[Federal Register Volume 80, Number 238 (Friday, December 11, 2015)]
[Notices]
[Pages 77012-77016]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-31289]


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DEPARTMENT OF THE INTERIOR

Office of Natural Resources Revenue

[Docket No. ONRR-2011-0020; DS63610000 DR2PS0000.CH7000 156D0102R2]


Agency Information Collection Activities: Royalty and Production 
Reporting--OMB Control Number 1012-0004; Comment Request

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

ACTION: Notice of renewal of an existing Information Collection.

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SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), ONRR 
is inviting comments on an information collection request that we have 
submitted to the Office of Management and Budget (OMB) for review and 
approval. This Information Collection Request (ICR) covers the 
paperwork requirements under title 30, Code of Federal Regulations 
(CFR), parts 1210 and 1212. There are three forms associated with this 
information collection. This notice also provides the public a second 
opportunity to comment on the paperwork burden of the regulatory 
requirements.

DATES: Submit written comments on or before January 11, 2016.

ADDRESSES: You may submit your written comments directly to the Desk 
Officer for the Department of the Interior, Office of Information and 
Regulatory Affairs, OMB, by email to [email protected].gov or 
telefax at (202) 395-5806. Please also mail a copy of your comments to 
Mr. Luis Aguilar, Regulatory Specialist, ONRR, P.O. Box 25165, MS 
61030A, Denver, Colorado 80225-0165, or email [email protected]. 
Please reference OMB Control Number 1012-0004 in your comments.

FOR FURTHER INFORMATION CONTACT: For questions on technical issues, 
contact Ms. LeeAnn Martin, Reporting & 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 
[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. 
You may also review the information collection request online at http://www.reginfo.gov/public/do/PRAMain.

SUPPLEMENTARY INFORMATION: 

I. Abstract

    The Secretary of the United States Department of the Interior is 
responsible for mineral resource development on Federal and Indian 
lands and the Outer Continental Shelf (OCS). The Secretary's 
responsibility, according to various laws, is 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 leases on Federal 
Indian lands are available on our Web site at http://www.onrr.gov/Laws_R_D/PubLaws/default.htm.
    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, or the 
designee, must 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 of such 
minerals. The information that ONRR collects includes data necessary to 
ensure that the lessee accurately values and appropriately pays all 
royalties and other mineral revenues due.
    Reporters submit information into the ONRR financial accounting 
system that includes royalty, rental, bonus, and other payment 
information; sales volumes and values; and other royalty values. ONRR 
uses the accounting system to compare production volumes with royalty 
volumes to verify that companies reported and paid proper royalties for 
the minerals produced. Additionally, we share the data electronically 
with the Bureau of Safety and Environmental Enforcement, Bureau of Land 
Management, Bureau of Indian Affairs, and Tribal and State governments 
so they can perform their lease management responsibilities.
    We use the information collected in this ICR to ensure that 
companies properly pay royalties based on accurate production 
accounting on oil, gas, and geothermal resources that they produce from 
Federal and Indian leases. The requirement to report accurately and 
timely is mandatory. Please refer to the chart for all reporting 
requirements and associated burden hours.

Royalty Reporting

    Payors (Reporters) must report, according to various regulations, 
and remit royalties on oil, gas, and geothermal resources that they 
produced from leases on Federal and Indian lands. ONRR uses the 
following form for royalty reporting:
    Form ONRR-2014, Report of Sales and Royalty Remittance. Reporters 
submit this form monthly to report royalties on oil, gas, and 
geothermal leases, certain rents, and other lease-related transactions 
such as transportation and processing allowances, lease adjustments, 
and quality and location differentials.

Production Reporting

    Operators (Reporters) must submit, according to various 
regulations, production reports if they operate a Federal or Indian 
onshore or offshore oil and gas lease or federally approved unit or 
communitization agreement. We use the ONRR financial accounting system 
to track minerals produced from Federal and Indian lands, from the 
point of production to the point of disposition or royalty 
determination and/or point of sale. The reporters use the following 
forms for production accounting and reporting:
    Form ONRR-4054, Oil and Gas Operations Report (OGOR). Reporters 
submit this form monthly for all

[[Page 77013]]

production reporting for Outer Continental Shelf, Federal, and Indian 
leases. ONRR compares the production information with sales and royalty 
data that reporters submit on Form ONRR-2014 to ensure that the latter 
reported and paid the proper royalties on the oil and gas production to 
ONRR. ONRR uses the information from OGOR parts A, B, and C to track 
all oil and gas from the point of production to the point of first 
sale, or other disposition.
    Form ONRR-4058, Production Allocation Schedule Report (PASR). 
Reporters submit this form monthly. The facility operators manage the 
facilities and measurement points where they commingle the production 
from an offshore Federal lease or metering point with production from 
other sources before they measure it for royalty determination. ONRR 
uses the data to determine if the payors reported reasonable sales.

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. It is mandatory that 
the reporters submit Forms ONRR-2014, ONRR-4054, and ONRR-4058.

II. Data

    Title: 30 CFR parts 1210 and 1212, Royalty and Production 
Reporting.
    OMB Control Number: 1012-0004.
    Bureau Form Number: Forms ONRR-2014, ONRR-4054, and ONRR-4058.
    Frequency: Monthly.
    Estimated Number and Description of Respondents: 3,870 oil, gas, 
and geothermal reporters.
    Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 
337,933 hours.
    We have not included in our estimates certain requirements that 
companies perform in the normal course of business, and that ONRR 
considers usual and customary. We display the estimated annual burden 
hours by CFR and paragraph in the following chart.

                                                       Respondents' Estimated Annual Burden Hours
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                                                                                                                          Average number
                                                                                                                             of annual
            30 CFR part 1210               Reporting and recordkeeping requirement               Hour burden                 responses     Annual burden
                                                                                                                             (lines of         hours
                                                                                                                               data)
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                                                             30 CFR 1210--FORMS AND REPORTS
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                                             Subpart B--Royalty Reports--Oil, Gas, and Geothermal Resources
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1210.52(a) and (b)......................  1210.52 What royalty reports must I                                   Form ONRR-2014
                                           submit?.
                                                                                    --------------------------------------------------------------------
                                          You must submit a completed Form ONRR-                    Electronic* (approximately 99 percent)
                                           2014, Report of Sales and Royalty
                                           Remittance, to ONRR with:
                                                                                    --------------------------------------------------------------------
                                          (a) All royalty payments; and............  3 min. per line....................       4,688,216         234,411
                                                                                    --------------------------------------------------------------------
                                          (b) Rents on nonproducing leases, where                     Manual* (approximately 1 percent)
                                           specified in the lease.
                                                                                    --------------------------------------------------------------------
1210.53(a), (b), and (c)................  1210.53 When are my royalty reports and    7 min. per line....................          47,356           5,526
                                           payments due?.
                                          (a) Completed Forms ONRR-2014 for royalty
                                           payments and the associated payments are
                                           due by the end of the month following
                                           the production month (see also Sec.
                                           1218.50).
                                          (b) Completed Forms ONRR-2014 for rental
                                           payments, where applicable, and the
                                           associated payments are due as specified
                                           by the lease terms (see also Sec.
                                           1218.50).
                                          (c) You may submit reports and payments
                                           early.
1210.54(a), (b), and (c)................  1210.54 Must I submit this royalty report
                                           electronically?
                                          (a) You must submit Form ONRR-2014
                                           electronically unless you qualify for an
                                           exception under Sec.   1210.55(a).
                                          (b) You must use one of the following
                                           electronic media types, unless ONRR
                                           instructs you differently * * *.
                                          (c) Refer to our electronic reporting
                                           guidelines in the ONRR Minerals Revenue
                                           Reporter Handbook, for the most current
                                           reporting options, instructions, and
                                           security measures. The handbook may be
                                           found on our Internet Web site or you
                                           may call your ONRR customer service
                                           representative * * *.
                                                          * * * * *
                                                                                    --------------------------------------------------------------------
    Subtotal for Royalty Reporting......  .........................................  ...................................       4,735,572         239,937
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                                                       Subpart C--Production Reports--Oil and Gas
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1210.102(a)(1)(i) and (ii)..............  1210.102 What production reports must I              Burden hours covered under 1210.104(a) and (b).
                                           submit?.

[[Page 77014]]

 
                                          (a) Form ONRR-4054, Oil and Gas
                                           Operations Report. If you operate a
                                           Federal or Indian onshore or OCS oil and
                                           gas lease or federally approved unit or
                                           communitization agreement that contains
                                           one or more wells that are not
                                           permanently plugged or abandoned, you
                                           must submit Form ONRR-4054 to ONRR:
                                          (1) You must submit Form ONRR-4054 for
                                           each well for each calendar month,
                                           beginning with the month in which you
                                           complete drilling, unless:
                                          (i) You have only test production from a
                                           drilling well; or
                                          (ii) The ONRR tells you in writing to
                                           report differently
1210.102(a)(2)(i) and (ii)..............  (2) You must continue reporting until:
                                          (i) The Bureau of Land Management (BLM)
                                           and [Bureau of Safety and Environmental
                                           Enforcement] approves all wells as
                                           permanently plugged or abandoned or the
                                           lease or unit or communitization
                                           agreement is terminated; and.
                                          (ii) You dispose of all inventory........
                                                                                    --------------------------------------------------------------------
1210.102(b)(1)..........................  (b) Form ONRR-4058, Production Allocation            Burden hours covered under 1210.104(a) and (b).
                                           Schedule Report. If you operate an
                                           offshore facility measurement point
                                           (FMP) handling production from a Federal
                                           oil and gas lease or federally approved
                                           unit agreement that is commingled (with
                                           approval) with production from any other
                                           source prior to measurement for royalty
                                           determination, you must file Form ONRR-
                                           4058.
                                          (1) You must submit Form ONRR-4058 for
                                           each calendar month beginning with the
                                           month in which you first handle
                                           production covered by this section.
1210.102(b)(2)(i)-(vi)..................  (2) Form ONRR-4058 is not required
                                           whenever all of the following conditions
                                           are met:
                                          (i) All leases involved are Federal
                                           leases;
                                          (ii) All leases have the same fixed
                                           royalty rate;
                                          (iii) All leases are operated by the same
                                           operator;
                                          (iv) The facility measurement device is
                                           operated by the same person as the
                                           leases/agreements;
                                          (v) Production has not been previously
                                           measured for royalty determination; and
                                          (vi) The production is not subsequently
                                           commingled and measured for royalty
                                           determination at an FMP for which Form
                                           ONRR-4058 is required under this part.
                                                                                    --------------------------------------------------------------------
1210.103(a) and (b).....................  1210.103 When are my production reports              Burden hours covered under 1210.104(a) and (b).
                                           due?.
                                          (a) The ONRR must receive your completed
                                           Forms ONRR-4054 and ONRR-4058 by the
                                           15th day of the second month following
                                           the month for which you are reporting..
                                          (b) A report is considered received when
                                           it is delivered to ONRR by 4 p.m.
                                           mountain time at the addresses specified
                                           in Sec.   1210.105. Reports received
                                           after 4 p.m. mountain time are
                                           considered received the following
                                           business day..
                                                                                    --------------------------------------------------------------------
1210.104(a), (b), and (c)...............  1210.104 Must I submit these production                           Form ONRR-4054 (OGOR)
                                           reports electronically?
                                                                                    --------------------------------------------------------------------
                                          (a) You must submit Forms ONRR-4054 and                   Electronic* (approximately 99 percent)
                                           ONRR-4058 electronically unless you
                                           qualify for an exception under Sec.
                                           1210.105.
                                                                                    --------------------------------------------------------------------

[[Page 77015]]

 
                                          (b) You must use one of the following      1 min. per line....................       5,688,962          94,816
                                           electronic media types, unless ONRR
                                           instructs you differently * * *.
                                                                                    --------------------------------------------------------------------
                                          (c) Refer to our electronic reporting                       Manual * (approximately 1 percent)
                                           guidelines in the ONRR Minerals
                                           Production Reporter Handbook, for the
                                           most current reporting options,
                                           instructions, and security measures. The
                                           handbook may be found on our Internet
                                           Web site or you may call your ONRR
                                           customer service representative * * *.
                                                                                    --------------------------------------------------------------------
                                                          * * * * *                  3 min. per line....................          57,464           2,873
                                                                                    --------------------------------------------------------------------
                                                                                     Total OGOR.........................       5,746,426          97,689
                                                                                    --------------------------------------------------------------------
                                                                                                            Form ONRR-4058 (PASR)
                                                                                    --------------------------------------------------------------------
                                                                                                   Electronic * (approximately 99 percent)
                                                                                    --------------------------------------------------------------------
                                                                                     1 min. per line....................          17,820             298
                                                                                    --------------------------------------------------------------------
                                                                                                      Manual * (approximately 1 percent)
                                                                                    --------------------------------------------------------------------
                                                                                     3 min. per line....................             180               9
                                                                                    --------------------------------------------------------------------
                                                                                     Total PASR.........................          18,000             307
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                                    Subpart D--Special-Purpose Forms and Reports--Oil, Gas, and Geothermal Resources
--------------------------------------------------------------------------------------------------------------------------------------------------------
1210.155................................  1210.155 What reports must I submit for             Burden covered under OMB Control Number 1012-0005.
                                           Federal onshore stripper oil properties?.
                                                                                    --------------------------------------------------------------------
                                          (a) General. Operators who have been
                                           granted a reduced royalty rate by the
                                           Bureau of Land Management (BLM) under 43
                                           CFR 3103.4-2 must submit Form ONRR-4377,
                                           Stripper Royalty Rate Reduction
                                           Notification, under 43 CFR 3103.4-
                                           2(b)(3).
                                                          * * * * *
    Subtotal for Production Reporting...  .........................................  ...................................       5,764,426          97,996
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                                                        PART 1212--RECORDS AND FILES MAINTENANCE
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                                                      Subpart B--Oil, Gas and OCS Sulphur--General
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1212.50.................................  1212.50 Required recordkeeping and               Burden hours covered under 1210.54(a), (b), and (c); and
                                           reports..                                                         1210.104(a) and (b).
                                          All records pertaining to offshore and
                                           onshore Federal and Indian oil and gas
                                           leases shall be maintained by a lessee,
                                           operator, revenue payor, or other person
                                           for 6 years after the records are
                                           generated unless the recordholder is
                                           notified, in writing, that records must
                                           be maintained for a longer period * * *.
                                          [In accordance with 30 U.S.C. 1724(f),
                                           Federal oil and gas records must be
                                           maintained for 7 years from the date the
                                           obligation became due.].
                                                                                    --------------------------------------------------------------------
1212.51 (a) and (b).....................  (a) Records. Each lessee, operator,              Burden hours covered under 1210.54(a), (b), and (c); and
                                           revenue payor, or other person shall                              1210.104(a) and (b).
                                           make and retain accurate and complete
                                           records necessary to demonstrate that
                                           payments of rentals, royalties, net
                                           profit shares, and other payments
                                           related to offshore and onshore Federal
                                           and Indian oil and gas leases are in
                                           compliance with lease terms,
                                           regulations, and orders * * *.
                                                                                    --------------------------------------------------------------------

[[Page 77016]]

 
                                          (b) Period for keeping records. Lessees,
                                           operators, revenue payors, or other
                                           persons required to keep records under
                                           this section shall maintain and preserve
                                           them for 6 years from the day on which
                                           the relevant transaction recorded
                                           occurred unless the Secretary notifies
                                           the record holder of an audit or
                                           investigation involving the records and
                                           that they must be maintained for a
                                           longer period * * *.
                                          [In accordance with 30 U.S.C. 1724(f),
                                           Federal oil and gas records must be
                                           maintained for 7 years from the date the
                                           obligation became due.].
                                                                                                                         -------------------------------
    Total for Royalty and Production      .........................................  ...................................      10,499,998         337,933
     Reporting.
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* Note: ONRR considers each line of data as one response/report.

    Estimated Annual Reporting and Recordkeeping ``Non-hour'' Cost 
Burden:
    We have identified non-hour costs for this collection of 
information for the implementation of system changes and new setups in 
the accounting system. Based on information provided by participants, 
we estimate that the average total non-hour cost for each participant 
is approximately $7,200. Since there are an estimated 3,870 
respondents, the total estimated non-hour costs are $27,864,000 ($7,200 
x 3,870 = $27,864,000). This equates to an annual non-hour cost of 
$9,288,000 for this ICR renewal. It is important to note that these are 
one-time costs due to the regulation changes implemented in May of 2015 
and are not expected to continue past this ICR renewal period.

III. Request for Comments

    Section 3506(c)(2)(A) of the PRA requires each agency to ``* * * 
publish a 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.
    To comply with the public consultation process, we published a 
notice in the Federal Register on May 15, 2015 (80 FR 28003), 
announcing that we would submit this ICR to OMB for approval. The 
notice provided the required 60-day comment period. We received no 
comments in response to the notice.
    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. The OMB has up to 60 days to approve or disapprove the 
information collection but may respond after 30 days. Therefore, to 
ensure maximum consideration, OMB should receive public comments by 
January 11, 2016.
    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.
    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 your 
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.

    Dated: November 24, 2015.
Gregory J. Gould,
Director, Office of Natural Resources Revenue.
[FR Doc. 2015-31289 Filed 12-10-15; 8:45 am]
BILLING CODE 4335-30-P