[Federal Register Volume 70, Number 150 (Friday, August 5, 2005)]
[Notices]
[Pages 45418-45421]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-15532]


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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 1010-0073).

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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 220. This notice also 
provides the public a second opportunity to comment on the paperwork 
burden of these regulatory requirements. The previous title of this ICR 
was ``30 CFR part 220, Accounting Procedures for Determining Net Profit 
Share Payment for Outer Continental Shelf Oil and Gas Leases.'' The new 
title of this ICR is ``30 CFR part 220--Accounting Procedures for 
Determining Net Profit Share Payment for Outer Continental Shelf Oil 
and Gas Leases, Sec.  220.010 NPSL capital account, Sec.  220.030 
Maintenance of records, Sec.  220.031 Reporting and payment 
requirements, Sec.  220.032 Inventories, and Sec.  220.033 Audits.''

DATES: Submit written comments on or before September 6, 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 1010-0073). Mail your comments to 
Sharron L. Gebhardt, Lead Regulatory Specialist, Chief of Staff Office, 
Minerals Management Service, Minerals Revenue Management, P.O. Box 
25165, MS 302B2, Denver, Colorado 80225. If you use an overnight 
courier service or wish to hand-carry your comments, 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, at no cost, a copy of the 
regulations that require the subject collection of information.

SUPPLEMENTARY INFORMATION:

[[Page 45419]]

    Title: 30 CFR part 220--Accounting Procedures for Determining Net 
Profit Share Payment for Outer Continental Shelf Oil and Gas Leases, 
Sec.  220.010 NPSL capital account, Sec.  220.030 Maintenance of 
records, Sec.  220.031 Reporting and payment requirements, Sec.  
220.032 Inventories, and Sec.  220.033 Audits.
    OMB Control Number: 1010-0073.
    Bureau Form Number: None.
    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.

Applicable Citations

    Applicable citations of the laws are the Federal Oil and Gas 
Royalty Management Act of 1982 (Pub. L. 97-451--Jan. 12, 1983); the 
Outer Continental Shelf Lands Act of 1953 (43 U.S.C. 1353) (Pub. L. 
212--Aug. 7, 1953, as amended by Pub. L. 93-627--Jan. 3, 1975, Pub. L. 
95-372--Sept. 18, 1978, and Pub. L. 98-498--Oct. 19, 1984); and the 
Mineral Leasing Act (30 U.S.C. 1923). These citations can be viewed on 
our Web site at http://www.mrm.mms.gov/Laws_R_D/PublicLawsAMR.htm.
    The Code of Federal Regulations (CFR) citations covering the net 
profit share lease (NPSL) program are located at 30 CFR part 220--
Accounting Procedures for Determining Net Profit Share Payment for 
Outer Continental Shelf Oil and Gas Leases.

General Information

    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 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 royalties or net profit share payments are properly 
valued and appropriately paid. Proprietary information submitted to MMS 
under this collection is protected, and no items of a sensitive nature 
are collected.

NPSL Bidding System

    To encourage exploration and development of oil and gas leases on 
submerged Federal lands on the OCS, regulations were promulgated at 30 
CFR part 260--Outer Continental Shelf Oil and Gas Leasing. Specific 
implementation regulations for the NPSL bidding system are promulgated 
at 30 CFR 260.110(d), covered under ICR 1010-0143 (expires December 31, 
2006). The MMS established the NPSL bidding system to properly balance 
a fair market return to the Federal Government for the lease of its 
lands, with a fair profit to companies risking their investment 
capital. The system provides an incentive for early and expeditious 
exploration and development and provides for sharing the risks by the 
lessee and the Federal Government. The NPSL bidding system incorporates 
a fixed capital recovery system as a means through which the lessee 
recovers costs of exploration and development from production revenues, 
along with a reasonable return on investment.

NPSL Capital Account

    The Federal Government does not receive a profit share payment from 
an NPSL until the lessee shows a credit balance in its capital account; 
that is, cumulative revenues and other credits exceed cumulative costs. 
The credit balance is multiplied by the net profit share rate (30 to 50 
percent), resulting in the amount of net profit share payment due the 
Federal Government.
    The MMS requires lessees to maintain an NPSL capital account for 
each lease, which transfers to a new owner when sold. Following the 
cessation of production, lessees are also required to provide either an 
annual or a monthly report to the Federal Government, using data from 
the capital account.

NPSL Inventories

    The NPSL lessees must notify MMS of their intent to perform an 
inventory and file a report after each inventory of controllable 
materiel.

NPSL Audits

    When non-operators of an NPSL call for an audit, they must notify 
MMS. When MMS calls for an audit, the lessee must notify all non-
operators on the lease. These requirements are located at 30 CFR 
220.033.

Summary

    This collection of information is necessary in order to determine 
when net profit share payments are due and to ensure royalties or net 
profit share payments are properly valued and appropriately paid.
    We are revising this ICR to add citations related to records 
management at 30 CFR 220.030(a) and inventories at Sec.  220.032(b). We 
added a new citation for a PRA-exempt requirement related to audits at 
Sec.  220.033(e). For clarification, we added Sec.  220.031(c) related 
to payment requirements. We have not included in our estimates certain 
requirements performed in the normal course of business, which are 
considered usual and customary.
    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 his/her 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, monthly, and on occasion.
    Estimated Number and Description of Respondents: 9 lessees.
    Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 1,583 
hours.
    All nine lessees report monthly because all current NPSLs are in 
producing status. Because the requirements for establishment of capital 
accounts at Sec.  220.010(a) and capital account annual reporting at 
Sec.  220.031(a) are necessary only during non-producing status of a 
lease, we included only one response annually for these requirements, 
in case a new NPSL is established. The following chart shows the 
estimated burden hours by CFR section and paragraph:

[[Page 45420]]



                                   Respondents' Estimated Annual Burden Hours
----------------------------------------------------------------------------------------------------------------
                                                                                     Number of
      Citation 30 CFR 220           Reporting & recordkeeping       Hour burden       annual       Annual burden
                                           requirement                               responses         hours
----------------------------------------------------------------------------------------------------------------
PART 220--ACCOUNTING PROCEDURES FOR DETERMINING NET PROFIT SHARE PAYMENT FOR OUTER CONTINENTAL SHELF OIL AND GAS
                                                     LEASES
----------------------------------------------------------------------------------------------------------------
                                      Sec.   220.010 NPSL capital account.
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220.010(a)....................  (a) For each NPSL tract, an NPSL               1               1               1
                                 capital account shall be
                                 established and maintained by
                                 the lessee for NPSL operations
                                 * * *.
-------------------------------
                                      Sec.   220.030 Maintenance of records
----------------------------------------------------------------------------------------------------------------
220.030(a) and (b)............  (a) Each lessee * * * shall                    1               9               9
                                 establish and maintain such
                                 records as are necessary * * *.
-------------------------------
                                Sec.   220.031 Reporting and payment requirements
----------------------------------------------------------------------------------------------------------------
220.031(a)....................  (a) Each lessee subject to this               16               1              16
                                 part shall file an annual
                                 report during the period from
                                 issuance of the NPSL until the
                                 first month in which production
                                 revenues are credited to the
                                 NPSL capital account * * *.
220.031(b)....................  (b) Beginning with the first                  13             108           1,404
                                 month in which production
                                 revenues are credited to the
                                 NPSL capital account, each
                                 lessee * * * shall file a
                                 report for each NPSL, not later
                                 than 60 days following the end
                                 of each month * * *.
220.031(c)....................  (c) Each lessee subject to this        Burden hours covered under 220.031(b).
                                 Part 220 shall submit, together
                                 with the report required * * *
                                 any net profit share payment
                                 due * * *.
220.031(d)....................  (d) Each lessee * * * shall file               8               9              72
                                 a report not later than 90 days
                                 after each inventory is taken *
                                 * *.
220.031(e)....................  (e) Each lessee * * * shall file               4               9              36
                                 a final report, not later than
                                 60 days following the cessation
                                 of production * * *.
-------------------------------
                                            Sec.   220.032 Inventories
----------------------------------------------------------------------------------------------------------------
220.032(b)....................  (b) At reasonable intervals, but               1               9               9
                                 at least once every three
                                 years, inventories of
                                 controllable materiel shall be
                                 taken by the lessee. Written
                                 notice of intention to take
                                 inventory shall be given by the
                                 lessee at least 30 days before
                                 any inventory is to be taken so
                                 that the Director may be
                                 represented at the taking of
                                 inventory * * *.
-------------------------------
                                              Sec.   220.033 Audits
----------------------------------------------------------------------------------------------------------------
220.033(b)(1).................  (b)(1) When nonoperators of an                 2               9              18
                                 NPSL lease call an audit in
                                 accordance with the terms of
                                 their operating agreement, the
                                 Director shall be notified of
                                 the audit call * * *.
220.033(b)(2).................  (b)(2) If DOI determines to call               2               9              18
                                 for an audit, DOI shall notify
                                 the lessee of its audit call
                                 and set a time and place for
                                 the audit. * * * The lessee
                                 shall send copies of the notice
                                 to the nonoperators on the
                                 lease * * *.
220.033(e)....................  (e) Records required to be kept        The Office of Regulatory Affairs has
                                 under Sec.   220.030(a) shall       determined that the audit process is not
                                 be made available for            covered by the PRA because MMS staff asks non-
                                 inspection by any authorized        standard questions to resolve exceptions.
                                 agent of DOI * * *.
                                                                 -----------------
    Total Burden..............  ................................  ..............             164           1,583
----------------------------------------------------------------------------------------------------------------

    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

[[Page 45421]]

November 16, 2004 (69 FR 67162), 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 
September 6, 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: May 9, 2005.
Lucy Querques Denett,
Associate Director for Minerals Revenue Management.
[FR Doc. 05-15532 Filed 8-4-05; 8:45 am]
BILLING CODE 4310-MR-P