[Federal Register Volume 69, Number 205 (Monday, October 25, 2004)]
[Notices]
[Pages 62289-62292]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-23786]


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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 a revision of a currently approved information 
collection (OMB Control Number 1010-0075).

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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 206, Subpart E--
Indian Gas. This notice also provides the public a second opportunity 
to comment on the paperwork burden of these regulatory requirements. We 
changed the title of this ICR to clarify the regulatory language we are 
covering under 30 CFR Part 206. The previous title was ``Gas Processing 
and Transportation Allowances.'' The new title is ``30 CFR Part 206, 
Subpart E--Indian Gas, Sec.  206.178--How do I determine a 
transportation allowance? (Form MMS-4295, Gas Transportation Allowance 
Report), and Sec.  206.180--How do I determine an actual processing 
allowance? (Form MMS-4109, Gas Processing Allowance Summary Report).''

DATES: Submit written comments on or before November 24, 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 1010-0075). 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 Part 206, Subpart E--Indian 
Gas, Sec.  206.178--How do I determine a transportation allowance? 
(Form MMS-4295, Gas Transportation Allowance Report), and Sec.  
206.180--How do I determine an actual processing allowance? (Form MMS-
4109, Gas Processing Allowance Summary Report).
    OMB Control Number: 1010-0075.
    Bureau Form Number: Forms MMS-4295 and MMS-4109.
    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 Secretary 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 on Indian 
lands include 25 U.S.C. 396d (Chapter 12--Lease, Sale, or Surrender of 
Allotted or Unallotted Lands); 25 U.S.C. 2103 (Indian Mineral 
Development Act of 1982); and Public Law 97-451--Jan. 12, 1983 (Federal 
Oil and Gas Royalty Management Act of 1982).
    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. The MMS 
requires a response to obtain the benefit of transportation or 
processing allowance on an Indian lease.
    Transportation Allowances--Under certain circumstances, lessees are 
authorized to deduct from royalty payments the reasonable actual costs 
of transporting the royalty portion of produced minerals from the lease 
to a processing or sales point not in the

[[Page 62290]]

immediate lease area. Transportation allowances are part of the product 
valuation process MMS uses to determine if the lessee is reporting and 
paying the proper royalty amount.
    Processing Allowances--When gas is processed for the recovery of 
gas plant products, lessees may claim a processing allowance. The MMS 
normally accepts the cost as stated in the lessee's arm's-length 
processing contract as being representative of the cost of the 
processing allowance. In those instances where gas is being processed 
through a lessee-owned plant, the lessee must base processing costs on 
the actual plant operating and maintenance expenses, depreciation, and 
a reasonable return on investment. The allowance is expressed as a cost 
per unit of individual gas plant products. Lessees may take processing 
allowances as a deduction from royalty payments.
    The MMS collects transportation allowance data on Form MMS-4295, 
Gas Transportation Allowance Report. The MMS collects processing 
allowance data on Form MMS-4109, Gas Processing Allowance Summary 
Report. The MMS and tribal personnel use the information collected on 
Forms MMS-4295 and MMS-4109 to evaluate the reasonableness of 
allowances reported and claimed by lessees. To take a transportation 
deduction, a lessee must submit Form MMS-4295 before or in the same 
month the lessee reports the transportation allowance on Form MMS-2014, 
Report of Sales and Royalty Remittance (OMB Control Number 1010-0140, 
expiration date October 31, 2006). To take a processing deduction, a 
lessee must submit Form MMS-4109 before or in the same month the lessee 
reports the processing allowance on Form MMS-2014.
    The MMS is requesting OMB's approval to continue to collect this 
information. Not collecting this information may result in the 
undervaluation of leased minerals.
    Frequency: Annually and on occasion.
    Estimated Number and Description of Respondents: 50 Indian lessees.
    Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 285 
hours.
    We base our calculations of the estimated burden hours on the 
reasonable expectation of 92 responses from 50 Indian lessees. We are 
including reporting requirements for arm's-length contracts, which were 
overlooked in the previous renewal. Each company may file numerous 
responses for transportation and/or processing allowances due to arm's-
length and/or non-arm's-length contracts. Through customer contact, we 
have obtained more accurate estimates of the time required to provide 
the information requested. We have not included in our estimates 
certain requirements performed in the normal course of business and 
considered usual and customary. The following chart shows the estimated 
burden hours by CFR section and paragraph:

                                   Respondents' Estimated Annual Burden Hours
----------------------------------------------------------------------------------------------------------------
                                                                                  Average number
  Citation  30 CFR 206  Subpart E    Reporting and recordkeeping   Hour  burden      of annual     Annual burden
                                             requirement                             responses         hours
----------------------------------------------------------------------------------------------------------------
                                      Indian Gas Transportation Allowances
----------------------------------------------------------------------------------------------------------------
206.178(a)(1)(i)...................  How do I determine a                      1              50              50
                                      transportation allowance?.
                                     (a) Determining a
                                      transportation allowance
                                      under an arm's-length
                                      contract. (1) * * * (i) *
                                      * * You are required to
                                      submit to MMS a copy of
                                      your arm's-length
                                      transportation contract(s)
                                      and all subsequent
                                      amendments to the
                                      contract(s) within 2
                                      months of the date MMS
                                      receives your report which
                                      claims the allowance on
                                      Form MMS-2014.
------------------------------------
206.178(a)(1)(iii).................  How do I determine a         PRODUCE RECORDS                              0
                                      transportation allowance?.  The Office of Regulatory
                                     (a) Determining a            Affairs (ORA) determined that
                                      transportation allowance    the audit process is not
                                      under an arm's-length       covered by the PRA because MMS
                                      contract. (1) * * * (iii)   staff asks non-standard
                                      If MMS determines that the  questions to resolve
                                      consideration paid under    exceptions.
                                      an arm's-length
                                      transportation contract
                                      does not reflect the value
                                      of the transportation
                                      because of misconduct by
                                      or between the contracting
                                      parties, or * * *. In
                                      these circumstances, MMS
                                      will notify you and give
                                      you an opportunity to
                                      provide written
                                      information justifying
                                      your transportation costs.
------------------------------------
206.178(b)(1)(ii)..................  How do I determine a                     15               7             105
                                      transportation allowance?
                                      * * *.
                                     (b) Determining a
                                      transportation allowance
                                      under an arm's-length
                                      contract or no contract.
                                      (1) * * *.
                                     (ii) * * *. You must submit
                                      the actual cost
                                      information to support the
                                      allowance to MMS on Form
                                      MMS-4295, Gas
                                      Transportation Allowance
                                      Report, within 3 months
                                      after the end of the 12-
                                      month period to which the
                                      allowance applies. * * *.
------------------------------------
206.178(d)(1)......................  How do I determine a          PRODUCE RECORDS                             0
                                      transportation allowance?.  The ORA determined that the
                                     (d) Reporting your           audit process is not covered
                                      transportation allowance..  by the PRA because MMS staff
                                     (1) If MMS requests, you     asks non-standard questions to
                                      must submit all data used   resolve exceptions.
                                      to determine your
                                      transportation allowance.
                                      * * *.
------------------------------------
    Subtotal.......................  ...........................  ..............              57             155
------------------------------------

[[Page 62291]]

 
                                        Indian Gas Processing Allowances
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206.180(a)(1)(i)...................  How do I determine an                     1              30              30
                                      actual processing
                                      allowance?.
                                     (a) Determining a
                                      processing allowance if
                                      you have an arm's-length
                                      processing contract.
                                     (1) * * *..................
                                     (i) * * * You have the
                                      burden of demonstrating
                                      your contract is arm's
                                      length. You are required
                                      to submit to MMS a copy of
                                      your arm's length
                                      contract(s) and all
                                      subsequent amendments to
                                      the contract(s) within 2
                                      months of the date MMS
                                      receives your first report
                                      that deducts the allowance
                                      on the Form MMS-2014.
------------------------------------
206.180(a)(1)(iii).................  How do I determine an         PRODUCE RECORDS                             0
                                      actual processing           The ORA determined that the
                                      allowance?.                 audit process is not covered
                                     (a) Determining a            by the PRA because MMS staff
                                      processing allowance if     asks non-standard questions to
                                      you have an arm's-length    resolve exceptions.
                                      processing contract..
                                     (1) * * *..................
                                     (iii) If MMS determines
                                      that the consideration
                                      paid under an arm's-length
                                      processing contract does
                                      not reflect the value of
                                      the processing because of
                                      misconduct by or between
                                      the contracting parties,
                                      or * * *. In these
                                      circumstances, MMS will
                                      notify you and give you an
                                      opportunity to provide
                                      written information
                                      justifying your processing
                                      costs.
------------------------------------
206.180(b)(1)(ii)..................  How do I determine an                    20               5             100
                                      actual processing
                                      allowance? * * *.
                                     (b) Determining a
                                      processing allowance if
                                      you have a non-arm's-
                                      length contract or no
                                      contract. (1) * * *.
                                     (ii) * * * You must submit
                                      the actual cost
                                      information to support the
                                      allowance to MMS on Form
                                      MMS-4109, Gas Processing
                                      Allowance Summary Report,
                                      within 3 months after the
                                      end of the 12-month period
                                      for which the allowance
                                      applies. * * *.
------------------------------------
206.180(c)(1)......................  How do I determine an        PRODUCE RECORDS                              0
                                      actual processing           The ORA determined that the
                                      allowance? * * *.           audit process is not covered
                                     (c) Reporting your           by the PRA because MMS staff
                                      processing allowance. (1)   asks non-standard questions to
                                      If MMS requests, you must   resolve exceptions.
                                      submit all data used to
                                      determine your processing
                                      allowance. * * *.
------------------------------------
    Subtotal.......................  ...........................  ..............              35             130
====================================
        Total Burden...............  ...........................  ..............              92             285
----------------------------------------------------------------------------------------------------------------

    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 April 26, 2004 (69 FR 22548), 
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 November 24, 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

[[Page 62292]]

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: September 20, 2004.
Lucy Querques Denett,
Associate Director for Minerals Revenue Management.
[FR Doc. 04-23786 Filed 10-22-04; 8:45 am]
BILLING CODE 4310-MR-P