[Federal Register Volume 73, Number 208 (Monday, October 27, 2008)]
[Notices]
[Pages 63723-63730]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-25582]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service

[Docket No. MMS-2008-MRM-0033]


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 1010-0087).

-----------------------------------------------------------------------

SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), we 
are inviting comments on a collection of information that we will 
submit to the Office of Management and Budget (OMB) for review and 
approval. We changed the title to meet OMB requirements. The previous 
title of this information collection request (ICR) was ``30 CFR part 
227--Delegation to States; 30 CFR part 228--Cooperative Activities with 
States and Indian Tribes; and 30 CFR part 229--Delegation to States.'' 
The new title is ``30 CFR parts 227, 228, and 229, Delegated and 
Cooperative Activities with States and Indian Tribes.''

DATES: Submit written comments on or before December 26, 2008.

[[Page 63724]]


ADDRESSES: You may submit comments by the following methods:
     Electronically go to http://www.regulations.gov. In the 
``Comment or Submission'' column, enter ``MMS-2008-MRM-0033'' 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 Armand Southall, Regulatory Specialist, 
Minerals Management Service, Minerals Revenue Management, P.O. Box 
25165, MS 302B2, Denver, Colorado 80225. Please reference ICR 1010-0087 
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 St., Denver, Colorado 80225. Please reference 
ICR 1010-0087 in your comments.

FOR FURTHER INFORMATION CONTACT: Armand Southall, telephone (303) 231-
3221, or e-mail [email protected]. You may also contact Mr. 
Southall 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 Parts 227, 228, and 229, Delegated and Cooperative 
Activities with States and Indian Tribes.
    OMB Control Number: 1010-0087.
    Bureau Form Number: None.
    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). Under the Mineral Leasing 
Act of 1920 (30 U.S.C. 1923), the Indian Mineral Development Act of 
1982 (25 U.S.C. 2103), and the Outer Continental Shelf Lands Act (OCS 
Lands Act, 43 U.S.C. 1353), the Secretary 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 also 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.
    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.
    Sections 202 and 205 of the Federal Oil and Gas Royalty Management 
Act of 1982 (FOGRMA), as amended, authorize the Secretary to develop 
delegated and cooperative agreements with states and Indian tribes to 
carry out certain inspection, auditing, investigation, or limited 
enforcement activities for leases in their jurisdiction. The states and 
Indian tribes are working partners and are an integral part of the 
overall onshore and offshore compliance effort.
    Public laws pertaining to mineral revenues are located on our Web 
site at http://www.mrm.mms.gov/Laws_R_D/PublicLawsAMR.htm.
    Relevant parts of the Code of Federal Regulations (CFR) include 30 
CFR parts 227, 228, and 229, as described below:
    Title 30 CFR Part 227--Delegation to States, provides procedures to 
delegate certain Federal minerals revenue management functions to 
states for Federal oil and gas leases. The regulation also provides 
only audit and investigation functions to states for geothermal and 
solid mineral leases, and leases subject to Section 8(g) of the OCS 
Lands Act, within their state boundaries.
    Title 30 CFR Part 228--Cooperative Activities with States and 
Indian Tribes, provides procedures to utilize the capabilities of the 
Indian tribes to carry out audits and related investigations of their 
respective leased lands.
    Title 30 CFR Part 229--Delegation to States, provides procedures to 
utilize the capabilities of the states to carry out audits and related 
investigations of leased Indian lands within their respective state 
boundaries, by permission of the respective Indian tribal councils or 
individual Indian mineral owners.
    Effective September 11, 1997, parts 228 and 229 do not apply to 
Federal lands, due to implementation of RSFA amendments. The final 
rulemaking of Delegation of Royalty Management Functions to States was 
published on August 12, 1997 (62 FR 43076), effective September 11, 
1997, and stated that parts 228 and 229 do not apply to Federal lands 
because delegation for Federal lands is now covered under part 227.

Delegation to States and Cooperative Activities With Indian Tribes

States

    Under Section 205 of FOGRMA, as amended by RSFA Section 3, the 
Secretary is authorized to delegate to states, all or part of 
authorities and responsibilities of the Secretary, to conduct 
inspections, audits, investigations, and limited enforcement activities 
for leases in their jurisdiction.
    Eleven states currently have MMS-approved delegation agreements to 
perform audits and investigations. The states perform nearly all audits 
on Federal leases within their boundaries and receive 50 percent of the 
revenues from those leases, although Alaska receives 90 percent of the 
revenues from Federal leases in that state.
    To be considered for delegation under 30 CFR part 227, states must 
submit a written delegation proposal to, and receive approval from, the 
MMS Associate Director for Minerals Revenue Management (MRM). 
Delegation agreements benefit both MMS and states by ensuring that 
Federal royalty payments are in compliance with applicable laws, lease 
terms, and regulations.
    The MRM is held accountable to certain measurements and standards 
and must file reports to outside entities. States choosing to 
participate in any delegable function are held to these same 
measurements and standards and, therefore, must provide data to 
document the work they are performing. This information, provided to 
MMS in the course of performing delegated agreements, is the focus of 
this information collection. States must comply with Generally Accepted 
Accounting Principles (GAAP) and MMS standards, as required under 30 
CFR 227.200, and also with the MMS Audit Procedures Manual, as required 
under 30 CFR 227.301.

Indian Tribes

    Under FOGRMA Section 202, Cooperative Agreements, as amended by 
RSFA Section 9, the Secretary is authorized to enter into cooperative 
agreements with any state or Indian tribe upon their written request; 
to share

[[Page 63725]]

oil or gas revenue management information; and to use the capabilities 
of states and Indian tribes to carry out inspection, auditing, 
investigation, or limited enforcement activities for tribal leases.
    A state must receive written permission from the respective Indian 
tribes(s) or individual Indian mineral owner(s) to carry out the above 
functions.
    Under 30 CFR part 228, no state has proposed to enter into a 
cooperative agreement to undertake activities on Indian lands within 
its boundaries.
    To be considered for a cooperative agreement, Indian tribes must 
comply with the regulations at 30 CFR part 228. Indian tribes who want 
to perform royalty audits, in cooperation with MMS, must submit a 
written proposal to enter into a cooperative agreement, signed by the 
tribal chairman or other appropriate official, to the MMS Director. The 
request should outline the activities to be undertaken and present 
evidence that the Indian tribe(s) can meet the standards established by 
the Secretary for the activities to be conducted. Prior to beginning 
work, approval must be obtained from the MMS Director. Currently, seven 
Indian tribes have cooperative agreements to perform audits and 
investigations.
    When an Indian tribe performs any of the cooperative activities 
under 30 CFR part 228, the Indian tribe also assumes the burden of 
providing various types of information to MMS. After the request is 
accepted and a cooperative agreement is in effect, Indian tribes must 
submit an annual work plan and budget, as well as quarterly 
reimbursement vouchers. They must follow GAAP and MMS standards. The 
cooperative agreements also require them to comply with the MMS Audit 
Procedures Manual, and Generally Accepted Government Auditing Standards 
(GAGAS).
    Cooperative activities benefit both MMS and Indian tribes by 
ensuring that royalty payments from Indian leases are in compliance 
with applicable laws, lease terms, and regulations. Indian tribes 
currently manage audits for 91 percent of all tribal mineral royalties.
    Under the Secretary's delegation of authority at 30 CFR part 229, a 
state may conduct audits and related investigations of oil and gas 
payments made to MMS regarding leased Indian lands within the state's 
boundaries. After the state receives approval of the Secretary's 
delegation of authority, it must submit annual audit work plans 
detailing its audits and related investigations, annual budgets, and 
quarterly reimbursement vouchers. The state must maintain books and 
records and provide a quarterly summary of costs following Department 
standards, as required under 30 CFR 229.109. In addition, under 30 CFR 
part 229, no state has proposed to undertake delegated functions on 
Indian lands within its boundaries.

Summary

    This collection of information is necessary in order for states and 
Indian tribes to conduct audits and related investigations of oil, gas, 
coal, any other solid minerals, and geothermal royalty revenues from 
Federal and tribal leased lands.
    The MMS protects proprietary information submitted under this 
collection. The MMS does not collect items of a sensitive nature. A 
response to engage in these programs is voluntary and required to 
obtain the benefit of entering into a cooperative agreement with the 
Secretary.
    Frequency of Response: Varies based on the function performed.
    Estimated Number and Description of Respondents: 11 states and 7 
Indian tribes.
    Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 6,178 
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
----------------------------------------------------------------------------------------------------------------
                                                                                     Number of
           30 CFR section            Reporting and recordkeeping    Hour burden       annual      Annual  burden
                                             requirements          per response      responses         hours
----------------------------------------------------------------------------------------------------------------
                                         Part 227--Delegation to States
----------------------------------------------------------------------------------------------------------------
                                              Delegation Proposals
----------------------------------------------------------------------------------------------------------------
227.103; 107; 109; 110(a-b)(1);      What must a State's                     200               1             200
 110(c-d); 111(a-b); 805.             delegation proposal
                                      contain?.
                                     If you want MMS to delegate
                                      royalty management
                                      functions to you, then you
                                      must submit a delegation
                                      proposal to the MMS
                                      Associate Director for
                                      Minerals Revenue
                                      Management. MMS will
                                      provide you with technical
                                      assistance and information
                                      to help you prepare your
                                      delegation proposal.
----------------------------------------------------------------------------------------------------------------
                                               Delegation Process
----------------------------------------------------------------------------------------------------------------
227.110(b)(2)......................  (b)(2) If you want to                    15              11             165
                                      change the terms of your
                                      delegation agreement for
                                      the renewal period, you
                                      must submit a new
                                      delegation proposal under
                                      this part.
----------------------------------------------------------------------------------------------------------------
                                              Existing Delegations
----------------------------------------------------------------------------------------------------------------
                                                  Compensation
----------------------------------------------------------------------------------------------------------------
227.112(d-e).......................  What compensation will a                  4              84             336
                                      State receive to perform
                                      delegated functions?.
                                     You will receive
                                      compensation for your
                                      costs to perform each
                                      delegated function subject
                                      to the following
                                      conditions.

[[Page 63726]]

 
                                     (d) At a minimum, you must
                                      provide vouchers detailing
                                      your expenditures
                                      quarterly during the
                                      fiscal year. However, you
                                      may agree to provide
                                      vouchers on a monthly
                                      basis in your delegation
                                      agreement.\a\
----------------------------------------------------------------------------------------------------------------
                             States' Responsibilities To Perform Delegated Functions
----------------------------------------------------------------------------------------------------------------
227.200(a), (b), (c), and (d);       What are a State's general              200              11           2,200
 112(e).                              responsibilities if it
                                      accepts a delegation?.
                                     For each delegated function
                                      you perform, you must: (a)
                                      * * * seek information or
                                      guidance from MMS
                                      regarding new, complex, or
                                      unique issues.
                                     (b)(1) * * * Provide
                                      complete disclosure of
                                      financial results of
                                      activities;
                                     (2) Maintain correct and
                                      accurate records of all
                                      mineral-related
                                      transactions and accounts;
                                     (3) Maintain effective
                                      controls and
                                      accountability;
                                     (4) Maintain a system of
                                      accounts.
                                     (5) Maintain adequate
                                      royalty and production
                                      information.
                                     (c) Assist MMS in meeting
                                      the requirements of the
                                      Government Performance and
                                      Results Act (GPRA).
                                     (d) Maintain all records
                                      you obtain or create under
                                      your delegated function,
                                      such as royalty reports,
                                      production reports, and
                                      other related information.
                                      * * * You must maintain
                                      such records for at least
                                      7 years.
227.200(e); 801(a); 804............  (e) Provide reports to MMS                3              44             132
                                      about your activities
                                      under your delegated
                                      functions * * * At a
                                      minimum, you must provide
                                      periodic statistical
                                      reports to MMS summarizing
                                      the activities you carried
                                      out.\b\
227.200(f); 401(e); 601(d).........  (f) Assist MMS in                         1             250             250
                                      maintaining adequate
                                      reference, royalty, and
                                      production databases.
227.200(g); 301(e).................  (g) Develop annual work                  60              11             660
                                      plans.
227.200(h).........................  (h) Help MMS respond to                   8              10              80
                                      requests for information
                                      from other Federal
                                      agencies, Congress, and
                                      the public.
227.400(a)(4) and (a)(6); 401(d);    What functions may a State                1             250             250
 501(c).                              perform in processing
                                      production reports or
                                      royalty reports?
                                     Production reporters or
                                      royalty reporters provide
                                      production, sales, and
                                      royalty information on
                                      mineral production from
                                      leases that must be
                                      collected, analyzed, and
                                      corrected.
                                     (a) If you request
                                      delegation of either
                                      production report or
                                      royalty report processing
                                      functions, you must
                                      perform.
                                     (4) Timely transmitting
                                      production report or
                                      royalty report data to MMS
                                      and other affected Federal
                                      agencies.
                                     (6) Providing production
                                      data or royalty data to
                                      MMS and other affected
                                      Federal agencies.
227.400(c).........................  (c) You must provide MMS                  1              12              12
                                      with a copy of any
                                      exceptions from reporting
                                      and payment requirements
                                      for marginal properties
                                      and any alternative
                                      royalty and payment
                                      requirements for unit
                                      agreements and
                                      communitization agreements
                                      you approve.
227.601(c).........................  What are a State's                        8              11              88
                                      responsibilities if it
                                      performs automated
                                      verification?.
                                     To perform automated
                                      verification of production
                                      reports or royalty
                                      reports, you must.
                                     (c) Maintain all
                                      documentation and logging
                                      procedures.
----------------------------------------------------------------------------------------------------------------
                                               Performance Review
----------------------------------------------------------------------------------------------------------------
    Subtotal Burden for 30 CFR Part  ...........................  ..............             695           4,373
     227.
----------------------------------------------------------------------------------------------------------------
                         Part 228--Cooperative Activities With States and Indian Tribes
----------------------------------------------------------------------------------------------------------------
                                         Subpart C--Oil and Gas, Onshore
----------------------------------------------------------------------------------------------------------------
 228.100(a) and (b); 101(c); 107(b)  Entering into an agreement.             200               1             200
                                     (a) * * * Indian tribe may
                                      request the Department to
                                      enter into a cooperative
                                      agreement by sending a
                                      letter from * * * tribal
                                      chairman * * * to the
                                      Director of MMS.

[[Page 63727]]

 
                                     (b) The request for an
                                      agreement shall be in a
                                      format prescribed by MMS
                                      and should include at a
                                      minimum the following
                                      information:
                                     (1) Type of eligible
                                      activities to be
                                      undertaken.
                                     (2) Proposed term of the
                                      agreement.
                                     (3) Evidence that * * *
                                      Indian tribe meets, or can
                                      meet by the time the
                                      agreement is in effect.
                                     (4) If the State is
                                      proposing to undertake
                                      activities on Indian lands
                                      located within the State,
                                      a resolution from the
                                      appropriate tribal council
                                      indicating their agreement
                                      to delegate to the State
                                      responsibilities under the
                                      terms of the cooperative
                                      agreement for activities
                                      to be conducted on tribal
                                      or allotted land.
228.101(a).........................  Terms of agreement.........              15               7             105
                                     (a) Agreements entered into
                                      under this part shall be
                                      valid for a period of 3
                                      years and shall be
                                      renewable * * * upon
                                      request of * * * Indian
                                      tribe.
228.101(d).........................  (d) * * * Indian tribe will              80               1              80
                                      be given 60 days to
                                      respond to the notice of
                                      deficiencies and to
                                      provide a plan for
                                      correction of those
                                      deficiencies.
228.103(a) and (b).................  Maintenance of records.....             120               7             840
                                     (a) * * * Indian tribe
                                      entering into a
                                      cooperative agreement
                                      under this part must
                                      retain all records,
                                      reports, working papers,
                                      and any backup materials.
                                     (b) * * * Indian tribe
                                      shall maintain all books
                                      and records.
228.105(a)(1) and (a)(2)...........  Funding of cooperative                   60               7             420
                                      agreements.
                                     (a)(1) The Department may,
                                      under the terms of the
                                      cooperative agreement,
                                      reimburse * * * Indian
                                      tribe up to 100 percent of
                                      the costs of eligible
                                      activities. Eligible
                                      activities will be agreed
                                      upon annually upon the
                                      submission and approval of
                                      a work plan and funding
                                      requirement.
                                     (2) A cooperative agreement
                                      may be entered into with *
                                      * * Indian tribe, upon
                                      request, without a
                                      requirement for
                                      reimbursement of costs by
                                      the Department.
228.105(c).........................  (c) * * * Indian tribe                    4              36             144
                                      shall submit a voucher for
                                      reimbursement of eligible
                                      costs incurred within 30
                                      days of the end of each
                                      calendar quarter. * * *
                                      Indian tribe must provide
                                      the Department a summary
                                      of costs incurred, for
                                      which * * * Indian tribe
                                      is seeking reimbursement,
                                      with the voucher.\c\
----------------------------------------------------------------------------------------------------------------
    Subtotal Burden for 30 CFR Part  ...........................  ..............              59            1789
     228.
----------------------------------------------------------------------------------------------------------------
                                         Part 229--Delegation to States
----------------------------------------------------------------------------------------------------------------
                                         Subpart C--Oil and Gas, Onshore
----------------------------------------------------------------------------------------------------------------
                                          Administration of Delegations
----------------------------------------------------------------------------------------------------------------
229.100(a)(1) and (a)(2)...........  Authorities and                           1               1               1
                                      responsibilities subject
                                      to delegation.
                                     (a) All or part of the
                                      following authorities and
                                      responsibilities of the
                                      Secretary under the Act
                                      may be delegated to a
                                      State authority:
                                     (1) Conduct of audits
                                      related to oil and gas
                                      royalty payments made to
                                      the MMS which are
                                      attributable to leased * *
                                      * Indian lands within the
                                      State. Delegations with
                                      respect to any Indian
                                      lands require the written
                                      permission, subject to the
                                      review of the MMS, of the
                                      affected Indian tribe or
                                      allottee.
                                     (2) Conduct of
                                      investigation related to
                                      oil and gas royalty
                                      payments made to the MMS
                                      which are attributable to
                                      * * * Indian lands within
                                      the State. Delegation with
                                      respect to any Indian
                                      lands require the written
                                      permission, subject to the
                                      review of the MMS, of the
                                      affected Indian tribe or
                                      allottee. No investigation
                                      will be initiated without
                                      the specific approval of
                                      the MMS.
229.101(a) and (d).................  Petition for delegation....               1               1               1

[[Page 63728]]

 
                                     (a) The governor or other
                                      authorized official of any
                                      State which contains * * *
                                      Indian oil and gas leases
                                      where the Indian tribe and
                                      allottees have given the
                                      State an affirmative
                                      indication of their desire
                                      for the State to undertake
                                      certain royalty management-
                                      related activities on
                                      their lands, may petition
                                      the Secretary to assume
                                      responsibilities to
                                      conduct audits and related
                                      investigations of royalty
                                      related matters affecting
                                      . . . Indian oil and gas
                                      leases within the State.
                                     (d) In the event that the
                                      Secretary denies the
                                      petition, the Secretary
                                      must provide the State
                                      with the specific reasons
                                      for denial of the
                                      petition. The State will
                                      then have 60 days to
                                      either contest or correct
                                      specific deficiencies and
                                      to reapply for a
                                      delegation of authority.
229.102(c).........................  Fact-finding and hearings..               1               1               1
                                     (c) A State petitioning for
                                      a delegation of authority
                                      shall be given the
                                      opportunity to present
                                      testimony at a public
                                      hearing.
229.103(c).........................  Duration of delegations;                  1               1               1
                                      termination of delegations.
                                     (c) A State may terminate a
                                      delegation of authority by
                                      giving a 120-day written
                                      notice of intent to
                                      terminate.
229.105............................  Evidence of Indian                        1               1               1
                                      agreement to delegation.
                                     In the case of a State
                                      seeking a delegation of
                                      authority for Indian lands
                                      * * * the State petition
                                      to the Secretary must be
                                      supported by an
                                      appropriate resolution or
                                      resolutions of tribal
                                      councils joining the State
                                      in petitioning for
                                      delegation and evidence of
                                      the agreement of
                                      individual Indian
                                      allottees whose lands
                                      would be involved in a
                                      delegation. Such evidence
                                      shall specifically speak
                                      to having the State assume
                                      delegated responsibility
                                      for specific functions
                                      related to royalty
                                      management activities.
229.106............................  Withdrawal of Indian lands                1               1               1
                                      from delegated authority.
                                     If at any time an Indian
                                      tribe or an individual
                                      Indian allottee determines
                                      that it wishes to withdraw
                                      from the State delegation
                                      of authority in relation
                                      to its lands, it may do so
                                      by sending a petition of
                                      withdrawal to the State.
229.109(a).........................  Reimbursement for costs                   1               1               1
                                      incurred by a State under
                                      the delegation of
                                      authority.
                                     (a) The Department of the
                                      Interior (DOI) shall
                                      reimburse the State for
                                      100 percent of the direct
                                      cost associated with the
                                      activities undertaken
                                      under the delegation of
                                      authority. The State shall
                                      maintain books and records
                                      in accordance with the
                                      standards established by
                                      the DOI and will provide
                                      the DOI, on a quarterly
                                      basis, a summary of costs
                                      incurred.
229.109(b).........................  (b) The State shall submit                1               1               1
                                      a voucher for
                                      reimbursement of costs
                                      incurred within 30 days of
                                      the end of each calendar
                                      quarter.
----------------------------------------------------------------------------------------------------------------
                                             Delegation Requirements
----------------------------------------------------------------------------------------------------------------
229.120............................  Obtaining regulatory and                  1               1               1
                                      policy guidance.
                                     All activities performed by
                                      a State under a delegation
                                      must be in full accord
                                      with all Federal laws,
                                      rules and regulations, and
                                      Secretarial and agency
                                      determinations and orders
                                      relating to the
                                      calculation, reporting,
                                      and payment of oil and gas
                                      royalties. In those cases
                                      when guidance or
                                      interpretations are
                                      necessary, the State will
                                      direct written requests
                                      for such guidance or
                                      interpretation to the
                                      appropriate MMS officials.
229.121(a), (b), (c), and (d)......  Recordkeeping requirements.               1               1               1
                                     (a) The State shall
                                      maintain in a safe and
                                      secure manner all records,
                                      workpapers, reports, and
                                      correspondence gained or
                                      developed as a consequence
                                      of audit or investigative
                                      activities conducted under
                                      the delegation.
                                     (b) The State must maintain
                                      in a confidential manner
                                      all data obtained from DOI
                                      sources or from payor or
                                      company sources under the
                                      delegation.

[[Page 63729]]

 
                                     (c) All records subject to
                                      the requirements of
                                      paragraph (a) must be
                                      maintained for a 6-year
                                      period measured from the
                                      end of the calendar year
                                      in which the records were
                                      created * * * Upon
                                      termination of a
                                      delegation, the State
                                      shall, within 90 days from
                                      the date of termination,
                                      assemble all records
                                      specified in subsection
                                      (a), complete all working
                                      paper files in accordance
                                      with Sec.   229.124, and
                                      transfer such records to
                                      the MMS.
                                     (d) The State shall
                                      maintain complete cost
                                      records for the delegation
                                      in accordance with
                                      generally accepted
                                      accounting principles.
229.122(a), (b), and (c)...........  Coordination of audit                     1               1               1
                                      activities.
                                     (a) Each State with a
                                      delegation of authority
                                      shall submit annually to
                                      the MMS an audit workplan
                                      specifically identifying
                                      leases, resources,
                                      companies, and payors
                                      scheduled for audit * * *
                                      A State may request
                                      changes to its workplan *
                                      * * at the end of each
                                      quarter of each fiscal
                                      year. All requested
                                      changes are subject to
                                      approval by the MMS and
                                      must be submitted in
                                      writing.
                                     (b) When a State plans to
                                      audit leases of a lessee
                                      or royalty payor for which
                                      there is an MMS or OIG
                                      resident audit team, all
                                      audit activities must be
                                      coordinated through the
                                      MMS or OIG resident
                                      supervisor.
                                     (c) The State shall consult
                                      with the MMS and/or OIG
                                      regarding resolution of
                                      any coordination problems
                                      encountered during the
                                      conduct of delegation
                                      activities.
229.123 (b)(3)(i)..................  Standards for audit                       1               1               1
                                      activities.
                                     (b)(3) Standards of
                                      reporting. (i) Written
                                      audit reports are to be
                                      submitted to the
                                      appropriate MMS officials
                                      at the end of each field
                                      examination.
229.124............................  Documentation standards....               1               1               1
                                     Every audit performed by a
                                      State under a delegation
                                      of authority must meet
                                      certain documentation
                                      standards. In particular,
                                      detailed workpapers must
                                      be developed and
                                      maintained.
229.125(a) and (b).................  Preparation and issuance of               1               1               1
                                      enforcement documents.
                                     (a) Determinations of
                                      additional royalties due
                                      resulting from audit
                                      activities conducted under
                                      a delegation of authority
                                      must be formally
                                      communicated by the State,
                                      to the companies or other
                                      payors by an issue letter
                                      prior to any enforcement
                                      action.
                                     (b) After evaluating the
                                      company or payor's
                                      response to the issue
                                      letter, the State shall
                                      draft a demand letter
                                      which will be submitted
                                      with supporting workpaper
                                      files to the MMS for
                                      appropriate enforcement
                                      action. Any substantive
                                      revisions to the demand
                                      letter will be discussed
                                      with the State prior to
                                      issuance of the letter.
229.126(a) and (b).................  Appeals....................               1               1               1
                                     (a) * * * The State
                                      regulatory authority
                                      shall, upon the request of
                                      the MMS, provide competent
                                      and knowledgeable staff
                                      for testimony, as well as
                                      any required documentation
                                      and analyses, in support
                                      of the lessor's position
                                      during the appeal process.
                                     (b) An affected State, upon
                                      the request of the MMS,
                                      shall provide expert
                                      witnesses from their audit
                                      staff for testimony as
                                      well as required
                                      documentation and analyses
                                      to support the
                                      Department's position
                                      during the litigation of
                                      court cases arising from
                                      denied appeals.
229.127............................  Reports from States........               1               1               1
                                     The State, acting under the
                                      authority of the
                                      Secretarial delegation,
                                      shall submit quarterly
                                      reports which will
                                      summarize activities
                                      carried out by the State
                                      during the preceding
                                      quarter of the year under
                                      the provisions of the
                                      delegation.
----------------------------------------------------------------------------------------------------------------
    Subtotal Burden for 30 CFR Part  ...........................  ..............              16              16
     229.
                                                                 -----------------------------------------------

[[Page 63730]]

 
        Total Burden...............  ...........................  ..............             770          6,178
----------------------------------------------------------------------------------------------------------------
\a\ Note: 5 states x 12 monthly vouchers = 60 and 6 states x 4 quarterly vouchers = 24.
\b\ Note: 4 quarterly reports x 11 states = 44.
\c\ Note: 1 tribe x 12 monthly vouchers = 12 and 6 tribes x 4 quarterly vouchers = 24.

    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: Before submitting an ICR to OMB, PRA Section 
3506(c)(2)(A) requires each agency to ``* * * provide 60-day notice in 
the Federal Register * * * 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.
    The PRA also requires agencies to estimate the total annual 
reporting ``non-hour cost'' burden to respondents or recordkeepers 
resulting from the collection of information. If you have costs to 
generate, maintain, and disclose this information, you should comment 
and provide your total capital and startup cost components or annual 
operation, maintenance, and purchase of service components. You should 
describe the methods you use to estimate major cost factors, including 
system and technology acquisition, expected useful life of capital 
equipment, discount rate(s), and the period over which you incur costs. 
Capital and startup costs include, among other items, computers and 
software you purchase to prepare for collecting information; 
monitoring, sampling, and testing equipment; and record storage 
facilities. Generally, your estimates should not include equipment or 
services purchased: (i) Before October 1, 1995; (ii) to comply with 
requirements not associated with the information collection; (iii) for 
reasons other than to provide information or keep records for the 
Government; or (iv) as part of customary and usual business or private 
practices.
    We will summarize written responses to this notice and address them 
in our ICR submission for OMB approval, including appropriate 
adjustments to the estimated burden. We will provide a copy of the ICR 
to you without charge upon request. The ICR also will be posted at 
http://www.mrm.mms.gov/Laws_R_D/FRNotices/FRInfColl.htm.
    Public Comment Policy: We will post all comments in response to 
this notice on our Web site at http://www.mrm.mms.gov/Laws_R_D/FRNotices/FRInfColl.htm. We will also make copies of the comments 
available for public review, including names and addresses of 
respondents, during regular business hours at our offices in Lakewood, 
Colorado. Before including your address, phone number, e-mail address, 
or other personal identifying information in your comment, you should 
be aware that your entire comment--including your personal identifying 
information--may be made publicly available at any time. While you can 
ask us in your comment to withhold your personal identifying 
information from public view, we cannot guarantee that we will be able 
to do so.
    MMS Information Collection Clearance Officer: Arlene Bajusz (202) 
208-7744.

    Dated: October 9, 2008.
Gregory J. Gould,
Associate Director for Minerals Revenue Management.
 [FR Doc. E8-25582 Filed 10-24-08; 8:45 am]
BILLING CODE 4310-MR-P