Please find below a message IPANM received from ONRR regarding updated information for several plants in the San Juan Basin. Please note that there is a pending rule for which we are intending to comment by the deadline of May 8th which will impact OIL producers including reducing the deductions available on POP contracts. We hope to have a summary of the rule out asap so that your companies can comment as well. In addition, I have been trying to get the ONRR to come to New Mexico to have a stakeholder meeting on the proposed rule, but have not had any luck yet. We will let you know if and when we can schedule a workshop on the ONRR issues.

From ONRR:

On April 15, 2015, ONRR published new Unbundling Cost Allocations (UCAs) for the San Juan Transportation System and the San Juan (Blanco) Plant for the years 2008-2014. ONRR also published new UCAs for the Torre Alta Transportation System and the Lybrook Plant for the year 2011. ONRR updated UCAs for the San Juan Transportation System and the Chaco Plant for the years 2008-2014. This update is due to the acquisition of more accurate information regarding this transportation system and gas plant. From this point forward, UCAs based on replacement cost will be rounded to the closest integer.
The new UCAs are available at the Office of Natural Resources Revenue (ONRR) website, onrr.gov/unbundling, and relate to the allowable portion of contractual transportation and processing fees.
If you have any questions, please direct your inquiries to onrrunbundling@onrr.gov.

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This message serves as guidance for determining value for royalties and is not an appealable decision or order under 30 CFR Part 1290, Subpart B. If ONRR issues you an order to pay additional royalties or assesses civil penalties under 30 CFR Part 1241 at a later date based on this guidance, your appeal rights will be provided at that time. While this message is not appealable, ONRR may use this guidance in conducting audits and as a basis for demanding additional royalties.”
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