[Federal Register Volume 69, Number 159 (Wednesday, August 18, 2004)]
[Notices]
[Pages 51321-51323]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-18963]


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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 1010-0095).

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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. We changed the title of this information collection request 
(ICR) to clarify the regulatory language we are covering under 30 CFR 
Part 206. The previous title of this ICR was ``Request to Exceed 
Regulatory Allowance Limitation.'' The new title of this ICR is ``30 
CFR Part 206--Product Valuation (Request to Exceed Transportation and 
Processing Allowance Limitation), Subpart B--Indian Oil, Sec.  
206.54(b)(2); Subpart C--Federal Oil, Sec.  206.109(c)(2); Subpart D--
Federal Gas, Sec.  Sec.  206.156(c)(3), 206.158(c)(3), and 
206.158(d)(2)(i); and Subpart E--Indian Gas, Sec.  Sec.  206.177(c)(2) 
and 206.177(c)(3).''

DATES: Submit written comments on or before October 18, 2004.

ADDRESSES: Submit written 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 
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 206--Product Valuation (Request to Exceed 
Transportation and Processing Allowance Limitation), Subpart B--Indian 
Oil, Sec.  206.54(b)(2); Subpart C--Federal Oil, Sec.  206.109(c)(2); 
Subpart D--Federal Gas, Sec.  Sec.  206.156(c)(3), 206.158(c)(3), and 
206.158(d)(2)(i); and Subpart E--Indian Gas, Sec.  Sec.  206.177(c)(2) 
and 206.177(c)(3).
    OMB Control Number: 1010-0095.
    Bureau Form Number: Form MMS-4393.
    Abstract: The Secretary of the U.S. Department of the Interior 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. 
The MMS performs the royalty management functions and assists the 
Secretary in carrying out the Department's Indian trust responsibility. 
Applicable citations of the laws pertaining to mineral leases include 5 
U.S.C. 301, et seq.; 25 U.S.C. 396a, et seq., 2101, et seq.; 30 U.S.C. 
185, 351, et seq., 1001, et seq., 1701, et seq.; 31 U.S.C. 9701; and 43 
U.S.C. 1301, et seq., 1331, et seq., and 1801, et seq.
    When a company or an individual enters into a lease to explore, 
develop, produce, and dispose of minerals from Federal or Indian lands, 
that company or individual agrees to pay the lessor a share (royalty) 
of the value received from production from the leased lands. The lease 
creates a business relationship between the lessor and the lessee. The 
lessee is required to report various kinds of information to the lessor 
relative to the disposition of the leased minerals. Such information is 
similar to data reported to private and public mineral interest owners 
and is generally available within the records of the lessee or others 
involved in developing, transporting, processing, purchasing, or 
selling of such minerals. The information collected includes data 
necessary to ensure that the royalties are paid appropriately.
    Proprietary information submitted to MMS under this collection is 
protected, and no items of a sensitive nature are collected. A response 
is required to obtain the benefit of exceeding a regulatory allowance 
limitation.
    Under certain circumstances, lessees are authorized to deduct from 
royalty payments the reasonable actual costs of transporting the 
royalty portion of produced oil and gas from the lease to a processing 
or sales point not in the immediate lease area. When gas is processed 
for the recovery of gas plant products, lessees may claim a processing 
allowance. Transportation and processing allowances are a part of the 
product valuation process that MMS uses to determine if the lessee is 
reporting and paying the proper royalty amount.
    To request permission to exceed an allowance limit, royalty payors 
must write a letter to MMS explaining why a higher allowance limit is 
necessary and provide supporting documentation. The MMS developed Form 
MMS-4393, Request to Exceed Regulatory Allowance Limitation, to 
accompany the payor's letter requesting approval to exceed the 
allowance limit. The form provides MMS the data necessary to make a 
decision on the request and track deductions on royalty reports. Data 
reported on Form MMS-4393 is also subject to subsequent audit and 
adjustment.
    Frequency of Response: Annually.
    Estimated Number and Description of Respondents: 26 lessees.
    Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 121 
hours.
    Since the previous renewal of this ICR, we have obtained more 
accurate estimates of the number of respondents and the time required 
to provide the information requested, and we have adjusted the burden 
hours accordingly. The following chart shows the estimated burden hours 
by CFR section and paragraph:

[[Page 51322]]



                                   Respondents' Estimated Annual Burden Hours
----------------------------------------------------------------------------------------------------------------
                                                                                      Average
                                   Reporting and recordkeeping                       number of     Annual burden
        30 CFR section                     requirement              Hour burden       annual           hours
                                                                                     responses
----------------------------------------------------------------------------------------------------------------
                                Subpart B--Indian Oil (Transportation Allowances)
----------------------------------------------------------------------------------------------------------------
206.54(b)(2)..................  * * * An application for                    4.25               1            4.25
                                 exception (using Form MMS-4393,
                                 Request to Exceed Regulatory
                                 Allowance Limitation) shall
                                 contain all relevant and
                                 supporting documentation
                                 necessary for MMS to make a
                                 determination. * * *
-------------------------------
                               Subpart C--Federal Oil (Transportation Allowances)
----------------------------------------------------------------------------------------------------------------
206.109(c)(2).................  Limits on transportation                    4.25               1            4.25
                                 allowances. * * * You may ask
                                 MMS to approve a transportation
                                 allowance in excess of the
                                 limitation in paragraph (c)(1)
                                 of this section. * * * Your
                                 application for exception
                                 (using Form MMS-4393, Request
                                 to Exceed Regulatory Allowance
                                 Limitation) must contain all
                                 relevant and supporting
                                 documentation for MMS to make a
                                 determination. * * *
-------------------------------
                               Subpart D--Federal Gas (Transportation Allowances)
----------------------------------------------------------------------------------------------------------------
206.156(c)(3).................  * * * An application for                    4.25               2            8.5
                                 exception (using Form MMS-4393,
                                 Request to Exceed Regulatory
                                 Allowance Limitation) shall
                                 contain all relevant and
                                 supporting documentation
                                 necessary for MMS to make a
                                 determination. * * *
-------------------------------
                                 Subpart D--Federal Gas (Processing Allowances)
----------------------------------------------------------------------------------------------------------------
206.158(c)(3).................  Upon request of a lessee, MMS               4.25              19           80.75
                                 may approve a processing
                                 allowance in excess of the
                                 limitation prescribed by
                                 paragraph (c)(2) of this
                                 section. * * * An application
                                 for exception (using Form MMS-
                                 4393, Request to Exceed
                                 Regulatory Allowance
                                 Limitation) shall contain all
                                 relevant and supporting
                                 documentation for MMS to make a
                                 determination. * * *
206.158(d)(2)(i)..............  If the lessee incurs                        9.5                2           19
                                 extraordinary costs for
                                 processing gas production from
                                 a gas production operation, it
                                 may apply to MMS for an
                                 allowance for those costs which
                                 shall be in addition to any
                                 other processing allowance. * *
                                 *
-------------------------------
                                Subpart E--Indian Gas (Transportation Allowances)
----------------------------------------------------------------------------------------------------------------
206.177(c)(2).................  If you ask MMS, MMS may approve             4.25               1            4.25
                                 a transportation allowance
                                 deduction in excess of the
                                 limitation in paragraph (c)(1)
                                 of this section. * * *
206.177(c)(3).................  Your application for exception                   See 206.177(c)(2)
                                 (using Form MMS-4393, Request
                                 to Exceed Regulatory Allowance
                                 Limitation) must contain all
                                 relevant and supporting
                                 documentation necessary for MMS
                                 to make a determination.
                                                                 -----------------
    Total burden..............  ................................  ..............              26          121
----------------------------------------------------------------------------------------------------------------

    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: 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.
    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 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

[[Page 51323]]

software you purchase to prepare for collecting information; 
monitoring, sampling, and 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. The ICR also will 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 also will 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. Upon request, we will withhold an individual respondent's 
home address from the public record, as 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 your request 
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: Arlene Bajusz (202) 
208-7744.

    Dated: August 12, 2004.
Lucy Querques Denett,
Associate Director for Minerals Revenue Management.
[FR Doc. 04-18963 Filed 8-17-04; 8:45 am]
BILLING CODE 4310-MR-P