[Federal Register Volume 85, Number 174 (Tuesday, September 8, 2020)]
[Notices]
[Pages 55490-55491]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-19763]


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DEPARTMENT OF THE INTERIOR

Office of Natural Resources Revenue

[Docket No. ONRR-2011-0006; DS63644000 DRT000000.CH7000 201D1113RT; OMB 
Control Number 1012-0009]


Agency Information Collection Activities: Submission to the 
Office of Management and Budget for Review and Approval; Outer 
Continental Shelf (OCS) Net Profit Share Payment Reporting

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 (PRA), 
the Office of Natural Resources Revenue (ONRR) is proposing to renew an 
information collection. Through this Information Collection Request 
renewal (ICR), ONRR seeks renewed authority to collect information 
related to the paperwork requirements necessary to determine the net 
profit share base and calculate the net profit share payments due to 
the Federal Government.

DATES: Interested persons are invited to submit comments on or before 
October 8, 2020.

ADDRESSES: Written comments and recommendations for the proposed 
information collection should be sent within 30 days of publication of 
this notice to www.reginfo.gov/public/do/PRAMain. You may find this 
particular information collection by selecting ``Currently under 30-day 
Review--Open for Public Comments'' or by using the search function. 
Please provide a copy of your comments to Mr. Luis Aguilar, Regulatory 
Specialist, ONRR, Building 85, MS 64400B, Denver Federal Center, West 
6th Ave. and Kipling St., Denver, Colorado 80225, or by email to 
[email protected]. Please reference OMB Control Number 1012-0009 in 
the subject line of your comments.

FOR FURTHER INFORMATION CONTACT: To request additional information 
about this ICR, contact Mr. Jonathan Swedin, Reference and Reporting 
Management, ONRR, at (303) 231-3028, or email to 
[email protected]. You may also view the ICR at http://www.reginfo.gov/public/do/PRAMain.

SUPPLEMENTARY INFORMATION: In accordance with PRA (44 U.S.C 3501 et 
seq.) and 5 CFR 1320.8(d)(1) and 1320.10(a), ONRR is providing the 
general public and other Federal agencies with an opportunity to 
comment on the continued collection of information as described in this 
notice. This helps ONRR assess the impact of the 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. A Federal Register 
notice with a 60-day public comment period soliciting comments on this 
collection of information was published on March 27, 2020 (85 FR 
17362). ONRR did not receive any comments.
    As part of our continuing effort to reduce paperwork and respondent 
burdens, ONRR is again soliciting comments from the public and other 
Federal agencies on the proposed ICR that is described below. ONRR is 
especially interested in public comments addressing the following:
    (1) Whether or not the collection of information is necessary for 
the proper performance of the functions of the agency, including 
whether or not the information will have practical utility;
    (2) The accuracy of ONRR's estimate of the burden for this 
collection of information, including the validity of the methodology 
and assumptions used;
    (3) Ways to enhance the quality, utility, and clarity of the 
information to be collected; and
    (4) How might the agency minimize the burden of the collection of 
information on those who are to respond, including through the use of 
appropriate automated, electronic, mechanical, or other technological 
collection techniques or other forms of information technology (for 
example, permitting electronic submission of response).
    Comments that you submit in response to this notice are a matter of 
public record. Before including your address, phone number, email 
address, or other personal identifying

[[Page 55491]]

information in your comment, you should be aware that your entire 
comment--including your personal identifying information--may be made 
publicly available at any time. While you can ask in your comment to 
withhold your personal identifying information from public review, ONRR 
cannot guarantee that it will be able to do so.
    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 carry out a comprehensive 
inspection, collection, and fiscal and production accounting and 
auditing program that provides the capability to: (1) Accurately 
determine mineral royalties, interest, and other payments owed, (2) 
collect and account for such amounts in a timely manner, and (3) 
disburse the funds collected.
    The Secretary also has a trust responsibility to 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.
    The laws pertaining to mineral leases on Federal and Indian lands 
are posted at http://www.onrr.gov/Laws_R_D/PubLaws/default.htm.
    (a) General Information: This ICR pertains to the net profit share 
lease (NPSL) program. ONRR collects and uses this information to 
determine (i) the allowable direct and allocable joint costs and 
credits under 30 CFR1220.011 that are incurred during the lease term, 
(ii) the appropriate overhead allowance related to these costs 
permitted under Sec.  1220.012, and (iii) the 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 only effects oil and 
gas leases located on submerged Federal lands on the Outer Continental 
Shelf (OCS).
    (b) Information Collections: Regulations under 30 CFR part 1220 
govern the NPSL program and establishes reporting requirements to 
determine the net profit share base under Sec.  1220.021 and calculate 
the net profit share payments due to the Federal government under Sec.  
1220.022.
    (1) 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 under 30 CFR 
part 260--Outer Continental Shelf Oil and Gas Leasing. BOEM also 
promulgated specific implementing regulations for the NPSL bidding 
system under 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 risk sharing 
between the lessee and the Federal Government. The NPSL bidding system 
incorporates a fixed capital recovery system that allows a lessee to 
recover exploration and development costs from production revenues, 
including a reasonable return on investment.
    (2) 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, when cumulative revenues and 
other credits exceed cumulative costs. Lessees multiply the credit 
balance by the net profit share rate (30 to 50 percent), which 
determines the amount of net profit share payment due to 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 if sold. 
Following the cessation of production, ONRR also requires a lessee to 
provide either an annual or monthly report to the Federal Government 
using data from the capital account until such time that the lease is 
terminated, expired, or relinquished.
    (3) NPSL Inventories: A NPSL lessee must notify BOEM of its intent 
to take inventory so that BOEM's Director may be represented at the 
inventory taking under Sec.  1220.032. The lessee must file a report 
after taking inventory, and report controllable material under Sec.  
1220.031.
    (4) NPSL Audits: When a non-operator of an NPSL calls for an audit, 
it must notify ONRR. When ONRR calls for an audit, the lessee must 
notify all non-operators on the lease. These requirements are located 
under Sec.  1220.033.
    Title of Collection: OCS Net Profit Share Payment Reporting.
    OMB Control Number: 1012-0009.
    Form Number: None.
    Type of Review: Extension of a currently approved collection.
    Respondents/Affected Public: Businesses.
    Total Estimated Number of Annual Respondents: 9 lessees.
    All nine lessees report monthly because all current NPSLs are in 
producing status. The requirements to establish a capital account under 
Sec.  1220.010(a) and the capital account annual reporting under Sec.  
1220.031(a) are necessary only during the non-producing status of a 
lease. ONRR included only one response annually for those requirements, 
in case a new NPSL is established. ONRR did not include estimates of 
certain requirements performed in the normal course of business that 
are considered usual and customary.
    Total Estimated Number of Annual Responses: 180.
    Estimated Completion Time per Response: 9 hours.
    Total Estimated Number of Annual Burden Hours: 1,584 hours.
    Respondent's Obligation: Mandatory.
    Frequency of Collection: Annual, monthly, and on occasion.
    Total Estimated Annual Nonhour Burden Cost: None.
    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.
    The authority for this action is the Paperwork Reduction Act of 
1995 (44 U.S.C. 3501 et seq.).

Kimbra G. Davis,
Director, Office of Natural Resources Revenue.
[FR Doc. 2020-19763 Filed 9-4-20; 8:45 am]
BILLING CODE 4335-30-P