Indian Pricing

How to Value

Pricing on Indian lands (non-Osage) depends on the lease terms and location of the lands. See the maps below to determine which pricing to use based on the location of your lease. 

Valuing Gas on Indian Lands (non-Osage)

For Indian Gas, you must first establish whether your lease is located within an index zone or non-index zone as referenced in 30 CFR 1206.172  or 30 CFR 1206.174, respectively. Gas is either valued using the Indian Gas Index Zone price or the Indian Gas Major Portion price. We publish the Indian Gas Index Zone prices each month and the Indian Gas Major Portion prices each year.

If your sales contract is non-arm’s-length, you must file Form ONRR-4109 for processing allowance and Form ONRR-4295 for transportation allowance. If your sales contract is arm's-length, you must submit transportation and processing contracts and all subsequent amendment(s) within 2 months of claiming allowance. Please see the Minerals Revenue Reporter Handbook and valuation resources for Indian leases for specific reporting instructions.

Your property may also require dual accounting (YouTube). This comparison is an aspect of gas pricing that you must evaluate separately. If your lease requires dual accounting, you must choose whether to use actual or alternative dual accounting and file Form ONRR-4410. For further information, please see 30 CFR 1206.176.

Index Zones

Indian Gas Index Zone Map

Major Portion Designated Areas

Indian Gas Major Portion map

Valuing Oil on Indian Lands (non-Osage)

For Indian oil, value oil produced after July 1, 2015 by using 30 CFR 1206 Subpart B – Indian Oil. The value of oil, for royalty purposes, is the higher of the gross proceeds (less allowable transportation) or the published Index-Based Major Portion (IBMP) price (with no transportation allowance).

If your sales contract is non-arm’s-length, you must file Form ONRR-4110for transportation allowance. Please see the Minerals Revenue Reporter Handbook and valuation resources for Indian leases for further assistance.

Indian Oil Major Portion Areas

Indian Oil Major Portion map

Indian Gas Index Zone (non-Osage)

Each month ONRR publishes natural gas prices for six Indian Index Zones as referenced in 30 CFR 1206.172. For a listing of the Index Zone Price Points used for the calculation, please reference the most recent notice published in Federal Register on June 23, 2011.

Indian Index Zone Map

Index Zones

Indian Gas Index Zone Map

Prices

Prices are in $/MMBtu.

Indian Oil Index-Based Major Portion (IBMP) (non-Osage)

Each month ONRR calculates and publishes IBMP prices for Designated Areas as defined in amendments to the Indian Oil valuation regulations published on May 1, 2015 80 FR 24,794.

Indian Oil Major Portion map

Prices

Prices are in $/bbl.

Resources

• Amendments to Designated Areas - (July 29, 2016)
• Dear Reporter Letter - Indian Oil Valuation Amendments (May 15, 2015) 
• Indian Oil Rule: Overview and Terminology (Part 1) (YouTube)
• Indian oil Rule - Step-by-Step Instructions (Part 2) (YouTube)

Indian Gas Major Portion (non-Osage)

• which are not located within an Indian Index Zone.
• which are in an Index Zone, but have an arm's-length dedicated sales contract.
• with a major portion provision or language providing the Secretary of the Interior with the discretion to determine value.
• which are allotted leases in the Navajo Nation.

Note: If you are using a major portion price, you will initially report and pay on your gross proceeds. We use these reported amounts to calculate the major portion price. After the major portion price is published, you may need to edit your report by the due date using the calculated major portion price.

Indian Gas Major Portion Map

Prices

Prices are in $/MMBtu.