[Federal Register Volume 81, Number 108 (Monday, June 6, 2016)]
[Notices]
[Pages 36325-36336]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-13206]


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DEPARTMENT OF THE INTERIOR

Office of Natural Resources Revenue

[Docket No. ONRR-2012-0006; DS63642000 DR2PS0000.CH7000 167D0102R2]


Agency Information Collection Activities: Federal Oil and Gas 
Valuation; Comment Request

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

ACTION: Notice of an extension.

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SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), ONRR 
is inviting comments on a collection of information requests 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 title 30, Code of 
Federal Regulations (CFR), parts 1202, 1204, and 1206. This ICR 
pertains to Federal oil and gas valuation regulations, which include 
transportation and processing regulatory allowance limits and 
accounting and auditing relief for marginal properties. Also, there is 
one form (ONRR-4393) associated with this information collection.

DATES: Submit written comments on or before August 5, 2016.

ADDRESSES: You may submit comments on this ICR to ONRR by using one of 
the following three methods (please reference ``ICR 1012-0005'' in your 
comments):
    1. Electronically go to http://www.regulations.gov. In the entry 
titled ``Enter Keyword or ID,'' enter ``ONRR-2012-0005'' and then click 
``Search.'' Follow the instructions to submit public comments. ONRR 
will post all comments.
    2. Email comments to Mr. Luis Aguilar, Regulatory Specialist, at 
[email protected].
    3. Hand-carry or mail comments, using an overnight courier service, 
to ONRR. Our courier address is Building 85, Room A-614, Denver Federal 
Center, West 6th Ave. and Kipling St., Denver, Colorado 80225.

FOR FURTHER INFORMATION CONTACT: For any questions, contact Mr. Luis 
Aguilar, telephone (303) 231-3418, or email at [email protected]. 
You may also contact Mr. Aguilar to obtain copies, at no cost, of (1) 
the ICR, (2) any associated forms, and (3) the regulations that require 
us to collect the information.

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 under those laws. We have posted those laws pertaining to 
mineral leases on Federal and Indian lands and the OCS at http://www.onrr.gov/Laws_R_D/PubLaws/default.htm.
    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.
    You can find the information collections covered in this ICR at 30 
CFR parts:
     1202, subparts C and D, which pertain to Federal oil and 
gas royalties.
     1204, subpart C, which pertains to accounting and auditing 
relief for marginal properties.
     1206, subparts C and D, which pertain to Federal oil and 
gas product valuation.

General Information

    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 mineral lease 
laws require the lessee, or his designee, to report various kinds of 
information to the lessor relative to the

[[Page 36326]]

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.

Information Collections

    ONRR uses the information that we collect in this ICR to ensure 
that lessees accurately value and appropriately pay royalties on oil 
and gas produced from Federal onshore and offshore leases. Please refer 
to the chart for all reporting requirements and associated burden 
hours. All data submitted is subject to subsequent audit and 
adjustment.
A. Federal Oil and Gas Valuation Regulations
    The valuation regulations at 30 CFR part 1206, subparts C and D, 
mandate that companies collect and submit information used to value 
their Federal oil and gas, including (1) transportation and processing 
allowances and (2) regulatory allowance limit information. Companies 
report certain data on form ONRR-2014, Report of Sales and Royalty 
Remittance. The information that we request is the minimum necessary to 
carry out our mission and places the least possible burden on 
respondents. If ONRR does not collect this information, both Federal 
and State governments may incur a loss of royalties.
    Transportation and Processing Regulatory Allowance Limits: Lessees 
may deduct actual costs of transportation and processing from Federal 
royalties. The lessees report these allowances on form ONRR-2014. For 
oil and gas, regulations establish the allowable limit on 
transportation allowance deductions at 50 percent of the value of the 
oil or gas. For gas only, regulations establish the allowable limit on 
processing allowance deductions at 66\2/3\ percent of the value of each 
gas plant product.
    Request to Exceed Regulatory Allowance Limitation, form ONRR-4393: 
Lessees may request to exceed regulatory limitations. Upon proper 
application from the lessee, ONRR may approve oil or gas transportation 
allowance in excess of 50 percent or gas processing allowance in excess 
of 66\2/3\ percent on Federal leases. Lessees use form ONRR-4393 for 
both Federal and Indian leases to request to exceed allowance 
limitations. This ICR covers only Federal leases; therefore, we have 
not included burden hours of form ONRR-4393 for Indian leases in this 
ICR. We include burden hours for form ONRR-4393 for Indian leases in 
OMB Control Number 1012-0002.
B. Accounting and Auditing Relief for Marginal Properties
    In 2004, we amended our regulations to comply with section 7 of the 
Federal Oil and Gas Royalty Simplification and Fairness Act of 1996. 
These regulations provide guidance for lessees and designees seeking 
accounting and auditing relief for qualifying Federal marginal 
properties. Under the regulations, both ONRR and the State concerned 
must approve any relief granted for a marginal property.

OMB Approval

    We will request OMB approval to continue to collect, from 
companies, lessees, and designees, information used (1) to value their 
Federal oil and gas, including (a) transportation and processing 
allowances and (b) regulatory allowance limit information and (2) to 
request accounting and auditing relief approval for qualifying Federal 
marginal properties. If ONRR does not collect this information, this 
would limit the Secretary's ability to discharge fiduciary duties and 
may also result in loss of royalty payments. ONRR protects the 
proprietary information that we receive, and we do not collect items of 
a sensitive nature.
    ONRR requires lessees to respond to information collections 
relating to valuation requirements.

II. Data

    Title: 30 CFR parts 1202, 1204, and 1206, Federal Oil and Gas 
Valuation.
    OMB Control Number: 1012-0005.
    Bureau Form Number: Form ONRR-4393.
    Frequency: Annually and on occasion.
    Estimated Number and Description of Respondents: 120 Federal 
lessees/designees and 7 States for Federal oil and gas.
    Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 9,518 
hours.
    We have not included in our estimates certain requirements 
performed in the normal course of business and considered as usual and 
customary. We display the estimated annual burden hours by CFR section 
and paragraph in the following chart:

                                   Respondents' Estimated Annual Burden Hours
----------------------------------------------------------------------------------------------------------------
                                                                                      Average
                                     Reporting and recordkeeping                     number of     Annual burden
 30 CFR 1202, 1204, 1206, and 1210           requirement            Hour burden       annual           hours
                                                                                     responses
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                                              PART 1202--ROYALTIES
----------------------------------------------------------------------------------------------------------------
                                        Subpart C--Federal and Indian Oil
----------------------------------------------------------------------------------------------------------------
1202.101...........................  Standards for reporting and   Burden covered under OMB Control Number 1012-
                                      paying royalties.                                0004.
                                     Oil volumes are to be
                                      reported in barrels of
                                      clean oil of 42 standard
                                      U.S. gallons (231 cubic
                                      inches each) at 60 [deg]F
                                      . . ..
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                                             Subpart D--Federal Gas
----------------------------------------------------------------------------------------------------------------
1202.152(a) and (b)................  Standards for reporting and   Burden covered under OMB Control Number 1012-
                                      paying royalties on gas.                         0004.
                                     (a)(1) If you are
                                      responsible for reporting
                                      production or royalties
                                      you must:.
                                     (i) Report gas volumes and
                                      British thermal unit (Btu)
                                      heating values, if
                                      applicable, under the same
                                      degree of water
                                      saturation;
                                     (ii) Report gas volumes in
                                      units of 1,000 cubic feet
                                      (mcf); and

[[Page 36327]]

 
                                     (iii) Report gas volumes
                                      and Btu heating value at a
                                      standard pressure base of
                                      14.73 pounds per square
                                      inch absolute (psia) and a
                                      standard temperature base
                                      of 60 [deg]F . . .
                                     (b) Residue gas and gas
                                      plant product volumes
                                      shall be reported as
                                      specified in this
                                      paragraph . . .
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                                 PART 1204--ALTERNATIVES FOR MARGINAL PROPERTIES
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                                    Subpart C--Accounting and Auditing Relief
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1204.202(b)(1).....................  What is the cumulative                   40               1              40
                                      royalty reports and
                                      payments relief option?
                                     (b) To use the cumulative
                                      royalty reports and
                                      payments relief option,
                                      you must do all of the
                                      following:
                                     (1) Notify ONRR in writing
                                      by January 31 of the
                                      calendar year for which
                                      you begin taking your
                                      relief . . .
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1204.202(b)(2) and (b)(3)..........  (b)(2) Submit your royalty    Burden covered under OMB Control Number 1012-
                                      report and payment . . .                         0004.
                                      by the end of February of
                                      the year following the
                                      calendar year for which
                                      you reported annually . .
                                      . If you have an estimated
                                      payment on file, you must
                                      submit your royalty report
                                      and payment by the end of
                                      March of the year
                                      following the calendar
                                      year for which you
                                      reported annually; (3) Use
                                      the sales month prior to
                                      the month that you submit
                                      your annual report and
                                      payment . . . for the
                                      entire previous calendar
                                      year's production for
                                      which you are paying
                                      annually . . .
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1204.202(b)(4), (b)(5), (c),         (b)(4) Report one line of     Burden covered under OMB Control Number 1012-
 (d)(1), (d)(2), (e)(1), and (e)(2).  cumulative royalty                               0004.
                                      information on Form ONRR-
                                      2014 for the calendar year
                                      . . . And
                                     (5) Report allowances on
                                      Form ONRR-2014 on the same
                                      annual basis as the
                                      royalties for your
                                      marginal property
                                      production..
                                     (c) If you do not pay your
                                      royalty by the date due in
                                      paragraph (b) of this
                                      section, you will owe late
                                      payment interest . . .
                                      from the date your payment
                                      was due under this section
                                      until the date ONRR
                                      receives it . . .
                                     (d) If you take relief you
                                      are not qualified for, you
                                      may be liable for civil
                                      penalties.
                                     Also you must: (1) Pay ONRR
                                      late payment interest
                                      determined under 30 CFR
                                      1218.54 . . . (2) Amend
                                      your Form ONRR-2014 . . ..
                                     (e) If you dispose of your
                                      ownership interest in a
                                      marginal property for
                                      which you have taken
                                      relief . . . you must:
                                     (1) Report and pay
                                      royalties for the portion
                                      of the calendar year for
                                      which you had an ownership
                                      interest; and.
                                     (2) Make the report and
                                      payment by the end of the
                                      month after you dispose of
                                      the ownership interest in
                                      the marginal property. If
                                      you do not report and pay
                                      timely, you will owe
                                      interest . . . from the
                                      date the payment was . . .
----------------------------------------------------------------------------------------------------------------
1204.203(b), 1204.205(a) and (b),    What is the other relief                200               1             200
 and 1204.206(a)(3)(i) and (b)(1).    option?
                                     (b) You must request
                                      approval from ONRR . . .
                                      before taking relief under
                                      this option..
----------------------------------------------------------------------------------------------------------------
1204.208(c)(1), (d)(1), and (e)....  May a State decide that it               40               7             280
                                      will or will not allow one
                                      or both of the relief
                                      options under this
                                      subpart?
                                     (c) If a State decides . .
                                      . that it will or will not
                                      allow one or both of the
                                      relief options . . .
                                      within 30 days . . . the
                                      State must: (1) Notify the
                                      Director for Office of
                                      Natural Resources Revenue,
                                      in writing, of its intent
                                      to allow or not allow one
                                      or both of the relief
                                      options . . .
                                     (d) If a State decides in
                                      advance . . . that it will
                                      not allow one or both of
                                      the relief options . . .
                                      the State must: (1) Notify
                                      the Director for Office of
                                      Natural Resources Revenue,
                                      in writing, of its intent
                                      to allow one or both of
                                      the relief options . . .

[[Page 36328]]

 
                                     (e) If a State does not
                                      notify ONRR . . . the
                                      State will be deemed to
                                      have decided not to allow
                                      either of the relief
                                      options . . .
----------------------------------------------------------------------------------------------------------------
1204.209(b)........................  What if a property ceases                 6               1               6
                                      to qualify for relief
                                      obtained under this
                                      subpart?
                                     (b) If a property is no
                                      longer eligible for relief
                                      . . . the relief for the
                                      property terminates as of
                                      December 31 of that
                                      calendar year. You must
                                      notify ONRR in writing by
                                      December 31 that the
                                      relief for the property
                                      has terminated . . .
----------------------------------------------------------------------------------------------------------------
1204.210(c) and (d)................  What if a property is         Burden covered under OMB Control Number 1012-
                                      approved as part of                              0004.
                                      anonqualifying agreement?
                                     (c) . . . the volumes on
                                      which you report and pay
                                      royalty . . . must be
                                      amended to reflect all
                                      volumes produced on or
                                      allocated to your lease
                                      under the nonqualifying
                                      agreement as modified by
                                      BLM. . . . Report and pay
                                      royalties for your
                                      production using the
                                      procedures in Sec.
                                      1204.202(b).
                                     (d) If you owe additional
                                      royalties based on the
                                      retroactive agreement
                                      approval and do not pay
                                      your royalty by the date
                                      due in Sec.   1204.202(b),
                                      you will owe late payment
                                      interest determined under
                                      Sec.   1218.54 from the
                                      date your payment was due
                                      under Sec.
                                      1204.202(b)(2) until the
                                      date ONRR receives it.
----------------------------------------------------------------------------------------------------------------
1204.214(b)(1) and (b)(2)..........  Is minimum royalty due on a   Burden covered under OMB Control Number 1012-
                                      property for which I took                        0004.
                                      relief?
                                     (b) If you pay minimum
                                      royalty on production from
                                      a marginal property during
                                      a calendar year for which
                                      you are taking cumulative
                                      royalty reports and
                                      payment relief, and:.
                                     (1) The annual payment you
                                      owe under this subpart is
                                      greater than the minimum
                                      royalty you paid, you must
                                      pay the difference between
                                      the minimum royalty you
                                      paid and your annual
                                      payment due under this
                                      subpart; or
                                     (2) The annual payment you
                                      owe under this subpart is
                                      less than the minimum
                                      royalty you paid, you are
                                      not entitled to a credit
                                      because you must pay at
                                      least the minimum royalty
                                      amount on your lease each
                                      year.
----------------------------------------------------------------------------------------------------------------
    Accounting and Auditing Relief   ...........................  ..............              10             526
     Subtotal.
----------------------------------------------------------------------------------------------------------------
                                          Part 1206--Product Valuation
----------------------------------------------------------------------------------------------------------------
                                             Subpart C--Federal Oil
----------------------------------------------------------------------------------------------------------------
1206.102(e)(1).....................  How do I calculate royalty              AUDIT PROCESS. See note.
                                      value for oil that I or my
                                      affiliate sell(s) under an
                                      arm's-length contract?
                                     (e) If you value oil under
                                      paragraph (a) of this
                                      section: (1) ONRR may
                                      require you to certify
                                      that your or your
                                      affiliate's arm's-length
                                      contract provisions
                                      include all of the
                                      consideration the buyer
                                      must pay, either directly
                                      or indirectly, for the
                                      oil.
----------------------------------------------------------------------------------------------------------------
1206.103(a)(1), (a)(2), and (a)(3).  How do I value oil that is               45               5             225
                                      not sold under an arm's-
                                      length contract?
                                     This section explains how
                                      to value oil that you may
                                      not value under Sec.
                                      1206.102 or that you elect
                                      under Sec.   1206.102(d)
                                      to value under this
                                      section. First determine
                                      whether paragraph (a),
                                      (b), or (c) of this
                                      section applies to
                                      production from your
                                      lease, or whether you may
                                      apply paragraph (d) or (e)
                                      with ONRR approval.
                                     (a) Production from leases
                                      in California or Alaska.
                                      Value is the average of
                                      the daily mean ANS spot
                                      prices published in any
                                      ONRR-approved publication
                                      during the trading month
                                      most concurrent with the
                                      production month . . .
                                     (1) To calculate the daily
                                      mean spot price . . .
                                     (2) Use only the days . . .
                                     (3) You must adjust the
                                      value . . .
----------------------------------------------------------------------------------------------------------------

[[Page 36329]]

 
1206.103(a)(4).....................  (a)(4) After you select an                8               2              16
                                      ONRR-approved publication,
                                      you may not select a
                                      different publication more
                                      often than once every 2
                                      years, . . .
----------------------------------------------------------------------------------------------------------------
1206.103(b)(1).....................  (b) Production from leases              400               2             800
                                      in the Rocky Mountain
                                      Region . . .
                                     (1) If you have an ONRR-
                                      approved tendering
                                      program, you must value
                                      oil . . .
----------------------------------------------------------------------------------------------------------------
1206.103(b)(1)(ii).................  (b)(1)(ii) If you do not                400               2             800
                                      have an ONRR-approved
                                      tendering program, you may
                                      elect to value your oil
                                      under either paragraph
                                      (b)(2) or (b)(3) of this
                                      section . . .
----------------------------------------------------------------------------------------------------------------
1206.103(b)(4).....................  (4) If you demonstrate to               400               2             800
                                      ONRR's satisfaction that
                                      paragraphs (b)(1) through
                                      (b)(3) of this section
                                      result in an unreasonable
                                      value for your production
                                      as a result of
                                      circumstances regarding
                                      that production, the ONRR
                                      Director may establish an
                                      alternative valuation
                                      method.
----------------------------------------------------------------------------------------------------------------
1206.103(c)(1).....................  (c) Production from leases               50              10             500
                                      not located in California,
                                      Alaska or the Rocky
                                      Mountain Region. (1) Value
                                      is the NYMEX price, plus
                                      the roll, adjusted for
                                      applicable location and
                                      quality differentials and
                                      transportation costs under
                                      Sec.   1206.112.
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1206.103(e)(1) and (e)(2)..........  (e) Production delivered to             330               2             660
                                      your refinery and the
                                      NYMEX price or ANS spot
                                      price is an unreasonable
                                      value. (1) . . . you may
                                      apply to the ONRR Director
                                      to establish a value (2)
                                      You must provide adequate
                                      documentation and evidence
                                      demonstrating the market
                                      value at the refinery. . .
                                      . representing the market
                                      at the refinery if: . . .
----------------------------------------------------------------------------------------------------------------
1206.105...........................  What records must I keep to   Burden covered under OMB Control Number 1012-
                                      support my calculations of                       0004.
                                      value under this subpart?
                                     If you determine the value
                                      of your oil under this
                                      subpart, you must retain
                                      all data relevant to the
                                      determination of royalty
                                      value . . .
----------------------------------------------------------------------------------------------------------------
1206.107(a)........................  How do I request a value                 40              10             400
                                      determination?
                                     (a) You may request a value
                                      determination from ONRR .
                                      . .
----------------------------------------------------------------------------------------------------------------
1206.109(c)(2).....................  When may I take a                         8               2              16
                                      transportation allowance
                                      in determining value?
                                     (c) Limits on
                                      transportation allowances.
                                      (2) You may ask ONRR to
                                      approve a transportation
                                      allowance in excess of the
                                      limitation in paragraph
                                      (c)(1) of this section . .
                                      . Your application for
                                      exception (using Form ONRR-
                                      4393, Request to Exceed
                                      Regulatory Allowance
                                      Limitation) must contain
                                      all relevant and
                                      supporting documentation
                                      necessary for ONRR to make
                                      a determination . . .
----------------------------------------------------------------------------------------------------------------
1206.110(a)........................  How do I determine a                    AUDIT PROCESS. See note.
                                      transportation allowance
                                      under an arm's-length
                                      transportation contract?
                                     (a) . . . You must be able
                                      to demonstrate that your
                                      or your affiliate's
                                      contract is at arm's
                                      length. . . ..
----------------------------------------------------------------------------------------------------------------
1206.110(d)(3).....................  (d) If your arm's-length                 20               2              40
                                      transportation contract
                                      includes more than one
                                      liquid product, and the
                                      transportation costs
                                      attributable to each
                                      product cannot be
                                      determined . . .
                                     (3) You may propose to ONRR
                                      a cost allocation method .
                                      . .
----------------------------------------------------------------------------------------------------------------
1206.110(e)........................  (e) If your arm's-length                 20               1              20
                                      transportation contract
                                      includes both gaseous and
                                      liquid products, and the
                                      transportation costs
                                      attributable to each
                                      product cannot be
                                      determined from the
                                      contract, then you must
                                      propose an allocation
                                      procedure to ONRR.
----------------------------------------------------------------------------------------------------------------

[[Page 36330]]

 
1206.110(e)(1) and (e)(2)..........  (e)(1) . . . If ONRR          Burden covered under OMB Control Number 1012-
                                      rejects your cost                                0004.
                                      allocation, you must amend
                                      your Form ONRR-2014 . . .
                                     (2) You must submit your
                                      initial proposal,
                                      including all available
                                      data, within 3 months
                                      after first claiming the
                                      allocated deductions on
                                      Form ONRR-2014.
----------------------------------------------------------------------------------------------------------------
1206.110(g)(2).....................  (g) If your arm's-length                  5               1               5
                                      sales contract includes a
                                      provision reducing the
                                      contract price by a
                                      transportation factor, . .
                                      .
                                     (2) You must obtain ONRR
                                      approval before claiming a
                                      transportation factor in
                                      excess of 50 percent of
                                      the base price of the
                                      product.
----------------------------------------------------------------------------------------------------------------
1206.111(g)........................  How do I determine a                     30               1              30
                                      transportation allowance
                                      if I do not have an arm's-
                                      length transportation
                                      contract or arm's-length
                                      tariff?
                                     (g) To compute
                                      depreciation, you may
                                      elect to use either . . .
                                      After you make an
                                      election, you may not
                                      change methods without
                                      ONRR approval . . .
----------------------------------------------------------------------------------------------------------------
1206.111(k)(2).....................  (k)(2) You may propose to                30               1              30
                                      ONRR a cost allocation
                                      method on the basis of the
                                      values . . .
----------------------------------------------------------------------------------------------------------------
1206.111(l)(1) and (l)(3)..........  (l)(1) Where you transport               20               1              20
                                      both gaseous and liquid
                                      products through the same
                                      transportation system, you
                                      must propose a cost
                                      allocation procedure to
                                      ONRR . . .
                                     (3) You must submit your
                                      initial proposal,
                                      including all available
                                      data, within 3 months
                                      after first claiming the
                                      allocated deductions on
                                      Form ONRR-2014.
----------------------------------------------------------------------------------------------------------------
1206.111(l)(2).....................  (l)(2) . . . If ONRR          Burden covered under OMB Control Number 1012-
                                      rejects your cost                                0004.
                                      allocation, you must amend
                                      your Form ONRR-2104 for
                                      the months that you used
                                      the rejected method and
                                      pay any additional royalty
                                      and interest due.
----------------------------------------------------------------------------------------------------------------
1206.112(a)(1)(ii).................  What adjustments and                     80               1              80
                                      transportation allowances
                                      apply when I value oil
                                      production from my lease
                                      using NYMEX prices or ANS
                                      spot prices?
                                     (a)(1)(ii) . . . under an
                                      exchange agreement that is
                                      not at arm's length, you
                                      must obtain approval from
                                      ONRR for a location and
                                      quality differential . . .
----------------------------------------------------------------------------------------------------------------
1206.112(a)(1)(ii).................  (a)(1)(ii) . . . If ONRR                 20               2              40
                                      prescribes a different
                                      differential, you must
                                      apply . . . You must pay
                                      any additional royalties
                                      owed . . . plus the late
                                      payment interest from the
                                      original royalty due date,
                                      or you may report a credit
                                      . . .
----------------------------------------------------------------------------------------------------------------
1206.112(a)(3) and (a)(4)..........  (a)(3) If you transport or               80               4             320
                                      exchange at arm's length
                                      (or both transport and
                                      exchange) at least 20
                                      percent, but not all, of
                                      your oil produced from the
                                      lease to a market center,
                                      determine the adjustment
                                      between the lease and the
                                      market center for the oil
                                      that is not transported or
                                      exchanged (or both
                                      transported and exchanged)
                                      to or through a market
                                      center as follows: . . .
                                     (4) If you transport or
                                      exchange (or both
                                      transport and exchange)
                                      less than 20 percent of
                                      your crude oil produced
                                      from the lease between the
                                      lease and a market center,
                                      you must propose to ONRR
                                      an adjustment between the
                                      lease and the market
                                      center for the portion of
                                      the oil that you do not
                                      transport or exchange (or
                                      both transport and
                                      exchange) to a market
                                      center. . . . If ONRR
                                      prescribes a different
                                      adjustment. . . . You must
                                      pay any additional
                                      royalties owed . . . plus
                                      the late payment interest
                                      from the original royalty
                                      due date, or you may
                                      report a credit . . .
----------------------------------------------------------------------------------------------------------------

[[Page 36331]]

 
1206.112(b)(3).....................  (b)(3) . . . you may                     80               4             320
                                      propose an alternative
                                      differential to ONRR. . .
                                      . If ONRR prescribes a
                                      different differential. .
                                      . . You must pay any
                                      additional royalties owed
                                      . . . plus the late
                                      payment interest from the
                                      original royalty due date,
                                      or you may report a credit
                                      . . .
----------------------------------------------------------------------------------------------------------------
1206.112(c)(2).....................  (c)(2) . . . If quality                  80               2             160
                                      bank adjustments do not
                                      incorporate or provide for
                                      adjustments for sulfur
                                      content, you may make
                                      sulfur adjustments, based
                                      on the quality of the
                                      representative crude oil
                                      at the market center, of
                                      5.0 cents per one-tenth
                                      percent difference in
                                      sulfur content, unless
                                      ONRR approves a higher
                                      adjustment.
----------------------------------------------------------------------------------------------------------------
1206.114...........................  What are my reporting
                                      requirements under an
                                      arm's-length
                                      transportation contract?
                                     You or your affiliate must    Burden covered under OMB Control Number 1012-
                                      use a separate entry on                          0004.
                                      Form ONRR-2014 to notify
                                      ONRR of an allowance based
                                      on transportation costs
                                      you or your affiliate
                                      incur.
                                    ----------------------------------------------------------------------------
                                     ONRR may require you or                 AUDIT PROCESS. See note.
                                      your affiliate to submit
                                      arm's-length
                                      transportation contracts,
                                      production agreements,
                                      operating agreements, and
                                      related documents . . .
----------------------------------------------------------------------------------------------------------------
1206.115(a)........................  What are my reporting         Burden covered under OMB Control Number 1012-
                                      requirements under a non-                        0004.
                                      arm's-length
                                      transportation
                                      arrangement?
                                     (a) You or your affiliate
                                      must use a separate entry
                                      on Form ONRR-2014 to
                                      notify ONRR of an
                                      allowance based on
                                      transportation costs you
                                      or your affiliate incur.
----------------------------------------------------------------------------------------------------------------
1206.115(c)........................  (c) ONRR may require you or             AUDIT PROCESS. See note.
                                      your affiliate to submit
                                      all data used to calculate
                                      the allowance deduction .
                                      . .
----------------------------------------------------------------------------------------------------------------
                                             Subpart D--Federal Gas
----------------------------------------------------------------------------------------------------------------
1206.152(b)(1)(i) and (b)(1)(iii)..  Valuation standards--                   AUDIT PROCESS. See note.
                                      unprocessed gas.
                                     (b)(1)(i) . . . The lessee
                                      shall have the burden of
                                      demonstrating that its
                                      contract is arm's-length.
                                      . . . (iii) . . . When
                                      ONRR determines that the
                                      value may be unreasonable,
                                      ONRR will notify the
                                      lessee and give the lessee
                                      an opportunity to provide
                                      written information
                                      justifying the lessee's
                                      value.
----------------------------------------------------------------------------------------------------------------
1206.152(b)(2).....................  (b)(2) . . . The lessee                  80               1              80
                                      must request a value
                                      determination in
                                      accordance with paragraph
                                      (g) of this section for
                                      gas sold pursuant to a
                                      warranty contract; . . .
----------------------------------------------------------------------------------------------------------------
1206.152(b)(3).....................  (b)(3) ONRR may require a               AUDIT PROCESS. See note.
                                      lessee to certify that its
                                      arm's-length contract
                                      provisions include all of
                                      the consideration to be
                                      paid by the buyer, either
                                      directly or indirectly,
                                      for the gas.
----------------------------------------------------------------------------------------------------------------
1206.152(e)(1).....................  (e)(1) Where the value is     Burden covered under OMB Control Number 1012-
                                      determined pursuant to                           0004.
                                      paragraph (c) of this
                                      section, the lessee shall
                                      retain all data relevant
                                      to the determination of
                                      royalty value . . .
----------------------------------------------------------------------------------------------------------------
1206.152(e)(2).....................  206.152(e)(2) Any Federal               AUDIT PROCESS. See note.
                                      lessee will make available
                                      upon request to the
                                      authorized ONRR or State
                                      representatives, to the
                                      Office of the Inspector
                                      General of the department
                                      of the Interior, or other
                                      person authorized to
                                      receive such information,
                                      arm's-length sales and
                                      volume data for like-
                                      quality production sold,
                                      purchased or otherwise
                                      obtained by the lessee
                                      from the field or area or
                                      from nearby fields or
                                      areas.
----------------------------------------------------------------------------------------------------------------
1206.152(e)(3).....................  (e)(3) A lessee shall                    10              10             100
                                      notify ONRR if it has
                                      determined value pursuant
                                      to paragraph (c)(2) or
                                      (c)(3) of this section . .
                                      .
----------------------------------------------------------------------------------------------------------------

[[Page 36332]]

 
1206.152(g)........................  (g) The lessee may request               40               5             200
                                      a value determination from
                                      ONRR . . . The lessee
                                      shall submit all available
                                      data relevant to its
                                      proposal . . .
----------------------------------------------------------------------------------------------------------------
1206.153(b)(1)(i) and (b)(1)(iii)..  Valuation standards--                   AUDIT PROCESS. See note.
                                      processed gas.
                                     (b)(1)(i) . . . The lessee
                                      shall have the burden of
                                      demonstrating that its
                                      contract is arm's-length .
                                      . .
                                     (iii) . . . When ONRR
                                      determines that the value
                                      may be unreasonable, ONRR
                                      will notify the lessee and
                                      give the lessee an
                                      opportunity to provide
                                      written information
                                      justifying the lessee's
                                      value.
----------------------------------------------------------------------------------------------------------------
1206.153(b)(2).....................  (b)(2) . . . The lessee                  80               1              80
                                      must request a value
                                      determination in
                                      accordance with paragraph
                                      (g) of this section for
                                      gas sold pursuant to a
                                      warranty contract; . . .
----------------------------------------------------------------------------------------------------------------
1206.153(b)(3).....................  (b)(3) ONRR may require a               AUDIT PROCESS. See note.
                                      lessee to certify that its
                                      arm's-length contract
                                      provisions include all of
                                      the consideration to be
                                      paid by the buyer, either
                                      directly or indirectly,
                                      for the residue gas or gas
                                      plant product.
----------------------------------------------------------------------------------------------------------------
1206.153(e)(1).....................  (e)(1) Where the value is     Burden covered under OMB Control Number 1012-
                                      determined pursuant to                           0004.
                                      paragraph (c) of this
                                      section, the lessee shall
                                      retain all data relevant
                                      to the determination of
                                      royalty value . . .
----------------------------------------------------------------------------------------------------------------
1206.153(e)(2).....................  (e)(2) Any Federal lessee               AUDIT PROCESS. See note.
                                      will make available upon
                                      request to the authorized
                                      ONRR or State
                                      representatives, to the
                                      Office of the Inspector
                                      General of the Department
                                      of the Interior, or other
                                      persons authorized to
                                      receive such information,
                                      arm's-length sales and
                                      volume data for like-
                                      quality residue gas and
                                      gas plant products sold,
                                      purchased or otherwise
                                      obtained by the lessee
                                      from the same processing
                                      plant or from nearby
                                      processing plants.
----------------------------------------------------------------------------------------------------------------
1206.153(e)(3).....................  (e)(2) A lessee shall                    10               2              20
                                      notify ONRR if it has
                                      determined any value
                                      pursuant to paragraph
                                      (c)(2) or (c)(3) of this
                                      section . . .
----------------------------------------------------------------------------------------------------------------
1206.153(g)........................  206.153(g) The lessee may                80              15           1,200
                                      request a value
                                      determination from ONRR .
                                      . . The lessee shall
                                      submit all available data
                                      relevant to its proposal .
                                      . .
----------------------------------------------------------------------------------------------------------------
1206.154(c)(4).....................  Determination of quantities              40               1              40
                                      and qualities for
                                      computing royalties.
                                     (c)(4) . . . A lessee may
                                      request ONRR approval of
                                      other methods for
                                      determining the quantity
                                      of residue gas and gas
                                      plant products allocable
                                      to each lease . . .
----------------------------------------------------------------------------------------------------------------
1206.156(c)(3).....................  Transportation allowances--              40               7             280
                                      general.
                                     (c)(3) Upon request of a
                                      lessee, ONRR may approve a
                                      transportation allowance
                                      deduction in excess of the
                                      limitation prescribed by
                                      paragraphs (c)(1) and
                                      (c)(2) of this section . .
                                      . An application for
                                      exception (using Form ONRR-
                                      4393, Request to Exceed
                                      Regulatory Allowance
                                      Limitation) must contain
                                      all relevant and
                                      supporting documentation
                                      necessary for ONRR to make
                                      a determination. . . .
----------------------------------------------------------------------------------------------------------------
1206.157(a)(1)(i)..................  Determination of
                                      transportation allowances.
                                     (a) Arm's-length                        AUDIT PROCESS. See note.
                                      transportation contracts.
                                      (1)(i) . . . The lessee
                                      shall have the burden of
                                      demonstrating that its
                                      contract is arm's-length .
                                      . .
                                    ----------------------------------------------------------------------------
                                     The lessee must claim a       Burden covered under OMB Control Number 1012-
                                      transportation allowance                         0004.
                                      by reporting it on a
                                      separate line entry on the
                                      Form ONRR-2014.
----------------------------------------------------------------------------------------------------------------

[[Page 36333]]

 
1206.157(a)(1)(iii)................  (a)(1)(iii) . . . When ONRR             AUDIT PROCESS. See note.
                                      determines that the value
                                      of the transportation may
                                      be unreasonable, ONRR will
                                      notify the lessee and give
                                      the lessee an opportunity
                                      to provide written
                                      information justifying the
                                      lessee's transportation
                                      costs.
----------------------------------------------------------------------------------------------------------------
1206.157(a)(2)(ii).................  (a)(2)(ii) . . . the lessee              40               1              40
                                      may propose to ONRR a cost
                                      allocation method on the
                                      basis of the values of the
                                      products transported . . .
----------------------------------------------------------------------------------------------------------------
1206.157(a)(3).....................  (a)(3) If an arm's-length                40               1              40
                                      transportation contract
                                      includes both gaseous and
                                      liquid products and the
                                      transportation costs
                                      attributable to each
                                      cannot be determined from
                                      the contract, the lessee
                                      shall propose an
                                      allocation procedure to
                                      ONRR . . . The lessee
                                      shall submit all relevant
                                      data to support its
                                      proposal . . .
----------------------------------------------------------------------------------------------------------------
1206.157(a)(5).....................  (a)(5) . . . The                         10               3              30
                                      transportation factor may
                                      not exceed 50 percent of
                                      the base price of the
                                      product without ONRR
                                      approval.
----------------------------------------------------------------------------------------------------------------
1206.157(b)(1).....................  (b) Non-arm's-length or no    Burden covered under OMB Control Number 1012-
                                      contract. (1) The lessee                         0004.
                                      must claim a
                                      transportation allowance
                                      by reporting it on a
                                      separate line entry on the
                                      Form ONRR-2014 . . .
----------------------------------------------------------------------------------------------------------------
1206.157(b)(2)(iv) and               (b)(2)(iv) . . . After a                100               1             100
 (b)(2)(iv)(A).                       lessee has elected to use
                                      either method for a
                                      transportation system, the
                                      lessee may not later elect
                                      to change to the other
                                      alternative without
                                      approval of the ONRR.
                                     (A) . . . After an election
                                      is made, the lessee may
                                      not change methods without
                                      ONRR approval . . .
----------------------------------------------------------------------------------------------------------------
1206.157(b)(3)(i)..................  (b)(3)(i) . . . Except as               100               1             100
                                      provided in this
                                      paragraph, the lessee may
                                      not take an allowance for
                                      transporting a product
                                      which is not royalty
                                      bearing without ONRR
                                      approval.
----------------------------------------------------------------------------------------------------------------
1206.157(b)(3)(ii).................  (b)(3)(ii) . . . the lessee             100               1             100
                                      may propose to the ONRR a
                                      cost allocation method on
                                      the basis of the values of
                                      the products transported .
                                      . .
----------------------------------------------------------------------------------------------------------------
1206.157(b)(4).....................  (b)(4) Where both gaseous               100               1             100
                                      and liquid products are
                                      transported through the
                                      same transportation
                                      system, the lessee shall
                                      propose a cost allocation
                                      procedure to ONRR . . .
                                      The lessee shall submit
                                      all relevant data to
                                      support its proposal . . .
----------------------------------------------------------------------------------------------------------------
1206.157(b)(5).....................  (b)(5) You may apply for an             100               1             100
                                      exception from the
                                      requirement to compute
                                      actual costs under
                                      paragraphs (b)(1) through
                                      (b)(4) of this section.
----------------------------------------------------------------------------------------------------------------
1206.157(c)(1)(i)..................  (c) Reporting Requirements.   Burden covered under OMB Control Number 1012-
                                      (1) Arm's-length                                 0004.
                                      contracts. (i) You must
                                      use a separate entry on
                                      Form ONRR-2014 to notify
                                      ONRR of a transportation
                                      allowance.
----------------------------------------------------------------------------------------------------------------
1206.157(c)(1)(ii).................  (c)(1)(ii) ONRR may require             AUDIT PROCESS. See note.
                                      you to submit arm's-length
                                      transportation contracts,
                                      production agreements,
                                      operating agreements, and
                                      related documents . . .
----------------------------------------------------------------------------------------------------------------
1206.157(c)(2)(i)..................  (c)(2) Non-arm's-length or    Burden covered under OMB Control Number 1012-
                                      no contract. (i) You must                        0004.
                                      use a separate entry on
                                      Form ONRR-2014 to notify
                                      ONRR of a transportation
                                      allowance.
----------------------------------------------------------------------------------------------------------------
1206.157(c)(2)(iii)................  (c)(2)(iii) ONRR may                    AUDIT PROCESS. See note.
                                      require you to submit all
                                      data used to calculate the
                                      allowance deduction . . .
----------------------------------------------------------------------------------------------------------------

[[Page 36334]]

 
1206.157(e)(2), (e)(3), and (f)(1).  (e) Adjustments. (2) For      Burden covered under OMB Control Number 1012-
                                      lessees transporting                             0004.
                                      production from onshore
                                      Federal leases, the lessee
                                      must submit a corrected
                                      Form ONRR-2014 to reflect
                                      actual costs, together
                                      with any payment, in
                                      accordance with
                                      instructions provided by
                                      ONRR. (3) For lessees
                                      transporting gas
                                      production from leases on
                                      the OCS, if the lessee's
                                      estimated transportation
                                      allowance exceeds the
                                      allowance based on actual
                                      costs, the lessee must
                                      submit a corrected Form
                                      ONRR-2014 to reflect
                                      actual costs, together
                                      with its payments, in
                                      accordance with
                                      instructions provided by
                                      ONRR . . .
                                     (f) Allowable costs in
                                      determining transportation
                                      allowances . . . (1) Firm
                                      demand charges paid to
                                      pipelines . . . if you
                                      receive a payment or
                                      credit from the pipeline
                                      for penalty refunds, rate
                                      case refunds, or other
                                      reasons, you must reduce
                                      the firm demand charge
                                      claimed on the Form ONRR-
                                      2014 by the amount of that
                                      payment. You must modify
                                      Form ONRR-2014 by the
                                      amount received or
                                      credited for the affected
                                      reporting period and pay
                                      any resulting royalty and
                                      late payment interest due;
----------------------------------------------------------------------------------------------------------------
1206.158(c)(3).....................  Processing allowances--                  80              10             800
                                      general.
                                     (c)(3) Upon request of a
                                      lessee, ONRR may approve a
                                      processing allowance in
                                      excess of the limitation
                                      prescribed by paragraph
                                      (c)(2) of this section . .
                                      . An application for
                                      exception (using Form ONRR-
                                      4393, Request to Exceed
                                      Regulatory Allowance
                                      Limitation) shall contain
                                      all relevant and
                                      supporting documentation
                                      for ONRR to make a
                                      determination . . .
----------------------------------------------------------------------------------------------------------------
1206.158(d)(2)(i)..................  (d)(2)(i) If the lessee                  80               1              80
                                      incurs extraordinary costs
                                      for processing gas
                                      production from a gas
                                      production operation, it
                                      may apply to ONRR for an
                                      allowance for those costs
                                      . . .
----------------------------------------------------------------------------------------------------------------
1206.158(d)(2)(ii).................  (d)(2)(ii) . . . to retain    Burden covered under OMB Control Number 1012-
                                      the authority to deduct                          0004.
                                      the allowance the lessee
                                      must report the deduction
                                      to ONRR in a form and
                                      manner prescribed by ONRR.
----------------------------------------------------------------------------------------------------------------
1206.159(a)(1)(i)..................  Determination of processing
                                      allowances.
                                    ----------------------------------------------------------------------------
                                     (a) Arm's-length processing             AUDIT PROCESS. See note.
                                      contracts.
                                     (1)(i) . . . The lessee
                                      shall have the burden of
                                      demonstrating that its
                                      contract is arm's-length .
                                      . .
                                    ----------------------------------------------------------------------------
                                     The lessee must claim a       Burden covered under OMB Control Number 1012-
                                      processing allowance by                          0004.
                                      reporting it on a separate
                                      line entry on the Form
                                      ONRR-2014.
----------------------------------------------------------------------------------------------------------------
1206.159(a)(1)(iii)................  (a)(1)(iii) . . . When ONRR             AUDIT PROCESS. See note.
                                      determines that the value
                                      of the processing may be
                                      unreasonable, ONRR will
                                      notify the lessee and give
                                      the lessee an opportunity
                                      to provide written
                                      information justifying the
                                      lessee's processing costs.
----------------------------------------------------------------------------------------------------------------
1206.159(a)(3).....................  (a)(3) If an arm's-length                20               1              20
                                      processing contract
                                      includes more than one gas
                                      plant product and the
                                      processing costs
                                      attributable to each
                                      product cannot be
                                      determined from the
                                      contract, the lessee shall
                                      propose an allocation
                                      procedure to ONRR . . .
                                      The lessee shall submit
                                      all relevant data to
                                      support its proposal . . .
----------------------------------------------------------------------------------------------------------------
1206.159(b)(1).....................  (b) Non-arm's-length or no    Burden covered under OMB Control Number 1012-
                                      contract. (1) . . . The                          0004.
                                      lessee must claim a
                                      processing allowance by
                                      reflecting it as a
                                      separate line entry on the
                                      Form ONRR-2014 . . .
----------------------------------------------------------------------------------------------------------------
1206.159(b)(2)(iv) and               (b)(2)(iv) . . . When a                 100               1             100
 (b)(2)(iv)(A).                       lessee has elected to use
                                      either method for a
                                      processing plant, the
                                      lessee may not later elect
                                      to change to the
                                      alternative without
                                      approval of the ONRR.
                                     (A) . . . After an election
                                      is made, the lessee may
                                      not change methods without
                                      ONRR approval . . .
----------------------------------------------------------------------------------------------------------------

[[Page 36335]]

 
1206.159(b)(4).....................  (b)(4) A lessee may apply               100               1             100
                                      to ONRR for an exception
                                      from the requirements that
                                      it compute actual costs in
                                      accordance with paragraphs
                                      (b)(1) through (b)(3) of
                                      this section . . .
----------------------------------------------------------------------------------------------------------------
1206.159(c)(1)(i)..................  (c) Reporting requirements--  Burden covered under OMB Control Number 1012-
                                      (1) Arm's-length                                 0004.
                                      contracts. (i) The lessee
                                      must notify ONRR of an
                                      allowance based on
                                      incurred costs by using a
                                      separate line entry on the
                                      Form ONRR-2014.
----------------------------------------------------------------------------------------------------------------
1206.159(c)(1)(ii).................  (c)(1)(ii) ONRR may require             AUDIT PROCESS. See note.
                                      that a lessee submit arm's-
                                      length processing
                                      contracts and related
                                      documents . . .
----------------------------------------------------------------------------------------------------------------
1206.159(c)(2)(i)..................  (c)(2) Non-arm's-length or    Burden covered under OMB Control Number 1012-
                                      no contract. (i) The                             0004.
                                      lessee must notify ONRR of
                                      an allowance based on
                                      incurred costs by using a
                                      separate line entry on the
                                      Form ONRR-2014.
----------------------------------------------------------------------------------------------------------------
1206.159(c)(2)(iii)................  (c)(2)(iii) Upon request by             AUDIT PROCESS. See note.
                                      ONRR, the lessee shall
                                      submit all data used to
                                      prepare the allowance
                                      deduction . . .
----------------------------------------------------------------------------------------------------------------
1206.159(e)(2) and (e)(3)..........  (e) Adjustments . . . (2)     Burden covered under OMB Control Number 1012-
                                      For lessees processing                           0004.
                                      production from onshore
                                      Federal leases, the lessee
                                      must submit a corrected
                                      Form ONRR-2014 to reflect
                                      actual costs, together
                                      with any payment, in
                                      accordance with
                                      instructions provided by
                                      ONRR. (3) For lessees
                                      processing gas production
                                      from leases on the OCS, if
                                      the lessee's estimated
                                      processing allowance
                                      exceeds the allowance
                                      based on actual costs, the
                                      lessee must submit a
                                      corrected Form ONRR-2014
                                      to reflect actual costs,
                                      together with its payment,
                                      in accordance with
                                      instructions provided by
                                      ONRR . . .
----------------------------------------------------------------------------------------------------------------
    Oil and Gas Valuation Subtotal.  ...........................  ..............             123            8992
----------------------------------------------------------------------------------------------------------------
        TOTAL......................  ...........................  ..............             133            9518
----------------------------------------------------------------------------------------------------------------
Note: AUDIT PROCESS--The Office of Regulatory Affairs determined that the audit process is exempt from the
  Paperwork Reduction Act of 1995 because ONRR staff asks non-standard questions to resolve exceptions.

    This 60-day Federal Register notice burden chart shows an 
adjustment increase of +320 burden hours. This adjustment is based on 
analyzed historical data since 2013 for the transportation and 
processing allowances (1206.156(c)(3) and 1206.158(c)(3)). The 
transportation processing allowance increased from 120 to 280 burden 
hours and the processing allowance increased from 640 to 800 burden 
hours for a total increase of +320 annual burden hours.
    Estimated Annual Reporting and Recordkeeping ``Non-hour'' Cost 
Burden: We have not identified a ``non-hour'' cost burden associated 
with the 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 does 
not have to respond to, a collection of information unless it displays 
a currently valid OMB control number.

III. Request for 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 that ONRR collects; and (d) minimize the 
burden on the respondents, including the use of automated collection 
techniques or other forms of information technology.
    The PRA also requires agencies to estimate the total annual 
reporting ``non-hour cost'' burden to respondents or record-keepers 
resulting from the collection of information. If you have costs to 
generate, maintain, and disclose this information, you should comment 
and provide your total capital and startup cost components or annual 
operation, maintenance, and purchase of service components. You should 
describe the methods that you use to estimate (1) major cost factors, 
including system and technology acquisition, (2) expected useful life 
of capital equipment, (3) discount rate(s), and (4) the period over 
which you incur costs. Capital and startup costs include, among other 
items, computers and software that you purchase to prepare for 
collecting information and monitoring, sampling, and testing equipment, 
and record storage facilities. Generally, your estimates should not 
include equipment or services purchased (i) before October 1, 1995; 
(ii) to comply with requirements not associated with the information

[[Page 36336]]

collection; (iii) for reasons other than to provide information or keep 
records for the Federal Government; or (iv) as part of customary and 
usual business, or private practices.
    We will summarize written responses to this notice and address them 
in our ICR submission for OMB approval, including appropriate 
adjustments to the estimated burden. We will provide a copy of the ICR 
to you, without charge, upon request. We also will post the ICR at 
http://www.onrr.gov/Laws_R_D/FRNotices/ICR0136.htm.
    Public Comment Policy: ONRR will post all comments, including names 
and addresses of respondents at http://www.regulations.gov. Before 
including Personally Identifiable Information (PII), such as 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.
    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 Office of Management and Budget control number.

    Dated: May 26, 2016.
Gregory J. Gould,
Director, Office of Natural Resources Revenue.
[FR Doc. 2016-13206 Filed 6-3-16; 8:45 am]
 BILLING CODE 4335-30-P