[Federal Register Volume 68, Number 210 (Thursday, October 30, 2003)]
[Notices]
[Pages 61823-61826]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-27361]


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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 1010-0042).

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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 208--Sale of Federal Royalty Oil; Royalty-in-Kind (RIK) Program 
(Form MMS-4070, Application for the Purchase of Royalty Oil).''

DATES: Submit written comments on or before December 29, 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 80225-0165. If you use an 
overnight courier service, our courier address is Building 85, Room A-
614, Denver Federal Center, Denver, Colorado 80225-0165. You may also 
e-mail 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 e-mail, contact Ms. Gebhardt 
at (303) 231-3211.

FOR FURTHER INFORMATION CONTACT: Sharron L. Gebhardt, telephone: (303) 
231-3211, FAX: (303) 231-3781, or e-mail: [email protected].

SUPPLEMENTARY INFORMATION:
    Title: 30 CFR Part 208--Sale of Federal Royalty Oil; Royalty-in-
Kind (RIK) Program (Form MMS-4070, Application for the Purchase of 
Royalty Oil).
    OMB Control Number: 1010-0042.
    Bureau Form Number: Form MMS-4070.
    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 MMS performs the royalty 
management functions for the Secretary.
    ``Royalty oil'' is crude oil produced from leased Federal lands, 
both onshore and offshore, in instances in which the Government 
exercises the option to accept a lessee's royalty payment in oil rather 
than in money. Title to the oil is transferred to the Government and 
then sold to an eligible refiner. When the Secretary determines that 
small refiners do not have access to adequate supplies of oil, the 
Secretary may dispose of any oil taken as royalty by conducting a sale 
of such oil, or by allocating it to eligible refiners.
    When the Secretary decides to offer royalty oil taken in kind for 
sale to eligible refiners, MMS will publish a ``Notice of Availability 
of Royalty Oil'' (NOA) in the Federal Register, and other printed 
media, when appropriate. The NOA includes administrative details 
concerning the application, the allocation, and the contract award 
process for the royalty oil. The refiners interested in purchasing 
royalty oil will submit the Application for the Purchase of Royalty 
Oil, Form MMS-4070, in accordance with instructions in the Notice, and 
with instructions issued by MMS for completion of the form. The MMS 
uses the information collected on the Form MMS-4070 to determine if the 
applicant meets eligibility requirements to contract to purchase 
royalty oil. Information collected also provides a basis for the 
allocation of available royalty oil among qualified refiners. Responses 
to this information collection are necessary for refiners to 
participate in royalty oil sales.
    No proprietary information will be submitted to MMS under this 
collection. No items of a sensitive nature are collected. The 
requirement to respond is voluntary for those respondents requesting to 
participate in this program.
    We are revising this ICR, OMB Control Number 1010-0042, to include 
additional reporting requirements contained in 30 CFR Part 208 that 
were

[[Page 61824]]

not approved under the original OMB approval for this ICR. We also 
changed the title to more closely reflect the information we are 
collecting. We changed the ICR title from ``Application of the Purchase 
of Royalty Oil'' to ``30 CFR Part 208--Sale of Federal Royalty Oil; 
Royalty-in-Kind (RIK) Program (Form MMS-4070, Application for the 
Purchase of Royalty Oil).''
    Frequency of Response: On occasion.
    Estimated Number and Description of Respondents: 19 small oil 
refiners.
    Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 20.25 
hours.
    The following chart shows the breakdown of the estimated burden 
hours by the respective CFR section and paragraph:

                                       Respondent Annual Burden Hour Chart
----------------------------------------------------------------------------------------------------------------
                                                                   Burden hours   Annual  number   Annual burden
        30 CFR section                Reporting requirement        per response    of  responses       hours
----------------------------------------------------------------------------------------------------------------
208.4(a)......................  Royalty oil sales to eligible       Burden covered by OMB Control Number 1010-
                                 refiners.                                             0119.
                                (a) Determination to take
                                 royalty oil in kind. * * * The
                                 Secretary will review these
                                 items [submitted by small
                                 refiners] and will determine
                                 whether eligible refiners have
                                 access to adequate supplies of
                                 crude oil * * *.
                                (Determination process).........
-------------------------------
208.4(d)......................  Royalty oil sales to eligible       Burden covered by OMB Control Number 1010-
                                 refiners.
                                (d) Interim sales. * * * The                 0119. See Sec.   208.4(a)
                                 potentially eligible refiners,
                                 individually or collectively,
                                 must submit documentation
                                 demonstrating that adequate
                                 supplies of crude oil at
                                 equitable prices are not
                                 available for purchase. * * *.
                                (Determination process)
-------------------------------
208.6(a) & (b)................  General application procedures              1.25               8              10
                                (a) To apply for the purchase of
                                 royalty oil, an applicant must
                                 file a Form MMS-4070 with MMS
                                 in accordance with instructions
                                 provided in the ``Notice of
                                 Availability of Royalty Oil''
                                 and in accordance with any
                                 instructions issued by MMS for
                                 completion of Form MMS-4070 The
                                 applicant will be required to
                                 submit a letter of intent from
                                 a qualified financial
                                 institution stating that it
                                 would be granted surety
                                 coverage for the royalty oil
                                 for which it is applying, or
                                 other such proof of surety
                                 coverage, as deemed acceptable
                                 by MMS. The letter of intent
                                 must be submitted with a
                                 completed Form MMS-4070.
                                (b) In addition to any other
                                 application requirements
                                 specified in the Notice, the
                                 following information is
                                 required on Form MMS-4070 at
                                 the time of application: * * *
                                (Application process)...........
-------------------------------
208.7(a)                        Determination of eligibility....            0.25               1            0.25
                                (a) The MMS will examine each
                                 application and may request
                                 additional information if the
                                 information in the application
                                 is inadequate. * * *.
                                (Application process)...........
-------------------------------
208.8(a)......................  Transportation and delivery.....               1               1               1
                                (a) * * * The purchaser must
                                 have physical access to the oil
                                 at the alternate delivery point
                                 and such point must be approved
                                 by MMS..
                                (Application process)...........
-------------------------------
208.8(b)......................  Transportation and delivery.....    Burden covered by OMB Control Number 1010-
                                (b) * * * If the delivery point                        0140.
                                 is on or immediately adjacent          This provision is no different than
                                 to the lease, the royalty oil     transportation allowances allowed in Part 206
                                 will be delivered without cost     for for royalties paid in value. The lessee
                                 to the Federal Government as an     enters allowance amount on Form MMS-2014.
                                 undivided portion of production
                                 in marketable condition at
                                 pipeline connections or other
                                 facilities provided by the
                                 lessee, unless other
                                 arrangements are approved by
                                 MMS. If the the delivery point
                                 is not on or immediately
                                 adjacent to the lease, MMS will
                                 reimburse the lessee the
                                 reasonable cost of
                                 transportation to such point in
                                 an amount not to exceed the
                                 transportation allowance
                                 determined pursuant to 30 CFR
                                 part 206. * * *.
                                (Application process)...........
----------------------------------------------------------------------------------------------------------------


[[Page 61825]]


                                 Respondent Annual Burden Hour Chart--Continued
----------------------------------------------------------------------------------------------------------------
                                                                   Burden hours   Annual  number   Annual burden
        30 CFR section                Reporting requirement        per response    of  responses       hours
----------------------------------------------------------------------------------------------------------------
208.9(a)......................  Agreements......................               1               8               8
                                (a) A purchaser must submit to
                                 MMS two copies of any written
                                 third-party agreements, or two
                                 copies of a full written
                                 explanation of any oral third-
                                 party agreements, relating to
                                 the method and costs of
                                 delivery of royalty oil, or
                                 crude oil exchanged for the
                                 royalty oil, from the point of
                                 delivery under the contract to
                                 the purchaser's refinery. In
                                 addition, the purchaser must
                                 submit copies of agreements
                                 pertaining to quality
                                 differentials which may occur
                                 between leases and delivery
                                 points..
                                (Application process)...........
-------------------------------
208.10(d).....................  Notices.........................    Burden covered by OMB Control Number 1010-
                                (d) After MMS notification that                        0126.
                                 royalty oil will be taken in
                                 kind, the operator shall be
                                 responsible for notifying each
                                 working interest on the Federal
                                 lease. * * *.
                                (Application process)...........
-------------------------------
208.10(e).....................  Notices.........................               1               1               1
                                (e) A purchaser cannot transfer,
                                 assign, or sell its rights or
                                 interest in a royalty oil
                                 contract without written
                                 approval of the Director, MMS.
                                 * * * Without express written
                                 consent from MMS for a change
                                 in ownership, the royalty oil
                                 contract shall be terminated. *
                                 * *.
                                (Application process)...........
-------------------------------
208.11(a), (d), and (e)         Surety requirements.............    Burden covered by OMB Control Number 1010-
                                (a) The eligible purchaser,                            0135.
                                 prior to execution of the
                                 contract, shall furnish an
                                 ``MMS-specified surety
                                 instrument,'' in an amount
                                 equal to the estimated value of
                                 royalty oil that could be taken
                                 by the purchaser in a 99-day
                                 period, plus related
                                 administrative charges. * * *.
                                (d) The ``MMS-specified surety
                                 instrument'' shall be in a form
                                 specified by MMS instructions
                                 or approved by MMS. * * *.
                                (e) All surety instruments must
                                 be in a form acceptable to MMS
                                 and must include such other
                                 specific requirements as MMS
                                 may require adequately to
                                 protect the Government's
                                 interests.
                                (Sureties Forms MMS-4071 and MMS-
                                 4072).
-------------------------------
208.11(b).....................  Surety requirements.............    Burden covered by OMB Control Number 1010-
                                (b) * * * The purchaser or its                         0135.
                                 surety company may elect not to
                                 renew the letter of credit at
                                 any monthly anniversary date,
                                 but must notify MMS of its
                                 intent not to renew at least 30
                                 days prior to the anniversary
                                 date. * * *.
                                (Sureties Forms MMS-4071 and MMS-
                                 4072).
-------------------------------
208.15........................  Audits..........................  PRODUCE RECORDS
                                Audits of the accounts and books  Office of Regulatory Affairs determined that
                                 of lessees, operators, payors,   the compliance process is exempt from the PRA
                                 and/or purchasers of royalty     because MMS staff ask non-standard questions
                                 oil taken in kind may be made    to resolve exception.
                                 annually or at such other times
                                 as may be directed by MMS. * *
                                 *
-------------------------------
    Total.....................  ................................             4.5              19           20.25
----------------------------------------------------------------------------------------------------------------

    Estimated Annual Reporting and Recordkeeping ``Non-hour Cost'' 
Burden: We have identified no ``no-hour'' cost burdens.
    Comments: 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. Before submitting an ICR to OMB, the 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. We have not identified 
non-hour cost burdens for this information collection. 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

[[Page 61826]]

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 Acting Information Collection Clearance Officer: Arlene Bajusz 
(202) 208-7744.

    Dated: October 24, 2003.
Lucy Querques Denett,
Associate Director for Minerals Revenue Management.
[FR Doc. 03-27361 Filed 10-29-03; 8:45 am]
BILLING CODE 4310-MR-P