[Federal Register Volume 73, Number 220 (Thursday, November 13, 2008)]
[Notices]
[Pages 67197-67200]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-26890]



[[Page 67197]]

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DEPARTMENT OF THE INTERIOR

Minerals Management Service

[Docket No. MMS-2008 MRM-0039]


Agency Information Collection Activities: Proposed Collection, 
Comment Request

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Notice of a revision of a currently approved information 
collection (OMB Control Number 1010-0139).

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SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), we 
are inviting comments on a collection of information that we will 
submit to the Office of Management and Budget (OMB) for review and 
approval. This information collection request (ICR) pertains to onshore 
and offshore royalty and production reporting on oil, gas, and 
geothermal leases on Federal and Indian lands. We changed the title of 
this ICR to reflect current regulatory actions. The new title of this 
ICR is ``30 CFR Parts 210 and 212, Royalty and Production Reporting.''
    Publication of the final rule, RIN 1010-AD20, Reporting Amendments, 
on March 26, 2008 (73 FR 15885), changed a number of citations, 
primarily under 30 CFR part 210. The final rule removed 30 CFR part 216 
and replaced part 210 in its entirety. In this revision, we also 
consolidated the following ICRs to allow programwide review of both 
aspects of reporting--remittance of royalties and production accounting 
on oil, gas, and geothermal leases:
     1010-0139, previously titled ``30 CFR Part 210--Forms and 
Reports and Part 216--Production Accounting;'' and
     1010-0140, previously titled ``30 CFR Part 210--Forms and 
Reports.''

DATES: Submit written comments on or before January 9, 2009.

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-0039'' 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 1010-0139 
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 1010-0139 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 Parts 210 and 212, Royalty and Production 
Reporting.''
    OMB Control Number: 1010-0139.
    Bureau Form Number: Forms MMS-2014, MMS-4054, and MMS-4058.
    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 is required 
by various laws to manage mineral resource production from Federal and 
Indian leases, collect the royalties and other mineral revenues due, 
and distribute the funds in accordance with applicable laws. Public 
laws pertaining to mineral leases on Federal and Indian lands are 
posted on our Web site at http://www.mrm.mms.gov/Laws_R_D/PublicLawsAMR.htm.
    The Secretary also has a trust responsibility to manage Indian 
lands and seek advice and information from Indian beneficiaries. The 
MMS performs the minerals revenue management functions and assists the 
Secretary in carrying out the Department's trust responsibility for 
Indian lands.

General Information

    The MMS financial accounting system is an integrated computer 
system that includes payment and sales volumes and values, as reported 
by payors. Production and royalty volumes are compared to verify that 
proper royalties are received for the minerals produced. Additionally, 
the data is shared electronically with the MMS Offshore and Energy and 
Minerals Management program, Bureau of Land Management, Bureau of 
Indian Affairs, and tribal and state governments so they can perform 
their lease management responsibilities.
    The MMS uses the information collected in this ICR to ensure that 
royalty is appropriately paid, based on accurate production accounting 
on oil, gas, and geothermal resources produced from Federal and Indian 
leases. The requirement to report accurately and timely is mandatory.

Royalty Reporting

    The regulations require that lessees report and remit royalties on 
oil, gas, and geothermal resources produced from leases on Federal and 
Indian lands. The following form is used for royalty reporting:
    Form MMS-2014, Report of Sales and Royalty Remittance, is submitted 
monthly to report royalties on oil, gas, and geothermal leases, certain 
rents, and other lease-related transactions (e.g., transportation and 
processing allowances, lease adjustments, and quality and location 
differentials).

Production Accounting

    The MMS financial accounting system includes production reports 
submitted by lease/agreement operators and is designed to track 
minerals produced from Federal and Indian lands from the point of 
production to the point of disposition, or royalty determination, and/
or point of sale. The following forms are used for production 
accounting and reporting:
    Form MMS-4054, Oil and Gas Operations Report (OGOR), is submitted 
monthly for all production reporting for Outer Continental Shelf, 
Federal, and Indian lands. Production information is compared with 
sales and royalty data submitted on Form MMS-2014 to ensure proper 
royalties are paid on the oil and gas production reported to MMS. The 
MMS uses the information from Parts A, B, and C of the OGOR to track 
all oil and gas from the point of production to the point of first sale 
or other disposition.
    Form MMS-4058, Production Allocation Schedule Report (PASR), is 
submitted monthly by operators of the facilities and measurement points 
where production from an offshore lease or metering point is commingled 
with production from other sources before it is measured for royalty 
determination. The MMS uses the data to determine whether sales 
reported by the lessee are reasonable.

OMB Approval

    We will request OMB approval to continue to collect this 
information. Not collecting this information would limit the 
Secretary's ability to discharge his/her duties and may also result in 
loss of royalty payments. Proprietary information submitted to MMS 
under this collection is protected, and no

[[Page 67198]]

items of a sensitive nature are included in this information 
collection. Responses are mandatory.
    Frequency: Monthly.
    Estimated Number and Description of Respondents: 4,570 oil, gas, 
and geothermal reporters.
    Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 
236,421 hours. Our estimate of the number of respondents and the time 
required to complete the forms has not changed. However, the citations 
changed when the final rule, RIN 1010-AD20, Reporting Amendments, 
published on March 26, 2008. The final rule removed 30 CFR part 216 and 
replaced part 210 in its entirety and also removed the requirement at 
Sec.  216.30, which changed the burden by 1 hour.
    We have not included in our estimates certain requirements 
performed in the normal course of business and considered usual and 
customary. The following chart shows the estimated burden hours by CFR 
section and paragraph:

                                                       Respondents' Estimated Annual Burden Hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                              Average
                                                                                                                             number of     Annual burden
            30 CFR Part 210                    Reporting and recordkeeping requirement                Hour burden             annual           hours
                                                                                                                             responses
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                                                              30 CFR 210--FORMS AND REPORTS
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                                             Subpart B--Royalty Reports--Oil, Gas, and Geothermal Resources
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210.52(a) and (b); 210.53(a) and (b);    210.52 What royalty reports must I submit?.........                          Electronic*
 210.54(a) and (b).                                                                                           (approximately 99 percent)
                                                                                             -----------------------------------------------------------
                                                                                              0.05......................       3,103,265         155,163
                                                                                              (3 minutes)...............
                                                                                             -----------------------------------------------------------
                                         You must submit a completed Form MMS-2014, Report                              Manual*
                                          of Sales and Royalty Remittance, to MMS with:                        (approximately 1 percent)
                                         (a) All royalty payments; and......................
                                                                                             -----------------------------------------------------------
                                         (b) Rents on nonproducing leases, where specified    0.1167....................          31,346           3,658
                                          in the lease.                                       (7 minutes)...............
                                         210.53 When are my royalty reports and payments
                                          due?
                                         (a) Completed Forms MMS-2014 for royalty payments
                                          and the associated payments are due by the end of
                                          the month following the production month (see also
                                          Sec.   218.50).
                                         (b) Completed Forms MMS-2014 for rental payments,
                                          where applicable, and the associated payments are
                                          due as specified by the lease terms (see also Sec.
                                            218.50).
                                         210.54 Must I submit this royalty report
                                          electronically?
                                         (a) You must submit Form MMS-2014 electronically
                                          unless you qualify for an exception under Sec.
                                          210.55(a).
                                         (b) You must use one of the following electronic
                                          media types, unless MMS instructs you differently:
 
                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
    Subtotal for Royalty Reporting..........................................................  ..........................       3,134,611         158,821
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                                                       Subpart C--Production Reports--Oil and Gas
--------------------------------------------------------------------------------------------------------------------------------------------------------
210.102(a)(1)(i) and (ii), (a)(2)(i)     210.102 What production reports must I submit?.....        Burden hours covered under 210.104(a) and (b).
 and (ii).
                                         (a) Form MMS-4054, Oil and Gas Operations Report.
                                          If you operate a Federal or Indian onshore or OCS
                                          oil and gas lease or federally approved unit or
                                          communitization agreement that contains one or
                                          more wells that are not permanently plugged or
                                          abandoned, you must submit Form MMS-4054 to MMS:
                                         (1) You must submit Form MMS-4054 for each well for
                                          each calendar month, beginning with the month in
                                          which you complete drilling, unless:
                                         (i) You have only test production from a drilling
                                          well; or
                                         (ii) The MMS tells you in writing to report
                                          differently.
                                         (2) You must continue reporting until:
                                         (i) The Bureau of Land Management (BLM) or MMS
                                          approves all wells as permanently plugged or
                                          abandoned or the lease or unit or communitization
                                          agreement is terminated; and
                                         (ii) You dispose of all inventory.

[[Page 67199]]

 
210.102(b)(1), (b)(2)(i)-(vi)..........  (b) Form MMS-4058, Production Allocation Schedule          Burden hours covered under 210.104(a) and (b).
                                          Report. If you operate an offshore facility
                                          measurement point (FMP) handling production from a
                                          Federal oil and gas lease or federally approved
                                          unit agreement that is commingled (with approval)
                                          with production from any other source prior to
                                          measurement for royalty determination, you must
                                          file Form MMS-4058.
                                         (1) You must submit Form MMS-4058 for each calendar
                                          month beginning with the month in which you first
                                          handle production covered by this section.
                                         (2) Form MMS-4058 is not required whenever all of
                                          the following conditions are met:
                                         (i) All leases involved are Federal leases;
                                         (ii) All leases have the same fixed royalty rate;
                                         (iii) All leases are operated by the same operator;
                                         (iv) The facility measurement device is operated by
                                          the same person as the leases/agreements;
                                         (v) Production has not been previously measured for
                                          royalty determination; and
                                         (vi) The production is not subsequently commingled
                                          and measured for royalty determination at an FMP
                                          for which Form MMS-4058 is required under this
                                          part
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210.103 (a) and (b)....................  210.103 When are my production reports due?........        Burden hours covered under 210.104(a) and (b).
                                         (a) The MMS must receive your completed Forms MMS-
                                          4054 and MMS-4058 by the 15th day of the second
                                          month following the month for which you are
                                          reporting.
                                         (b) A report is considered received when it is
                                          delivered to MMS by 4 p.m. mountain time at the
                                          addresses specified in Sec.   210.105. Reports
                                          received after 4 p.m. mountain time are considered
                                          received the following business day.
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210.104 (a) and (b)....................  210.104 Must I submit these production reports                               Electronic*
                                          electronically?.                                                    (approximately 97 percent)
                                                                                             -----------------------------------------------------------
                                         (a) You must submit Forms MMS-4054 and MMS-4058      0.25......................         301,280          75,320
                                          electronically unless you qualify for an exception  (15 minutes)..............
                                          under Sec.   210.105.
                                                                                             -----------------------------------------------------------
                                         (b) You must use one of the following electronic                               Manual*
                                          media types, unless MMS instructs you differently:                   (approximately 3 percent)
                                                                                             -----------------------------------------------------------
                                                                                              0.25......................           9,120           2,280
                                                                                              (15 minutes)..............
 
                                                                      * * * * * * *
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                                                     Subpart D--Special-Purpose Forms and Reports--
                                                           Oil, Gas, and Geothermal Resources
--------------------------------------------------------------------------------------------------------------------------------------------------------
210.155................................  210.155 What reports must I submit for Federal       Burden covered under OMB Control Number 1010-0090 (expires
                                          onshore stripper oil properties?                                        December 31, 2010).
                                         (a) General. Operators who have been granted a
                                          reduced royalty rate by the Bureau of Land
                                          Management (BLM) under 43 CFR 3103.4-2 must submit
                                          Form MMS-4377, Stripper Royalty Rate Reduction
                                          Notification, under 43 CFR 3103.4-2(b)(3).
 
                                                                      * * * * * * *
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    Subtotal for Production Reporting.......................................................  ..........................         310,400          77,600
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                                                         PART 212--RECORDS AND FILES MAINTENANCE
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                                                      Subpart B--Oil, Gas and OCS Sulphur--General
--------------------------------------------------------------------------------------------------------------------------------------------------------
212.50.................................  212.50 Required recordkeeping and reports..........       Burden hours covered under 210.54(a) and (b); and
                                                                                                                  210.104(a) and (b).

[[Page 67200]]

 
                                         All records pertaining to offshore and onshore
                                          Federal and Indian oil and gas leases shall be
                                          maintained by a lessee, operator, revenue payor,
                                          or other person for 6 years after the records are
                                          generated unless the recordholder is notified, in
                                          writing, that records must be maintained for a
                                          longer period * * *.
                                         [In accordance with 30 U.S.C. 1724(f), Federal oil
                                          and gas records must be maintained for 7 years
                                          from the date the obligation became due.]
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212.51(a) and (b)......................  (a) Records. Each lessee, operator, revenue payor,        Burden hours covered under 210.54(a) and (b); and
                                          or other person shall make and retain accurate and                      210.104(a) and (b).
                                          complete records necessary to demonstrate that
                                          payments of rentals, royalties, net profit shares,
                                          and other payments related to offshore and onshore
                                          Federal and Indian oil and gas leases are in
                                          compliance with lease terms, regulations, and
                                          orders * * *.
                                         (b) Period for keeping records. Lessees, operators,
                                          revenue payors, or other persons required to keep
                                          records under this section shall maintain and
                                          preserve them for 6 years from the day on which
                                          the relevant transaction recorded occurred unless
                                          the Secretary notifies the record holder of an
                                          audit or investigation involving the records and
                                          that they must be maintained for a longer period *
                                          * *.
                                         [In accordance with 30 U.S.C. 1724(f), Federal oil
                                          and gas records must be maintained for 7 years
                                          from the date the obligation became due.]
--------------------------------------------------------------------------------------------------------------------------------------------------------
    Total for Royalty and Production Reporting..............................................  ..........................       3,445,011         236,421
--------------------------------------------------------------------------------------------------------------------------------------------------------
*Note: Each line of data is considered one response/report.

    Estimated Annual Reporting and Recordkeeping ``Non-Hour'' Cost 
Burden:
    Reporters require access to the Internet through a subscription to 
an Internet provider service. The annual subscription is estimated at 
$240 per reporter.
    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 on our 
Web site at http://www.mrm.mms.gov/Laws_R_D/FRNotices/FRInfColl.htm.
    Public Comment Policy: We will post all comments in response to 
this notice at http://www.mrm.mms.gov/Laws_R_D/FRNotices/FRInfColl.htm. We also will post all comments, including names and 
addresses of respondents, at http://www.regulations.gov. 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 view 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: November 6, 2008.
Jennifer L. Goldblatt,
Acting Associate Director for Minerals Revenue Management.
[FR Doc. E8-26890 Filed 11-12-08; 8:45 am]
BILLING CODE 4310-MR-P