[Federal Register Volume 79, Number 33 (Wednesday, February 19, 2014)]
[Notices]
[Pages 9475-9478]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-03551]


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DEPARTMENT OF THE INTERIOR

Office of Natural Resources Revenue

[Docket No. ONRR-2011-0008; DS63610300 DR2PS0000.CH7000 134D0102R2]


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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[[Page 9476]]

SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), 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 ICR covers the paperwork requirements in the 
regulations under 30 CFR part 1243.

DATES: Submit written comments on or before April 21, 2014.

ADDRESSES: You may submit comments on this ICR to ONRR by using one of 
the following three methods: (Please use ``ICR 1012-0006'' as an 
identifier in your comment).
    1. 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. ONRR will 
post all comments.
    2. Mail comments to Mr. Luis Aguilar, Regulatory Specialist, ONRR, 
P.O. Box 25165, MS 61030A, Denver, Colorado 80225-0165.
    3. Hand-carry or mail comments, using an overnight courier service, 
to ONRR. Our courier address is Building 85, Room A-614, Denver Federal 
Center, West 6th Ave. and Kipling St., Denver, Colorado 80225.

FOR FURTHER INFORMATION CONTACT: For questions on technical issues, 
contact Ms. Kimberly Werner, Office of Enforcement (OE), ONRR, 
telephone (303) 231-3801 or email at [email protected]. For 
other questions, contact Mr. Luis Aguilar, telephone (303) 231-3418, or 
email at [email protected]. You may also contact Mr. Aguilar to 
obtain copies (free of charge) of (1) the ICR and (2) 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.
    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. 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/PubLaws/default.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 ONRR's determination(s).
    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 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 may suspend the 
payment requirement if the appellant submits a formal agreement of 
payment in case of default such as a bond or other surety; for Federal 
oil and gas leases, the appellant may demonstrate 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; for Federal oil and gas leases, the appellant may demonstrate 
financial solvency.
    ONRR accepts the following surety types: Form ONRR-4435, 
Administrative Appeal Bond; Form ONRR-4436, Letter of Credit; Form 
ONRR-4437, Assignment of Certificate of Deposit; 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/compliance/appeals.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 
receivable.

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 bond-approving 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

[[Page 9477]]

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 receivable, 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 a bank with the required minimum 
rating 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. 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. 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). ONRR only accepts 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.
    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: 210 
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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                                      Reporting and
   Citation  30 CFR  part 1243        recordkeeping         Hour burden       Average number of   Annual  burden
                                       requirement                            annual  responses        hours
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1243.4(a)(1);....................  How do I suspend     2 hours............  40 (surety                       80
1243.6;..........................   compliance with an                        instruments: Forms
1243.7(a);.......................   order?                                    ONRR-4435, ONRR-
1243.8(a)(2) and (b)(2);.........  (a) If you timely                          4436, ONRR-4437,
1243.101(b);.....................   appeal an order,                          or TS).
1243.202(c)......................   and if that order
                                    or portion of that
                                    order: (1)
                                    Requires you to
                                    make a payment,
                                    and you want to
                                    suspend compliance
                                    with that order,
                                    you must post a
                                    bond or other
                                    surety instrument
                                    or demonstrate
                                    financial solvency
                                    * * *.
1243.200(a) and (b);.............  How do I             2 hours............  65 self-bonding                 130
1243.201.........................   demonstrate                               submissions.
(c)(1),..........................   financial
(c)(2)(i) and....................   solvency?
(c)(2)(ii).......................  (a) To demonstrate
and (d)(2).......................   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 * * *.
                                                                            ------------------------------------

[[Page 9478]]

 
    TOTAL BURDEN.................  ...................  ...................  105................             210
----------------------------------------------------------------------------------------------------------------

    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: 
(1) Evaluate whether the proposed collection of information is 
necessary for the agency to perform its duties, including whether the 
information is useful; (2) evaluate the accuracy of the agency's 
estimate of the burden of the proposed collection of information; (3) 
enhance the quality, usefulness, and clarity of the information to be 
collected; and (4) 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: ONRR will post all comments, including names 
and addresses of respondents at http://www.regulations.gov. Before 
including Personally Identifiable Information (PII), such as address, 
phone number, email address, or other personal information in your 
comment(s), you should be aware that your entire comment (including 
PII) may be made available to the public at any time. While you may ask 
us, in your comment, to withhold PII from public view, we cannot 
guarantee that we will be able to do so.
    Information Collection Clearance Officer: David Alspach (202) 219-
8526.

Gregory J. Gould,
Director, Office of Natural Resources Revenue.
[FR Doc. 2014-03551 Filed 2-18-14; 8:45 am]
BILLING CODE 4310-T2-P