[Federal Register Volume 71, Number 169 (Thursday, August 31, 2006)]
[Rules and Regulations]
[Pages 51749-51752]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-14368]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Parts 218, 241, and 290

RIN 1010-AD22


Service of Official Correspondence

AGENCY: Minerals Management Service, Interior.

ACTION: Final rule.

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SUMMARY: This rule will establish updated procedures for businesses to 
use when supplying the Minerals Management Service (MMS) with their 
control information. Because the existing rule contains obsolete 
procedures, MMS is not receiving updated contact information that it 
needs to be able to send important correspondence to companies.

DATES: Effective Date: November 29, 2006.

FOR FURTHER INFORMATION CONTACT: Sharron L. Gebhardt, Lead Regulatory 
Specialist, MRM, MMS, P.O. Box 25165, MS 302B2, Denver, Colorado 80225; 
telephone (303) 231-3211; FAX (303) 231-3781; e-mail 
[email protected]. The principal authors of this rule are Linda 
Lautigar and Lorraine Corona, Department of the Interior, MMS, MRM.

SUPPLEMENTARY INFORMATION:

I. Explanation of Rule Amendments

    The MMS is amending existing regulations at 30 CFR parts 218, 241, 
and 290:
     To reflect current program procedures, such as appeal 
procedure information;
     To remove references to Forms MMS-4025, Oil and Gas Payor 
Information Form, and MMS-4030, Payor Information Form--Solid Minerals; 
and
     To revise nomenclature, such as replacing references to 
``Royalty Management Program'' with ``Minerals Revenue Management'' or 
its abbreviation, MRM.
    This rule will make the following changes:
     The titles of subchapter A and part 218 are revised.
     In part 218, subpart H--Service of Official Correspondence 
is added. In subpart B, section 290.111 is removed. (It is replaced by 
the new 218, subpart H--Service of Official Correspondence.) Subpart H 
revises addressee of record reporting requirements (currently found at 
30 CFR 290.111) and requires companies to submit information 
designating a specific addressee of record for service of official 
correspondence on Form MMS-4444, Addressee of Record Designation for 
Service of Official Correspondence, rather than on forms no longer 
used. During the reengineering effort, MRM eliminated Forms MMS-4025 
and MMS-4030, each of which contained addressee of record information, 
along with information no longer required. However, MRM still requires 
the addressee of record information, which is now submitted on Form 
MMS-4444 available at the MMS Web site http://www.mrm.mms.gov/ReportingServices/RepServhome.htm. This section also clarifies to whom 
the Form MMS-4444 is mailed.
     In part 241--Penalties, subpart B--Penalties for Federal 
and Indian Oil and Gas Leases, Sec. Sec.  241.51 and 241.61 are revised 
in their entirety to conform with the addressee of record changes in 
parts 218 and 290.
    In part 290--Appeal Procedures:
     The title of subpart B is changed from ``Appeals of 
Royalty Management Program and Delegated State Orders'' to ``Minerals 
Revenue Management Appeal Procedures;'' and
     Subpart B is amended to reflect current nomenclature and 
business practices.
    Generally, the amendments to this rule are clear and self-
explanatory and do not require additional information. However, we 
believe additional clarification is helpful regarding the request for 
contact information.
    When MMS reengineered the financial system of the MRM program, one 
piece of the reengineering effort eliminated Forms MMS-4025 and MMS-
4030, each of which contained addressee of record information. This 
rulemaking revises the previous addressee of record reporting 
requirements and removes current references to Forms MMS-4025 and MMS-
4030. To collect the identifying information of ``changes of address'' 
for the addressee of record, MMS will use Form MMS-4444.

II. Procedural Matters

1. Public Comment Policy

    Under the Administrative Procedure Act, 5 U.S.C. 553(b)(B), 
publication of a proposed rule and an opportunity for public comment 
are required before an agency promulgates a rule, except when the 
agency for good cause finds that notice and public comment are 
impracticable, unnecessary, or contrary to the public interest. This 
rule is purely clerical in nature. It simply updates procedures for 
providing contact and address information to MMS for service of 
official correspondence, revises existing MMS procedures to conform 
with those changes, eliminates references to forms that are no longer 
used, and revises nomenclature to reflect current organization names. 
Therefore, MMS has determined that notice and public comment are 
unnecessary.

2. Regulatory Planning and Review, Executive Order 12866

    In accordance with the criteria in Executive Order 12866, this rule 
is not

[[Page 51750]]

a significant regulatory action. The Office of Management and Budget 
(OMB) makes the final determination under Executive Order 12866.
    a. This rule does not have an annual economic effect of $100 
million or adversely affect an economic sector, productivity, jobs, the 
environment, or other units of government. A cost-benefit and economic 
analysis is not required. This rule is a simple technical amendment 
requiring contact information necessary in the normal course of 
business. It does not have an annual economic effect of $100 million or 
adversely affect an economic sector, productivity, jobs, the 
environment, or other units of government; and as such, a cost-benefit 
and economic analysis are not required. This rule provides a 
straightforward method to provide necessary contact information which 
is used in the normal course of usual and customary business practices.
    b. This rule does not create inconsistencies with other agencies' 
actions. No other agency collects this particular contact information.
    c. This rule does not materially affect entitlements, grants, user 
fees, loan programs, or the rights and obligations of their recipients. 
This rule is a technical amendment that only requires the submission of 
business contact information and has no further implications.
    d. This rule does not raise novel legal or policy issues.

3. Regulatory Flexibility Act

    The Department of the Interior certifies that this document will 
not have a significant economic effect on a substantial number of small 
entities under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.).
    Your comments are important. The Small Business and Agricultural 
Regulatory Enforcement Ombudsman and 10 Regional Fairness Boards were 
established to receive comments from small businesses about Federal 
agency enforcement actions. The Ombudsman will annually evaluate the 
enforcement activities and rate each agency's responsiveness to small 
business. You may comment to the Small Business Administration without 
fear of retaliation. Disciplinary action for retaliation by an MMS 
employee may include suspension or termination from employment with the 
Department of the Interior.

4. Small Business Regulatory Enforcement Fairness Act

    This rule is not a major rule under 5 U.S.C. 804(2), the Small 
Business Regulatory Enforcement Fairness Act. This rule:
    a. Does not have an annual effect on the economy of $100 million or 
more.
    b. Does not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions.
    c. Does not have significant adverse effects on competition, 
employment, investment, productivity, innovation, or the ability of 
U.S.-based enterprises to compete with foreign-based enterprises.

5. Unfunded Mandates Reform Act

    In accordance with the Unfunded Mandates Reform Act (2 U.S.C. 1501 
et seq.):
    a. This rule does not ``significantly or uniquely'' affect small 
governments. Therefore, a Small Government Agency Plan is not required.
    b. This rule does not produce a Federal mandate of $100 million or 
greater in any year; i.e., it is not a ``significant regulatory 
action'' under the Unfunded Mandates Reform Act.

6. Governmental Actions and Interference With Constitutionally 
Protected Property Rights (Takings), Executive Order 12630

    In accordance with Executive Order 12630, this rule does not have 
significant takings implications. A takings implication assessment is 
not required.

7. Federalism, Executive Order 13132

    In accordance with Executive Order 13132, this rule does not have 
federalism implications. A federalism summary impact statement is not 
required. It will not substantially and directly affect the 
relationship between Federal and State governments. The management of 
Federal leases is the responsibility of the Secretary of the Department 
of the Interior. Royalties collected from Federal leases are shared 
with state governments on a percentage basis as prescribed by law. This 
rule does not alter any lease management or royalty-sharing provisions. 
This rule does not impose costs on states or localities.

8. Civil Justice Reform, Executive Order 12988

    In accordance with Executive Order 12988, the Office of the 
Solicitor has determined that this rule does not unduly burden the 
judicial system and meets the requirements of Sec. Sec.  3(a) and 
3(b)(2) of the Order.

9. Paperwork Reduction Act of 1995

    This rulemaking:
     Does not contain a current information collection, as 
defined by the Paperwork Reduction Act of 1995 (PRA);
     Does not change existing information collections; 
therefore, a submission to OMB is not needed; and
     Does not require a new information collection, based on 
the following exception in the regulations implementing the PRA at 5 
CFR 1320.3(h):

    ``Information'' does not generally include items in the 
following categories; however, OMB may determine that any specific 
item constitutes ``information'': (1) Affidavits, oaths, 
affirmations, certifications, receipts, changes of address, consents 
or acknowledgments; provided that they entail no burden other than 
that necessary to identify the respondent, the date, the 
respondent's address, and the nature of the instrument * * * 
[Emphasis added.]

    To collect the identifying information of ``changes of address'' 
for the addressee of record, MMS will use Form MMS-4444.

10. National Environmental Policy Act

    This rule does not constitute a major Federal action significantly 
affecting the quality of the human environment. This rule deals with 
financial matters and has no direct effect on MMS decisions on 
environmental activities. According to Departmental Manual 516 DM 2.3A 
(2), Section 1.10 of 516 DM 2, Appendix 1 excludes from documentation 
in an environmental assessment or impact statement ``policies, 
directives, regulations and guidelines of an administrative, financial, 
legal, technical or procedural nature; or the environmental effects of 
which are too broad, speculative or conjectural to lend themselves to 
meaningful analysis and will be subject later to the NEPA process, 
either collectively or case-by-case.'' Section 1.3 of the same appendix 
clarifies that royalties and audits are considered to be routine 
financial transactions that are subject to categorical exclusion from 
the NEPA process. A detailed statement is not required because none of 
the NEPA exceptions apply.

11. Consultation With Indian Tribes (E.O. 13175)

    Under the criteria in Executive Order 13175, we have evaluated this 
rule and determined that it has no potential effects on federally 
recognized Indian tribes.

12. Effects on the Nation's Energy Supply, Distribution, or Use, 
Executive Order 13211

    In accordance with Executive Order 13211, this regulation does not 
have a

[[Page 51751]]

significant adverse effect on the Nation's energy supply, distribution, 
or use. The primary purpose of this rule is to revise an existing rule 
regarding routine MMS operating business practices.

13. Government-to-Government Relationship With Tribes

    In accordance with the President's memorandum of April 29, 1994, 
``Government-to-Government Relations with Native American Tribal 
Governments'' (59 FR 22951) and 512 DM 2, we have evaluated potential 
effects on federally recognized Indian tribes and have determined that 
there are no potential effects.

List of Subjects in 30 CFR Parts 218, 241, and 290

    Appeals, Official correspondence, Orders, Addressee of record, 
Notice of noncompliance, Notice of civil penalties.

    Dated: August 15, 2006.
R.M. ``Johnnie'' Burton,
Acting Assistant Secretary for Land and Minerals Management.

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For the reasons set forth in the preamble, subchapter A chapter II of 
title 30 of the Code of Federal Regulations is amended as follows:

CHAPTER II--MINERALS MANAGEMENT SERVICE, DEPARTMENT OF THE INTERIOR

Subchapter A--Minerals Revenue Management

0
1. Revise the heading for subchapter A to read as set forth above.

PART 218--COLLECTION OF ROYALTIES, RENTALS, BONUSES, AND OTHER 
MONIES DUE THE FEDERAL GOVERNMENT

0
2. The authority for part 218 continues to read as follows:

    Authority: 25 U.S.C. 396 et seq., 396a et seq., 2101 et seq.; 30 
U.S.C 181 et seq., 351 et seq., 1001 et seq., 1701 et seq.; 31 
U.S.C. 3335; 43 U.S.C. 1301 et seq., 1331 et seq., and 1801 et seq.


0
3. Add a new subpart H to read as follows:

Subpart H--Service of Official Correspondence

Sec.
218.500 What is the purpose of this subpart?
218.520 What definitions apply to this subpart?
218.540 How does MMS serve official correspondence?
218.560 How do I submit Form MMS-4444?
218.580 When do I submit Form MMS-4444?


Sec.  218.500  What is the purpose of this subpart?

    This subpart contains instructions for designating a specific 
addressee of record for service of official correspondence using Form 
MMS-4444, Addressee of Record Designation for Service of Official 
Correspondence.


Sec.  218.520  What definitions apply to this subpart?

    Address of record is the address to which official correspondence 
is served.
    Addressee of record for service of official correspondence is the 
person or position to whom official correspondence is served, as 
specified on Form MMS-4444, or in the absence of such a form, as 
established in Sec.  218.540(b)(2). The addressee of record in a part 
290, subpart B, appeal will be the person or representative making the 
appeal.
    Official correspondence is all correspondence from MMS or our 
delegates, served on companies related to matters such as: forms 
reporting, audit and compliance, enforcement notices, rental courtesy 
notices, and invoices.


Sec.  218.540  How does MMS serve official correspondence?

    MMS will serve all Notices of Noncompliance or Civil Penalty 
following the procedures in part 241. We will serve all other documents 
following the procedures in this section.
    (a) Method of Service. MMS will serve all official correspondence 
to the addressee of record by one of the following methods:
    (1) U.S. Postal Service mail;
    (2) Personal delivery made pursuant to the law of the State in 
which the service is effected; or
    (3) Private mailing service (e.g., United Parcel Service, or 
Federal Express), with signature and date upon delivery, acknowledging 
the addressee of record's receipt of the official correspondence 
document.
    (b) Selection of addressee of record information. (1) We will 
address official correspondence to the party shown on the most recently 
received Form MMS-4444 for the type of correspondence at issue. The 
company or reporting entity is responsible for notifying MMS of any 
name or address changes on Form MMS-4444. The addressee of record in a 
part 290, subpart B, appeal will be the person or representative making 
the appeal.
    (2) If we do not receive addressee of record information from you 
on Form MMS-4444, we may use the individual name and address, position 
title, or department name and address in our database, based on 
previous formal or informal communications or correspondence for the 
type of official correspondence at issue. Alternately, we may obtain 
contact information from public records and send correspondence to:
    (i) The registered agent;
    (ii) Any corporate officer; or
    (iii) The addressee of record shown in the files of any State 
Secretary; Corporate Commission; Federal or state agency that keeps 
official records of business entities or corporations; or other 
appropriate public records for individuals, business entities, or 
corporations.
    (c) Dates of service. Except as provided in paragraph (d) of this 
section, MMS considers official correspondence as served on the date 
that it is received at the address of record. A receipt, signed and 
dated by any person at that address, is evidence of service and of the 
date of service. If official correspondence is served in more than one 
manner and the dates differ, the date of the earliest service is 
used[smc1].
    (d) Constructive service. If we cannot make delivery to the 
addressee of record after making a reasonable effort, we deem official 
correspondence as constructively served 7 days after the date that we 
mail the document. This provision covers situations such as those where 
no delivery occurs because:
    (1) The addressee of record has moved without filing a forwarding 
address;
    (2) The forwarding order has expired;
    (3) Delivery was expressly refused; or
    (4) The document was unclaimed and the attempt to deliver is 
substantiated by either:
    (i) The U.S. Postal Service;
    (ii) A private mailing service, as described in this section; or
    (iii) The person who attempted to make delivery using some other 
method of service.


Sec.  218.560  How do I submit Form MMS-4444?

    A copy of Form MMS-4444 and instructions may be obtained from MMS. 
It will also be posted on the MMS Web site. Submit the completed, 
signed form to the address designated on the Form MMS-4444 
instructions.


Sec.  218.580  When do I submit Form MMS-4444?

    Initially, you must submit MMS Form-4444 by November 29, 2006, and 
subsequently, within 2 weeks of any change of your address.

[[Page 51752]]

PART 241--PENALTIES

Subpart B--Penalties for Federal and Indian Oil and Gas Leases

0
4. The authority for part 241 continues to read as follows:

    Authority: 25 U.S.C. 396 et seq., 396a et seq., 2101 et seq.; 30 
U.S.C. 181 et seq., 351 et seq., 1001 et seq., 1701 et seq.; 43 
U.S.C. 1301 et seq., 1331 et seq., and 1801 et seq.


0
5. In Sec.  241.51, remove paragraph (c) and revise paragraph (b) to 
read as follows:


Sec.  241.51  What may MMS do if I violate a statute, regulation, 
order, or lease term relating to a Federal or Indian oil and gas lease?

* * * * *
    (b) We will serve the Notice of Noncompliance by registered mail or 
personal service using your address of record as specified under 
subpart H of part 218.

0
6. Revise Sec.  241.61 to read as follows:


Sec.  241.61  How will MMS inform me of violations without a period to 
correct?

    We will inform you of any violation, without a period to correct, 
by issuing a Notice of Noncompliance and Civil Penalty explaining the 
violation, how to correct it, and the penalty assessment. We will serve 
the Notice of Noncompliance and Civil Penalty by registered mail or 
personal service using your address of record as specified under 
subpart H of part 218.

Subchapter C--Appeals

PART 290--APPEAL PROCEDURES

0
7. The authority citation for part 290 is revised to read as follows:

    Authority: 5 U.S.C. 301 et seq.; 25 U.S.C. 396, 396a-396g, 2107; 
30 U.S.C. 189, 190, 359, 1023, 1701 et seq., 1751(a); 31 U.S.C. 
3716, 9701; 43 U.S.C. 1334, 1801 et seq.; and 44 U.S.C. 3506(a).

Subpart B--Minerals Revenue Management Appeal Procedures

0
8. The heading for subpart B is revised to read as set forth above.

0
9. Section 290.100 is revised to read as follows:


Sec.  290.100  What is the purpose of this subpart?

    This subpart tells you how to appeal Minerals Management Service 
(MMS) or delegated State orders concerning reporting to the Minerals 
Revenue Management (MRM) and the payment of royalties and other 
payments due under leases subject to this subpart.

0
10. In Sec.  290.102, in the introductory text of the definition of 
``order,'' the first sentence is revised to read as follows:


Sec.  290.102  What definitions apply to this subpart?

* * * * *
    Order, for purposes of this subpart only, means any document issued 
by the MMS Director, MMS MRM, or a delegated state that contains 
mandatory[smc2] or ordering language that requires the 
recipient to do any of the following for any lease subject to this 
subpart: report, compute, or pay royalties or other obligations, report 
production, or provide other information. * * *
* * * * *


Sec.  290.111  [Removed]

0
11. Section 290.111 is removed.

[FR Doc. E6-14368 Filed 8-30-06; 8:45 am]
BILLING CODE 4310-MR-P