[Federal Register Volume 76, Number 86 (Wednesday, May 4, 2011)]
[Notices]
[Pages 25367-25370]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-10905]
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DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue
[Docket No. ONRR-2011-0008]
Agency Information Collection Activities: Proposed Collection,
Comment Request
AGENCY: Office of Natural Resources Revenue (ONRR), Interior.
ACTION: Notice of an extension of a currently approved information
collection (OMB Control Number 1012-0006).
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SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), the
Office of Natural Resources Revenue (ONRR) is inviting comments on the
renewal of a collection of information that we will submit to the
Office of Management and Budget (OMB) for review and approval. This
information collection request (ICR) was formerly approved under OMB
Control Number 1010-0122. However, OMB approved a new series number and
renumbered our ICRs after the Secretary of the Interior established
ONRR (the former Minerals Revenue Management, a program under the
Minerals Management Service) by Secretarial Order 3299, which was
effective October 1, 2010. Also ONRR published a rule, effective
October 1, 2010, transferring our regulations from chapter II to
chapter XII in title 30 of the Code of Federal Regulations (CFR). This
ICR covers the paperwork requirements in the regulations under 30 CFR
part 1243 (previously 30 CFR part 243).
DATES: Submit written comments on or before July 5, 2011.
ADDRESSES: You may submit comments on this ICR by any of the following
methods. Please use ``ICR 1012-0006'' as an identifier in your comment.
Electronically go to http://www.regulations.gov. In the
entry titled ``Enter Keyword or ID,'' enter ONRR-2011-0008 and then
click search. Follow the instructions to submit public comments. The
ONRR will post all comments.
Mail comments to Hyla Hurst, Regulatory Specialist, Office
of Natural Resources Revenue, P.O. Box 25165, MS 61013C, Denver,
Colorado 80225. Please reference ICR 1012-0006 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 1012-0006 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 Part 1243--Suspensions Pending Appeal and Bonding--
Office of Natural Resources Revenue.
OMB Control Number: 1012-0006.
Bureau Form Numbers: Forms ONRR-4435, ONRR-4436, and ONRR-4437.
Note: These forms are still listed as Forms MMS-4435, MMS-4436,
and MMS-4437 in the regulations. As ONRR completes the transition to
the new organization, we will publish a rule updating our form
numbers in the CFR.
Abstract: The Secretary 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. The
Secretary also has a trust responsibility to manage Indian lands and
seek advice and information from Indian beneficiaries. The 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. Public laws pertaining to mineral
revenues are on our Web site at http://www.onrr.gov/Laws_R_D/PublicLawsAMR.htm.
If ONRR determines that a lessee has not properly reported or paid,
we may issue an order to pay additional royalties, a Notice of
Noncompliance, or a Civil Penalty Notice requiring correct reporting or
payment. Lessees then have a right to appeal those ONRR actions.
Regulations at 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
[[Page 25368]]
leases, under 30 U.S.C. 1724(l) and its implementing regulations in 30
CFR part 1243, appellants who are 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 or 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 in
accordance with 30 CFR part 1290. Pending appeal, ONRR suspends the
payment requirement if the appellant submits a formal agreement of
payment in case of default, such as a bond or other surety, or, for
Federal oil and gas leases, demonstrates 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) and
1241.63(b)(2), the lessee or other recipient must post a bond or other
surety, or, for Federal oil and gas leases, demonstrate financial
solvency.
The ONRR accepts the following surety types: Form ONRR-4435,
Administrative Appeal Bond (formerly Form MMS-4435); Form ONRR-4436,
Letter of Credit (formerly Form MMS-4436); Form ONRR-4437, Assignment
of Certificate of Deposit (formerly Form MMS-4437); Self-bonding; and
U.S. Treasury Securities.
When one of the surety types is selected and put in place,
appellants must maintain the surety until completion of the appeal. If
the appeal is decided in favor of the appellant, ONRR returns the
surety to the appellant. If the appeal is decided in favor of ONRR,
then we will take action to collect the total amount due or draw down
on the surety. We draw down on a surety if the appellant fails to
comply with requirements relating to amount due, timeframe, or surety
submission or resubmission. Whenever ONRR must draw down on a surety,
we must draw down the total amount due, which is defined as unpaid
principal plus the interest accrued to the projected receipt date of
the surety payment. Appellants may refer to the Surety Instrument
Posting Instructions, which are on our Web site at http://www.onrr.gov/FM/Forms/default.htm.
Forms and Other Surety Types
Form ONRR-4435, Administrative Appeal Bond
Appellants 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
process. Under 30 CFR 1243.4, appellants are required to submit their
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 is approved by the U.S.
Department of the Treasury (see Department of the Treasury Circular No.
570, revised periodically in the Federal Register). The Director for
ONRR or the delegated bond-approving officer maintains these bonds in a
secure facility. After the appeal has concluded, 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. We will also include all interest accrued on the affected
bill.
Form ONRR-4436, Letter of Credit
Appellants may choose to file Form ONRR-4436, Letter of Credit,
with no modifications. Requirements at 30 CFR 1243.4 continue to apply.
The Director or the delegated 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
has been concluded, we may release and return the LOC to the appellant
or collect payment on the LOC. If collection is necessary for a
remaining balance, we will issue a demand for payment, which includes
all interest assessed on the affected bill, to the bank with a notice
to the appellant.
Form ONRR-4437, Assignment of Certificate of Deposit
Appellants may choose to secure a debt by requesting to use a
Certificate of Deposit (CD) from their bank and submitting Form ONRR-
4437, Assignment of Certificate of Deposit. Requirements at 30 CFR
1243.4 continue to apply. Appellants must file the request with ONRR
prior to the invoice due date. We will accept a book-entry CD that
explicitly assigns the CD to the Director. If collection of the CD is
necessary for an unpaid balance, we will return unused CD funds to the
appellant after total settlement of the appealed issues, including
applicable interest charges.
Self-bonding
For Federal oil and gas leases, regulations at 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. Appellants 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, we also require copies of the most recent tax
returns (up to 3 years) filed by appellants.
In addition, appellants must annually submit financial statements,
subject to annual audit, to support their net worth. The 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 appellants do not have a
consolidated balance sheet documenting their net worth or if they do
not meet the $300 million net worth requirement, ONRR selects a
business information or credit reporting service to provide information
concerning an appellant's financial solvency. The ONRR charges the
appellant a $50 fee each time we need to review data from a business
information or credit reporting service. The fee covers our costs in
determining an appellant's financial solvency.
U.S. Treasury Securities
Appellants may choose to secure their debts by requesting to use a
U.S. Treasury Security (TS). Appellants 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 1 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). The ONRR accepts only a book-entry TS.
Request to OMB
We are requesting OMB's approval to continue to collect this
information. Not collecting this information would limit the
Secretary's ability to discharge fiduciary duties and also may result
in loss of royalty and other payments.
[[Page 25369]]
Proprietary information submitted to ONRR under this collection is
protected, and no items of a sensitive nature are collected. A response
is mandatory in order to suspend compliance with an order pending
appeal.
Frequency: Annually and on occasion.
Estimated Number and Description of Respondents: 105 Federal or
Indian appellants.
Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 105
hours.
The following chart shows the estimated annual burden hours by CFR
section and paragraph. We have not included in our estimates certain
requirements performed in the normal course of business and considered
usual and customary.
Respondents' Estimated Annual Burden Hours
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Average number
Citation 30 CFR part 1243 Reporting and recordkeeping Hour burden of annual Annual burden
requirement responses hours
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1243.4(a)(1)................. How do I suspend compliance 1 hour........ 40 (surety 40
with an order?. instruments:
(a) If you timely appeal an Forms ONRR-
order, and if that order or 4435, ONRR-
portion of that order: (1) 4436, ONRR-
Requires you to make a 4437, or TS).
payment, and you want to
suspend compliance with that
order, you must post a bond or
other surety instrument or
demonstrate financial solvency
* * *.
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1243.6....................... When must I or another person Burden hours covered under Sec. 1243.4(a)(1).
meet the bonding or financial
solvency requirements under
this part?
If you must meet the bonding or
financial solvency
requirements under Sec.
1243.4(a)(1), or if another
person is meeting your bonding
or financial solvency
requirements, then either you
or the other person must post
a bond or other surety
instrument or demonstrate
financial solvency within 60
days after you receive the
order or the Notice of Order.
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1243.7(a).................... What must a person do when Burden hours covered under Sec. 1243.4(a)(1).
posting a bond or other surety
instrument or demonstrating
financial solvency on behalf
of an appellant?
If you assume an appellant's
responsibility to post a bond
or other surety instrument or
demonstrate financial solvency
* * * (a) Must notify ONRR in
writing * * * that you are
assuming the appellant's
responsibility * * *.
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1243.8(a)(2) and (b)(2)...... When will ONRR suspend my Burden hours covered under Sec. 1243.4(a)(1).
obligation to comply with an
order?
(a) Federal leases. * * * (2)
If the amount under appeal is
$10,000 or more, ONRR will
suspend your obligation to
comply with that order if you:.
(i) Submit an ONRR-specified
surety instrument under
subpart B of this part within
a time period ONRR prescribes;
or.
(ii) Demonstrate financial
solvency under subpart C.
(b) Indian leases. * * * (2) If
the amount under appeal is
$1,000 or more, ONRR will
suspend your obligation to
comply with that order if you
submit an ONRR-specified
surety instrument under
subpart B of this part within
a time period ONRR prescribes.
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1243.101(b).................. How will ONRR determine the Burden hours covered under Sec. 1243.4(a)(1).
amount of my bond or other
surety instrument?
* * * (b) If your appeal is not
decided within 1 year from the
filing date, you must increase
the surety amount to cover
additional estimated interest
for another 1-year period. You
must continue to do this
annually * * *.
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1243.200(a) and (b).......... How do I demonstrate financial 1 hour........ 65 self-bonding 65
solvency? submissions.
(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 audited
consolidated 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. * * *.
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1243.201(c)(1), (c)(2)(i) and How will ONRR determine if I am Burden hours covered under Sec. Sec.
(c)(2)(ii) and (d)(2). financially solvent? 1243.4(a)(1) and 1243.200(a) and (b).
* * * (c) If your net worth,
minus the amount we would
require as surety under
subpart B for all orders you
have appealed is less than
$300 million, you must submit
* * *:.
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[[Page 25370]]
(1) A written request asking us
to consult a business-
information, or credit-
reporting service or program
to determine your financial
solvency; and
(2) A nonrefundable $50
processing fee:
(i) You must pay the processing
fee * * *;
(ii) You must submit the fee
with your request * * * and
then annually on the date we
first determined that you
demonstrated financial
solvency, as long as you are
not able to demonstrate
financial solvency * * * and
you have active appeals.
(d)* * * (2) For us to consider
you financially solvent, the
business-information or credit-
reporting service or program
must demonstrate your degree
of risk as low to moderate: *
* *
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1243.202(c).................. When will ONRR monitor my Burden hours covered under Sec. 1243.4(a)(1).
financial solvency?
* * * (c) If our bond-approving
officer determines that you
are no longer financially
solvent, you must post a bond
or other ONRR-specified surety
instrument under subpart B.
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Total Burden.............................................. .............. 105............. 105
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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.
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 * * * 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 on our
Web site at http://www.onrr.gov/Laws_R_D/FRNotices/ICR0122.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.
Information Collection Clearance Officer: Rachel Drucker (202) 208-
3568.
Dated: April 29, 2011.
Gregory J. Gould,
Director, Office of Natural Resources Revenue.
[FR Doc. 2011-10905 Filed 5-3-11; 8:45 am]
BILLING CODE 4310-MR-P