[Federal Register Volume 63, Number 108 (Friday, June 5, 1998)]
[Pages 30775-30776]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-15072]



Minerals Management Service

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

    Title: Gas Transportation and Processing Allowances OMB Control 
Number: 1010-0075.


    This collection of information has been submitted to the Office of 
Management and Budget (OMB) for approval. 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 public's 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?
    Comments should be made directly to the Attention: Desk Officer for 
the Interior Department (OMB Control Number: 1010-0075), Office of 
Information and Regulatory Affairs, Office of Management and Budget, 
Washington, DC 20503; telephone (202) 395-7340. Copies of these 
comments should also be sent to us. The U.S. Postal Service address is 
Minerals Management Service, Royalty Management Program, Rules and 
Publications Staff, P.O. Box 25165, MS 3021, Denver, Colorado 80225-
0165; the courier address is Building 85, Room A-613, Denver Federal 
Center, Denver, Colorado 80225; and the e-Mail address is 
David__G[email protected]. OMB has up to 60 days to approve or disapprove the 
information collection but may respond after 30 days; therefore, public 
comments should be submitted to OMB within 30 days in order to assure 
their maximum consideration.
    Copies of the proposed information collection and related 
explanatory material may be obtained by contacting Dennis C. Jones, 
Rules and Publications Staff, telephone (303) 231-3046, FAX (303) 231-
3385, e-Mail Dennis__J[email protected].

DATES: Written comments should be received on or before July 6, 1998.

SUMMARY: The Secretary of the Interior 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 royalty funds in accordance with those 
laws. The product valuation and allowance determination process is 
essential to assure that the Indians receive payment on the proper 
value of the minerals being removed. 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 gas and gas plant 
products being sold, or otherwise disposed of, as well as the proper 
costs associated with the allowable deductions from the value of gas 
and gas plant products.
    Under certain circumstances, lessees are authorized to deduct from 
royalty payments, the reasonable actual costs of transporting the 
royalty portion of produced minerals from the lease to a processing or 
sales point not in the immediate lease area. Transportation allowances 
are a part of the product valuation process which the Minerals 
Management Service (MMS) uses to determine if the lessee is reporting 
and paying the proper royalty amount. Before any deduction is taken, a 
Form MMS-4295, Gas Transportation Allowance Report, must be submitted 
to MMS.
    When gas is processed for the recovery of gas plant products, 
lessees may claim a processing allowance. MMS normally will accept the 
cost as stated in the lessee's arm's-length processing contract as 
being representative of the cost of the processing allowance. In those 
instances where gas is being processed through a lessee owned plant, 
the processing costs shall be based upon the actual plant operating and 
maintenance expenses, depreciation, and a reasonable return on 
investment. The allowance is expressed as a cost per unit of individual 
plant products. Processing allowances may be taken as a deduction from 
royalty payments. Before any deduction may be taken, a Form MMS-4109, 
Gas Processing Allowance Summary Report, must be submitted to MMS.
    Failure to collect the data described could result in the 
undervaluation of leased minerals. Regulations at 30 CFR 206 establish 
uniform product valuation and allowance policies for all Indian leases. 
These regulations require information in support of the product 
valuation or allowances being claimed. Without such information, MMS 
cannot evaluate the correctness of values or allowances reported and 

[[Page 30776]]

    Description of Respondents: Lessees of Indian leases.
    Form Numbers: Form MMS-4295, Gas Transportation Allowance Report; 
and Form MMS-4109, Gas Processing Allowance Summary Report.
    Frequency of Response: Annually.
    Estimated Reporting Burden: 15 minutes.
    Annual Responses: 3,000 responses.
    Annual Burden Hours: 750 hours.
    Bureau Clearance Officer: Jo Ann Lauterbach, (202) 208-7744.

    Dated: May 15, 1998.
Lucy Querques Denett,
Associate Director for Royalty Management.
[FR Doc. 98-15072 Filed 6-4-98; 8:45 am]