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MMS Royalty in Kind Announcement

The Secretary of the U.S. Department of the Interior announced a transitional phasing out of the Royalty in Kind (RIK) Program on September 16, 2009.  As RIK oil and natural gas sales contracts expire, the oil and natural gas properties will revert to in-value status.  As a result of the announcement, the upcoming natural gas sales (Gulf of Mexico and Wyoming) previously advertised will not be conducted. 

As this transitional phase-out occurs, royalty obligations will revert from being collected in-kind to being collected in-value.  Operators will be provided written notification of when these properties will be reverted.  Dear Operator letters for the properties to be reverted beginning November 1, 2009, are posted on our website at:  RIKGasOperLts.htm

MMS will continue to post Dear Operator letters to our website and give prior written notification to operators on properties that will revert to in-value status as we phase out this program.

MMS thanks you for your support of and participation in the RIK Program. Please contact Pam Rieger at (303) 231-3020 for questions related to this notice.

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

Credit
This site explains how the RIK credit process works.

pdf 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.

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

Mailing Address: Overnight Delivery:
Minerals Management Service
Asset Sales and Accounting
P.O. Box 25165, MS 61120B
Denver, CO 80225-0165

Fax Number:  303-231-3846

Minerals Management Service
Asset Sales and Accounting
6th & Kipling
Denver Federal Center, Building 85
MS 61120B
Denver, CO 80225
 

For questions:  Contact David Denson, 281-987-6807 for credit; Kimbra Davis, 303-231-3514 for RIK oil; Pam Rieger, 303-231-3020 for RIK gas; or Judi Clark at 303-231-3537 for nominations, invoices, and production imbalances.