[Federal Register Volume 69, Number 173 (Wednesday, September 8, 2004)]
[Notices]
[Pages 54308-54309]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-20345]


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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 1010-0090).

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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 216, Subpart B--Oil and 
Gas, General. This notice also provides the public a second opportunity 
to comment on the paperwork burden of these regulatory requirements. 
The ICR is titled ``30 CFR 216, Subpart B--Oil and Gas, General, Sec.  
216.57 Stripper Royalty Rate Reduction Notification (Form MMS-4377, 
Stripper Royalty Rate Reduction Notification).'' We changed the title 
of this ICR from ``Stripper Royalty Rate Reduction Notification (Form 
MMS-4377)'' to clarify the regulatory language we are covering under 30 
CFR 216.57.

DATES: Submit written comments on or before October 8, 2004.

ADDRESSES: Submit written comments by either 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 (OMB Control Number 1010-0090.) 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 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, e-mail [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 216, Subpart B--Oil and Gas, 
General, Sec.  216.57 Stripper Royalty Rate Reduction Notification 
(Form MMS-4377, Stripper Royalty Rate Reduction Notification).
    OMB Control Number: 1010-0090.
    Bureau Form Number: Form MMS-4377.
    Abstract: The Secretary of the U.S. Department of the Interior is 
responsible for matters relevant to mineral resource development on 
Federal and Indian lands and the Outer Continental Shelf (OCS). The 
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. 
The MMS performs the royalty management functions for the Secretary.
    The Bureau of Land Management, the surface management agency for 
Federal onshore leases, grants royalty rate reductions to operators of 
stripper oil properties producing an average of less than 15 barrels of 
oil per eligible well per well-day. See 43 CFR 3103.4-2. The purpose of 
these royalty rate reductions is to encourage continued production, 
provide an incentive for enhanced oil recovery projects, discourage 
abandonment of properties producing an average of less than 15 barrels 
of oil per eligible well per well-day, and reduce the operator's 
expenses. The royalty rate for a stripper oil property is lower than 
the royalty rate reflected in the lease and thus reduces the amount of 
revenues paid to the Federal Government. In order to perform the 
royalty management functions for the Secretary, MMS must receive timely 
notification of any royalty rate change. Reporters use the Form MMS-
4377 to notify MMS of royalty rate changes. Operators may submit an 
initial Form MMS-4377 when a new property qualifies as a stripper oil 
property. Reporters must submit Form MMS-4377 to notify MMS of a 
royalty rate reduction that is lower than the initial royalty rate 
reduction on an existing stripper oil property (out-year notification). 
The decision to request an initial royalty rate reduction is voluntary; 
however, failure to timely submit the out-year notification will result 
in the royalty rate change being denied.
    The MMS is requesting OMB's approval to continue to collect this 
information. Not collecting this information would limit the 
Secretary's ability to discharge fiduciary 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.
    Frequency: Annually.
    Estimated Number and Description of Respondents: 900 operators of 
stripper oil properties producing an average of less than 15 barrels of 
oil per eligible well per well-day.
    Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 1,080 
hours.
    Since this ICR was renewed 3 years ago, we obtained more accurate

[[Page 54309]]

estimates from companies of the time required to provide the 
information requested, and we adjusted the burden hours accordingly. We 
do not include in our estimates certain requirements performed in the 
normal course of business as we consider them usual and customary. The 
following chart shows the breakdown of the estimated burden hours by 
CFR section and paragraph.

                                   Respondents' Estimated Annual Burden Hours
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                                                                   Burden hours    Annual number   Annual burden
          CFR section                 Reporting requirement        per response    of responses        hours
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30 CFR 216.57.................  Stripper royalty rate reduction              1.2             900           1,080
                                 notification. In accordance
                                 with its regulations at 43 CFR
                                 3103.4-1, titled ``Waiver,
                                 suspension, or reduction of
                                 rental, royalty, or minimum
                                 royalty,'' the Bureau of Land
                                 Management (BLM) may grant
                                 reduced royalty rates to
                                 operators of low producing oil
                                 leases to encourage continued
                                 production. Operators who have
                                 been granted a reduced royalty
                                 rate(s) by BLM must submit a
                                 Stripper Royalty Rate Reduction
                                 Notification (Form MMS-4377) to
                                 MMS for each 12-month
                                 qualifying period that a
                                 reduced royalty rate(s) is
                                 granted.
                                58 FR 64903, Dec. 10, 1993].....
                                Please note the BLM citation and
                                 title changed to 43 CFR 3103.4-
                                 2 Stripper well royalty
                                 reductions.
                                                                 -----------------
    Total.....................  ................................  ..............             900           1,080
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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 February 3, 2004 (69 FR 5182), 
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 October 8, 2004.
    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. 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: June 4, 2004.
Cathy J. Hamilton,
Acting Associate Director for Minerals Revenue Management.
[FR Doc. 04-20345 Filed 9-7-04; 8:45 am]
BILLING CODE 4310-MR-P