[Federal Register Volume 75, Number 69 (Monday, April 12, 2010)]
[Notices]
[Pages 18525-18536]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-8198]
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DEPARTMENT OF THE INTERIOR
Minerals Management Service
[Docket No. MMS-2008-MRM-0031]
Agency Information Collection Activities: Proposed Collection,
Comment Request
AGENCY: Minerals Management Service (MMS), Interior.
ACTION: Notice of an extension of a currently approved information
collection (OMB Control Number 1010-0136).
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SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), we
are inviting comments on a collection of information that we will
submit to the Office of Management and Budget (OMB) for review and
approval. We consolidated this information collection request (ICR) and
ICR 1010-0090, Stripper Royalty Rate Reduction Notification, in order
to allow program-wide review of Federal oil and gas valuation. The new
title of this ICR is ``30 CFR parts 202, 204, 206, and 210, Federal Oil
and Gas Valuation.''
DATES: Submit written comments on or before June 11, 2010.
ADDRESSES: You may submit comments on this ICR by any of the following
methods. Please use ``ICR 1010-0136'' as an identifier in your comment.
Electronically go to http://www.regulations.gov. In the
entry titled ``Enter Keyword or ID,'' enter MMS-2008-MRM-0031, and then
click search. Follow the instructions to submit public comments. The
MMS will post all comments.
Mail comments to Hyla Hurst, Regulatory Specialist,
Minerals Management Service, Minerals Revenue Management, P.O. Box
25165, MS 61013B, Denver, Colorado 80225. Please reference ICR 1010-
0136 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 1010-0136 in your comments.
FOR FURTHER INFORMATION CONTACT: Hyla Hurst, telephone (303) 231-3495,
or e-mail [email protected]. 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 202, 204, 206, and 210, Federal Oil and Gas
Valuation.
OMB Control Number: 1010-0136.
Bureau Form Number: Forms MMS-4377 and MMS-4393.
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.
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 is
required to report various kinds of information to the lessor relative
to the disposition of the leased minerals. Such information is
generally available
[[Page 18526]]
within the records of the lessee or others involved in developing,
transporting, processing, purchasing, or selling of such minerals.
We use the information collected in this ICR to ensure that royalty
is accurately valued and appropriately paid on oil and gas produced
from Federal onshore and offshore leases. Please refer to the
Respondents' Estimated Annual Burden Hours table for all reporting
requirements and associated burden hours. All data submitted is subject
to subsequent audit and adjustment.
Federal Oil and Gas Valuation Regulations
The valuation regulations at 30 CFR part 206, subparts C and D,
mandate that companies collect and/or submit information used to value
their Federal oil and gas, including (1) transportation and processing
allowances; and (2) regulatory allowance limitation information.
Companies report certain data on Form MMS-2014, Report of Sales and
Royalty Remittance (OMB Control Number 1010-0139). The information
requested is the minimum necessary to carry out our mission and places
the least possible burden on respondents. If MMS 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. Lessees who request approval to
exceed the regulatory allowance limits are required to provide
information in order to obtain these benefits.
Request To Exceed Regulatory Allowance Limitation, Form MMS-4393
Lessees may request to exceed regulatory limitations. Upon proper
application from the lessee, we may approve an oil or gas
transportation allowance in excess of 50 percent or a gas processing
allowance in excess of 66\2/3\ percent on Federal leases. Form MMS-4393
is used for both Federal and Indian leases to request to exceed
allowance limitations. This ICR includes only Federal leases; therefore
burden hours for Form MMS-4393 for Indian leases are not included in
this ICR. Burden hours for Form MMS-4393 for Indian leases are included
in OMB Control Number 1010-0103.
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.
The regulations provide guidance for lessees and designees seeking
accounting and auditing relief for qualifying Federal marginal
properties. Under the regulations, both MMS and the state concerned
must approve any relief granted for a marginal property.
Stripper Oil Royalty Rate Reduction Program
Under 43 CFR 3103.4-2, the Stripper Oil Royalty Rate Reduction
Program (Stripper Oil Program) was established by the Bureau of Land
Management (BLM), the surface management agency for Federal onshore
leases. As a benefit under this program, MMS, who administered the
Stripper Oil Program for BLM, approved royalty rate reductions for
operators of stripper oil properties for applicable sales periods from
October 1, 1992, through January 31, 2006. Effective February 1, 2006,
the benefits of reduced royalty rates under this program were
terminated. This change is not currently reflected in the CFR; however,
BLM is processing a final rule to remove this citation from the
regulations.
For production through January 31, 2006, reporters used Form MMS-
4377, Stripper Royalty Rate Reduction Notification, to notify MMS of
royalty rate changes. Although the benefits were terminated, MMS
continues to verify previously submitted notifications and may require
the operator to submit an amended Form MMS-4377.
OMB Approval
We are requesting 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.
For information collections relating to valuation requirements,
responses are mandatory. For the remaining information collections in
this ICR, responses are required to obtain benefits.
Frequency: Annually and on occasion.
Estimated Number and Description of Respondents: 120 Federal
lessees/designees and 7 states for Federal oil and gas valuation; and
150 lessees/lessors for the Stripper Oil Program.
Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 9,378
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
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Average number
30 CFR 202, 204, 206, and 210 Reporting and recordkeeping Hour burden of annual Annual burden
requirement responses hours
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PART 202--ROYALTIES
Subpart C--Federal and Indian Oil
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202.101............................ 202.101 Oil volumes are to Burden covered under OMB Control Number 1010-
be reported in barrels of 0139.
clean oil of 42 standard
U.S. gallons (231 cubic
inches each) at 60 [deg]F.
* * *
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[[Page 18527]]
Subpart D--Federal Gas
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202.152(a) and (b)................. 202.152(a)(1) If you are Burden covered under OMB Control Number 1010-
responsible for reporting 0139.
production or royalties
you must:
(i) Report gas volumes and
British thermal unit (Btu)
heating values, if
applicable, under the same
degree of water
saturation;.
(ii) Report gas volumes in
units of 1,000 cubic feet
(mcf); and.
(iii) Report gas volumes
and Btu heating value at a
standard pressure base of
14.73 pounds per square
inch absolute (psia) and a
standard temperature base
of 60 [deg]F. * * *.
(b) Residue gas and gas
plant product volumes
shall be reported as
specified in this
paragraph. * * *.
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PART 204--ALTERNATIVES FOR MARGINAL PROPERTIES
Subpart C--Accounting and Auditing Relief
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204.202(b)(1)...................... 204.202(b) To use the 40 1 40
cumulative royalty reports
and payments relief
option, you must do all of
the following:
(1) Notify MMS in writing
by January 31 of the
calendar year for which
you begin taking your
relief. * * *.
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204.202(b)(2) and (b)(3)........... 204.202(b)(2) Submit your Burden covered under OMB Control Number 1010-
royalty report and payment 0139.
* * * by the end of
February of the year
following the calendar
year for which you
reported annually. * * *
If you have an estimated
payment on file, you must
submit your royalty report
and payment by the end of
March of the year
following the calendar
year for which you
reported annually;
(3) Use the sales month
prior to the month that
you submit your annual
report and payment * * *
for the entire previous
calendar year's production
for which you are paying
annually. * * *.
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204.202(b)(4), (b)(5), (c), (d)(1), 204.202(b) To use the Burden covered under OMB Control Number 1010-
(d)(2), (e)(1), and (e)(2). cumulative royalty reports 0139.
and payments relief
option, you must * * *
(4) Report one line of
cumulative royalty
information on Form MMS-
2014 for the calendar year
* * * and.
(5) Report allowances on
Form MMS-2014 on the same
annual basis as the
royalties for your
marginal property
production..
(c) If you do not pay your
royalty by the date due in
paragraph (b) of this
section, you will owe late
payment interest * * *
from the date your payment
was due under this section
until the date MMS
receives it. * * *.
(d) If you take relief you
are not qualified for, you
may be liable for civil
penalties. Also you must:
(1) Pay MMS late payment
interest determined under
30 CFR 218.54 * * *.
(2) Amend your Form MMS-
2014 * * *.
(e) If you dispose of your
ownership interest in a
marginal property for
which you have taken
relief * * * you must:.
(1) Report and pay
royalties for the portion
of the calendar year for
which you had an ownership
interest; and.
(2) Make the report and
payment by the end of the
month after you dispose of
the ownership interest in
the marginal property. If
you do not report and pay
timely, you will owe
interest * * * from the
date the payment was due.
* * *.
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204.203(b), 204.205(a) and (b), and 204.203(b) You must request 200 1 200
204.206(a)(3)(i) and (b)(1). approval from MMS * * *
before taking relief under
this option.
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[[Page 18528]]
204.209(b)......................... 204.209(b) If a property is 6 1 6
no longer eligible for
relief * * * the relief
for the property
terminates as of December
31 of that calendar year.
You must notify MMS in
writing by December 31
that the relief for the
property has terminated *
* *.
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204.210(c) and (d)................. 204.210(c) * * * the Burden covered under OMB Control Number 1010-
volumes on which you 0139.
report and pay royalty * *
* must be amended to
reflect all volumes
produced on or allocated
to your lease under the
nonqualifying agreement as
modified by BLM. * * *
Report and pay royalties
for your production using
the procedures in Sec.
204.202(b).
(d) If you owe additional
royalties based on the
retroactive agreement
approval and do not pay
your royalty by the date
due in Sec. 204.202(b),
you will owe late payment
interest determined under
30 CFR 218.54 from the
date your payment was due
under Sec. 204.202(b)(2)
until the date MMS
receives it..
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204.214(b)(1) and (b)(2)........... 204.214(b) If you pay Burden covered under OMB Control Number 1010-
minimum royalty on 0139.
production from a marginal
property during a calendar
year for which you are
taking cumulative royalty
reports and payment
relief, and:
(1) The annual payment you
owe under this subpart is
greater than the minimum
royalty you paid, you must
pay the difference between
the minimum royalty you
paid and your annual
payment due under this
subpart; or.
(2) The annual payment you
owe under this subpart is
less than the minimum
royalty you paid, you are
not entitled to a credit
because you must pay at
least the minimum royalty
amount on your lease each
year..
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Accounting and Auditing Relief Subtotal..................................... 10 526
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PART 206--PRODUCT VALUATION
Subpart C--Federal Oil
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206.102(e)(1)...................... 206.102(e) If you value oil AUDIT PROCESS. See note.
under paragraph (a) of
this section: (1) MMS may
require you to certify
that your or your
affiliate's arm's-length
contract provisions
include all of the
consideration the buyer
must pay, either directly
or indirectly, for the oil.
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206.103(a)(1), (a)(2), and (a)(3).. 206.103 This section 45 5 225
explains how to value oil
that you may not value
under Sec. 206.102 or
that you elect under Sec.
206.102(d) to value under
this section. First
determine whether
paragraph (a), (b), or (c)
of this section applies to
production from your
lease, or whether you may
apply paragraph (d) or (e)
with MMS approval. (a)
Production from leases in
California or Alaska.
Value is the average of
the daily mean ANS spot
prices published in any
MMS-approved publication
during the trading month
most concurrent with the
production month. * * *.
(1) To calculate the daily
mean spot price * * *
(2) Use only the days * * *
(3) You must adjust the
value * * *
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206.103(a)(4)...................... 206.103(a)(4) After you 8 2 16
select an MMS-approved
publication, you may not
select a different
publication more often
than once every 2 years, *
* *.
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206.103(b)(1)...................... 206.103(b) Production from 400 2 800
leases in the Rocky
Mountain Region. * * * (1)
If you have an MMS-
approved tendering
program, you must value
oil * * *.
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[[Page 18529]]
206.103(b)(1)(ii).................. 206.103(b)(1)(ii) If you do 400 2 800
not have an MMS-approved
tendering program, you may
elect to value your oil
under either paragraph
(b)(2) or (b)(3) of this
section. * * *.
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206.103(b)(4)...................... 206.103(b)(4) If you 400 2 800
demonstrate to MMS's
satisfaction that
paragraphs (b)(1) through
(b)(3) of this section
result in an unreasonable
value for your production
as a result of
circumstances regarding
that production, the MMS
Director may establish an
alternative valuation
method.
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206.103(c)(1)...................... 206.103(c) Production from 50 10 500
leases not located in
California, Alaska or the
Rocky Mountain Region. (1)
Value is the NYMEX price,
plus the roll, adjusted
for applicable location
and quality differentials
and transportation costs
under Sec. 206.112.
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206.103(e)(1) and (e)(2)........... 206.103(e) Production 330 2 660
delivered to your refinery
and the NYMEX price or ANS
spot price is an
unreasonable value.
(1) * * * you may apply to
the MMS Director to
establish a value
representing the market at
the refinery if: * * *
(2) You must provide
adequate documentation and
evidence demonstrating the
market value at the
refinery. * * *
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206.105............................ 206.105 If you determine Burden covered under OMB Control Number 1010-
the value of your oil 0139.
under this subpart, you
must retain all data
relevant to the
determination of royalty
value. * * *.
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206.107(a)......................... 206.107(a) You may request 40 10 400
a value determination from
MMS * * *.
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206.109(c)(2)...................... 206.109(c) Limits on 8 2 16
transportation allowances.
(2) You may ask MMS to
approve a transportation
allowance in excess of the
limitation in paragraph
(c)(1) of this section. *
* *.
Your application for
exception (using Form MMS-
4393, Request to Exceed
Regulatory Allowance
Limitation) must contain
all relevant and
supporting documentation
necessary for MMS to make
a determination * * *..
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206.110(a)......................... 206.110(a) * * * You must AUDIT PROCESS. See note.
be able to demonstrate
that your or your
affiliate's contract is at
arm's length. * * *.
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206.110(d)(3)...................... 206.110(d) If your arm's- 20 2 40
length transportation
contract includes more
than one liquid product,
and the transportation
costs attributable to each
product cannot be
determined * * *.
(3) You may propose to MMS
a cost allocation method *
* *.
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206.110(e)......................... 206.110(e) If your arm's- 20 1 20
length transportation
contract includes both
gaseous and liquid
products, and the
transportation costs
attributable to each
product cannot be
determined from the
contract, then you must
propose an allocation
procedure to MMS.
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206.110(e)(1) and (e)(2)........... 206.110(e)(1) * * * If MMS Burden covered under OMB Control Number 1010-
rejects your cost 0139.
allocation, you must amend
your Form MMS-2014 * * *.
(2) You must submit your
initial proposal,
including all available
data, within 3 months
after first claiming the
allocated deductions on
Form MMS-2014..
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[[Page 18530]]
206.110(g)(2)...................... 206.110(g) If your arm's- 5 1 5
length sales contract
includes a provision
reducing the contract
price by a transportation
factor, * * *.
(2) You must obtain MMS
approval before claiming a
transportation factor in
excess of 50 percent of
the base price of the
product..
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206.111(g)......................... 206.111(g) To compute 30 1 30
depreciation, you may
elect to use either * * *.
After you make an
election, you may not
change methods without MMS
approval. * * *.
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206.111(k)(2)...................... 206.111(k)(2) You may 30 1 30
propose to MMS a cost
allocation method on the
basis of the values * * *.
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206.111(l)(1) and (l)(3)........... 206.111(l)(1) Where you 20 1 20
transport both gaseous and
liquid products through
the same transportation
system, you must propose a
cost allocation procedure
to MMS. * * *.
(3) You must submit your
initial proposal,
including all available
data, within 3 months
after first claiming the
allocated deductions on
Form MMS-2014..
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206.111(l)(2)...................... 206.111(l)(2) * * * If MMS Burden covered under OMB Control Number 1010-
rejects your cost 0139.
allocation, you must amend
your Form MMS-2104 for the
months that you used the
rejected method and pay
any additional royalty and
interest due.
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206.112(a)(1)(ii).................. 206.112(a)(1)(ii) * * * 80 1 80
under an exchange
agreement that is not at
arm's length, you must
obtain approval from MMS
for a location and quality
differential * * *
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206.112(a)(1)(ii).................. 206.112(a)(1)(ii) * * * If 20 2 40
MMS prescribes a different
differential, you must
apply * * *. You must pay
any additional royalties
owed * * * plus the late
payment interest from the
original royalty due date,
or you may report a credit
* * *.
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206.112(a)(3) and (a)(4)........... 206.112(a)(3) If you 80 4 320
transport or exchange at
arm's length (or both
transport and exchange) at
least 20 percent, but not
all, of your oil produced
from the lease to a market
center, determine the
adjustment between the
lease and the market
center for the oil that is
not transported or
exchanged (or both
transported and exchanged)
to or through a market
center as follows: * * *.
(4) If you transport or
exchange (or both
transport and exchange)
less than 20 percent of
your crude oil produced
from the lease between the
lease and a market center,
you must propose to MMS an
adjustment between the
lease and the market
center for the portion of
the oil that you do not
transport or exchange (or
both transport and
exchange) to a market
center. * * * If MMS
prescribes a different
adjustment * * *. You must
pay any additional
royalties owed * * * plus
the late payment interest
from the original royalty
due date, or you may
report a credit * * *.
----------------------------------------------------------------------------------------------------------------
206.112(b)(3)...................... 206.112(b)(3) * * * you may 80 4 320
propose an alternative
differential to MMS. * * *
If MMS prescribes a
different differential * *
*. You must pay any
additional royalties owed
* * * plus the late
payment interest from the
original royalty due date,
or you may report a credit
* * *.
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[[Page 18531]]
206.112(c)(2)...................... 206.112(c)(2) * * * If 80 2 160
quality bank adjustments
do not incorporate or
provide for adjustments
for sulfur content, you
may make sulfur
adjustments, based on the
quality of the
representative crude oil
at the market center, of
5.0 cents per one-tenth
percent difference in
sulfur content, unless MMS
approves a higher
adjustment.
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206.114............................ 206.114 You or your Burden covered under OMB Control Number 1010-
affiliate must use a 0139.
separate entry on Form MMS-
2014 to notify MMS of an
allowance based on
transportation costs you
or your affiliate incur.
-----------------------------------------------
MMS may require you or your AUDIT PROCESS. See note.
affiliate to submit arm's-
length transportation
contracts, production
agreements, operating
agreements, and related
documents. * * *
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206.115(a)......................... 206.115(a) You or your Burden covered under OMB Control Number 1010-
affiliate must use a 0139.
separate entry on Form MMS-
2014 to notify MMS of an
allowance based on
transportation costs you
or your affiliate incur.
----------------------------------------------------------------------------------------------------------------
206.115(c)......................... 206.115(c) MMS may require AUDIT PROCESS. See note.
you or your affiliate to
submit all data used to
calculate the allowance
deduction. * * *
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Subpart D--Federal Gas
----------------------------------------------------------------------------------------------------------------
206.152(b)(1)(i) and (b)(1)(iii)... 206.152(b)(1)(i) * * * The AUDIT PROCESS. See note.
lessee shall have the
burden of demonstrating
that its contract is arm's-
length. * * * (iii) * * *
When MMS determines that
the value may be
unreasonable, MMS will
notify the lessee and give
the lessee an opportunity
to provide written
information justifying the
lessee's value.
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206.152(b)(2)...................... 206.152(b)(2) * * * The 80 1 80
lessee must request a
value determination in
accordance with paragraph
(g) of this section for
gas sold pursuant to a
warranty contract; * * *
----------------------------------------------------------------------------------------------------------------
206.152(b)(3)...................... 206.152(b)(3) MMS may AUDIT PROCESS. See note.
require a lessee to
certify that its arm's-
length contract provisions
include all of the
consideration to be paid
by the buyer, either
directly or indirectly,
for the gas.
----------------------------------------------------------------------------------------------------------------
206.152(e)(1)...................... 206.152(e)(1) Where the Burden covered under OMB Control Number 1010-
value is determined 0139.
pursuant to paragraph (c)
of this section, the
lessee shall retain all
data relevant to the
determination of royalty
value. * * *
----------------------------------------------------------------------------------------------------------------
206.152(e)(2)...................... 206.152(e)(2) Any Federal AUDIT PROCESS. See note.
lessee will make available
upon request to the
authorized MMS or State
representatives, to the
Office of the Inspector
General of the department
of the Interior, or other
person authorized to
receive such information,
arm's-length sales and
volume data for like-
quality production sold,
purchased or otherwise
obtained by the lessee
from the field or area or
from nearby fields or
areas.
----------------------------------------------------------------------------------------------------------------
206.152(e)(3)...................... 206.152(e)(3) A lessee 10 10 100
shall notify MMS if it has
determined value pursuant
to paragraph (c)(2) or
(c)(3) of this section. *
* *
----------------------------------------------------------------------------------------------------------------
206.152(g)......................... 206.152(g) The lessee may 40 5 200
request a value
determination from MMS. *
* * The lessee shall
submit all available data
relevant to its proposal.
* * *
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[[Page 18532]]
206.153(b)(1)(i) and (b)(1)(iii)... 206.153(b)(1)(i) * * * The AUDIT PROCESS. See note.
lessee shall have the
burden of demonstrating
that its contract is arm's-
length. * * *
(iii) * * * When MMS
determines that the value
may be unreasonable, MMS
will notify the lessee and
give the lessee an
opportunity to provide
written information
justifying the lessee's
value..
----------------------------------------------------------------------------------------------------------------
206.153(b)(2)...................... 206.153(b)(2) * * * The 80 1 80
lessee must request a
value determination in
accordance with paragraph
(g) of this section for
gas sold pursuant to a
warranty contract; * * *
----------------------------------------------------------------------------------------------------------------
206.153(b)(3)...................... 206.153(b)(3) MMS may AUDIT PROCESS. See note.
require a lessee to
certify that its arm's-
length contract provisions
include all of the
consideration to be paid
by the buyer, either
directly or indirectly,
for the residue gas or gas
plant product.
----------------------------------------------------------------------------------------------------------------
206.153(e)(1)...................... 206.153(e)(1) Where the Burden covered under OMB Control Number 1010-
value is determined 0139.
pursuant to paragraph (c)
of this section, the
lessee shall retain all
data relevant to the
determination of royalty
value. * * *.
----------------------------------------------------------------------------------------------------------------
206.153(e)(2)...................... 206.153(e)(2) Any Federal AUDIT PROCESS. See note.
lessee will make available
upon request to the
authorized MMS or State
representatives, to the
Office of the Inspector
General of the Department
of the Interior, or other
persons authorized to
receive such information,
arm's-length sales and
volume data for like-
quality residue gas and
gas plant products sold,
purchased or otherwise
obtained by the lessee
from the same processing
plant or from nearby
processing plants.
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206.153(e)(3)...................... 206.153(e)(2) A lessee 10 2 20
shall notify MMS if it has
determined any value
pursuant to paragraph
(c)(2) or (c)(3) of this
section. * * *
----------------------------------------------------------------------------------------------------------------
206.153(g)......................... 206.153(g) The lessee may 80 15 1,200
request a value
determination from MMS. *
* * The lessee shall
submit all available data
relevant to its proposal.
* * *
----------------------------------------------------------------------------------------------------------------
206.154(c)(4)...................... 206.154(c)(4) * * * A 40 1 40
lessee may request MMS
approval of other methods
for determining the
quantity of residue gas
and gas plant products
allocable to each lease. *
* *
----------------------------------------------------------------------------------------------------------------
206.156(c)(3)...................... 206.156(c)(3) Upon request 40 3 120
of a lessee, MMS may
approve a transportation
allowance deduction in
excess of the limitation
prescribed by paragraphs
(c)(1) and (c)(2) of this
section. * * * An
application for exception
(using Form MMS-4393,
Request to Exceed
Regulatory Allowance
Limitation) must contain
all relevant and
supporting documentation
necessary for MMS to make
a determination. * * *
----------------------------------------------------------------------------------------------------------------
206.157(a)(1)(i)................... 206.157(a) Arm's-length AUDIT PROCESS. See note.
transportation contracts.
(1)(i) * * * The lessee
shall have the burden of
demonstrating that its
contract is arm's-length.
* * *
-----------------------------------------------
The lessee must claim a Burden covered under OMB Control Number 1010-
transportation allowance 0139.
by reporting it on a
separate line entry on the
Form MMS-2014.
----------------------------------------------------------------------------------------------------------------
206.157(a)(1)(iii)................. 206.157(a)(1)(iii) * * * AUDIT PROCESS. See note.
When MMS determines that
the value of the
transportation may be
unreasonable, MMS will
notify the lessee and give
the lessee an opportunity
to provide written
information justifying the
lessee's transportation
costs.
----------------------------------------------------------------------------------------------------------------
[[Page 18533]]
206.157(a)(2)(ii).................. 206.157(a)(2)(ii) * * * the 40 1 40
lessee may propose to MMS
a cost allocation method
on the basis of the values
of the products
transported. * * *
----------------------------------------------------------------------------------------------------------------
206.157(a)(3)...................... 206.157(a)(3) If an arm's- 40 1 40
length transportation
contract includes both
gaseous and liquid
products and the
transportation costs
attributable to each
cannot be determined from
the contract, the lessee
shall propose an
allocation procedure to
MMS. * * * The lessee
shall submit all relevant
data to support its
proposal. * * *
----------------------------------------------------------------------------------------------------------------
206.157(a)(5)...................... 206.157(a)(5) * * * The 10 3 30
transportation factor may
not exceed 50 percent of
the base price of the
product without MMS
approval.
----------------------------------------------------------------------------------------------------------------
206.157(b)(1)...................... 206.157(b) Non-arm's-length Burden covered under OMB Control Number 1010-
or no contract. (1) The 0139.
lessee must claim a
transportation allowance
by reporting it on a
separate line entry on the
Form MMS-2014. * * *
----------------------------------------------------------------------------------------------------------------
206.157(b)(2)(iv) and (b)(2)(iv) 206.157(b)(2)(iv) * * * 100 1 100
(A). After a lessee has elected
to use either method for a
transportation system, the
lessee may not later elect
to change to the other
alternative without
approval of the MMS.
(A) * * * After an election
is made, the lessee may
not change methods without
MMS approval. * * *
----------------------------------------------------------------------------------------------------------------
206.157(b)(3)(i)................... 206.157(b)(3)(i) * * * 100 1 100
Except as provided in this
paragraph, the lessee may
not take an allowance for
transporting a product
which is not royalty
bearing without MMS
approval.
----------------------------------------------------------------------------------------------------------------
206.157(b)(3)(ii).................. 206.157(b)(3)(ii) * * * the 100 1 100
lessee may propose to the
MMS a cost allocation
method on the basis of the
values of the products
transported. * * *
----------------------------------------------------------------------------------------------------------------
206.157(b)(4)...................... 206.157(b)(4) Where both 100 1 100
gaseous and liquid
products are transported
through the same
transportation system, the
lessee shall propose a
cost allocation procedure
to MMS. * * * The lessee
shall submit all relevant
data to support its
proposal. * * *
----------------------------------------------------------------------------------------------------------------
206.157(b)(5)...................... 206.157(b)(5) You may apply 100 1 100
for an exception from the
requirement to compute
actual costs under
paragraphs (b)(1) through
(b)(4) of this section.
----------------------------------------------------------------------------------------------------------------
206.157(c)(1)(i)................... 206.157(c) Reporting Burden covered under OMB Control Number 1010-
Requirements. (1) Arm's- 0139.
length contracts. (i) You
must use a separate entry
on Form MMS-2014 to notify
MMS of a transportation
allowance.
----------------------------------------------------------------------------------------------------------------
206.157(c)(1)(ii).................. 206.157(c)(1)(ii) The MMS AUDIT PROCESS. See note.
may require you to submit
arm's-length
transportation contracts,
production agreements,
operating agreements, and
related documents. * * *
----------------------------------------------------------------------------------------------------------------
206.157(c)(2)(i)................... 206.157(c)(2) Non-arm's- Burden covered under OMB Control Number 1010-
length or no contract. (i) 0139.
You must use a separate
entry on Form MMS-2014 to
notify MMS of a
transportation allowance.
-----------------------------------------------
206.157(c)(2)(iii)................. 206.157(c)(2)(iii) The MMS AUDIT PROCESS. See note.
may require you to submit
all data used to calculate
the allowance deduction. *
* *
----------------------------------------------------------------------------------------------------------------
[[Page 18534]]
206.157(e)(2), (e)(3), and (f)(1).. 206.157(e) Adjustments. (2) Burden covered under OMB Control Number 1010-
For lessees transporting 0139.
production from onshore
Federal leases, the lessee
must submit a corrected
Form MMS-2014 to reflect
actual costs, together
with any payment, in
accordance with
instructions provided by
MMS.
(3) For lessees
transporting gas
production from leases on
the OCS, if the lessee's
estimated transportation
allowance exceeds the
allowance based on actual
costs, the lessee must
submit a corrected Form
MMS-2014 to reflect actual
costs, together with its
payments, in accordance
with instructions provided
by MMS. * * *.
(f) Allowable costs in
determining transportation
allowances. * * * (1) Firm
demand charges paid to
pipelines. * * * if you
receive a payment or
credit from the pipeline
for penalty refunds, rate
case refunds, or other
reasons, you must reduce
the firm demand charge
claimed on the Form MMS-
2014 by the amount of that
payment. You must modify
Form MMS-2014 by the
amount received or
credited for the affected
reporting period and pay
any resulting royalty and
late payment interest due;.
----------------------------------------------------------------------------------------------------------------
206.158(c)(3)...................... 206.158(c)(3) Upon request 80 8 640
of a lessee, MMS may
approve a processing
allowance in excess of the
limitation prescribed by
paragraph (c)(2) of this
section. * * * An
application for exception
(using Form MMS-4393,
Request to Exceed
Regulatory Allowance
Limitation) shall contain
all relevant and
supporting documentation
for MMS to make a
determination. * * *
----------------------------------------------------------------------------------------------------------------
206.158(d)(2)(i)................... 206.158(d)(2)(i) If the 80 1 80
lessee incurs
extraordinary costs for
processing gas production
from a gas production
operation, it may apply to
MMS for an allowance for
those costs * * *.
----------------------------------------------------------------------------------------------------------------
206.158(d)(2)(ii).................. 206.158(d)(2)(ii) * * * to Burden covered under OMB Control Number 1010-
retain the authority to 0139.
deduct the allowance the
lessee must report the
deduction to MMS in a form
and manner prescribed by
MMS.
----------------------------------------------------------------------------------------------------------------
206.159(a)(1)(i)................... 206.159(a) Arm's-length AUDIT PROCESS. See note.
processing contracts.
(1)(i) * * * The lessee
shall have the burden of
demonstrating that its
contract is arm's-length.
* * *
-----------------------------------------------
The lessee must claim a Burden covered under OMB Control Number 1010-
processing allowance by 0139.
reporting it on a separate
line entry on the Form MMS-
2014.
----------------------------------------------------------------------------------------------------------------
206.159(a)(1)(iii)................. 206.159(a)(1)(iii) * * * AUDIT PROCESS. See note.
When MMS determines that
the value of the
processing may be
unreasonable, MMS will
notify the lessee and give
the lessee an opportunity
to provide written
information justifying the
lessee's processing costs.
----------------------------------------------------------------------------------------------------------------
206.159(a)(3)...................... 206.159(a)(3) If an arm's- 20 1 20
length processing contract
includes more than one gas
plant product and the
processing costs
attributable to each
product cannot be
determined from the
contract, the lessee shall
propose an allocation
procedure to MMS. * * *
The lessee shall submit
all relevant data to
support its proposal. * *
*
----------------------------------------------------------------------------------------------------------------
206.159(b)(1)...................... 206.159(b) Non-arm's-length Burden covered under OMB Control Number 1010-
or no contract. 0139.
(1)* * * The lessee must
claim a processing
allowance by reflecting it
as a separate line entry
on the Form MMS-2014. * *
*.
----------------------------------------------------------------------------------------------------------------
[[Page 18535]]
206.159(b)(2)(iv) and (b)(2)(iv) 206.159(b)(2)(iv) * * * 100 1 100
(A). When a lessee has elected
to use either method for a
processing plant, the
lessee may not later elect
to change to the
alternative without
approval of the MMS.
(A) * * * After an election
is made, the lessee may
not change methods without
MMS approval * * *..
----------------------------------------------------------------------------------------------------------------
206.159(b)(4)...................... 206.159(b)(4) A lessee may 100 1 100
apply to MMS for an
exception from the
requirements that it
compute actual costs in
accordance with paragraphs
(b)(1) through (b)(3) of
this section. * * *
----------------------------------------------------------------------------------------------------------------
206.159(c)(1)(i)................... 206.159(c) Reporting Burden covered under OMB Control Number 1010-
requirements--(1) Arm's- 0139.
length contracts. (i) The
lessee must notify MMS of
an allowance based on
incurred costs by using a
separate line entry on the
Form MMS-2014.
----------------------------------------------------------------------------------------------------------------
206.159(c)(1)(ii).................. 206.159(c)(1)(ii) The MMS AUDIT PROCESS. See note.
may require that a lessee
submit arm's-length
processing contracts and
related documents. * * *
----------------------------------------------------------------------------------------------------------------
206.159(c)(2)(i)................... 206.159(c)(2) Non-arm's- Burden covered under OMB Control Number 1010-
length or no contract. (i) 0139.
The lessee must notify MMS
of an allowance based on
incurred costs by using a
separate line entry on the
Form MMS-2014.
----------------------------------------------------------------------------------------------------------------
206.159(c)(2)(iii)................. 206.159(c)(2)(iii) Upon AUDIT PROCESS. See note.
request by MMS, the lessee
shall submit all data used
to prepare the allowance
deduction. * * *
----------------------------------------------------------------------------------------------------------------
206.159(e)(2) and (e)(3)........... 206.159(e) Adjustments..... Burden covered under OMB Control Number 1010-
(2) For lessees processing 0139.
production from onshore
Federal leases, the lessee
must submit a corrected
Form MMS-2014 to reflect
actual costs, together
with any payment, in
accordance with
instructions provided by
MMS..
(3) For lessees processing
gas production from leases
on the OCS, if the
lessee's estimated
processing allowance
exceeds the allowance
based on actual costs, the
lessee must submit a
corrected Form MMS-2014 to
reflect actual costs,
together with its payment,
in accordance with
instructions provided by
MMS * * *..
----------------------------------------------------------------------------------------------------------------
Oil and Gas Valuation Subtotal.............................................. 117 8,672
----------------------------------------------------------------------------------------------------------------
PART 210--FORMS AND REPORTS
Subpart D--Special-Purpose Forms and Reports--Oil, Gas, and Geothermal
----------------------------------------------------------------------------------------------------------------
210.155(a)......................... 210.155(a) General. 1.2 150 180
Operators who have been
granted a reduced royalty
rate by the Bureau of Land
Management (BLM) * * *
must submit Form MMS-4377,
Stripper Royalty Rate
Reduction Notification,
under 43 CFR * * *.
NOTE: BLM terminated the
benefits of this program
and is processing a final
rule to remove this
program from the
regulations.
----------------------------------------------------------------------------------------------------------------
Total....................................................................... 277 9,378
----------------------------------------------------------------------------------------------------------------
Note: Audit Process--The Office of Regulatory Affairs determined that the audit process is exempt from the
Paperwork Reduction Act of 1995 because MMS staff asks non-standard questions to resolve exceptions.
Estimated Annual Reporting and Recordkeeping ``Non-Hour Cost''
Burden: We have identified no ``non-Hour cost'' burden associated with
the 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.
Comments: Before submitting an ICR to OMB, PRA Section
3506(c)(2)(A) requires each agency to ``* * * provide 60-day notice in
the Federal Register
[[Page 18536]]
* * * 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.
The PRA also requires agencies to estimate the total annual
reporting ``non-hour cost'' burden to respondents or recordkeepers
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 you use to estimate major cost factors, including
system and technology acquisition, expected useful life of capital
equipment, discount rate(s), and the period over which you incur costs.
Capital and startup costs include, among other items, computers and
software 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
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.mrm.mms.gov/Laws_R_D/FRNotices/FRInfColl.htm.
Public Comment Policy: We 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: April 6, 2010.
Gregory J. Gould,
Associate Director for Minerals Revenue Management.
[FR Doc. 2010-8198 Filed 4-9-10; 8:45 am]
BILLING CODE 4310-MR-P