[Federal Register Volume 84, Number 184 (Monday, September 23, 2019)]
[Notices]
[Pages 49760-49762]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-20473]


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DEPARTMENT OF THE INTERIOR

Office of Natural Resources Revenue

[Docket No. ONRR-2012-0006; DS63644000 DR2000000.CH7000 190D1113RT; OMB 
Control Number 1012-0005]


Agency Information Collection Activities: Federal Oil and Gas 
Valuation

AGENCY: Office of Natural Resources Revenue, Interior.

ACTION: Notice of information collection; request for comment.

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SUMMARY: In accordance with the Paperwork Reduction Act of 1995, the 
Office of Natural Resources Revenue (ONRR) is proposing to renew an 
information collection with revisions. ONRR seeks renewed authority to 
collect information pertaining to (1) the Federal oil and gas valuation 
regulations, which include transportation and processing regulatory 
allowance limits; and (2) the accounting and auditing relief for 
marginal properties.

DATES: You must submit your written comments on or before November 22, 
2019.

ADDRESSES: You may submit comments on this Information Collection 
Request (ICR) to ONRR by using one of the following three methods 
(please reference ``ICR 1012-0005'' in the subject line of your 
comments):
    1. Electronically go to http://www.regulations.gov. In the entry 
titled ``Enter Keyword or ID,'' enter ``ONRR-2012-0006'' and 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 85, MS 64400B, Denver Federal 
Center, West 6th Ave. and Kipling St., Denver, Colorado 80225.

FOR FURTHER INFORMATION CONTACT: For questions on technical issues, 
contact Mr. Peter Christnacht, Royalty Valuation, ONRR, telephone at 
(303) 233-2225, or email to [email protected]. For other 
questions, contact Mr. Armand Southall, telephone at (303) 231-3221, or 
email to [email protected]. You may also contact Mr. Southall to 
obtain copies (free of charge) of (1) the ICR, (2) any associated 
forms, and (3) the regulations requiring the subject collection of 
information.

[[Page 49761]]


SUPPLEMENTARY INFORMATION: In accordance with the Paperwork Reduction 
Act of 1995, we provide the general public and other Federal agencies 
with an opportunity to comment on new, proposed, revised, and 
continuing collections of information. This helps us assess the impact 
of our information collection requirements and minimize the public's 
reporting burden. It also helps the public understand our information 
collection requirements and provide the requested data in the desired 
format.
    We are soliciting comments on the proposed information collection 
request (ICR) described below. We are especially interested in public 
comment addressing the following issues mentioned in the Office of 
Management and Budget (OMB) regulations at 5 CFR 1320.8(d)(1): (1) Is 
the collection necessary to perform the proper functions of ONRR; (2) 
will this information be processed and used in a timely manner; (3) is 
the estimate of burden accurate; (4) how might ONRR enhance the 
quality, utility, and clarity of the information to be collected; and 
(5) how might ONRR minimize the burden of this collection on the 
respondents, including through the use of information technology.
    Comments that you submit in response to this notice are a matter of 
public record. ONRR will post all comments, including names and 
addresses of respondents, at http://www.regulations.gov. We will 
include or summarize each comment in our request to OMB to approve this 
ICR. Before including your Personally Identifiable Information (PII), 
such as your address, phone number, email address, or other PII 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 can ask 
us, in your comment, to withhold your PII from public view, we cannot 
guarantee that we will be able to do so. We also will post the ICR at 
https://www.onrr.gov/Laws_R_D/FRNotices/ICR0136.htm.

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). Under various laws, the 
Secretary is charged to (1) manage mineral resources production from 
Federal and Indian lands and the OCS; (2) collect the royalties and 
other mineral revenues due; and (3) distribute the funds collected. We 
have posted the laws pertaining to mineral leases on Federal and Indian 
lands and the OCS at http://www.onrr.gov/Laws_R_D/PubLaws/index.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.

General Information

    When a company or an individual enters into a lease to explore, 
develop, produce, and sell, or otherwise dispose of, minerals from 
Federal or Indian lands, that company or individual agrees to pay the 
lessor a share of the production's value. The lessee, or its 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 such 
minerals.
    Information collections that we cover in this ICR are found at 
title 30 of the Code of Federal Regulations (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.
    All data reported is subject to subsequent audit and adjustment.
    In March 2019, the U.S. District Court for the Northern District of 
California vacated ONRR's 2017 Repeal rule of its 2016 Consolidated 
Federal Oil & Gas and Federal & Indian Coal Valuation Reform rule. By 
vacating ONRR's 2017 Repeal rule, the Court reinstated ONRR's 2016 
Consolidated Federal Oil & Gas and Federal & Indian Coal Valuation 
Reform rule, originally published on July 1, 2016 (81 FR 43338) (2016 
Valuation Rule), with its original effective date of January 1, 2017.
    We have not revised the burden hours because a lessee could 
potentially revise reporting periods prior to January 1, 2017 (i.e., 
periods under the old rule).

Information Collections

    ONRR, acting for the Secretary, uses the information that we 
collect to ensure that lessees accurately value and appropriately pay 
all royalties based on the oil and gas produced from Federal onshore 
and offshore leases. ONRR and other Federal government entities, 
including the Bureau of Land Management, and the State governmental 
entities, use the information for audit purposes, and for evaluating 
the reasonableness of product valuation or allowance claims that 
lessees submit. Please refer to the Data section for the estimated 
total burden hours.
A. Federal Oil and Gas Valuation Regulations
    The valuation regulations at 30 CFR part 1206, subparts C and D, 
mandate that lessees collect and/or 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, Royalty and Production 
Reporting). 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.
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 accounting and auditing 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 transportation and processing 
allowances, and (2) to request accounting and auditing relief approval 
for qualifying Federal marginal properties. Not collecting this

[[Page 49762]]

information would limit the Secretary's ability to discharge fiduciary 
duties and may also result in the loss of royalty payments. We protect 
the proprietary information that we receive and do not collect items of 
a sensitive nature.
    ONRR requires lessees to respond to information collections 
relating to valuing Federal oil and gas, including transportation and 
processing allowances. ONRR also requires that lessees submit the 
allowance information 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.

Data

    Title of Collection: Federal Oil and Gas Valuation--30 CFR parts 
1202, 1204 and 1206.
    OMB Control Number: 1012-0005.
    Form Number: None.
    Type of Review: Extension of a currently approved collection.
    Respondents/Affected Public: Businesses.
    Total Estimated Number of Annual Respondents: 120 Federal lessees/
designees and 7 States for Federal oil and gas.
    Total Estimated Number of Annual Responses: 143.
    Estimated Completion Time per Response: The average completion time 
is 70.06 hours per response. The average completion time calculated by 
dividing the total estimated burden hours (10,018) by the estimated 
annual responses (143) from the table below.
    Total Estimated Number of Annual Burden Hours: 10,018 hours.
    Respondent's Obligation: Submission of lessees' information used 
for valuing Federal oil and gas, including transportation and 
processing allowances, to ONRR is mandatory. Lessees and designees 
requesting accounting and auditing relief for qualifying Federal 
marginal properties is required to obtain or retain a benefit.
    Frequency of Collection: Annually and on occasion.
    Total Estimated Annual Nonhour Burden Cost: We have identified no 
``nonhour'' cost burden associated with the collection of information.
    We have not included in our estimates certain requirements that 
companies perform in the normal course of business and that ONRR 
considers usual and customary.
    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.

    Authority:  Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et 
seq.).

Gregory J. Gould,
Director, Office of Natural Resources Revenue.
[FR Doc. 2019-20473 Filed 9-20-19; 8:45 am]
 BILLING CODE 4335-30-P