[Federal Register Volume 79, Number 102 (Wednesday, May 28, 2014)]
[Notices]
[Pages 30651-30653]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-12185]


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DEPARTMENT OF THE INTERIOR

Office of Natural Resources Revenue

[Docket No. ONRR-2011-0009; DS63610300 DR2PS0000.CH7000 134D0102R2]


Information Collection Request Renewal; Collection of Monies Due 
the Federal Government; Agency Information Collection Activities: 
Submitted for Office of Management and Budget Review; Comment Request

AGENCY: Office of Natural Resources Revenue, Interior.

ACTION: Notice of an extension of a currently approved information 
collection (OMB Control Number 1012-0008).

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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) covers the paperwork requirements 
in the regulations under 30 CFR part 1218.

DATES: Submit written comments on or before July 28, 2014.

ADDRESSES: You may submit comments on this ICR to ONRR by using one of 
the following three methods (please reference ICR 1012-0008 in your 
comments):
     Electronically go to http://www.regulations.gov. In the 
entry titled ``Enter Keyword or ID,'' enter ONRR-2011-0009, and then 
click search. Follow the instructions to submit public comments. We 
will post all comments.
     Mail comments to Luis Aguilar, Regulatory Specialist, 
Office of Natural Resources Revenue, P.O. Box 25165, MS 61013A, Denver, 
Colorado 80225.
     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.

FOR FURTHER INFORMATION CONTACT: For questions on technical issues, 
contact Ms. Lee-Ann Martin, Reporting and Solid Mineral Services, ONRR, 
telephone (303) 231-3313, 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, (2) any associated forms, and 
(3) the regulations that require the subject collection of information.

[[Page 30652]]


SUPPLEMENTARY INFORMATION:
    Title: 30 CFR Part 1218, Collection of Monies Due the Federal 
Government.
    OMB Control Number: 1012-0008.
    Bureau Form Number: Form ONRR-4425.
    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. The Secretary also has a trust responsibility to 
manage Indian lands and to 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 leases on Federal and Indian lands are posted on 
our Web site at http://www.onrr.gov/Laws_R_D/PubLaws/default.htm.
    Minerals produced from Federal and Indian leases vary greatly in 
the nature of occurrence, production, and processing methods. When a 
company or an individual enters into a lease to explore, develop, 
produce, and dispose of minerals from Federal or Indian lands, that 
company or individual agrees to pay the lessor a share in an amount or 
value of production from the leased lands. The lessee is required to 
report various kinds of information to the lessor relative to the 
disposition of the leased minerals. Such information is generally 
available within the records of the lessee or others involved in 
developing, transporting, processing, purchasing, or selling such 
minerals. The information collected includes data necessary to ensure 
that production is accurately valued and that royalties are 
appropriately paid.
    This ICR covers unique reporting circumstances, including (1) 
Cross-lease netting in calculation of late-payment interest; (2) 
designation of a designee; and (3) and Tribal permission for recoupment 
on Indian oil and gas leases.

Cross-Lease Netting in Calculation of Late-Payment Interest

    Regulations at Sec.  1218.54 require ONRR to assess interest on 
unpaid or underpaid amounts. ONRR distributes these interest revenues 
to States, Indian tribes, and the U.S. Treasury, based on financial 
lease distribution information. Current regulations at Sec.  1218.42 
provide that an overpayment on a lease or leases may be offset against 
an underpayment on a different lease or leases to determine the net 
payment subject to interest when certain conditions are met. This 
process is called cross-lease netting. Sections 6(a), (b), and (c) of 
the Royalty Simplification and Fairness Act (RSFA) require ONRR to pay 
interest on lessees' Federal oil and gas overpayments made on or after 
February 13, 1997 (six months after the August 13, 1996, enactment of 
RSFA). ONRR implemented this RSFA provision in 1997 and began 
calculating interest on both underpayments and overpayments for Federal 
oil and gas leases, making the cross-lease netting provisions at Sec.  
1218.42 no longer applicable for these leases. However, lessees must 
still comply with the provisions at 30 CFR 1218.42(b) and (c) for 
Indian Tribal leases or Federal leases other than oil and gas. They 
must demonstrate that cross-lease netting is correct by submitting 
production reports, pipeline allocation reports, or other similar 
documentary evidence. This information is necessary in order for ONRR 
to determine the correct amount of interest that the lessee owes and to 
ensure that we collect in full all monies owed to the Federal 
Government.

Designation of Designee

    Requirements of RSFA established that owners of, primarily, 
operating rights or, secondarily, lease record title (both referred to 
as ``lessees'') are responsible for making royalty and related payments 
on Federal oil and gas leases (see 30 CFR 1218.52). It is common 
however, for a payor--rather than a lessee--to make these payments. 
When a payor makes payments on behalf of a lessee, RSFA section 6(g) 
requires that the lessee designate the payor as its designee and notify 
ONRR of this arrangement in writing. We designed Form ONRR-4425, 
Designation Form for Royalty Payment Responsibility, to request all the 
information necessary for lessees to comply with these RSFA 
requirements when choosing to designate an agent to pay for them. We 
require this information to ensure proper mineral revenue collection.

Tribal Permission for Recoupment on Indian Oil and Gas Leases

    In order to report cross-lease netting on Indian oil and gas 
leases, lessees must also comply with regulations at 30 CFR 1218.53(b), 
allowing only lessees with written permission from the Tribe to recoup 
overpayments on one lease against a different lease for which the Tribe 
is the lessor. The payor must provide ONRR with a copy of the Tribe's 
written permission. Generally, a payor may recoup an overpayment 
against the current month's royalties or other revenues owed on the 
same Tribal lease. For any month, a payor may not recoup more than 50 
percent of the royalties or other revenues owed in that month (under an 
individual allotted lease) or more than 100 percent of the royalties or 
other revenues owed in that month (under a Tribal lease). Lessees 
report oil and gas lease recoupments on Form ONRR-2014, Report of Sales 
and Royalty Remittance. The burden hours are covered under OMB Control 
Number 1012-0004.

OMB Approval

    We are requesting OMB's approval to continue to collect this 
information. Not collecting this information would limit the 
Secretary's ability to discharge the duties of the office and may also 
result in the loss of royalty payments. Proprietary information 
submitted is protected, and there are no questions of a sensitive 
nature included in this information collection.
    Frequency: On occasion.
    Estimated Number and Description of Respondents: 1,630 Federal and 
Indian lessees.
    Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 1,255 
hours.
    We have not included in our estimates certain requirements 
performed in the normal course of business and that are considered 
usual and customary. The following chart shows the estimated burden 
hours by CFR section and paragraph:

[[Page 30653]]



                                   Respondents' Estimated Annual Burden Hours
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                                                                                  Average number
   Citation 30 CFR Part 1218       Reporting and recordkeeping      Hour burden      of annual     Annual burden
                                           requirement                               responses         hours
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           Subpart A--General Provisions--Cross-lease netting in calculation of late-payment interest.
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1218.42 (b) and (c)...........  Cross-lease netting in                         2              25              50
                                 calculation of late-payment
                                 interest. (b) Royalties
                                 attributed to production from a
                                 lease or leases which should
                                 have been attributed to
                                 production from a different
                                 lease or leases may be offset .
                                 . . if . . . the payor submits
                                 production reports, pipeline
                                 allocation reports, or other
                                 similar documentary evidence
                                 pertaining to the specific
                                 production involved which
                                 verifies the correct production
                                 information . . . . (c) If ONRR
                                 assesses late-payment interest
                                 and the payor asserts that some
                                 or all of the interest is not
                                 owed . . . the burden is on the
                                 payor to demonstrate that the
                                 exception applies. . ..
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                    Subpart B--Oil and Gas, General--How does a lessee designate a Designee?
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1218.52 (a), (c), and (d).....  How does a lessee designate a               0.75           1,600           1,200
                                 Designee? (a) If you are a
                                 lessee under 30 U.S.C. 1701(7),
                                 and you want to designate a
                                 person to make all or part of
                                 the payments due under a lease
                                 on your behalf . . . you must
                                 notify ONRR . . . in writing of
                                 such designation. . . . (c) If
                                 you want to terminate a
                                 designation . . . you must
                                 provide [the following] to ONRR
                                 in writing . . . . (d) ONRR may
                                 require you to provide notice
                                 when there is a change in the
                                 percentage of your record title
                                 or operating rights ownership.
                                The ONRR currently uses Form MMS-
                                 4425, Designation Form for
                                 Royalty Payment Responsibility,
                                 to collect this information.
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              Subpart B--Oil and Gas, General--Recoupment of overpayments on Indian mineral leases.
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1218.53 (b)...................  Recoupment of overpayments on                  1               5               5
                                 Indian mineral leases. (b) With
                                 written permission authorized
                                 by tribal statute or
                                 resolution, a payor may recoup
                                 an overpayment against
                                 royalties or other revenues
                                 owed . . . under other leases .
                                 . . . A copy of the tribe's
                                 written permission must be
                                 furnished to ONRR . . ..
                               ---------------------------------------------------------------------------------
    Total Burden..............  ................................  ..............           1,630           1,255
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    Estimated Annual Reporting and Recordkeeping ``Non-hour'' Cost 
Burden: We have identified no ``non-hour cost'' burden associated with 
this collection of information.
    Public Disclosure Statement: The PRA (44 U.S.C. 3501 et seq.) 
provides that an agency may not conduct or sponsor--and a person is not 
required to respond to--a collection of information unless it displays 
a currently valid OMB control number.
    Comments: 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.
    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.
    Public Comment Policy: We post all comments, including names and 
addresses of respondents, at http://www.regulations.gov. Before 
including your address, phone number, email 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: David Alspach (202) 219-
8526

    Dated: May 16, 2014.
Gregory J. Gould,
Director, Office of Natural Resources Revenue.
[FR Doc. 2014-12185 Filed 5-27-14; 8:45 am]
BILLING CODE 4310-MR-P