[Federal Register Volume 74, Number 167 (Monday, August 31, 2009)]
[Notices]
[Pages 44868-44872]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-20905]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service

[Docket No. MMS-2008-MRM-0039]


Agency Information Collection Activities: Submitted for Office of 
Management and Budget Review; 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 notifying the public that we have submitted to the Office of 
Management and Budget (OMB) an information collection request (ICR) to 
renew approval of the paperwork requirements in the regulations under 
title 30 of the Code of Federal Regulations (CFR) parts 210 and 212. 
This notice also provides the public a second opportunity to comment on 
the paperwork burden of these regulatory requirements. This 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 regulatory actions, 
including publication of the final rule, RIN 1010-AD20, Reporting 
Amendments, on March 26, 2008 (73 FR 15885). 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 
royalty and production reporting for oil, gas, and geothermal leases on 
Federal and Indian lands:
     1010-0139, 30 CFR Part 210--Forms and Reports and Part 
216--Production Accounting; and
     1010-0140, 30 CFR Part 210--Forms and Reports.

DATES: Submit written comments on or before September 30, 2009.

ADDRESSES: Submit written comments by either FAX (202) 395-5806 or e-
mail ([email protected]) directly to the Office of Information 
and Regulatory Affairs, OMB, Attention: Desk Officer for the Department 
of the Interior (OMB Control Number 1010-0139).
    Please submit copies of your comments to MMS by one of 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 300B2, 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 lands and the OCS, collect the royalties and other mineral 
revenues due, and distribute the funds collected 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

    When a company or an individual enters into a lease to explore, 
develop, produce, and dispose of minerals from

[[Page 44869]]

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.
    We use 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. Please 
refer to the chart for all reporting requirements and associated burden 
hours.

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 Reporting

    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 Federal 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 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: 
253,509 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
----------------------------------------------------------------------------------------------------------------
                                        Reporting and                             Average number
         30 CFR part 210                recordkeeping            Hour burden         of annual     Annual burden
                                         requirement                                 responses         hours
----------------------------------------------------------------------------------------------------------------
                                          30 CFR 210--FORMS AND REPORTS
----------------------------------------------------------------------------------------------------------------
                         Subpart B--Royalty Reports--Oil, Gas, and Geothermal Resources
----------------------------------------------------------------------------------------------------------------
210.52(a) and (b)...............  210.52 What royalty                           Form MMS-2014
                                   reports must I submit?
                                                           -----------------------------------------------------
                                                                   Electronic* (approximately 99 percent)
                                                           -----------------------------------------------------
210.53(a) and (b)...............  You must submit a         3 min...............       3,510,849         175,542
                                   completed Form MMS-
                                   2014, Report of Sales
                                   and Royalty Remittance,
                                   to MMS with:
                                                           -----------------------------------------------------
                                                                      Manual* (approximately 1 percent)
                                                           -----------------------------------------------------
210.54(a) and (b)...............  (a) All royalty           7 min...............          35,463           4,137
                                   payments: And.
                                  (b) Rents on
                                   nonproducing leases,
                                   where specified in the
                                   lease.
                                  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..............................................       3,546,312         179,679
----------------------------------------------------------------------------------------------------------------

[[Page 44870]]

 
                                   Subpart C--Production Reports--Oil and Gas
----------------------------------------------------------------------------------------------------------------
210.102(a)(1)(i) and (ii),        210.102 What production       Burden hours covered under 210.104(a) and (b)
 (a)(2)(i) and (ii).               reports must I submit?
                                                           -----------------------------------------------------
                                  (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..
                                                           -----------------------------------------------------
210.102(b)(1), (b)(2)(i)-(vi)...  (b) Form MMS-4058,            Burden hours covered under 210.104(a) and (b)
                                   Production Allocation
                                   Schedule 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..
                                                           -----------------------------------------------------
210.103(a) and (b)..............  210.103 When are my           Burden hours covered under 210.104(a) and (b)
                                   production reports due?
                                                           -----------------------------------------------------
                                  (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.
                                                           -----------------------------------------------------
210.104(a) and (b)..............  210.104 Must I submit                     Form MMS-4054 (OGOR)
                                   these production
                                   reports electronically?
                                                           -----------------------------------------------------
                                                                   Electronic* (approximately 98 percent)
                                                           -----------------------------------------------------
                                  (a) You must submit       1 min...............       4,137,803          68,963
                                   Forms MMS-4054 and MMS-
                                   4058 electronically
                                   unless you qualify for
                                   an exception under Sec.
                                     210.105.
                                                           -----------------------------------------------------
                                                                      Manual* (approximately 2 percent)
                                                           -----------------------------------------------------
                                                            3 min...............          84,445           4,222

[[Page 44871]]

 
                                  (b) You must use one of   Total OGOR..........       4,222,248          73,185
                                   the following
                                   electronic media types,
                                   unless MMS instructs
                                   you differently:
                                                           -----------------------------------------------------
                                          * * * * *                         Form MMS-4058 (PASR)
                                                           -----------------------------------------------------
                                                                   Electronic* (approximately 98 percent)
                                                           -----------------------------------------------------
                                                            1 min...............          36,456             608
                                                           -----------------------------------------------------
                                                                      Manual* (approximately 2 percent)
                                                           -----------------------------------------------------
                                                            3 min...............             744              37
                                                            Total PASR..........          37,200             645
----------------------------------------------------------------------------------------------------------------
                Subpart D--Special-Purpose Forms and Reports--Oil, Gas, and Geothermal Resources
----------------------------------------------------------------------------------------------------------------
210.155.........................  210.155 What reports        Burden covered under OMB Control Number 1010-0090
                                   must I submit for                     (expires December 31, 2010)
                                   Federal onshore
                                   stripper oil
                                   properties?
                                                           -----------------------------------------------------
                                  (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).
                                          * * * * *
----------------------------------------------------------------------------------------------------------------
    Subtotal for Production Reporting...........................................       4,259,448          73,830
----------------------------------------------------------------------------------------------------------------
                                     PART 212--RECORDS AND FILES MAINTENANCE
----------------------------------------------------------------------------------------------------------------
                                  Subpart B--Oil, Gas and OCS Sulphur--General
----------------------------------------------------------------------------------------------------------------
212.50..........................  212.50 Required             Burden hours covered under 210.54(a) and (b); and
                                   recordkeeping and                          210.104(a) and (b)
                                   reports
                                                           -----------------------------------------------------
                                  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.]
                                                           -----------------------------------------------------
212.51(a) and (b)...............  (a) Records. Each           Burden hours covered under 210.54(a) and (b); and
                                   lessee, operator,                         210.104(a) and (b).
                                   revenue payor, or other
                                   person shall make and
                                   retain accurate and
                                   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..................................       7,805,760         253,509
----------------------------------------------------------------------------------------------------------------
* Note: Each line of data is considered one response/report.

    Estimated Annual Reporting and Recordkeeping ``Non-hour'' Cost 
Burden: We have identified no ``non-hour'' cost burden associated with 
the collection of information.

[[Page 44872]]

    Public Disclosure Statement: The PRA (44 U.S.C. 3501 et seq.) 
provides that an agency may not conduct or sponsor, and a person is not 
required to respond to, a collection of information unless it displays 
a currently valid OMB control number.
    Comments: Section 3506(c)(2)(A) of the PRA requires each agency to 
``* * * provide 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.
    To comply with the public consultation process, we published a 
notice in the Federal Register on November 13, 2008 (73 FR 67197), 
announcing that we would submit this ICR to OMB for approval. The 
notice provided the required 60-day comment period. We received no 
comments in response to the notice.
    If you wish to comment in response to this notice, you may send 
your comments to the offices listed under the ADDRESSES section of this 
notice. The OMB has up to 60 days to approve or disapprove the 
information collection but may respond after 30 days. Therefore, to 
ensure maximum consideration, OMB should receive public comments by 
September 30, 2009.
    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: August 11, 2009.
Jennifer L. Goldblatt,
Acting Associate Director for Minerals Revenue Management.
[FR Doc. E9-20905 Filed 8-28-09; 8:45 am]
BILLING CODE 4310-MR-P