[Federal Register Volume 62, Number 228 (Wednesday, November 26, 1997)]
[Notices]
[Pages 63185-63186]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-31081]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service


Agency 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, Oil Transportation Allowance (OMB Control Number 1010-
0061); this information collection pertains to Indian leases only.

Forms: MMS-4110, Oil Transportation Allowance Report

DATES: Written comments should be received on or before January 26, 
1998.

ADDRESSES: Comments sent via the U.S. Postal Service should be sent to 
Minerals Management Service, Royalty Management Program, Rules and 
Publications Staff, P.O. Box 25165, MS 3021, Denver, Colorado 80225-
0165; courier address is Building 85, Room A613, Denver Federal Center, 
Denver, Colorado 80225; e:Mail address is David--G[email protected].

FOR FURTHER INFORMATION CONTACT: Dennis C. Jones, Rules and 
Publications Staff, phone (303) 231-3046, FAX (303) 231-3385, e-Mail 
Dennis--C--J[email protected].

SUPPLEMENTARY INFORMATION: In compliance with the Paperwork Reduction 
Act of 1995, Section 3506 (c)(2)(A), we are notifying you, members of 
the public and affected agencies, of this collection of information and 
are inviting your comments. Is this information collection necessary 
for us to properly do our job? Have we accurately estimated the 
industry burden for responding to this collection? Can we enhance the 
quality, utility, and clarity of the information we collect? Can we 
lessen the burden of this information collection on the respondents by 
using automated collection techniques or other forms of information 
technology?

[[Page 63186]]

    The Secretary of the Interior (Secretary) is responsible for the 
collection of royalties from lessees who produce minerals from leased 
Indian lands. The Secretary is required by various laws to manage the 
production of mineral resources on Indian lands, to collect the 
royalties due, and to distribute the funds in accordance with those 
laws. The product valuation and allowance determination process is 
essential to assure that the public and/or the Indians receive payment 
on the proper value of the minerals being removed.
    MMS performs the royalty management functions for the Secretary. 
When a company or an individual enters into a contract (a lease) to 
explore, develop, produce, and dispose of oil from Indian lands, that 
company or individual agrees to pay the United States or Indian tribe 
or allottee a share (royalty) of the value received from production 
from the leased lands. Royalty rates are specified in the lease 
agreement. In order to determine whether the amount of royalty tendered 
represents the proper royalty due, it is first necessary to establish 
the proper value of the oil that is being sold or otherwise disposed of 
in some other manner, as well as the proper costs associated with 
allowable deductions.
    In some circumstances, lessees are authorized to deduct from 
royalty payments the reasonable actual cost of transporting the royalty 
portion of the oil from the lease to a delivery point remote from the 
lease. Transportation 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.
    Before any deduction may be taken, the lessee must submit page one 
of the Oil Transportation Allowance Report, Form MMS-4110, declaring 
the amount of reasonable actual transportation costs to be deducted 
from royalty. We estimate that 3 respondents will each submit an 
average of 7 allowance data lines for a total of 21 data lines 
annually. We estimate that each data line will require \1/4\ hour to 
prepare, a total of 5.25 burden hours. Authorization to deduct a 
transportation allowance continues for 12 months, or until the contract 
is changed or terminated. At that time, the lessee must resubmit page 
one of Form MMS-4110. We estimate that recordkeeping for these 
transportation allowances will require 1/2 hour per respondent 
annually.

    Dated: November 20, 1997.
Joan Killgore,
Acting Associate Director for Royalty Management.
[FR Doc. 97-31081 Filed 11-25-97; 8:45 am]
BILLING CODE 4310-MR-P