Outer Continental Shelf (OCS)

DEPARTMENT OF THE INTERIOR

Minerals Management Service

Outer Continental Shelf (OCS)

AGENCY: Minerals Management Service (MMS).

ACTION: Notice to rescind notice to lessees and operators (NTL) 98-11N.

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SUMMARY: This notice announces our decision to rescind NTL 98-11N,

Guidelines for Suspension of Production Due to Uneconomic Market

Conditions.

DATES: NTL 98-11N is rescinded effective on January 13, 1998.

FOR FURTHER INFORMATION CONTACT: E. P. Danenberger at (703) 787-1600.

SUPPLEMENTARY INFORMATION: We are in the process of updating our NTLs

to reflect current technologies, correct regulatory citations, and

include a statement on the Paperwork Reduction Act of 1995. In most

instances we are not changing the requirements and information in the

superseded NTLs. During this process we updated NTL 92-1N, ``Guidelines

for Application for Suspension of Production Due to Uneconomic Market

Conditions'' and superseded it by NTL 98-11N.

The superseded NTL 92-1N was developed in 1992 and was issued under

the authority of 30 CFR 250.110(a)(5) which states, ``To avoid

continued operations which would result in premature abandonment of a

producing well(s) or would not be economic.'' We have reviewed our

policy in NTL 98-11N and determined that the regulations in 30 CFR

250.110 are sufficient to prevent premature abandonment of producing

wells.

We expect lessees to diligently manage their leases by exploring,

developing, and commencing production within the primary term. We will

only grant SOPs for a lease when the lessee commits to production and

provides a reasonable schedule of activities including measurable

milestones. We will not grant suspensions for nonproducing leases

solely to wait for uncertain economic or technological conditions to

improve.

Based on this policy, NTL 98-11N is officially rescinded effective

January 13, 1998, and no further SOPs will be approved under this NTL

after that date. All currently approved SOPs will remain in effect

until their specified expiration date or production begins, whichever

occurs first.

For your reference, on February 13, 1998, we published a Notice of

Proposed Rulemaking (63 FR 7335), titled ``Postlease Operations

Safety,'' revising the entire 30 CFR 250, subpart A. The proposed rule

was subsequently corrected in a notice on March 9, 1998 (63 FR 11385).

The comment period was extended once and closed on July 17, 1998. The

current Sec. 250.110 on suspension of production or other operations

was renumbered Sec. 250.119 in the proposed rule. Our regulatory policy

on suspensions of production or operations will be reflected in the 30

CFR 250, subpart A, final rule.

The collection of information we refer to in this notice is

authorized under 30 CFR 250, subpart A. The Paperwork Reduction Act of

1995 requires us to inform you that the Office of Management and Budget

(OMB) has approved the information collection requirements in these

regulations and assigned OMB control number 1010-0030.

Dated: October 8, 1998.

Carolita U. Kallaur,

Associate Director for Offshore Minerals Management.

[FR Doc. 98-27586 Filed 10-14-98; 8:45 am]

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