[Federal Register Volume 76, Number 86 (Wednesday, May 4, 2011)]
[Notices]
[Pages 25367-25370]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-10905]


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DEPARTMENT OF THE INTERIOR

Office of Natural Resources Revenue

[Docket No. ONRR-2011-0008]


Agency Information Collection Activities: Proposed Collection, 
Comment Request

AGENCY: Office of Natural Resources Revenue (ONRR), Interior.

ACTION: Notice of an extension of a currently approved information 
collection (OMB Control Number 1012-0006).

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SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), the 
Office of Natural Resources Revenue (ONRR) is inviting comments on the 
renewal of 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) was formerly approved under OMB 
Control Number 1010-0122. However, OMB approved a new series number and 
renumbered our ICRs after the Secretary of the Interior established 
ONRR (the former Minerals Revenue Management, a program under the 
Minerals Management Service) by Secretarial Order 3299, which was 
effective October 1, 2010. Also ONRR published a rule, effective 
October 1, 2010, transferring our regulations from chapter II to 
chapter XII in title 30 of the Code of Federal Regulations (CFR). This 
ICR covers the paperwork requirements in the regulations under 30 CFR 
part 1243 (previously 30 CFR part 243).

DATES: Submit written comments on or before July 5, 2011.

ADDRESSES: You may submit comments on this ICR by any of the following 
methods. Please use ``ICR 1012-0006'' as an identifier in your comment.
     Electronically go to http://www.regulations.gov. In the 
entry titled ``Enter Keyword or ID,'' enter ONRR-2011-0008 and then 
click search. Follow the instructions to submit public comments. The 
ONRR will post all comments.
     Mail comments to Hyla Hurst, Regulatory Specialist, Office 
of Natural Resources Revenue, P.O. Box 25165, MS 61013C, Denver, 
Colorado 80225. Please reference ICR 1012-0006 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 1012-0006 in your comments.

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

SUPPLEMENTARY INFORMATION:
    Title: 30 CFR Part 1243--Suspensions Pending Appeal and Bonding--
Office of Natural Resources Revenue.
    OMB Control Number: 1012-0006.
    Bureau Form Numbers: Forms ONRR-4435, ONRR-4436, and ONRR-4437.

    Note:  These forms are still listed as Forms MMS-4435, MMS-4436, 
and MMS-4437 in the regulations. As ONRR completes the transition to 
the new organization, we will publish a rule updating our form 
numbers in the CFR.

    Abstract: The Secretary 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. The 
Secretary also has a trust responsibility to manage Indian lands and 
seek advice and information from Indian beneficiaries. The ONRR 
performs the minerals revenue management functions for the Secretary 
and assists the Secretary in carrying out the Department's trust 
responsibility for Indian lands. Public laws pertaining to mineral 
revenues are on our Web site at http://www.onrr.gov/Laws_R_D/PublicLawsAMR.htm.
    If ONRR determines that a lessee has not properly reported or paid, 
we may issue an order to pay additional royalties, a Notice of 
Noncompliance, or a Civil Penalty Notice requiring correct reporting or 
payment. Lessees then have a right to appeal those ONRR actions.
    Regulations at 30 CFR part 1243 govern the submission of 
appropriate surety instruments to suspend compliance with orders or 
decisions and to stay the accrual of civil penalties (if the Office of 
Hearings and Appeals grants a lessee's petition to stay accrual of 
civil penalties), pending administrative appeal for Federal and Indian 
leases. For Federal oil and gas

[[Page 25368]]

leases, under 30 U.S.C. 1724(l) and its implementing regulations in 30 
CFR part 1243, appellants who are requesting a suspension without 
providing a surety must submit information to demonstrate financial 
solvency. This ICR covers the burden hours associated with submitting 
financial statements or surety instruments required to stay an ONRR 
order, decision, or accrual of civil penalties.

Stay of Payment Pending Appeal

    Title 30 CFR 1243.1 states that lessees or recipients of ONRR 
orders may suspend compliance with an order if they appeal in 
accordance with 30 CFR part 1290. Pending appeal, ONRR suspends the 
payment requirement if the appellant submits a formal agreement of 
payment in case of default, such as a bond or other surety, or, for 
Federal oil and gas leases, demonstrates financial solvency. If the 
Office of Hearings and Appeals grants a lessee's, or other recipient of 
a Notice of Noncompliance or Civil Penalty Notice, request to stay the 
accrual of civil penalties under 30 CFR 1241.55(b)(2) and 
1241.63(b)(2), the lessee or other recipient must post a bond or other 
surety, or, for Federal oil and gas leases, demonstrate financial 
solvency.
    The ONRR accepts the following surety types: Form ONRR-4435, 
Administrative Appeal Bond (formerly Form MMS-4435); Form ONRR-4436, 
Letter of Credit (formerly Form MMS-4436); Form ONRR-4437, Assignment 
of Certificate of Deposit (formerly Form MMS-4437); Self-bonding; and 
U.S. Treasury Securities.
    When one of the surety types is selected and put in place, 
appellants must maintain the surety until completion of the appeal. If 
the appeal is decided in favor of the appellant, ONRR returns the 
surety to the appellant. If the appeal is decided in favor of ONRR, 
then we will take action to collect the total amount due or draw down 
on the surety. We draw down on a surety if the appellant fails to 
comply with requirements relating to amount due, timeframe, or surety 
submission or resubmission. Whenever ONRR must draw down on a surety, 
we must draw down the total amount due, which is defined as unpaid 
principal plus the interest accrued to the projected receipt date of 
the surety payment. Appellants may refer to the Surety Instrument 
Posting Instructions, which are on our Web site at http://www.onrr.gov/FM/Forms/default.htm.

Forms and Other Surety Types

Form ONRR-4435, Administrative Appeal Bond

    Appellants may file Form ONRR-4435, Administrative Appeal Bond, 
which ONRR uses to secure the financial interests of the public and 
Indian lessors during the entire administrative and judicial appeal 
process. Under 30 CFR 1243.4, appellants are required to submit their 
contact and surety amount information on the bond to obtain the benefit 
of suspension of an obligation to comply with an order. The bond must 
be issued by a qualified surety company that is approved by the U.S. 
Department of the Treasury (see Department of the Treasury Circular No. 
570, revised periodically in the Federal Register). The Director for 
ONRR or the delegated bond-approving officer maintains these bonds in a 
secure facility. After the appeal has concluded, ONRR may release and 
return the bond to the appellant or collect payment on the bond. If 
collection is necessary for a remaining balance, ONRR will issue a 
demand for payment to the surety company with a notice to the 
appellant. We will also include all interest accrued on the affected 
bill.

Form ONRR-4436, Letter of Credit

    Appellants may choose to file Form ONRR-4436, Letter of Credit, 
with no modifications. Requirements at 30 CFR 1243.4 continue to apply. 
The Director or the delegated officer maintains the Letter of Credit 
(LOC) in a secure facility. The appellant is responsible for verifying 
that the bank provides a current Fitch rating to ONRR. After the appeal 
has been concluded, we may release and return the LOC to the appellant 
or collect payment on the LOC. If collection is necessary for a 
remaining balance, we will issue a demand for payment, which includes 
all interest assessed on the affected bill, to the bank with a notice 
to the appellant.

Form ONRR-4437, Assignment of Certificate of Deposit

    Appellants may choose to secure a debt by requesting to use a 
Certificate of Deposit (CD) from their bank and submitting Form ONRR-
4437, Assignment of Certificate of Deposit. Requirements at 30 CFR 
1243.4 continue to apply. Appellants must file the request with ONRR 
prior to the invoice due date. We will accept a book-entry CD that 
explicitly assigns the CD to the Director. If collection of the CD is 
necessary for an unpaid balance, we will return unused CD funds to the 
appellant after total settlement of the appealed issues, including 
applicable interest charges.

Self-bonding

    For Federal oil and gas leases, regulations at 30 CFR 1243.201 
provide that no surety instrument is required when a person 
representing the appellant periodically demonstrates, to the 
satisfaction of ONRR, that the guarantor or appellant is financially 
solvent or otherwise able to pay the obligation. Appellants must submit 
a written request to ``self-bond'' every time a new appeal is filed. To 
evaluate the financial solvency and exemption from requirements of 
appellants to maintain a surety related to an appeal, ONRR requires 
appellants to submit a consolidated balance sheet, subject to annual 
audit. In some cases, we also require copies of the most recent tax 
returns (up to 3 years) filed by appellants.
    In addition, appellants must annually submit financial statements, 
subject to annual audit, to support their net worth. The ONRR uses the 
consolidated balance sheet or business information supplied to evaluate 
the financial solvency of a lessee, designee, or payor seeking a stay 
of payment obligation pending review. If appellants do not have a 
consolidated balance sheet documenting their net worth or if they do 
not meet the $300 million net worth requirement, ONRR selects a 
business information or credit reporting service to provide information 
concerning an appellant's financial solvency. The ONRR charges the 
appellant a $50 fee each time we need to review data from a business 
information or credit reporting service. The fee covers our costs in 
determining an appellant's financial solvency.

U.S. Treasury Securities

    Appellants may choose to secure their debts by requesting to use a 
U.S. Treasury Security (TS). Appellants must file the letter of request 
with ONRR prior to the invoice due date. The TS must be a U.S. Treasury 
note or bond with maturity equal to or greater than 1 year. The TS must 
equal 120 percent of the appealed amount plus 1 year of estimated 
interest (necessary to protect ONRR against interest rate 
fluctuations). The ONRR accepts only a book-entry TS.

Request to OMB

    We are requesting OMB's approval to continue to collect this 
information. Not collecting this information would limit the 
Secretary's ability to discharge fiduciary duties and also may result 
in loss of royalty and other payments.

[[Page 25369]]

    Proprietary information submitted to ONRR under this collection is 
protected, and no items of a sensitive nature are collected. A response 
is mandatory in order to suspend compliance with an order pending 
appeal.
    Frequency: Annually and on occasion.
    Estimated Number and Description of Respondents: 105 Federal or 
Indian appellants.
    Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 105 
hours.
    The following chart shows the estimated annual burden hours by CFR 
section and paragraph. We have not included in our estimates certain 
requirements performed in the normal course of business and considered 
usual and customary.

                                   Respondents' Estimated Annual Burden Hours
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                                                                                 Average number
  Citation 30 CFR part 1243      Reporting and recordkeeping     Hour  burden       of annual      Annual burden
                                         requirement                                responses          hours
----------------------------------------------------------------------------------------------------------------
1243.4(a)(1).................  How do I suspend compliance      1 hour........  40 (surety                    40
                                with an order?.                                  instruments:
                               (a) If you timely appeal an                       Forms ONRR-
                                order, and if that order or                      4435, ONRR-
                                portion of that order: (1)                       4436, ONRR-
                                Requires you to make a                           4437, or TS).
                                payment, and you want to
                                suspend compliance with that
                                order, you must post a bond or
                                other surety instrument or
                                demonstrate financial solvency
                                * * *.
                                                               -------------------------------------------------
1243.6.......................  When must I or another person     Burden hours covered under Sec.   1243.4(a)(1).
                                meet the bonding or financial
                                solvency requirements under
                                this part?
                               If you must meet the bonding or
                                financial solvency
                                requirements under Sec.
                                1243.4(a)(1), or if another
                                person is meeting your bonding
                                or financial solvency
                                requirements, then either you
                                or the other person must post
                                a bond or other surety
                                instrument or demonstrate
                                financial solvency within 60
                                days after you receive the
                                order or the Notice of Order.
                                                               -------------------------------------------------
1243.7(a)....................  What must a person do when        Burden hours covered under Sec.   1243.4(a)(1).
                                posting a bond or other surety
                                instrument or demonstrating
                                financial solvency on behalf
                                of an appellant?
                               If you assume an appellant's
                                responsibility to post a bond
                                or other surety instrument or
                                demonstrate financial solvency
                                * * * (a) Must notify ONRR in
                                writing * * * that you are
                                assuming the appellant's
                                responsibility * * *.
                                                               -------------------------------------------------
1243.8(a)(2) and (b)(2)......  When will ONRR suspend my         Burden hours covered under Sec.   1243.4(a)(1).
                                obligation to comply with an
                                order?
                               (a) Federal leases. * * * (2)
                                If the amount under appeal is
                                $10,000 or more, ONRR will
                                suspend your obligation to
                                comply with that order if you:.
                               (i) Submit an ONRR-specified
                                surety instrument under
                                subpart B of this part within
                                a time period ONRR prescribes;
                                or.
                               (ii) Demonstrate financial
                                solvency under subpart C.
                               (b) Indian leases. * * * (2) If
                                the amount under appeal is
                                $1,000 or more, ONRR will
                                suspend your obligation to
                                comply with that order if you
                                submit an ONRR-specified
                                surety instrument under
                                subpart B of this part within
                                a time period ONRR prescribes.
                                                               -------------------------------------------------
1243.101(b)..................  How will ONRR determine the       Burden hours covered under Sec.   1243.4(a)(1).
                                amount of my bond or other
                                surety instrument?
                               * * * (b) If your appeal is not
                                decided within 1 year from the
                                filing date, you must increase
                                the surety amount to cover
                                additional estimated interest
                                for another 1-year period. You
                                must continue to do this
                                annually * * *.
                                                               -------------------------------------------------
1243.200(a) and (b)..........  How do I demonstrate financial   1 hour........  65 self-bonding               65
                                solvency?                                        submissions.
                               (a) To demonstrate financial
                                solvency under this part, you
                                must submit an audited
                                consolidated balance sheet,
                                and, if requested by the ONRR
                                bond-approving officer, up to
                                3 years of tax returns to the
                                ONRR, * * *.
                               (b) You must submit an audited
                                consolidated balance sheet
                                annually, and, if requested,
                                additional annual tax returns
                                on the date ONRR first
                                determined that you
                                demonstrated financial
                                solvency as long as you have
                                active appeals, or whenever
                                ONRR requests. * * *.
                                                               -------------------------------------------------
1243.201(c)(1), (c)(2)(i) and  How will ONRR determine if I am        Burden hours covered under Sec.  Sec.
 (c)(2)(ii) and (d)(2).         financially solvent?                  1243.4(a)(1) and 1243.200(a) and (b).
                               * * * (c) If your net worth,
                                minus the amount we would
                                require as surety under
                                subpart B for all orders you
                                have appealed is less than
                                $300 million, you must submit
                                * * *:.
                                                               -------------------------------------------------

[[Page 25370]]

 
                               (1) A written request asking us
                                to consult a business-
                                information, or credit-
                                reporting service or program
                                to determine your financial
                                solvency; and
                               (2) A nonrefundable $50
                                processing fee:
                               (i) You must pay the processing
                                fee * * *;
                               (ii) You must submit the fee
                                with your request * * * and
                                then annually on the date we
                                first determined that you
                                demonstrated financial
                                solvency, as long as you are
                                not able to demonstrate
                                financial solvency * * * and
                                you have active appeals.
                               (d)* * * (2) For us to consider
                                you financially solvent, the
                                business-information or credit-
                                reporting service or program
                                must demonstrate your degree
                                of risk as low to moderate: *
                                * *
                                                               -------------------------------------------------
1243.202(c)..................  When will ONRR monitor my         Burden hours covered under Sec.   1243.4(a)(1).
                                financial solvency?
                               * * * (c) If our bond-approving
                                officer determines that you
                                are no longer financially
                                solvent, you must post a bond
                                or other ONRR-specified surety
                                instrument under subpart B.
                                                               -------------------------------------------------
    Total Burden..............................................  ..............  105.............             105
----------------------------------------------------------------------------------------------------------------

    Estimated Annual Reporting and Recordkeeping ``Non-hour'' Cost 
Burden: There are no additional recordkeeping costs associated with 
this information collection. However, ONRR estimates 5 appellants per 
year will pay a $50 fee to obtain credit data from a business 
information or credit reporting service, which is a total ``non-hour'' 
cost burden of $250 per year (5 appellants per year x $50 = $250).
    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. We also will post the ICR on our 
Web site at http://www.onrr.gov/Laws_R_D/FRNotices/ICR0122.htm.
    Public Comment Policy: We 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.
    Information Collection Clearance Officer: Rachel Drucker (202) 208-
3568.

    Dated: April 29, 2011.
Gregory J. Gould,
Director, Office of Natural Resources Revenue.
[FR Doc. 2011-10905 Filed 5-3-11; 8:45 am]
BILLING CODE 4310-MR-P