[Federal Register Volume 64, Number 156 (Friday, August 13, 1999)]
[Notices]
[Pages 44236-44237]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-20994]


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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, 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 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 the proposed 
extension of an existing collection of information titled Directed 
Third-Party Communications Between Operators and Deliverers of Federal 
RIK Production to Strategic Petroleum Reserve (OMB Control Number 1010-
0130).

DATES: Submit written comments on the collection of information by 
October 12, 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 Richard Winnor, RIK Study 
Team, telephone (202) 208-3118. 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

[[Page 44237]]

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 
Deliverers of Federal RIK Production to Strategic Petroleum Reserve--
Extension.
    OMB Control Number: 1010-0130.
    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 may 
take the Government's royalty in the form of production, that is, as 
royalty-in-kind (RIK).
    On February 11, 1999, the Department of the Interior announced that 
it will assist in an Administration initiative to collect RIK crude oil 
production from Federal lessees in the Gulf of Mexico and transfer the 
RIK to the Department of Energy (DOE). DOE will use the RIK oil to 
refill 28 million barrels of oil removed several years ago from the 
Strategic Petroleum Reserve (SPR). DOE published a Request for Offers 
in April 1999 for the exchange of Federal RIK crude oil for oil to be 
delivered to the SPR. This initiative is separate from MMS's RIK 
program for eligible refiners of crude oil. It is also separate from 
MMS's three RIK pilot projects and investigation of direct Federal 
consumption which are being conducted to show whether or not RIK is 
viable for the Federal Government.
    To assure timely delivery to DOE of MMS's correct volume of RIK 
production, MMS is issuing letters directing lessees and operators, 
from whose Federal leases RIK is to be taken, to carry out all 
necessary communications needed during the exchanges and deliveries. 
OMB granted emergency approval (OMB Control Number 1010-0130, 
expiration date November 30, 1999) for MMS to instruct lessees or their 
operators through such a letter, which contains reporting and 
recordkeeping requirements, to conduct all necessary communications 
with RIK exchange contractors during RIK SPR activities.
    The three kinds of directed communication between operators and 
exchange contractors are: (1) information about the volumes, quality, 
and delivery dates of production being made available as RIK; (2) 
information correcting volumes, quality, and timing of delivery and 
acceptance of RIK production; and (3) information concerning 
transportation costs, if needed. Experience with RIK Pilots 
demonstrates that the directed communication requirements differ 
according to the needs of each situation. We had reasoned that, by 
obtaining approval for these three kinds of reporting requirements (as 
opposed to approval of a number of specific letters to operators), we 
could draft situation-specific letters--that is letters including only 
the types of directed communications needed for each pilot situation. 
This logic and the substance of the situation applies to the SPR 
situation also.
    The types of communication and supporting data we will require 
operators to use in setting up the monthly delivery of RIK to the SPR 
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 including the time for reviewing the instructions. 
In calculating the burden, we assume that respondents perform many of 
the requirements and maintain records in the usual and customary course 
of their business activities.
    Respondents/Affected Entities: Lessees or operators of Federal oil 
or gas leases participating in delivery of Federal RIK production to 
the SPR.
    Frequency of Collection: Monthly.
    Estimated Number of Respondents: 42 in Year 1; and 42 in Year 2.
    Estimated Total Annual Burden on Respondents: 26 hours in Year 1; 
and 46 in Year 2.
    MMS Information Collection Clearance Officer: Jo Ann Lauterbach 
(202) 208-7744.

    Dated: August 6, 1999.
Lucy Querques Denett,
Associate Director for Royalty Management.
[FR Doc. 99-20994 Filed 8-12-99; 8:45 am]
BILLING CODE 4310-MR-P