Watching Government
Royalty rule reproposal

For the fourth time, the US Minerals Management Service plans to revise its controversial rule for valuing oil produced from federal leases.MMS said it would revise and reissue the regulation in mid-January, examine comments on the changes, and then issue a final rule shortly after Mar. 15 (OGJ, Nov. 29, 1999, Newsletter). The rule probably would take effect 60 days later, industry sources said.MMS will hold workshops in late January to discuss the revised rule with interested parties. Locations have not yet been set.For the past 3 years, MMS and producers have disputed the royalty rule revamp, which would base most royalty values on spot prices for crude.Congress, after bitter debate, re...

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