[Federal Register Volume 82, Number 86 (Friday, May 5, 2017)]
[Notices]
[Pages 21261-21264]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-09047]


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DEPARTMENT OF THE INTERIOR

Office of Natural Resources Revenue

[Docket No. ONRR-2011-0006; DS63644000 DR2000000.CH7000 178D0102R2]


Agency Information Collection Activities: OCS Net Profit Share 
Payment Reporting--OMB Control Number 1012-0009; Comment Request

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

ACTION: Notice of 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). Also, this ICR pertains to royalties or net 
profit share payments from oil and gas leases on submerged Federal 
lands on the Outer Continental Shelf (OCS).

DATES: You must submit your written comments on or before July 5, 2017.

ADDRESSES: You may submit comments on this ICR to ONRR by using one of 
the following three methods. Please reference ``ICR 1012-0009'' in your 
comments.
    1. Electronically go to http://www.regulations.gov. In the entry 
titled ``Enter Keyword or ID,'' enter ``ONRR-2011-0006,'' then click 
``Search.'' Follow the instructions to submit public comments. ONRR 
will post all comments.
    2. Email comments to Mr. Armand Southall, Regulatory Specialist, at 
[email protected].
    3. Hand-carry or mail comments, using an overnight courier service, 
to ONRR. Our courier address is Building 53, entrance E-20, Denver 
Federal Center, West 6th Ave. and Kipling St., Denver, Colorado 80225. 
Visitor parking is available near entrance E-20, with a phone to 
request entry. Call Mr. Armando Salazar at (303) 231-3585 or Ms. Janet 
Giron at (303) 231-3088 to gain entrance.

FOR FURTHER INFORMATION CONTACT: For questions on technical issues, 
contact

[[Page 21262]]

Roman Geissel, Deputy Program Manager, Audit Program Management, ONRR, 
at (303) 231-3473 or email to [email protected]. For other 
questions, contact Mr. Armand Southall, telephone (303) 231-3221, or 
email to [email protected]. You may also contact Mr. Southall to 
obtain copies, at no cost, of (1) the ICR and (2) the regulations that 
require us to collect the information.

SUPPLEMENTARY INFORMATION: 
    Abstract: The Secretary of the United States Department of the 
Interior is responsible for collecting royalties from lessees who 
produce minerals from leased Federal and Indian lands and the OCS. 
Under various laws, the Secretary's responsibility is to manage mineral 
resource production on Federal and Indian lands and the OCS, collect 
the royalties and other mineral revenues due, and distribute the funds 
collected. ONRR performs the royalty management functions and assists 
the Secretary in carrying out the Department's responsibility. 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.

I. General Information

    ONRR collects and uses this information to determine all allowable 
direct and allocable joint costs and credits under Sec.  1220.011 
incurred during the lease term, appropriate overhead allowance 
permitted on these costs under Sec.  1220.012, and allowances for 
capital recovery calculated under Sec.  1220.020. ONRR also collects 
this information to ensure that royalties or net profit share payments 
are accurately valued and appropriately paid. This ICR affects only oil 
and gas leases on submerged Federal lands on the OCS.

II. Information Collections

    Title 30 CFR part 1220 covers the net profit share lease (NPSL) 
program and establishes reporting requirements for determining the net 
profit share base under Sec.  1220.021 and calculating of net profit 
share payments due to the Federal government for the production of oil 
and gas from leases under Sec.  1220.022.

A. NPSL Bidding System

    To encourage exploration and development of oil and gas leases on 
submerged Federal lands on the OCS, the Bureau of Ocean Energy 
Management (BOEM) promulgated regulations at 30 CFR part 260--Outer 
Continental Shelf Oil and Gas Leasing. Also, BOEM promulgated specific 
implementing regulations for the NPSL bidding system at Sec.  
260.110(d). BOEM established the NPSL bidding system to balance a fair 
market return to the Federal government for the lease of its public 
lands with a fair profit to companies risking their investment capital. 
The system provides an incentive for early expeditious exploration and 
development and provides for sharing the risks by the lessee and the 
Federal government. The NPSL bidding system incorporates a fixed 
capital recovery system as a means through which the lessee recovers 
costs of exploration and development from production revenues, along 
with a reasonable return on investment.

B. NPSL Capital Account

    The Federal government does not receive a profit share payment from 
an NPSL until the lessee shows a credit balance in its capital account; 
that is, cumulative revenues and other credits exceed cumulative costs. 
Lessees multiply the credit balance by the net profit share rate (30 to 
50 percent), resulting in the amount of net profit share payment due 
the Federal government.
    ONRR requires lessees to maintain an NPSL capital account for each 
lease under Sec.  1220.010, which transfers to a new owner when sold. 
Following the cessation of production, lessees are also required to 
provide either an annual or a monthly report to the Federal government, 
using data from the capital account until the lease is terminated, 
expired, or relinquished.

C. NPSL Inventories

    The NPSL lessees must notify BOEM of their intent to take inventory 
so that the BOEM Director may be represented at the taking of inventory 
under Sec.  1220.032. Each lessee must file a report after each 
inventory is taken, reporting the controllable material under Sec.  
1220.031.

D. NPSL Audits

    When non-operators of an NPSL call for an audit, they must notify 
ONRR. When ONRR calls for an audit, the lessee must notify all non-
operators on the lease. These requirements are located at Sec.  
1220.033.

III. OMB Approval

    The information we collect under this ICR is essential in order to 
determine when net profit share payments are due and to ensure that 
lessees properly value and pay royalties or net profit share payments.
    We will request OMB approval to continue to collect this 
information. Not collecting this information would limit the 
Secretary's ability to discharge fiduciary duties and may also result 
in the inability to confirm the accurate royalty value. ONRR protects 
the proprietary information received and does not collect items of a 
sensitive nature.

IV. Data

    Title: 30 CFR part 1220, OCS Net Profit Share Payment Reporting.
    OMB Control Number: 1012-0009.
    Bureau Form Number: None.
    Frequency: Annually, monthly, and on occasion.
    Estimated Number and Description of Respondents: 14 lessees.
    Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 2,451 
hours.
    All fourteen lessees report monthly because all current NPSLs are 
in producing status. Because the requirements for establishment of 
capital accounts at Sec.  1220.010(a) and capital account annual 
reporting at Sec.  1220.031(a) are necessary only during the non-
producing status of a lease, ONRR included only one response annually 
for these requirements, in case a new NPSL is established. We have not 
included in our estimates certain requirements performed in the normal 
course of business, which are considered usual and customary. The 
following table shows the estimated annual burden hours by CFR section 
and paragraph.

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                                   Respondents' Estimated Annual Burden Hours
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                                                                                     Number of
        Citation 30 CFR 1220         Reporting and recordkeeping    Hour burden       annual       Annual burden
                                             requirement                             responses         hours
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  PART 1220--Accounting Procedures for Determining Net Profit Share Payment for Outer Continental Shelf Oil and
                                                   Gas Leases
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                                      Sec.   1220.010 NPSL capital account
----------------------------------------------------------------------------------------------------------------
1220.010(a)........................  (a) For each NPSL tract, an               1               1               1
                                      NPSL capital account shall
                                      be established and
                                      maintained by the lessee
                                      for NPSL operations . . .
----------------------------------------------------------------------------------------------------------------
                                     Sec.   1220.030 Maintenance of records
----------------------------------------------------------------------------------------------------------------
1220.030(a) and (b)................  (a) Each lessee . . . shall               1              14              14
                                      establish and maintain
                                      such records as are
                                      necessary . . .
----------------------------------------------------------------------------------------------------------------
                               Sec.   1220.031 Reporting and payment requirements
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1220.031(a)........................  (a) Each lessee subject to                1              14              14
                                      this part shall file an
                                      annual report during the
                                      period from issuance of
                                      the NPSL until the first
                                      month in which production
                                      revenues are credited to
                                      the NPSL capital account .
                                      . .
----------------------------------------------------------------------------------------------------------------
1220.031(b)........................  (b) Beginning with the                   13         \1\ 168           2,184
                                      first month in which
                                      production revenues are
                                      credited to the NPSL
                                      capital account, each
                                      lessee . . . shall file a
                                      report for each NPSL, not
                                      later than 60 days
                                      following the end of each
                                      month . . .
                                                                 -----------------------------------------------
1220.031(c)........................  (c) Each lessee subject to   Burden hours covered under Sec.   1220.031(b).
                                      this Part 220 shall
                                      submit, together with the
                                      report required . . . any
                                      net profit share payment
                                      due . . .
                                                                 -----------------------------------------------
1220.031(d)........................  (d) Each lessee . . . shall               8              14             112
                                      file a report not later
                                      than 90 days after each
                                      inventory is taken . . .
1220.031(e)........................  (e) Each lessee . . . shall               4              14              56
                                      file a final report, not
                                      later than 60 days
                                      following the cessation of
                                      production . . .
----------------------------------------------------------------------------------------------------------------
                                           Sec.   1220.032 Inventories
----------------------------------------------------------------------------------------------------------------
1220.032(b)........................  (b) At reasonable                         1              14              14
                                      intervals, but at least
                                      once every three years,
                                      inventories of
                                      controllable materiel
                                      shall be taken by the
                                      lessee. Written notice of
                                      intention to take
                                      inventory shall be given
                                      by the lessee at least 30
                                      days before any inventory
                                      is to be taken so that the
                                      BOEM Director may be
                                      represented at the taking
                                      of inventory . . .
----------------------------------------------------------------------------------------------------------------
                                             Sec.   1220.033 Audits
----------------------------------------------------------------------------------------------------------------
1220.033(b)(1).....................  (b)(1) When nonoperators of               2              14              28
                                      an NPSL lease call an
                                      audit in accordance with
                                      the terms of their
                                      operating agreement, the
                                      ONRR Director shall be
                                      notified of the audit call
                                      . . .
1220.033(b)(2).....................  (b)(2) If DOI determines to               2              14              28
                                      call for an audit, DOI
                                      shall notify the lessee of
                                      its audit call and set a
                                      time and place for the
                                      audit . . . The lessee
                                      shall send copies of the
                                      notice to the nonoperators
                                      on the lease . . .
                                                                 -----------------------------------------------
1220.033(e)........................  (e) Records required to be     The Office of Regulatory Affairs determined
                                      kept under Sec.                that the audit process is exempt from the
                                      1220.030(a) shall be made    Paperwork Reduction Act of 1995 because ONRR
                                      available for inspection     staff asks non-standard questions to resolve
                                      by any authorized agent of                    exceptions.
                                      DOI . . .
                                                                 -----------------------------------------------
    Total Burden...................  ...........................                             267           2,451
----------------------------------------------------------------------------------------------------------------
\1\ (14 NPSL reports x 12 months = 168 reports)

    Estimated Annual Reporting and Recordkeeping ``Non-hour'' Cost 
Burden: We have identified no ``non-hour'' cost burden associated with 
this collection of information.
    Public Disclosure Statement: The PRA (44 U.S.C. 3501 et seq.) 
provides that an agency may not conduct or sponsor, and a person is not 
required to respond to, a collection of information unless it displays 
a currently valid OMB control number.

V. Request for Comments

    Section 3506(c)(2)(A) of the PRA requires each agency to ``* * * 
provide

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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 
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/FRInfColl.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.
    ONRR Information Collection Clearance Officer: Jeffrey Parrillo 
(202) 208-7072.

Authority

    The authorities for this action are the Outer Continental Shelf 
Lands Act Amendments of 1978 (43 U.S.C. 1337) and the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3501 et seq.).

    Dated: March 15, 2017.
Gregory J. Gould,
Director for Office of Natural Resources Revenue.
[FR Doc. 2017-09047 Filed 5-4-17; 8:45 am]
 BILLING CODE 4335-30-P