[Federal Register: August 31, 2009 (Volume 74, Number 167)]
[Notices]
[Page 44868-44872]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr31au09-107]
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DEPARTMENT OF THE INTERIOR
Minerals Management Service
[Docket No. MMS-2008-MRM-0039]
Agency Information Collection Activities: Submitted for Office of
Management and Budget Review; Comment Request
AGENCY: Minerals Management Service (MMS), Interior.
ACTION: Notice of a revision of a currently approved information
collection (OMB Control Number 1010-0139).
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SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), we
are 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 of the Code of Federal Regulations (CFR) parts 210 and 212.
This notice also provides the public a second opportunity to comment on
the paperwork burden of these regulatory requirements. This ICR
pertains to onshore and offshore royalty and production reporting on
oil, gas, and geothermal leases on Federal and Indian lands.
We changed the title of this ICR to reflect regulatory actions,
including publication of the final rule, RIN 1010-AD20, Reporting
Amendments, on March 26, 2008 (73 FR 15885). The final rule removed 30
CFR part 216 and replaced part 210 in its entirety. In this revision,
we also consolidated the following ICRs to allow programwide review of
royalty and production reporting for oil, gas, and geothermal leases on
Federal and Indian lands:
1010-0139, 30 CFR Part 210--Forms and Reports and Part
216--Production Accounting; and
1010-0140, 30 CFR Part 210--Forms and Reports.
DATES: Submit written comments on or before September 30, 2009.
ADDRESSES: Submit written comments by either FAX (202) 395-5806 or e-
mail (OIRA_Docket@omb.eop.gov) directly to the Office of Information
and Regulatory Affairs, OMB, Attention: Desk Officer for the Department
of the Interior (OMB Control Number 1010-0139).
Please submit copies of your comments to MMS by one of the
following methods:
Electronically go to http://www.regulations.gov. In the
``Comment or Submission'' column, enter ``MMS-2008-MRM-0039'' to view
supporting and related materials for this ICR. Click on ``Send a
comment or submission'' link to submit public comments. Information on
using Regulations.gov, including instructions for accessing documents,
submitting comments, and viewing the docket after the close of the
comment period, is available through the site's ``User Tips'' link. All
comments submitted will be posted to the docket.
Mail comments to Hyla Hurst, Regulatory Specialist,
Minerals Management Service, Minerals Revenue Management, P.O. Box
25165, MS 300B2, Denver, Colorado 80225. Please reference ICR 1010-0139
in your comments.
Hand-carry comments or use an overnight courier service.
Our courier address is Building 85, Room A-614, Denver Federal Center,
West 6th Ave. and Kipling St., Denver, Colorado 80225. Please reference
ICR 1010-0139 in your comments.
FOR FURTHER INFORMATION CONTACT: Hyla Hurst, telephone (303) 231-3495,
or e-mail hyla.hurst@mms.gov. You may also contact Hyla Hurst to obtain
copies, at no cost, of (1) the ICR, (2) any associated forms, and (3)
the regulations that require the subject collection of information.
SUPPLEMENTARY INFORMATION:
Title: 30 CFR Parts 210 and 212, Royalty and Production Reporting.
OMB Control Number: 1010-0139.
Bureau Form Number: Forms MMS-2014, MMS-4054, and MMS-4058.
Abstract: The Secretary of the U.S. Department of the Interior is
responsible for mineral resource development on Federal and Indian
lands and the Outer Continental Shelf (OCS). The Secretary is required
by various laws 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 in accordance with
applicable laws. Public laws pertaining to mineral leases on Federal
and Indian lands are posted on our Web site at http://www.mrm.mms.gov/
Laws_R_D/PublicLawsAMR.htm.
The Secretary also has a trust responsibility to manage Indian
lands and seek advice and information from Indian beneficiaries. The
MMS performs the minerals revenue management functions 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
[[Page 44869]]
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 is required to report various kinds of information to
the lessor relative to the disposition of the leased minerals.
We use the information collected in this ICR to ensure that royalty
is appropriately paid, based on accurate production accounting on oil,
gas, and geothermal resources produced from Federal and Indian leases.
The requirement to report accurately and timely is mandatory. Please
refer to the chart for all reporting requirements and associated burden
hours.
Royalty Reporting
The regulations require that lessees report and remit royalties on
oil, gas, and geothermal resources produced from leases on Federal and
Indian lands. The following form is used for royalty reporting:
Form MMS-2014, Report of Sales and Royalty Remittance, is submitted
monthly to report royalties on oil, gas, and geothermal leases, certain
rents, and other lease-related transactions (e.g., transportation and
processing allowances, lease adjustments, and quality and location
differentials).
Production Reporting
The MMS financial accounting system includes production reports
submitted by lease/agreement operators and is designed to track
minerals produced from Federal and Indian lands from the point of
production to the point of disposition, or royalty determination, and/
or point of sale. The following forms are used for production
accounting and reporting:
Form MMS-4054, Oil and Gas Operations Report (OGOR), is submitted
monthly for all production reporting for Outer Continental Shelf,
Federal, and Indian lands. Production information is compared with
sales and royalty data submitted on Form MMS-2014 to ensure proper
royalties are paid on the oil and gas production reported to MMS. The
MMS uses the information from Parts A, B, and C of the OGOR to track
all oil and gas from the point of production to the point of first sale
or other disposition.
Form MMS-4058, Production Allocation Schedule Report (PASR), is
submitted monthly by operators of the facilities and measurement points
where production from an offshore Federal lease or metering point is
commingled with production from other sources before it is measured for
royalty determination. The MMS uses the data to determine whether sales
reported by the lessee are reasonable.
OMB Approval
We will request OMB approval to continue to collect this
information. Not collecting this information would limit the
Secretary's ability to discharge his/her duties and may also result in
loss of royalty payments. Proprietary information submitted to MMS
under this collection is protected, and no items of a sensitive nature
are included in this information collection. Responses are mandatory.
Frequency: Monthly.
Estimated Number and Description of Respondents: 4,570 oil, gas,
and geothermal reporters.
Estimated Annual Reporting and Recordkeeping ``Hour'' Burden:
253,509 hours.
We have not included in our estimates certain requirements
performed in the normal course of business and considered usual and
customary. The following chart shows the estimated burden hours by CFR
section and paragraph:
Respondents' Estimated Annual Burden Hours
----------------------------------------------------------------------------------------------------------------
Reporting and Average number
30 CFR part 210 recordkeeping Hour burden of annual Annual burden
requirement responses hours
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30 CFR 210--FORMS AND REPORTS
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Subpart B--Royalty Reports--Oil, Gas, and Geothermal Resources
----------------------------------------------------------------------------------------------------------------
210.52(a) and (b)............... 210.52 What royalty Form MMS-2014
reports must I submit?
-----------------------------------------------------
Electronic* (approximately 99 percent)
-----------------------------------------------------
210.53(a) and (b)............... You must submit a 3 min............... 3,510,849 175,542
completed Form MMS-
2014, Report of Sales
and Royalty Remittance,
to MMS with:
-----------------------------------------------------
Manual* (approximately 1 percent)
-----------------------------------------------------
210.54(a) and (b)............... (a) All royalty 7 min............... 35,463 4,137
payments: And.
(b) Rents on
nonproducing leases,
where specified in the
lease.
210.53 When are my
royalty reports and
payments due?
(a) Completed Forms MMS-
2014 for royalty
payments and the
associated payments are
due by the end of the
month following the
production month (see
also Sec. 218.50).
(b) Completed Forms MMS-
2014 for rental
payments, where
applicable, and the
associated payments are
due as specified by the
lease terms (see also
Sec. 218.50).
210.54 Must I submit
this royalty report
electronically?
(a) You must submit Form
MMS-2014 electronically
unless you qualify for
an exception under Sec.
210.55(a).
(b) You must use one of
the following
electronic media types,
unless MMS instructs
you differently:
* * * * *
----------------------------------------------------------------------------------------------------------------
Subtotal for Royalty Reporting.............................................. 3,546,312 179,679
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[[Page 44870]]
Subpart C--Production Reports--Oil and Gas
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210.102(a)(1)(i) and (ii), 210.102 What production Burden hours covered under 210.104(a) and (b)
(a)(2)(i) and (ii). reports must I submit?
-----------------------------------------------------
(a) Form MMS-4054, Oil
and Gas Operations
Report. If you operate
a Federal or Indian
onshore or OCS oil and
gas lease or federally
approved unit or
communitization
agreement that contains
one or more wells that
are not permanently
plugged or abandoned,
you must submit Form
MMS-4054 to MMS:
(1) You must submit Form
MMS-4054 for each well
for each calendar
month, beginning with
the month in which you
complete drilling,
unless:
(i) You have only
test production from
a drilling well; or.
(ii) The MMS tells
you in writing to
report differently..
(2) You must continue
reporting until:
(i) The Bureau of
Land Management
(BLM) or MMS
approves all wells
as permanently
plugged or abandoned
or the lease or unit
or communitization
agreement is
terminated; and.
(ii) You dispose of
all inventory..
-----------------------------------------------------
210.102(b)(1), (b)(2)(i)-(vi)... (b) Form MMS-4058, Burden hours covered under 210.104(a) and (b)
Production Allocation
Schedule Report. If you
operate an offshore
facility measurement
point (FMP) handling
production from a
Federal oil and gas
lease or federally
approved unit agreement
that is commingled
(with approval) with
production from any
other source prior to
measurement for royalty
determination, you must
file Form MMS-4058.
-----------------------------------------------------
(1) You must submit Form
MMS-4058 for each
calendar month
beginning with the
month in which you
first handle production
covered by this
section.
(2) Form MMS-4058 is not
required whenever all
of the following
conditions are met:
(i) All leases
involved are Federal
leases;.
(ii) All leases have
the same fixed
royalty rate;.
(iii) All leases are
operated by the same
operator;.
(iv) The facility
measurement device
is operated by the
same person as the
leases/agreements;.
(v) Production has
not been previously
measured for royalty
determination; and.
(vi) The production
is not subsequently
commingled and
measured for royalty
determination at an
FMP for which Form
MMS-4058 is required
under this part..
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210.103(a) and (b).............. 210.103 When are my Burden hours covered under 210.104(a) and (b)
production reports due?
-----------------------------------------------------
(a) The MMS must receive
your completed Forms
MMS-4054 and MMS-4058
by the 15th day of the
second month following
the month for which you
are reporting.
(b) A report is
considered received
when it is delivered to
MMS by 4 p.m. mountain
time at the addresses
specified in Sec.
210.105. Reports
received after 4 p.m.
mountain time are
considered received the
following business day.
-----------------------------------------------------
210.104(a) and (b).............. 210.104 Must I submit Form MMS-4054 (OGOR)
these production
reports electronically?
-----------------------------------------------------
Electronic* (approximately 98 percent)
-----------------------------------------------------
(a) You must submit 1 min............... 4,137,803 68,963
Forms MMS-4054 and MMS-
4058 electronically
unless you qualify for
an exception under Sec.
210.105.
-----------------------------------------------------
Manual* (approximately 2 percent)
-----------------------------------------------------
3 min............... 84,445 4,222
[[Page 44871]]
(b) You must use one of Total OGOR.......... 4,222,248 73,185
the following
electronic media types,
unless MMS instructs
you differently:
-----------------------------------------------------
* * * * * Form MMS-4058 (PASR)
-----------------------------------------------------
Electronic* (approximately 98 percent)
-----------------------------------------------------
1 min............... 36,456 608
-----------------------------------------------------
Manual* (approximately 2 percent)
-----------------------------------------------------
3 min............... 744 37
Total PASR.......... 37,200 645
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Subpart D--Special-Purpose Forms and Reports--Oil, Gas, and Geothermal Resources
----------------------------------------------------------------------------------------------------------------
210.155......................... 210.155 What reports Burden covered under OMB Control Number 1010-0090
must I submit for (expires December 31, 2010)
Federal onshore
stripper oil
properties?
-----------------------------------------------------
(a) General. Operators
who have been granted a
reduced royalty rate by
the Bureau of Land
Management (BLM) under
43 CFR 3103.4-2 must
submit Form MMS-4377,
Stripper Royalty Rate
Reduction Notification,
under 43 CFR 3103.4-
2(b)(3).
* * * * *
----------------------------------------------------------------------------------------------------------------
Subtotal for Production Reporting........................................... 4,259,448 73,830
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PART 212--RECORDS AND FILES MAINTENANCE
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Subpart B--Oil, Gas and OCS Sulphur--General
----------------------------------------------------------------------------------------------------------------
212.50.......................... 212.50 Required Burden hours covered under 210.54(a) and (b); and
recordkeeping and 210.104(a) and (b)
reports
-----------------------------------------------------
All records pertaining
to offshore and onshore
Federal and Indian oil
and gas leases shall be
maintained by a lessee,
operator, revenue
payor, or other person
for 6 years after the
records are generated
unless the recordholder
is notified, in
writing, that records
must be maintained for
a longer period * * *
[In accordance with 30
U.S.C. 1724(f), Federal
oil and gas records
must be maintained for
7 years from the date
the obligation became
due.]
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212.51(a) and (b)............... (a) Records. Each Burden hours covered under 210.54(a) and (b); and
lessee, operator, 210.104(a) and (b).
revenue payor, or other
person shall make and
retain accurate and
complete records
necessary to
demonstrate that
payments of rentals,
royalties, net profit
shares, and other
payments related to
offshore and onshore
Federal and Indian oil
and gas leases are in
compliance with lease
terms, regulations, and
orders * * *
-----------------------------------------------------
(b) Period for keeping
records. Lessees,
operators, revenue
payors, or other
persons required to
keep records under this
section shall maintain
and preserve them for 6
years from the day on
which the relevant
transaction recorded
occurred unless the
Secretary notifies the
record holder of an
audit or investigation
involving the records
and that they must be
maintained for a longer
period * * *
[In accordance with 30
U.S.C. 1724(f), Federal
oil and gas records
must be maintained for
7 years from the date
the obligation became
due.]
----------------------------------------------------------------------------------------------------------------
Total for Royalty and Production Reporting.................................. 7,805,760 253,509
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* Note: Each line of data is considered one response/report.
Estimated Annual Reporting and Recordkeeping ``Non-hour'' Cost
Burden: We have identified no ``non-hour'' cost burden associated with
the collection of information.
[[Page 44872]]
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.
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 to be collected; 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 November 13, 2008 (73 FR 67197),
announcing that we would submit this ICR to OMB for approval. The
notice provided the required 60-day comment period. We received no
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. The OMB has up to 60 days to approve or disapprove the
information collection but may respond after 30 days. Therefore, to
ensure maximum consideration, OMB should receive public comments by
September 30, 2009.
Public Comment Policy: We will post all comments in response to
this notice at http://www.mrm.mms.gov/Laws_R_D/FRNotices/
FRInfColl.htm. We also will post all comments, including names and
addresses of respondents, at http://www.regulations.gov. Before
including your address, phone number, e-mail address, or other personal
identifying information in your comment, be advised that your entire
comment--including your personal identifying information--may be made
publicly available at any time. While you can ask us in your comment to
withhold from public view your personal identifying information, we
cannot guarantee that we will be able to do so.
MMS Information Collection Clearance Officer: Arlene Bajusz (202)
208-7744.
Dated: August 11, 2009.
Jennifer L. Goldblatt,
Acting Associate Director for Minerals Revenue Management.
[FR Doc. E9-20905 Filed 8-28-09; 8:45 am]
BILLING CODE 4310-MR-P