[Federal Register Volume 69, Number 55 (Monday, March 22, 2004)]
[Notices]
[Pages 13330-13333]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-6261]


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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 1010-0042).

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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

[[Page 13331]]

requirements in the regulations under 30 CFR Part 208--Sale of Federal 
Royalty Oil; Royalty-in-Kind (RIK) Program. This notice also provides 
the public a second opportunity to comment on the paperwork burden of 
these regulatory requirements. This information collection request is 
specific as related only to the Government's program to sell crude oil 
to eligible small refiners. The 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 April 21, 2004.

ADDRESSES: Submit written comments by either FAX (202) 395-6566 or 
email ([email protected]) directly to the Office of Information 
and Regulatory Affairs, OMB, Attention: Desk Officer for the Department 
of the Interior (OMB Control Number 1010-0042). Mail or hand-carry a 
copy of your comments to Sharron L. Gebhardt, Lead Regulatory 
Specialist, Minerals Management Service, Minerals Revenue Management, 
P.O. Box 25165, MS 302B2, 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 form 
and regulations that require the subject collection of information.

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 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. 1923) and 
The Outer Continental Shelf 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.
    ``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'' (also known as ``Invitation for Offer'') in the 
Federal Register, or other printed media, or on the MMS web site, when 
appropriate. The Notice includes administrative details concerning the 
application, allocation, and the contract award process for royalty 
oil. Refiners interested in purchasing oil will submit the Form MMS-
4070 in accordance with instructions issued by MMS for completion of 
the form. 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.
    We are also revising this ICR to include reporting requirements 
contained in 30 CFR Part 208 that were inadvertently overlooked when 
the final rule was published. See the chart below for these 
requirements and associated burden hours. These reporting requirements 
are rare and unusual circumstances where the standard procedures set 
out in the rule are not appropriate.
    MMS is requesting OMB's approval to continue to collect this 
information. Not collecting this information would limit the 
Secretary's ability to discharge his/her duties and may also result in 
loss of royalty payments. Proprietary information submitted is 
protected, and there are no questions of a sensitive nature included in 
this information collection.
    We have also changed the title of this ICR 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)'' to clarify the regulatory language 
we are covering under 30 CFR Part 208.
    Frequency: On occasion.
    Estimated Number and Description of Respondents: 8 small oil 
refiners.
    Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 21 
hours (rounded).
    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
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                                                                   Burden hours    Annual number   Annual burden
        30 CFR section                Reporting requirement        per response    of responses        hours
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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).........

[[Page 13332]]

 
208.4(d)......................  Royalty oil sales to eligible       Burden covered by OMB Control Number 1010-
                                 refiners..                                  0119. See Sec.   208.4(a)
                                (d) Interim sales. * * * The
                                 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) and (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   1 (rounded up
                                (a) The MMS will examine each                                         from 0.25)
                                 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 1010-0140
                                (b) * * * If the delivery point       This provision is no different than the
                                 is on or immediately adjacent     transportation allowances allowed in Part 206
                                 to the lease, the royalty oil    for royalties paid in value. The lessee enters
                                 will be delivered without cost         allowance amount on Form MMS-2014.
                                 to the Federal Government as an
                                 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 delivery point is
                                 not on or immediately adjacent
                                 to the lease, MMS will
                                 reimburse the lessee for 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)...........
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)...........

[[Page 13333]]

 
208.11 (a), (b), (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 * * *.
                                (b) * * * The purchaser or its
                                 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 * * *.
                                (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
                                 interest.
                                (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  21 (rounded up
                                                                                                     from 20.25)
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    Estimated Annual Reporting and Recordkeeping ``Non-hour'' Cost 
Burden: We have identified no ``non-hour'' cost burdens.
    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 October 30, 2003 (68 FR 61823), 
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 the 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 April 21, 2004.
    Public Comment Policy: We will post all comments in response to 
this notice on our web site at http://www.mrm.mm.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 addresses 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 Federal Register Liaison Officer: Denise Johnson (202) 208-
3976.

    Dated: March 1, 2004.
Lucy Querques Denett,
Associate Director for Minerals Revenue Management.
[FR Doc. 04-6261 Filed 3-19-04; 8:45 am]
BILLING CODE 4310-MR-P