[Federal Register Volume 63, Number 2 (Monday, January 5, 1998)] [Notices] [Pages 252-253] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 98-120] ----------------------------------------------------------------------- DEPARTMENT OF THE INTERIOR Minerals Management Service, Interior 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, Report of Sales and Royalty Remittance (OMB Control Number 1010-0022, Form MMS-2014), which expires on May 31, 1998. FORM: MMS-2014, Report of Sales and Royalty Remittance. DATES: Written comments should be received on or before March 6, 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, including Form MMS-2014, which expires May 31, 1998. We are requesting OMB approval for a three year extension of this existing collection authority. 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? The Secretary of the Interior is responsible for the collection of royalties from lessees producing minerals from leased Federal and Indian lands. The Secretary is required by various laws to manage the production of mineral resources on Indian lands and Federal onshore and offshore leases, to collect the royalties due, and to distribute the funds in accordance with those laws. MMS performs the royalty management functions for the Secretary. When a company or individual enters into a contract to develop, produce, and dispose of minerals from Federal or Indian lands, that company or individual agrees to pay the United States or Indian tribe or allottee a share (royalty) of the full value received for the minerals taken from leased lands. We use an automated fiscal accounting system, the Auditing and Financial System (AFS), to account for revenues collected from Federal and Indian leases. The Report of Sales and Royalty Remittance, Form MMS-2014, is the only document used for reporting royalties and other lease-related transactions to MMS. AFS relies on data [[Page 253]] reported by payors on Form MMS-2014 for the majority of its processing. In addition to accounting for royalties reported by payors, AFS, using Form MMS-2014 information, performs numerous other functions. These functions include monthly distribution of mineral revenues to State, Indian, and General Treasury accounts; providing royalty accounting and statistical information to States, Indians, and others who have a need for such information; and identifying under reporting and nonreporting so MMS can promptly collect revenues. Sales and royalty information gathered through AFS is compared with production data collected by an MMS automated production accounting system, the Production Accounting and Auditing System (PAAS). This AFS/PAAS comparison of reported sales with reported production provides MMS with the ability to verify that the proper royalties are being collected. MMS counts monthly payor responses by line item. Each line represents one reporting transaction. Approximately 274,000 lines are submitted each month by about 2,000 payors. Payors include about 1,750 oil and gas companies plus about 250 solid mineral companies. The total number of payors changes monthly as old wells cease production, new wells are brought into production, mines cease or increase production, or selling arrangements change. We estimate that on the average 7 minutes is needed to manually complete each line. Average time includes data assembly, value and royalty calculations, entering data on the form, and mailing. The total time involved varies considerably from a small company reporting only one or two leases to a large company with a multipage report. For those companies with equipment enabling them to report using electronic media, including electronic data interchange, diskettes and tape, the time to generate and submit the data is estimated to be less than 3 minutes per line. About 20 percent of total lines will be prepared and submitted manually, an estimated 67,000 lines per month in FY 1997. The remaining 80 percent of total lines will be submitted via electronic media, about 208,000 lines per month. We also estimate that each payor will spend 10 hours on related recordkeeping for this collection. We estimate that the total annual burden for this information collection is 155,400 hours. Dated: December 29, 1997. Lucy Querques Denett, Associate Director for Royalty Management. [FR Doc. 98-120 Filed 1-2-98; 8:45 am] BILLING CODE 4310-MR-P