[Federal Register Volume 85, Number 58 (Wednesday, March 25, 2020)]
[Notices]
[Pages 16954-16956]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-06207]
[[Page 16954]]
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DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue
[Docket No. ONRR-2011-0008; DS63644000 DR2000000.CH7000 190D1113RT; OMB
Control Number 1012-0006]
Agency Information Collection Activities: Suspensions Pending
Appeal and Bonding
AGENCY: Office of the Secretary, 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 (PRA),
the Office of Natural Resources Revenue (ONRR) is proposing to renew an
information collection. Through this Information Collection Renewal
(ICR), ONRR seeks renewed authority to collect information related to
the paperwork requirements under 30 CFR part 1243 to post a surety or
bond, or demonstrate financial solvency.
DATES: Submit written comments on or before May 26, 2020
ADDRESSES: You may submit comments on this ICR to ONRR through the
following three methods: (Please use ``ICR 1012-0006'' as an identifier
in your comment).
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. Luis Aguilar, Regulatory Specialist, at
[email protected].
3. Hand-carry or mail comments to ONRR by using an overnight
courier service. 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 Ms. Kimberly Werner, Financial Services, ONRR, at (303) 231-
3801 or email to [email protected]. For other questions, contact
Mr. Luis Aguilar, at (303) 231-3418, or email to [email protected].
You may also contact Mr. Aguilar to obtain copies of the ICR and the
regulations requiring ONRR to collect the information. There is no cost
to request copies of these documents.
SUPPLEMENTARY INFORMATION: In accordance with the PRA, ONRR provides
the general public and other Federal agencies with an opportunity to
comment on new, proposed, revised, and continued information
collections. This helps ONRR assess the impact of our information
collection requirements and minimize the public's reporting burden. It
also helps the public understand ONRR's information collection
requirements and provide the requested data in the desired format.
ONRR publishes this notice to elicit comments on the proposed ICR.
ONRR is 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. ONRR 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 personal
identifying 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 can ask ONRR, in your comment, to withhold your
PII from public view, ONRR cannot guarantee that it will be able to do
so. ONRR will post the ICR at https://www.onrr.gov/Laws_R_D/FRNotices/ICR0122.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's responsibility is to (1) manage mineral resource
production, (2) collect royalties and other mineral revenues due, and
(3) disburse the funds collected. ONRR posted the 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.
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 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.
If ONRR determines that a lessee did not properly report or pay, it
may issue orders, notices of noncompliance, and civil penalty notices
to compel corrective reporting, payment, or both. Lessees have a right
to appeal ONRR's determinations.
Information Collections
Regulations under 30 CFR part 1243 govern the submission of
appropriate surety instruments to suspend compliance with orders or
decisions and to stay the accrual of civil penalties (if the Office of
Hearings and Appeals grants a lessee's petition to stay accrual of
civil penalties) pending administrative appeal for Federal and Indian
leases. For Federal oil and gas leases, under 30 U.S.C. 1724(l) and its
implementing regulations under 30 CFR part 1243, an appellant
requesting a suspension without providing a surety must submit
information to demonstrate financial solvency. This ICR covers the
burden hours associated with submitting financial statements and surety
instruments required to stay an ONRR order, decision, or accrual of
civil penalties.
Stay of Payment Pending Appeal
Title 30 CFR 1243.1 states that lessees or recipients of ONRR
orders may suspend compliance with an order if they appeal under 30 CFR
part 1290. Pending appeal, ONRR may suspend the payment requirement if
the appellant submits a formal agreement of payment in the case of
default, such as a bond or other surety; for Federal oil and gas
leases, the appellant may alternatively demonstrate financial solvency.
If the Office of Hearings and Appeals grants a lessee's, or other
recipient of a notice of noncompliance or civil penalty notice, request
to stay the accrual of civil penalties under 30 CFR 1241.55(b)(2)
[[Page 16955]]
and 1241.63(b)(2), the lessee or other recipient must post a bond or
other surety. For Federal oil and gas leases, the appellant may
alternatively demonstrate financial solvency.
ONRR accepts the following surety types: form ONRR-4435,
Administrative Appeal Bond; form ONRR-4436, Letter of Credit; form
ONRR-4437, Assignment of Certificate of Deposit; Self-bonding; and U.S.
Treasury Securities.
When an appellant selects one of the surety types and puts it in
place, the appellant must maintain the surety until the appeal's
completion. If the appeal is decided in favor of the appellant, ONRR
will return the surety to the appellant. If the appeal is decided in
favor of ONRR, then ONRR will take action to collect the total amount
due or draw down on the surety. ONRR will draw down on a surety if the
appellant fails to comply with requirements relating to the amount due,
timeframe, or surety submission or resubmission. Whenever ONRR draws
down on a surety, it reduces the total amount due, which is defined as
the unpaid principal plus the interest accrued to the projected receipt
date of the surety payment. Appellants may refer to the Surety
Instrument Posting Instructions, available on our website at http://www.onrr.gov/compliance/appeals.htm.
Forms and Other Surety Types
A. Form ONRR-4435, Administrative Appeal Bond
An appellant may file form ONRR-4435, Administrative Appeal Bond,
which ONRR uses to secure the financial interests of the public and
Indian lessors during the entire administrative and judicial appeal
processes. Under 30 CFR 1243.4, an appellant is required to submit its
contact and surety amount information on the bond to obtain the benefit
of suspension of an obligation to comply with an order. The bond must
be issued by a qualified surety company that the U.S. Department of the
Treasury approves (see Department of the Treasury Circular No. 570,
revised periodically in the Federal Register). ONRR's Director, or the
delegated bond-approving officer, maintains the bonds in a secure
facility. After an appeal's conclusion, ONRR may release and return the
bond to the appellant or collect payment on the bond. If collection is
necessary for a remaining balance, ONRR will issue a demand for payment
to the surety company with a notice to the appellant. ONRR will also
include all interest accrued on the affected receivable.
B. Form ONRR-4436, Letter of Credit
An appellant may choose to file form ONRR-4436, Letter of Credit,
with no modifications. Requirements under 30 CFR 1243.4 continue to
apply. ONRR's Director, or the delegated bond-approving officer,
maintains the Letter of Credit (LOC) in a secure facility. The
appellant is responsible for verifying that the bank provides a current
Fitch rating to ONRR. After the appeal's conclusion, ONRR may release
and return the LOC to the appellant or collect payment on the LOC. If
collection is necessary for a remaining balance, ONRR will issue a
demand for payment that includes the principal amount plus the interest
assessed on the receivable, to the bank with a notice to the appellant.
C. Form ONRR-4437, Assignment of Certificate of Deposit
An appellant may choose to secure a debt by requesting to use a
Certificate of Deposit (CD) from a bank with the required minimum
rating and submitting form ONRR-4437, Assignment of Certificate of
Deposit. Requirements under 30 CFR 1243.4 continue to apply. The
appellant must file the request with ONRR prior to the invoice due
date. ONRR will accept a book-entry CD that explicitly assigns the CD
to ONRR's Director. If collection of the CD is necessary for an unpaid
balance, ONRR will return unused CD funds to the appellant after total
settlement of the appealed issues, including applicable interest
charges.
D. Self-Bonding
For Federal oil and gas leases, regulations under 30 CFR 1243.201
provide that no surety instrument is required when a person
representing the appellant periodically demonstrates, to the
satisfaction of ONRR, that the guarantor or appellant is financially
solvent or otherwise able to pay the obligation. The appellant must
submit a written request to ``self-bond'' every time a new appeal is
filed. To evaluate the financial solvency and exemption from
requirements of appellants to maintain a surety related to an appeal,
ONRR requires appellants to submit a consolidated balance sheet,
subject to annual audit. In some cases, ONRR also requires copies of
the most recent tax returns (up to three years) filed by the appellant.
In addition, an appellant must annually submit financial
statements, subject to annual audit, to support its net worth. ONRR
uses the consolidated balance sheet or business information supplied to
evaluate the financial solvency of a lessee, designee, or payor seeking
a stay of payment obligation pending review. If the appellant does not
have a consolidated balance sheet documenting its net worth, or if it
does not meet the $300 million net worth requirement, ONRR selects a
business information or credit reporting service to provide information
concerning the appellant's financial solvency. ONRR charges the
appellant a $50 fee each time it reviews data from a business
information or credit reporting service. The fee covers ONRR's cost to
determine an appellant's financial solvency.
E. U.S. Treasury Securities
An appellant may choose to secure its debts by requesting to use a
U.S. Treasury Security (TS). The appellant must file the letter of
request with ONRR prior to the invoice due date. The TS must be a U.S.
Treasury note or bond with maturity equal to or greater than one year.
The TS must equal 120 percent of the appealed amount plus 1 year of
estimated interest (necessary to protect ONRR against interest rate
fluctuations). ONRR only accepts book-entry TS.
OMB Approval
ONRR is requesting OMB's approval to continue to collect this
information. Not collecting this information would limit the
Secretary's ability to discharge the duties of the office and may
result in loss of royalty and other payments. Proprietary information
submitted to ONRR under this collection is protected, and there are no
questions of a sensitive nature included in this information
collection. A response is mandatory in order to suspend compliance with
an order pending appeal.
Data
Title: Suspensions Pending Appeal and Bonding.
OMB Control Number: 1012-0006.
Bureau Form Numbers: Forms ONRR-4435, ONRR-4436, and ONRR-4437.
Frequency: Annually and on occasion.
Estimated Number and Description of Respondents: 105 Federal or
Indian appellants.
Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 210
hours.
The following table shows the estimated annual burden hours by CFR
section and paragraph. ONRR has not included in its estimates certain
requirements performed in the normal course of business and considered
usual and customary.
[[Page 16956]]
Respondents' Estimated Annual Burden Hours
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Reporting and
Citation 30 CFR part 1243 recordkeeping Hour burden Average number of Annual burden
requirement annual responses hours
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1243.4(a)(1); 1243.6; 1243.7(a); How do I suspend 2 40 (surety 80
1243.8(a)(2) and (b)(2); compliance with an instruments: Forms
1243.101(b); 1243.202(c). order?. ONRR-4435, ONRR-
(a) If you timely appeal 4436, ONRR-4437,
an order, and if that or TS).
order or portion of
that order: (1)
Requires you to make a
payment, and you want
to suspend compliance
with that order, you
must post a bond or
other surety instrument
or demonstrate
financial solvency * *
*.
1243.200(a) and (b); How do I demonstrate
1243.201(c)(1), (c)(2)(i) and financial solvency?.
(c)(2)(ii) and (d)(2). (a) To demonstrate
financial solvency
under this part, you
must submit an audited
consolidated balance
sheet, and, if
requested by the ONRR
bond-approving officer,
up to 3 years of tax
returns to the ONRR, *
* *.
(b) You must submit an 2 65 self-bonding 130
audited consolidated submissions.
balance sheet annually,
and, if requested,
additional annual tax
returns on the date
ONRR first determined
that you demonstrated
financial solvency as
long as you have active
appeals, or whenever
ONRR requests. * * *.
rrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr
Total burden................. ........................ .............. 105................ 210
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Estimated Annual Reporting and Recordkeeping ``Non-hour'' Cost
Burden: There are no additional recordkeeping costs associated with
this information collection. However, ONRR estimates 5 appellants per
year will pay a $50 fee to obtain credit data from a business
information or credit reporting service, which is a total ``non-hour''
cost burden of $250 per year (5 appellants per year x $50 = $250).
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.
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: (1) Evaluate whether the proposed
collection of information is necessary for the agency to perform its
duties, including whether the information is useful; (2) evaluate the
accuracy of the agency's estimate of the burden of the proposed
collection of information; (3) enhance the quality, usefulness, and
clarity of the information that ONRR collects; and (4) 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; 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.
ONRR will summarize written responses to this notice and address
them in its ICR submission for OMB approval, including appropriate
adjustments to the estimated burden. ONRR will provide a copy of the
ICR to you without charge upon request. ONRR also will post the ICR at
http://www.onrr.gov/Laws_R_D/FRNotices/ICR0122.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 ONRR in your
comment to withhold PII from public view, ONRR cannot guarantee that it
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 OMB control number.
(Authority: Paperwork Reduction Act of 1995, 44 U.S.C. 3501 et seq.)
Kimbra G. Davis,
Director, Office of Natural Resources Revenue.
[FR Doc. 2020-06207 Filed 3-24-20; 8:45 am]
BILLING CODE 4335-30-P