[Federal Register Volume 72, Number 190 (Tuesday, October 2, 2007)]
[Notices]
[Pages 56090-56093]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-19379]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service


Agency Information Collection Activities: Proposed Collection, 
Comment Request

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Notice of an extension of a currently approved information

[[Page 56091]]

collection (OMB Control Number 1010-0073).

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SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), we 
are inviting comments on a collection of information that we will 
submit to the Office of Management and Budget (OMB) for review and 
approval. The previous title of this ICR was ``30 CFR Part 220--
Accounting Procedures for Determining Net Profit Share Payment for 
Outer Continental Shelf Oil and Gas Leases, Sec.  220.010 NPSL capital 
account, Sec.  220.030 Maintenance of records, Sec.  220.031 Reporting 
and payment requirements, Sec.  220.032 Inventories, and Sec.  220.033 
Audits.'' The new title of this ICR is ``30 CFR 220-OCS Net Profit 
Share Payment Reporting.'' There are no forms associated with this 
information collection.

DATES: Submit written comments on or before December 3, 2007.

ADDRESSES: Submit written 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-carry your comments, 
our courier address is Building 85, Room A-614, Denver Federal Center, 
West 6th Ave. and Kipling Blvd., Denver, Colorado 80225. You may also 
e-mail your comments to us at [email protected]. Include the title 
of the information collection and the OMB control number in the 
``Attention'' line of your comment. Also include your name and return 
address. If you do not receive a confirmation that we have received 
your e-mail, contact Ms. Gebhardt at (303) 231-3211.

FOR FURTHER INFORMATION CONTACT: Sharron L. Gebhardt, telephone (303) 
231-3211, FAX (303) 231-3781, or e-mail [email protected].

SUPPLEMENTARY INFORMATION:
    Title: 30 CFR Part 220--OCS Net Profit Share Payment Reporting.
    OMB Control Number: 1010-0073.
    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 MMS performs the royalty management 
functions for the Secretary.
    Applicable law citations pertaining to mineral leases include the 
Federal Oil and Gas Royalty Management Act of 1982 (Pub. L. 97-451--
Jan. 12, 1983); Outer Continental Shelf Lands Act of 1953 (43 U.S.C. 
1353; Pub. L. 212--Aug. 7, 1953, as amended by Pub. L. 93-627--Jan. 3, 
1975, Pub. L. 95-372--Sept. 18, 1978, and Pub. L. 98-498--Oct. 19, 
1984); and the Mineral Leasing Act (30 U.S.C. 1923). These citations 
can be viewed on our Web site at http://www.mrm.mms.gov/Laws_R_D/PublicLawsAMR.htm.

General Information

    When a company or an individual enters into a lease to explore, 
develop, produce, and dispose of minerals from Federal or Indian lands, 
that company or individual agrees to pay the lessor a share of the 
value received from production from the leased lands. The lease creates 
a business relationship between the lessor and the lessee. The lessee 
is required to report various kinds of information to the lessor 
relative to the disposition of the leased minerals. Such information is 
similar to data reported to private and public mineral interest owners 
and is generally available within the records of the lessee or others 
involved in developing, transporting, processing, purchasing, or 
selling of such minerals. The information collected includes data 
necessary to ensure royalties or net profit share payments are properly 
valued and appropriately paid.

Net Profit Share Leases (NPSL) Bidding System

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

NPSL Capital Account

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

NPSL Inventories

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

NPSL Audits

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

Summary

    This collection of information is necessary in order to determine 
when net profit share payments are due and to ensure royalties or net 
profit share payments are properly valued and appropriately paid.
    The MMS will request OMB's approval to continue to collect this 
information. Not collecting this information would limit the 
Secretary's ability to discharge his/her duty and may also result in 
loss of royalty payments. Proprietary information submitted to MMS 
under this collection is protected, and there are no questions of a 
sensitive nature included in this information collection.
    Frequency: Annually, monthly, and on occasion.
    Estimated Number and Description of Respondents: 6 lessees.
    Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 1,046 
hours.
    All six lessees report monthly because all current NPSLs are in 
producing status. Because the requirements for establishment of capital 
accounts at Sec.  220.010(a) and capital account annual reporting at 
Sec.  220.031(a) are necessary only during non-producing status of a 
lease, we included only one response annually for these requirements, 
in case a new NPSL is established. We have not included in our 
estimates certain requirements performed in the normal course of 
business, which are

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considered usual and customary. The following chart shows the estimated 
annual burden hours by CFR section and paragraph.

                                   Respondents' Estimated Annual Burden Hours
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                                                                                           Number of    Annual
      Citation 30 CFR 220           Reporting & recordkeeping requirement        Hour       annual      burden
                                                                                burden     responses     hours
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PART 220--ACCOUNTING PROCEDURES FOR DETERMINING NET PROFIT SHARE PAYMENT FOR OUTER CONTINENTAL SHELF OIL AND GAS
                                                     LEASES
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                                       Sec.   220.010 NPSL capital account
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220.010(a).....................  (a) For each NPSL tract, an NPSL capital              1           1           1
                                  account shall be established and
                                  maintained by the lessee for NPSL
                                  operations * * *.
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                                      Sec.   220.030 Maintenance of records
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220.030(a) and (b).............  (a) Each lessee * * * shall establish and             1           6           6
                                  maintain such records as are necessary * *
                                  *.
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                                Sec.   220.031 Reporting and payment requirements
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220.031(a).....................  (a) Each lessee subject to this part shall            1           1           1
                                  file an annual report during the period
                                  from issuance of the NPSL until the first
                                  month in which production revenues are
                                  credited to the NPSL capital account * * *.
220.031(b).....................  (b) Beginning with the first month in which          13          72         936
                                  production revenues are credited to the
                                  NPSL capital account, each lessee * * *
                                  shall file a report for each NPSL, not
                                  later than 60 days following the end of
                                  each month * * *.
220.031(c).....................  (c) Each lessee subject to this Part 220       Burden hours covered under Sec.
                                  shall submit, together with the report                  220.031(b).
                                  required * * * any net profit share
                                  payment due * * *.
220.031(d).....................  (d) Each lessee * * * shall file a report             8           6          48
                                  not later than 90 days after each
                                  inventory is taken * * *.
220.031(e).....................  (e) Each lessee * * * shall file a final              4           6          24
                                  report, not later than 60 days following
                                  the cessation of production * * *.
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                                           Sec.   220.032 Inventories
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220.032(b).....................  (b) At reasonable intervals, but at least             1           6           6
                                  once every three years, inventories of
                                  controllable materiel shall be taken by
                                  the lessee. Written notice of intention to
                                  take inventory shall be given by the
                                  lessee at least 30 days before any
                                  inventory is to be taken so that the
                                  Director may be represented at the taking
                                  of inventory * * *.
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                                              Sec.   220.033 Audits
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220.033(b)(1)..................  (b)(1) When nonoperators of an NPSL lease             2           6          12
                                  call an audit in accordance with the terms
                                  of their operating agreement, the Director
                                  shall be notified of the audit call * * *.
220.033(b)(2)..................  (b)(2) If DOI determines to call for an               2           6          12
                                  audit, DOI shall notify the lessee of its
                                  audit call and set a time and place for
                                  the audit * * * The lessee shall send
                                  copies of the notice to the nonoperators
                                  on the lease * * *.
220.033(e).....................  (e) Records required to be kept under Sec.    The Office of Regulatory Affairs
                                   220.030(a) shall be made available for      determined that the audit process
                                  inspection by any authorized agent of DOI      is exempt from the Paperwork
                                  * * *.                                       Reduction Act of 1995 because MMS
                                                                               staff asks non-standard questions
                                                                                    to resolve exceptions.
                                                                                         -----------------------
    Total Burden...............  ...........................................  ..........         110       1,046
                                                                             -----------------------------------
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    Estimated Annual Reporting and Recordkeeping ``Non-hour'' Cost 
Burden: We have identified no ``non-hour cost'' burdens.
    Public Disclosure Statement: The PRA (44 U.S.C. 3501 et seq.) 
provides that an agency may not conduct or sponsor, and a person is not 
required to respond to, a collection of information unless it displays 
a currently valid OMB control number.
    Comments: Before submitting an ICR to OMB, PRA Section 
3506(c)(2)(A) 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)

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minimize the burden on the respondents, including the use of automated 
collection techniques or other forms of information technology.
    The PRA also requires agencies to estimate the total annual 
reporting ``non-hour cost'' burden to respondents or recordkeepers 
resulting from the collection of information. If you have costs to 
generate, maintain, and disclose this information, you should comment 
and provide your total capital and startup cost components or annual 
operation, maintenance, and purchase of service components. You should 
describe the methods you use to estimate major cost factors, including 
system and technology acquisition, expected useful life of capital 
equipment, discount rate(s), and the period over which you incur costs. 
Capital and startup costs include, among other items, computers and 
software you purchase to prepare for collecting information; 
monitoring, sampling, and testing equipment; and record storage 
facilities. Generally, your estimates should not include equipment or 
services purchased: (i) Before October 1, 1995; (ii) to comply with 
requirements not associated with the information collection; (iii) for 
reasons other than to provide information or keep records for the 
Government; or (iv) as part of customary and usual business or private 
practices.
    We will summarize written responses to this notice and address them 
in our ICR submission for OMB approval, including appropriate 
adjustments to the estimated burden. We will provide a copy of the ICR 
to you without charge upon request. The ICR also will be posted on our 
Web site at http://www.mrm.mms.gov/Laws_R_D/FRNotices/FRInfColl.htm.
    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/FRNotices/FRInfColl.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. Before including your address, phone number, e-mail address, 
or other personal identifying information in your comment, you should 
be aware that your entire comment--including your personal identifying 
information--may be made publicly available at any time. While you can 
ask us in your comment to withhold your personal identifying 
information from public review, we cannot guarantee that we will be 
able to do so.
    MMS Information Collection Clearance Officer: Arlene Bajusz (202) 
208-7744.

    Dated: September 21, 2007.
Lucy Querques Denett,
Associate Director for Minerals Revenue Management.
 [FR Doc. E7-19379 Filed 10-1-07; 8:45 am]
BILLING CODE 4310-MR-P