[Federal Register: October 21, 1998 (Volume 63, Number 203)]
[Notices]               
[Page 56217]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21oc98-93]

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DEPARTMENT OF THE INTERIOR

Minerals Management Service

 
Announcement of Minerals Management Service Workshop on the 
Development of Criteria To Be Used in Distinguishing Between Gathering 
and Transportation in Deep Water in the Outer Continental Shelf

AGENCY: Minerals Management Service, Interior.

ACTION: Notice of meeting.

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SUMMARY: The Minerals Management Service (MMS) will hold a day-long 
meeting with parties interested in the development of deep water leases 
that may involve subsea well completions. We are interested in 
developing specific criteria to be used in distinguishing between 
gathering and transportation to determine permissible deductions in 
calculating royalty value.

DATES: The workshop will be held on November 16, 1998, starting at 9:00 
a.m., Central Time.

ADDRESSES: The meeting will be held at the MMS Gulf of Mexico Outer 
Continental Shelf Regional Office, 1201 Elmwood Park Blvd., New 
Orleans, Louisiana 70123.

FOR FURTHER INFORMATION CONTACT: Mr. Martin C. Grieshaber, Minerals 
Management Service, P.O. Box 25165, MS 9200, Denver, CO 80225-0165, 
telephone number (303) 275-7118; fax (301) 275-7124; e-mail 
Martin.Grieshaber@mms.gov; or Ms. Deborah Gibbs Tschudy, MMS, P.O. Box 
25165, MS 3150, Denver, CO 80225-0165, telephone number (303) 275-7200; 
fax (303) 275-7227; e-mail Deborah.GibbsTschudy@mms.gov.

COMMENTS: Written comments on the meeting or the issues below should be 
addressed to Mr. Martin C. Grieshaber at the above address.

SUPPLEMENTARY INFORMATION: MMS is investigating the impact of deep 
water production systems on the distinction between gathering and 
transportation.
    Current MMS regulations provide for an allowance for the actual and 
reasonable costs of transporting production when value for royalty 
purposes is determined away from the lease. No allowance is permitted 
for gathering (movement to a central accumulation and/or treatment 
point).
    The new technologies involved in deep water development were not 
specifically contemplated in the current regulations, particularly when 
distinguishing between gathering and transportation.
    We are interested in specific comments regarding what criteria 
should be used on a case-by-case basis when making the gathering/
transportation differentiation for deep water leases.
    Some possible criteria we would like comments on include: water 
depth, distance of movement, location of the approved measurement 
point, marketable condition of the production, and on-lease v. off-
lease movement. Specific comments are welcome on any other criteria 
with a bearing on the issue.

    Dated: October 15, 1998.
Walter Cruickshank,
Associate Director for Policy and Management Improvement.
[FR Doc. 98-28146 Filed 10-20-98; 8:45 am]
BILLING CODE 4310-MR-M