[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] ----------------------------------------------------------------------- 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. ----------------------------------------------------------------------- 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