[Federal Register Volume 68, Number 175 (Wednesday, September 10, 2003)]
[Notices]
[Pages 53387-53390]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-22973]


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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 extension of an information collection (1010-0071).

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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 203, ``Relief or 
Reduction in Royalty Rates.'' This notice also provides the public a 
second opportunity to comment on the paperwork burden of these 
regulatory requirements.

DATE: Submit written comments by October 10, 2003.

ADDRESSES: You may submit comments either by fax (202) 395-6566 or e-
mail ([email protected]) directly to the Office of Information 
and Regulatory Affairs, OMB, Attention: Desk Officer for the Department 
of the Interior (1010-0071). Mail or hand carry a copy of your comments 
to the Department of the Interior; Minerals Management Service; 
Attention: Rules Processing Team; Mail Stop 4024; 381 Elden Street; 
Herndon, Virginia 20170-4817.

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 part 203, Relief or Reduction in Royalty Rates.
    OMB Control Number: 1010-0071.
    Abstract: The Outer Continental Shelf (OCS) Lands Act, as amended 
by Pub. L. 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

[[Page 53388]]

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 is 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. 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 uses 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 impact on 
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.
    Frequency: On occasion.
    Estimated Number and Description of Respondents: Approximately 130 
Federal OCS oil and gas lessees.
    Estimated Reporting and Recordkeeping ``Hour'' Burden: The 
estimated annual ``hour'' burden for this information collection is a 
total of 8,550 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. We consider these to be usual and customary 
and took that into account in estimating the burden.

----------------------------------------------------------------------------------------------------------------
                                                                                                         Annual
  Reporting or recordkeeping requirement 30 CFR part 203     Average number annual responses    Hour     burden
                                                                                               burden     hours
----------------------------------------------------------------------------------------------------------------
                                                                              Application Fees
-----------------------------------------------------------
                                             OCS Lands Act Reporting
----------------------------------------------------------------------------------------------------------------
Application--leases that generate earnings that cannot      1 Application...................       100       100
 sustain continued production (end-of-life lease).
                                                           -----------------------------------
                                                                      Application 1 x $8,000 = $8,000 *
-----------------------------------------------------------
Application--apart from formal programs for royalty relief  1 Application...................       250       250
 for marginal producing lease (expect less than one per
 year).
                                                           -----------------------------------
                                                                     Application 1 x $15,000 = $15,000 *
-----------------------------------------------------------
Sec.   203.55 Renounce relief arrangement (seldom, if ever  1 Letter........................         1         1
 used; minimal burden to prepare letter).
-----------------------------------------------------------
Sec.  Sec.   203.81, 203.83 through 203.89 required             Burden included with applications.
 reports.
-----------------------------------------------------------
OCS Lands Act Reporting Subtotal..........................  3 responses.....................       N/A       351
                                                           -----------------------------------
                                                                          Processing Fees = $23,000
===========================================================
                                                 DWRAA Reporting
----------------------------------------------------------------------------------------------------------------
Application--leases in designated areas of GOM deep water   1 Application...................     2,000     2,000
 acquired in lease sale before 11/28/95 or after 11/28/00
 and are producing (deep water expansion project).
                                                           -----------------------------------
                                                                      Application 1 x $19,500 = $19,500
-----------------------------------------------------------
Application--leases in designated areas of deep water GOM,  1 Application...................     2,000     2,000
 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 $34,000 = $34,000 *
-----------------------------------------------------------
Application--short form to add or assign pre-Act lease....  1 Application...................        40        40
                                                           -----------------------------------
                                                                       Application 1 x $1,000 = $1,000
-----------------------------------------------------------

[[Page 53389]]

 
Application--preview assessment (seldom if ever used as     1 Application...................       900       900
 applicants generally opt for binding determination by MMS
 instead).
                                                           -----------------------------------
                                                                      Application 1 x $46,600 = $46,600
-----------------------------------------------------------
Application--apart from formal programs for royalty relief  1 Application...................     1,000     1,000
 for marginal expansion project or marginal non-producing
 lease (expect less than one per year).
                                                           -----------------------------------
                                                                      Application 1 x $49,000 = $49,000
-----------------------------------------------------------
Redetermination...........................................  1 Redetermination...............       500       500
                                                           -----------------------------------
                                                                     Application 1 x $16,000 = $16,000 *
-----------------------------------------------------------
Sec.  Sec.   203.70, 203.81, 203.90, 203.91 Submit          2 Reports.......................        20        40
 fabricator's confirmation report.
-----------------------------------------------------------
Sec.  Sec.   203.70, 203.81, 203.90, 203.92 Submit post-    2 Reports *.....................        50       100
 production development report.
-----------------------------------------------------------
Sec.   203.77 Renounce relief arrangement (seldom, if ever  1 Letter........................         1         1
 will be used; minimal burden to prepare letter).
-----------------------------------------------------------
Sec.   203.79(a) Request reconsideration of MMS field       4 Requests......................       400     1,600
 designation.
-----------------------------------------------------------
Sec.   203.79(c) Request extension of deadline to start     1 Request.......................         2         2
 construction.
-----------------------------------------------------------
Sec.  Sec.   203.81, 203.83 through 203.89 Required              Burden included with applications             0
 reports.
-----------------------------------------------------------
DWRRA Reporting Subtotal..................................  16 Reponses.....................       N/A     8,183
                                                           -----------------------------------
                                                                         Processing Fees = $166,100
===========================================================
                                              Recordkeeping Burden
----------------------------------------------------------------------------------------------------------------
Sec.   203.91 Retain supporting cost records for post-      2 Recordkeepers.................         8        16
 production development/fabrication reports (records
 retained as usual/customary business practice; minimal
 burden to make available at MMS request.
===========================================================
    Total Annual Burden...................................  21 Responses....................       N/A     8,550
----------------------------------------------------------------------------------------------------------------
* 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 estimated non-hour cost burden is $414,000 (rounded). 
This estimate is based on:
    (a) Application and audit fees. The total annual estimated cost 
burden for these fees is $189,000 (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 two stages--with the application and post-production 
development report for successful applicants. MMS estimates 
approximately five submissions each year at an average cost of $45,000 
per report, for a total estimated annual cost burden of $225,000.
    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: Section 3506(c)(2)(A) of the PRA (44 U.S.C. 3501, et 
seq.) 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, on April 21, 2003, 
MMS published a Federal Register notice (68 FR 19572) announcing that 
we would submit this ICR to OMB for approval. The notice provided the 
required 60-day comment period. In addition, Sec.  203.82 provides the 
OMB control number for the information collection requirements imposed 
by the 30 CFR 203 regulations. The regulation also informs the public 
that they may comment at any time on the collections of information and 
provides the address to which they should send comments. We have 
received no comments in response to these efforts.
    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

[[Page 53390]]

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 October 10, 2003.
    Public Comment Policy: MMS 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 
their home address be withheld from the record, which will be honored 
to the extent allowable by the law. If you wish your name and/or 
address to be withheld, you must state this prominently at the 
beginning of your comment. However, anonymous comments will not be 
considered. MMS 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 9, 2003.
John V. Mirabella,
Acting Chief, Engineering and Operations Division.
[FR Doc. 03-22973 Filed 9-9-03; 8:45 am]
BILLING CODE 4310-MR-P