[Federal Register Volume 67, Number 33 (Tuesday, February 19, 2002)]
[Notices]
[Pages 7394-7396]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-3878]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service


Agency Information Collection Activities: Proposed Collection, 
Comment Request

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Notice of an extension of a currently approved information 
collection (OMB Control Number 1010-0073).

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SUMMARY: To comply with the Paperwork Reduction Act (PRA) of 1995, we 
are inviting comments on a collection of information that we will 
submit to the Office of Management and Budget (OMB) for review and 
approval. The information collection request (ICR) is titled ``30 CFR 
part 220, Accounting Procedures for Determining Net Profit Share 
Payment for Outer Continental Shelf Oil and Gas Leases.''

DATES: Submit written comments on or before April 22, 2002.

ADDRESSES: Submit written comments to Carol P. Shelby, Regulatory 
Specialist, Minerals Management Service, Minerals Revenue Management, 
P.O. Box 25165, MS 320B2, Denver, Colorado 80225. If you use an 
overnight courier service, our courier address is Building 85, Room A-
614, Denver Federal Center, Denver, Colorado 80225.

FOR FURTHER INFORMATION CONTACT: Carol P. Shelby, telephone (303) 231-
3151 or FAX (303) 231-3385.

SUPPLEMENTARY INFORMATION:
    Title: 30 CFR part 220, Accounting Procedures for Determining Net 
Profit Share Payment for Outer Continental Shelf Oil and Gas Leases.
    OMB Control Number: 1010-0073.
    Bureau Form Number: None.
    Abstract: The Department of the Interior (DOI) is responsible for 
the management of all mineral leasing activities on Federal and Indian 
lands. The Federal Oil and Gas Royalty Management Act of 1982 (30 
U.S.C. 1701 et seq.) requires the Secretary of the Interior to 
establish a comprehensive fiscal accounting, auditing, and collection 
system to accurately determine oil and gas royalties and other 
payments, and to collect and account for those monies in a timely 
manner. The Secretary delegated the authority for royalty management to 
MMS to develop a net profit share bidding system to encourage 
exploration and development of oil and gas leases on submerged lands of 
the Outer Continental Shelf (OCS). Section 8(a) of the OCS Lands Act, 
as amended (43 U.S.C. 1331 et seq.), authorizes DOI

[[Page 7395]]

to implement alternative bidding systems for the award of Federal oil 
and gas leases on the OCS. The net profit share lease (NPSL) system 
endeavors to balance the securing of a fair market return to the 
Federal Government for the lease of its lands with a fair profit to 
companies risking their investment capital. The system provides an 
incentive for early and expeditious exploration and development and 
provides for a sharing of the risks by the lessee and the Government. 
The bidding system incorporates a fixed capital recovery system as the 
means through which the lessee recovers costs of exploration and 
development from production revenues, along with a reasonable return on 
investment.
    NPSL lessees are required to maintain an NPSL capital account and 
to provide either annual or monthly reports using data maintained in 
the capital account. In addition, NPSL lessees must file a report after 
each inventory of controllable material and following the cessation of 
production. Further, when nonoperators of an NPSL lease call for an 
audit, they must notify MMS, and when DOI calls for an audit, the 
lessee must notify all nonoperators on the lease. These requirements 
can be found in 30 CFR 220.010, 220.031, and 220.033.
    MMS is requesting an extension of OMB's approval to continue to 
collect this information. Submission of this information is required in 
order for MMS to determine when NPSL royalty payments are due and to 
determine the proper amount of payment. Proprietary information that is 
submitted is protected, and there are no questions of a sensitive 
nature included in this information collection.
    Frequency: Annually before production; monthly after production.
    Estimated Number and Description of Respondents: 12 OCS oil and gas 
lessees.
    Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 3,674 
hours. The following chart shows the breakdown of the burden hours by 
CFR section and paragraph:

----------------------------------------------------------------------------------------------------------------
                                            Reporting or record    Burden hours    Annual number   Annual burden
                 Section                    keeping requirement    per response    of responses        hours
----------------------------------------------------------------------------------------------------------------
220.010(a)..............................  For each NPSL tract,                  See Sec.  220.030(a)
                                           an NPSL capital
                                           account shall be
                                           established and
                                           maintained by the
                                           lessee for NPSL
                                           operations.
220.030(a)..............................  Each lessee * * *                    1              22              22
                                           shall establish and
                                           maintain such records
                                           as are necessary * *
                                           *.
220.031(a)..............................  Each lessee * * *                   16               5              80
                                           shall file an annual
                                           report during the
                                           period from issuance
                                           of the NPSL until the
                                           first month in which
                                           production revenues
                                           are credited to the
                                           NPSL capital account.
220.031(b)..............................  Beginning with the                  16            *204           3,264
                                           first month in which
                                           production revenues
                                           are credited to the
                                           NPSL capital account,
                                           each lessee * * *
                                           shall file a report
                                           for each NPSL, not
                                           later than 60 days
                                           following the end of
                                           each month.
220.031(d)..............................  Each lessee subject to               8              22             176
                                           this part 220 shall
                                           file a report not
                                           later than 90 days
                                           after each inventory
                                           is taken * * *..
220.031(e)..............................  Each lessee * * *                    2              22              44
                                           shall file a final
                                           report, not later
                                           than 60 days
                                           following the
                                           cessation of
                                           production * * *.
220.033(b)(1)...........................  When non-operators of                2              22              44
                                           an NPSL lease call an
                                           audit in accordance
                                           with the terms of
                                           their operating
                                           agreement, the
                                           Director shall be
                                           notified of the audit
                                           call * * *.
                                                                 -----------------------------------------------
220.033(b)(2)...........................  If DOI determines to                 2              22              44
                                           call for an audit,
                                           DOI shall notify the
                                           lessee of its audit
                                           call and set a time
                                           and place for the
                                           audit. * * * The
                                           lessee shall send
                                           copies of the now
                                           operators on the
                                           lease.
                                                                 -----------------------------------------------
    Total...............................  ......................  ..............             319          3,674
----------------------------------------------------------------------------------------------------------------
* (17 leases  x  12 mo.)

    Estimated Annual Reporting and Recordkeeping ``Non-hour Cost'' 
Burden: We have identified no ``non-hour'' cost burdens.
    Comments: The PRA (44 U.S.C. 3501, et seq.) 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. Before submitting an ICR to OMB, PRA Section 
3506(c)(2)(A) 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.
    The PRA also requires agencies to estimate the total annual 
reporting ``non-hour cost'' burden to respondents or recordkeepers 
resulting from the collection of information. We have not identified 
non-hour cost burdens for this information collection. If you have 
costs to generate, maintain, and disclose this information, you should 
comment and provide your total capital and startup cost components or 
annual operation, maintenance, and purchase of service components. 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, testing equipment; and record 
storage facilities. Generally, your estimates should not include 
equipment

[[Page 7396]]

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.
    We will summarize written responses to this notice and address them 
in our ICR submission for OMB approval, including appropriate 
adjustments to the estimated burden. We will provide a copy of the ICR 
to you without charge upon request.
    Public Comment Policy. We will make copies of the comments 
available for public review, including names and addresses of 
respondents, during regular business hours at our offices in Lakewood, 
Colorado. Individual respondents may request that we withhold their 
home address from the public record, which we will honor to the extent 
allowable by law. There also may be circumstances in which we would 
withhold from the rulemaking record a respondent's identity, as 
allowable by law. If you request that we withhold your name and/or 
address, state this prominently at the beginning of your comment. 
However, we will not consider anonymous comments. We will make all 
submissions from organizations or businesses, and from individuals 
identifying themselves as representatives or officials of organizations 
or businesses, available for public inspection in their entirety.
    MMS Information Collection Clearance Officer: Jo Ann Lauterbach, 
(202) 208-7744.

    Dated: January 31, 2002.
Cathy J. Hamilton,
Acting Associate Director for Minerals Revenue Management.
[FR Doc. 02-3878 Filed 2-15-02; 8:45 am]
BILLING CODE 4310-MR-P