Form MMS-4071 Form MMS-4071 RIK Letter of Credit

U.S. DEPARTMENT OF THE INTERIOR
Minerals Management Service
Minerals Revenue Management

OMB Control Number 1010-0119
Expires February 28, 2009

Letter of Credit
Form MMS-4071
Bank
___________________________
Bank Address ___________________________________
Bank ABA Number _______________________________
Irrevocable Letter of Credit No. _____________________
This Letter of Credit is effective _____________________
Expiration date is at close of business on ______________
Beneficiary:
Minerals Management Service
Minerals Revenue Management
Attn: Program Director for RIK
PO Box 25165, MS 330B2
Denver, Colorado 80225-0165
Sir or Madam:

We hereby establish our irrevocable Letter of Credit in your favor and authorize drawing(s) on
____________________________________ by order(s) and for account of
_____________________, ________________________________________ up to an
Company Name

Address

aggregate amount of $_____________________(USD) available by your drafts at sight
accompanied by Beneficiary’s statement certifying that:
The signer is a duly authorized official acting on behalf of the Minerals Management
Service of the U.S. Department of the Interior and that the amount of the accompanying
sight draft is due and payable to the Minerals Management Service of the U.S. Department
of the Interior for all charges incurred under the terms and conditions of Royalty-in-Kind
contract number ________________________ with ______________________________.
RIK Contract Number

Company Name

We hereby agree with bona fide holders that all drafts drawn under and in compliance with the
terms of this credit shall meet with due honor upon presentation and delivery of documents as
specified to the drawee if drawn and presented for negotiation on or before the expiration date.
It is a condition of this Letter of Credit that it is deemed to be automatically extended without
amendment for additional 6 month periods from the expiration date, unless 30 days prior to any
expiration date, we notify you by registered mail that we elect not to consider this Letter of
Credit renewed for any such additional period.
Such notice of our intention not to renew this Letter of Credit as provided for herein shall
authorize you to draw upon this Letter of Credit, unless __________________ provides you, at
Company Name

least fourteen (14) calendar days prior to the then current expiration date, with a replacement
letter of credit with terms and conditions substantially identical to those contained herein.

Form MMS-4071 (revised 08/2008)
Page 1 of 3

U.S. DEPARTMENT OF THE INTERIOR
Minerals Management Service
Minerals Revenue Management

OMB Control Number 1010-0119
Expires February 28, 2009

We certify that the amount of the credit herein established will not be reduced for any reason
during the period of this instrument without your written consent.
We hereby agree that if _____________________ files any petition under the
Company Name

bankruptcy laws of the United States, whether voluntary or involuntary, and if deliveries of
Royalty Crude Oil or Natural Gas under Royalty in Kind contract number _______________
Contract Number

continue after the bankruptcy petition filing date, this Letter of Credit applies
to all amounts due or which may become due the Minerals Management Service for any such
deliveries.
We will promptly notify you of any notice received or action filed alleging the insolvency or
bankruptcy of the Bank, or alleging any violations of regulatory requirements which could result
in suspension or revocation of the Bank’s charter or license to do business.
In the event the Bank becomes unable to fulfill our obligations under this Letter of Credit for any
reason, notice shall be given immediately to you.
This Letter of Credit is subject to the Uniform Customs and Practice for Documentary Credits
(1993 version), International Chamber of Commerce Publication No. 500. If this Letter of Credit
expires during an interruption of business as described in Article 17 of said Publication No. 500,
the bank hereby specifically agrees to effect payment if this Letter of Credit is drawn against
within 30 days after the resumption of business.
IN WITNESS WHEREOF, the bank has hereunto set its signature and seal this _____ day of
______________, ________.
_____________________________________
(Issuing Bank)
_____________________________________
(Authorized Officer)

Form MMS-4071 (revised 08/2008)
Page 2 of 3

U.S. DEPARTMENT OF THE INTERIOR
Minerals Management Service
Minerals Revenue Management

OMB Control Number 1010-0119
Expires February 28, 2009

ACKNOWLEDGMENT
On this ______ day of ______________, ________, before me, a Notary Public in and for the
County of _____________________, in the State of ____________________, appeared
____________________________ to me personally known who, being by me duly sworn did
say that he/she is ___________________ of _______________________, the bank named in and
which executed the within instrument, and that the seal affixed to said instrument is the seal of
said Bank, and that said instrument was signed, sealed and delivered in behalf of said Bank by
authority of its Board of Directors, and he/she, as such, offer acknowledged said instrument to be
the free act and deed set forth.

IN WITNESS WHEREOF, I have hereunto set my hand and official seal on the day, month and
year aforesaid.
My Commission Expires:
____________________________
Notary Public in and for said
County and State

_______________________
Date

Paperwork Reduction Act of 1995 (PRA) Statement: The PRA (44 U.S.C. 3501 et seq.) requires us to inform you that we collect
this information to allow small refiners to provide surety to the Federal Government. The MMS uses the information to collect
monies from financial institutions if the small refiners do not report and pay. Responses are required to obtain a benefit (30
CFR 208.11), i.e., to be awarded an RIK contract. Proprietary information is protected in accordance with standards established by
the Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1733), the Freedom of Information Act [5 U.S.C. 552(b), (4)],
and the Department regulations (43 CFR 2). An agency may not conduct or sponsor, and a person is not required to respond to, a
collection of information unless it displays a currently valid OMB Control Number. Public reporting burden for this form is estimated
to average 10 hours per response, including the time for reviewing instructions, gathering and maintaining data, and completing and
reviewing the form. Direct comments regarding the burden estimate or any other aspect of this form to the Information
Collection Clearance Officer, Minerals Management Service, Mail Stop 5438, 1849 C Street NW, Washington, DC 20240.

Form MMS-4071 (revised 08/2008)
Page 3 of 3