[Federal Register Volume 68, Number 24 (Wednesday, February 5, 2003)]
[Notices]
[Pages 5916-5919]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-2646]


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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 1010-0103).

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SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), we 
are notifying the public that we have submitted to OMB an information 
collection request (ICR) to renew approval of the paperwork 
requirements in the regulations under 30 CFR Part 206, Subpart E--
Indian Gas. This notice also provides the public a second opportunity 
to comment on the paperwork burden of these regulatory requirements. 
The ICR is titled ``30 CFR Part 206, Subpart E--Indian Gas (Form MMS-
4411, Safety Net Report)''.

DATES: Submit written comments on or before March 7, 2003.

ADDRESSES: Submit written comments directly to the Office of 
Information and Regulatory Affairs, OMB, Attention: Desk Officer for 
the Department of the Interior (OMB Control Number 1010-0103), 725 17th 
Street, NW., Washington, DC 20503. Mail or hand-carry a copy of your 
comments to Sharron L. Gebhardt, 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. You may also email your comments to us at 
[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 e-mail, contact Ms. Gebhardt at (303) 231-3211.

FOR FURTHER INFORMATION CONTACT: Sharron L. Gebhardt, telephone (303) 
231-3211, FAX (303) 231-3385, email [email protected]. You may 
also contact Sharron Gebhardt to obtain a copy at no cost of the form 
and regulations that require the subject collection of information.

SUPPLEMENTARY INFORMATION:
    Title: 30 CFR Part 206, Subpart E--Indian Gas (Form MMS-4411, 
Safety Net Report).
    OMB Control Number: 1010-0103.
    Bureau Form Number: Form MMS-4411.
    Abstract: The Department of the Interior (DOI) is responsible for 
matters relevant to mineral resource development on Federal and Indian 
lands and the Outer Continental Shelf (OCS). The Secretary of the 
Interior (Secretary) is responsible for managing the production of 
minerals from Federal and Indian lands and the OCS, collecting 
royalties from lessees who produce minerals, and distributing the funds 
collected in accordance with applicable laws. The Secretary has an 
Indian trust responsibility to manage Indian lands and seek advice and 
information from Indian beneficiaries. MMS performs the royalty 
management functions and assists the Secretary in carrying out DOI's 
Indian trust responsibility.
    On August 10, 1999, MMS published in the Federal Register (64 FR 
43506) a final rulemaking titled ``Amendments to Gas Valuation 
Regulations for Indian Leases,'' with an effective date of January 1, 
2000. These regulations are codified at 30 CFR Part 206, Subpart E. 
Form MMS-4411, Safety Net Report, governs the valuation for royalty

[[Page 5917]]

purposes of natural gas produced from Indian leases. In 30 CFR 
206.172(e), MMS requires that lessees submit Form MMS-4411 when gas 
production from an Indian lease is sold beyond the first index pricing 
point. The gas regulations apply to all gas production from Indian 
(tribal or allotted) oil and gas leases (except leases on the Osage 
Indian Reservation).
    Form MMS-4411 ensures Indian mineral lessors receive the maximum 
revenues from mineral resources on their land consistent with the 
Secretary's trust responsibility and lease terms. It permits lessees to 
comply with the regulatory requirements at the time that royalties are 
due.
    The safety net calculation establishes the minimum value, for 
royalty purposes, of natural gas production from Indian leases. This 
reporting requirement will assist the Indian lessor in receiving all 
the royalties that are due and aid MMS in its compliance efforts. The 
safety net price is calculated using prices received for gas sold 
downstream of the first index pricing point. It will include only the 
lessee's or the lessee's affiliate's arm's-length sales price, and it 
will not require detailed calculations for the costs of transportation. 
By June 30 following any calendar year, the lessee calculates a safety 
net price for each month of the previous calendar year. Lessees must 
calculate the safety net prices for each index zone where the lessee 
has an Indian lease and the gas is sold beyond the first index pricing 
point. The safety net price will capture the significantly higher 
values for sales occurring beyond the index point. The lessee will 
submit its safety net prices to MMS annually (by June 30) using Form 
MMS-4411.
    We are also revising this ICR to include reporting requirements 
that were inadvertently overlooked when the final rule was published. 
See the chart below for these requirements and associated burden hours. 
These reporting requirements are rare and unusual circumstances where 
the standard valuation procedures set out in the Indian gas valuation 
rule are not appropriate.
    MMS is requesting OMB's approval to continue to collect this 
information. Not collecting this information would limit the 
Secretary's ability to discharge his/her duties and may also result in 
loss of royalty payments to the Indian lessor due to royalties not 
being collected on prices received under higher priced long-term sales 
contracts. Proprietary information submitted is protected, and there 
are no questions of a sensitive nature included in this information 
collection.
    We have also changed the title of this ICR from ``Safety Net 
Report'' to ``30 CFR part 206, subpart E--Indian Gas (Form MMS-4411, 
Safety Net Report),'' to clarify the regulatory language we are 
covering under 30 CFR Part 206.
    Frequency: Annually.
    Estimated Number and Description of Respondents: 29 Indian lessees/
lessors.
    Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 1,012 
hours.
    The following chart details the individual components and estimated 
hour burdens. In calculating the burdens, we assumed that respondents 
perform certain requirements in the normal course of their activities. 
Therefore, we consider these to be usual and customary and took that 
into account in estimating the burden.

----------------------------------------------------------------------------------------------------------------
                                                                   Burden hours    Annual number   Annual burden
        30 CFR section                Reporting requirement        per response    of responses        hours
----------------------------------------------------------------------------------------------------------------
206.172(e)(6)(i) and (iii)....  You must report the safety net                25              24             600
                                 price for each index zone to
                                 MMS on Form MMS-4411, Safety
                                 Net Report, no later than June
                                 30 following each calendar year
                                 * * * MMS may order you to
                                 amend your safety net price
                                 within one year from the date
                                 your Form MMS-4411 is due or is
                                 filed, whichever is later.
206.172(f)(1)(ii), (2), and     An Indian tribe may ask MMS to                40               1              40
 (3).                            exclude some or all of its
                                 leases from valuation under
                                 this section * * * If an Indian
                                 tribe requests exclusion from
                                 an index zone for less than all
                                 of its leases, MMS will approve
                                 the request only if the
                                 excluded leases may be
                                 segregated into one or more
                                 groups based on separate fields
                                 within the reservation * * * An
                                 Indian tribe may ask MMS to
                                 terminate exclusion of its
                                 leases from valuation under
                                 this section * * * The Indian
                                 tribe's request to MMS under
                                 either paragraph (f)(1) or (2)
                                 of this section must be in the
                                 form of a tribal resolution.
206.174(f)....................  You may ask MMS for guidance in               40               1              40
                                 determining value. You may
                                 propose a valuation method to
                                 MMS. Submit all available data
                                 related to your proposal and
                                 any additional information MMS
                                 deems necessary.
206.175(d)(4).................  You may request MMS approval of               20               1              20
                                 other methods for determining
                                 the quantity of residue gas and
                                 gas plant products allocable to
                                 each lease.
-------------------------------
                                            Transportation Allowances
----------------------------------------------------------------------------------------------------------------
206.178(a)(1)(i)..............  You are required to submit to                  8               2              16
                                 MMS a copy of your arm's-length
                                 transportation contract(s) and
                                 all subsequent amendments to
                                 the contract(s) within 2 months
                                 of the date MMS receives your
                                 report which claims the
                                 allowance on the Form MMS-2014.
206.178(a)(2)(i) and (ii).....  * * * you cannot take an                      20               1              20
                                 allowance for the costs of
                                 transporting lease production
                                 that is not royalty bearing
                                 without MMS approval, or
                                 without lessor approval on
                                 tribal leases. * * * As an
                                 alternative to paragraph
                                 (a)(2)(i), * * * you may
                                 propose to MMS a cost
                                 allocation method based on the
                                 values of the products
                                 transported.

[[Page 5918]]

 
206.178(a)(3)(i) and (ii).....  If your arm's-length                          40               1              40
                                 transportation contract
                                 includes both gaseous and
                                 liquid products and the
                                 transportation costs
                                 attributable to each cannot be
                                 determined from the contract,
                                 you must propose an allocation
                                 procedure to MMS. You are
                                 required to submit all relevant
                                 data to support your allocation
                                 proposal.
206.178(b)(2)(iv).............  * * * you may not later elect to              20               1              20
                                 change to the other alternative
                                 without MMS approval.
206.178(b)(2)(iv)(A)..........  Once you make an election * * *               20               1              20
                                 you may not change methods
                                 without MMS approval.
206.178(b)(3)(i)..............  Except as provided in this                    40               1              40
                                 paragraph, you may not take an
                                 allowance for transporting a
                                 product that is not royalty
                                 bearing without MMS approval.
206.178(b)(3)(ii).............  As an alternative to the                      See 206.178(a)(2)(ii).
                                 requirements of paragraph
                                 (b)(3)(i) of this section, you
                                 may propose to MMS a cost
                                 allocation method based on the
                                 values of the products
                                 transported.
206.178(b)(5).................  If you transport both gaseous              See 206.178(a)(3)(i) & (ii).
                                 and liquid products through the
                                 same transportation system, you
                                 must propose a cost allocation
                                 procedure to MMS. . . . You are
                                 required to submit all relevant
                                 data to support your proposal.
-------------------------------
                                              Processing Allowances
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206.180(a)(1)(i)..............  You are required to submit to                  8               2              16
                                 MMS a copy of your arm's-length
                                 processing contract(s) and all
                                 subsequent amendments to the
                                 contract(s) within 2 months of
                                 the date MMS receives your
                                 first report that deducts the
                                 allowance on the Form MMS-2014.
206.180(a)(3).................  If your arm's-length processing               40               1              40
                                 contract includes more than one
                                 gas plant product and the
                                 processing costs attributable
                                 to each product cannot be
                                 determined from the contract,
                                 you must propose an allocation
                                 procedure to MMS * * * You are
                                 required to submit all relevant
                                 data to support your proposal.
206.180(b)(2)(iv).............  After you elect to use either                 20               1              20
                                 method [depreciation with a
                                 return on undepreciable capital
                                 investment or a return on
                                 depreciable capital investment]
                                 for a processing plant, you may
                                 not later elect to change to
                                 the other alternative without
                                 MMS approval.
206.180(b)(2)(iv)(A)..........  Once you make an election, you                20               1              20
                                 may not change [depreciation or
                                 unit of production] methods
                                 without MMS approval.
206.180(b)(3).................  Your processing allowance under               20               1              20
                                 this paragraph (b) must be
                                 determined based upon a
                                 calendar year or other period
                                 if you and MMS agree to an
                                 alternative.
206.181(c)....................  A proposed comparable processing              40               1              40
                                 fee submitted to either the
                                 Tribe and MMS (for tribal
                                 leases) or MMS (for allotted
                                 leases) with your supporting
                                 documentation submitted to MMS.
                                 If MMS does not take action on
                                 your proposal within 120 days,
                                 the proposal will be deemed to
                                 be denied and subject to appeal
                                 to the MMS Director under 30
                                 CFR part 290.
-------------------------------
      Total...................  ................................  ..............              41           1,012
----------------------------------------------------------------------------------------------------------------

    Estimated Annual Reporting and Recordkeeping ``Non-hour Cost'' 
Burden: We have identified no ``non-hour'' cost burdens.
    Public Disclosure Statement: 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.
    Comments: Section 3506(c)(2)(A) of the PRA 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, we published a 
Federal Register Notice (67 FR 66658) on November 1, 2002, announcing 
that we would submit this ICR to OMB for approval. The notice provided 
the required 60-day comment period. We received no comments in response 
to the notice.

[[Page 5919]]

    If you wish to comment in response to this notice, you may send 
your comments to the offices listed under the ADDRESSES section of this 
notice. 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 public comments by March 7, 2003.
    Public Comment Policy. We will post all comments in response to 
this notice on our Web site at http://www.mrm.mms.gov/Laws_R_D/InfoColl/InfoColCom.htm. We will also 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 28, 2003.
Lucy Querques Denett,
Associate Director for Minerals Revenue Management.
[FR Doc. 03-2646 Filed 2-4-03; 8:45 am]
BILLING CODE 4310-MR-P