[Federal Register Volume 71, Number 223 (Monday, November 20, 2006)]
[Notices]
[Pages 67155-67158]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-19514]


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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 an information collection (1010-0071).

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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 203, ``Relief or 
Reduction in Royalty Rates.'' This notice also provides the public a 
second opportunity to comment on the paperwork burden of these 
regulatory requirements.

DATES: Submit written comments by December 20, 2006.

ADDRESSES: You may submit comments on this information collection 
directly to the Office of Management and Budget (OMB), Office of 
Information and Regulatory Affairs, OMB, Attention: Desk Officer for 
the Department of the Interior via OMB e-mail: ([email protected]); or by fax (202) 395-6566; identify with (1010-
0071).
    Submit a copy of your comments to the Department of the Interior, 
MMS, via:
     MMS's Public Connect on-line commenting system, https://ocsconnect.mms.gov. Follow the instructions on the Web site for 
submitting comments.
     E-mail MMS at [email protected]. Use Information 
Collection Number 1010-0071 in the subject line.
     Fax: 703-787-1093. Identify with Information Collection 
Number 1010-0071.
     Mail or hand-carry comments to the Department of the 
Interior, Minerals Management Service, Attention: Rules Processing Team 
(RPT), 381 Elden Street, MS-4024, Herndon, Virginia 20170-4817. Please 
reference ``Information Collection 1010-0071'' in your comments.

FOR FURTHER INFORMATION CONTACT: Cheryl Blundon, Rules Processing Team, 
(703) 787-1600. You may also contact Cheryl Blundon to obtain a copy, 
at no cost, of the ICR and regulations that require the subject 
collection of information.

SUPPLEMENTARY INFORMATION:
    Title: 30 CFR part 203, ``Relief or Reduction in Royalty Rates.''
    OMB Control Number: 1010-0071.
    Abstract: The Outer Continental Shelf (OCS) Lands Act, as amended 
by Public Law 104-58, Deep Water Royalty Relief Act (DWRRA), gives the 
Secretary of the Interior (Secretary) the authority to reduce or 
eliminate royalty or any net profit share specified in OCS oil and gas 
leases to promote increased production. The DWRRA also authorized the 
Secretary to suspend royalties when necessary to promote development or 
recovery of marginal resources on producing or non-producing leases in 
the Gulf of Mexico (GOM) west of 87 degrees, 30 minutes West longitude.
    Section 302 of the DWRRA provides that new production from a lease 
in existence on November 28, 1995, in a water depth of at least 200 
meters, and in the GOM west of 87 degrees, 30 minutes West longitude 
qualifies for royalty suspension in certain situations. To grant a 
royalty suspension, the Secretary must determine that the new 
production or development would not be economic in the absence of 
royalty relief. The Secretary must then determine the volume of 
production on

[[Page 67156]]

which no royalty would be due in order to make the new production from 
the lease economically viable. This determination is done on a case-by-
case basis. Production from leases in the same water depth and area 
issued after November 28, 2000, also can qualify for royalty suspension 
in addition to any that may be included in their lease terms.
    In addition, Federal policy and statute require us to recover the 
cost of services that confer special benefits to identifiable non-
Federal recipients. The Independent Offices Appropriation Act (31 
U.S.C. 9701), Office of Management and Budget (OMB) Circular A-25, and 
the Omnibus Appropriations Bill (Pub. L. 104-133 110 Stat. 1321, April 
26, 1996) authorize the Minerals Management Service (MMS) to collect 
these fees to reimburse us for the cost to process applications or 
assessments.
    Regulations at 30 CFR part 203 implement these statutes and policy 
and require respondents to pay a fee to request royalty relief. Section 
203.3 states that, ``We will specify the necessary fees for each of the 
types of royalty-relief applications and possible MMS audits in a 
Notice to Lessees. We will periodically update the fees to reflect 
changes in costs as well as provide other information necessary to 
administer royalty relief.''
    The MMS use the information to make decisions on the economic 
viability of leases requesting a suspension or elimination of royalty 
or net profit share. These decisions have enormous monetary impacts to 
both the lessee and the Federal Government. Royalty relief can lead to 
increased production of natural gas and oil, creating profits for 
lessees and royalty and tax revenues for the government that they might 
not otherwise receive. We could not make an informed decision without 
the collection of information required by 30 CFR part 203.
    We will protect information from respondents considered proprietary 
according to 30 CFR parts 203.6(b) and 250, and the Freedom of 
Information Act (5 U.S.C. 552) and its implementing regulations (43 CFR 
part 2). No items of a sensitive nature are collected. Responses are 
required to obtain a benefit.
    Frequency: On occasion.
    Estimated Number and Description of Respondents: Approximately 130 
Federal OCS oil and gas lessees.
    Estimated Reporting and Recordkeeping ``Hour'' Burden: The 
estimated annual ``hour'' burden for this information collection is a 
total of 4,721 hours. The following chart details the individual 
components and estimated hour burdens. In calculating the burdens, we 
assumed that respondents perform certain requirements in the normal 
course of their activities. We consider these to be usual and customary 
and took that into account in estimating the burden.

----------------------------------------------------------------------------------------------------------------
                                    Reporting or                           Application fees
                                   recordkeeping     -----------------------------------------------------------
     Citation 30 CFR 203         requirement 30 CFR     Hour     Average number of annual
                                      part 203         burden           responses            Annual burden hours
----------------------------------------------------------------------------------------------------------------
43(a); 46(a).................  Notify MMS of intent         1  45                           45
                                to begin drilling.
43(b)(1), (2), (d), (e)......  Notify MMS that              2  15                           30
                                production has
                                begun, request
                                extension, request
                                confirmation of the
                                size of RSV.
46...........................  Provide data from            8  10                           80
                                well to confirm and
                                attest well drilled
                                was an unsuccessful
                                certified well and
                                request supplement.
51; 83; 84...................  Application--leases        100  1 Application every 3 years  34 (rounded)
                                that generate
                                earnings that cannot
                                sustain continued
                                production (end-of-
                                life lease).
                                                            Application \1/3\ x $8,000 = $2,667 (rounded)*
                                                               Audit \1/3\ x $12,500 = $4,167 (rounded)
55...........................  Renounce relief              1  1 Letter every 3 years       1 (rounded)
                                arrangement (end-of-
                                life) (seldom, if
                                ever will be used;
                                minimal burden to
                                prepare letter).
61; 62; 64; 65; 71; 83; 85-89  Application--leases      2,000  1 Application every 3 years  667 (rounded)
                                in designated areas
                                of GOM deep water
                                acquired in lease
                                sale before 11/28/95
                                or after 11/28/00
                                and are producing
                                (deep water
                                expansion project).
                                                                 Application \1/3\ x $19,500 = $6,500
61; 62; 64; 65; 203.71;        Application--leases      2,000  1 Application every 3 years  667 (rounded)
 203.83; 203.85-89.             in designated areas
                                of deep water GOM,
                                acquired in lease
                                sale before 11/28/95
                                or after 11/28/00,
                                that have not
                                produced (pre-act or
                                post-2000 deep water
                                leases).
                                                           Application \1/3\ x $34,000 = $11,334 (rounded)*
                                                                    Audit \1/3\ x $37,500 = $12,500
61; 62; 64; 65; 71; 83; 85-89  Application--preview       900  1 Application every 3 years  300
                                assessment (seldom
                                if ever will be used
                                as applicants
                                generally opt for
                                binding
                                determination by MMS
                                instead).
                                                            Application \1/3\ x $34,000 = $11,334 (rounded)
74; 75.......................  Redetermination......      500  1 Redetermination every 3    167 (rounded)
                                                                years
                                                            Application \1/3\ x $16,000 = $5,334 (rounded)*
70; 81; 90; 91...............  Submit fabricator's         20  1 Report every 3 years       7 (rounded)
                                confirmation report.
70; 81; 90; 92...............  Submit post-                50  1 Report* every 3 years      17 (rounded)
                                production
                                development report.
70; 79(a)....................  Request                    400  1 Request every 3 years      134 (rounded)
                                reconsideration of
                                MMS field
                                designation.

[[Page 67157]]

 
77...........................  Renounce relief              1  1 Letter every 3 years       1 (rounded)
                                arrangement (deep
                                water) (seldom, if
                                ever will be used;
                                minimal burden to
                                prepare letter).
79(c)........................  Request extension of         2  1 Request every 3 years      1 (rounded)
                                deadline to start
                                construction.
80...........................  Application--apart         250  2 applications               500
                                from formal programs
                                for royalty relief
                                for marginal
                                producing lease
                                (Special Case
                                Relief).
                                                                  Application 2 x $8,000** = $16,000
                                                                      Audit 1 x $10,000 = $10,000
80...........................  Application--apart         GOM  2 Applications               2000
                                from formal programs    1,000
                                for royalty relief
                                for marginal
                                expansion project or
                                marginal non-
                                producing lease
                                (Special Case
                                Relief).
                                                                  Application 2 x $19,500** = $39,000
                                                                      Audit 1 x $20,000 = $20,000
                                                      POCS 40  1 Application                40
                                                                  Application 1 x $6,500*** = $6,500
81; 83-89....................  Required reports.....    Burden included with applications   0
83...........................  Application--short          40  1 Application every 3 years  14 (rounded)
                                form to add or
                                assign pre-Act lease.
                                                              Application \1/3\ x $1,000 = $334 (rounded)
91...........................  Retain supporting            8  2 Recordkeepers              16
                                cost records for
                                post-production
                                development/
                                fabrication reports
                                (records retained as
                                usual/customary
                                business practice;
                                minimal burden to
                                make available at
                                MMS request).
    Total Annual Burden......                         .......  89 Responses                 4,721 Hours
                                                                         Total Fees = $145,670
----------------------------------------------------------------------------------------------------------------

    Estimated Reporting and Recordkeeping ``Non-Hour Cost'' Burden: 
There are two non-hour costs associated with this information 
collection. The estimated non-hour cost burden is $280,670. This 
estimate is based on:
    (a) Application and audit fees. The total annual estimated cost 
burden for these fees is $145,670 (refer to burden chart).
    (b) Cost of reports prepared by independent certified public 
accountants. Under Sec.  203.81, a report prepared by an independent 
certified public accountant (CPA) must accompany the application and 
post-production report (expansion project, short form, and preview 
assessment applications are excluded). The OCS Lands Act applications 
will require this report only once; the DWRRA applications will require 
this report at two stages--with the application and post-production 
development report for successful applicants. MMS estimates 
approximately three submissions each year at an average cost of $45,000 
per report, for a total estimated annual cost burden of $135,000.
    The total of the two burdens is estimated at $280,670.
    Public Disclosure Statement: The PRA (44 U.S.C. 3501, et seq.) 
provides that an agency may not conduct or sponsor a collection of 
information unless it displays a currently valid OMB control number. 
Until OMB approves a collection of information, you are not obligated 
to respond.
    Comments: Section 3506(c)(2)(A) of the PRA (44 U.S.C. 3501, et 
seq.) 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, on March 15, 2006, 
we published a Federal Register notice (71 FR 13420) announcing that we 
would submit this ICR to OMB for approval. The notice provided the 
required 60-day comment period. In addition, Sec.  203.82 provides the 
OMB control number for the information collection requirements imposed 
by the 30 CFR part 203 regulations. The regulation also informs the 
public that they may comment at any time on the collections of 
information and provides the address to which they should send 
comments. We received two comments in response to these efforts. 
Neither comment was germane to the IC cost or hour burden or the 
subject of the collection itself.
    If you wish to comment in response to this notice, you may send 
your comments to the offices listed under the ADDRESSES section of this 
notice. OMB has up to 60 days to approve or disapprove the information 
collection but may respond after 30 days. Therefore, to ensure maximum 
consideration, OMB should receive public comments by December 20, 2006.
    Public Comment Procedures: MMS's practice is to make comments, 
including names and addresses of respondents, available for public 
review. If you wish your name and/or address to be withheld, you must 
state this prominently at the beginning of your comment. MMS will honor 
the request to the extent allowable by the law; however, anonymous 
comments will

[[Page 67158]]

not be considered. There may be circumstances in which we would 
withhold from the record a respondent's identity, as allowable by the 
law. If you wish us to withhold your name and/or address, you must 
state this prominently at the beginning of your comment. In addition, 
you must present a rationale for withholding this information. This 
rationale must demonstrate that disclosure ``would constitute an 
unwarranted invasion of primary.'' Unsupported assertions will not meet 
this burden. In the absence of exception, documentable circumstances, 
this information will be released. All submissions from organizations 
or businesses, and from individuals identifying themselves as 
representatives or officials of organizations or businesses, will be 
made available for public inspection in their entirety.
    MMS Information Collection Clearance Officer: Arlene Bajusz, (202) 
208-7744.

    Dated: September 12, 2006.
E.P. Danenberger,
Chief, Office of Offshore Regulatory Programs.
 [FR Doc. E6-19514 Filed 11-17-06; 8:45 am]
BILLING CODE 4310-MR-P