[Federal Register Volume 70, Number 14 (Monday, January 24, 2005)]
[Notices]
[Pages 3382-3385]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-1174]


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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 1010-0104).

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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, subpart E. The previous title of this 
ICR was ``Accounting for Comparison (Dual Accounting) (Form MMS-
4410).'' The new title of this ICR is ``30 CFR part 206, subpart E--
Indian Gas, Sec. Sec.  206.172, 206.173, and 206.176 (Form MMS-4410, 
Accounting for Comparison [Dual Accounting]).''

DATES: Submit written comments on or before February 23, 2005.

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 1010-0104). 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.

[[Page 3383]]


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 at no cost a copy of the form 
and regulations that require the subject collection of information.

SUPPLEMENTARY INFORMATION: Title: 30 CFR part 206, subpart E--Indian 
Gas, Sec. Sec.  206.172, 206.173, and 206.176 (Form MMS-4410, 
Accounting for Comparison [Dual Accounting]).
    OMB Control Number: 1010-0104.
    Bureau Form Number: Form MMS-4410.
    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 fulfilling the Department's Indian trust responsibility. 
The information collected is essential for the product valuation 
determination process.
    Applicable citations pertaining to minerals 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.
    The product valuation determination process is essential to 
ensuring that Indians receive payment on the proper value of the 
minerals being removed. Indian tribes and individual Indian mineral 
owners receive all royalties generated from their lands. The Indian 
tribal representatives have expressed concern that the Secretary 
properly ensures the correct royalty is received. Failure to collect 
the data described in this information collection could result in the 
undervaluation of leased minerals. Proprietary information submitted to 
MMS under this collection is protected.
    Most Indian leases contain the requirement to perform accounting 
for comparison (dual accounting) for gas produced from the lease. 
According to 30 CFR 206.176, dual accounting is the greater of the 
following two values:
    (1) The value of gas prior to processing, less any applicable 
allowances, or
    (2) The combined value of residue gas and gas plant products 
resulting from processing the gas, less any applicable allowances, plus 
any drip condensate associated with the processed gas recovered 
downstream of the point of royalty settlement without resorting to 
processing, less applicable allowances.
    On August 10, 1999, MMS published a final rule titled ``Amendments 
to Gas Valuation Regulations for Indian Leases'' (64 FR 43506) with an 
effective date of January 1, 2000. This regulation applies to all gas 
produced from Indian oil and gas leases, except leases on the Osage 
Indian Reservation. The intent of the rule is to ensure that Indian 
mineral lessors receive the maximum revenues from mineral resources on 
their land, consistent with the Secretary's trust responsibility and 
with lease terms. The rule requires lessees to elect to perform either 
actual dual accounting under 30 CFR 206.176, or the alternative 
methodology for dual accounting under 30 CFR 206.173.
    We must collect the dual accounting election information on Form 
MMS-4410, Accounting for Comparison [Dual Accounting], to enforce dual 
accounting requirements in Indian lease terms and in our Indian gas 
valuation regulations.

Form MMS-4410

    Lessees use Form MMS-4410 to certify that dual accounting is not 
required on an Indian lease and to make an election for actual or 
alternative dual accounting.
    In this ICR, we are asking approval to continue using the Form MMS-
4410 to clarify the lessee's justification for not performing dual 
accounting and for the lessee's separate election to use the actual or 
alternative dual accounting methodology.

Form MMS-4410, Part A, Certification for Not Performing Dual Accounting

    Form MMS-4410, Part A, requires lessees to identify the MMS-
designated areas where the leases are located and provide specific 
justification for not performing dual accounting. Part A is a one-time 
notification, until any changes occur in gas disposition. To assist the 
lessees in identifying the reason(s) for not performing dual 
accounting, Part A lists acceptable reasons including: (1) The lease 
terms do not require dual accounting; (2) none of the gas from the 
lease is ever processed; (3) gas has a Btu content of 1000 Btu's per 
cubic foot or less at lease's facility measurement point(s); (4) none 
of the gas from the lease is processed until after gas flows into a 
pipeline with an index located in an index zone; and (5) none of the 
gas from the lease is processed until after gas flows into a mainline 
pipeline not located in an index zone.

Form MMS-4410, Part B, Election To Perform Actual Dual Accounting or 
Alternative Dual Accounting

    Effective January 2002, we collected elections to perform actual 
dual accounting or alternative dual accounting from lessees on Part B 
of Form MMS-4410. A lessee makes an election by checking either the 
actual or alternative dual accounting box for each MMS-designated area 
where its leases are located. Part B also includes the lessee's lease 
prefixes within each MMS-designated area to assist lessees in making 
the appropriate election. The election to perform actual or alternative 
dual accounting applies to all of a lessee's Indian leases in each MMS-
designated area. The first election on Part B to use the alternative 
dual accounting is effective from the time of election through the end 
of the following calendar year. Thereafter, each election to use the 
alternative dual accounting methodology must remain in effect for 2 
calendar years. However, lessees may return to the actual dual 
accounting methodology only at the beginning of the next election 
period or with written approval from MMS and the tribal lessors for 
tribal leases, and from MMS for Indian allotted leases in the MMS-
designated area (30 CFR 206.173(a)).
    Frequency of Response: On occasion.

[[Page 3384]]

    Estimated Number and Description of Respondents: 50 lessees of 
Indian gas royalties.
    Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 170 
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. We reviewed actual data from past 
years and obtained feedback from companies to project burden hours for 
future years. We require Part A of Form MMS-4410 when lessees certify 
that no dual accounting is required. Since the effective date of the 
Indian gas rule (January 2000), MMS has received hundreds of 
certifications (Part A of Form MMS-4410). Because this certification is 
a one-time notification for each Indian lease, until any changes occur 
in gas disposition, MMS does not anticipate that in the future we will 
receive a significant number of additional certifications.
    The MMS also requires lessees to submit Part B of Form MMS-4410 
when lessees make an initial election for dual accounting or when 
lessees want to change their election for dual accounting. The MMS does 
not anticipate that in the future we will receive a significant number 
of additional initial dual accounting elections or changes to current 
elections.
    We have adjusted the burden hours accordingly. There are 
approximately 370 lessees of Indian gas royalties; however, we expect 
responses from only 50 lessees because most lessees have either 
previously submitted a certification that no dual accounting is 
required or lessees have previously made their initial dual accounting 
election. Lessees may change their alternative dual accounting election 
only after 2 calendar years on Form MMS-4410. Therefore, we expect 
approximately 60 responses from 50 lessees of Indian gas royalties and 
estimate that the total annual burden is 170 reporting hours based on 
MMS's historical data, and taking into consideration customer feedback.
    The following chart shows the estimated burden hours by CFR section 
and paragraph:

                                                       Respondents' Estimated Annual Burden Hours
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                                                     Reporting or recordkeeping          Burden hours per          Annual number of       Annual burden
                30 CFR section                              requirement                      response                  responses              hours
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206.172(b)(1)(ii).............................  How do I value gas produced from                            4                        25              100
                                                 leases in an index zone?
                                                * * * (b) Valuing residue gas and
                                                 gas before processing. (1) * * *
                                                 (ii) Gas production that you
                                                 certify on Form MMS-4410, * * * is
                                                 not processed before it flows into
                                                 a pipeline with an index but which
                                                 may be processed later * * *.
                                                 (Part A of Form MMS-4410).
206.173(a)(1).................................  How do I calculate the alternative                          2                        35               70
                                                 methodology for dual accounting?
                                                (a) Electing a dual accounting
                                                 method. (1) * * * You may elect to
                                                 perform the dual accounting
                                                 calculation according to either
                                                 Sec.   206.176(a) (called actual
                                                 dual accounting), or paragraph (b)
                                                 of this section (called the
                                                 alternative methodology for dual
                                                 accounting). (Part B of Form MMS-
                                                 4410).
                                                                                    ---------------------------
206.173(a)(2).................................  How do I calculate the alternative     Burden hours covered under Sec.   206.173(a)(1)                 0
                                                 methodology for dual accounting?
                                                (a) Electing a dual accounting
                                                 method. * * *.
                                                (2) You must make a separate
                                                 election to use the alternative
                                                 methodology for dual accounting
                                                 for your Indian leases in each MMS-
                                                 designated area. * * * (Part B of
                                                 Form MMS-4410).
206.176(b)....................................  How do I perform accounting for        Burden hours covered under Sec.   206.173(a)(1)                 0
                                                 comparison?
                                                * * * (b) If you are required to
                                                 account for comparison, you may
                                                 elect to use the alternative dual
                                                 accounting methodology provided
                                                 for in Sec.   206.173 instead of
                                                 the provisions in paragraph (a) of
                                                 this section. (Part B of Form MMS-
                                                 4410).
206.176(c)....................................  How do I perform accounting for                Burden hours covered under Sec.                         0
                                                 comparison?                                          206.172(b)(1)(ii)
                                                * * * (c) * * * If you do not
                                                 perform dual accounting, you must
                                                 certify to MMS that gas flows into
                                                 such a pipeline before it is
                                                 processed. (Part A of Form MMS-
                                                 4410).
                                                                                    ---------------------------
    Totals....................................  ...................................  ........................                        60              170
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[[Page 3385]]

    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 June 10, 2004 (69 FR 32606), 
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. The 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 
February 23, 2005.
    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: November 5, 2004.
Lucy Querques Denett,
Associate Director for Minerals Revenue Management.
[FR Doc. 05-1174 Filed 1-21-05; 8:45 am]
BILLING CODE 4310-MR-P