qualification/Credit
This site explains how to pre-qualify for RIK crude oil and natural gas sales and describes how the RIK credit process works.

 Performance Measurement
This document describes how RIK measures and reports the performance of sales of crude oil and natural gas against what may be expected in the marketplace for other commercial activities.

 Five Year RIK Business Plan
This document provides the 2005-2009 Five Year Business Plan for RIK.

 RIK Risk Management Policy
This document provides the August 2005 RIK Risk Management Policy, describing the activities authorized for RIK and activities that RIK may not engage in.

RIK Studies and Reports
This site lists historical RIK reports and studies, including previous annual reports.

RIK Policy and Procedures
This site provides documents that give an overall description of the policies, processes and procedures used by the various RIK Offices to conduct their activities.

 RIK Program History
This document describes background, history,  and evolution of the RIK program.

 Organization Chart
This document provides the chart depicting how RIK is organized.

RIK Key Contacts/FAX/Mailing Addresses
This site provides RIK manager contacts, fax numbers, and overnight and regular mailing addresses.

 RIK Annual Report
This document provides the most current annual report submitted to Congress.

 RIK Statistics
This document provides pertinent RIK statistics, such as gross annual sales volumes and revenues.

-----------------------------------------------------------------------------------------------------------

Minerals Royalty Management's Royalty In Kind Program Details:

The RIK Strategy

RIK is one of two strategies used by MRM to manage the Nation’s substantial oil and gas mineral royalty assets.  Federal oil and gas leasing laws and lease terms provide the Government with the option of receiving production royalty payments either in value (RIV) or in kind.  In certain circumstances, it is to the advantage of the Government to receive its royalty payments in kind; that is, in the form of oil or gas production.  MRM’s RIK Program provides the capability both to identify opportunities for using the RIK strategy and to manage the sale and disposition of oil and gas royalties received in kind.  Every aspect of MRM’s RIK Program is governed by strong internal controls and a formal risk management policy modeled after commercial oil and gas industry best practices.  MRM’s commodity sales activity uses commercially-based sales contracts, delivery options, pricing methods, and sales terms to attract a diverse pool of successful oil and gas purchasers.