[Federal Register Volume 63, Number 62 (Wednesday, April 1, 1998)]
[Notices]
[Pages 15859-15861]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-8485]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service


Agency Information Collection Activities: Submission for Office 
of Management and Budget Review; Comment Request

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Notice of revision of a currently approved collection of 
information (OMB Control Number 1010-0071).

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SUMMARY: As required by the Paperwork Reduction Act of 1995 (Act), the 
Department of the Interior has submitted the collection of information 
discussed below to the Office of Management and Budget (OMB) for 
approval. The Act provides that an agency may not conduct or sponsor, 
and a person is not required to respond to, a collection of information 
unless it displays a currently valid OMB control number.

DATES: Submit written comments by May 1, 1998.

ADDRESSES: Submit comments and suggestions directly to the Office of 
Information and Regulatory Affairs, OMB, Attention: Desk Officer for 
the Department of the Interior (1010-0071), 725 17th Street, NW, 
Washington, D.C. 20503. Send a copy of your comments to the Minerals 
Management Service, Attention: Rules Processing Team, Mail Stop 4024, 
381 Elden Street, Herndon, Virginia 20170-4817.

FOR FURTHER INFORMATION CONTACT: Alexis London, Engineering and 
Operations Division, Minerals Management Service, telephone (703) 787-
1600. You may obtain copies of the supporting statement and collection 
of information by contacting MMS's Information Collection Clearance 
Officer at (202) 208-7744.

SUPPLEMENTARY INFORMATION:
    Title: 30 CFR Part 203, Relief or Reduction in Royalty Rates.
    Abstract: The Outer Continental Shelf (OCS) Lands Act, as amended 
by the

[[Page 15860]]

Deep Water Royalty Relief Act (DWRRA), gives the Secretary of the 
Interior the authority to reduce or eliminate royalty or any net profit 
share set forth in Outer Continental Shelf oil and gas leases to 
promote increased production. The MMS final rule established the terms 
and conditions for granting reductions in royalty rates under the OCS 
Lands Act and royalty suspension volumes under the DWRRA for certain 
leases in existence before November 28, 1995. It also defines the 
information required for a complete application as required by 43 
U.S.C. 1337(a)(3)(C). The final rule was published in the Federal 
Register on January 16, 1998 (63 FR 2605). The preamble stated that the 
new information collection requirement in Sec. 203.61 would not become 
effective until approved by OMB. The preamble provided the required 60-
day comment period.
    MMS will use the information to make decisions on the economic 
viability of leases requesting a suspension or elimination of royalty 
or net profit share. These decisions have enormous monetary impacts to 
both the lessee and the Federal Government. Royalty relief can lead to 
increased production of natural gas and oil, creating profits for 
lessees and royalty and tax revenues for the Government that they might 
not otherwise receive. An application for royalty relief must contain 
sufficient financial, economic, reservoir, geologic and geophysical, 
production, and engineering data and information for MMS to determine 
whether relief should be granted according to applicable law. The 
application also must be sufficient to determine whether the requested 
relief will result in an ultimate increase in resource recovery and 
receipts to the Federal Treasury and provide for reasonable returns on 
project investments. The applicant's requirement to respond is related 
only to a request to obtain royalty relief. The applicant has no 
obligation to make such a request. The MMS will protect information 
considered proprietary under applicable law and regulations at 30 CFR 
203.63(b) and 30 CFR part 250.
    Number and Description of Respondents: Approximately 130 Federal 
OCS oil and gas lessees making an estimated 44 applications per year.
    Frequency: On occasion.
    Reporting and Recordkeeping Hour Burden: See chart below. Average 
333 hours per response for a total estimated burden of 14,640 hours.
    Reporting and Recordkeeping Cost Burden: See chart below.
    (a) Application processing cost: average $22,000 per application 
for a total estimated burden of $618,250.
    (b) Some applications will require a report prepared by an 
independent certified public accountant: average $45,000 per 
application for an estimated burden of $1,215,000.

                                             Burden Breakdown Chart                                             
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                                                               Application/audit fees                           
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   Requirement 30 CFR part 203                                              Hours per                           
                                             Responses per year              response         Annual burden     
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                                                OCSLA Reporting                                                 
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Application--leases that generate  6.....................................          200  1,200                   
 earnings that can't sustain                                                                                    
 continued production (end-of-                                                                                  
 life lease).                                                                                                   
                                                                                                                
(2)Application: 6 x                                                                                             
 $8,000=$48,000                                                                                                 
                                                                                                                
(2)Audit: 1 x $12,500=$12,500                                                                                   
Application--NRS expansion         0.....................................            0  0                       
 project.                                                                                                       
Sec. 203.55 Renounce relief                                                                                     
 arrangement.                                                                                                   
(1)Seldom, if ever will be used;   0.....................................                                       
 burden minimal to prepare letter                                                                               
Sec. 203.81 Required reports.....                                                                               
(1)Burden included with            0.....................................                                       
 applications                                                                                                   
    Subtotal OCS Lands Act.......  6.....................................          N/A  1,200                   
                                                                                                                
(2)Processing Fees $60,500                                                                                      
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                                                DWRRA Reporting                                                 
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Application--leases in designated  3.....................................          600  1,800                   
 areas of GOM deep water acquired                                                                               
 in lease sale before 11/28/95                                                                                  
 and are producing (deep water                                                                                  
 expansion project).                                                                                            
                                                                                                                
(2)Application: 3 x                                                                                             
 $19,500=$58,500                                                                                                
                                                                                                                
(2)Audit: 1 x $18,750=$18,750                                                                                   
Application--leases in designated  8.....................................        1,000  8,000                   
 areas of GOM deep water acquired                                                                               
 in lease sale before 11/28/95                                                                                  
 and have not produced (pre-act                                                                                 
 deep water leases).                                                                                            
                                                                                                                
(2)Application: 8 x                                                                                             
 $34,000=$272,000                                                                                               
                                                                                                                
(2)Audit: 2 x $37,500=75,000                                                                                    
Application--short form to add or  7.....................................           40  280                     
 assign pre-act lease.                                                                                          
                                                                                                                
(2)Application: 7 x $1,000=$7,000                                                                               
                                                                                                                
(2)No Audit:                                                                                                    
Application--preview assessment..  2.....................................          900  1,800                   
                                                                                                                
(2)Application: 2 x                                                                                             
 $28,500=$57,000                                                                                                
                                                                                                                
(2)No Audit:                                                                                                    
Redetermination..................  2.....................................          500  1,000                   
                                                                                                                
(2)Application: 2 x                                                                                             
 $16,000=$32,000                                                                                                
                                                                                                                
(2)Audit: 1 x $37,500=$37,500                                                                                   
Sec. 203.70 Submit fabricator's    8.....................................           20  160                     
 confirmation report.                                                                                           
Sec. 203.70 Submit post-           8.....................................           50  400                     
 production development report.                                                                                 
Sec. 203.77 Renounce relief                                                                                     
 arrangement.                                                                                                   
(1)Seldom, if ever will be used;   0.....................................                                       
 burden minimal to prepare letter                                                                               
Sec. 203.79 Appeal MMS decisions.                                                                               
(1)Exempt as defined in 5 CFR      0.....................................                                       
 1320.3(h)(9)                                                                                                   
Sec. 203.81 Required reports.....                                                                               
(1)Burden included with            0.....................................                                       
 applications                                                                                                   
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    Subtotal DWRRA...............  38....................................          N/A  13,440                  

[[Page 15861]]

                                                                                                                
                                                                                                                
(2)Processing Fees $557,750                                                                                     
                                  ==============================================================================
    Total Annual Reporting Burden  44 Responses..........................          N/A  14,640 Hours            
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(2)Processing Fees $618,250                                                                                     
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                                                  Recordkeeping                                                 
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Sec. 203.91 Retain supporting      8 Record keepers......................            8  64 Hours                
 cost records for post-production                                                                               
 development and fabrication                                                                                    
 reports.                                                                                                       
Total Annual Recordkeeping                                                                                      
 Burden.                                                                                                        
(2)Respondents would retain                                                                                     
 records as usual and customary                                                                                 
 business practice; minimal                                                                                     
 burden to make them available at                                                                               
 MMS request.                                                                                                   
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Comments

    Section 3506(c)(2)(A) of the Paperwork Reduction Act requires each 
agency ``. . . to provide notice . . . and otherwise consult with 
members of the public and affected agencies concerning each proposed 
collection of information. . . .'' Agencies must specifically solicit 
comments to: (a) evaluate whether the proposed collection of 
information is necessary for the agency to perform its duties, 
including whether the information is useful; (b) evaluate the accuracy 
of the agency's estimate of the burden of the proposed collection of 
information; (c) enhance the quality, usefulness, and clarity of the 
information to be collected; and (d) minimize the burden on the 
respondents, including the use of automated collection techniques or 
other forms of information technology.
    Send your comments directly to the offices listed under the 
addresses section of this notice. OMB has up to 60 days to approve or 
disapprove the information collection but may respond after 30 days. 
Therefore, to ensure maximum consideration, OMB should receive public 
comments by May 1, 1998.
    MMS Information Collection Clearance Officer: Jo Ann Lauterbach, 
(202) 208-7744.

    Dated: March 25, 1998.
E. P. Danenberger,
Chief, Engineering and Operations Division.
[FR Doc. 98-8485 Filed 3-31-98; 8:45 am]
BILLING CODE 4310-MR-P