[Federal Register Volume 79, Number 183 (Monday, September 22, 2014)]
[Notices]
[Pages 56599-56602]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-22411]


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DEPARTMENT OF THE INTERIOR

Bureau of Safety and Environmental Enforcement

[Docket ID BSEE-2014-0005; OMB Control Number 1014-0015; 14XE1700DX 
EEEE500000 EX1SF0000.DAQ000]


Information Collection Activities: Unitization; Submitted for 
Office of Management and Budget (OMB) Review; Comment Request

ACTION: 30-day Notice.

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SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), BSEE 
is notifying the public that we have submitted to OMB an information 
collection request (ICR) for review approval of the paperwork 
requirements in the regulations under Subpart M, Unitization. This 
notice also provides the public a second opportunity to comment on the 
revised paperwork burden of these regulatory requirements.

DATES: You must submit comments by October 22, 2014.

ADDRESSES: Submit comments by either fax (202) 395-5806 or email 
([email protected]) directly to the Office of 
Information and Regulatory Affairs, OMB, Attention: Desk Officer for 
the Department of the Interior (1014-0015). Please provide a copy of 
your comments to BSEE by any of the means below.
     Electronically go to http://www.regulations.gov. In the 
Search box, enter BSEE-2014-0005 then click search. Follow the 
instructions to submit public comments and view all related materials. 
We will post all comments.
     Email [email protected], fax (703) 787-1546, or mail 
or hand-carry comments to the Department of the Interior; Bureau of 
Safety and Environmental Enforcement; Regulations and Standards Branch; 
ATTN: Nicole Mason; 381 Elden Street, HE3313; Herndon, Virginia 20170-
4817. Please reference ICR 1014-0015 in your comment and include your 
name and return address.

FOR FURTHER INFORMATION CONTACT: Nicole Mason, Regulations and 
Standards Branch, (703) 787-1605, to request additional information 
about this ICR. To see a copy of the entire ICR submitted to OMB, go to 
http://www.reginfo.gov (select Information Collection Review, Currently 
Under Review).

SUPPLEMENTARY INFORMATION: 
    Title: 30 CFR 250, Subpart M, Unitization.

[[Page 56600]]

    OMB Control Number: 1014-0015.
    Abstract: The Outer Continental Shelf (OCS) Lands Act, as amended 
(43 U.S.C. 1331 et seq. and 43 U.S.C. 1801 et seq.), authorizes the 
Secretary of the Interior (Secretary) to prescribe rules and 
regulations to administer leasing of the OCS. Section 1334(a) specifies 
that the Secretary ``provide for the prevention of waste and 
conservation of the natural resources of the [O]uter Continental Shelf, 
and the protection of correlative rights therein'' and include 
provisions for ``unitization, pooling, and drilling agreements.''
    In addition to the general rulemaking authority of the OCS Lands 
Act at 43 U.S.C. 1334, section 301(a) of the Federal Oil and Gas 
Royalty Management Act (FOGRMA), 30 U.S.C. 1751(a), grants authority to 
the Secretary to prescribe such rules and regulations as are reasonably 
necessary to carry out FOGRMA's provisions. While the majority of 
FOGRMA is directed to royalty collection and enforcement, some 
provisions apply to offshore operations. For example, section 108 of 
FOGRMA, 30 U.S.C. 1718, grants the Secretary broad authority to inspect 
lease sites for the purpose of determining whether there is compliance 
with the mineral leasing laws. Section 109(c)(2) and (d)(1), 30 U.S.C. 
1719(c)(2) and (d)(1), impose substantial civil penalties for failure 
to permit lawful inspections and for knowing or willful preparation or 
submission of false, inaccurate, or misleading reports, records, or 
other information. Because the Secretary has delegated some of the 
authority under FOGRMA to BSEE, 30 U.S.C. 1751 is included as 
additional authority for these requirements.
    The Independent Offices Appropriations Act (31 U.S.C. 9701), the 
Omnibus Appropriations Bill (Pub. L. 104-133, 110 Stat. 1321, April 26, 
1996), and the Office of Management and Budget (OMB) Circular A-25, 
authorize Federal agencies to recover the full cost of services that 
confer special benefits. Under the Department of the Interior's (DOI's) 
implementing policy, BSEE is required to charge fees for services that 
provide special benefits or privileges to an identifiable non-Federal 
recipient above and beyond those which accrue to the public at large. 
Voluntary or revised unitization requests are required in Subpart M and 
are subject to cost recovery; BSEE regulations specify service fees for 
these requests.
    These authorities and responsibilities are among those delegated to 
BSEE. The regulations at 30 CFR 250, Subpart M, concern the regulatory 
requirements relating to unitization on the OCS and are the subject of 
this collection.
    Responses are voluntary, mandatory, and are required to obtain or 
retain benefits. No questions of a sensitive nature are asked. The BSEE 
protects information considered proprietary under the Freedom of 
Information Act (5 U.S.C. 552) and DOI's regulations (43 CFR 2), and 
under regulations at 30 CFR part 250.197, Data and information to be 
made available to the public or for limited inspection, 30 CFR part 
252, OCS Oil and Gas Information Program.
    The BSEE must approve any lessee's proposal to enter an agreement 
to unitize operations under two or more leases and for modifications 
when warranted. We use the information to ensure that operations under 
the proposed unit agreement will result in preventing waste, conserving 
natural resources, and protecting correlative rights including the 
government's interests.
    Frequency: Generally on occasion.
    Description of Respondents: Potential respondents comprise Federal 
OCS oil, gas, and sulphur lessees and/or operators, and holders of 
pipeline rights-of-way.
    Estimated Reporting and Recordkeeping Hour Burden: The estimated 
annual hour burden for this information collection is a total of 5,772 
hours. The following chart details the individual components and 
estimated hour burdens. In calculating the burdens, we assumed that 
respondents perform certain requirements in the normal course of their 
activities. We consider these to be usual and customary and took that 
into account in estimating the burden.

                                                Burden Breakdown
----------------------------------------------------------------------------------------------------------------
                                    Recordkeeping and                         Average number     Annual burden
 Citation 30 CFR 250 Subpart M    reporting requirement     Hour burden      annual responses        hours
----------------------------------------------------------------------------------------------------------------
                                                    Non-hour cost burdens *
----------------------------------------------------------------------------------------------------------------
                                                    Requests
----------------------------------------------------------------------------------------------------------------
1301...........................  Description of            Burden included in the following    0
                                  requirements.                         sections
----------------------------------------------------------------------------------------------------------------
1301(d), (f)(3), (g)(1),         Request suspension of   Burden covered under Subpart A [1014- 0
 (g)(2)(ii).                      production or                          0022]
                                  operations.
----------------------------------------------------------------------------------------------------------------
1302(b)........................  Request preliminary     116..............  1 request........  116
                                  determination on
                                  competitive reservoir.
1304(b)........................  Request compulsory      234..............  1 request........  234
                                  unitization,
                                  including submitting
                                  unit agreement, unit
                                  operating agreement,
                                  initial plan of
                                  operation, obtain
                                  approval of Regional
                                  Supervisor if
                                  required, and
                                  supporting data;
                                  serving non-
                                  consenting lessees
                                  with documents.
1304(d)........................  Request hearing on      1................  1 request........  1
                                  required unitization.
----------------------------------------------------------------------------------------------------------------
                                 Subtotal                                   3 responses......  351
----------------------------------------------------------------------------------------------------------------
                                                   Submittals
----------------------------------------------------------------------------------------------------------------
1302(b)........................  Submit concurrence or   47...............  1 request........  47
                                  objection on
                                  competitiveness with
                                  supporting evidence.

[[Page 56601]]

 
1302(c), (d)...................  Submit joint plan of    68...............  1 plan...........  68
                                  operations,
                                  supplemental plans,
                                  or a separate plan if
                                  agreement cannot be
                                  reached.
1303; 1304.....................  * Submit revisions or   15...............  41 revs/mods.....  615
                                  modifications to unit
                                  agreement, unit
                                  operating agreement,
                                  plan of operation,
                                  change of unit
                                  operator, etc.
----------------------------------------------------------------------------------------------------------------
                                       $896 fees x 41 revisions/modifications = $36,736.
----------------------------------------------------------------------------------------------------------------
1303; 1304.....................  * Submit initial, and   76...............  9 submissions....  684
                                  revisions to,
                                  participating area.
1304(d)........................  Submit statement at     5................  1 statement......  5
                                  hearing on compulsory
                                  unitization.
1304(e)........................  Pay for and submit      1................  1 submission.....  1
                                  three copies of
                                  verbatim transcript
                                  of hearing.
----------------------------------------------------------------------------------------------------------------
                                 Court reporter and 3 transcript copies for 1 hearing = $500.
----------------------------------------------------------------------------------------------------------------
                                 Subtotal                                   54 responses.....  1,420
----------------------------------------------------------------------------------------------------------------
                                       $37,236 non-hour cost burdens.
----------------------------------------------------------------------------------------------------------------
                                                     General
----------------------------------------------------------------------------------------------------------------
1303...........................  Apply for voluntary     500..............  8 apps/plans.....  4,000
                                  unitization,
                                  including submitting
                                  unit agreement, unit
                                  operating agreement,
                                  initial plan of
                                  operation, obtain
                                  approval of Regional
                                  Supervisor if
                                  required, and
                                  supporting data;
                                  request for variance
                                  from model agreement
                                  and other related
                                  requirements.
----------------------------------------------------------------------------------------------------------------
                                        $12,619 fee x 8 applications/plans = $100,952.
----------------------------------------------------------------------------------------------------------------
1304(f)........................  Appeal final order of        Exempt as defined in 5 CFR       0
                                  compulsory                       1320.4(a)(2), (c)
                                  unitization.
----------------------------------------------------------------------------------------------------------------
1300-1304......................  General departure and   1................  1 requests.......  1
                                  alternative
                                  compliance requests
                                  not specifically
                                  covered elsewhere in
                                  subpart M regulations.
----------------------------------------------------------------------------------------------------------------
                                 Subtotal                                   9 responses......  4,001
----------------------------------------------------------------------------------------------------------------
                                      $100,952 non-hour cost burdens.
----------------------------------------------------------------------------------------------------------------
                               Total Burden                                 66 Responses.....  5,772
----------------------------------------------------------------------------------------------------------------
                                      $138,188 Non-Hour Cost Burdens.
----------------------------------------------------------------------------------------------------------------
* These requirements are specified in each Unit Agreement.

    Estimated Reporting and Recordkeeping Non-Hour Cost Burden: We have 
identified three non-hour cost burdens associated with this information 
collection. Section 250.1303 requires respondents to pay filing fees 
when (1) applying for a voluntary unitization proposal or unit 
expansion ($12,619), as well as a (2) unitization revision ($896). The 
filing fees are required to recover the Federal Government's processing 
costs. Section 250.1304(d) provides an opportunity for parties notified 
of compulsory unitization to request a hearing; therefore Sec.  
250.1304(e) requires the party seeking the compulsory unitization to 
(3) pay for the court reporter and three copies of the verbatim 
transcript of the hearing (approximately $500).
    It should be noted there have been no such hearings in the recent 
past, and none are expected in the near future. We have not identified 
any other non-hour cost burdens associated with this collection of 
information. We estimate a total reporting non-hour cost burden of 
$138,188. Refer to the chart in Section A.12 of this supporting 
statement for the specific breakdown.
    Public Disclosure Statement: The PRA (44 U.S.C. 3501, et seq.,) 
provides that an agency may not conduct or sponsor a collection of 
information unless it displays a currently valid OMB control number. 
Until OMB approves a collection of information, you are not obligated 
to respond.
    Comments: Section 3506(c)(2)(A) of the PRA (44 U.S.C. 3501, et 
seq.,) requires each agency ``. . . to provide notice . . . 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 
collection is necessary or useful; (b) evaluate the accuracy 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

[[Page 56602]]

respondents, including the use of technology.
    To comply with the public consultation process, on May 19, 2014, we 
published a Federal Register notice (79 FR 28758) announcing that we 
would submit this ICR to OMB for approval. The notice provided the 
required 60-day comment period. In addition, Sec.  250.199 provides the 
OMB Control Number for the information collection requirements imposed 
by the 30 CFR 250, Subpart M regulations. The regulation also informs 
the public that they may comment at any time on the collections of 
information and provides the address to which they should send 
comments. We received no comments in response to the Federal Register 
notice.
    Public Availability of Comments: Before including your address, 
phone number, email address, or other personal identifying information 
in your comment, you should be aware 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 
your personal identifying information from public review, we cannot 
guarantee that we will be able to do so.
    Information Collection Clearance Officer: Cheryl Blundon, 703-787-
1607.

    Dated: September 4, 2014.
Robert W. Middleton,
Deputy Chief, Office of Offshore Regulatory Programs.
[FR Doc. 2014-22411 Filed 9-19-14; 8:45 am]
BILLING CODE 4310-VH-P