[Federal Register Volume 71, Number 133 (Wednesday, July 12, 2006)]
[Notices]
[Pages 39343-39351]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-10884]


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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 1010-0087).

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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 parts 227--Delegation to 
States; 228--Cooperative Activities with States and Indian Tribes; and 
229--Delegation to States. This notice also provides the public a 
second opportunity to comment on the paperwork burden of these 
regulatory requirements. This ICR is titled ``30 CFR Part 227--
Delegation to States; 30 CFR Part 228--Cooperative Activities with 
States and Indian Tribes; and 30 CFR Part 229--Delegation to States.'' 
We changed the title of this ICR to clarify the regulatory language we 
are covering under 30 CFR parts 227, 228, and 229 and to reflect OMB 
approval of consolidation of two ICRs, titled:
     ICR 1010-0087: 30 CFR Part 228--Cooperative Activities 
with States and Indian Tribes; and
     ICR 1010-0088: 30 CFR Part 227--Delegation to States.
    In the two ICRs, much of the general information was repeated and 
cross-referenced. This consolidated ICR 1010-0087 eliminates that 
duplication of effort and redundancy of data and also includes 30 CFR 
part 229 information collection burden hours, which were not included 
in the previous information collections (ICRs 1010-0087 and 1010-0088).

DATES: Submit written comments on or before August 11, 2006.

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 1010-0087).
    Please also send a copy of your comments to MMS via e-mail 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. If you do not receive a 
confirmation that we have received your e-mail, contact Ms. Gebhardt at 
(303) 231-3211.
    You may also mail 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 or wish to hand-deliver 
your comments, our courier address is Building 85, Room A-614, Denver 
Federal Center, West 6th Ave. and Kipling Blvd., Denver, Colorado 
80225.

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, copies of (1) the 
ICR, (2) any associated forms, and (3) regulations that require the 
subject collection of information.

SUPPLEMENTARY INFORMATION:
    Title: 30 CFR Part 227--Delegation to States; 30 CFR Part 228--
Cooperative Activities with States and Indian Tribes; and 30 CFR Part 
229--Delegation to States.
    OMB Control Number: 1010-0087.
    Bureau Form Number: None.
    Abstract: The Secretary of the U.S. Department of the Interior is 
responsible for collecting royalties from lessees who produce minerals 
from leased Federal and Indian lands. The Secretary is required by 
various laws to manage mineral resources production on Federal and 
Indian lands, collect the royalties due, and distribute the funds in 
accordance with those laws.
    The Secretary also has a trust responsibility to manage Indian 
lands and seek advice and information from Indian beneficiaries. The 
MMS performs the minerals revenue management functions and assists the 
Secretary in carrying out the Department's trust responsibility for 
Indian lands.
    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 on 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 accurately 
valued and appropriately paid.
    Sections 202 and 205 of the Federal Oil and Gas Royalty Management 
Act of 1982 (FOGRMA), as amended, authorized the Secretary to develop 
delegated and cooperative agreements with states and Indian tribes to 
carry out certain inspection, auditing, investigation, or limited 
enforcement activities for leases in their jurisdiction. The states and 
Indian tribes are working partners and are an integral part of the 
overall onshore and offshore compliance effort.

Applicable Citations

    Applicable citations of the laws pertaining to this ICR include:
    (1) Public Law 97-451--Jan. 12, 1983, FOGRMA, Sections 202 and 205; 
and
    (2) Public Law 104-185--Aug. 13, 1996, as corrected by Public Law 
104-200--Sept. 22, 1996, the Federal Oil and Gas Royalty Simplification 
and Fairness Act of 1996 (RSFA), Sections 3, 4, and 8.
    Public laws pertaining to mineral royalties are located on our Web 
site at http://www.mrm.mms.gov/Laws_R_D/PublicLawsAMR.htm.
    Relevant parts of the Code of Federal Regulations (CFR) include 30 
CFR parts 227, 228, and 229, as described below:
    Title 30 CFR part 227, Delegation to States, provides procedures to 
delegate certain Federal minerals revenue management functions to 
states for Federal oil and gas, geothermal, and solid mineral leases 
and leases subject to 8(g) of the Outer Continental Shelf Lands Act, 
within their state boundaries.
    Title 30 CFR part 228, Cooperative Activities with States and 
Tribes, provides procedures to utilize the capabilities of the Indian 
tribes to carry out audits and related investigations of their 
respective leased lands.
    Title 30 CFR part 229, Delegation to States, provides procedures to 
utilize the capabilities of the states to carry out audits and related 
investigations of leased Indian lands within their respective state 
boundaries, by permission of the respective Indian

[[Page 39344]]

tribal councils or individual Indian mineral owners.
    Effective September 11, 1997, parts 228 and 229 do not apply to 
Federal lands, due to implementation of RSFA amendments.

Delegation to States, 30 CFR Part 227

    The states audit Federal lands under provisions of 30 CFR part 227. 
The Secretary is authorized under Section 205 of FOGRMA, as amended by 
RSFA Section 3, to delegate to states, all or part of authorities and 
responsibilities of the Secretary, to conduct inspections, audits, 
investigations, and limited enforcement activities for leases in their 
jurisdiction. Specifically, RSFA Section 3 amended FOGRMA Section 205 
to add items e through g below for minerals revenue management 
functions on Federal lands:
    a. Conducting audits and investigations;
    b. Issuing demands and subpoenas (except for solid mineral and 
geothermal leases);
    c. Issuing orders to perform restructured accounting;
    d. Issuing related tolling agreements and notices to lessees or 
their designees;
    e. Receiving and processing production and royalty reports;
    f. Correcting erroneous report data; and
    g. Performing automated verification.

Under FOGRMA

    Eleven states currently have MMS-approved delegation agreements to 
perform audits and investigations, which are the functions previously 
authorized under FOGRMA (items a through d above). The most recent 
delegated agreement was established in 2004 between MMS and the state 
of Alaska.
    The states perform nearly all audits on Federal leases within their 
boundaries and typically receive 50 percent of any additional 
collections; however, Alaska typically receives 90 percent of onshore 
royalties. Many states gain efficiencies by performing audits on state 
severance taxes and concurrently on properties that have both Federal 
and state interests. Federal royalties are a significant portion of 
many states' annual budgets.

Under RFSA

    Currently, there are no states with MMS-approved delegation 
agreements. To be considered for delegation under 30 CFR part 227, 
states must submit a written delegation proposal to, and receive 
approval from, the MMS Associate Director for MRM. Delegation 
agreements benefit both MMS and states by helping to ensure accurate 
and timely production reporting, royalty payment, and proper product 
valuation through the application of an aggressive and comprehensive 
audit program.
    When a state performs any of the delegated functions under 30 CFR 
part 227, the state also assumes the burden of providing various types 
of information to MMS. Under RSFA, and to properly administer the 
delegation of the functions to the requesting states, MRM must collect 
pertinent information from industry and states to ensure that this 
program continues to operate efficiently and effectively.
    Currently, companies send all royalty reports and payments (ICR 
1010-0140, expires October 31, 2006) and production reports (ICR 1010-
0139, expires August 31, 2006) to MRM. The MRM verifies the accuracy of 
the reports and payments prior to disbursing the funds to states, 
Indian tribes, individual Indian mineral owners, the U.S. Treasury, and 
other Federal agencies. If states choose to participate in the 
delegable function of receiving and processing financial and production 
reports, payors/reporters must send these reports to each participating 
state for the Federal leases within that state and to MRM for the 
remaining Federal leases. The states must verify the accuracy of these 
reports. The MRM currently handles production and royalty reporting, 
error correction, end-to-end compliance review process, issuing demand 
letters, and billing actions.
    The MRM is held accountable to certain measurements and standards 
and must file reports to outside entities. States choosing to 
participate in any delegable function will be held to these same 
measurements and standards and, therefore, will have to provide data to 
document the work they are performing. This information, provided to 
MMS in the course of performing delegated agreements, is the focus of 
this information collection. States must comply with Generally Accepted 
Accounting Principles (GAAP) and MMS standards, as required under 30 
CFR 227.200, and with the MRM Audit Manual, MRM Compliance Review 
Manual, and Generally Accepted Government Auditing Standards (GAGAS), 
as required under 30 CFR 227.301.

Cooperative Activities With States and Indian Tribes, 30 CFR Part 228

    The final rulemaking of Delegation of Royalty Management Functions 
to States was published on August 12, 1997 (62 FR 43076), effective 
September 11, 1997, and stated that part 228 does not apply to Federal 
lands because delegation for Federal lands is now covered under part 
227.
    The Secretary is authorized under FOGRMA Section 202, Cooperative 
Agreements, as amended by RSFA Section 8, to enter into cooperative 
agreements with any state or Indian tribe upon their written request; 
to share oil or gas revenue management information; and to use the 
capabilities of states and Indian tribes to carry out inspection, 
royalty audit, and related investigation and enforcement activities.

States

    There are no states with cooperative agreements, as no state has 
proposed to enter into a cooperative agreement or to undertake 
activities on Indian lands within its boundaries.

Indian Tribes

    Currently, seven Indian tribes have cooperative agreements to 
perform audits and investigations. When an Indian tribe performs any of 
the cooperative activities under 30 CFR part 228, the Indian tribe also 
assumes the burden of providing various types of information to MMS. 
This information, provided to MMS in the course of performing 
cooperative activities, is the focus of this information collection. 
After the request is accepted and a cooperative agreement is in effect, 
Indian tribes must submit an annual workplan and budget, as well as 
quarterly reimbursement vouchers. They must follow GAAP and MMS 
standards as required under 30 CFR 228.102. The cooperative agreements 
also require them to comply with the MRM Audit Manual, MRM Compliance 
Review Manual, and GAGAS.
    Cooperative activities benefit both MMS and Indian tribes by 
helping to ensure accurate and timely production reporting, proper 
product valuation, and accurate and timely royalty payment through the 
application of an aggressive and comprehensive audit program.
    Indian tribes currently manage audits for 89 percent of all tribal 
mineral royalties. Major focus in FY 2007 provide for additional full-
time MMS employees to provide increased oversight of Indian tribal 
audits due to a recent court decision.
    To be considered for a cooperative audit agreement, Indian tribes 
must comply with the regulations at 30 CFR part 228. Indian tribes who 
want to perform royalty audits in cooperation with MMS must submit a 
written proposal to enter into a cooperative agreement, signed by the 
tribal chairman or other appropriate official, to the MMS Director. The 
request

[[Page 39345]]

should outline the activities to be undertaken and present evidence 
that the Indian tribe(s) can meet the standards established by the 
Secretary for the activities to be conducted. Prior to beginning work, 
approval must be obtained from the MMS Director.

Delegation to States, 30 CFR Part 229

    The final rulemaking of Delegation of Royalty Management Functions 
to States was published on August 12, 1997 (62 FR 43076), effective 
September 11, 1997, and stated that part 229 does not apply to Federal 
lands because delegation for Federal lands is now covered under part 
227.
    At this time, no state has proposed to undertake delegated 
functions on Indian lands within its boundaries.
    Under the Secretary's delegation of authority at this part, a state 
may conduct audits and related investigations of oil and gas payments 
made to MMS regarding leased Indian lands within the state's 
boundaries. A state must receive written permission from the respective 
Indian tribe(s) or individual Indian mineral owner(s).
    After receiving written permission, the governor or other 
authorized official of a state may petition the Secretary to assume 
responsibilities of conducting audits and related investigation of 
Indian oil and gas leases. A state petitioning for a delegation of 
authority will have the opportunity to present testimony at a public 
hearing within the state.
    After the state receives approval of the Secretary's delegation of 
authority, it must submit annual audit workplans detailing its audits 
and related investigations, annual budgets, and quarterly reimbursement 
vouchers. The state shall maintain books and records and provide a 
quarterly summary of costs following Department standards, as required 
under 30 CFR 229.109.
    In addition, 30 CFR 229.101(b), covering the Federal Government's 
administration of delegations, states:
    (b) A State may enter into a delegation of authority under this 
part [229] without affecting a State's ability to enter into a 
cooperative agreement under part 228 of this chapter.

Summary

    Proprietary information submitted to MMS under this collection is 
protected. No items of a sensitive nature are collected. The 
opportunity to engage in these programs is voluntary; however, if the 
respondents want to receive benefits, the requirement for response is 
mandatory.
    Frequency of Response: Varies based on the function performed.
    Estimated Number and Description of Respondents: 11 states and 7 
Indian tribes.
    Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 6,194 
hours.
    We are revising this ICR to include reporting requirements from 
part 229 citations that were overlooked in the previous renewal, and we 
have adjusted the burden hours accordingly.
    The MMS estimates 774 responses each year from the 11 states and 7 
Indian tribes. We estimate the total annual burden is 6,194 (4,389 for 
states and 1,805 for Indian tribes) reporting and recordkeeping hours. 
Due to the complexity of the chart below, we are detailing the number 
of burden hours for the states and Indian tribes.
     States: We estimate 711 responses (695 from 30 CFR part 
227 and 16 from part 229) from 11 states. We estimate the total annual 
burden for these responses is 4,389 (4,373 from 30 CFR part 227 and 16 
from 30 CFR part 229) reporting and recordkeeping hours due to 
historical information.
     Indian tribes: We estimate 63 responses (from 30 CFR part 
228) from 7 Indian tribes. We estimate the total annual burden for 
these responses is 1,805 reporting and recordkeeping hours due to 
historical information.
    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' Estiamted Annual Burden Hours
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                                                                                                                             Number of
                30 CFR section                          Reporting and recordkeeping requirements            Hour burden       annual       Annual burden
                                                                                                           per response      responses         hours
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                                                             Part 227--Delegation to States
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                                                                  Delegation Proposals
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227.103......................................  What must a State's delegation proposal contain?                      200               1             200
                                               If you want MMS to delegate royalty management functions
                                                to you, then you must submit a delegation proposal to
                                                the MMS Associate Diector for Minerals Revenue
                                                Management. MMS will provide you with technical
                                                assistance and information to help you prepare your
                                                delegation proposal. * * *.
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                                                                   Delegation Process
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227.107......................................  When will the MMS Director decide whether to approve a        Hour burden covered under Sec.   227.103
                                                State's delegation proposal?
                                               The MMS Director will decide whether to approve your
                                                delegation proposal within 90 days after your delegation
                                                proposal is considered complete under Sec.   227.104.
                                                MMS may extend the 90-day period with your written
                                                consent..
227.109......................................  What if the MMS Director denies a State's delegation          Hour burden covered under Sec.   227.103.
                                                proposal?
                                               If the MMS Director denies your delegation proposal, MMS
                                                will state the reasons for denial. MMS also will inform
                                                you in writing of the conditions you must meet to
                                                receive approval. You may submit a new delegation
                                                proposal at any time following a denial..

[[Page 39346]]

 
227.110(a)...................................  When and for how long are delegation agreements               Hour burden covered under Sec.   227.103.
                                                effective?
                                               (a) Delegation agreements are effective for 3 years from
                                                the date the MMS Director signs the delegation
                                                agreement. However, during the development of the
                                                State's delegation proposal under Sec.   227.108 of this
                                                part, MMS, the delegated State, and any other affected
                                                person will determine an appropriate transition period
                                                for lessees and their designees to modify their systems
                                                to comply with any new requirements under a delegation
                                                agreement * * *..
227.110(b) and (b)(1)........................  (b) You may ask MMS to renew the delegation for an            Hour burden covered under Sec.   227.103.
                                                additional 3 years no less than 6 months before your 3-
                                                year delegation agreement expires. You must submit your
                                                renewal request to the MMS Associate Director for
                                                Minerals Revenue Management as follows:
                                               (1) If you do not want to change the terms of your
                                                delegation agreement for the renewal period, you need
                                                only ask to extend your existing agreement for the 3-
                                                year renewal period. * * *
227.110(b)(2)................................  (b)(2) If you want to change the terms of your delegation              15              11             165
                                                agreement for the renewal period, you must submit a new
                                                delegation proposal under this part.
227.110(c)...................................  (c) The MMS Director may approve your renewal request         Hour burden covered under Sec.   227.103.
                                                only if MMS determines that you are meeting the
                                                requirements of the applicable standards and
                                                regulations. If the MMS Director denies your renewal
                                                request, MMS will state the reasons for denial. MMS also
                                                will inform you in writing of the conditions you must
                                                meet to receive approval. You may submit a new renewal
                                                request any time after denial..
227.110(d)...................................  (d) After the 3-year renewal period for your delegation       Hour burden covered under Sec.   227.103.
                                                agreement ends, if you wish to continue performing one
                                                or more delegated functions, you must request a new
                                                delegation agreement from MMS under this part. MMS will
                                                schedule a hearing on your request, if MMS determines a
                                                hearing is appropriate. * * *
227.110(e)...................................  (e) If you do not request a hearing under paragraphs          Hour burden covered under Sec.   227.103.
                                                (b)(1) or (d) of this section, any other affected person
                                                may submit a written request for a hearing under those
                                                paragraphs to the MMS Associate Director for Minerals
                                                Revenue Management.
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             Existing Delegations
227.111(a) and (b)...........................  Do existing delegation agreements remain in effect?           Hour burden covered under Sec.   227.103.
                                               This section explains your options if you have a
                                                delegation agreement in effect on the effective date of
                                                this regulation..
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                                                                                                           (b) If you want to perform royalty management
                                                                                                             functions in addition to those authorized
                                                                                                              under your existing agreement, you must
                                                                                                           request a new delegation agreement under this
                                                                                                                               part.
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                                                                      Compensation
227.112(d)...................................  What compensation will a State receive to perform                       4          \1\ 84             336
                                                delegated functions?
                                               You will receive compensation for your costs to perform
                                                each delegated function subject to the following
                                                conditions. * * *
                                               (d) At a minimum, you must provide vouchers detailing
                                                your expenditures quarterly during the fiscal year.
                                                However, you may agree to provide vouchers on a monthly
                                                basis in your delegation agreement. * * *.
227.112(e)...................................  (e) You must maintain adequate books and records to         Hour burden covered under Sec.   227.200(d).
                                                support your vouchers. * * *
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                                                 States' Responsibilities to Perform Delegated Functions
227.200(a), (b), (c), and (d)................  What are a State's general responsibilities if it accepts             200              11           2,200
                                                a delegation?
                                               For each delegated function you perform, you must: (a) *
                                                * * seek information or guidance from MMS regarding new,
                                                complex, or unique issues. * * *.
                                               (b)(1) * * * Provide complete disclosure of financial
                                                results of activities;.
                                               (2) Maintain correct and accurate records of all mineral-
                                                related transactions and accounts;.
                                               (3) Maintain effective controls and accountability;......
                                               (4) Maintain a system of accounts. * * *.................

[[Page 39347]]

 
                                               (5) Maintain adequate royalty and production information.
                                                * * *
                                               (c) Assist MMS in meeting the requirements of the
                                                Government Performance and Results Act (GPRA). * * *.
                                               (d) Maintain all records you obtain or create under your
                                                delegated function, such as royalty reports, production
                                                reports, and other related information. * * * You must
                                                maintain such records for at least 7 years. * * *.
227.200(e)...................................  (e) Provide reports to MMS about your activities under                  3          \2\ 44             132
                                                your delegated functions. * * * At a minimum, you must
                                                provide periodic statistical reports to MMS summarizing
                                                the activities you carried out. * * *
227.200(f)...................................  (f) Assist MMS in maintaining adequate reference,                       1             250             250
                                                royalty, and production databases. * * *
227.200(h)...................................  (h) Help MMS respond to requests for information from                   8              10              80
                                                other Federal agencies, Congress, and the public * * *
227.200(g) and 227.301(e)....................  What are a State's general responsibilities if it accepts              60              11             660
Sec.   227.200...............................   a delegation?
                                               (g) Develop annual work plans. * * *.....................
                                               Sec.   227.301 What are a State's responsibilities if it
                                                performs audits?.
                                               If you perform audits you must * * * (e) Prepare and
                                                submit MMS Audit Work Plans. * * *.
227.400(a)(4) and (a)(6).....................  What functions may a State perform in processing                        1             250             250
                                                production reports or royalty reports?
                                               Production reporters or royalty reporters provide
                                                production, sales, and royalty information on mineral
                                                production from leases that must be collected, analyzed,
                                                and corrected..
                                               (a) If you request delegation of either production report
                                                or royalty report processing functions, you must perform
                                                * * *.
                                               (4) Timely transmitting production report or royalty
                                                report data to MMS and other affected Federal agencies.
                                                * * *.
                                               (6) Providing production data or royalty data to MMS and
                                                other affected Federal agencies. * * *
227.400(c)...................................  (c) You must provide MMS with a copy of any exceptions                  1              12              12
                                                from reporting and payment requirements for marginal
                                                properties and any alternative royalty and payment
                                                requirements for unit agreements and communitization
                                                agreements you approve.
227.401(d)...................................  What are a State's responsibilities if it processes        Hour burden covered under Sec.   227.400(a)(4)
                                                production reports or royalty reports?                                      and (a)(6).
                                               In processing production reports or royalty reports you
                                                must * * *.
                                               (d) Timely transmit required production or royalty data
                                                to MMS and other affected Federal agencies. * * *.
227.401(e)...................................  In processing production reports or royalty reports you     Hour burden covered under Sec.   227.200(f).
                                                must * * *
                                               (e) Access well, lease, agreement, and reporter reference
                                                data from MMS, and provide updated information to MMS. *
                                                * *.
227.501(c)...................................  What are a State's responsibilities to ensure that         Hour burden covered under Sec.   227.400(a)(4)
                                                reporters correct erroneous data?                                           and (a)(6).
                                               (c) Submit accepted and corrected lines to MMS to allow
                                                processing in a timely manner. * * *.
227.601(c)...................................  What are a State's responsibilities if it performs                      8              11              88
                                                automated verification?
                                               To perform automated verification of production reports
                                                or royalty reports, you must * * *.
                                               (c) Maintain all documentation and logging procedures. *
                                                * *.
227.601(d)...................................  (d) Access well, lease, agreement, and production           Hour burden covered under Sec.   227.200(f).
                                                reporter or royalty reporter reference data from MMS and
                                                provide updated information to MMS. * * *
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                                                                   Performance Review
--------------------------------------------------------------------------------------------------------------------------------------------------------
227.801(a)...................................  What if a State does not adequately perform a delegated     Hour burden covered under Sec.   227.200(e).
                                                function?
                                               If your performance of the delegated function does not
                                                comply with your delegation agreement * * *.
                                               (a) * * * You may ask MMS for an extension of time to
                                                comply with the notice. In your extension request you
                                                must explain why you need more time. * * *.
227.804......................................  How else may a State's delegation agreement terminate?      Hour burden covered under Sec.   227.200(e).
                                               You may request MMS to terminate your delegation at any
                                                time by submitting your written notice of intent 6
                                                months prior to the date on which you want to terminate.
                                                * * *.
227.805......................................  How may a State obtain a new delegation agreement after       Hour burden covered under Sec.   227.103.
                                                termination?
                                               After your delegation agreement is terminated, you may
                                                apply again for delegation by beginning with the
                                                proposal process. * * *.
--------------------------------------------------------------------------------------------------------------------------------------------------------

[[Page 39348]]

 
                                           Subtotal Burden for 30 CFR Part 227                                                       695           4,373
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                             Part 228--Cooperative Activities With States and Indian Tribes
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             Subpart C--Oil and Gas, Onshore
--------------------------------------------------------------------------------------------------------------------------------------------------------
228.100(a) and (b)...........................  Entering into an agreement...............................             200               1             200
                                               (a) * * * Indian tribe may request the Department to
                                                enter into a cooperative agreement by sending a letter
                                                from * * * tribal chairman * * * to the Director of MMS..
                                               (b) The request for an agreement shall be in a format
                                                prescribed by MMS and should include at a minimum the
                                                following information:.
                                               (1) Type of eligible activities to be undertaken.........
                                               (2) Proposed term of the agreement.......................
                                               (3) Evidence that * * * Indian tribe meets, or can meet
                                                by the time the agreement is in effect. * * *.
                                               (4) If the State is proposing to undertake activities on
                                                Indian lands located within the State, a resolution from
                                                the appropriate tribal council indicating their
                                                agreement to delegate to the State responsibilities
                                                under the terms of the cooperative agreement for
                                                activities to be conducted on tribal or allotted land..
228.101(a)...................................  Terms of agreement.......................................              15               7             105
                                               (a) Agreements entered into under this part shall be
                                                valid for a period of 3 years and shall be renewable * *
                                                * upon request of * * * Indian tribe. * * *.
228.101(c)...................................  (c) * * * Indian tribe may unilaterally terminate an        Hour burden covered under Sec.   228.100(a).
                                                agreement by giving a 120-day written notice of intent
                                                to terminate.
228.101(d)...................................  (d) * * * Indian tribe will be given 60 days to respond                80               1              80
                                                to the notice of deficiencies and to provide a plan for
                                                correction of those deficiencies. * * *
228.103(a) and (b)...........................  Maintenance of records...................................             120               7             840
                                               (a) * * * Indian tribe entering into a cooperative
                                                agreement under this part must retain all records,
                                                reports, working papers, and any backup materials. * * *.
                                               (b) * * * Indian tribe shall maintain all books and
                                                records. * * *.
228.105(a)(1) and (a)(2).....................  Funding of cooperative agreements........................              60               7             420
                                               (a)(1) The Department may, under the terms of the
                                                cooperative agreement, reimburse * * * Indian tribe up
                                                to 100 percent of the costs of eligible activities.
                                                Eligible activities will be agreed upon annually upon
                                                the submission and approval of a work plan and funding
                                                requirement..
                                               (2) A cooperative agreement may be entered into with * *
                                                * Indian tribe, upon request, without a requirement for
                                                reimbursement of costs by the Department..
228.105(c)...................................  (c) * * * Indian tribe shall submit a voucher for                       4           \3\40             160
                                                reimbursement of eligible costs incurred within 30 days
                                                of the end of each calendar quarter. * * * Indian tribe
                                                must provide the Department a summary of costs incurred,
                                                for which * * * Indian tribe is seeking reimbursement,
                                                with the voucher.
228.107(b)...................................  Eligible cost of activities..............................    Hour burden covered under Sec.   228.100(a)
                                               (b) * * * Each cooperative agreement shall contain                            and (b).
                                                detailed schedules identifying those activities and
                                                costs which qualify for funding and the procedures,
                                                timing, and mechanics for implementing Federal funding..
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[[Page 39349]]

 
                                           Subtotal Burden for 30 CFR Part 228                                                        63           1,805
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                                                             PART 229--Delegation to States
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             Subpart C--Oil and Gas, Onshore
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              Administration of Delegations
--------------------------------------------------------------------------------------------------------------------------------------------------------
229.100(a)(1) and (a)(2).....................  Authorities and responsibilities subject to delegation...               1               1               1
                                               (a) All or part of the following authorities and
                                                responsibilities of the Secretary under the Act may be
                                                delegated to a State authority:.
                                               (1) Conduct of audits related to oil and gas royalty
                                                payments made to the MMS which are attributable to
                                                leased * * * Indian lands within the State. Delegations
                                                with respect to any Indian lands require the written
                                                permission, subject to the review of the MMS, of the
                                                affected Indian tribe or allottee..
                                               (2) Conduct of investigation related to oil and gas
                                                royalty payments made to the MMS which are attributable
                                                to * * * Indian lands within the State. Delegation with
                                                respect to any Indian lands require the written
                                                permission, subject to the review of the MMS, of the
                                                affected Indian tribe or allottee. No investigation will
                                                be initiated without the specific approval of the MMS. *
                                                * *.
229.101(a) and (d)...........................  Petition for delegation..................................               1               1               1
                                               (a) The governor or other authorized official of any
                                                State which contains * * * Indian oil and gas leases
                                                where the Indian tribe and allottees have given the
                                                State an affirmative indication of their desire for the
                                                State to undertake certain royalty management-related
                                                activities on their lands, may petition the Secretary to
                                                assume responsibilities to conduct audits and related
                                                investigations of royalty related matters affecting * *
                                                * Indian oil and gas leases within the State..
                                               (d) In the event that the Secretary denies the petition,
                                                the Secretary must provide the State with the specific
                                                reasons for denial of the petition. The State will then
                                                have 60 days to either contest or correct specific
                                                deficiencies and to reapply for a delegation of
                                                authority..
229.102(c)...................................  Fact-finding and hearings................................               1               1               1
                                               (c) A State petitioning for a delegation of authority
                                                shall be given the opportunity to present testimony at a
                                                public hearing..
229.103(c)...................................  Duration of delegations; termination of delegations......               1               1               1
                                               (c) A State may terminate a delegation of authority by
                                                giving a 120-day written notice of intent to terminate..
229.105......................................  Evidence of Indian agreement to delegation...............               1               1               1
                                               In the case of a State seeking a delegation of authority
                                                for Indian lands * * * the State petition to the
                                                Secretary must be supported by an appropriate resolution
                                                or resolutions of tribal councils joining the State in
                                                petitioning for delegation and evidence of the agreement
                                                of individual Indian allottees whose lands would be
                                                involved in a delegation. Such evidence shall
                                                specifically speak to having the State assume delegated
                                                responsibility for specific functions related to royalty
                                                management activities..
229.106......................................  Withdrawal of Indian lands from delegated authority......               1               1               1
                                               If at any time an Indian tribe or an individual Indian
                                                allottee determines that it wishes to withdraw from the
                                                State delegation of authority in relation to its lands,
                                                it may do so by sending a petition of withdrawal to the
                                                State. * * *.
229.109(a)...................................  Reimbursement for costs incurred by a State under the                   1               1               1
                                                delegation of authority.
                                               (a) The Department of the Interior (DOI) shall reimburse
                                                the State for 100 percent of the direct cost associated
                                                with the activities undertaken under the delegation of
                                                authority. The State shall maintain books and records in
                                                accordance with the standards established by the DOI and
                                                will provide the DOI, on a quarterly basis, a summary of
                                                costs incurred. * * *.
229.109(b)...................................  (b) The State shall submit a voucher for reimbursement of               1               1               1
                                                costs incurred within 30 days of the end of each
                                                calendar quarter.
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[[Page 39350]]

 
                                                                 Delegation Requirements
--------------------------------------------------------------------------------------------------------------------------------------------------------
229.120......................................  Obtaining regulatory and policy guidance.................               1               1               1
                                               All activities performed by a State under a delegation
                                                must be in full accord with all Federal laws, rules and
                                                regulations, and Secretarial and agency determinations
                                                and orders relating to the calculation, reporting, and
                                                payment of oil and gas royalties. In those cases when
                                                guidance or interpretations are necessary, the State
                                                will direct written requests for such guidance or
                                                interpretation to the appropriate MMS officials.* * *.
229.121(a), (b), (c), and (d)................  Recordkeeping requirements...............................               1               1               1
                                               (a) The State shall maintain in a safe and secure manner
                                                all records, workpapers, reports, and correspondence
                                                gained or developed as a consequence of audit or
                                                investigative activities conducted under the delegation.
                                                * * *.
                                               (b) The State must maintain in a confidential manner all
                                                data obtained from DOI sources or from payor or company
                                                sources under the delegation. * * *.
                                               (c) All records subject to the requirements of paragraph
                                                (a) must be maintained for a 6-year period measured from
                                                the end of the calendar year in which the records were
                                                created. * * * Upon termination of a delegation, the
                                                State shall, within 90 days from the date of
                                                termination, assemble all records specified in
                                                subsection (a), complete all working paper files in
                                                accordance with 229.124, and transfer such records to
                                                the MMS..
                                               (d) The State shall maintain complete cost records for
                                                the delegation in accordance with generally accepted
                                                accounting principles.* * *.
229.122(a), (b), and (c).....................  Coordination of audit activities.........................               1               1               1
                                               (a) Each State with a delegation of authority shall
                                                submit annually to the MMS an audit workplan
                                                specifically identifying leases, resources, companies,
                                                and payors scheduled for audit. * * * A State may
                                                request changes to its workplan * * * at the end of each
                                                quarter of each fiscal year. All requested changes are
                                                subject to approval by the MMS and must be submitted in
                                                writing..
                                               (b) When a State plans to audit leases of a lessee or
                                                royalty payor for which there is an MMS or OIG resident
                                                audit team, all audit activities must be coordinated
                                                through the MMS or OIG resident supervisor. * * *.
                                               (c) The State shall consult with the MMS and/or OIG
                                                regarding resolution of any coordination problems
                                                encountered during the conduct of delegation activities..
229.123(b)(3)(i).............................  Standards for audit activities...........................               1               1               1
                                               (b)(3) Standards of reporting. (i) Written audit reports
                                                are to be submitted to the appropriate MMS officials at
                                                the end of each field examination..
229.124......................................  Documentation standards..................................               1               1               1
                                               Every audit performed by a State under a delegation of
                                                authority must meet certain documentation standards. In
                                                particular, detailed workpapers must be developed and
                                                maintained..
229.125(a) and (b)...........................  Preparation and issuance of enforcement documents........               1               1               1
                                               (a) Determinations of additional royalties due resulting
                                                from audit activities conducted under a delegation of
                                                authority must be formally communicated by the State, to
                                                the companies or other payors by an issue letter prior
                                                to any enforcement action. * * *.
                                               (b) After evaluating the company or payor's response to
                                                the issue letter, the State shall draft a demand letter
                                                which will be submitted with supporting workpaper files
                                                to the MMS for appropriate enforcement action. Any
                                                substantive revisions to the demand letter will be
                                                discussed with the State prior to issuance of the
                                                letter.* * *.
229.126(a) and (b)...........................  Appeals..................................................               1               1               1
                                               (a) * * * The State regulatory authority shall, upon the
                                                request of the MMS, provide competent and knowledgeable
                                                staff for testimony, as well as any required
                                                documentation and analyses, in support of the lessor's
                                                position during the appeal process..
                                               (b) An affected State, upon the request of the MMS, shall
                                                provide expert witnesses from their audit staff for
                                                testimony as well as required documentation and analyses
                                                to support the Department's position during the
                                                litigation of court cases arising from denied appeals. *
                                                * *.

[[Page 39351]]

 
229.127......................................  Reports from States......................................               1               1               1
                                               The State, acting under the authority of the Secretarial
                                                delegation, shall submit quarterly reports which will
                                                summarize activities carried out by the State during the
                                                preceding quarter of the year under the provisions of
                                                the delegation. * * *.
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                                           Subtotal Burden for 30 CFR Part 229                                                        16              16
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total Burden............................................................................................................             774           6,194
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Note: 5 states x 12 monthly vouchers = 60 and 6 states x 4 quarterly vouchers = 24
\2\ Note: 4 quarterly reports x 11 states = 44
\3\ Note: 1 tribe x 12 monthly vouchers = 12 and 7 tribes x 4 quarterly vouchers = 28

    Estimated Annual Reporting and Recordkeeping ``Non-hour'' Cost 
Burden:
    Due to more current information, we have identified no ``non-hour 
cost'' burden for this information collection.
    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 October 25, 2005 (70 FR 61631), 
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 
August 11, 2006.
    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 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 7, 2006.
Lucy Querques Denett,
Associate Director for Minerals Revenue Management.
[FR Doc. E6-10884 Filed 7-11-06; 8:45 am]
BILLING CODE 4310-MR-P