Zasoby i środowisko · 23.07.2004

Federal Gas Valuation

The MMS is proposing to amend the existing regulations governing the valuation of gas for royalty purposes produced from Federal leases. The current regulations became effective on March 1, 1988, and were amended in relevant respects in 1996 and 1998. In continuing to evaluate the effectiveness and efficiency of its rules, MMS has identified certain issues that warrant proposal and public comment. These issues primarily concern calculation of transportation costs (including the allowed rate of return in calculation of actual transportation costs in non-arm's-length transportation arrangements, and further specific itemization of allowable and non-allowable costs), revision or simplification of certain provisions, and changes necessitated by judicial decisions in subsequent litigation. The MMS is proposing some changes to be consistent with analogous provisions of the recently-amended Federal crude oil valuation rule.