Archive for the ‘Royalties’ Category

Oil & Gas Valuation Regulations Slated for an Upgrade

Photo by Mykl Roventine. Some rights reserved.

You have just less than a week (until July 26th, to be precise) to hand off your comments to the DOI’s Office of Natural Resources Revenue (ONRR) about their proposed changes to regulations governing “the valuation of oil and gas produced from Federal onshore and offshore oil and gas leases, for royalty purposes.”

The regulations in question haven’t been updated since 2000 (for oil) and 1988 (for gas), and – according to a recent King & Spalding Newsletter on the topic – the oil and gas industry has been itching for the kind of change that could lead to less costly valuation.

On May 27th, ONRR published their proposed rulemaking in the Federal Register, requesting comments and suggestions for “possible new methodologies to establish the royalty value of oil and gas produced from Federal leases.” However, they already have some higher-level ideas in mind – they’re aiming for regulations that offer “simplicity, certainty, clarity, and consistency.” Have any ideas? Submit comments to regulations.gov under the docket # ONRR–2011–0005.

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