[Federal Register Volume 61, Number 210 (Tuesday, October 29, 1996)]
[Notices]
[Pages 55817-55818]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-27644]


-----------------------------------------------------------------------

DEPARTMENT OF THE INTERIOR
Minerals Management Service


Agency Information Collection Activities: Proposed Collection; 
Comment Request

AGENCY: Minerals Management Service, DOT.

ACTION: Notice of information collection solicitation.

-----------------------------------------------------------------------

SUMMARY: Under the Paperwork Reduction Act of 1995, the Minerals 
Management Service (MMS) is soliciting comments on an information 
collection for Requests for Royalty Refunds and Credits.

DATES: Written comments should be received on or before December 30, 
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 requirement 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 
codified at 30 CFR 230. The purpose of this regulation is to codify the 
Department of the Interior interpretation and application of Section 
10, of the Outer Continental Shelf Lands Act (OCSLA), 43 U.S.C. 1339, 
incorporating policies and decisions, and administrative practices. 
This regulation also clarifies the information required from lease 
holders requesting a royalty refund or credit from Section 10 OCS 
leases.
    For production months prior to August 1996, no person may recover 
an excess royalty payment unless a request for refund or credit is made 
in accordance with regulations at 30 CFR 230.453. Recovery of 
overpayments for production months after August 1996 are not subject to 
the requirements of 30 CFR 230, per the Federal Oil and Gas Royalty 
Simplification and Fairness Act of 1996. To ensure consideration of a 
refund request, the regulations at 30 CFR 230.453 stipulate that:
     The request must be in writing. An oral request would not 
be acceptable.
     The MMS-established payor code must be provided to ensure 
that the request is made by the person who has a legal right to a 
refund or credit.
     The leases involved and the sales months in which the 
excess payments occurred must be identified to enable MMS to trace the 
overpayment amount to the original submission on Form MMS-2014, Report 
of Sales and Royalty Remittance.
     The amount of the excess payment must be stated. In some 
situations it may not be possible to determine an exact amount, for 
example, if there is a pending administrative or judicial proceeding 
that will establish the amount. In such situations it would be 
acceptable to describe the class of payments that may be excess.
     The specific reason why a refund or credit is due must be 
provided.
     The person submitting the request must certify that, to 
the best of their knowledge, the information in the request is accurate 
and complete.
     MMS must receive the request for refund or credit within 2 
years of the date the excess payment was received.
    Requests for refunds are received by RMP where they are scanned for 
timeliness. If the original payment was made more than 2 years previous 
to the refund request, the request is denied. If the request is timely, 
it is forwarded to an MMS contractor for further review to see that all 
required information is included. The contractor prepares a list of 
overpayments that MMS proposes to refund. The list is returned to MMS 
and is then forwarded to the Congress.

[[Page 55818]]

Congress is given 30 days to act on the proposed refunds. After 30 
days, a letter is issued to the companies informing them that the 
recoupment is authorized.
    Companies request about 500 refunds annually. MMS estimates that 
the average time required to prepare a refund request is 1 hour per 
request. At approximately $25 an hour, annual cost to payors is 
$12,500.
    500 requests x 1 hour x $25=$12,500
    Estimated annual company burden hours is 500 hours.
    500 requests x 1 hour=500 burden hours.

    Dated: October 21, 1996.
James W. Shaw,
Associate Director for Royalty Management.
[FR Doc. 96-27644 Filed 10-28-96; 8:45 am]
BILLING CODE 4310-MR-P