Free Notice (Other) - District Court of Federal Claims - federal

Case 1:99-cv-00550-ECH

Document 309-50
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Filed 06/30/2008
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11--5-93 VoL 58 No. 213 Pages 58935-~9158

Friday November 5, 1993

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Briefing ,on How To Use the Federal Register For information on briefing in New York, NY, see announcement on the inside cover of this issue.
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HeinOnline -- 58 Fed. Reg, I 1993

Case 1:99-cv-00550-ECH
59142

Document 309-50

Filed 06/30/2008

Page 2 of 2

Federal,Register / Vol. 58, No. 213 / Friday, November 5, 1993 / Proposed Rules interpretation has discouraged no environmental impact statements or purchasers from offering bonus prices. environmental assessments were made. The Interior Board of Indian Appeals The information collections contained (IBIAJ issued its decision in favor of the in 25 CFR part 226 are required by the producers on February 5, 1993, in O]de Secretary, Department of the Interior, Crude Co., et el. v. Muskogee Area and are necessary to comply with the Director, Bureau of Indian Affairs, IBIA requirements of Office of Management 92-18--A, et el. The IBIA concluded that and Budget (OMB) Circular No. A-102. the current regulations require a The Standard Form 424 and producer to pay royalty on the highest attachments prescribed by such circular price available to it, whether or not it are approved by OMB under 44 U.S.C. actually receives that price. Prices not 3501 et seq. (1982) and assigned available to a producer would not be approval number 0348-0006. These used to calculate royalties due from that sections describe the types of producer. This proposed amendment information that would satisfy the will eliminate the language that caused re!]uirements of Circular A-102. The the differences in interpretation that led information will be utilized in leasing of Osage lands for oil and gas mining. to the appeals to the IBIA~ It is the consensus of the BIA and the Response is mandatory. William Haney. Field Solicitor, was Osage Tribal Council that this proposed amendment to 25 CFR 226.11(a}{2} will the primary author of this document. create a positive economic benefit in the For further information contact Gordon form of increased royalty income to the Jackson, Superintendent, Osage Agency, Osage headright holders. This rule at (918) 287-1032. change would remove the existing disincentive to purchasers to remain in List of Subjects in 25 CFR Part 226 Indian lands, Mineral resources, Osage County resulting from bonus Mines, Oil and gas exploration. payments paid to some producers but not all. The producers in Osage County For the reasons set out in the would then have incentive to receive preamble, part 226 of title I. chapter 25 bonus payments, which would increase of the Code of Federal regulations is mineral activity in the Osage mineral proposed to be amended as set forth estate. below. The Department of the Interior has determined that this document is not a P/tRT 226--LEASING OF OSAGE major nile under F.xecutive Order 12291 RESERVATION LANDS FOR OIL AND and will not have a significant economic GAS MINING effect on a substantial number of small 1. The authority citation for 25 CFR entities ~uder the Regulatory Flexibility part 226 continues to read as follows: Act, 5 U.S.C. 601 et seq. In accordance Authority:. Sec. 3, 34 StaL 543; secs. 1, 2, with the Executive Order 12630, the 45 Star. 1478; sac. 3, 52 Stat. 1034,1035; sac. Department has determined that this 2{el, 92 Star. 1660. nile does not have significant takings 2. Section 226.11{a}{2} is revised to implications. In accordance with Executive Order read as follows: No. 12612, the Department has determined that this rule does not have §226.tl Royalty payments. a)/k w /r significant federalism effects. (2) Un]esa the Osage Tribal Council, The Department has certified to the with approval of the Secretary, shall Office of Management and Budget that elect to take the royalty in kind, these proposed regulations meet the payment is owing at the time of sale or applicable standards provided in removal of the oil, except whore Sections 2(a) and 2(b)(2) of Exe/~utive payments are made on division orders, Order 12778. and settlement shall be based on the The policy of the Department of the Interior is, whenever practical, to afford actual selling price, but at not less than posted price a major the public an opportunity to participate the highest(as defined inby 226.1(h)) in § in the rulemaking process. Accordingly, purchaser Osage County, Oklahoma, who interested persons may submit written purchases production from Osage oil comments regarding the proposed rule leases. to the locations identifiedin the ADDRESSES section of this document. S~ Speaks, Since this document does not constitute a major Federal action under Acting ~i~ant SecretarF-lndian Affairs. the National Environmental Policy Act [FR Dec. 93-27238 Filed 11.-.4-03; 8:45 Arn] of 1969, 42 U.S.C. 4321 etseq, (1982), CODE 4310..~-P

DEPARTMENT OF TIlE INTERIOR Bureau of Indian Affairs 25 CFR Part 226 RIN 1076-AC09 Leasing of Osage Reservation Lands for OII and Gas Mining AGENCY: Bureau of Indian Affairs, Interior. ACTION: Proposed nile. SUMMARY: The Bureau of Indian Affairs (BIA) is proposin8 to amend the regulations concerning the leasing of Osage reservation lands for oil and gas mining to eliminate premium, bonus, or other like payments from consideration in the calculation of the royalty price for crude oil in Osage County. This rOposed amendment will eliminate the guage that caused differences in interpretation that led to appeals to the IBIA. DATES: Comments must be received on or before January 4, 1994. ADDRESSES: Written comments should be directed to Gordon Jackson, Superintendent, Osage Agency, Bureau of Indian Affairs, Pawhuska, Oklahoma 74056, telephone (918) 287-1032. FOR FURTHER INFORMATION CONTACT: Gordon Jackson, Superintendent, Osage Agency~ Bureau of Indian Affairs, Pawhuska, Oklahoma 74056, telephone (918) 287-1o32. SUPPLEMENTARY INFORMATION: This proposed "rule is published in exercise of authority delegated by the Secretary of the Interior to the Assistant Secretary--Indian Affairs in the Departmental Manual at 209 DM8. The purpose of this proposed rule is to amend 25 CFR 226.11{a){2} to eliminate premium, bonus, or other like payments from consideration in the calculation of the royalty price for crude oil in Osage County. The existing regulation was the subject of administrative appeals by numerous oil producers over the meaning of: "and settlement shall be based on the highest of the bona fide selling price, posted or offered price by a major purchaser {as defined in Sec. 226.1~n)} in Osage County, Oklahoma, who purchases production from Osage oil leases." The Bureau of Indian Affairs has interpreted that language to mean that when a higher price is offered and paid for crude oil in Osage County, that price shall be used for royalty computation for all oil of the same ality sold in the County. However, ere is reason to believe that this

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HeinOnline -- 58 Fed. Reg. 59142 1993