[Federal Register Volume 82, Number 23 (Monday, February 6, 2017)]
[Notices]
[Pages 9389-9391]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-02356]


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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: 30 CFR Parts 1202, 
1204, and 1206, Federal Oil and Gas Valuation--OMB Control Number 1012-
0005; Comment Request

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

ACTION: Notice of renewal of an existing information collection.

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SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), ONRR 
is notifying the public that we have submitted to the Office of 
Management and Budget (OMB) an Information Collection Request (ICR) to 
renew approval of the paperwork requirements in the regulations under 
title 30, Code of Federal Regulations (CFR), parts 1202, 1204, and 
1206. This ICR pertains to (1) Federal oil and gas valuation 
regulations, which include transportation and processing regulatory 
allowance limits; and (2) accounting and auditing relief for marginal 
properties. Also, there is one form (ONRR-4393 [Request to Exceed 
Regulatory Allowance Limitation]) associated with this information 
collection.

DATES: OMB has up to 60 days to approve or disapprove the information

[[Page 9390]]

collection request but may respond after 30 days; therefore, you should 
submit your public comments to OMB by February 24, 2017 for the 
assurance of consideration.

ADDRESSES: Submit comments to the Office of Information and Regulatory 
Affairs, Office of Management and Budget, Attention: Desk Officer for 
the Department of Interior (1012-0005), by telefax at (202) 395-5806 or 
via email to [email protected]. Also, please send a copy of 
your comments to Luis Aguilar, Regulatory Specialist, Office of Natural 
Resources Revenue, P.O. Box 25165, MS 61030A, Denver, Colorado 80225. 
Please reference ``ICR 1012-0005'' in your comments.

FOR FURTHER INFORMATION 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 a value 
of production from the leased lands. The lessee, or designee, must 
report various kinds of information to the lessor relative to the 
disposition of the leased minerals. Such information is generally 
available within the records of the lessee or others involved in 
developing, transporting, processing, purchasing, or selling of such 
minerals.

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 lessees collect and submit information used to value their 
Federal oil and gas, including (1) transportation and processing 
allowances and (2) regulatory allowance limit information. Lessees 
report certain data on form ONRR-2014, Report of Sales and Royalty 
Remittance (OMB Control Number 1012-0004). 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 the reasonable, 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 must complete and submit 
form ONRR-4393, including a letter and supporting documentation, 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 of 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) 
the request to exceed regulatory allowance limitation 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 valuing Federal oil and gas, including (a) transportation 
and processing allowances and (b) the request to exceed regulatory 
allowance limit information [form ONRR-4393]. ONRR also requires that 
lessees submit the allowance information and form to obtain benefits 
for claiming allowances on form ONRR-2014. In addition, ONRR requires 
lessees to respond to information collections in regards to requesting 
approval for accounting and auditing relief.

II. Data

    Title: 30 CFR parts 1202, 1204, and 1206, Federal Oil and Gas 
Valuation.
    OMB Control Number: 1012-0005.

[[Page 9391]]

    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: 
10,018 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:

                                       Summary of Information Collections
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                                                                     Number of
    Information collections      Requirement to    Frequency of       annual       Annual burden    Annual cost
                                    respond          response        responses         hours         ($51/hr.)
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Oil and Gas Valuation (Part     Mandatory......  On occasion....             114           8,396        $428,196
 1206 not including Sections
 1206.109, 1206.156, and
 1206.158(c)(3) below).
Request to Exceed Regulatory    Required to      On occasion....              19           1,096          55,896
 Allowance Limitation.           obtain a
(Form ONRR-4393) (Sections       benefit.
 1206.109, 1206.156, and
 1206.158(c)(3)).
Accounting and Auditing Relief  Required to      Annually.......               3             246          12,546
 for Marginal Properties--       obtain a
 Industry (Sections              benefit.
 1204.202(b)(1), 1204.203(b),
 1204.205(a) & (b), and
 1204.206(a)(3)(i), (b)(1), &
 1204.209(b).
Accounting and Auditing Relief  Required to      Annually.......               7             280          14,280
 for Marginal Properties--       obtain a
 States (Section                 benefit.
 1204.208(c)(1), (d)(1), &
 (e)).
    Total.....................  ...............  ...............             143          10,018        $510,918
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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 30-day Federal Register notice burden chart shows an 
adjustment increase of +820 burden hours. This adjustment is based on 
analyzed historical data since the last renewal for 1206.153(g), 
1206.156(c)(3), 1206.157(a)(1)(i), 1206.157(b)(1), 1206.158(c)(3), 
1206.159(a)(1)(i), and 1206.159(b)(1); this also includes addressing 
industry's comments.
    Estimated Annual Reporting and Recordkeeping ``Non-hour'' Cost 
Burden: We have identified no ``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.
    To comply with the public consultation process, we published a 
notice in the Federal Register on June 6, 2016 (81 FR 36325), 
announcing that we would submit this ICR to OMB for approval. The 
notice provided the required 60-day comment period. We received no 
unsolicited comments in response to the notice.
    If you wish to comment in response to this notice, you may send 
your comments to the offices listed under the ADDRESSES section of this 
notice. OMB has up to 60 days to approve or disapprove the information 
collection, but they may respond after 30 days. Therefore, in order to 
ensure maximum consideration, OMB should receive public comments by 
March 6, 2017.
    Public Comment Policy: We 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: January 31, 2017.
Gregory J. Gould,
Director, Office of Natural Resources Revenue.
[FR Doc. 2017-02356 Filed 2-3-17; 8:45 am]
 BILLING CODE 4335-MR-P