[Federal Register Volume 64, Number 79 (Monday, April 26, 1999)]
[Notices]
[Pages 20321-20323]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-10425]


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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; Extension

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Notice of extension of a currently approved information 
collection.

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SUMMARY: In compliance with the Paperwork Reduction Act (PRA) (44 
U.S.C. 3501 et seq.), we are notifying you that MMS is planning to 
submit an information collection request to the Office of Management 
and Budget (OMB) to request an extension of a currently approved 
collection. Under the PRA, Federal agencies are required to publish 
notice in the Federal Register concerning each proposed collection of 
information, including each proposed

[[Page 20322]]

extension of an existing collection of information and to allow 60 days 
for public comment in response to the notice. This notice solicits 
comments on requirements relating to Directed Third Party 
Communications Between Operators and Purchasers of Royalty-in-Kind 
(RIK)--Federal Oil and Gas Purchase System (OMB Control Number 1010-
0126).

DATES: Written comments should be received on or before June 25, 1999.

ADDRESSES: Submit written comments on the collection of information to 
the 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 RMP.[email protected].

FOR FURTHER INFORMATION CONTACT: For questions concerning this 
collection of information, please contact Larry Barker, RIK Study Team, 
telephone (303) 231-3157. You may also obtain copies of this collection 
of information by contacting MMS's Information Collection Clearance 
Officer at (202) 208-7744.

SUPPLEMENTARY INFORMATION: Under the PRA, Federal agencies must obtain 
approval from OMB for each collection of information they conduct or 
sponsor. Section 3506(c)(2)(A) of the PRA requires Federal agencies to 
provide a 60-day notice in the Federal Register concerning each 
proposed collection of information, including each proposed extension 
of an existing collection of information, before submitting the 
collection to OMB for approval. To comply with this requirement, MMS is 
publishing notice of the proposed collection of information listed 
below.
    With respect to the following collection of information, MMS 
invites comments on: (1) Whether the proposed collection of information 
is necessary for the proper performance of MMS's functions, including 
whether the information will have practical utility; (2) the accuracy 
of MMS's estimate of the burden of the proposed collection of 
information, including the validity of the methodology and assumptions 
used; (3) ways to enhance the quality, utility, and clarity of the 
information to be collected; and (4) ways to minimize the burden of the 
collection of information on respondents, including through the use of 
automated collection techniques, when appropriate, and other forms of 
information technology.
    In addition, the PRA requires agencies to estimate the total annual 
reporting and recordkeeping ``cost'' burden to respondents or 
recordkeepers resulting from the collection of information. We need to 
know if you have costs associated with the collection of this 
information for either total capital and startup cost components or 
annual operation, maintenance, and purchase of service components. Your 
estimates should consider the costs to generate, maintain, and disclose 
or provide the information. You should describe the methods you use to 
estimate major cost factors, including system and technology 
acquisition, expected useful life of capital equipment, discount 
rate(s), and the period over which you incur costs. Capital and startup 
costs include, among other items, computers and software you purchase 
to prepare for collecting information; monitoring, sampling, drilling, 
and testing equipment; and record storage facilities. Generally, your 
estimates should not include equipment or services purchased: (i) 
before October 1, 1995; (ii) to comply with requirements not associated 
with the information collection; (iii) for reasons other than to 
provide information or keep records for the Government; or (iv) as part 
of customary and usual business or private practices.
    Title: Directed Third Party Communications Between Operators and 
Purchasers of RIK--Federal Oil and Gas Purchase System--Extension.
    OMB Control Number: 1010-0126.
    Abstract: The Secretary of the Interior, under the Mineral Leasing 
Act (30 U.S.C. 192) and the Outer Continental Shelf Lands Act (43 
U.S.C. 1353), is responsible for the management of royalties on 
minerals produced from leased Federal lands. MMS carries out these 
responsibilities for the Secretary. Most royalties are now paid in 
value--when a company or individual enters into a contract to develop, 
produce, and dispose of minerals from Federal lands, that company or 
individual agrees to pay the United States a share (royalty) of the 
full value received for the minerals taken from leased lands. MMS has 
undertaken several pilot programs to study the feasibility of taking 
the Government's royalty in the form of production, that is, as RIK.
    Collection of RIK requires communication between the operators of a 
lease and the purchaser of RIK from that lease to assure accurate and 
timely delivery of MMS' royalty share of production volumes. On January 
29, 1999, OMB granted emergency approval for MMS to instruct lessees 
(or their operators), through a letter to operators which contains 
reporting and recordkeeping requirements, to conduct all necessary 
communications with RIK purchasers during RIK pilot activities.
    The three kinds of directed communication between operators and 
purchasers of RIK are: (1) Information about the volumes made available 
as RIK; (2) information about transportation of the RIK; and (3) 
information about correcting volumes made available as RIK. Experience 
with the Wyoming and Texas 8(g) Pilots demonstrates that the directed 
communication requirements differ according to the needs of each pilot 
situation. For example, in the Wyoming Pilot, RIK is delivered to the 
purchaser at the lease. Therefore, the direction to make transportation 
arrangements was not included in letters issued to those operators. For 
these reasons, we are not requesting approval of specific letters to 
operators but, instead, approval for the three kinds of reporting 
requirements concerning communications between operators and purchasers 
of RIK. By obtaining approval for these three kinds of reporting 
requirements, MMS will be able to select the types of directed 
communications needed for each pilot and include only those types in a 
letter appropriate to the operation of that pilot.
    The types of communication and supporting data MMS will require 
operators to use in setting up the monthly delivery of RIK to the 
purchaser are standard business practices in the oil and gas industry. 
The information in the directed communication is essential to the 
delivery and acceptance of verifiable quantities and qualities of oil 
and gas and is exchanged as a normal part of the conduct of those 
business activities, even when operators are not directed to do so. No 
proprietary information will be submitted to MMS under this collection. 
No items of a sensitive nature are collected. The requirement to 
respond is mandatory.
    The PRA 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.
    Burden Statement: The reporting burden is estimated to average 2 
minutes per response (oral, telefax communication) including the time 
for reviewing the instructions, gathering and maintaining supporting 
data (commonly maintained through electronic spreadsheets of balancing 
accounts).
    This direction of RIK communication does not represent a 
significant increase in burden, as it is standard industry practice to 
carry out this kind of information exchange when selling oil

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and gas production, regardless of whether directed to do so.
    In calculating the burden, we assume that respondents perform many 
of the requirements and maintain records in the normal course of their 
activities. We consider these usual and customary and take that into 
account in estimating the burden.
    Respondents/Affected Entities: Lessees or operators of Federal oil 
or gas leases participating in RIK pilot programs.
    Frequency of Collection: Monthly.
    Estimated Number of Respondents: 60 in Year 1; 75 in Year 2; and 
120 in Year 3.
    Estimated Total Annual Burden on Respondents: 97 hours in Year 1; 
280 in Year 2; and 410 in Year 3.
    MMS Information Collection Clearance Officer: Jo Ann Lauterbach 
(202) 208-7744.

    Dated April 21, 1999.
Lucy Querques Denett,
Associate Director for Royalty Management.
[FR Doc. 99-10425 Filed 4-23-99; 8:45 am]
BILLING CODE 4310-MR-P