[Federal Register Volume 72, Number 200 (Wednesday, October 17, 2007)]
[Notices]
[Pages 58869-58882]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-20424]


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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 1010-0120).

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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 202, 206, 210, 212, 
217, and 218. This notice also provides the public a second opportunity 
to comment on the paperwork burden of these regulatory requirements. We 
changed the title of this ICR to reflect OMB consolidation approval of 
solid mineral and geothermal ICRs. Those ICRs were titled:
     1010-0074: 30 CFR Part 206--Product Valuation, Subpart J--
Indian Coal (Forms MMS-4292, Coal Washing Allowance Report, and MMS-
4293, Coal Transportation Allowance Report);
     1010-0120: 30 CFR Part 206, Subpart F--Federal Coal and 
Subpart J--Indian Coal; Part 210, Subpart B--Oil, Gas, and OCS Sulfur--
General, Subpart E--Solid Minerals, General, Subpart H--Geothermal 
Resources; Part 218, Subpart B--Oil and Gas, General, Subpart E--Solid 
Minerals--General (Form MMS-4430, Solid Minerals Production and Royalty 
Report); and
     1010-0169: 30 CFR Parts 202, 206, 210, 217, and 218--
Valuation of Geothermal Resources.
    The title of this ICR is ``30 CFR 202, 206, 210, 212, 217, and 
218--Solid Minerals and Geothermal Collections.'' Forms associated with 
this information collection are Forms MMS-4430, Solid Minerals 
Production and Royalty Report; MMS-4292, Coal Washing Allowance Report; 
and MMS-4293, Coal Transportation Allowance Report.

DATES: Submit written comments on or before November 16, 2007.

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 1010-0120).

[[Page 58870]]

    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 202, 206, 210, 212, 217, and 218-Solid Minerals and 
Geothermal Collections.
    OMB Control Number: 1010-0120.
    Bureau Form Number: Forms MMS-4430, MMS-4292, and MMS-4293.
    Abstract: The Secretary of the United States Department of the 
Interior (Secretary) is responsible for matters relevant to mineral 
resource development on Federal and Indian lands and the Outer 
Continental Shelf (OCS). The Secretary, under the Mineral Leasing Act 
(30 U.S.C. 1923) and the Outer Continental Shelf Lands Act (43 U.S.C. 
1353), is responsible for managing the production of minerals from 
Federal and Indian lands and the OCS, collecting royalties from lessees 
who produce minerals, and distributing the funds collected in 
accordance with applicable laws. The Secretary also has a trust 
responsibility to manage Indian lands and seek advice and information 
from Indian beneficiaries. The MMS performs the royalty management 
functions and assists the Secretary in carrying out the Department's 
trust responsibility for Indian lands.
    Minerals produced from Federal and Indian leases vary greatly in 
the nature of occurrence, production and processing methods, and 
markets served. Also, lease terms, statutory requirements, and 
regulations vary significantly among the different minerals.
    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 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 that the royalties are accurately valued and 
appropriately paid.
    Applicable law citations pertaining to mineral leases on Federal 
and Indian lands include: 25 U.S.C. 396d, Chapter 12--Lease, Sale, or 
Surrender of Allotted or Unallotted Lands; 25 U.S.C. 2103, Chapter 23--
Development of Tribal Mineral Resources; 30 U.S.C. 189, Chapter 3A--
Leases and Prospecting Permits; 30 U.S.C. 359, Chapter 7--Lease of 
Mineral Deposits within Acquired Lands; 30 U.S.C. 1001, 1002, Chapter 
23--Geothermal Steam and Associated Geothermal Resources; 43 U.S.C. 
1334, Chapter 29--Submerged Lands, Subchapter III--Outer Continental 
Shelf Lands Act; Energy Policy Act of 2005; and Mineral Leasing Act of 
1920.
    Applicable Code of Federal Regulations (CFR) citations include 30 
CFR parts 202, subpart H; 206, subparts F, H, and J; 210, subparts E 
and H; 212, subparts E and H; 217, subparts E, F, and G; and 218, 
subparts E and F.
    The governing citations require the lessees, operators, or other 
directly involved persons to accurately submit minerals royalty and 
production data and provide additional reasonable information as 
defined by the Secretary regarding their production. This ICR provides 
for the collection of (1) solid minerals royalty and production 
information on the forms above and on other associated data formats 
such as sales summaries, facility data, sales contracts and amendments, 
and payment information; and (2) geothermal resources information on 
Form MMS-2014 (ICR 1010-0140; OMB approval expires November 30, 2009). 
The information collected (1) enables MMS to verify that revenue due 
the Federal Government is accurately reported and correctly paid under 
applicable laws, regulations, and lease terms; and (2) supports the 
fulfillment of our trust and financial and compliance requirements. It 
also enables MMS to timely disburse mineral revenues to the correct 
recipients. We encourage electronic submission by way of e-mail message 
attachments; however, hard-copy submissions are accepted.
    Specific lease language varies. However, respondents agree by the 
lease terms to furnish statements providing the details of all solid 
minerals and geothermal operations conducted on a Federal or Indian 
lease, including the quantity and quality of all production from the 
lease at such times and in such form as the Secretary may prescribe.
    The MMS, acting for the Secretary, uses the collected information 
to support the Compliance and Asset Management (CAM) and Financial 
Management (FM) processes, and to assure that royalties are reported 
timely and paid appropriately and are based upon correct product 
valuation. The MMS, as well as other Federal Government, state, and 
tribal entities, uses the collected information for audit purposes and 
for evaluation of the reasonableness of product valuation or of 
allowance claims submitted by lessees. The MMS provides the Bureau of 
Land Management (BLM) and the Bureau of Indian Affairs (BIA) access to 
this information. The BLM and BIA use this data to conduct production 
verification, ensure lease diligence, and monitor plant efficiencies, 
maximum recovery, and secondary product inventories. The determination 
of the appropriate product value or allowance rate directly affects the 
royalties due. Failure to collect such data would prevent the Secretary 
from accomplishing statutory and trust responsibilities.
    The information we collect under this ICR is essential for the 
royalty valuation process. Not collecting this information would limit 
the Secretary's ability to discharge fiduciary duties and may also 
result in the inability to confirm the accurate royalty value.
    Proprietary information submitted to MMS under this collection is 
protected. No items of a sensitive nature are collected. The 
requirement to submit Form MMS-4430 is mandatory. The requirement for 
producers of coal from Indian leases to submit Forms MMS-4292 and MMS-
4293 is required to obtain benefits.
    Frequency of Response: On occasion, annually, and/or monthly.
    Estimated Number and Description of Respondents: 161 reporters.

[[Page 58871]]

    Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 3,670 
hours.
    We revised this ICR to include reporting requirements from parts 
206 and 212 citations that were overlooked in the previous renewal. We 
have adjusted the burden hours accordingly. 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' Estimated Annual Burden Hours
----------------------------------------------------------------------------------------------------------------
                                                                                        Average No.     Annual
             Citation 30 CFR                  Reporting & recordkeeping    Hour burden     annual       burden
                                                     requirement                         responses      hours
----------------------------------------------------------------------------------------------------------------
                                               Part 202--Royalties
 
                                         Subpart H--Geothermal Resources
----------------------------------------------------------------------------------------------------------------
202.351..................................  Royalties on geothermal         Hour burden covered under OMB Control
                                            resources. (b)(3) Royalties      Number 1010-0140 (expires November
                                            on byproducts are due at the                 30, 2009).
                                            time the recovered byproduct
                                            is used, sold, or otherwise
                                            finally disposed of * * *.
----------------------------------------------------------------------------------------------------------------
202.353..................................  Measurement standards for       Hour burden covered under OMB Control
                                            reporting and paying            Number 1010-0140. See Sec.   210.52.
                                            royalties and direct use fees.
                                           (a) For geothermal resources
                                            used to generate electricity,
                                            you must report the quantity
                                            on which royalty is due on
                                            Form MMS-2014 * * *.
                                           (b) For geothermal resources
                                            used in direct use processes,
                                            you must report the quantity
                                            on which a royalty or direct
                                            use fee is due on Form MMS-
                                            2014* * *.
                                           (c) For byproducts, you must
                                            report the quantity on which
                                            royalty is due on Form MMS-
                                            2014* * *.
                                           (d) For commercially
                                            demineralized water, you must
                                            report the quantity on which
                                            royalty is due on Form MMS-
                                            2014* * *.
                                          ----------------------------------------------------------------------
                                           (e) * * * However, you must            AUDIT PROCESS. See Note.
                                            maintain quality measurements
                                            for audit purposes * * *.
----------------------------------------------------------------------------------------------------------------
                                           Part 206--Product Valuation
 
                                             Subpart F--Federal Coal
----------------------------------------------------------------------------------------------------------------
206.253 (c)..............................  Coal subject to royalties--         Hour burden covered under Sec.
                                            general provisions.                           206.254.
----------------------------------------------------------------------------------------------------------------
                                           (c) * * * The lessee shall
                                            maintain accurate records to
                                            determine to which individual
                                            Federal lease coal in the
                                            waste pit or slurry pond
                                            should be allocated.
----------------------------------------------------------------------------------------------------------------
206.254..................................  Quality and quantity                  .4166          816          340
                                            measurement standards for
                                            reporting and paying
                                            royalties.
                                           * * * Coal quantity
                                            information shall be reported
                                            on appropriate forms required
                                            under 30 CFR part 216 and on
                                            the Solid Minerals Production
                                            and Royalty Report, Form MMS-
                                            4430, as required under 30
                                            CFR part 210.
                                          ----------------------------------------------------------------------
206.257..................................  Valuation standards for ad             AUDIT PROCESS. See Note.
                                            valorem leases..
                                           (b)(1) * * * The lessee shall
                                            have the burden of
                                            demonstrating that its
                                            contract is arm's-length* * *.
                                           (b)(3) * * * When MMS
                                            determines that the value may
                                            be unreasonable, MMS will
                                            notify the lessee and give
                                            the lessee an opportunity to
                                            provide written information
                                            justifying the lessee's
                                            reported coal value.
                                           (b)(4) The MMS may require a
                                            lessee to certify that its
                                            arm's-length contract
                                            provisions include all of the
                                            consideration to be paid by
                                            the buyer, either directly or
                                            indirectly, for the coal
                                            production.
                                          ----------------------------------------------------------------------
                                           (d)(1) Where the value is           Hour burden covered under Sec.
                                            determined pursuant to                        206.254.
                                            paragraph (c) of this
                                            section, that value does not
                                            require MMS's prior approval.
                                            However, the lessee shall
                                            retain all data relevant to
                                            the determination of royalty
                                            value* * *.
                                          ----------------------------------------------------------------------
                                           (d)(2) Any Federal lessee will         AUDIT PROCESS. See Note.
                                            make available upon request
                                            to the authorized MMS or
                                            State representatives, to the
                                            Inspector General of the
                                            Department of the Interior or
                                            other persons authorized to
                                            receive such information,
                                            arm's-length sales value and
                                            sales quantity data for like-
                                            quality coal sold, purchased,
                                            or otherwise obtained by the
                                            lessee from the area.
                                          ----------------------------------------------------------------------

[[Page 58872]]

 
                                           (d)(3) A lessee shall notify              2            1            2
                                            MMS if it has determined
                                            value pursuant to paragraphs
                                            (c)(2)(ii), (iii), (iv), or
                                            (v) of this section. * * *
                                            The letter shall identify the
                                            valuation method to be used
                                            and contain a brief
                                            description of the procedure
                                            to be followed. The
                                            notification required by this
                                            section is a one-time
                                            notification due no later
                                            than the month the lessee
                                            first reports royalties on
                                            the Form MMS-4430 * * * and
                                            each time there is a change*
                                            * *.
                                          ----------------------------------------------------------------------
                                           (f) The lessee may request a              5            1            5
                                            value determination from MMS.
                                            In that event, the lessee
                                            shall propose to MMS a value
                                            determination method, and may
                                            use that method in
                                            determining value for royalty
                                            purposes until MMS issues its
                                            decision. The lessee shall
                                            submit all available data
                                            relevant to its proposal.* *
                                            *.
                                          ----------------------------------------------------------------------
                                           (i) * * * Contract revisions              2            1            2
                                            or amendments shall be in
                                            writing and signed by all
                                            parties to an arm's-length
                                            contract, and may be
                                            retroactively applied to
                                            value for royalty purposes
                                            for a period not to exceed
                                            two years, unless MMS
                                            approves a longer period * *
                                            *.
----------------------------------------------------------------------------------------------------------------
206.259..................................  Determination of washing               AUDIT PROCESS. See Note.
                                            allowances. (a) Arm's-length
                                            contracts. (1) * * * The
                                            lessee shall have the burden
                                            of demonstrating that its
                                            contract is arm's-length* * *.
                                          ----------------------------------------------------------------------
                                           (a)(1) * * * the washing                .34           12            4
                                            allowance shall be the
                                            reasonable actual costs
                                            incurred by the lessee for
                                            washing the coal * * * The
                                            lessee shall have the burden
                                            of demonstrating that its
                                            contract is arm's-length * *
                                            *. The lessee must claim a
                                            washing allowance by
                                            reporting it as a separate
                                            line entry on the Form MMS-
                                            4430.
                                          ----------------------------------------------------------------------
                                           (a)(3) * * * When MMS                  AUDIT PROCESS. See Note.
                                            determines that the value of
                                            the washing may be
                                            unreasonable, MMS will notify
                                            the lessee and give the
                                            lessee an opportunity to
                                            provide written information
                                            justifying the lessee's
                                            washing costs.
                                          ----------------------------------------------------------------------
                                           (b) Non-arm's-length or no              .75           48           36
                                            contract. (1) * * * the
                                            washing allowance will be
                                            based upon the lessee's
                                            reasonable actual costs * *
                                            *. The lessee must claim a
                                            washing allowance by
                                            reporting it as a separate
                                            line entry on the Form MMS-
                                            4430 * * *.
                                          ----------------------------------------------------------------------
                                           (b) * * * The lessee must                 1            1            1
                                            claim a washing allowance by
                                            reporting it as a separate
                                            line entry on the Form MMS-
                                            4430 * * * (2)(iv) A lessee
                                            may use either paragraph
                                            (b)(2)(iv)(A) or (B) of this
                                            section. After a lessee has
                                            elected to use either method
                                            for a wash plant, the lessee
                                            may not later elect to change
                                            to the other alternative
                                            without approval of the MMS.
                                          ----------------------------------------------------------------------
                                           (b) * * * The lessee must                 1            1            1
                                            claim a washing allowance by
                                            reporting it as a separate
                                            line entry on the Form MMS-
                                            4430 * * * (2)(iv)(A) To
                                            compute depreciation, the
                                            lessee may elect to use
                                            either a straight-line
                                            depreciation method based on
                                            the life of equipment or on
                                            the life of the reserves
                                            which the wash plant
                                            services, whichever is
                                            appropriate, or a unit of
                                            production method. After an
                                            election is made, the lessee
                                            may not change methods
                                            without MMS approval * * *.
                                          ----------------------------------------------------------------------
                                           (c) Reporting requirements--        Hour burden covered under Sec.
                                            (1) Arm's-length contracts.                   210.201.
                                            (i) The lessee must notify
                                            MMS of an allowance based on
                                            incurred costs by using a
                                            separate line entry on the
                                            Form MMS-4430.
                                          ----------------------------------------------------------------------
                                           (c)(1)(ii) The MMS may require         AUDIT PROCESS. See Note.
                                            that a lessee submit arm's-
                                            length washing contracts, and
                                            related documents * * *.
                                          ----------------------------------------------------------------------
                                           (c)(2) Non-arm's-length or no    Hour burden hours covered under Sec.
                                            contract. (i) The lessee must                 210.201.
                                            notify MMS of an allowance
                                            based on the incurred costs
                                            by using a separate line
                                            entry on the Form MMS-4430.
                                          ----------------------------------------------------------------------
                                           (c)(2)(iii) Upon request by            AUDIT PROCESS. See Note.
                                            MMS, the lessee shall submit
                                            all data used to prepare the
                                            allowance deduction * * *.
                                          ----------------------------------------------------------------------
                                           (e) Adjustments * * *. (2) The      Hour burden covered under Sec.
                                            lessee must submit a                          210.201.
                                            corrected Form MMS-4430 to
                                            reflect actual costs,
                                            together with any payment, in
                                            accordance with instructions
                                            provided by MMS.
                                          ----------------------------------------------------------------------

[[Page 58873]]

 
206.262..................................  Determination of                       AUDIT PROCESS. See Note.
                                            transportation allowances.
                                           (a) Arm's-length contracts.
                                            (1) * * * The lessee shall
                                            have the burden of
                                            demonstrating that its
                                            contract is arm's-length * *
                                            *.
                                          ----------------------------------------------------------------------
                                           (a)(1) * * * the                        .33          240           80
                                            transportation allowance
                                            shall be the reasonable,
                                            actual costs incurred by the
                                            lessee for transporting the
                                            coal * * * The lessee must
                                            claim a transportation
                                            allowance by reporting it as
                                            a separate line entry on the
                                            Form MMS-4430.
                                          ----------------------------------------------------------------------
                                           (a)(3) * * * When MMS                  AUDIT PROCESS. See Note.
                                            determines that the value of
                                            the transportation may be
                                            unreasonable, MMS will notify
                                            the lessee and give the
                                            lessee an opportunity to
                                            provide written information
                                            justifying the lessee's
                                            transportation costs.
                                          ----------------------------------------------------------------------
                                           (b) Non-arm's-length or no              .75           24           18
                                            contract--(1) * * * the
                                            transportation allowance will
                                            be based upon the lessee's
                                            reasonable actual costs * *
                                            *. The lessee must claim a
                                            transportation allowance by
                                            reporting it as a separate
                                            line entry on the Form MMS-
                                            4430 * * *.
                                          ----------------------------------------------------------------------
                                           (b)(2)(iv) * * * After a                  1            1            1
                                            lessee has elected to use
                                            either method for a
                                            transportation system, the
                                            lessee may not later elect to
                                            change to the other
                                            alternative without approval
                                            of the MMS.
                                          ----------------------------------------------------------------------
                                           (b)(2)(iv)(A) * * * After an              1            1            1
                                            election is made, the lessee
                                            may not change methods
                                            without MMS approval * * *.
                                          ----------------------------------------------------------------------
                                           (b)(3) A lessee may apply to              1            1            1
                                            MMS for exception from the
                                            requirement that it compute
                                            actual costs in accordance
                                            with paragraphs (b)(1) and
                                            (b)(2) of this section * * *.
                                          ----------------------------------------------------------------------
                                           (c) Reporting requirements--        Hour burden covered under Sec.
                                            (1) Arm's-length contracts.                   210.201.
                                            (i) The lessee must notify
                                            MMS of an allowance based on
                                            incurred costs by using a
                                            separate line entry on the
                                            Form MMS-4430.
                                          ----------------------------------------------------------------------
                                           (c)(1)(ii) The MMS may require         AUDIT PROCESS. See Note.
                                            that a lessee submit arm's-
                                            length transportation
                                            contracts, production
                                            agreements, operating
                                            agreements, and related
                                            documents * * *.
                                          ----------------------------------------------------------------------
                                           (c)(2) Non-arm's-length or no       Hour burden covered under Sec.
                                            contract--(i) The lessee must                 210.201.
                                            notify MMS of an allowance
                                            based on the incurred costs
                                            by using a separate line
                                            entry on Form MMS-4430.
                                          ----------------------------------------------------------------------
                                           (c)(2)(iii) Upon request by            AUDIT PROCESS. See Note.
                                            MMS, the lessee shall submit
                                            all data used to prepare the
                                            allowance deduction * * *.
                                          ----------------------------------------------------------------------
                                           (e) Adjustments * * *. (2) The      Hour burden covered under Sec.
                                            lessee must submit a                          210.201.
                                            corrected Form MMS-4430 to
                                            reflect actual costs,
                                            together with any payments,
                                            in accordance with
                                            instructions provided by MMS.
----------------------------------------------------------------------------------------------------------------
206.264..................................  In-situ and surface                       1            1            1
                                            gasification and liquefaction
                                            operations.
                                           If an ad valorem Federal coal   ...........  ...........  ...........
                                            lease is developed by in-situ
                                            or surface gasification or
                                            liquefaction technology, the
                                            lessee shall propose the
                                            value of coal for royalty
                                            purposes to MMS. The MMS will
                                            review the lessee's proposal
                                            and issue a value
                                            determination. The lessee may
                                            use its proposed value until
                                            MMS issues a value
                                            determination.
                                          ----------------------------------------------------------------------
206.265..................................  Value enhancement of                      1            1            1
                                            marketable coal.
                                           If, prior to use, sale, or                1            1            1
                                            other disposition, the lessee
                                            enhances the value of coal
                                            after the coal has been
                                            placed in marketable
                                            condition in accordance with
                                            Sec.   206.257(h) of this
                                            subpart, the lessee shall
                                            notify MMS that such
                                            processing is occurring or
                                            will occur.
----------------------------------------------------------------------------------------------------------------
                                         Subpart H--Geothermal Resources
----------------------------------------------------------------------------------------------------------------
206.352 (b)(1) (ii)......................  How do I calculate the royalty            1            1            1
                                            due on geothermal resources
                                            used for commercial
                                            production or generation of
                                            electricity?
                                           (b)(1) For Class I leases, you  ...........  ...........  ...........
                                            must determine the royalty on
                                            produced geothermal resources
                                            * * *.
                                           (ii) A royalty determined by              1            1            1
                                            any other reasonable method
                                            approved by MMS under Sec.
                                            206.364 of this subpart.
----------------------------------------------------------------------------------------------------------------

[[Page 58874]]

 
206.353..................................  How do I determine                     AUDIT PROCESS. See Note.
                                            transmission deductions?
                                           (c)(2)(i)(A) Such purchase is
                                            necessary
                                           (d)(9) Any other directly
                                            allocable and attributable
                                            operating or maintenance
                                            expense that you can document.
                                           (e) Allowable maintenance
                                            expenses include: * * * (4)
                                            Other directly allocable and
                                            attributable maintenance
                                            expenses that you can
                                            document.
                                          ----------------------------------------------------------------------
                                           (g) To compute costs                      1            1            1
                                            associated with capital
                                            investment * * * After a
                                            lessee has elected to use
                                            either method, the lessee may
                                            not later elect to change to
                                            the other alternative without
                                            MMS approval.
                                          ----------------------------------------------------------------------
                                           (h)(1) To compute                         1            1            1
                                            depreciation, you must use a
                                            straight-line depreciation
                                            method * * * You may not
                                            depreciate equipment below a
                                            reasonable salvage value..
                                          ----------------------------------------------------------------------
                                           (m)(2) When actual cost         Hour burden covered under OMB Control
                                            information is available, you            Number 1010-0140.
                                            must amend your prior Form
                                            MMS-2014 reports to reflect
                                            actual transmission costs
                                            deductions for each month for
                                            which you reported and paid
                                            based on estimated
                                            transmission costs. You must
                                            pay any additional royalties
                                            due (together with interest
                                            computed under Sec.
                                            218.302). You are entitled to
                                            a credit for or refund of any
                                            overpaid royalties.
                                          ----------------------------------------------------------------------
                                           (n) In conducting reviews and          AUDIT PROCESS. See Note.
                                            audits, MMS may require you
                                            to submit arm's-length
                                            transmission contracts,
                                            production agreements,
                                            operating agreements and
                                            related documents and all
                                            other data used to calculate
                                            the deduction. You must
                                            comply with any such
                                            requirements within the time
                                            MMS specifies. Recordkeeping
                                            requirements are found at
                                            part 212 of this chapter.
----------------------------------------------------------------------------------------------------------------
206.354..................................  How do I determine generating             1            1            1
                                            deductions?
                                           (b)(1)(ii) You must             ...........  ...........  ...........
                                            redetermine your generating
                                            cost rate annually * * *
                                            After you choose a deduction
                                            period, you may not later
                                            elect to use a different
                                            deduction period without MMS
                                            approval.
                                          ----------------------------------------------------------------------
                                           (c)(2)(i) You may include a            AUDIT PROCESS. See Note.
                                            return on capital * * * if:
                                           (A) The purchase is necessary
                                            * * *
                                           (d) Allowable operating
                                            expenses include: * * * (9)
                                            Any other directly allocable
                                            and attributable operating
                                            expense * * *
                                           (e) Allowable maintenance
                                            expenses include: * * * (4)
                                            Other directly allocable and
                                            attributable maintenance
                                            expenses that you can
                                            document
                                          ----------------------------------------------------------------------
                                           (g) * * * After a lessee has              1            1            1
                                            elected to use either method,
                                            the lessee may not later
                                            elect to change to the other
                                            alternative without MMS
                                            approval
                                          ----------------------------------------------------------------------
                                           (h)(1) To compute                         1            1            1
                                            depreciation, you must use a
                                            straight-line depreciation
                                            method based on the life of
                                            the geothermal project,
                                            usually the term of the
                                            electricity sales contract,
                                            or other depreciation period
                                            acceptable to MMS. You may
                                            not depreciate equipment
                                            below a reasonable salvage
                                            value
                                          ----------------------------------------------------------------------
                                           (m)(2) When actual cost         Hour burden covered under OMB Control
                                            information is available, you            Number 1010-0140.
                                            must amend your prior Form
                                            MMS-2014 reports to reflect
                                            actual generating cost
                                            deductions for each month for
                                            which you reported and paid
                                            based on estimated generating
                                            costs. You must pay any
                                            additional royalties due
                                            (together with interest
                                            computed under Sec.
                                            218.302)* * *
                                          ----------------------------------------------------------------------
                                           (n) In conducting reviews and          AUDIT PROCESS. See Note.
                                            audits, MMS may require you
                                            to submit arm's-length power
                                            plant contracts, production
                                            agreements, operating
                                            agreements, related documents
                                            and all other data used to
                                            calculate the deduction. You
                                            must comply with any such
                                            requirements within the time
                                            MMS specifies. Recordkeeping
                                            requirements are found at
                                            part 212 of this chapter.
----------------------------------------------------------------------------------------------------------------
206.356..................................  How do I calculate royalty or             1            1            1
                                            fees due on geothermal
                                            resources I use for direct
                                            use purposes?
                                           (a) For Class I leases, you
                                            must determine the royalty
                                            due on geothermal resources *
                                            * *
                                           (1) The weighted average of
                                            the gross proceeds
                                            established in arm's-length
                                            contracts for the purchase of
                                            significant quantities of
                                            geothermal resources * * * In
                                            evaluating the acceptability
                                            of arm's-length contracts * *
                                            *

[[Page 58875]]

 
                                           (a)(2) * * * The efficiency              48            2           96
                                            factor of the alternative
                                            energy source will be * * *
                                            or * * * proposed by the
                                            lessee and approved MMS * * *
                                            .
                                          ----------------------------------------------------------------------
                                           (a)(3) A royalty determined by            1            1            1
                                            any other reasonable method
                                            approved by MMS * * *
                                          ----------------------------------------------------------------------
                                           (b)(3) * * * you must provide             1            1            1
                                            MMS data showing the amount
                                            of geothermal production in
                                            pounds or gallons of
                                            geothermal fluid to input
                                            into the fee schedule * * *
                                          ----------------------------------------------------------------------
                                           (c) For geothermal resources              1            1            1
                                            other than hot water, MMS
                                            will determine fees on a case-
                                            by-case basis
                                          ----------------------------------------------------------------------
206.357..................................  How do I calculate royalty due            1            1            1
                                            on byproducts?
                                           (b)(3) Any other reasonable               1            1            1
                                            valuation method approved by
                                            MMS
                                          ----------------------------------------------------------------------
206.358..................................  What are byproduct              Hour burden covered under OMB Control
                                            transportation allowances?               Number 1010-0140.
                                           (d) Reporting requirements.
                                            (1) You must use a discrete
                                            field on Form MMS-2014 to
                                            notify MMS of a
                                            transportation allowance
                                          ----------------------------------------------------------------------
                                           (d)(2) In conducting reviews           AUDIT PROCESS. See Note.
                                            and audits, MMS may require
                                            you to submit arm's-length
                                            transportation contracts * *
                                            * You must comply with any
                                            such requirements * * *
                                            Recordkeeping requirements
                                            are found at part 212 of this
                                            chapter
                                          ----------------------------------------------------------------------
                                           (e) * * * If, after a review           AUDIT PROCESS. See Note.
                                            or audit, MMS determines that
                                            you have improperly
                                            determined a byproduct
                                            transportation allowance, you
                                            must pay any additional
                                            royalties due (plus interest
                                            computed under Sec.
                                            218.302) * * * .
----------------------------------------------------------------------------------------------------------------
206.359..................................  How do I determine byproduct           AUDIT PROCESS See Note.
                                            transportation allowances?.
                                           (a)(1) * * * MMS may require
                                            you to determine the
                                            byproduct transportation
                                            allowance * * *.
                                           (a)(2) * * * MMS will notify
                                            you and give you an
                                            opportunity to provide
                                            written information
                                            justifying your
                                            transportation costs * * *.
                                           (c)(2)(i) You may include a
                                            return on capital * * * if:
                                            (A) The purchase is necessary
                                            * * *.
                                           (d) Allowable operating
                                            expenses include: * * * (9)
                                            Any other directly allocable
                                            and attributable operating
                                            expense that you can document
                                            * * *.
                                           (e) Allowable maintenance
                                            expenses include: * * * (4)
                                            Other directly allocable and
                                            attributable maintenance
                                            expenses that you can
                                            document* * *.
                                          ----------------------------------------------------------------------
                                           (g) To compute costs                      1            1            1
                                            associated with capital
                                            investment * * * the lessee
                                            may not later elect to change
                                            to the other alternative
                                            without MMS approval.
                                          ----------------------------------------------------------------------
                                           (h)(1) To compute                         1            1            1
                                            depreciation, you must use a
                                            straight-line depreciation
                                            method based on either the
                                            life of the equipment or the
                                            life of the geothermal
                                            project * * * After you
                                            choose the basis for
                                            depreciation, you may not
                                            change that basis without MMS
                                            approval * * *.
                                          ----------------------------------------------------------------------
                                           (l)(2) When actual cost         Hour burden covered under OMB Control
                                            information is available, you            Number 1010-0140.
                                            must amend your prior Form
                                            MMS-2014 reports to reflect
                                            actual byproduct
                                            transportation cost
                                            deductions * * * You must pay
                                            any additional royalties due
                                            (together with interest
                                            computed under Sec.
                                            218.302) * * *.
----------------------------------------------------------------------------------------------------------------
206.360..................................  What records must I keep to            AUDIT PROCESS. See Note.
                                            support my calculations of
                                            royalty or fees under this
                                            subpart?.
                                           * * * you must retain all data
                                            relevant to the determination
                                            of the royalty value or the
                                            fee you paid. Recordkeeping
                                            requirements are found at
                                            part 212 of this chapter.
                                           (a) You must be able to show:.
                                           (1) How you calculated * * *..
                                           (2) How you complied * * *....
                                           (b) Upon request, you must
                                            submit all data to MMS* * *.
----------------------------------------------------------------------------------------------------------------
206.361..................................  How will MMS determine whether      AUDIT PROCESS. See Note.* * *
                                            my royalty or direct use fee
                                            payments are correct?.
                                           (a)(1) * * * The MMS may
                                            review and audit your data,
                                            and MMS will direct you to
                                            use a different measure.
                                          ----------------------------------------------------------------------

[[Page 58876]]

 
                                           (a)(2) If MMS directs you to    Hour burden covered under OMB Control
                                            use a different royalty                  Number 1010-0140.
                                            value, measure of gross
                                            proceeds, or fee, you must
                                            either pay any royalties or
                                            fees due (together with
                                            interest computed under Sec.
                                             218.302).
                                          ----------------------------------------------------------------------
                                           (b) * * * MMS may require you          AUDIT PROCESS. See Note.
                                            to increase the gross
                                            proceeds to reflect any
                                            additional consideration. * *
                                            * MMS may require you to use
                                            another valuation method. * *
                                            * MMS will notify you to give
                                            you an opportunity to provide
                                            written information
                                            justifying your gross
                                            proceeds* * *.
                                           (c) For arm's-length sales,
                                            you have the burden of
                                            demonstrating that your
                                            contract is arm's length.
                                           (d) The MMS may require you to
                                            certify that the provisions
                                            in your sales contract
                                            include all of the
                                            consideration the buyer paid
                                            you * * *.
                                          ----------------------------------------------------------------------
                                           (f)(2) Contract revisions or              1            1            1
                                            amendments you make must be
                                            in writing and signed by all
                                            parties to the contract.
----------------------------------------------------------------------------------------------------------------
206.364..................................  How do I request a value or               3           20           60
                                            gross proceeds determination?.
                                           (a) You may request a value
                                            determination from MMS * * *
                                            Your request must:.
                                           (1) Be in writing;* * *.......
                                          ----------------------------------------------------------------------
                                           (c) * * * (2) After the         Hour burden covered under OMB Control
                                            Assistant Secretary issues a             Number 1010-0140.
                                            determination, you must make
                                            any adjustments in royalty
                                            payments that follow from the
                                            determination and, if you owe
                                            additional royalties, pay the
                                            royalties owed together with
                                            late payment interest
                                            computed under Sec.   218.302.
                                          ----------------------------------------------------------------------
                                           (d)(2) If you receive an order  Hour burden covered under OMB Control
                                            requiring you to pay royalty             Number 1010-0122.
                                            on the same basis as the
                                            determination, you may appeal
                                            that order under 30 CFR part
                                            290 subpart B.
----------------------------------------------------------------------------------------------------------------
206.366..................................  What is the nominal fee that a  Hour burden covered under OMB Control
                                            State, tribal, or local                  Number 1010-0140.
                                            government lessee must pay
                                            for the use of geothermal
                                            resources?
                                            If a State, tribal, or local
                                            government lessee uses a
                                            geothermal resource * * *
                                            lessee must pay a nominal fee
                                            * * *.
----------------------------------------------------------------------------------------------------------------
                                             Subpart J--Indian Coal
----------------------------------------------------------------------------------------------------------------
206.452(c)...............................  Coal subject to royalties--         Hour burden covered under Sec.
                                            general provisions.                        206.456(d)(1).
                                            (c) * * * The lessee shall
                                            maintain accurate records to
                                            determine to which individual
                                            Indian lease coal in the
                                            waste pit or slurry pond
                                            should be allocated * * *.
----------------------------------------------------------------------------------------------------------------
206.453..................................  Quality and quantity                Hour burden covered under Sec.
                                            measurement standards for                  206.456(d)(1).
                                            reporting and paying
                                            royalties.
                                            * * * Coal quantity
                                            information shall be reported
                                            on appropriate forms required
                                            under 30 CFR part 216 and on
                                            the Solid Minerals Production
                                            and Royalty Report, Form MMS-
                                            4430, as required under 30
                                            CFR part 210.
----------------------------------------------------------------------------------------------------------------
206.456..................................  Valuation standards for ad             AUDIT PROCESS. See Note.
                                            valorem leases.
                                            (b)(1) * * * The lessee shall
                                            have the burden of
                                            demonstrating that its
                                            contract is arm's-length * *
                                            *.
                                            (b)(3) * * * When MMS
                                            determines that the value may
                                            be unreasonable, MMS will
                                            notify the lessee and give
                                            the lessee an opportunity to
                                            provide written information
                                            justifying the lessee's
                                            reported coal value.
                                            (b)(4) MMS may require a
                                            lessee to certify that its
                                            arm's-length contract
                                            provisions include all of the
                                            consideration to be paid by
                                            the buyer, either directly or
                                            indirectly, for the coal
                                            production.
----------------------------------------------------------------------------------------------------------------
                                           (d)(1) Where the value is               .42           48           20
                                            determined pursuant to
                                            paragraph (c) of this
                                            section, that value does not
                                            require MMS' prior approval.
                                            However, the lessee shall
                                            retain all data relevant to
                                            the determination of royalty
                                            value * * *.
                                          ----------------------------------------------------------------------
                                           (d)(2) An Indian lessee will           AUDIT PROCESS. See Note.
                                            make available upon request
                                            to the authorized MMS or
                                            Indian representatives, or to
                                            the Inspector General of the
                                            Department of the Interior or
                                            other persons authorized to
                                            receive such information,
                                            arm's-length sales and sales
                                            quantity data for like-
                                            quality coal sold, purchased,
                                            or otherwise obtained by the
                                            lessee from the area.
                                          ----------------------------------------------------------------------

[[Page 58877]]

 
                                           (d)(3) A lessee shall notify              1            1            1
                                            MMS if it has determined
                                            value pursuant to paragraphs
                                            (c)(2)(ii), (c)(2)(iii),
                                            (c)(2)(iv), or (c)(2)(v) of
                                            this section * * * . The
                                            letter shall identify the
                                            valuation method to be used
                                            and contain a brief
                                            description of the procedure
                                            to be followed * * *.
                                          ----------------------------------------------------------------------
                                           (f) The lessee may request a              1            1            1
                                            value determination from MMS.
                                            In that event, the lessee
                                            shall propose to MMS a value
                                            determination method, and may
                                            use that method in
                                            determining value for royalty
                                            purposes until MMS issues its
                                            decision. The lessee shall
                                            submit all available data
                                            relevant to its proposal * *
                                            *.
                                          ----------------------------------------------------------------------
                                           (i) * * * Contract revisions              1            1            1
                                            or amendments shall be in
                                            writing and signed by all
                                            parties to an arm's-length
                                            contract, and may be
                                            retroactively applied to
                                            value for royalty purposes
                                            for a period not to exceed
                                            two years, unless MMS
                                            approves a longer period * *
                                            *.
----------------------------------------------------------------------------------------------------------------
206.457(b)...............................  Washing allowances--general...      Hour burden covered under Sec.
                                                                                        218.201(b).
                                           (b) If MMS determines that a
                                            lessee has improperly
                                            determined a washing
                                            allowance authorized by this
                                            section, then the lessee
                                            shall be liable for any
                                            additional royalties, plus
                                            interest * * *.
----------------------------------------------------------------------------------------------------------------
206.458..................................  Determination of washing                  2            1            2
                                            allowances.
                                            (a) Arm's-length contracts.
                                            (1) * * * the washing
                                            allowance shall be the
                                            reasonable actual costs
                                            incurred by the lessee for
                                            washing the coal * * *
                                            However, before any deduction
                                            may be taken, the lessee must
                                            submit a completed page one
                                            of Form MMS-4292, Coal
                                            Washing Allowance Report, in
                                            accordance with paragraph
                                            (c)(1) of this section. A
                                            washing allowance may be
                                            claimed retroactively for a
                                            period of not more than 3
                                            months prior to the first day
                                            of the month that Form MMS-
                                            4292 is filed with MMS,
                                            unless MMS approves a longer
                                            period upon a showing of good
                                            cause by the lessee.
 
                                           (a)(3) * * * When MMS                  AUDIT PROCESS, see Note.
                                            determines that the value of
                                            the washing may be
                                            unreasonable, MMS will notify
                                            the lessee and give the
                                            lessee an opportunity to
                                            provide written information
                                            justifying the lessee's
                                            washing costs.
                                          ----------------------------------------------------------------------
                                           (b) Non-arm's-length or no          Hour burden covered under Sec.
                                            contract. (1) * * * the                    206.458(a)(1).
                                            washing allowance will be
                                            based upon the lessee's
                                            reasonable actual costs * *
                                            *. However, before any
                                            estimated or actual deduction
                                            may be taken, the lessee must
                                            submit a completed Form MMS-
                                            4292 in accordance with
                                            paragraph (c)(2) of this
                                            section. A washing allowance
                                            may be claimed retroactively
                                            for a period of not more than
                                            3 months prior to the first
                                            day of the month that Form
                                            MMS-4292 is filed with MMS,
                                            unless MMS approves a longer
                                            period upon a showing of good
                                            cause by the lessee * * *.
                                          ----------------------------------------------------------------------
                                           (b) * * * the lessee must                 1            1            1
                                            submit a completed Form MMS-
                                            4292 * * * (2)(iv) * * *
                                            After a lessee has elected to
                                            use either method for a wash
                                            plant, the lessee may not
                                            later elect to change to the
                                            other alternative without
                                            approval of MMS.
                                          ----------------------------------------------------------------------
                                           (b) * * * the lessee must                 1            1            1
                                            submit a completed Form MMS-
                                            4292 * * *. (2)(iv)(A) To
                                            compute depreciation, the
                                            lessee may elect to use
                                            either a straight-line
                                            depreciation method based on
                                            the life of equipment or on
                                            the life of the reserves
                                            which the wash plant
                                            services, whichever is
                                            appropriate, or a unit of
                                            production method. After an
                                            election is made, the lessee
                                            may not change methods
                                            without MMS approval * * *.
                                          ----------------------------------------------------------------------
                                           (c) Reporting requirements.         Hour burden covered under Sec.
                                            (1) Arm's-length contracts.                206.458(a)(1).
                                            (i) With the exception of
                                            those washing allowances
                                            specified in paragraphs
                                            (c)(1)(v) and (c)(1)(vi) of
                                            this section, the lessee
                                            shall submit page one of the
                                            initial Form MMS-4292 prior
                                            to, or at the same time, as
                                            the washing allowance
                                            determined pursuant to an
                                            arm's-length contract is
                                            reported on Form MMS-4430,
                                            Solid Minerals Production and
                                            Royalty Report * * *.

[[Page 58878]]

 
                                           (c)(1)(iii) After the initial
                                            reporting period and for
                                            succeeding reporting periods,
                                            lessees must submit page one
                                            of Form MMS-4292 within 3
                                            months after the end of the
                                            calendar year, or after the
                                            applicable contract or rate
                                            terminates or is modified or
                                            amended, whichever is
                                            earlier, unless MMS approves
                                            a longer period (during which
                                            period the lessee shall
                                            continue to use the allowance
                                            from the previous reporting
                                            period).
                                          ----------------------------------------------------------------------
                                           (c)(1)(iv) MMS may require             AUDIT PROCESS. See Note.
                                            that a lessee submit arm's-
                                            length washing contracts and
                                            related documents * * *.
                                          ----------------------------------------------------------------------
                                           (c)(2) Non-arm's-length or no       Hour burden covered under Sec.
                                            contract. (i) With the                     206.458(a)(1).
                                            exception of those washing
                                            allowances specified in
                                            paragraphs (c)(2)(v) and
                                            (c)(2)(vii) of this section,
                                            the lessee shall submit an
                                            initial Form MMS-4292 prior
                                            to, or at the same time as,
                                            the washing allowance
                                            determined pursuant to a non-
                                            arm's-length contract or no
                                            contract situation is
                                            reported on Form MMS-4430,
                                            Solid Minerals Production and
                                            Royalty Report * * *.
                                          ----------------------------------------------------------------------
                                           (c)(2)(iii) For calendar-year       Hour burden covered under Sec.
                                            reporting periods succeeding               206.458(a)(1).
                                            the initial reporting period,
                                            the lessee shall submit a
                                            completed Form MMS-4292
                                            containing the actual costs
                                            for the previous reporting
                                            period. If coal washing is
                                            continuing, the lessee shall
                                            include on Form MMS-4292 its
                                            estimated costs for the next
                                            calendar year * * *. Form MMS-
                                            4292 must be received by MMS
                                            within 3 months after the end
                                            of the previous reporting
                                            period, unless MMS approves a
                                            longer period (during which
                                            period the lessee shall
                                            continue to use the allowance
                                            from the previous reporting
                                            period)..
                                          ----------------------------------------------------------------------
                                           (c)(2)(vi) Upon request by             AUDIT PROCESS. See Note.
                                            MMS, the lessee shall submit
                                            all data used by the lessee
                                            to prepare its Forms MMS-4292
                                            * * *.
                                          ----------------------------------------------------------------------
                                           (c)(4) Washing allowances must      Hour burden covered under Sec.
                                            be reported as a separate                     210.201.
                                            line on the Form MMS-4430,
                                            unless MMS approves a
                                            different reporting procedure.
                                           (e) Adjustments * * *. (2) The
                                            lessee must submit a
                                            corrected Form MMS-4430 to
                                            reflect actual costs,
                                            together with any payment, in
                                            accordance with instructions
                                            provided by MMS.
----------------------------------------------------------------------------------------------------------------
206.460(d)...............................  Transportation allowances--         Hour burden covered under Sec.
                                            general.                                    218.201(b).
                                           (d) If * * * MMS determines
                                            that a lessee has improperly
                                            determined a transportation
                                            allowance authorized by this
                                            section, then the lessee
                                            shall pay any additional
                                            royalties, plus interest.
----------------------------------------------------------------------------------------------------------------
206.461..................................  Determination of                          2            1            2
                                            transportation allowances.
                                           (a) Arm's-length contracts.
                                            (1) * * * the transportation
                                            allowance shall be the
                                            reasonable, actual costs
                                            incurred by the lessee for
                                            transporting the coal * * *
                                            However, before any deduction
                                            may be taken, the lessee must
                                            submit a completed page one
                                            of Form MMS-4293, Coal
                                            Transportation Allowance
                                            Report, in accordance with
                                            paragraph (c)(1) of this
                                            section. A transportation
                                            allowance may be claimed
                                            retroactively for a period of
                                            not more than 3 months prior
                                            to the first day of the month
                                            that Form MMS-4293 is filed
                                            with MMS, unless MMS approves
                                            a longer period upon a
                                            showing of good cause by the
                                            lessee.
                                          ----------------------------------------------------------------------
                                           (a) Arm's-length contracts * *         AUDIT PROCESS. See Note.
                                            *. (3) When MMS determines
                                            that the value of the
                                            transportation may be
                                            unreasonable, MMS will notify
                                            the lessee and give the
                                            lessee an opportunity to
                                            provide written information
                                            justifying the lessee's
                                            transportation costs.
                                          ----------------------------------------------------------------------
                                           (b) Non-arm's-length or no          Hour burden covered under Sec.
                                            contract. (1) * * * the                    206.461(a)(1).
                                            transportation allowance will
                                            be based upon the lessee's
                                            reasonable actual costs.
                                           * * * However, before any
                                            estimated or actual deduction
                                            may be taken, the lessee must
                                            submit a completed Form MMS-
                                            4293 in accordance with
                                            paragraph (c)(2) of this
                                            section. A transportation
                                            allowance may be claimed
                                            retroactively for a period of
                                            not more than 3 months prior
                                            to the first day of the month
                                            that Form MMS-4293 is filed
                                            with MMS, unless MMS approves
                                            a longer period upon a
                                            showing of good cause by the
                                            lessee * * *.
                                          ----------------------------------------------------------------------

[[Page 58879]]

 
                                           (b) * * * the lessee must                 1            1            1
                                            submit a completed Form MMS-
                                            4293 * * * (2)(iv) * * *
                                            After a lessee has elected to
                                            use either method for a
                                            transportation system, the
                                            lessee may not later elect to
                                            change to the other
                                            alternative without approval
                                            of MMS.
                                          ----------------------------------------------------------------------
                                           (b) * * * the lessee must                 1            1            1
                                            submit a completed Form MMS-
                                            4293 * * * (2)(iv)(A) To
                                            compute depreciation, the
                                            lessee may elect to use
                                            either a straight-line
                                            depreciation method based on
                                            the life of equipment or on
                                            the life of the reserves
                                            which the transportation
                                            system services, whichever is
                                            appropriate, or a unit of
                                            production method. After an
                                            election is made, the lessee
                                            may not change methods
                                            without MMS approval.
                                          ----------------------------------------------------------------------
                                           (b) * * * the lessee must                 1            1            1
                                            submit a completed Form MMS-
                                            4293 * * * (3) A lessee may
                                            apply to MMS for exception
                                            from the requirement that it
                                            compute actual costs in
                                            accordance with paragraphs
                                            (b)(1) and (b)(2) of this
                                            section * * *.
                                          ----------------------------------------------------------------------
                                           (c) Reporting requirements.         Hour burden covered under Sec.
                                            (1) Arm's-length contracts.                206.461(a)(1).
                                            (i) With the exception of
                                            those transportation
                                            allowances specified in
                                            paragraphs (c)(1)(v) and
                                            (c)(1)(vi) of this section,
                                            the lessee shall submit page
                                            one of the initial Form MMS-
                                            4293 prior to, or at the same
                                            time as, the transportation
                                            allowance determined pursuant
                                            to an arm's-length contract
                                            is reported on Form MMS-4430,
                                            Solid Minerals Production and
                                            Royalty Report.
                                           (c)(1)(iii) After the initial
                                            reporting period and for
                                            succeeding reporting periods,
                                            lessees must submit page one
                                            of Form MMS-4293 within 3
                                            months after the end of the
                                            calendar year, or after the
                                            applicable contract or rate
                                            terminates or is modified or
                                            amended, whichever is
                                            earlier, unless MMS approves
                                            a longer period (during which
                                            period the lessee shall
                                            continue to use the allowance
                                            from the previous reporting
                                            period). Lessees may request
                                            special reporting procedures
                                            in unique allowance reporting
                                            situations, such as those
                                            related to spot sales.
                                          ----------------------------------------------------------------------
                                           (c)(1)(iv) MMS may require             AUDIT PROCESS. See Note.
                                            that a lessee submit arm's-
                                            length transportation
                                            contracts, production
                                            agreements, operating
                                            agreements, and related
                                            documents.
                                          ----------------------------------------------------------------------
                                           (c)(2) Non-arm's-length or no       Hour burden covered under Sec.
                                            contract. (i) With the                     206.461(a)(1).
                                            exception of those
                                            transportation allowances
                                            specified in paragraphs
                                            (c)(2)(v) and (c)(2)(vii) of
                                            this section, the lessee
                                            shall submit an initial Form
                                            MMS-4293 prior to, or at the
                                            same time as, the
                                            transportation allowance
                                            determined pursuant to a non-
                                            arm's-length contract or no
                                            contract situation is
                                            reported on Form MMS-4430,
                                            Solid Minerals Production and
                                            Royalty Report * * *.
                                           (c)(2)(iii) For calendar-year
                                            reporting periods succeeding
                                            the initial reporting period,
                                            the lessee shall submit a
                                            completed Form MMS-4293
                                            containing the actual costs
                                            for the previous reporting
                                            period * * * Form MMS-4293
                                            must be received by MMS
                                            within 3 months after the end
                                            of the previous reporting
                                            period, unless MMS approves a
                                            longer period (during which
                                            period the lessee shall
                                            continue to use the allowance
                                            from the previous reporting
                                            period).
                                          ----------------------------------------------------------------------
                                           (c)(2)(vi) Upon request by             AUDIT PROCESS. See Note.
                                            MMS, the lessee shall submit
                                            all data used to prepare its
                                            Form MMS-4293 * * *.
                                          ----------------------------------------------------------------------
                                           (c)(4) Transportation               Hour burden covered under Sec.
                                            allowances must be reported                   210.201.
                                            as a separate line item on
                                            Form MMS-4430, unless MMS
                                            approves a different
                                            reporting procedure.
                                           (e) Adjustments * * * (2) The
                                            lessee must submit a
                                            corrected Form MMS-4430 to
                                            reflect actual costs,
                                            together with any payment, in
                                            accordance with instructions
                                            provided by MMS.
                                          ----------------------------------------------------------------------
206.463..................................  In-situ and surface                       1            1            1
                                            gasification and liquefaction
                                            operations.
                                           If an ad valorem Federal coal
                                            lease is developed by in-situ
                                            or surface gasification or
                                            liquefaction technology, the
                                            lessee shall propose the
                                            value of coal for royalty
                                            purposes to MMS * * *.
                                          ----------------------------------------------------------------------
206.464..................................  Value enhancement of                      1            1            1
                                            marketable coal.

[[Page 58880]]

 
                                           If, prior to use, sale, or
                                            other disposition, the lessee
                                            enhances the value of coal
                                            after the coal has been
                                            placed in marketable
                                            condition in accordance with
                                            Sec.   206.456(h) of this
                                            subpart, the lessee shall
                                            notify MMS that such
                                            processing is occurring or
                                            will occur * * *.
----------------------------------------------------------------------------------------------------------------
                                           Part 210--Forms and Reports
 
                                       Subpart E--Solid Minerals, General
----------------------------------------------------------------------------------------------------------------
210.201 (a)(1)                             How do I submit Form MMS-4430,          .75        1,668        1,251
                                            Solid Minerals Production and
                                            Royalty Report?
                                           (a) What to submit. (1) You
                                            must submit a completed Form
                                            MMS-4430 for * * *.
----------------------------------------------------------------------------------------------------------------
210.202 (a)(1) and (c)(1)                  How do I submit sales                   .50        1,140          570
                                            summaries?
                                           (a) What to submit. (1) You
                                            must submit sales summaries
                                            for all coal and other solid
                                            minerals produced from
                                            Federal and Indian leases and
                                            for any remote storage site
                                            from which you sell Federal
                                            or Indian solid minerals * *
                                            *.
                                           (c) How to submit. (1) You
                                            should provide the sales
                                            summary data via electronic
                                            mail where possible. We will
                                            provide instructions and the
                                            proper email address for
                                            these submissions.
----------------------------------------------------------------------------------------------------------------
210.203 (a)                                How do I submit sales                     1           30           30
                                            contracts?
                                           (a) What to submit. You must
                                            submit sales contracts,
                                            agreements, and contract
                                            amendments for the sale of
                                            all coal and other solid
                                            minerals produced from
                                            Federal and Indian leases
                                            with ad valorem royalty terms.
----------------------------------------------------------------------------------------------------------------
210.204 (a)(1)...........................  How do I submit facility data?          .25          360           90
                                           (a) What to submit. (1) You
                                            must submit facility data if
                                            you operate a wash plant,
                                            refining, ore concentration,
                                            or other processing facility
                                            for any coal, sodium,
                                            potassium, metals, or other
                                            solid minerals produced from
                                            Federal or Indian leases with
                                            ad valorem royalty terms * *
                                            *.
----------------------------------------------------------------------------------------------------------------
210.205..................................  Will I need to submit                  AUDIT PROCESS. See Note.
                                            additional documents or
                                            evidence to MMS?
                                           (a) Federal and Indian lease
                                            terms allow us to request
                                            detailed statements,
                                            documents, or other evidence
                                            necessary to verify
                                            compliance * * *.
                                           (b) We will request this
                                            additional information as we
                                            need it * * *
----------------------------------------------------------------------------------------------------------------
                                         Subpart H--Geothermal Resources
----------------------------------------------------------------------------------------------------------------
210.351..................................  Required recordkeeping          Hour burden covered under OMB Control
                                                                                     Number 1010-0140.
                                           * * * [Geothermal] Records may
                                            be maintained on microfilm,
                                            microfiche, or other recorded
                                            media that are easily
                                            reproducible and readable * *
                                            *.
----------------------------------------------------------------------------------------------------------------
210.352..................................  Special forms and reports.                1            1            1
                                            [geothermal].
                                           The MMS may require submission
                                            of additional information on
                                            special forms or reports * *
                                            *.
----------------------------------------------------------------------------------------------------------------
210.353..................................  Monthly report of sales and     Hour burden covered under OMB Control
                                            royalty. A completed Report              Number 1010-0140.
                                            of Sales and Royalty
                                            Remittance (Form MMS-2014)
                                            must be submitted each month
                                            once sales or utilization of
                                            [geothermal] production occur
                                            * * *.
----------------------------------------------------------------------------------------------------------------
                                     Part 212--Records and Forms Maintenance
 
                                       Subpart E--Solid Minerals--General
----------------------------------------------------------------------------------------------------------------
212.200 (a)..............................  Maintenance of and access to            .25        4,064        1,016
                                            records
                                           (a) All records pertaining to
                                            Federal and Indian solid
                                            minerals leases shall be
                                            maintained by a lessee,
                                            operator, revenue payor, or
                                            other person for 6 years
                                            after the records are
                                            generated unless the record
                                            holder is notified, in
                                            writing, that records must be
                                            maintained for a longer
                                            period. When an audit or
                                            investigation is underway,
                                            records shall be maintained
                                            until the record holder is
                                            released by written notice of
                                            the obligation to maintain
                                            records.
----------------------------------------------------------------------------------------------------------------

[[Page 58881]]

 
                                         Subpart H--Geothermal Resources
----------------------------------------------------------------------------------------------------------------
212.351..................................  Required recordkeeping and           Hour burden covered under OMB
                                            reports                         Control Numbers 1010-0140 (for Form
                                           (a) Records. Each lessee,       MMS-2014) and 1010-0139 (for Form MMS-
                                            operator, revenue payor, or                    4054).
                                            other person shall make and
                                            retain accurate and complete
                                            records necessary to
                                            demonstrate that payments of
                                            royalties, rentals, and other
                                            amounts due under Federal
                                            geothermal leases are in
                                            compliance with laws, lease
                                            terms, regulations, and
                                            orders. Records covered by
                                            this section include those
                                            specified by lease terms,
                                            notices, and orders * * *.
----------------------------------------------------------------------------------------------------------------
                                           (b) Period for keeping          Hour burden covered under OMB Control
                                            records. All records           Numbers 1010-0140 (for Form MMS-2014)
                                            pertaining to Federal            and 1010-0139 (for Form MMS-4054).
                                            geothermal leases shall be
                                            maintained by a lessee,
                                            operator, revenue payor, or
                                            other person for 6 years
                                            after the records are
                                            generated unless the
                                            recordholder is notified in
                                            writing, before the
                                            expiration of that 6-year
                                            period that records must be
                                            maintained for a longer
                                            period for purposes of audit
                                            or investigation. When an
                                            audit or investigation is
                                            underway, records shall be
                                            maintained until the
                                            recordholder is released by
                                            written notice of the
                                            obligation to maintain
                                            records.
----------------------------------------------------------------------------------------------------------------
                                        Part 217--Audits and Inspections
 
                                                 Subpart E--Coal
----------------------------------------------------------------------------------------------------------------
217.200..................................  Audits                                 AUDIT PROCESS. See Note.
                                           An audit of the accounts and
                                            books of operators/lessees
                                            for the purpose of
                                            determining compliance with
                                            Federal lease terms relating
                                            to Federal royalties may be
                                            required * * * The operator/
                                            lessee shall furnish, free of
                                            charge, duplicate copies of
                                            audit reports that express
                                            opinions on such compliance
                                            to the Associate Director for
                                            Minerals Revenue Management *
                                            * *.
----------------------------------------------------------------------------------------------------------------
                                         Subpart F--Other Solid Minerals
----------------------------------------------------------------------------------------------------------------
217.250..................................  Audits                                 AUDIT PROCESS. See Note
                                           An audit of the lessee's
                                            accounts and books may be
                                            made annually * * * The
                                            lessee shall furnish free of
                                            cost duplicate copies of such
                                            annual or other audits * * *.
----------------------------------------------------------------------------------------------------------------
                                         Subpart G--Geothermal Resources
----------------------------------------------------------------------------------------------------------------
217.300..................................  Audits or review of records            AUDIT PROCESS. See Note.
                                           The Secretary, or his/her
                                            authorized representative,
                                            will initiate and conduct
                                            audits or reviews relating *
                                            * * Audits or reviews will
                                            also relate to compliance * *
                                            * All audits or reviews will
                                            be conducted in accordance
                                            with * * *.
----------------------------------------------------------------------------------------------------------------
                      Part 218--Collection of Royalties, Rentals, Bonuses, and Other Monies
                        Due the Federal Government and Credits and Incentives Due Lessees
 
                                         Subpart B--Oil and Gas, General
----------------------------------------------------------------------------------------------------------------
218.57(a)(2) and (b)(3)(i)...............  Providing information and                 1            1            1
                                            claiming rewards.
                                           (a) General * * * (2) If a
                                            person has any information he
                                            or she believes would be
                                            valuable to MMS, that person
                                            (``informant'') should submit
                                            the information in writing,
                                            in the form of a letter * * *.
                                           (b) Claim for reward * * * (3)
                                            To file a claim for reward
                                            the informant must: (i)
                                            Notify the Director, MMS * *
                                            * that he/she is claiming a
                                            reward.
----------------------------------------------------------------------------------------------------------------
                                       Subpart E--Solid Minerals--General
----------------------------------------------------------------------------------------------------------------
218.201(b)...............................  Method of payment.............        .0055        1,368            8
                                           You must tender all payments *
                                            * * except as follows: * * *
                                            (b) For Form MMS-4430
                                            payments, include both your
                                            customer identification and
                                            your customer document
                                            identification numbers on
                                            your payment document * * *.
----------------------------------------------------------------------------------------------------------------
218.203(b)...............................  Recoupment of overpayments on             1            1            1
                                            Indian mineral leases.
                                           (a) * * * a payor may recoup
                                            the overpayment through a
                                            recoupment on Form MMS-4430
                                            against the current month's
                                            royalties * * *.

[[Page 58882]]

 
                                           (b) With written permission
                                            authorized by tribal statute
                                            or resolution, a payor may
                                            recoup an overpayment against
                                            royalties or other revenues
                                            owed in that month under
                                            other leases for which that
                                            tribe is the lessor. A copy
                                            of the tribe's written
                                            permission must be furnished
                                            to MMS * * * [following]
                                            instructions * * *.
----------------------------------------------------------------------------------------------------------------
                                         Subpart F--Geothermal Resources
----------------------------------------------------------------------------------------------------------------
218.300..................................  Payment of royalties, rentals,  Hour burden covered under OMB Control
                                            and deferred bonuses.                    Number 1010-0140.
                                           * * * the lessee shall submit
                                            all rental and deferred bonus
                                            payments when due and shall
                                            pay in value all royalties in
                                            the amount determined by MMS
                                            to be due.
----------------------------------------------------------------------------------------------------------------
218.301..................................  Method of payment.............  Hour burden covered under OMB Control
                                           The payor shall tender all                Number 1010-0140.
                                            payments * * *.
----------------------------------------------------------------------------------------------------------------
218.304..................................  May I credit rental towards     Hour burden covered under OMB Control
                                            direct use fees?.                        Number 1010-0140.
                                           * * * You must pay the direct
                                            use fees in addition to the
                                            annual rental due.
----------------------------------------------------------------------------------------------------------------
218.305..................................  How do I pay advanced           Hour burden covered under OMB Control
                                            royalties I owe under BLM                Number 1010-0140.
                                            regulations?.
                                           If you pay advanced royalties
                                            under 43 CFR 3212.15(a)(1) to
                                            retain your lease:.
                                           (a) You must pay an advanced
                                            royalty monthly equal to the
                                            average monthly royalty you
                                            paid under 30 CFR part 206,
                                            subpart H * * *.
----------------------------------------------------------------------------------------------------------------
218.306..................................  May I receive a credit against            4            1            4
                                            production royalties for in-
                                            kind deliveries of
                                            electricity I provide under
                                            contract to a state or county
                                            government?.
                                           (a) You may receive a credit
                                            against royalties * * * if: *
                                            * * (2) The MMS approves in
                                            advance your contract * * *.
                                          ----------------------------------------------------------------------
                                           (b) * * * You must pay in       Hour burden covered under OMB Control
                                            money any royalty amount that            Number 1010-0140.
                                            is not offset by the credit
                                            allowed under this section *
                                            * *.
----------------------------------------------------------------------------------------------------------------
    Total Burden......................................................................        9,880       3,670
----------------------------------------------------------------------------------------------------------------
Note: AUDIT PROCESS--The Office of Regulatory Affairs determined that the audit process is exempt from the
  Paperwork Reduction Act of 1995 because MMS staff asks non-standard questions to resolve exceptions.

    Estimated Annual Reporting and Recordkeeping ``Non-hour Cost'' 
Burden: We have identified no ``non-hour cost'' burden associated with 
the collection of information.
    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 March 7, 2007 (72 FR 10244), 
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 
November 16, 2007.
    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. 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 view, we cannot guarantee that we will be able 
to do so.
    MMS Information Collection Clearance Officer: Arlene Bajusz (202) 
208-7744.

    Dated: October 11, 2007.
Richard Adamski,
Acting Associate Director for Minerals Revenue Management.
[FR Doc. E7-20424 Filed 10-16-07; 8:45 am]
BILLING CODE 4310-MR-P