[Federal Register Volume 76, Number 86 (Wednesday, May 4, 2011)]
[Notices]
[Pages 25370-25373]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-10906]
-----------------------------------------------------------------------
DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue
[Docket No. ONRR-2011-0009]
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 1012-0008).
-----------------------------------------------------------------------
SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), the
Office of Natural Resources Revenue (ONRR) is inviting comments on 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
1010-0107.
[[Page 25371]]
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 1218 (previously 30 CFR part 218).
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 1012-0008'' as an identifier in your comment.
Electronically go to http://www.regulations.gov. In the
entry titled ``Enter Keyword or ID,'' enter ONRR-2011-0009, 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 61013B, Denver,
Colorado 80225. Please reference ICR 1012-0008 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 1012-0008 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 1218, Collection of Monies Due the Federal
Government.
OMB Control Number: 1012-0008.
Bureau Form Number: Form ONRR-4425.
Note: This form is still listed as Form MMS-4425 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 mineral 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.
Minerals produced from Federal and Indian leases vary greatly in
the nature of occurrence, production, and processing methods. 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 within the records of the lessee or others involved in
developing, transporting, processing, purchasing, or selling such
minerals. The information collected includes data necessary to ensure
that production is accurately valued and royalties are appropriately
paid.
This ICR covers unique reporting circumstances including (1) cross-
lease netting in calculation of late-payment interest; (2) designation
of designee; and (3) and Tribal permission for recoupment on Indian oil
and gas leases.
Cross-Lease Netting in Calculation of Late-Payment Interest
Regulations at Sec. 1218.54 require ONRR to assess interest on
unpaid or underpaid amounts. The ONRR distributes these interest
revenues to states, Indian Tribes, and the U.S. Treasury, based on
financial lease distribution information. Current regulations at Sec.
1218.42 provide that an overpayment on a lease or leases may be offset
against an underpayment on a different lease or leases to determine the
net payment subject to interest, when certain conditions are met. This
is called cross-lease netting. However, sections 6(a), (b), and (c) of
the Royalty Simplification and Fairness Act (RSFA) require ONRR to pay
interest on lessees' Federal oil and gas overpayments made on or after
February 13, 1997 (6 months after the August 13, 1996, enactment of
RSFA). The ONRR implemented this RSFA provision in 1997 and began
calculating interest on both underpayments and overpayments for Federal
oil and gas leases, making the cross-lease netting provisions at Sec.
1218.42 no longer applicable for these leases. The ONRR estimates that,
in about seven cases per year, lessees must comply with the provisions
of Sec. 1218.42(b) and (c) for Indian Tribal leases or Federal leases
other than oil and gas, demonstrating that cross-lease netting is
correct by submitting production reports, pipeline allocation reports,
or other similar documentary evidence. This information is necessary
for ONRR to determine the correct amount of interest owed by the lessee
and to ensure that proper value is collected.
Designation of Designee
The RSFA established that lessees (owners, primarily, of operating
rights, or secondarily, lease record title) are responsible for making
royalty and related payments on Federal oil and gas leases. These RSFA
requirements are codified at Sec. 1218.52. It is common, however, for
a payor rather than a lessee to make these payments. When a payor makes
payments on behalf of a lessee, RSFA section 6(g) requires that the
lessee designate the payor as its designee and notify ONRR of this
arrangement in writing. Form ONRR-4425, Designation Form for Royalty
Payment Responsibility (formerly Form MMS-4425), was designed to
request all the information necessary for lessees to comply with these
RSFA requirements when they choose to designate an agent to pay for
them.
Tribal Permission for Recoupment on Indian Oil and Gas Leases
Regulations at Sec. 1218.53(b) allow lessees with written
permission from the Tribe to recoup overpayments on one lease against a
different lease for which the Tribe is the lessor. The payor must
provide ONRR with a copy of the Tribe's written permission. Generally,
a payor may recoup an overpayment against the current month's royalties
or other revenues owed on the same Tribal lease. For any month, a payor
may not recoup more than 50 percent of the royalties or other revenues
owed in that month, under an individual allotted lease, or more than
100 percent of the royalties or other revenues owed in that month,
under a Tribal lease. Lessees report oil and gas lease recoupments on
Form MMS-2014, Report of Sales and Royalty Remittance (which will be
renumbered as Form ONRR-2014, as we complete the process of updating
our forms and the regulations). The burden
[[Page 25372]]
hours are covered under ICR 1012-0004, formerly ICR 1010-0139.
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 the duties of the office and may also
result in loss of royalty payments. Proprietary information submitted
is protected, and there are no questions of a sensitive nature included
in this information collection.
Frequency: On occasion.
Estimated Number and Description of Respondents: 1,630 Federal and
Indian lessees.
Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 1,255
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
----------------------------------------------------------------------------------------------------------------
Average
Reporting and recordkeeping number of Annual burden
Citation 30 CFR part 1218 requirement Hour burden annual hours
responses
----------------------------------------------------------------------------------------------------------------
Subpart A--General Provisions--Cross-lease netting in calculation of late-payment interest
----------------------------------------------------------------------------------------------------------------
1218.42(b) and (c)................. Cross-lease netting in 2 25 50
calculation of late-
payment interest. (b)
Royalties attributed to
production from a lease or
leases which should have
been attributed to
production from a
different lease or leases
may be offset * * * if * *
* the payor submits
production reports,
pipeline allocation
reports, or other similar
documentary evidence
pertaining to the specific
production involved which
verifies the correct
production information * *
*.
(c) If ONRR assesses late- .............. .............. ..............
payment interest and the
payor asserts that some or
all of the interest is not
owed * * * the burden is
on the payor to
demonstrate that the
exception applies * * *.
----------------------------------------------------------------------------------------------------------------
Subpart B--Oil and Gas, General--How does a lessee designate a Designee?
----------------------------------------------------------------------------------------------------------------
1218.52 (a), (c), and (d).......... How does a lessee designate 0.72 1,600 1,200
a Designee? (a) If you are
a lessee under 30 U.S.C.
1701(7), and you want to
designate a person to make
all or part of the
payments due under a lease
on your behalf * * * you
must notify ONRR * * * in
writing of such
designation * * *.
(c) If you want to .............. .............. ..............
terminate a designation *
* * you must provide [the
following] to ONRR in
writing * * *.
(d) ONRR may require you to .............. .............. ..............
provide notice when there
is a change in the
percentage of your record
title or operating rights
ownership.
The ONRR currently uses .............. .............. ..............
Form MMS-4425, Designation
Form for Royalty Payment
Responsibility, to collect
this information.
----------------------------------------------------------------------------------------------------------------
Subpart B--Oil and Gas, General--Recoupment of overpayments on Indian mineral leases
----------------------------------------------------------------------------------------------------------------
1218.53(b)......................... Recoupment of overpayments 1 5 5
on Indian mineral leases.
(b) With written
permission authorized by
Tribal statute or
resolution, a payor may
recoup an overpayment
against royalties or other
revenues owed . . . under
other leases * * *. A copy
of the Tribe's written
permission must be
furnished to ONRR * * *.
-----------------------------------------------
Total Burden................... ........................... .............. 1,630 1,255
----------------------------------------------------------------------------------------------------------------
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 * * * and otherwise consult with members of the
public and affected agencies concerning each proposed collection of
information * * *.'' Agencies must specifically solicit
[[Page 25373]]
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/ICR0107.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 28, 2011.
Gregory J. Gould,
Director, Office of Natural Resources Revenue.
[FR Doc. 2011-10906 Filed 5-3-11; 8:45 am]
BILLING CODE 4310-MR-P