[Federal Register Volume 69, Number 206 (Tuesday, October 26, 2004)]
[Notices]
[Pages 62452-62454]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-23938]


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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 1010-0074).

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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 J--
Indian Coal. 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 part 206--Product Valuation, subpart J--Indian 
Coal (Forms MMS-4292, Coal Washing Allowance Report, and MMS-4293, Coal 
Transportation Allowance Report). We changed the title of this ICR to 
clarify the regulatory language we are covering under 30 CFR part 206. 
The previous title was ``Coal Washing and Transportation Allowances 
(Forms MMS-4292 and MMS-4293).''

DATES: Submit written comments on or before November 26, 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 1010-0074). 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 forms 
and regulations that require the subject collection of information.

SUPPLEMENTARY INFORMATION: Title: 30 CFR part 206--Product Valuation, 
subpart J--Indian Coal (Forms MMS-4292, Coal Washing Allowance Report, 
and MMS-4293, Coal Transportation Allowance Report).
    OMB Control Number: 1010-0074.
    Bureau Form Number: Forms MMS-4292 and MMS-4293.
    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 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.
    This ICR provides for the collection of coal washing and 
transportation information for Indian leases. The information collected 
is essential for the royalty valuation process. Applicable citations 
include 25 U.S.C. 396d and the Indian Mineral Development Act of 1982 
(25 U.S.C. 2103) pertaining to Indian lands on which solid minerals are 
produced. The product valuation and allowance determination processes 
are essential to assure that the Indians receive payment on the full 
value of the minerals removed.
    In order to determine whether the amount of royalty paid is 
correct, the value of the coal being sold or otherwise disposed of in 
some other manner (for example, used by the lessee) must be 
established. Under some circumstances, the lessee may be authorized to 
deduct certain costs in the calculation of royalties due. The total of 
these authorized deductible costs is known as an allowance. An 
allowance may be granted to compensate the lessee for the reasonable 
actual cost of washing the royalty portion of the coal. Also, when the 
sales point is not in the immediate vicinity of a lease or mine area, 
an allowance may be granted to compensate the lessee for the reasonable 
actual cost of transporting the royalty portion of the coal to a sales 
point not on the lease or mine area.
    We developed Form MMS-4292, Coal Washing Allowance Report, and Form 
MMS-4293, Coal Transportation Allowance Report, for industry to use 
when reporting or requesting a washing or transportation allowance. 
Historically, the lessee requested approval of royalty deductions by 
submitting a letter, which provided information enabling the Department 
to evaluate the reasonableness of the deductions. Under the product 
valuation regulations at 30 CFR 206--Product Valuation, subpart J--
Indian Coal, we normally accept costs incurred under arm's-length 
contracts for transporting and/or washing coal. (An arm's-length 
contract is a contract or an agreement that has been arrived at in the 
marketplace between independent, nonaffiliated persons with opposing 
economic interests regarding that contract.) The regulations further 
provide that we normally accept the gross proceeds accruing to the 
lessee pursuant to their arm's-length contract as being representative 
of value for ad valorem leases (see 30 CFR 206.456(b)(1)).
    In those instances when Indian royalty coal is washed or 
transported under non-arm's-length conditions, it is necessary for us 
to obtain cost data. This cost data enables us to accurately determine 
if the lessee correctly computed the coal value and the gross proceeds 
for royalty calculation purposes.
    Not collecting this information would limit the Secretary's ability 
to discharge fiduciary duties and may also result in the inability to 
confirm accurate royalty value. The information that is collected under 
this ICR is essential for the royalty valuation process.
    We are renewing this information collection request because of the 
possibility of 10 or more respondents in

[[Page 62453]]

the future. The MMS has had no respondents for this information 
collection since the previous renewal; however, we are basing our 
calculations of the burden hours on 1 respondent, as we did for the 
previous renewal.
    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: 1 Indian lessee.
    Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 4 
hours.
    We base our calculations on the reasonable expectation of 2 
responses from 1 Indian lessee. 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
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                                                                                      Average
       Citation 30 CFR subpart J          Reporting requirement    Hour  burden   number  annual  Annual  burden
                                                                                     responses         hours
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                                  Form MMS-4292, Coal Washing Allowance Report
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206.458(a)(1), (b)(1), (c)(1)(i) and    Determination of washing               2               1               2
 (iii), (c)(2)(i) and (iii).             allowances.
                                        (a) Arm's-length
                                         contracts. (1) * * *
                                         However, before any
                                         deduction may be taken,
                                         the lessee must submit
                                         a completed page one of
                                         Form MMS-4292, Coal
                                         Washing Allowance
                                         Report * * *.
                                        (b) Non-arm's-length or
                                         no contract.
                                        (1) * * * However,
                                         before any estimated or
                                         actual deduction may be
                                         taken, the lessee must
                                         submit a completed Form
                                         MMS-4292 * * *..
                                        (c) Reporting
                                         requirements. (1) Arm's-
                                         length contracts. (i) *
                                         * * the lessee shall
                                         submit page one of the
                                         initial Form MMS-4292
                                         prior to, or at the
                                         same time, as the
                                         washing allowance
                                         determined pursuant to
                                         an arm's-length
                                         contract is reported on
                                         Form MMS-4430, Solid
                                         Minerals Production and
                                         Royalty Report. * * *
                                         (iii) After the initial
                                         reporting period and
                                         for succeeding
                                         reporting periods,
                                         lessees must submit
                                         page one of Form MMS-
                                         4292 * * *.
                                        (2) Non-arm's-length or
                                         no contract. (i) * * *
                                         the lessee shall submit
                                         an initial Form MMS-
                                         4292 prior to, or at
                                         the same time as, the
                                         washing allowance
                                         determined pursuant to
                                         a non-arm's-length
                                         contract or no contract
                                         situation is reported
                                         on Form MMS-4430, Solid
                                         Minerals Production and
                                         Royalty Report. * * *
                                         (iii) For calendar-year
                                         reporting periods
                                         succeeding the initial
                                         reporting period, the
                                         lessee shall submit a
                                         completed Form MMS-4292
                                         containing the actual
                                         costs for the previous
                                         reporting period. If
                                         coal washing is
                                         continuing, the lessee
                                         shall include on Form
                                         MMS-4292 its estimated
                                         costs for the next
                                         calendar year. * * *.
---------------------------------------
                               Form MMS-4293, Coal Transportation Allowance Report
----------------------------------------------------------------------------------------------------------------
206.461(a)(1), (b)(1), (c)(1)(i) and    Determination of                       2               1               2
 (iii), (c)(2)(i) and (iii).             transportation
                                         allowances.
                                        (a) Arm's-length
                                         contracts. (1) * * *
                                         However, before any
                                         deduction may be taken,
                                         the lessee must submit
                                         a completed page one of
                                         Form MMS-4293, Coal
                                         Transportation
                                         Allowance Report * * *..
                                        (b) Non-arm's-length or
                                         no contract.
                                        (1) * * * However,
                                         before any estimated or
                                         actual deduction may be
                                         taken, the lessee must
                                         submit a completed Form
                                         MMS-4293 * * *..
                                        (c) Reporting
                                         requirements. (1) Arm's-
                                         length contracts. (i) *
                                         * * the lessee shall
                                         submit page one of the
                                         initial Form MMS-4293
                                         prior to, or at the
                                         same time as, the
                                         transportation
                                         allowance determined
                                         pursuant to an arm's-
                                         length contract is
                                         reported on Form MMS-
                                         4430, Solid Minerals
                                         Production and Royalty
                                         Report. * * *
                                        (iii) After the initial
                                         reporting period and
                                         for succeeding
                                         reporting periods,
                                         lessees must submit
                                         page one of Form MMS-
                                         4293 * * *..
                                        (2) Non-arm's-length or
                                         no contract. (i) * * *
                                         the lessee shall submit
                                         an initial Form MMS-
                                         4293 prior to, or at
                                         the same time as, the
                                         transportation
                                         allowance determined
                                         pursuant to a non-arm's-
                                         length contract or no
                                         contract situation is
                                         reported on Form MMS-
                                         4430, Solid Minerals
                                         Production and Royalty
                                         Report. * * *
                                        (iii) For calendar-year
                                         reporting periods
                                         succeeding the initial
                                         reporting period, the
                                         lessee shall submit a
                                         completed Form MMS-4293
                                         containing the actual
                                         costs for the previous
                                         reporting period * * *.
    Total Burden......................  ........................  ..............               2               4
----------------------------------------------------------------------------------------------------------------


[[Page 62454]]

    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 March 26, 2004 (69 FR 15897), 
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 26, 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: September 10, 2004.
Lucy Querques Denett,
Associate Director for Minerals Revenue Management.
[FR Doc. 04-23938 Filed 10-25-04; 8:45 am]
BILLING CODE 4310-MR-P