[Federal Register Volume 80, Number 160 (Wednesday, August 19, 2015)]
[Notices]
[Pages 50320-50324]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-20369]


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DEPARTMENT OF THE INTERIOR

Bureau of Safety and Environmental Enforcement

[Docket ID BSEE-2015-0008; OMB Control Number 1014-0005; 14XE1700DX 
EEEE500000 EX1SF0000.DAQ000]


Information Collection Activities: Relief or Reduction in Royalty 
Rates; 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), the 
Bureau of Safety and Environmental Enforcement (BSEE) is notifying the 
public that we have submitted to OMB an information collection request 
(ICR) to renew approval of the paperwork requirements in the 
regulations under Relief or Reduction in Royalty Rates. 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 September 18, 2015.

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 (1014-0005). 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-2015-0008 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: Cheryl Blundon; 45600 Woodland Road, Sterling, VA 20166. Please 
reference ICR 1014-0005 in your comment and include your name and 
return address.

FOR FURTHER INFORMATION CONTACT: Cheryl Blundon, Regulations and 
Standards Branch, (703) 787-1607, 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 203, Relief or Reduction in Royalty Rates.
    OMB Control Number: 1014-0005.
    Abstract: The Outer Continental Shelf (OCS) Lands Act, 43 U.S.C. 
1337, as amended by the OCS Deep Water Royalty Relief Act (DWRRA), 
Public Law 104-58 and the Energy Policy Act of 2005, Public Law 109-
058, gives the Secretary of the Interior (Secretary) the authority to 
reduce or eliminate royalty or any net profit share specified in OCS 
oil and gas leases to promote increased production. The DWRRA also 
authorized the Secretary to suspend royalties when necessary to promote 
development or recovery of marginal resources on producing or non-
producing leases in the Gulf of Mexico (GOM) west of 87 degrees, 30 
minutes West longitude.
    Section 302 of the DWRRA provides that new production from a lease 
in existence on November 28, 1995, in a water depth of at least 200 
meters, and in the GOM west of 87 degrees, 30 minutes West longitude 
qualifies for royalty suspension in certain situations. To grant a 
royalty suspension, the Secretary must determine that the new 
production or development would not be economic in the absence of 
royalty relief. The Secretary must then determine the volume of 
production on which no royalty would be due in order to make the new 
production from the lease economically viable. This determination is 
done on a case-by-case basis. Production from leases in the same water 
depth and area issued after

[[Page 50321]]

November 28, 2000, also can qualify for royalty suspension in addition 
to any that may be included in their lease terms.
    In addition, Federal policy and statute require us to recover the 
cost of services that confer special benefits to identifiable non-
Federal recipients. The Independent Offices Appropriation Act (31 
U.S.C. 9701), Office of Management and Budget (OMB) Circular A-25, and 
the Omnibus Appropriations Bill (Pub. L. 104-134, 110 Stat. 1321, April 
26, 1996) authorize the Bureau of Safety and Environmental Enforcement 
(BSEE) to collect these fees to reimburse us for the cost to process 
applications or assessments.
    Regulations at 30 CFR part 203 implement these statutes and policy 
and require respondents to pay a fee to request royalty relief. OMB 
approved the information collection burden under this collection 1014-
0005. Section 203.3(a) states that, ``We will specify the necessary 
fees for each of the types of royalty-relief applications and possible 
BSEE audits in a Notice to Lessees. We will periodically update the 
fees to reflect changes in costs, as well as provide other information 
necessary to administer royalty relief.''
    Responses are mandatory and are required to obtain or retain a 
benefit. No questions of a sensitive nature are asked. BSEE will 
protect information from respondents considered proprietary under the 
Freedom of Information Act (5 U.S.C. 552) and DOI's implementing 
regulations (43 CFR 2) and under regulations at 30 CFR 203.61, How do I 
assess my chances for getting relief? and 30 CFR 250.197, Data and 
information to be made available to the public or for limited 
inspection.
    The information collected under this subpart is used to make 
decisions on the economic viability of leases requesting a suspension 
or elimination of royalty or net profit share. These decisions have 
enormous monetary impact on both the lessee and the Federal Government. 
Royalty relief can lead to increased production of natural gas and oil, 
creating profits for lessees, and royalty and tax revenues for the 
Federal Government that they might not otherwise receive. We could not 
make an informed decision without the collection of information 
required by 30 CFR part 203.
    Frequency: On occasion and as required by regulations.
    Description of Respondents: Potential respondents comprise OCS 
Federal oil, gas, or sulphur lessees and/or operators.
    Estimated Reporting and Recordkeeping Hour Burden: The estimated 
annual hour burden for this information collection is a total of 724 
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 Table
----------------------------------------------------------------------------------------------------------------
                                                                       Application/audit fees (rounded)
                                         Reporting or       ----------------------------------------------------
 Citation 30 CFR 203 and related         recordkeeping                                             Annual burden
              NTL(s)                     requirement +         Hour burden    Average number of        hours
                                                                               annual responses      (rounded)
----------------------------------------------------------------------------------------------------------------
2; 3; 4; 70......................     These sections contain general references to submitting                  0
                                       reports, applications, requests, copies, demonstrating
                                      qualifications, for BSEE approval--burdens covered under
                                                        specific requirements
----------------------------------------------------------------------------------------------------------------
               Royalty Relief for Ultra-Deep Gas Wells and Deep Gas Wells on Shallow Water Leases
----------------------------------------------------------------------------------------------------------------
31(c)............................  Request a refund of or                 1  1 request..........               1
                                    recoup royalties from
                                    qualified ultra-deep
                                    wells.
35(a); 44(a); 47.................  Notify BSEE of intent to               1  2 notifications....               2
                                    begin drilling and
                                    depth of target.
35(c), (d); 44(b), (d), (e)......  Notify BSEE that                       2  2 notifications....               4
                                    production has begun,
                                    request confirmation of
                                    the size of RSV--
                                    provide any/all
                                    supporting
                                    documentation.
35(d); 44(e).....................  Request to extend the                  4  1 request..........               4
                                    deadline for beginning
                                    production with
                                    required supporting
                                    documentation.
41(d)............................  Request a refund of or                 1  1 request..........               1
                                    recoup royalties from
                                    qualified wells >200
                                    meters but <400 meters.
35(a); 44(a); 47(a)..............  Notify BSEE of intent to               1  2 notifications....               2
                                    begin drilling.
35(c), (d); 44(b), (d), (e)......  Notify BSEE that                       2  2 notifications....               4
                                    production has begun,
                                    request confirmation of
                                    the size of RSV,
                                    provide any/all
                                    supporting
                                    documentation (i.e.,
                                    request to extend
                                    deadline, credible
                                    activity schedule, etc).
46...............................  Provide data from well                 8  1 response.........               8
                                    to confirm and attest
                                    well drilled was an
                                    unsuccessful certified
                                    well with supporting
                                    documentation and
                                    request supplement
                                    (RSS).
                                                            ----------------------------------------------------
49(b)............................  Notify BSEE or decision      BSEE SOL requires that this reg text stay for
                                    to exercise option to       legacy purposes only. Last time any respondent
                                    replace one set of deep         could use was 2004; hence, no burden.
                                    gas royalty suspension
                                    terms for another set
                                    of such terms.
                                                            ----------------------------------------------------
    Subtotal.....................  ........................  ..............  8 responses........              20
----------------------------------------------------------------------------------------------------------------

[[Page 50322]]

 
                                    End of Life and Special Royalty Relief *
----------------------------------------------------------------------------------------------------------------
51; 83; 84; NTL..................  Application--leases that             100  1 application every              10
                                    generate earnings that                    10 years.
                                    cannot sustain
                                    continued production
                                    (end-of-life lease);
                                    required supporting
                                    documentation; include
                                    payment confirmation
                                    receipt.
                                                            ----------------------------------------------------
                                                               application 1/10 x $8,000 = $800 *; audit 1/10 x
                                                                               $12,500 = $1,250
                                                            ----------------------------------------------------
52...............................  Demonstrate ability to                 1  1 response.........               1
                                    qualify/requalify for
                                    royalty relief or to re-
                                    qualify.
55...............................  Renounce relief                        1  1 letter every 10                 1
                                    arrangement (end-of-                      years.
                                    life) (seldom, if ever
                                    will be used; minimal
                                    burden to prepare
                                    letter).
80; NTL..........................  Application--apart from              250  1 application every              25
                                    formal programs for                       10 years.
                                    royalty relief for
                                    marginal producing
                                    lease (Special Case
                                    Relief); required
                                    supporting
                                    documentation; include
                                    payment confirmation
                                    receipt.
                                                            ----------------------------------------------------
                                                               application 1/10 x $8,000 ** = $800 audit 1/10 x
                                                                               $12,500 = $1,250
                                                            ----------------------------------------------------
80; NTL..........................  Application--apart from            1,000  1 application every             100
                                    formal programs for                       10 years.
                                    royalty relief for
                                    marginal expansion
                                    project or marginal non-
                                    producing lease
                                    (Special Case Relief);
                                    required supporting
                                    documentation; include
                                    payment confirmation
                                    receipt.
                                                            ----------------------------------------------------
                                                              application 1/10 x $19,500 ** = $1,950; audit 1/10
                                                                              x $18,750 = $1,875
                                                            ----------------------------------------------------
    Subtotal.....................  ........................  ..............  2 responses                     137
                                                                              (rounded).
                                                                            ------------------------------------
                                                             ..............              $7,925 fees
----------------------------------------------------------------------------------------------------------------
                                                   CPA Report
----------------------------------------------------------------------------------------------------------------
81; 83-90; 63....................  Required reports;          Burden included with applications                0
                                    extension justification.
                                                            ----------------------------------------------------
                                                                1 CPA report x $45,000/10 each report = $4,500
                                                            ----------------------------------------------------
    Subtotal.....................  ........................  ..............  1 response.........          $4,500
----------------------------------------------------------------------------------------------------------------
                                      Deep Water Royalty Relief Act (DWRAA)
----------------------------------------------------------------------------------------------------------------
61; 62; 64; 65; 71; 83; 85-89;     Application--preview                 900  1 application every              90
 NTL.                               assessment (seldom if                     10 years.
                                    ever will be used as
                                    applicants generally
                                    opt for binding
                                    determination by BSEE
                                    instead) and required
                                    supporting
                                    documentation; include
                                    payment confirmation
                                    receipt.
                                                            ----------------------------------------------------
                                                                     application 1/10 x $28,500 = $2,850
                                                            ----------------------------------------------------
62; 64; 65; 71; 83; 85-89; NTL...  Application--leases in             2,000  1 application every             200
                                    designated areas of GOM                   10 years.
                                    deep water acquired in
                                    lease sale before 11/28/
                                    95 or after 11/28/00
                                    and are producing (deep
                                    water expansion
                                    project); required
                                    supporting
                                    documentation; include
                                    payment confirmation
                                    receipt.
                                                            ----------------------------------------------------
                                                                     application 1/10 x $19,500 = $1,950
                                                            ----------------------------------------------------
62; 64; 65; 203.71; 81; 83; 85-    Application--leases in             2,000  1 application every             200
 89; NTL.                           designated areas of                       10 years.
                                    deep water GOM,
                                    acquired in lease sale
                                    before 11/28/95 or
                                    after 11/28/00 that
                                    have not produced (pre-
                                    act or post-2000 deep
                                    water leases); required
                                    supporting
                                    documentation; include
                                    payment confirmation
                                    receipt.
                                                            ----------------------------------------------------

[[Page 50323]]

 
                                                             application 1/10 x $34,000 = $3,400 *; audit 1/10 x
                                                                               $37,500 = $3,750
                                                            ----------------------------------------------------
69; NTL..........................  Application--short form               40  1 application every               4
                                    to add or assign pre-                     10 years.
                                    Act lease and required
                                    supporting
                                    documentation; include
                                    payment confirmation
                                    receipt.
                                                            ----------------------------------------------------
                                                                       application 1/10 x $1,000 = $100
                                                            ----------------------------------------------------
70; 81; 90; 76(c), (e); NTL......  Submit post-production                50  1 report * every 10               5
                                    development report;                       years.
                                    extension
                                    justification. #
                                    Reserve right to audit
                                    (1 audit every 10
                                    years) after production
                                    starts to confirm cost
                                    estimates of the
                                    application; include
                                    payment confirmation
                                    receipt.
                                                            ----------------------------------------------------
                                                                      # 1 audit 1/10 x $18,750 = $1,875
                                                            ----------------------------------------------------
74; 75; 76(d); NTL...............  Redetermination and                  500  1 redetermination                50
                                    required supporting                       every 10 years.
                                    documentation; include
                                    payment confirmation
                                    receipt.
                                                            ----------------------------------------------------
                                                                    application 1/10 x $16,000 = $1,600 *
                                                            ----------------------------------------------------
77...............................  Renounce relief                        1  1 letter every 10                 1
                                    arrangement (deep                         years.
                                    water) (seldom, if ever
                                    will be used; minimal
                                    burden to prepare
                                    letter).
                                                            ----------------------------------------------------
79...............................  Request reconsideration    This was a regulatory requirement                0
                                    of BSEE field              for leases issued prior to 1995
                                    designation.
                                                            ----------------------------------------------------
79(c); 76(b).....................  Request extension of                   2  1 request every 10                1
                                    deadline to start                         years.
                                    construction.
                                                            ----------------------------------------------------
81; 83-90........................  Required reports;          Burden included with applications                0
                                    extension justification.
                                                            ----------------------------------------------------
    Subtotal.....................  ........................  ..............  3 responses........             551
                                                                            ------------------------------------
                                                             ..............              $15,525 fees
----------------------------------------------------------------------------------------------------------------
                                                  Recordkeeping
----------------------------------------------------------------------------------------------------------------
81(d)............................  Retain supporting cost                 8  2 recordkeepers....              16
                                    records for post-
                                    production development/
                                    fabrication reports
                                    (records retained as
                                    usual/customary
                                    business practice;
                                    minimal burden to make
                                    available at BSEE
                                    request).
                                                            ----------------------------------------------------
    Subtotal.....................  ........................  ..............  2 recordkeepers....              16
                                                                            ------------------------------------
      Total Annual Burden........  ........................  ..............  16 Responses.......             724
                                                                            ------------------------------------
                                                             ..............              $27,950 Fees
----------------------------------------------------------------------------------------------------------------
+ In the future, BSEE may require electronic filing of some submissions.
* CPA certification expense burden also imposed on applicant.
** These applications currently do not have a set fee since they are done on a case-by-case basis.
Note: Applications include numerous items such as: Transmittal letters, letters of request, modifications to
  applications, reapplications, etc.

    Estimated Reporting and Recordkeeping Non-Hour Cost Burden: We have 
identified several non-hour cost burdens associated with the collection 
of information for a total of $27,950.
    Under Sec.  203.3, we charge lessees (respondents) applying for 
royalty relief an amount that covers the cost of processing their 
applications and auditing financial data when necessary to determine 
the proposed development's economic situation. As previously discussed, 
these fees may be revised as necessary to recover our costs in 
processing royalty relief applications.
    This submission includes these audits and their associated fees. 
Since there have been no applications approved in the last 14 years 
under our formal programs for deepwater royalty relief or end of life, 
the estimated number of submittals is one every 10 years; but we 
include the audit and their respective fees due to the potential 
situation arising.
    We estimate this cost burden to be approximately $23,450 annually. 
Refer to the burden table for a breakdown.
    Under Sec.  203.81, a report prepared by an independent certified 
public accountant (CPA) must accompany the application and post-
production report (expansion project, short form, and preview 
assessment applications are excluded). The OCS Lands Act

[[Page 50324]]

applications will require this report only once; the DWRRA applications 
will require this report at two stages--with the application and post-
production development report for successful applicants. We estimate an 
average cost for a report is $45,000 and that one CPA certification, 
during the information collection extension period, will be necessary 
if the applications are approved. This annual cost burden is $45,000/10 
years = $4,500.
    Therefore, the total of the two burdens is estimated at $27,950. We 
have not identified any other non-hour cost burdens 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 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 respondents, including the use of 
technology.
    To comply with the public consultation process, on May 22, 2015, we 
published a Federal Register notice (80 FR 29740) announcing that we 
would submit this ICR to OMB for approval. The notice provided the 
required 60-day comment period. In addition, Sec.  203.5 provides the 
OMB Control Number for the information collection requirements imposed 
by the 30 CFR 203 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, nor did we receive 
any unsolicited comments.
    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.

    Dated: August 4, 2015.
Robert W. Middleton,
Deputy Chief, Office of Offshore Regulatory Programs.
[FR Doc. 2015-20369 Filed 8-18-15; 8:45 am]
 BILLING CODE 4310-VH-P