WASHINGTON (CN) – The Office of Natural Resources Revenue is requesting comments and suggestions before proposing changes to regulations for the valuation of oil and gas produced from federal onshore and offshore oil and gas leases, for royalty purposes.
The existing federal oil valuation regulations have been in effect since 2000, with only an amendment on the use of index pricing in some circumstances. The existing federal gas valuation regulations have been in effect since March 1, 1988, with various amendments on the transportation allowance provisions.
The agency states that regulations have not kept up with significant changes that have occurred in the domestic gas market in the last 20 years.
The agency is requesting comments and suggestions for possible new methodologies to establish the royalty value of oil and gas produced from federal leases.
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