[Federal Register Volume 73, Number 126 (Monday, June 30, 2008)]
[Notices]
[Pages 36894-36897]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-14768]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service

[Docket No. MMS-2007-OMM-0078]


MMS Information Collection Activity: 1010-0041 Oil and Gas 
Production Rates, Extension of a Collection; Submitted for Office of 
Management and Budget (OMB) Review; Comment Request

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Notice of extension of an information collection (1010-0041).

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SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), we 
are notifying the public that we have submitted to OMB an information 
collection request (ICR) to renew approval of the paperwork 
requirements in the regulations under 30 CFR part 250, subpart K, Oil 
and Gas Production Rates, and related documents. This notice also 
provides the public a second opportunity to comment on the paperwork 
burden of these regulatory requirements.

DATES: Submit written comments by July 30, 2008.

ADDRESSES: You should submit comments directly to the Office of 
Information and Regulatory Affairs, OMB, Attention: Desk Officer for 
the Department of the Interior (1010-0041), either by fax (202) 395-
6566 or e-mail ([email protected]).
    Please also send a copy to MMS by either of the following methods:
     http://www.regulations.gov. Under the tab ``More Search 
Options,'' click Advanced Docket Search, then select ``Minerals 
Management Service'' from the agency drop-down menu, then click 
``submit.'' In the Docket ID column, select MMS-2007-OMM-0078 to submit 
public comments and to view supporting and related materials available 
for this rulemaking. 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. The MMS will post all comments.
     Mail or hand-carry comments to the Department of the 
Interior; Minerals Management Service; Attention: Cheryl Blundon; 381 
Elden Street, MS-4024; Herndon, Virginia 20170-4817. Please reference 
``Information Collection 1010-0041'' in your subject line and mark your 
message for return receipt. Include your name and return address in 
your message text.

[[Page 36895]]


FOR FURTHER INFORMATION CONTACT: Cheryl Blundon, Regulations and 
Standards Branch, (703) 787-1607. You may also contact Cheryl Blundon 
to obtain a copy, at no cost, of the regulations and forms that require 
the subject collection of information.

SUPPLEMENTARY INFORMATION:
    Title: 30 CFR part 250, subpart K, Oil and Gas Production Rates.
    Forms: MMS-126, MMS-127, MMS-128, and MMS-140.
    OMB Control Number: 1010-0041.
    Abstract: The Outer Continental Shelf (OCS) Lands Act, as amended 
(43 U.S.C. 1331 et seq. and 43 U.S.C. 1801 et seq.), authorizes the 
Secretary of the Interior (Secretary) to prescribe rules and 
regulations to administer leasing of the OCS. Such rules and 
regulations will apply to all operations conducted under a lease. 
Operations on the OCS must preserve, protect, and develop oil and 
natural gas resources in a manner that is consistent with the need to 
make such resources available to meet the Nation's energy needs as 
rapidly as possible; to balance orderly energy resource development 
with protection of human, marine, and coastal environments; to ensure 
the public a fair and equitable return on the resources of the OCS; and 
to preserve and maintain free enterprise competition.
    Section 5(a) of the OCS Lands Act requires the Secretary to 
prescribe rules and regulations ``to provide for the prevention of 
waste, and conservation of the natural resources of the Outer 
Continental Shelf, and the protection of correlative rights therein'' 
and to include provisions ``for the prompt and efficient exploration 
and development of a lease area.''
    Section 1334(g)(2) states `` * * * the lessee shall produce such 
oil or gas, or both, at rates * * * to assure the maximum rate of 
production which may be sustained without loss of ultimate recovery of 
oil or gas, or both, under sound engineering and economic principles, 
and which is safe for the duration of the activity covered by the 
approved plan.''
    In addition, MMS also issues various Notices to Lessees (NTLs) and 
Operators to clarify and provide additional guidance on some aspects of 
the regulations, as well as various forms to capture the data and 
information. The current subpart K regulations specify the use of forms 
MMS-126 (Well Potential Test Report), MMS-127 (Sensitive Reservoir 
Information Report), MMS-128 (Semiannual Well Test Report) and form 
MMS-140 (Bottomhole Pressure Survey Report). Form MMS-140 is used in 
the Gulf of Mexico OCS Region (GOMR) for submitting the results of 
static bottomhole pressure surveys required under Sec.  250.1104(c).
    Regulations implementing these responsibilities are under 30 CFR 
part 250. Responses are mandatory or are required to obtain or retain a 
benefit. No questions of a ``sensitive'' nature are asked. The MMS 
protects information considered proprietary under the Freedom of 
Information Act (5 U.S.C. 552) and its implementing regulations (43 CFR 
2), and under regulations at 30 CFR part 250.197, ``Data and 
information to be made available to the public or for limited 
inspection,'' 30 CFR part 252, ``OCS Oil and Gas Information Program.'' 
Proprietary information concerning geological and geophysical data will 
be protected according to 43 U.S.C. 1352.
    The information collected under subpart K is used in our efforts to 
conserve natural resources, prevent waste, and protect correlative 
rights, including the Government's royalty interest. Specifically, MMS 
uses the information to:
     Evaluate requests to burn liquid hydrocarbons and vent and 
flare gas to ensure that these requests are appropriate;
     To determine if a maximum production or efficient rate is 
required; and,
     To review applications for downhole commingling to ensure 
that action does not result in harm to ultimate recovery.
    Forms are also submitted to MMS and their purposes are:
    Form 126--Well Potential Test Report--The MMS uses this information 
for reservoir, reserves, and conservation analyses, including the 
determination of maximum production rates (MPRs) when necessary for 
certain oil and gas completions. This requirement implements the 
conservation provisions of the OCS Lands Act and 30 CFR part 250. The 
information obtained from the well potential test is essential to 
determine if an MPR is necessary for a well and to establish the 
appropriate rate. It is not possible to specify an MPR in the absence 
of information about the production rate capability (potential) of the 
well.
    Form MMS-127, Sensitive Reservoir Information Report--The MMS uses 
this information to determine whether a rate-sensitive reservoir is 
being prudently developed. This represents an essential control 
mechanism that MMS may use to regulate production rates from sensitive 
reservoirs. Occasionally, the information available on a reservoir, 
early in its producing life, may indicate it to be non-sensitive, while 
later and more complete information would establish the reservoir as 
being sensitive. Production from a well completed in the gas cap of a 
sensitive reservoir requires approval from the Regional Supervisor. The 
information submitted on this form provides reservoir parameters that 
are revised at least annually or sooner if reservoir development 
results in a change in reservoir interpretation. The engineers and 
geologists use the information for rate control and reservoir studies
    Form MMS-128, Semiannual Well Test Report--The MMS uses this 
information to evaluate the results of well tests to determine if 
reservoirs are being depleted in a manner that will lead to the 
greatest ultimate recovery of hydrocarbons. This information is 
collected to determine the capability of hydrocarbon wells and to 
evaluate and verify an operator's approved maximum production rate if 
assigned. The form was designed to present current well data on a 
semiannual basis to permit the updating of permissible producing rates, 
and to provide the basis for estimates of currently remaining 
recoverable gas reserves.
    Form MMS-140, Bottomhole Pressure Survey Report--The MMS uses the 
information to effectively manage reservoirs in our efforts to conserve 
natural resources, prevent waste, and protect correlative rights, 
including the Government's royalty interest. Specifically, MMS uses the 
information in reservoir evaluations to determine maximum production 
and efficient rates; and to review applications for downhole 
commingling to ensure that action does not result in harm to ultimate 
recovery or undervalued royalties.
    Frequency: On occasion, monthly, semi-annually, annually, and as a 
result of situations encountered.
    Estimated Number and Description of Respondents: Approximately 130 
Federal oil and gas lessees.
    Estimated Reporting and Recordkeeping ``Hour'' Burden: The 
estimated annual ``hour'' burden for this information collection is a 
total of 41,511 hours. The following chart details the individual 
components and estimated hour burdens. In calculating the burdens, we 
assumed that respondents perform certain requirements in the normal 
course of their activities. We consider these to be usual and customary 
and took that into account in estimating the burden.

[[Page 36896]]



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                                         Reporting and
  Citation 30 CFR 250  Subpart K         recordkeeping         Hour burden      Average No. of     Annual burden
                                          requirement                         annual  responses        hours
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                                                       Non-Hour cost burdens
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                          Requests
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1101(b)..........................  Request approval to                    5  33 requests........             165
                                    produce within 500 feet
                                    of a lease line.
                                                            ----------------------------------------------------
                                                                     $3,300 fee x 33 requests = $108,900
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1101(c)..........................  Request approval to                   12  51 requests........             612
                                    produce gas cap of a
                                    sensitive reservoir.
                                                            ----------------------------------------------------
                                                                     $4,200 fee x 51 requests = $214,200
                                                            ----------------------------------------------------
1102(b)(6).......................  Request extension of                  .5  37 requests........              19
                                    time to submit results
                                    of semiannual well test.
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1103(a)..........................  Request approval of test              .5  37 requests........              19
                                    periods of less than 4
                                    hours and pretest
                                    stabilization periods
                                    of less than 6 hours.
----------------------------------------------------------------------------------------------------------------
1105(a), (b).....................  Request special approval              .5  1,007 requests.....             504
                                    to flare or vent oil-
                                    well gas.
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1105(c)..........................  Request approval to burn              .5  60 requests........              30
                                    produced liquid
                                    hydrocarbons.
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    Subtotal.....................  ........................  ..............  1,225 responses....           1,349
                                  ------------------------------------------------------------------------------
                                                                                $323,100 non-hour cost burden
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                                                   Submittals
----------------------------------------------------------------------------------------------------------------
1102.............................  Submit form MMS-126.....               3  1,325 forms........           3,975
                                  ------------------------------------------------------------------------------
                                   Submit form MMS-127.....             2.2  2,189 forms........           4,816
                                  ------------------------------------------------------------------------------
                                   Submit form MMS-128 *...           0.5-3  13,000 forms in GOM         1,336 *
                                                                              1,336 *.
                                                                            ---------------------
                                                                             600 forms in POCS..  ..............
----------------------------------------------------------------------------------------------------------------
1102(a)(5).......................  Submit alternative plan                1  1 plan.............               1
                                    for overproduction
                                    status--MMS is not
                                    currently collecting
                                    this information--this
                                    is minimal burden
                                    requirement.
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1103(c)..........................  Provide advance notice                .5  10 notices.........               5
                                    of time and date of
                                    well tests.
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1104(c)..........................  Submit results of all                 14  1,270 surveys......          17,780
                                    static bottomhole
                                    pressure surveys
                                    obtained by lessee.
                                    Information is
                                    submitted on form MMS-
                                    140 in the Gulf of
                                    Mexico Region.
----------------------------------------------------------------------------------------------------------------
1105(f)..........................  Submit monthly reports                 2  3 operators x 12                 72
                                    of flared or vented gas                   mos. = 36.
                                    containing H2S.
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1105(f)..........................   H2S Contingency, Exploration, or Development and Production                0
                                         Plans--burden covered under 1010-0141 and 1010-0049
----------------------------------------------------------------------------------------------------------------
1106.............................  Submit application to                  6  48 applications....             288
                                    downhole commingle
                                    hydrocarbons.
                                                            ----------------------------------------------------
                                                                   $4,900 fee x 48 applications = $235,200
----------------------------------------------------------------------------------------------------------------
1107(b)..........................  Submit proposed plan for              12  14 plans...........             168
                                    enhanced recovery
                                    operations.
----------------------------------------------------------------------------------------------------------------
1107(c)..........................  Submit periodic reports                2  77 reports.........             154
                                    of volumes of oil, gas,
                                    or other substances
                                    injected, produced, or
                                    reproduced.
----------------------------------------------------------------------------------------------------------------
1100-1107........................  General departure or                   1  120 survey waivers.             120
                                    alternative compliance
                                    requests not
                                    specifically covered
                                    elsewhere in subpart K,
                                    including bottomhole
                                    pressure survey waivers
                                    and reservoir
                                    reclassification
                                    requests.
                                                            ----------------------------------------------------

[[Page 36897]]

 
                                                                          6  20 requests........             120
----------------------------------------------------------------------------------------------------------------
    Subtotal.....................  ........................  ..............  18,710 responses...          28,835
 
                                                                                $235,200 non-hour cost burden
----------------------------------------------------------------------------------------------------------------
                                                  Recordkeeping
----------------------------------------------------------------------------------------------------------------
1105(d), (e).....................  Maintain records for 2                13  869 platforms......          11,297
                                    years detailing gas
                                    flaring or venting.
----------------------------------------------------------------------------------------------------------------
1105(d), (e).....................  Maintain records for 2                .5  60 occurrences.....              30
                                    years detailing liquid
                                    hydrocarbon burning.
----------------------------------------------------------------------------------------------------------------
    Subtotal.....................  ........................  ..............  929 responses......          11,327
----------------------------------------------------------------------------------------------------------------
    Total Burden.................  ........................  ..............  20,864 responses...          41,511
                                                                            ------------------------------------
                                                                               $558,300 Non-Hour Cost Burdens
----------------------------------------------------------------------------------------------------------------
*Reporting burden for this form is estimated to average 0.5 to 3 hours per form depending on the number of well
  tests reported, including the time for reviewing instructions, gathering and maintaining data, and completing
  and reviewing the form. See breakdown for form MMS-128 above.

    Estimated Reporting and Recordkeeping ``Non-Hour Cost'' Burden: We 
have identified three non-hour cost burdens. Section 250.1101(b) 
requires a fee for a gas cap production request. Section 250.1101(c) 
requires a fee to produce within 500 feet of a lease line. Section 
250.1106 requests a fee for a downhole commingling request. We estimate 
a total reporting ``non-hour cost'' burden of $558,300 and we have not 
identified any other ``non-hour cost'' burdens associated with this 
collection of information.
    Public Disclosure Statement: The PRA (44 U.S.C. 3501, et seq.) 
provides that an agency may not conduct or sponsor a collection of 
information unless it displays a currently valid OMB control number. 
Until OMB approves a collection of information, you are not obligated 
to respond.
    Comments: Section 3506(c)(2)(A) of the PRA (44 U.S.C. 3501, et 
seq.) requires each agency `` * * * to provide notice * * * and 
otherwise consult with members of the public and affected agencies 
concerning each proposed collection of information * * * '' Agencies 
must specifically solicit comments to: (a) Evaluate whether the 
proposed collection of information is necessary for the agency to 
perform its duties, including whether the information is useful; (b) 
evaluate the accuracy of the agency's estimate of the burden of the 
proposed collection of information; (c) enhance the quality, 
usefulness, and clarity of the information to be collected; and (d) 
minimize the burden on the respondents, including the use of automated 
collection techniques or other forms of information technology.
    To comply with the public consultation process, on January 15, 
2008, we published a Federal Register notice (73 FR 2522) announcing 
that we would submit this ICR to OMB for approval. The notice provided 
the required 60-day comment period. In addition, Sec.  250.199 provides 
the OMB control number for the information collection requirements 
imposed by the 30 CFR part 250 regulations and forms. The regulation 
also informs the public that they may comment at any time on the 
collections of information and provides the address to which they 
should send comments. We have received no comments in response to these 
efforts.
    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 30, 2008.
    Public Availability of Comments: Before including your address, 
phone number, e-mail address, or other personal identifying information 
in your comment, you should be aware that your entire comment--
including your personal identifying information--may be made publicly 
available at any time. While you can ask us in your comment to withhold 
your personal identifying information from public review, we cannot 
guarantee that we will be able to do so.
    MMS Information Collection Clearance Officer: Arlene Bajusz (202) 
208-7744.

    Dated: June 16, 2008.
E.P. Danenberger,
Chief, Office of Offshore Regulatory Programs.
[FR Doc. E8-14768 Filed 6-27-08; 8:45 am]
BILLING CODE 4310-MR-P