[Federal Register Volume 68, Number 149 (Monday, August 4, 2003)]
[Notices]
[Pages 45851-45854]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-19651]


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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 1010-0088).

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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 227--Delegation to 
States. This notice also provides the public a second opportunity to 
comment on the

[[Page 45852]]

paperwork burden of these regulatory requirements. The ICR is titled 
``30 CFR Part 227--Delegation to States.''

DATES: Submit written comments on or before September 3, 2003.

ADDRESSES: You may submit comments either by fax (202) 395-5806 or e-
mail ([email protected]) directly to the Office of Information 
and Regulatory Affairs, OMB, Attention: Desk Officer for the Department 
of the Interior (OMB Control Number 1010-0088). You may also mail or 
hand-carry 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. MMS is unable to accept 
electronic comments at this time. Therefore, fax your comments to Ms. 
Gebhardt at (303) 231-3781, include the title of the information 
collection and the OMB Control Number in your fax (i.e. Subject, Reply 
or Comments section), along with your name, return address and fax 
number. If you do not receive confirmation that we have received your 
fax, contact Ms. Gebhardt at (303) 231-3211.

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

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 also may 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 
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 voluntary. 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 estimate 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 45853]]



                                    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 management functions to
 (c), (d), and (e); 227.111(a)   you, then you must submit a
 and (b); 227.805.               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 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 to
                                 perform royalty management
                                 functions in addition to those
                                 authorized under your existing
                                 agreement you must request a
                                 new delegation * * * After your
                                 delegation agreement is
                                 terminated, you may apply again
                                 for delegation by beginning
                                 with the proposal process * * *.
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 reports to MMS about                   3              80             240
 227.801(a); 227.804.            your 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);         Assist MMS in maintaining                     .5             250             125
 227.601(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);            If you request delegation of                  .5             250             125
 227.401(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 * * *.
227.400(c)....................  You must provide MMS with a copy              20               1              20
                                 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 45854]]

 
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. Annualized over 3 years, 
the cost is $20,000.
    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 April 8, 2003, (68 FR 17073) 
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. Therefore, to ensure maximum 
consideration, OMB should receive public comments by September 3, 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: July 21, 2003.
Lucy Querques Denett,
Associate Director for Minerals Revenue Management.
[FR Doc. 03-19651 Filed 8-1-03; 8:45 am]
BILLING CODE 4310-MR-P