[Federal Register Volume 68, Number 67 (Tuesday, April 8, 2003)]
[Notices]
[Pages 17073-17075]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-8533]


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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 1010-0088).

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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 227, Delegation to States.''

DATES: Submit written comments on or before June 9, 2003.

ADDRESSES: Submit written 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 we have received your email, contact Ms. Gebhardt at (303) 
231-3211.

FOR FURTHER INFORMATION CONTACT: Sharron L. Gebhardt, telephone (303) 
231-3211, FAX (303) 231-3385 or email [email protected].

SUPPLEMENTARY INFORMATION:
    Title: 30 CFR Part 227, Delegation to States.
    OMB Control Number: 1010-0088.
    Bureau Form Number: None.
    Abstract: The Secretary of the U.S. Department of the Interior 
(DOI) is responsible for collecting royalties from lessees who produce 
minerals from leased Federal and Indian lands. The Secretary is 
required by various laws to manage mineral resources production on 
Federal and Indian lands, collect the royalties due, and distribute the 
funds in accordance with those laws. The Secretary also 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.
    The Federal Oil and Gas Royalty Simplification and Fairness Act of 
1996 (RSFA), Public Law 104-185, as corrected by Public Law 104-200, 
amends the Federal Oil and Gas Royalty Management Act of 1982 (FOGRMA), 
30 U.S.C. 1701 et seq. Prior to enactment of RSFA, section 205 of 
FOGRMA, 30 U.S.C. 1735, provided for the delegation of audits, 
inspections, and investigations to the States. RSFA amendments to 
section 205 of FOGRMA provided that other Federal royalty management 
functions may also be delegated to requesting States. RSFA authorized 
the following Federal royalty management functions to States:
    a. Conducting audits and investigations;
    b. Receiving and processing production and royalty reports;
    c. Correcting erroneous report data;
    d. Performing automated verification; and
    e. Issuing demands, subpoenas (except for solid mineral and 
geothermal leases), orders to perform restructured accounting, and 
related tolling agreements and notices to lessees or their designees.
    Currently, 10 States have delegation agreements to perform audits 
and investigations, which is the same function previously authorized 
under FOGRMA in 1982. Since the passage of RSFA and publication of the 
final rule on August 12, 1997, no States have proposed a delegation 
agreement to assume the four additional functions authorized by RSFA. 
When a State performs any of the delegated functions under the 30 CFR 
part 227 regulations, the State also assumes the burden of providing 
various types of information to MMS. This information, provided to MMS 
in the course of performing the work of the delegated functions, is the 
focus of this information collection.
    The requirement to respond is mandatory. If a State were to perform 
the function of processing royalty and production reports, that State 
would submit proprietary data to MMS, and both the State and MMS are 
required to safeguard and protect proprietary data. No items of a 
sensitive nature are collected.
    Frequency of Response: Depending on the function being performed, 
information can be daily, monthly, quarterly, or annually.
    Estimated Number and Description of Respondents: 10 States 
currently have delegation agreements to do audits and investigations. 
We estimated that one State per year may request to perform the four 
additional functions authorized by RSFA.
    Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 4,179 
hours.
    The following chart shows the breakdown of the estimated burden 
hours by CFR section and paragraph:

[[Page 17074]]



                                    State Respondent Annual Burden Hour Chart
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                                                                   Burden hours   Annual  number  Annual  burden
        30 CFR section               Reporting requirement         per response    of  responses       hours
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227.103; 227.107; 227.109;      If you want MMS to delegate                200                 3             600
 227.110(a), (b)(1) and (2),     royalty performed management
 (c), (d), and (e); 227.111(a)   functions to you, then you
 and (b); 227.805.               must submit a delegation
                                 proposal to the MMS Associate
                                 Director for Minerals Revenue
                                 Management. MMS may extend the
                                 90-day period with your
                                 written consent. You may
                                 submit a new delegation
                                 proposal at any time following
                                 a the denial * * * and upon
                                 request, [MMS] will send a
                                 copy of the delegation
                                 proposals to trade
                                 associations to distribute to
                                 their members * * * You may
                                 ask MMS to renew the
                                 delegation for an additional 3
                                 years no less than 6 months
                                 before your 3-year delegation
                                 agreement expires. You must
                                 submit your renewal request to
                                 the MMS Associate Director for
                                 Minerals Revenue Management *
                                 * * You may submit a new
                                 renewal request any time after
                                 denial. After the 3-year
                                 renewal period for your
                                 delegation agreement ends, if
                                 you wish to continue
                                 performing one or more
                                 delegated functions, you must
                                 request a new delegation
                                 agreement from MMS * * * If
                                 you do not request a hearing *
                                 * * any other affected person
                                 may submit a written request
                                 for a hearing to the MMS
                                 Associate Director for
                                 Minerals Revenue Management.
                                 Before the agreement expires,
                                 if you wish to continue to
                                 perform one or more of the
                                 delegated functions you
                                 performed under the expired
                                 agreement, you must request a
                                 new delegation agreement
                                 meeting the requirements of
                                 this part and the applicable
                                 standards. If you want perform
                                 to royalty management
                                 functions in addition to those
                                 authorized under your existing
                                 agreement you must request a
                                 new delegation * * * After yur
                                 delegation agreement is
                                 terminated, you may apply
                                 again for delegation by
                                 beginning with the propsosal
                                 process under this part.
227.112(d) and (e)............  At a minimum, you must provide               4                80             320
                                 vouchers detailing your
                                 expenditures quarterly during
                                 the fiscal year; You must
                                 maintain adequate books and
                                 records to support your
                                 vouchers.
227.200(a), (b)(1), (2), (3),   * * * You must seek information            200                10           2,000
 (4), and (5); (c), and (d).     or guidance from MMS regarding
                                 new, complex, or unique
                                 issues. Provide complete
                                 disclosure of financial
                                 results of activities;
                                 Maintain correct and accurate
                                 records of all mineral-related
                                 transactions and accounts;
                                 Maintain effective controls
                                 and accountability; Maintain
                                 effective system of accounts *
                                 * * Maintain adequate royalty
                                 and production information * *
                                 * Assist MMS in meeting the
                                 requirements of * * * GPRA;
                                 Maintain all records you
                                 obtain or create * * *.
227.200(e) and (h);             Provide months prior reports to              3                80             240
 227.801(a); 227.804.            MMS about your to activities
                                 under your delegated functions
                                 (progress reports) * * * you
                                 must provide periodic
                                 statistical reports to MMS
                                 summarizing the activities you
                                 carried out * * * Help MMS
                                 respond to requests for
                                 information from other Federal
                                 agencies, Congress, and the
                                 public * * * You may ask MMS
                                 for an extension of time to
                                 comply with the notice. In
                                 your extension request you
                                 must explain why you need more
                                 time * * * You may request MMS
                                 to terminate your delegation
                                 at any time by submitting your
                                 written notice of intent 6
                                 months prior to the date on
                                 which you want to terminate *
                                 * *.
227.200(f); 227.401(e) 227.601  Assist MMS in maintaining                     .5             250             125
 (d).                            adequate reference, royalty,
                                 and production databases;
                                 access well, lease, agreement,
                                 and reporter reference data
                                 from MMS, and provide updated
                                 information to MMS. * * *
                                 Access well, lease, agreement,
                                 and production reporter or
                                 royalty reporter reference
                                 data from MMS and provide
                                 updated information to MMS * *
                                 *.
227.200(g)....................  Develop annual work plans * * *             60                10             600
227.400(a) (4), (6) 227.401     If you request delegation of                  .5             250             125
 (d).                            either production report or
                                 royalty report processing
                                 functions, you must perform *
                                 * * timely transmitting
                                 production report or royalty
                                 report data to MMS and other
                                 affected Federal agencies * *
                                 * Providing production data or
                                 royalty data to MMS and other
                                 affected Federal agencies * *
                                 * Timely transmit required
                                 production or royalty data to
                                 MMS and other affected Federal
                                 agencies * * *.
7.400(c)                        You must provide MMS with a                 20                 1              20
                                 copy of any exceptions from
                                 reporting and payment
                                 requirements for marginal
                                 properties and any alternative
                                 royalty and payment
                                 requirements for unit
                                 agreements and communitization
                                 agreements you approve.
227.501(c)....................  Submit accepted and corrected                 .5             250             125
                                 lines to MMS to allow
                                 processing in a timely manner
                                 * * *.

[[Page 17075]]

 
227.601(c)....................  To perform automated                         2                12              24
                                 verification or production
                                 reports or royalty reports,
                                 you must: Maintain all
                                 documentation and logging
                                 procedures * * *.
                               ----------------------------------
    Total.....................  ...............................  ...............             946           4,179
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    Estimated Annual Reporting and Recordkeeping ``Non-hour Cost'' 
Burden: The non-hour cost burden for one State to assume the four 
additional functions authorized by RSFA is estimated at $60,000 for 
electronic processing and imaging capability.
    Comments: The PRA (44 U.S.C. 3501, et seq.) provides 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. The non-hour cost burden 
for one State to assume the four additional functions authorized by 
RSFA is estimated at $60,000 for electronic processing and imaging 
capability. 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 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, and the ICR will also be posted on 
our Web site at http://www.mrm.mms.gov/Laws_R_D/FRNotices/FRInfColl.htm.
    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/FRNotices/FRInfColl.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 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: April 2, 2003.
Lucy Querques Denett,
Associate Director for Minerals Revenue Management.
[FR Doc. 03-8533 Filed 4-7-03; 8:45 am]
BILLING CODE 4310-MR-P