[Federal Register Volume 61, Number 174 (Friday, September 6, 1996)]
[Notices]
[Pages 47173-47174]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-22764]


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DEPARTMENT OF THE INTERIOR
Minerals Management Service


Information Collection Activities: Proposed Collection; Comment 
Request

AGENCY: Minerals Management Service, DOI.

ACTION: Notice of information collection solicitation.

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SUMMARY: Under the Paperwork Reduction Act of 1995, the Minerals 
Management Service (MMS) is soliciting comments on an information 
collection for Requests to Exceed Regulatory Allowance Limitation.

DATES: Written comments should be received on or before November 5, 
1996.

ADDRESSES: Comments sent via the U.S. Postal Service should be sent to: 
Minerals Management Service, Royalty Management Program, Rules and 
Procedures Staff, P.O. Box 25165, MS 3101, Denver, Colorado, 80225-
0165; courier address is: Building 85, Room A-212, Denver Federal 
Center, Denver, Colorado 80225; e:Mail address is: 
David__G[email protected].

FOR FURTHER INFORMATION CONTACT: Dennis C. Jones, Rules and Procedures 
Staff, phone (303) 231-3046, FAX (303) 231-3194, e-Mail 
Dennis__J[email protected].

SUPPLEMENTARY INFORMATION: In compliance with the requirements of 
Section 3506(c)(2)(A) of the Paperwork Reduction Act of 1995, each 
agency shall provide notice and otherwise consult with members of the 
public and affected agencies concerning collection of information in 
order to solicit comments to: (a) Evaluate whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the agency, including whether the information shall 
have practical utility; (b) evaluate the accuracy of the agency's 
estimate of the burden of the proposed collection of information; (c) 
enhance the quality, utility, and clarity of the information to be 
collected; and (d) minimize the burden of the collection of information 
on those who are to respond, including through the use of automated 
collection techniques or other forms of information technology.
    The Minerals Management Service (MMS) Royalty Management Program 
(RMP) is requesting the continuation of a collection of information to 
be used by royalty payors on Federal or Indian mineral leases. The 
payors use the form when requesting MMS approval to exceed established 
transportation or processing allowance limits. Use of the form will not 
place any additional burden on payors.
    Under certain circumstances lessees are authorized to deduct from 
royalty payments the reasonable actual costs of transporting the 
royalty portion of produced oil and gas from the lease to a processing 
or sales point not in the immediate lease area. When gas is processed 
for the recovery of gas plant products, lessees may claim a processing 
allowance. Transportation and processing allowances are a part of the 
product valuation process which MMS uses to determine if the lessee is 
reporting and paying the proper royalty amount.
    MMS performs the royalty management functions for the Secretary of 
the Interior, who is responsible for the collection of royalties from 
lessees who produce minerals from leased Federal and Indian lands. The 
Secretary is required by various laws to manage the production of 
mineral resources on Federal and Indian lands, to collect the royalties 
due, and to distribute the funds in accordance with those laws. The 
Secretary is authorized to prescribe rules and regulations in order to 
administer the provisions of laws pertaining to mineral leases on 
Federal and Indian land and the Outer Continental Shelf. Applicable 
citations include: 30 U.S.C. 189, pertaining to Public Lands; 30 U.S.C. 
359, pertaining to Acquired Lands; 43 U.S.C. 1334, pertaining to Outer 
Continental Shelf Lands; 25 U.S.C. 396d, pertaining to Indian Lands; 
and 30 U.S.C. 1713, pertaining to oil and gas from Public and Indian 
Lands.
    Regulations at 30 CFR 206 establish uniform product valuation and 
allowance policies for all Federal and Indian leases. These regulations 
require information in support of the product valuation or allowances 
being claimed. Without such information, MMS cannot evaluate the amount 
of royalties being paid or the amount of allowances being claimed.
    Regulations at 30 CFR 206.104(b)(1) and 206.156 (c)(1) establish 
the limit on transportation allowance deductions for oil and gas at 50 
percent of the value of the oil or gas at the point of sale. 
Regulations at 30 CFR 206.104(b)(2) and 206.156(c)(3) provide that MMS 
may approve a transportation allowance in excess of 50 percent upon 
proper application from the royalty payor.
    Similar regulations at 30 CFR 206.158(c)(2) establish 66\2/3\ 
percent of the value of each gas plant product as the limit on the 
allowable gas processing deduction, while 30 CFR 206.158(c)(3) provides 
for the approval of a gas processing allowance in excess of 66\2/3\ 
percent when properly requested by the payor.
    To request permission to exceed an allowance limit, royalty payors 
must write a letter to MMS providing the reasons why a higher allowance 
limit is necessary. Although the request to exceed an allowance limit 
is voluntary on the part of the payors and results in a benefit to 
them, many times payors have not provided all of the data needed by MMS 
to approve or deny a request. The followup necessary to obtain required 
information creates an additional burden for both the payor and the 
Government.
    The use of form MMS-4393, included with the payor's request, 
ensures that MMS receives the lease data required to make a decision on 
the request by including the Accounting Identification Number (AID) 
identifying the lease, the product code identifying the product being 
transported or processed, and the selling arrangement used to identify 
the marketing outlet for the product. These are the necessary data that 
have been missing from many of the requests in the past. The use of 
Form MMS-4393 reduces the time required for most payors to clarify a 
request to exceed allowance rates, and reduces the time required by the 
Government to process the request.
    Costs for performing this collection of information are based on 
time estimated for the payor to provide the information requested on 
Form MMS-4393. The form will be completed once a year, if necessary, 
for each of about 50 allowance requests. Completing the form is 
expected to average one half hour at a cost of $25 per hour.
    Annual burden costs: 50 requests x \1/2\ hour x $25=$625.00
    Annual burden hours: 50 requests x \1/2\ hour=25 hours.


[[Page 47174]]


    Dated: August 29, 1996.
James W. Shaw,
Associate Director for Royalty Management.
[FR Doc. 96-22764 Filed 9-5-96; 8:45 am]
BILLING CODE 4310-MR-P