[Federal Register Volume 73, Number 111 (Monday, June 9, 2008)]
[Notices]
[Pages 32597-32600]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-12817]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service

[Docket No. MMS-2008-MRM-0022]


Agency Information Collection Activities: Proposed Collection, 
Comment Request

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Notice of an extension of a currently approved information 
collection (OMB Control Number 1010-0107).

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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 the Office of 
Management and Budget (OMB) an information collection request (ICR) to 
renew approval of the paperwork requirements in the regulations under 
30 part CFR 218, regarding (1) Cross-lease netting in calculation of 
late-payment interest; (2) designating a designee; and (3) recoupment 
of overpayments on Indian oil and gas leases. This notice also provides 
the public a second opportunity to comment on the paperwork burden of 
the regulatory requirements. We shortened the title of this ICR to meet 
OMB requirements. The new title of this

[[Page 32598]]

information collection request (ICR) is ``30 CFR Part 218, Collection 
of Monies Due the Federal Government.'' The form associated with this 
collection is Form MMS-4425, Designation Form for Royalty Payment 
Responsibility.

DATES: Submit written comments on or before July 9, 2008.

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 1010-0107).
    You also may submit comments by the following methods:
     Electronically go to http://www.regulations.gov. In the 
``Comment or Submission'' column, enter ``MMS-2008-MRM-0022'' to view 
supporting and related materials for this ICR. Click on ``Send a 
comment or submission'' link to submit public comments. Information on 
using Regulations.gov, including instructions for accessing documents, 
submitting comments, and viewing the docket after the close of the 
comment period, is available through the site's ``User Tips'' link. All 
comments submitted will be posted to the docket.
     Mail comments to Hyla Hurst, Regulatory Specialist, 
Minerals Management Service, Minerals Revenue Management, P.O. Box 
25165, MS 302B2, Denver, Colorado 80225. Please reference ICR 1010-0107 
in your comments.
     Hand-carry comments or use an overnight courier service. 
Our courier address is Building 85, Room A-614, Denver Federal Center, 
West 6th Ave. and Kipling Blvd., Denver, Colorado 80225. Please 
reference ICR 1010-0107 in your comments.

FOR FURTHER INFORMATION CONTACT: Hyla Hurst, telephone (303) 231-3495, 
or e-mail [email protected]. You may also contact Hyla Hurst to obtain 
copies, at no cost, of (1) The ICR, (2) any associated forms, and (3) 
the regulations that require the subject collection of information.

SUPPLEMENTARY INFORMATION:
    Title: 30 CFR Part 218, Collection of Monies Due the Federal 
Government.
    OMB Control Number: 1010-0107.
    Bureau Form Number: Form MMS-4425.
    Abstract: The Secretary of the U.S. Department of the Interior is 
responsible for 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), the Indian Mineral Development 
Act of 1982 (Pub. L. 97-382-Dec. 22, 1982), 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 and other mineral revenues from lessees who 
produce minerals, and distributing the funds collected in accordance 
with applicable laws. The Secretary has a trust responsibility to 
manage Indian lands and seek advice and information from Indian 
beneficiaries. The MMS performs the mineral revenue management 
functions and assists the Secretary in carrying out the Department's 
trust responsibility for Indian lands. Public laws pertaining to 
mineral revenues are on our Web site at http://www.mrm.mms.gov/Laws_R_D/PublicLawsAMR.htm.
    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 in an 
amount or value of production from the leased lands. The lessee is 
required to report various kinds of information to the lessor relative 
to the disposition of the leased minerals. Such information 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.
    The burden hour and requirements in Sec.  218.203 have been moved 
to collection 1010-0120, Solid Minerals and Geothermal Collections 
(expires December 31, 2010) and are therefore removed from this 
collection. This change enables program-wide review of all information 
collections for solid minerals and geothermal resources. This ICR 
covers unique reporting circumstances including (1) Cross-lease netting 
in calculation of late-payment interest; (2) designation of designee; 
and (3) tribal permission for recoupment on Indian oil and gas leases.

Cross-Lease Netting in Calculation of Late-Payment Interest

    Regulations at Sec.  218.54 require MMS to assess interest on 
unpaid or underpaid amounts. The MMS distributes these interest 
revenues to states, Indian tribes, and the U.S. Treasury, based on 
financial lease distribution information. Current regulations at Sec.  
218.42 provide that an overpayment on a lease or leases may be offset 
against an underpayment on a different lease or leases to determine the 
net payment subject to interest, when certain conditions are met. This 
is called cross-lease netting. However, RSFA sections 6(a), (b), and 
(c) require MMS to pay interest on lessees' Federal oil and gas 
overpayments made on or after February 13, 1997 (6 months after the 
August 13, 1996, enactment of RSFA). The MMS implemented this RSFA 
provision in 1997 and began calculating interest on both underpayments 
and overpayments for Federal oil and gas leases, making the cross-lease 
netting provisions at Sec.  218.42 no longer applicable for these 
leases. The MMS estimates that, in about seven cases per year, lessees 
must comply with the provisions of Sec.  218.42(b) and (c) for Indian 
tribal leases or Federal leases other than oil and gas, demonstrating 
that cross-lease netting is correct by submitting production reports, 
pipeline allocation reports, or other similar documentary evidence. 
This information is necessary for MMS to determine the correct amount 
of interest owed by the lessee and to ensure proper value is collected.

Designation of Designee

    The RSFA established that lessees (owners, primarily, of operating 
rights, or secondarily, lease record title) are responsible for making 
royalty and related payments on Federal oil and gas leases. These RSFA 
requirements are codified at Sec.  218.52. It is common, however, for a 
payor rather than a lessee to make these payments. When a payor makes 
payments on behalf of a lessee, RSFA section 6(g) requires that the 
lessee designate the payor as its designee and notify MMS of this 
arrangement in writing. The MMS designed Form MMS-4425, Designation 
Form for Royalty Payment Responsibility, to request all the information 
necessary for lessees to comply with these RSFA requirements when they 
choose to designate an agent to pay for them.

Tribal Permission for Recoupment on Indian Oil and Gas Leases

    In order to report cross-lease netting on Indian oil and gas 
leases, lessees must also comply with regulations at Sec.  218.53(b), 
allowing only lessees with written permission from the tribe to recoup 
overpayments on one lease against a different lease for which the tribe 
is the lessor. The payor must furnish MMS with a copy of the tribe's 
written permission. Generally, a payor may recoup an overpayment 
against the current month's royalties or other revenues owed on the 
same tribal lease. For any month, a payor may not recoup more than 50 
percent of the royalties or

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other revenues owed in that month, under an individual allotted lease, 
or more than 100 percent of the royalties or other revenues owed in 
that month, under a tribal lease. Lessees use Form MMS-2014, Report of 
Sales and Royalty Remittance (burden hours covered under ICR 1010-0140, 
expires November 30, 2009), for oil and gas lease recoupments.
    The MMS is requesting OMB's approval to continue to collect this 
information. Not collecting this information would limit the 
Secretary's ability to discharge the duties of the office and may also 
result in loss of royalty payments. Proprietary information submitted 
is protected, and there are no questions of a sensitive nature included 
in this information collection. The requirement to respond is 
mandatory.
    Frequency: On occasion.
    Estimated Number and Description of Respondents: 1,612 Federal and 
Indian lessees.
    Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 1,219 
hours.
    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
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                                                                                            Average
                                             Reporting and recordkeeping         Hour      number of    Annual
        Citation 30 CFR part 218                     requirement                burden      annual      burden
                                                                                           responses     hours
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          Subpart A--General Provisions-- Cross-lease netting in calculation of late-payment interest.
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218.42(b) and (c)......................  Cross-lease netting in calculation
                                          of late-payment interest. (b)
                                          Royalties attributed to production
                                          from a lease or leases which
                                          should have been attributed to
                                          production from a different lease
                                          or leases may be offset * * * if *
                                          * * the payor submits production
                                          reports, pipeline allocation
                                          reports, or other similar
                                          documentary evidence pertaining to
                                          the specific production involved
                                          which verifies the correct
                                          production information * * *
----------------------------------------------------------------------------------------------------------------
                                         (c) If MMS assesses late-payment              2           7          14
                                          interest and the payor asserts
                                          that some or all of the interest
                                          is not owed... the burden is on
                                          the payor to demonstrate that the
                                          exception applies * * *
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                    Subpart B--Oil and Gas, General--How does a lessee designate a Designee?
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218.52(a), (c), and (d)................  How does a lessee designate a
                                          Designee? (a) If you are a lessee
                                          under 30 U.S.C. 1701(7), and you
                                          want to designate a person to make
                                          all or part of the payments due
                                          under a lease on your behalf * * *
                                          you must notify MMS * * * in
                                          writing of such designation * * *
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                                         (c) If you want to terminate a
                                          designation * * * you must provide
                                          [the following] to MMS in writing
                                          * * *
                                         (d) MMS may require you to provide         0.75       1,600       1,200
                                          notice when there is a change in
                                          the percentage of your record
                                          title or operating rights
                                          ownership. The MMS currently uses
                                          Form MMS-4425, Designation Form
                                          for Royalty Payment
                                          Responsibility, to collect this
                                          information.
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              Subpart B--Oil and Gas, General--Recoupment of overpayments on Indian mineral leases.
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218.53(b)..............................  Recoupment of overpayments on                 1           5           5
                                          Indian mineral leases. (b) With
                                          written permission authorized by
                                          tribal statute or resolution, a
                                          payor may recoup an overpayment
                                          against royalties or other
                                          revenues owed * * * under other
                                          leases * * * A copy of the tribe's
                                          written permission must be
                                          furnished to MMS * * *
                                        ------------------------------------------------------------------------
        Total Burden...................  ...................................  ..........       1,612       1,219
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    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 August 9, 2007 (72 FR 44853), 
announcing that we would submit this ICR to OMB for

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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 
July 9, 2008.
    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, be advised 
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 from public review your personal 
identifying information, we cannot guarantee that we will be able to do 
so.
    MMS Information Collection Clearance Officer: Arlene Bajusz (202) 
208-7744.

    Dated: May 5, 2008.
Walter D. Cruickshank,
Acting Associate Director for Minerals Revenue Management.
 [FR Doc. E8-12817 Filed 6-6-08; 8:45 am]
BILLING CODE 4310-MR-P