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Indian Oil Valuation Regulations

David A. Hubbard, Federal and Indian Oil & Gas Royalty Valuation and Management II (1998)

Existing Minerals Management Service (MMS) oil royalty valuation regulations, both for Federal and Indian leases, need revision as a result of changes in oil-marketing practices and the marketplace itself. For example, oil posted prices are an important part of the valuation benchmarks in the current Federal and Indian oil valuation regulations. MMS and most of its constituents believe, however, that postings no longer represent market value in general. Accordingly, MMS has undertaken revision of both its Federal and Indian oil valuation regulations. This paper will concentrate on the procedures arrived at by MMS and the Indian community in the effort to modify existing Indian oil royalty valuation regulations.