[Federal Register Volume 76, Number 58 (Friday, March 25, 2011)]
[Notices]
[Pages 16816-16818]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-7140]
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DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue
[Docket No. ONRR-2011-0006]
Agency Information Collection Activities: Proposed Collection,
Comment Request
AGENCY: Office of Natural Resources Revenue (ONRR), Interior.
ACTION: Notice of a revision of a currently approved information
collection (OMB Control Number 1012-0009, formerly 1010-0073).
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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. This information collection request (ICR) was formerly
approved under OMB Control Number 1010-0073. After the Secretary of the
Interior established ONRR (the former Minerals Revenue Management, a
program under the Minerals Management Service) on October 1, 2010, OMB
approved a new series number for ONRR and renumbered our ICRs. Also,
effective October 1, 2010, ONRR reorganized and transferred their
regulations from chapter II to chapter XII in title 30 of the Code of
Federal Regulations (CFR), resulting in a change in our citations. This
ICR covers the paperwork requirements in the regulations under 30 CFR
part 1220 (previously 30 CFR part 220). The revised title of this
information collection request (ICR) is ``30 CFR Part 1220, OCS Net
Profit Share Payment Reporting.'' There are no forms associated with
this information collection.
DATES: Submit written comments on or before May 24, 2011.
ADDRESSES: You may submit comments on this ICR to ONRR by any of the
following methods. Please use ``ICR 1012-0009'' as an identifier in
your comment.
Electronically go to http://www.regulations.gov. In the
entry titled ``Enter Keyword or ID,'' enter ONRR-2011-0006, and then
click search. Follow the instructions to submit public comments. The
ONRR will post all comments.
Mail comments to Armand Southall, Regulatory Specialist,
Office of Natural Resources Revenue, P.O. Box 25165, MS 61013B, Denver,
Colorado 80225. Please reference ICR 1012-0009 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 1012-0009 in your comments.
FOR FURTHER INFORMATION CONTACT: For questions on technical issues,
contact Mary Ann Guilinger, Audit and Compliance Management (ACM),
Office of Natural Resources Revenue (ONRR), telephone (303) 231-3408,
or e-mail [email protected]. For other comments or questions,
contact Armand Southall, Project Management Office--Regulations, ONRR,
telephone (303) 231-3221, or e-mail [email protected]. You may
contact Mr. Southall to obtain copies, at no cost, of (1) the ICR and
(2) the regulations that require the subject information collection.
SUPPLEMENTARY INFORMATION:
Title: 30 CFR Part 1220, OCS Net Profit Share Payment Reporting.
OMB Control Number: 1012-0009.
Bureau Form Number: None.
Abstract: The Secretary of the Department of the Interior is
responsible for collecting royalties from lessees who produce minerals
from leased Federal and Indian lands and the Outer Continental Shelf
(OCS). The Secretary is required by various laws to manage mineral
resources production on Federal and Indian lands and the OCS, collect
the royalties due, and distribute the funds collected in accordance
with those laws. The ONRR performs the royalty management functions for
the Secretary.
Public laws pertaining to mineral leases on Federal and Indian
lands and the OCS are posted at http://www.onrr.gov/Laws_R_D/PublicLawsAMR.htm.
I. General Information
The ONRR collects and uses this information to determine all
allowable direct and allocable joint costs and credits under Sec.
1220.011 incurred during the lease term, appropriate overhead allowance
permitted on these costs under Sec. 1220.012, and allowances for
capital recovery calculated under Sec. 1220.020. The ONRR also
collects this information to ensure royalties or net profit share
payments are accurately valued and appropriately paid. This ICR affects
only oil and gas leases on submerged Federal lands on the OCS.
II. Information Collections
Title 30 CFR part 1220 covers the net profit share lease (NPSL)
program and establishes reporting requirements for determining the net
profit share base and calculating net profit share payments due the
Federal Government for the production of oil and gas from leases.
A. NPSL Bidding System
To encourage exploration and development of oil and gas leases on
submerged Federal lands on the OCS, the Bureau of Ocean Energy
Management, Regulation, and Enforcement (BOEMRE, the former Offshore
Energy and Minerals Management [OEMM] of Minerals Management Service
[MMS]) promulgated regulations at 30 CFR 260--Outer Continental Shelf
Oil and Gas Leasing. Also, BOEMRE promulgated specific implementing
regulations for the NPSL bidding system at Sec. 260.110(d). The
BOEMRE, formerly OEMM/MMS, established the NPSL bidding system to
balance a fair market return to the Federal Government for the lease of
its public lands with a fair profit to companies risking their
investment capital. The system provides an incentive for early and
expeditious exploration and development and provides for sharing the
risks by the lessee and the Federal Government. The NPSL bidding system
incorporates a fixed capital recovery system as a means through which
the lessee recovers costs of exploration and development from
production revenues, along with a reasonable return on investment.
B. NPSL Capital Account
The Federal Government does not receive a profit share payment from
an NPSL until the lessee shows a credit balance in its capital account,
that is, when cumulative revenues and other credits exceed cumulative
costs. Lessees multiply the credit balance by the net profit share rate
(30 to 50 percent), resulting in the amount of net profit
[[Page 16817]]
share payment due the Federal Government.
The ONRR requires lessees to maintain an NPSL capital account for
each lease under Sec. 1220.010, which transfers to a new owner when
sold. Following the cessation of production, lessees are also required
to provide either an annual or a monthly report to the Federal
Government, using data from the capital account.
C. NPSL Inventories
The NPSL lessees must notify ONRR of their intent to perform an
inventory and file a report after each inventory of controllable
materiel under Sec. 1220.032.
D. NPSL Audits
When non-operators of an NPSL call for an audit, they must notify
ONRR. When ONRR calls for an audit, the lessee must notify all non-
operators on the lease. These requirements are located at Sec.
1220.033.
III. OMB Approval
The information we collect under this ICR is essential in order to
determine when net profit share payments are due and to ensure lessees
properly value and pay royalties or net profit share payments.
The ONRR will request OMB's approval to continue to collect this
information. Not collecting this information would limit the
Secretary's ability to discharge fiduciary duties and may also result
in the inability to confirm the accurate royalty value. Proprietary
information submitted to ONRR under this collection is protected, and
no items of a sensitive nature are collected.
Frequency: Annually, monthly, and on occasion.
Estimated Number and Description of Respondents: 6 lessees.
Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 1,046
hours.
All six lessees report monthly because all current NPSLs are in
producing status. Because the requirements for establishment of capital
accounts at Sec. 1220.010(a) and reporting of annual capital account
at Sec. 1220.031(a) are necessary only during non-producing status of
a lease, we included only one response annually for these requirements,
in case a new NPSL is established. We have not included in our
estimates certain requirements performed in the normal course of
business, which are considered usual and customary. The following chart
shows the estimated annual burden hours by CFR section and paragraph.
Respondents' Estimated Annual Burden Hours
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Reporting and Number of
Citation 30 CFR 1220 recordkeeping Hour burden annual Annual burden
requirement responses hours
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PART 1220--Accounting Procedures for Determining Net Profit Share Payment for Outer Continental Shelf Oil and
Gas Leases
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Sec. 1220.010 NPSL capital account.
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1220.010(a)............................ (a) For each NPSL 1 1 1
tract, an NPSL capital
account shall be
established and
maintained by the
lessee for NPSL
operations..
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Sec. 1220.030 Maintenance of records
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1220.030(a) and (b).................... (a) Each lessee . . . 1 6 6
shall establish and
maintain such records
as are necessary..
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Sec. 1220.031 Reporting and payment requirements
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1220.031(a)............................ (a) Each lessee subject 1 1 1
to this part shall
file an annual report
during the period from
issuance of the NPSL
until the first month
in which production
revenues are credited
to the NPSL capital
account..
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1220.031(b)............................ (b) Beginning with the 13 72 936
first month in which
production revenues
are credited to the
NPSL capital account,
each lessee. shall
file a report for each
NPSL, not later than
60 days following the
end of each month..
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1220.031(c)............................ (c) Each lessee subject Burden hours covered under Sec. 1220.031(b).
to this Part 1220
shall submit, together
with the report
required . . . any net
profit share payment
due..
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1220.031(d)............................ (d) Each lessee . . . 8 6 48
shall file a report
not later than 90 days
after each inventory
is taken..
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1220.031(e)............................ (e) Each lessee . . . 4 6 24
shall file a final
report, not later than
60 days following the
cessation of
production..
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Sec. 1220.032 Inventories
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1220.032(b)............................ (b) At reasonable 1 6 6
intervals, but at
least once every three
years, inventories of
controllable materiel
shall be taken by the
lessee. Written notice
of intention to take
inventory shall be
given by the lessee at
least 30 days before
any inventory is to be
taken so that the
Director may be
represented at the
taking of inventory..
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[[Page 16818]]
Sec. 1220.033 Audits
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1220.033(b)(1)......................... (b)(1) When 2 6 12
nonoperators of an
NPSL lease call an
audit in accordance
with the terms of
their operating
agreement, the
Director shall be
notified of the audit
call..
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1220.033(b)(2)......................... (b)(2) If DOI 2 6 12
determines to call for
an audit, DOI shall
notify the lessee of
its audit call and set
a time and place for
the audit . . . The
lessee shall send
copies of the notice
to the nonoperators on
the lease..
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1220.033(e)............................ (e) Records required to The Office of Regulatory Affairs determined
be kept under Sec. that the audit process is exempt from the
1220.030(a) shall be Paperwork Reduction Act of 1995 because MMS
made available for staff asks non-standard questions to resolve
inspection by any exceptions.
authorized agent of
DOI..
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Total Burden....................... ....................... .............. 110 1,046
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Estimated Annual Reporting and Recordkeeping ``Non-hour'' Cost
Burden: We have identified no ``non-Hour cost'' burdens.
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 at http://www.onrr.gov/Laws_R_D/FRNotices/FRInfColl.htm.
Public Comment Policy: We will post all comments, including names
and addresses of respondents, at http://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.
ONRR Information Collection Clearance Officer: Rachel Drucker (202)
208-3568.
Dated: March 22, 2011.
Gregory J. Gould,
Director for Office of Natural Resources Revenue.
[FR Doc. 2011-7140 Filed 3-24-11; 8:45 am]
BILLING CODE 4310-MR-P