[Federal Register Volume 67, Number 134 (Friday, July 12, 2002)]
[Notices]
[Pages 46209-46210]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-17541]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service


Agency Information Collection Activities: Submitted for Office of 
Management and Budget (OMB) Review; 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 submitting to OMB for review and approval an information collection 
request (ICR) titled ``30 CFR Part 220, Accounting Procedures for 
Determining Net Profit Share Payment for Outer Continental Shelf Oil 
and Gas Leases.'' We are also soliciting comments from the public on 
this ICR.

DATES: Submit written comments on or before August 12, 2002.

ADDRESSES: Submit written comments to the Office of Information and 
Regulatory Affairs, OMB, Attention: Desk Officer for the Department of 
the Interior (OMB Control Number 1010-0073), 725 17th Street, NW., 
Washington, DC 20503. Also, submit copies of your written comments to 
Carol 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, MMS's courier address 
is Building 85, Room A-614, Denver Federal Center, Denver, Colorado 
80225. You may also submit your comments at our email address 
[email protected]. Include the title of the information collection 
and the OMB control number in the ``Attention'' line of your comment. 
Also include your name and return address. Submit electronic comments 
as an ASCII file avoiding the use of special characters and any form of 
encryption. If you do not receive a confirmation that we have received 
your email, contact Ms. Shelby at (303) 231-3151 or FAX (303) 231-3385.

FOR FURTHER INFORMATION CONTACT: Carol Shelby, telephone (303) 231-
3151, FAX (303) 231-3385, or email [email protected].

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 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.
    The 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.
    The 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:

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                                           Reporting or record     Burden  hours  Annual  number  Annual  burden
                Section                    keeping requirement     per  response   of  responses       hours
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220.010(a) 220.030(a).................  For each NPSL tract, an                1              22              22
                                         NPSL capital account
                                         shall be established
                                         and maintained by the
                                         lessee for NPSL
                                         operations. Each lessee
                                         * * * shall establish
                                         and maintain such
                                         records as are
                                         necessary * * *.
----------------------------------------------------------------------------------------------------------------
220.031(a)............................  Each lessee * * * shall               16               5              80
                                         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.
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[[Page 46210]]

 
220.031(b)............................  Beginning with the first              16         \1\ 204           3,264
                                         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 * * * shall                8              22             176
                                         file a report not later
                                         than 90 days after each
                                         inventory is taken * *
                                         *.
----------------------------------------------------------------------------------------------------------------
220.031(e)............................  Each lessee * * * shall                2              22              44
                                         file a final report,
                                         not later than 60 days
                                         following the cessation
                                         of production * * *.
----------------------------------------------------------------------------------------------------------------
220.033(b)(1).........................  When non-operators of an               2              22              44
                                         NPSL lease call an
                                         audit in accordance
                                         with the terms of their
                                         operating agreement,
                                         the Director shall be
                                         notified of the audit
                                         call * * *.
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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 notice to
                                         the non-operators on
                                         the lease.
                                                                 -----------------------------------------------
    Total.............................    ......................  ..............             319          3,674
----------------------------------------------------------------------------------------------------------------
\1\ 17 leases x 12 months.

    Estimated Annual Reporting and Recordkeeping ``Non-hour Cost'' 
Burden: We have identified no ``non-hour'' cost burdens.
    Comments: Section 3506(c)(2)(A) of the PRA (44 U.S.C. 3501 et seq.) 
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.
    To comply with the public consultation process, on February 19, 
2002, we published a Federal Register notice (67 FR 7394) with the 
required 60-day comment period announcing that we would submit this ICR 
to OMB for approval. We did not receive any comments. We have posted a 
copy of the ICR at our Internet Web site http://www.mrm.mms.gov/Laws_R_D/FRNotices/FRInfColl.htm. We will also provide a copy of the 
ICR to you without charge upon request.
    If you wish to comment in response to this notice, please send your 
comments directly to the offices listed under the ADDRESSES section of 
this notice. The OMB has up to 60 days to approve or disapprove the 
information collection but may respond after 30 days. Therefore, to 
ensure maximum consideration, OMB should receive your comments by 
August 12, 2002. 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.
    Public Comment Policy. We will post all comments received in 
response to this notice on our Internet Web site at http://www.mrm.mms.gov/Laws_R_D/InfoColl/InfoColCom.htm for public review. We 
also make copies of the comments, including names and addresses of 
respondents, available for public review 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 record a respondent's identity, as allowable by law. 
If you wish us to withhold your name and/or address, you must 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: June 21, 2002.
Lucy Querques Denett,
Associate Director for Minerals Revenue Management.
[FR Doc. 02-17541 Filed 7-11-02; 8:45 am]
BILLING CODE 4310-MR-U