[Federal Register Volume 68, Number 76 (Monday, April 21, 2003)]
[Notices]
[Pages 19572-19575]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-9695]


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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 extension of an information collection (1010-0071).

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SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), 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.

[[Page 19573]]

The information collection request (ICR) concerns the paperwork 
requirements in the regulations under 30 CFR 203, ``Relief or Reduction 
in Royalty Rates.''

DATES: Submit written comments by June 20, 2003.

ADDRESSES: Mail or hand carry comments to the Department of the 
Interior; Minerals Management Service; Attention: Rules Processing 
Team; Mail Stop 4024; 381 Elden Street; Herndon, Virginia 20170-4817. 
If you wish to e-mail comments, the address is: [email protected]. 
Reference ``Information Collection 1010-0071'' in your e-mail subject 
line and mark your message for return receipt. Include your name and 
return address in your message.

FOR FURTHER INFORMATION CONTACT: Arlene Bajusz, Rules Processing Team, 
(703) 787-1600. You may also contact Arlene Bajusz to obtain a copy, at 
no cost, of the regulations that require the subject collection of 
information.

SUPPLEMENTARY INFORMATION:
    Title: 30 CFR 203, Relief or Reduction in Royalty Rates.
    OMB Control Number: 1010-0071.
    Abstract: The Outer Continental Shelf (OCS) Lands Act, as amended 
by Public Law 104-58, Deep Water Royalty Relief Act (DWRRA), gives the 
Secretary of the Interior (Secretary) the authority to reduce or 
eliminate royalty or any net profit share specified in OCS oil and gas 
leases to promote increased production. The DWRRA also authorized the 
Secretary to suspend royalties when necessary to promote development or 
recovery of marginal resources on producing or non-producing leases in 
the Gulf of Mexico (GOM) west of 87 degrees, 30 minutes West longitude.
    Section 302 of the DWRRA provides that new production from a lease 
in existence on November 28, 1995, in a water depth of at least 200 
meters, and in the GOM west of 87 degrees, 30 minutes West longitude 
qualifies for royalty suspension in certain situations. To grant a 
royalty suspension, the Secretary must determine that the new 
production or development would not be economic without royalty relief. 
The Secretary must then determine the volume of production on which no 
royalty would be due in order to make the new production from the lease 
economically viable. This determination must be done on a case-by-case 
basis. By regulation published January 15, 2002, (67 FR 1862) 
production from leases in the same water depth and area issued after 
November 28, 2000, also can qualify for royalty suspension in addition 
to any that may be included in their lease terms.
    In addition, Federal policy and statute require us to recover the 
cost of services that confer special benefits to identifiable non-
Federal recipients. The Independent Offices Appropriation Act (31 
U.S.C. 9701), OMB Circular A-25, and the Omnibus Appropriations Bill 
(Pub. L. 104-133, 110 Stat. 1321, April 26, 1996) authorize MMS to 
collect these fees to reimburse us for the cost to process applications 
or assessments.
    Regulations at 30 CFR part 203 implement these statutes and policy 
and require respondents to pay a fee to request royalty relief. Section 
30 CFR 203.3 states that, ``We will specify the necessary fees for each 
of the types of royalty-relief applications and possible MMS audits in 
a Notice to Lessees. We will periodically update the fees to reflect 
changes in costs as well as provide other information necessary to 
administer royalty relief.''
    The MMS use the information to make decisions on the economic 
viability of leases requesting a suspension or elimination of royalty 
or net profit share. These decisions have enormous monetary impacts to 
both the lessee and the Federal government. Royalty relief can lead to 
increased production of natural gas and oil, creating profits for 
lessees and royalty and tax revenues for the government that they might 
not otherwise receive. We could not make an informed decision without 
the collection of information required by 30 CFR part 203.
    We will protect information from respondents considered proprietary 
under the Freedom of Information Act (5 U.S.C. 552) and its 
implementing regulations (43 CFR 2) and 30 CFR 203.63(b) and 30 CFR 
250.196. No items of a sensitive nature are collected. Responses are 
mandatory or required to obtain or retain a benefit.
    Frequency: On occasion.
    Estimated Number and Description of Respondents: Approximately 130 
Federal OCS oil and gas lessees.
    Estimated Reporting and Recordkeeping ``Hour'' Burden: The 
currently approved annual reporting burden for this collection is 8,650 
hours. The following chart details the individual components and 
respective hour burden estimates of this ICR. In calculating the 
burdens, we assumed that respondents perform certain requirements in 
the normal course of their activities. We consider these to be usual 
and customary and took that into account in estimating the burden.

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                                                                Application/Audit Fees
     Reporting or recordkeeping      ---------------------------------------------------------------------------
    requirement  30 CFR part 203                                                                  Annual burden
                                            Average No. annual responses          Hour burden         hours
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                                             OCS Lands Act Reporting
----------------------------------------------------------------------------------------------------------------
Application--leases that generate     2 Applications..........................             100              200
 earnings that cannot sustain
 continued production (end-of-life
 lease).
                                     -------------------------------------------
                                                          Application 2 x $12,000 = $24,000 *
                                                              Audit 1 x $10,000 = $10,000
                                     -------------------------------------------
Application--apart from formal        1 Application...........................             250              250
 programs for royalty relief for
 marginal producing lease (expect <
 1 per year).
                                     -------------------------------------------
                                                          Application 1 x $15,000 = $15,000 *
                                                              Audit 1 x $10,000 = $10,000
                                     -------------------------------------------
Sec.   203.55 Renounce relief         1 Letter................................               1                1
 arrangement (seldom, if ever will
 be used; minimal burden to prepare
 letter).
Sec.   203.81, 203.83 through 203.89              Burden included with applications                           0
 Required reports.
                                     -------------------------------------------
OCS Lands Act Reporting Subtotal....  4 responses.............................             N/A              451
                                     -------------------------------------------

[[Page 19574]]

 
                                                               Processing Fees = $59,000
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                                                 DWRAA Reporting
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Application--leases in designated     1 Application...........................           2,000            2,000
 areas of GOM deep water acquired in
 lease sale before 11/28/95 or after
 11/28/00 and are producing (deep
 water expansion project).
                                     -------------------------------------------
                                                           Application 1 x $39,000 = $39,000
                                                                       No Audit
                                     -------------------------------------------
Application--leases in designated     1 Application...........................           2,000            2,000
 areas of deep water GOM, acquired
 in lease sale before 11/28/95 or
 after 11/28/00, that have not
 produced (pre-Act or post-2000 deep
 water leases).
                                     -------------------------------------------
                                                          Application 1 x $49,000 = $49,000 *
                                                              Audit 1 x $25,000 = $25,000
                                     -------------------------------------------
Application--short form to add or     1 Application...........................              40               40
 assign pre-Act lease.
                                     -------------------------------------------
                                                            Application 1 x $1,000 = $1,000
                                                                       No Audit
                                     -------------------------------------------
Application--preview assessment       1 Application...........................             900              900
 (seldom if ever will be used as
 applicants generally opt for
 binding determination by MMS
 instead).
                                     -------------------------------------------
                                                           Application 1 x $46,600 = $46,600
                                                                       No Audit
                                     -------------------------------------------
Application--apart from formal        1 Application...........................           1,000            1,000
 programs for royalty relief for
 marginal expansion project or
 marginal non-producing lease
 (expect < 1 per year).
                                     -------------------------------------------
                                                           Application 1 x $49,000 = $49,000
                                                              Audit 1 x $20,000 = $20,000
                                     -------------------------------------------
Redetermination.....................  1 Redetermination.......................             500              500
                                     -------------------------------------------
                                                          Application 1 x $32,000 = $32,000 *
                                                              Audit 1 x $25,000 = $25,000
                                     -------------------------------------------
Sec.   203.70, 203.81, 203.90,        2 Reports...............................              20               40
 203.91 Submit fabricator's
 confirmation report.
Sec.   203.70, 203.81, 203.90,        2 Reports *.............................              50              100
 203.92 Submit post-production
 development report.
Sec.   203.77 Renounce relief         1 Letter................................               1                1
 arrangement (seldom, if ever will
 be used; minimal burden to prepare
 letter).
Sec.   203.79(a) Request              4 Requests..............................             400            1,600
 reconsideration of MMS field
 designation.
Sec.   203.79(c) Request extension    1 Request...............................               2                2
 of deadline to start construction.
                                     -------------------------------------------
Sec.   203.81, 203.83 through 203.89              Burden included with applications                           0
 Required reports.
                                     -------------------------------------------
DWRRA Reporting Subtotal............  16 Reponses.............................             N/A            8,183
                                     -------------------------------------------
                                                              Processing Fees = $286,600
-------------------------------------
                                              Recordkeeping Burden
----------------------------------------------------------------------------------------------------------------
Sec.   203.91 Retain cost records     2 Recordkeepers.........................               8               16
 for post-production development/
 fabrication reports (records
 retained as usual/customary
 business practice; minimal burden
 to make available at MMS request).
Total Annual Burden.................  22 Responses............................             N/A           8,650
----------------------------------------------------------------------------------------------------------------
* CPA certification expense burden also imposed on applicant.

    Estimated Reporting and Recordkeeping ``Non-Hour Cost'' Burden: 
There are two non-hour costs associated with this information 
collection. The currently approved non-hour cost burden is $661,000. 
This estimate is based on:
    (a) Application and audit fees. The total annual estimated cost 
burden for these fees is $345,600 (refer to burden chart).
    (b) Cost of reports prepared by independent certified public 
accountants. Under Sec.  203.81, a report prepared by an independent 
certified public accountant (CPA) must accompany the application and 
post-production report (expansion project, short form, and preview 
assessment applications are excluded). The OCS Lands Act applications 
will require this report only once; the DWRRA applications will require 
this report at

[[Page 19575]]

two stages--with the application and post-production development report 
for successful applicants. We estimate approximately seven submissions 
each year at an average cost of $45,000 per report, for a total 
estimated annual cost burden of $315,000.
    Public Disclosure Statement: The PRA (44 U.S.C. 3501, et seq.) 
provides that an agency may not conduct or sponsor a collection of 
information unless it displays a currently valid OMB control number. 
Until OMB approves a collection of information, you are not obligated 
to respond.
    Comments: 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.
    Agencies must also estimate the ``non-hour cost'' burdens to 
respondents or recordkeepers resulting from the collection of 
information. Therefore, 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, and record storage 
facilities. You should not include estimates for 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 submission for OMB approval. As a result of your comments, we 
will make any necessary adjustments to the burden in our submission to 
OMB.
    Public Comment Policy: Our practice is to make comments, including 
names and home addresses of respondents, available for public review 
during regular business hours. Individual respondents may request that 
we withhold their home address from the record, which we will honor to 
the extent allowable by law. There may be circumstances in which we 
would withhold from the record a respondent's identity, as allowable by 
the 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: April 9, 2003.
E.P. Danenberger,
Chief, Engineering and Operations Division.
[FR Doc. 03-9695 Filed 4-18-03; 8:45 am]
BILLING CODE 4310-MR-P