[Federal Register Volume 68, Number 74 (Thursday, April 17, 2003)]
[Notices]
[Pages 19004-19006]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-9417]


-----------------------------------------------------------------------

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 1010-0126).

-----------------------------------------------------------------------

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. This notice also provides the public a 
second opportunity to comment on the paperwork burden of these 
regulatory requirements. The ICR is titled ``Royalty-in-Kind (RIK) 
Pilot Program--Directed Communications by Operators of Federal Oil and 
Gas Leases.''

DATES: Submit written comments on or before May 19, 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 1010-0126), 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 email, contact Ms. Gebhardt at (303) 231-3211.

FOR FURTHER INFORMATION CONTACT: Sharron L. Gebhardt, telephone (303) 
231-3211, FAX (303) 231-3781, email [email protected]. You may 
also contact Sharron Gebhardt to obtain a copy at no cost of the 
regulations that require the subject collection of information.

SUPPLEMENTARY INFORMATION:
    Title: ``Royalty-in-Kind (RIK) Pilot Program--Directed 
Communications by Operators of Federal Oil and Gas Leases.''
    OMB Control Number: 1010-0126.
    Bureau Form Number: None.
    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) under the Mineral Leasing Act (30 U.S.C. 192) and 
the OCS Lands Act (43 U.S.C. 1353) 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. 
MMS performs the royalty management functions for the Secretary.
    Most royalties are now paid in value. For example, 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 has undertaken several pilot 
programs to study the feasibility of taking the Government's royalty in 
the form of production, that is, as RIK.
    Collection of RIK requires communication between MMS and the 
operators of a lease to assure accurate and timely delivery of MMS's 
royalty share of production volumes.
    MMS, as responsible steward of oil and gas royalties, must direct 
operators of affected MMS leases to carry out three types of 
communication to take MMS's RIK crude oil or natural gas. The types of 
information that operators must provide are as follows:
    (1) About 8-10 days before end of the month, report initial 
information about the projected volumes and qualities of RIK production 
the operator expects to make available in the next month, and 
corrections to those projected volumes and qualities for the month, 
submitted at varying frequencies during the month;
    (2) When needed, report billing information about transportation/
billing arrangements for the RIK to the delivery point, and
    (3) Report month-end summary information (lease imbalance 
statement) about total RIK volumes and qualities needed to carry over 
to the next month to resolve aggregated imbalances that have incurred 
in prior months of RIK deliveries.
    Experience with the Wyoming and Texas 8(g) Pilots demonstrate 
directed communication requirements differed according to the needs of 
each pilot situation. For example, in the Wyoming Pilot, RIK was 
delivered to the purchasers at the lease. Therefore, the direction to 
make transportation arrangements was included in ``Dear Operator'' 
letters issued to those operators. For these reasons, we are not 
requesting OMB approval of specific ``Dear Operator'' letters to 
operators but, instead, requesting OMB approval to continue collecting 
the three kinds of reporting requirements concerning

[[Page 19005]]

communications between operators and MMS. By obtaining continued 
approval for these three kinds of reporting requirements, MMS will be 
able to select the types of directed communications needed for each 
situation and include only those types in a ``Dear Operator'' letter 
appropriate to the operation.
    The types of communication and the supporting data MMS will require 
operators to use in setting up the monthly delivery of RIK to the 
purchaser 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 the operators are not directed to do so.
    In addition, due to their similarity, we are merging this ICR with 
OMB Control Number 1010-0130, Directed Communications between Operators 
of Federal RIK Leases and Deliverers of Equivalent Oil Production to 
the Strategic Petroleum Reserve (SPR).
    On February 11, 1999, DOI announced that it would assist in an 
initiative to refill the SPR. This initiative involved collecting RIK 
oil production from Federal lessees in the Gulf of Mexico and 
transferring it to the Department of Energy (DOE). DOE issued contracts 
to companies to take Federal RIK crude oil delivered by MMS's operators 
and, in exchange, to deliver to DOE's SPR an equivalent volume and 
quality of crude oil. DOE was projected to use 28 million barrels of 
RIK oil to refill the SPR.
    On November 6, 2001, President Bush announced an initiative to 
refill the SPR. MMS, in coordination with DOE, entered into a joint, 3-
year initiative to fill the remaining capacity of the SPR. Operators of 
Federal leases in the Gulf of Mexico will deliver MMS's royalty oil to 
MMS's exchange partner at or near the lease. MMS's exchange partner 
will then deliver similar quantities of crude oil to MMS or its 
designated agent at Gulf Coast market centers. MMS's designated agent 
will be either DOE or its exchange contractor. DOE will then contract 
for the exchange or direct movement of exchange oil to the SPR.
    MMS, as responsible steward of oil royalties, must direct operators 
of affected MMS leases to carry out three types of communication with 
MMS. The types of information operators must provide are as stated 
previously.
    These types of information are necessary so that DOE's exchange 
contractors can arrange to timely accept accurate amounts and qualities 
of royalty oil that will be delivered by MMS's exchange partner and for 
MMS to verify timely fulfillment of operators' and lessees' royalty 
obligations to the Federal Government.
    MMS received OMB approval for the three types of communications 
between MMS operators and MMS rather than approval of a single ``Dear 
Operator'' letter directing these communications. By obtaining approval 
for these kinds of reporting requirements, MMS is able to draft 
situation-specific ``Dear Operator'' letters--that is, letters 
addressing only the types of directed communications and other issues 
relevant to the specific situation.
    MMS is requesting OMB's approval to continue to collect this 
information. Not collecting this information would limit the 
Secretary's ability to discharge her duties. 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.
    Frequency: Intra-Monthly (variable).
    Estimated Number and Description of Respondents: 145 lessees or 
operators of Federal oil and gas leases participating in RIK.
    Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 4,050 
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.

                   Respondent Annual Burden Hour Chart
------------------------------------------------------------------------
                                                   Annual       Annual
      Reporting requirement        Burden hour   number of      burden
                                  per response   responses      hours
------------------------------------------------------------------------
Wyoming Oil (OMB Control Number             1           100          100
 1010-0126).....................
Natural Gas (Texas 8G and GOM)              1         3,600        3,600
 (OMB Control Number 1010-0126).
GOM Oil (OMB Control Number 1010-           1            50           50
 0126)..........................
SPR Fill Initiative (OMB Control            1           300          300
 Number 1010-0130)..............
                                 ---------------
Totals..........................  ............        4,050        4,050
------------------------------------------------------------------------

    Estimated Annual Reporting and Recordkeeping ``Non-Hour Cost'' 
Burden: We have identified no cost burdens for this collection.
    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 
notice in the Federal Register on December 21, 2002 (67 FR 79142), 
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 this notice.
    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.

[[Page 19006]]

Therefore, to ensure maximum consideration, OMB should receive public 
comments by May 19, 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: March 31, 2003.
Lucy Querques Denett,
Associate Director for Minerals Revenue Management.
[FR Doc. 03-9417 Filed 4-16-03; 8:45 am]
BILLING CODE 4310-MR-P