[Federal Register Volume 63, Number 67 (Wednesday, April 8, 1998)]
[Proposed Rules]
[Pages 17133-17138]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-9109]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Parts 210 and 216

RIN 1010-AC40


Electronic Reporting

AGENCY: Minerals Management Service, Interior.

ACTION: Proposed rulemaking.

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SUMMARY: The Minerals Management Service (MMS) proposes to amend its 
regulations to require reporters to submit royalty and production 
reports electronically. This change is necessary to comply with various 
mandates to use new technologies to improve the productivity, 
efficiency, and effectiveness of Government programs. Additional 
amendments would extend the due date for production reports filed 
electronically and eliminate the reporting of most wells that are in 
drilling status. These changes will reduce administrative costs and 
increase operating efficiencies for industry and MMS.

DATES: Submit comments on or before June 8, 1998.

ADDRESSES: Send comments to David S. Guzy, Chief, Rules and 
Publications Staff, Royalty Management Program, Minerals Management 
Service, PO Box 25165, Mail Stop 3021, Denver, Colorado 80225-0165; 
courier delivery to Building 85, Denver Federal Center, Denver, 
Colorado 80225; or E-mail RMP.[email protected].

FOR FURTHER INFORMATION CONTACT: David S. Guzy, Chief, Rules and 
Publications Staff, Royalty Management Program, Minerals Management 
Service; telephone (303) 231-3432; fax (303) 231-3385; E-mail 
David__G[email protected]. Contact Ralph Spencer at (303) 231-3095 for 
further information about being added to the list of MMS-approved 
electronic reporting services.

SUPPLEMENTARY INFORMATION: The principal authors of this proposed 
rulemaking are Mary Williams, Ralph Spencer, Barbara Lambert, Gail 
Solaas of the Accounting and Reports Division, and Tim Allard of the 
Systems Management Division, Royalty Management Program, MMS.

I. Background

    Congress and the President have mandated that Federal agencies use 
new technologies to improve Government operations. For example, the 
Paperwork Reduction Act of 1995, Public Law 104-13, and the Information 
Technology Management Reform Act of 1996, Public Law 104-106, authorize 
the use of new technologies to improve the productivity, efficiency, 
and effectiveness of Government programs. Executive Order 13011 
requires Government agencies to use information technology to improve 
productivity and increase efficiencies. To meet these legislative and 
executive mandates and take advantage of rapidly improving 
technologies, MMS proposes to amend its regulations to require 
reporters to report electronically.
    MMS has been successfully developing and using electronic 
information collection alternatives for many years. Electronic reports 
produce more timely and accurate reporting at significantly less cost 
than paper reports. For example, electronically-submitted Reports of 
Sales and Royalty Remittance, Form MMS-2014, have an average error rate 
of 1 percent compared to paper reports that have an 8 percent error 
rate.
    Electronic reports also streamline the error correction process. We 
can quickly notify a reporter of any problems discovered during our 
edit processes. The reporter can make his/her own corrections and 
quickly resubmit the reports to us. This automated process reduces the 
exchange of paper and the attendant confusion.
    Electronic reporting, along with other streamlining and process 
improvements, has reduced our error correction costs by 20 percent, our 
manual data entry costs by 60 percent, and our file maintenance costs 
by 24 percent. Many reporters using an electronic reporting option have 
experienced up to a 50 percent reduction in resources needed to comply 
with our reporting requirements.
    An additional advantage of electronic reporting is the expanded 
time to report. If a reporter uses E-mail or Electronic Data 
Interchange (EDI), he/she can transmit reports to us on the due date 
rather than several days before the due date to allow for manual 
delivery. This additional time allows a reporter to collect more 
accurate and complete data, thereby reducing the need for amended 
reports. We can also process the reports faster because electronic 
reports do not require manual data entry.
    We offer various electronic reporting options and means of 
transmission for different reporters. We will work closely with all 
reporters to provide advice on the best electronic reporting options. 
Large reporters may use standards approved by the American National 
Standards Institute, Accredited Standards Committee X12, for sending 
data via EDI. Small to medium reporters may use a template software 
version we offer at no cost and transmit their reports to us by 
diskette or E-mail. We provide detailed electronic reporting guidelines 
to reporters converting to electronic reporting media. These guidelines 
consist of a variety of record layout specifications and template 
software with appropriate user's guides from which the reporter can 
select the option best suited to his/her needs.
    We are requesting specific comments from reporters who do not 
currently report to us electronically on their capability (hardware, 
software, knowledgeable personnel, etc.) to convert to electronic 
reporting.

[[Page 17134]]

Conversion to electronic reporting is typically not time-consuming and 
does not require an extensive knowledge of computer programming. For 
example, if a reporter is currently using an electronic spreadsheet 
such as Microsoft Excel to produce a paper report, we can provide a 
record layout for converting to a Comma Separated Values format which 
can be transmitted electronically. Reporters who use electronic reports 
experience few problems with converting or submitting their monthly 
reports.
    For those reporters who do not have computers, there are numerous 
reporting services that can provide electronic reporting at a 
reasonable cost. We can provide a list of reporting services that have 
MMS-approved electronic reporting formats. Any other reporting service 
not currently using an MMS-approved electronic reporting format can 
contact us for approval and be added to this list. Please contact Ralph 
Spencer at (303) 231-3095 for further information.
    As an added incentive to report electronically, we are proposing to 
extend the due date for production reports submitted electronically by 
10 days. In a recent pilot program, we tested this concept by extending 
the due date 10 days for production reports filed using any of our 
electronic reporting options. We were able to process electronic 
production reports and provide corrected data to users, such as the 
Bureau of Land Management (BLM), with no delay.
    Because the pilot results were favorable, we are incorporating the 
extended due date for production reports in this proposed rule. This 
extension would not apply to the Form MMS-2014 Report of Sales and 
Royalty Remittance. The royalty payment due date would not change.
    Through this rulemaking, we also are proposing to eliminate the 
requirement to report most wells that are in drilling status. 
Currently, operators must report drilling wells on Form MMS-3160, 
Monthly Report of Operations, or Form MMS-4054, Oil and Gas Operations 
Report, to MMS, and on other reports to either BLM or Offshore Minerals 
Management in MMS. We propose to amend our regulations to require Forms 
MMS-3160 and MMS-4054 only on completed wells, unless otherwise 
directed by MMS. Generally, operators would report wells when drilling 
is concluded, that is, when the well status changes to completed, 
temporarily abandoned, or abandoned. We would continue to require 
reports for the months drilling wells have test production and in some 
unique or unusual situations on specific leases or agreements. We would 
notify operators when reporting is required on drilling wells.
    These proposed amendments, when adopted, would be effective 
December 31, 1998, to allow sufficient time for reporters to convert to 
electronic reporting.

II. Section-by-Section Analysis

PART 210--FORMS AND REPORTS

Section 210.10(c)(1), (2), and (7)  Information collection
    We would amend these paragraphs to reflect the reduced monthly 
reporting burden associated with electronic reporting. We estimate 
reporting electronically would reduce your monthly reporting burden by 
50 percent or more if you do not now report electronically. Although 
converting to electronic reporting would require a resource investment, 
your monthly benefits would ultimately offset initial conversion costs.
Section 210.10(d)  Information Collection
    We would amend this paragraph to reflect changes required by the 
Paperwork Reduction Act of 1995 and to provide updated addresses for 
commenting on information collections.
Section 210.20  Electronic reporting
    This section would require you to submit the following three 
reports electronically:
     Report of Sales and Royalty Remittance, Form MMS-2014.
     Monthly Report of Operations, Form MMS-3160.
     Oil and Gas Operations Report, Form MMS-4054.
    This section would also contain the following provisions:
     Several electronic reporting options, and their order of 
preference, would be identified.
     You would have to obtain MMS electronic reporting 
guidelines and arrange to have an electronic sample reviewed and 
approved by MMS before submitting your first official electronic 
report.
     You would have to sign an electronic commerce agreement 
when transmitting your reports by E-mail or EDI.
     Certain security measures would apply to EDI formats and 
E-mail transmissions.
     A new reporter would have to begin reporting 
electronically within 90 days from the day its first report is due.
     We will assess you a fee per report line for failure to 
report electronically under this part after the 90-day period to 
compensate the Government for the increased costs incurred as a result 
of a reporter's non-compliance. We will accept your manual reports 
after the 90-day period to assure that royalties collected are 
distributed to the proper recipient. However, you will be assessed a 
fee for failure to report electronically after the 90-day grace period.
Section 210.52  Report of Sales and Royalty Remittance
    This section would be amended to remove the references to magnetic 
tape as the only alternative to a paper Form MMS-2014. Specific 
reference to payments by electronic funds transfer would also be 
removed because electronic funds transfer is not the only option for 
electronic payments. Information on electronic payments is contained in 
30 CFR 218.51.

PART 216--PRODUCTION ACCOUNTING

Section 216.11  Electronic reporting
    This new section in Subpart A--General Provisions would require 
electronic submission of Forms MMS-3160 and MMS-4054. Specific 
requirements for electronic reporting would be located in 30 CFR 
210.20.
Section 216.50  Monthly Report of Operations
    This section would be amended to require reports only on completed 
wells unless otherwise directed by MMS. We would also extend the due 
date from the 15th to the 25th day of the second month following the 
month of production when your Monthly Report of Operations, Form MMS-
3160, is filed electronically.
Section 216.53  Oil and Gas Operations Report
    This section would be modified to require reports only on completed 
wells unless otherwise directed by MMS. We would also extend the due 
date from the 15th to the 25th day of the second month following the 
month of production when your Oil and Gas Operations Report, Form MMS-
4054, is filed electronically.
Section 216.55  Gas Plant Operations Report
    We have no electronic reporting options for the Gas Plant 
Operations Report, Form MMS-4056. However, this section would be 
modified to extend the due date for Form MMS-4056 from the 15th to the 
25th day of the second month following the month of production when 
your Form MMS-3160

[[Page 17135]]

or Form MMS-4054 is filed electronically.
Section 216.56  Production Allocation Schedule Report
    We have no electronic reporting options for the Production 
Allocation Schedule Report, Form MMS-4058. However, this section would 
be modified to extend the due date for the Form MMS-4058 from the 15th 
to the 25th day of the second month following the month of production 
when your Form MMS-4054 is filed electronically.

III. Procedural Matters

The Regulatory Flexibility Act

    The Department certifies that this rule will not have a significant 
economic effect on a substantial number of small entities under the 
Regulatory Flexibility Act (5 U.S.C. 601 et seq.). This rule will have 
no effect on tribal governments or other small governmental 
jurisdictions. Approximately 2,000 entities who pay royalties and 2,750 
entities who report production from Federal and Indian lands will be 
impacted, and the majority of these entities are small businesses 
because they employ 500 or less employees. However, the economic impact 
to these small businesses will not be significant because one-time 
monetary outlays to convert to electronic reporting will be offset by 
reduced monthly costs to report to MMS.
    Estimated outlays for equipment or contracted services necessary to 
submit electronic reports to MMS vary widely depending on the number of 
properties reported, the electronic reporting option selected, and the 
reporter's access to a computer.
     Costs for reporters who have computers. Converting to a 
Comma Separated Values (CSV) format or template software, which does 
not require professional programmers, may require 10 hours depending on 
the number of properties reported. Additional time to maintain the 
software may require 10 hours per year. Using a cost of $35 per hour, 
reporters who have computers will incur a one-time cost of $350 and an 
annual cost to maintain the software of $350. We estimate that 80 
percent of reporters not currently reporting to us electronically will 
use the CSV or template option to comply with this rule.
     Costs for reporters who do not have computers. Reporters 
who do not have computers may choose to contract with an electronic 
reporting service or may choose to purchase a computer and/or a 
software package from an electronic reporting service. These reporters 
may incur average capital/startup costs of $2,000 and subsequent 
annually operating and maintenance costs of $350.
     Your comments are important. The Small Business and 
Agriculture Regulatory Enforcement Ombudsman and 10 Regional Fairness 
Boards were established to receive comments from small businesses about 
Federal agency enforcement actions. The Ombudsman will annually 
evaluate the enforcement activities and rate each agency's 
responsiveness to small business. If you wish to comment on the 
enforcement actions in this proposed rule, call 1-888-734-3247.

Executive Order 12866

    This rule is not a significant rule subject to Office of Management 
and Budget review under Executive Order 12866.

Executive Order 12988

    The Department has certified to the Office of Management and Budget 
that this proposed regulation meets the applicable civil justice reform 
standards provided in sections 3(a) and 3(b)(2) of Executive Order 
12988.

Unfunded Mandates Reform Act of 1995

    The Department has determined and certifies according to the 
Unfunded Mandates Reform Act, 2 U.S.C. 1502 et seq., that this rule 
will not impose a cost of $100 million or more in any given year on 
local, tribal, or State governments, or the private sector.

Paperwork Reduction Act

    This proposed rule does contain information collection 
requirements. These requirements have been approved by the Office of 
Management and Budget (OMB) and assigned OMB Control Numbers 1010-0022 
and 1010-0040.
    As discussed below, this proposed rule impacts two existing 
collections of information which have been submitted to the Office of 
Management and Budget (OMB) for review and approval under section 
3507(d) of the Paperwork Reduction Act of 1995. As part of our 
continuing effort to reduce paperwork and respondent burden, MMS 
invites the public and other Federal agencies to comment on any aspect 
of the reporting burden. Submit your comments to the Office of 
Information and Regulatory Affairs, OMB, Attention Desk Officer for the 
Department of the Interior, Washington, DC 20503. Send copies of your 
comments to: Minerals Management Service, Royalty Management Program, 
Rules and Publications Staff, PO Box 25165, MS 3021, Denver, Colorado 
80225-0165; courier address is: Building 85, Denver Federal Center, 
Denver, Colorado 80225; e-Mail address is: RMP.[email protected].
    OMB may make a decision to approve or disapprove this collection of 
information after 30 days from receipt of our request. Therefore, your 
comments are best assured of being considered by OMB if OMB receives 
them within that time period. However, MMS will consider all comments 
received during the comment period for this notice of proposed 
rulemaking.
    The burden hours associated with two existing information 
collections titled Report of Sales and Royalty Remittance (Form MMS-
2014), OMB Control Number 1010-0022, and Production Accounting and 
Auditing System (PAAS) Reports [Facility and Measurement Information 
Form (FMIF), Form MMS-4051; Oil and Gas Operations Report (OGOR), Form 
MMS-4054; Gas Analysis Report (GAR), Form MMS-4055; Gas Plant 
Operations Report (GPOR), Form MMS-4056; Monthly Report of Operations 
(MRO), Form MMS-3160; Production Allocation Schedule Report (PASR), 
Form MMS-4058], OMB Control Number 1010-0040, will be reduced by this 
proposed rulemaking.
    MMS estimates that 275,000 lines will be submitted on Form MMS-2014 
each month by 2,000 payors. We estimate that a payor will complete a 
line on the Form MMS-2014 in 2 minutes and that each payor will spend 
10 hours on related recordkeeping. The annual burden for reporting 
electronically under this information collection will be 134,000 hours 
under this proposed rulemaking.
    MMS estimates that the total annual burden for reporting 
electronically all PAAS reports will be 53,030 hours. Approximately 
290,000 Form MMS-3160 reports will be submitted annually, and we 
estimate that the operator will take \1/8\ hour to complete the report 
or 36,250 burden hours annually. Approximately 59,000 Form MMS-4054 
reports will be submitted annually, and we estimate that the operator 
will take \1/4\ hour to complete the report or 14,750 burden hours 
annually. Approximately 7,200 Form MMS-4058 reports will be submitted 
annually, and we estimate that the operator will take \1/4\ hour to 
complete the report manually or 1,800 burden hours annually. 
Approximately 450 Form MMS-4056 reports will be submitted annually, and 
we estimate that the operator will take \1/2\ hour to complete the 
report manually or 225 burden hours. Approximately 10 Form

[[Page 17136]]

MMS-4055 reports will be submitted annually, and we estimate that the 
operator will take \1/4\ hour to complete the report manually or 2.5 
burden hours. Approximately 8 Form MMS-4051 reports will be submitted 
annually by telephone, and we estimate that the operator will take \1/
4\ hour to complete this report for 2 burden hours.
    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. For instance your comments may address the following 
areas. 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 Paperwork Reduction Act of 1995 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.

National Environmental Policy Act of 1969

    We have determined that this rulemaking is not a major Federal 
action significantly affecting the quality of the human environment, 
and a detailed statement under section 102(2)(C) of the National 
Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) is not 
required.

List of Subjects

30 CFR Part 210

    Coal, Continental shelf, Geothermal energy, Government contracts, 
Indian lands, Mineral royalties, Natural gas, Petroleum, Public lands--
mineral resources, Reporting and recordkeeping requirements.

30 CFR Part 216

    Coal, Continental shelf, Geothermal energy, Government contracts, 
Indian lands, Mineral royalties, Natural gas, Penalties, Petroleum, 
Public lands--mineral resources, Reporting and recordkeeping 
requirements.

    Dated: March 13, 1998.
Bob Armstrong,
Assistant Secretary for Land and Minerals Management.
    For the reasons stated in the preamble, MMS proposes to amend 30 
CFR parts 210 and 216 as follows:

PART 210--FORMS AND REPORTS

    1. The authority citation for part 210 is revised to read as 
follows:

    Authority: 5 U.S.C. 301 et seq.; 25 U.S.C. 396, 2107; 30 U.S.C. 
189, 190, 359, 1023, 1751(a); 31 U.S.C. 3716, 9701; 43 U.S.C. 1334, 
1801 et seq.; and 44 U.S.C. 3506(a).

    2. Amend Sec. 210.10 by revising paragraphs (c)(1), (c)(2), (c)(7), 
and (d) to read as follows:


Sec. 210.10  Information collection.

* * * * *
    (c) * * *
    (1) MMS-2014--Used monthly to report lease-related transactions 
essential for royalty management to determine the correct royalty 
amount due, reconcile or audit data, and distribute payments to 
appropriate accounts. Public reporting burden for paper submission is 
estimated to average 7 minutes to complete each line item on the form, 
including the time necessary to assemble data, calculate value and 
royalty, and enter data on the form. Companies reporting electronically 
may average 2 minutes to complete each line item on the form. Comments 
submitted relative to this information collection should reference the 
information collection titled Report of Sales and Royalty Remittance, 
OMB Control Number 1010-0022.
    (2) MMS-3160--Used by onshore oil and gas lease operators to report 
monthly oil and gas production to MMS. Public reporting burden for 
paper submission is estimated to average 15 minutes per form, including 
the time necessary to assemble data, ensure that production and 
disposition numbers are accurate, and enter data on the form. Companies 
reporting electronically may average 7.5 minutes per month to complete 
the form. Comments submitted relative to this information collection 
should reference the information collection titled PAAS Oil and Gas 
Reports, OMB Control Number 1010-0040.
* * * * *
    (7) MMS-4054--This three-part form identifies all oil and gas lease 
production from Federal and Indian lands. MMS uses information from 
this form to track oil and gas from the point of first sale or other 
disposition. Respondents will generally not use all three parts of the 
form. Public reporting burden for paper submission is estimated to 
average 30 minutes per month, including the time necessary to assemble 
data, ensure that production and disposition numbers are accurate, and 
enter data on the form. Companies reporting electronically may average 
15 minutes per month to complete the form. Comments submitted relative 
to this information collection should reference the information 
collection titled PAAS Oil and Gas Reports, OMB Control Number 1010-
0040.
* * * * *
    (d) Comments on burden estimates. Send comments on the accuracy of 
this burden estimate or suggestions on reducing this burden to the 
Information Collection Clearance Officer, MS 4230, MMS, 1849 C Street, 
NW., Washington, DC 20240 and to the Office of Management and Budget, 
Office of Information and Regulatory Affairs, Attention: Desk Officer 
for the U.S. Department of the Interior, OMB Control Number 1010-XXXX, 
Washington, DC 20503. 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.
    3. Add Sec. 210.20 to subpart A to read as follows:


Sec. 210.20  Electronic reporting.

    (a) You must submit Forms MMS-2014, MMS-3160, and MMS-4054 to MMS 
electronically.
    (b) You may use any of the following electronic media types, unless 
MMS instructs you differently:
    (1) Electronic Data Interchange (EDI)--The inter-organizational, 
computer-to-computer exchange of structured information in a standard, 
machine-processable format;
    (2) Electronic Mail (E-mail)--Any communications service used to 
electronically transmit and store messages and attach files. MMS has 
three file options:
    (i) Template--MMS-provided software that generates blank forms on a 
personal computer to assist companies in preparing MMS regulatory 
reports (this option is not available for Form MMS-4054);
    (ii) Comma Separated Values (CSV)--A file format where attribute 
fields are separated by commas; and
    (iii) American Standard Code for Information Interchange (ASCII)--A 
file format of fixed-length records with fixed-length attribute fields;
    (3) Reporter-Prepared Diskette (3\1/2\ inch)--A data storage medium 
used to transmit report data using one of the following file options:
    (i) Template;
    (ii) CSV; and
    (iii) ASCII;
    (4) Magnetic or Cartridge Tape--A data storage medium used to 
transmit report data in an ASCII file format.
    (c) MMS prefers that you use the media types in the order presented 
in Sec. 210.20(b) to the extent it is cost

[[Page 17137]]

effective and practical. As technology changes, MMS will consider other 
media types and the order of MMS preference may change. Refer to our 
electronic commerce brochure for the most current reporting options. 
You can receive a copy of our brochure by calling your MMS 
representative.
    (d) Before you begin reporting electronically:
    (1) You must submit an electronic sample of your report for MMS 
approval using the MMS-supplied electronic reporting guidelines;
    (2) If you choose to use EDI or E-mail, you must sign an electronic 
commerce agreement (ECA). An ECA is an agreement between you and MMS 
that sets forth the terms and conditions for sending and receiving your 
electronic report data transactions or funds. This agreement ensures 
that your report data transactions or funds transfer are legally valid 
and enforceable;
    (3) If you choose to use EDI, MMS must verify your sender 
identification numbers and security code before you may begin reporting 
electronically; and
    (4) If you choose to use the E-mail interchanges, MMS must verify 
your originating address and compression software passwords before you 
may begin reporting electronically.
    (e) When MMS approves your sample, we will notify you to begin 
reporting electronically.
    (f) If you are a new reporter to MMS, you have 90 days from the day 
your first report is due to begin reporting electronically.
    (g) After 90 days, we will assess you a fixed fee per report line 
if you report other than electronically. We will assess you a fixed fee 
per report line if you do not report electronically. MMS will calculate 
a reasonable fee in light of the increased costs to the Government of a 
reporter's non-compliance, and will publish the per line fee rate in 
the Federal Register. MMS may change the per line fee as circumstances 
warrant by publishing notice in the Federal Register.
    4. Section 210.52 is revised to read as follows:


Sec. 210.52  Report of sales and royalty remittance.

    You must submit a completed Report of Sales and Royalty Remittance 
(Form MMS-2014) with all payments to MMS for royalties and, where 
specified, for rents on nonproducing leases. When you submit Form MMS-
2014 data electronically, you are not required to submit the form 
itself. Completed Form MMS-2014's for royalty payments are due by the 
end of the month following the production month. Where applicable, 
completed Form MMS-2014's for rental payments are due no later than the 
anniversary date of the lease. This section does not prohibit you from 
making early payments voluntarily.

PART 216--PRODUCTION ACCOUNTING

    5. The authority citation for part 216 is revised to read as 
follows:

    Authority: 5 U.S.C. 301 et seq.; 25 U.S.C. 396, 2107; 30 U.S.C. 
189, 190, 359, 1023, 1751(a); 31 U.S.C. 3716, 9701; 43 U.S.C. 1334, 
1801 et seq.; and 44 U.S.C. 3506(a).

Subpart A--General Provisions

    6. Add Sec. 216.11 to subpart A to read as follows:


Sec. 216.11  Electronic reporting.

    You must submit your Monthly Report of Operations, Form MMS-3160, 
or the Oil and Gas Operations Report, Form MMS-4054, electronically. 
Specific requirements are located in 30 CFR 210.20.

Subpart B--Oil and Gas, General

    7. Amend Sec. 216.50, by redesignating paragraphs (b) through (d) 
as paragraphs (f) through (h), revising paragraph (a), and adding new 
paragraphs (b) through (e) to read as follows:


Sec. 216.50  Monthly report of operations.

    (a) You must submit a Monthly Report of Operations, Form MMS-3160, 
if you operate either an onshore Federal or Indian lease or an onshore 
federally-approved agreement that contains one or more wells that are 
not permanently plugged and abandoned.
    (b) You must submit a Form MMS-3160 for each well for each calendar 
month, beginning with the month in which you complete drilling, unless 
you have only test production from a drilling well or MMS tells you in 
writing to do otherwise.
    (c) MMS must receive your completed Form MMS-3160 on or before:
    (1) The 25th day of the second month following the month for which 
you are reporting; or
    (2) The 15th day of the second month following the month for which 
you are reporting, if you are a new reporter and not yet converted to 
electronic reporting.
    (d) You must continue reporting until either:
    (1) BLM approves all wells as permanently plugged or abandoned and 
you dispose of all inventory; or
    (2) The lease or agreement is terminated.
    (e) You do not have to submit Form MMS-3160 if:
    (1) You are authorized to submit an Oil and Gas Operations Report, 
Form MMS-4054, instead of a Form MMS-3160; or
    (2) You operate a gas storage agreement. You must report gas 
storage agreements to the appropriate BLM office.
* * * * *
    8. Section 216.53 is revised to read as follows:


Sec. 216.53  Oil and gas operations report.

    (a) You must file an Oil and Gas Operations Report, Form MMS-4054, 
if you operate either an OCS lease or federally-approved agreement; or 
an onshore Federal or Indian lease or federally-approved agreement for 
which you elected to report on a Form MMS-4054 instead of a Form MMS-
3160, that contains one or more wells that are not permanently plugged 
and abandoned.
    (b) You must submit a Form MMS-4054 for each well for each calendar 
month, beginning with the month in which you complete drilling, unless 
you have only test production from a drilling well or MMS tells you in 
writing to do otherwise.
    (c) MMS must receive your completed Form MMS-4054 on or before:
    (1) The 25th day of the second month following the month for which 
you are reporting; or
    (2) The 15th day of the second month following the month for which 
you are reporting, if you are a new reporter and not yet converted to 
electronic reporting.
    (d) You must continue reporting until either:
    (1) BLM or MMS approves all wells as permanently plugged or 
abandoned and you dispose of all inventory; or
    (2) The lease or agreement is terminated.
    9. Section 216.55 is revised to read as follows:


Sec. 216.55  Gas plant operations report.

    (a) You must submit a Gas Plant Operations Report, Form MMS-4056, 
if you operate either:
    (1) A gas plant that processes gas originating from an OCS lease or 
federally-approved agreement before the point of final royalty 
determination; or
    (2) A gas plant that processes gas from an onshore Federal or 
Indian lease or federally-approved agreement before the point of final 
royalty determination and MMS has asked you to submit a Form MMS-4056.
    (b) You must submit a Form MMS-4056 for each calendar month 
beginning with the month gas processing is initiated.
    (c) MMS must receive your completed Form MMS-4056 on or before:

[[Page 17138]]

    (1) The 25th day of the second month following the month for which 
you are reporting; or
    (2) The 15th day of the second month following the month you for 
which are reporting, if you are a new reporter and not yet converted to 
electronic reporting for Forms MMS-3160 and MMS-4054.
    (d) Your report must show 100 percent of the gas.
    (e) If your plant has not processed gas that originated from a 
Federal onshore, OCS, or Indian lease, or federally-approved agreement 
before the point of final royalty determination for 6 months or more, 
then:
    (1) You must notify MMS in writing; and
    (2) You are not required to file a Form MMS-4056 until your plant 
resumes processing such gas.
    10. Amend Sec. 216.56 to revise paragraph (b) and add paragraph (c) 
to read as follows:


Sec. 216.56  Production allocation schedule report.

* * * * *
    (b) You must submit a Production Allocation Schedule Report, Form 
MMS-4058, for each calendar month beginning with the month in which you 
first handle production covered by this section.
    (c) MMS must receive your Form MMS-4058 on or before the following 
dates:
    (1) The 25th day of the second month following the month for which 
you are reporting; or
    (2) The 15th day of the second month following the month for which 
you are reporting, if you are a new reporter and not yet converted to 
electronic reporting for Form MMS-4054.

[FR Doc. 98-9109 Filed 4-7-98; 8:45 am]
BILLING CODE 4310-MR-P