The new rules, developed by the US Department of Interior's Office of Natural Resources Revenue (ONRR), eliminate the use of so-called "non-arm's-length" (when entities in a deal are unaffiliated) transactions from the valuation process. Instead, companies will be expected to valuate production by using gross proceeds from the first "arm's-length" sale, which the ONRR says provides a better indication market value.
The
