Oil, Gas, and Sulphur Operations and Leasing in the Outer Continental Shelf (OCS)-Cost Recovery, 12626-12631 [05-4999]
Download as PDF
<![CDATA[
12626
Federal Register / Vol. 70, No. 49 / Tuesday, March 15, 2005 / Proposed Rules
Collection No.
[3038–0009]
Number of respondents .......
Frequency of response ........
9
On occasion
the Commodity Exchange Act, the
Commission hereby proposes to amend
part 150 of chapter I of title 17 of the
Code of Federal Regulations as follows:
PART 150—LIMITS ON POSITIONS
List of Subjects in 17 CFR Part 150
Agricultural commodities, Bona fide
hedge positions, Commodity futures,
Cotton, Grains, Position limits, Spread
exemptions.
In consideration of the foregoing,
pursuant to the authority contained in
1. The authority citation for part 150
is revised to read as follows:
Authority: 7 U.S.C. 6a, 6c, and 12a(5), as
amended by the Commodity Futures
Modernization Act of 2000, Appendix E of
Pub. L. 106–554, 114 Stat. 2763 (2000).
2. Section 150.2 is revised to read as
follows:
§ 150.2
Position limits.
No person may hold or control
positions, separately or in combination,
net long or net short, for the purchase
or sale of a commodity for future
delivery or, on a futures-equivalent
basis, options thereon, in excess of the
following:
SPECULATIVE POSITION LIMITS
[In contract units]
Contract
Spot month
Single month
All months
Chicago Board of Trade
Corn and Mini Corn 1 ...................................................................................................................
Oats .............................................................................................................................................
Soybeans and Mini Soybeans 1 ...................................................................................................
Wheat and Mini Wheat 1 ..............................................................................................................
Soybean Oil .................................................................................................................................
Soybean Meal ..............................................................................................................................
600
600
600
600
540
720
13,500
1,400
6,500
5,000
5,000
5,000
22,000
2,000
10,000
6,500
6,500
6,500
Minneapolis Grain Exchange
Hard Red Spring Wheat ..............................................................................................................
600
5,000
6,500
New York Board of Trade
Cotton No. 2 ................................................................................................................................
300
3,500
5,000
Kansas City Board of Trade
Hard Winter Wheat ......................................................................................................................
600
5,000
6,500
1 For
purposes of compliance with these limits, positions in the regular sized and mini-sized contracts shall be aggregated.
Issued by the Commission this 7th day of
March, 2005, in Washington, DC.
Jean A. Webb,
Secretary of the Commission.
[FR Doc. 05–5088 Filed 3–14–05; 8:45 am]
BILLING CODE 6351–01–P
DEPARTMENT OF THE INTERIOR
Minerals Management Service
30 CFR Parts 250 and 256
RIN 1010–AD16
Oil, Gas, and Sulphur Operations and
Leasing in the Outer Continental Shelf
(OCS)—Cost Recovery
Minerals Management Service
(MMS), Interior.
ACTION: Proposed rule.
AGENCY:
SUMMARY: MMS proposes to modify its
regulations to change some existing fees
and implement several new fees. The
proposed fees would offset MMS’s costs
of performing certain services relating to
its minerals programs.
DATES: MMS will consider all comments
received by April 14, 2005. MMS may
VerDate jul<14>2003
15:34 Mar 14, 2005
Jkt 205001
not fully consider comments received
after April 14, 2005.
ADDRESSES: You may submit comments
on the rulemaking by any of the
following methods listed below. Please
use 1010–AD16 as an identifier in your
message. See also Public Comment
Procedures under Procedural Matters.
• MMS’s Public Connect on-line
commenting system, https://
ocsconnect.mms.gov. Follow the
instructions on the Web site for
submitting comments.
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions on the Web site for
submitting comments.
• E-mail MMS at
rules.comments@mms.gov. Identify the
Regulation Identifier Number (RIN) in
the subject line.
• Fax: (703) 787–1093. Identify the
RIN.
• Mail or hand-carry comments to the
Department of the Interior; Minerals
Management Service; Mail Stop 4024;
381 Elden Street; Herndon, Virginia
20170–4817; Attention: Rules
Processing Team (RPT). Please reference
‘‘Oil, Gas, and Sulphur Operations and
Leasing in the Outer Continental Shelf—
PO 00000
Frm 00015
Fmt 4702
Sfmt 4702
Cost Recovery—AD16’’ in your
comments.
FOR FURTHER INFORMATION CONTACT:
Angela Mazzullo, Offshore Minerals
Management (OMM) Budget Office at
(703) 787–1691.
SUPPLEMENTARY INFORMATION:
Background
Legal Authority and Policy Guidance:
The Independent Offices Appropriation
Act of 1952 (IOAA), 31 U.S.C. 9701, is
a general law applicable Governmentwide, that provides authority to MMS to
recover the costs of providing services
to the non-federal sector. It requires
implementation through rulemaking.
There are several policy documents that
provide guidance on the process of
charging applicants for service costs.
These policy documents are found in
the Office of Management and Budget
(OMB) Circular A–25, ‘‘User Charges,’’
and the Department of the Interior
Departmental Manual (DM), 330 DM
1.3A & 6.4, ‘‘Cost Recovery’’ and ‘‘User
Charges.’’ The general policy that
E:\FR\FM\15MRP1.SGM
15MRP1
Federal Register / Vol. 70, No. 49 / Tuesday, March 15, 2005 / Proposed Rules
governs charges for services provided
states that a charge ‘‘will be assessed
against each identifiable recipient for
special benefits derived from Federal
activities beyond those received by the
general public’’ (OMB Circular A–25).
The Department of the Interior Manual
mirrors this policy (330 DM 1.3 A.).
Certain activities may be exempted from
these fees under certain conditions set
out at 330 DM 1.3A & 6.4.4.
Cost Recovery Definition: In this
rulemaking, cost recovery means
reimbursement to MMS for its costs of
performing a service by charging a fee
to the identifiable applicant/beneficiary
of the service. Further guidance is
provided by Solicitor’s Opinion M–
36987, ‘‘BLM’s Authority to Recover
Costs of Mineral Document Processing’’
(December 5, 1996). The Department of
the Interior Office of Inspector General
issued reports in 1988 and 1995
addressing BLM’s cost recovery
responsibilities.
Proposed Regulation
How Did MMS Determine What Services
It Would Propose for Cost Recovery in
This Proposed Rule?
An MMS cost recovery team, drawn
from both the Regional and
Headquarters Offshore Minerals
Management (OMM) offices, reviewed
the statutory language found in the
United States Code and OMB,
Departmental, Bureau, and Solicitor
Opinion guidance to evaluate what
services were eligible for cost recovery.
Since the authority is rather broad, the
team chose to focus on whether the
service provided results from
compliance with a statutory
Service
requirement related to doing business
on the Outer Continental Shelf (e.g.,
Initial Designation of Operator), or from
an activity exercised at the option of the
applicant/beneficiary outside of a
statutory requirement (e.g., Change of
Designation of Operator). The services
proposed for cost recovery action at this
time are limited to those that fall into
the latter category of activities exercised
at the option of the applicant/
beneficiary.
Which MMS Services Would be Subject
to a Cost Recovery Fee?
The following table lists the services
that are proposed to be subject to a cost
recovery fee for the first time under this
proposed rule and those services for
which MMS proposes to revise existing
fees.
Current fee
Proposed fee
(1)
(1)
$2,350
300
60
(1)
(1)
(1)
(1)
(1)
185
25
Change in Designation of Operator ...........................................................................
Suspensions of Operations/Suspensions of Production (SOO/SOP) Request ........
Pipeline Right-of-Way (ROW) Grant Application .......................................................
Pipeline Conversion of Lease Term to ROW ............................................................
Pipeline ROW Assignment ........................................................................................
500 feet from Lease/Unit Line Production Request ..................................................
Gas Cap Production Request ....................................................................................
Downhole Commingling Request ..............................................................................
Voluntary Unitization Proposal or Unit Expansion ....................................................
Unitization Revision and Modification ........................................................................
Record Title/Operating Rights (Transfer) ..................................................................
Non-required Document Filing ...................................................................................
12627
$140
1,700
1,100
180
160
3,100
4,000
4,600
10,000
720
160
170
30 CFR citation
§ 250.143
§ 250.171
§ 250.1015
§ 250.1015
§ 250.1018
§ 250.1101
§ 250.1101
§ 250.1106
§ 250.1303
§ 250.1303
§ 256.64
§ 256.64
1 None.
What Type of Fees Does This Regulation
Create?
This rule establishes fixed fees for
certain OMM services based on cost
recovery principles. A fixed fee remains
the same for each request of a particular
type. We considered determining and
charging fees on a case-by-case basis,
but proposes to assess fixed fees because
of the broad similarity of the work
required to process each request of a
particular type.
Additionally, the fixed fee approach
provides more objectivity and certainty
as each applicant faces the same
predetermined fee structure. Finally, a
fixed fee is less administratively
burdensome on both MMS and industry
than an approach based on tracking
ongoing processing costs of individual
documents.
What Are the Fee Amounts Based On?
We considered various factors in
determining the proposed fee amounts.
These factors included actual costs, the
monetary worth of the services to the
applicant, and whether the services
provide a benefit to the general public.
VerDate jul<14>2003
15:34 Mar 14, 2005
Jkt 205001
MMS determined that the monetary
value of each of the eligible services was
greater than the processing costs, while
the public benefit of the services was
small and speculative relative to the
processing costs. MMS concluded that
an actual cost method for calculating fee
amounts is the most appropriate way to
achieve the cost recovery objectives of
the IOAA statute.
The proposed cost methodology
includes the sum of both direct costs
and indirect costs. The direct costs are
comprised of the salaries, benefits, and
special materials or equipment (when
applicable) attributed to processing each
task-specific function of a request. The
labor component is sub-divided by
various steps in each process and by the
hours spent for each employee involved
in the task. The indirect costs include,
but are not limited to, items such as
office space, insurance, postage,
computers, phones, fax machines, and
general supplies not associated with a
task specific request. To recover these
types of costs, an indirect cost rate of 15
percent of the direct costs is applied.
PO 00000
Frm 00016
Fmt 4702
Sfmt 4702
How Did MMS Determine the Costs To
Be Covered by the Proposed Fees?
The team created a template for each
service for which a fee is proposed. The
template listed the sub-processes
needed to provide each service. Next,
the staff that provided the services filled
in the specific direct cost information
associated with each of these activities.
This data was compiled into a cost
matrix for all Regions, request types,
and yearly number of transactions, and
then consolidated to set the fees
proposed in § 250.125 and § 256.63.
Were There Differences in the
Processing Costs and Number of
Transactions Among the Regional
Offices?
Yes. These differences were primarily
attributable to the varying levels of
offshore oil and gas activity across the
Regions. We reconciled these
differences with a weighted-average
method that gives greater weight to costs
from Regional offices with heavy
workloads, and thus more expertise, in
providing certain services. Using the
number of yearly transactions in each
E:\FR\FM\15MRP1.SGM
15MRP1
12628
Federal Register / Vol. 70, No. 49 / Tuesday, March 15, 2005 / Proposed Rules
Region, we weighted each Region’s costs
to determine the average fixed fee that
we propose to apply to all Regions.
Since the Gulf of Mexico (GOM) Region
has the majority of transactions, most of
the proposed fixed fees are similar to
the costs in the GOM Region.
Would the Proposed Fees be Adjusted
for Inflation?
Yes. Since we used current salary and
expense levels, the cost estimates reflect
current dollars. To keep the costs in line
with inflation, we propose to adjust the
fees every five years according to the
Implicit Price Deflator for the Gross
Domestic Product (GDP), starting in
2005 dollars. This inflation index, as
published by the U.S. Department of
Commerce, is generally accepted by
economists as the most reliable general
price index and used by MMS for other
inflationary adjustments. We propose to
escalate for inflation on a five year basis
because we estimate that as a significant
interval of time to reflect inflationary
adjustments. Because we would
establish the process for changing fees
in this rule, and the application of that
process is simply a mathematical
calculation, we would adjust the fees
without publishing a proposed rule for
notice and comment, and post them on
our Web site. We would also review our
costs for administering each type of
request every two years. If we decide to
amend fees based on something other
than the Implicit Price Deflator GDP, we
would do so through proposed
rulemaking with a comment period.
Public Comment Procedures
All submissions received must
include the agency name and RIN for
this rulemaking. Our practice is to make
comments, including names and
addresses of respondents, available for
public review. E-mail address is
considered a form of address. Individual
respondents may request that we
withhold their addresses from the
rulemaking record, which we will honor
to the extent allowable by law. There
may be circumstances in which we
would withhold from the record a
respondent’s identity, as allowable by
law. If you wish us to withhold your
name and/or address, you must state
this prominently at the beginning of
your comment. However, we will not
consider anonymous comments. We
will make all submissions from
organizations or businesses, and from
individuals identifying themselves as
representatives or officials of
organizations or businesses, available
for public inspection in their entirety.
13:39 Mar 14, 2005
This document is not a significant
rule as determined by the Office of
Management and Budget (OMB) and is
not subject to review under Executive
Order 12866.
(1) This proposed rule would not have
an annual effect of $100 million or more
on the economy. It would not adversely
affect in a material way the economy,
productivity, competition, jobs, the
environment, public health or safety, or
State, local, or tribal governments or
communities. This rule establishes fees
based on cost recovery principles. Based
on historical filings, we project the fees
will raise revenue by approximately $2
million annually.
(2) This proposed rule would not
create a serious inconsistency or
otherwise interfere with an action taken
or planned by another agency because
the costs incurred are for specific MMS
services and other agencies are not
involved in these aspects of the OCS
program.
(3) This proposed rule would not alter
the budgetary effects of entitlements,
grants, user fees, or loan programs or the
rights or obligations of their recipients.
This change will have no effect on the
rights of the recipients of entitlements,
grants, user fees, or loan programs. The
fees proposed by this rule are service
fees based on cost recovery, and not
user fees.
(4) This proposed rule will not raise
novel legal or policy issues.
Regulatory Flexibility Act (RFA)
Procedural Matters
VerDate jul<14>2003
Regulatory Planning and Review
(Executive Order 12866)
Jkt 205001
The Department certifies that this
proposed rule would not have a
significant economic effect on a
substantial number of small entities
under the RFA (5 U.S.C. 601 et seq.).
This proposed change would affect
lessees and operators of leases in the
OCS. This includes about 130 Federal
oil and gas lessees and 115 holders of
pipeline rights-of-way. Small lessees
that operate under this rule would fall
under the Small Business
Administration’s (SBA) North American
Industry Classification System Codes
(NAICS) 211111, Crude Petroleum and
Natural Gas Extraction and 213111,
Drilling Oil and Gas Wells. For these
NAICS code classifications, a small
company is one with fewer than 500
employees. Based on these criteria, an
estimated 70 percent of these companies
are considered small. This proposed
rule, therefore, affects a substantial
number of small entities.
The fees proposed in the rule would
not have a significant economic effect
on a substantial number of small entities
PO 00000
Frm 00017
Fmt 4702
Sfmt 4702
because the fees are very small
compared to normal costs of doing
business on the OCS. For example,
depending on water depth and well
depth, cost estimates for drilling a well
range from $5 million to $23 million.
Thus the proposed fees, ranging from
$140 to $10,000, are dwarfed by the
millions of dollars that industry already
commits to exploration, development,
and production.
Additionally, the fees proposed in the
rule would apply to both large and
small firms in the same way. Also,
applying for MMS services provides a
benefit to the applicant (both large and
small) if the applicant decides to
operate in the OCS.
Comments are important. The Small
Business and Agriculture Regulatory
Enforcement Ombudsman and 10
Regional Fairness Boards were
established to receive comments from
small business about Federal agency
enforcement actions. The Ombudsman
will annually evaluate the enforcement
activities and rate each agency’s
responsiveness to small business. If you
wish to comment on the actions of
MMS, call 1–888–734–3247. You may
comment to the Small Business
Administration without fear of
retaliation. Disciplinary action for
retaliation by an MMS employee may
include suspension or termination from
employment with the Department of the
Interior.
Small Business Regulatory Enforcement
Fairness Act (SBREFA)
This is not a major rule under the
SBREFA (5 U.S.C. 804(2)). This
proposed rule:
(a) Would not have an annual effect
on the economy of $100 million or
more.
(b) Would not cause a major increase
in costs or prices for consumers,
individual industries, Federal, State, or
local government agencies, or
geographic regions.
(c) Would not have significant adverse
effects on competition, employment,
investment, productivity, innovation, or
the ability of U.S.-based enterprises to
compete with foreign-based enterprises.
Leasing on the U.S. OCS is limited to
residents of the U.S. or companies
incorporated in the United States. This
rule does not change that requirement.
Paperwork Reduction Act (PRA) of 1995
The proposed rulemaking related to
30 CFR part 250, subparts A, J, K, and
M, and to 30 CFR part 256, subpart J.
The rulemaking affects the information
collections for these regulations but will
not change the approved burden hours,
just the associated fees. Therefore, OMB
E:\FR\FM\15MRP1.SGM
15MRP1
12629
Federal Register / Vol. 70, No. 49 / Tuesday, March 15, 2005 / Proposed Rules
lands-mineral resources, Public lands—
right-of-way, Reporting and
recordkeeping requirements, Sulphur
development and production, Sulphur
exploration, Surety bonds.
has ruled that there is no change in the
information collection and that MMS
does not need to make a formal
submission by Form OMB 83–I for this
rulemaking. When the rule is finalized,
we will submit Form OMB 83–C to
modify the fees in each collection.
OMB has approved the information
collections for the affected regulations
as 30 CFR part 250, subpart A, OMB
Control Number 1010–0114 (expiration
10/31/07); subpart J, 1010–0050
(expiration 1/31/06); subpart K, 1010–
0041 (expiration 7/31/06); and subpart
M, 1010–0068 (expiration 8/31/05); and
as 30 CFR part 256, subpart J, 1010–
0006, (expiration 3/31/07).
MMS will summarize written
responses to this notice and address
them in the final rule. All comments
will become a matter of public record.
result in the issuance of a Finding of No
Significant Impact or the preparation of
an environmental impact statement
would not be required.
Federalism (Executive Order 13132)
With respect to Executive Order
13132, the proposed rule would not
have federalism implications. It would
not substantially and directly affect the
relationship between the Federal and
State Governments. To the extent that
State and local governments have a role
in OCS activities, this proposed change
would not affect that role.
Consultation and Coordination With
Indian Tribal Governments (Executive
Order 13175)
In accordance with Executive Order
13175, this proposed rule does not have
tribal implications that impose
substantial direct compliance costs on
Indian tribal governments.
For the reasons stated in the
preamble, the Minerals Management
Service (MMS) proposes to amend 30
CFR parts 250 and 256 as follows:
Effects on the Nation’s Energy Supply
(Executive Order 13211)
Executive Order 13211 requires the
agency to prepare a Statement of Energy
Effects when it takes a regulatory action
that is identified as a significant energy
action. This proposed rule is not a
significant energy action, and therefore
does not require a Statement of Energy
Effects, because it:
(1) Is not a significant regulatory
action under Executive Order 12866,
(2) Is not likely to have a significant
adverse effect on the supply,
distribution, or use of energy, and
(3) Has not been designated by the
Administrator of the Office of
Information and Regulatory Affairs,
Office of Management and Budget, as a
significant energy action.
1. The authority citation for part 250
continues to read as follows:
Takings Implication Assessment
(Executive Order 12630)
With respect to Executive Order
12630, the proposed rule would not
have significant takings implications. A
Takings Implication Assessment is not
required. The rulemaking is not a
governmental action capable of
interfering with constitutionally
protected property rights.
Civil Justice Reform (Executive Order
12988)
With respect to Executive Order
12988, the Office of the Solicitor has
determined that this proposed rule
would not unduly burden the judicial
system, and meets the requirements of
Sections 3(a) and 3(b)(2) of the
Executive Order.
National Environmental Policy Act
(NEPA) of 1969
MMS analyzed this proposed rule
using the criteria of the NEPA and 516
Departmental Manual, Chapter 2, and
concluded that the preparation of an
environmental analysis which would
Unfunded Mandate Reform Act (UMRA)
of 1995 (Executive Order 12866)
This proposed rule would not impose
an unfunded mandate on State, local, or
tribal governments or the private sector
of more than $100 million per year. The
proposed rule would not have a
significant or unique effect on State,
local, or tribal governments or the
private sector. A statement containing
the information required by the UMRA
(2 U.S.C. 1531 et seq.) is not required.
This is because the proposal would not
affect State, local, or tribal governments,
and the effect on the private sector is
small.
List of Subjects
30 CFR Part 250
Continental shelf, Environmental
impact statements, Environmental
protection, Government contracts,
Investigations, Mineral royalties, Oil
and gas development and production,
Oil and gas exploration, Oil and gas
reserves, Penalties, Pipelines, Public
30 CFR Part 256
Administrative practice and
procedure, Continental shelf,
Environmental protection, Government
contracts, Intergovernmental relations,
Minerals Management Service, Oil and
gas exploration, Public lands-mineral
resources, Public lands—rights-of-way,
Reporting and recordkeeping
requirements, Surety bonds.
Dated: February 16, 2005.
Chad Calvert,
Acting Assistant Secretary—Land and
Minerals Management.
PART 250—OIL AND GAS AND
SULPHUR OPERATIONS IN THE
OUTER CONTINENTAL SHELF
Authority: 43 U.S.C. 1331 et seq.
2. In 30 CFR part 250, subpart A, a
new § 250.125 is added and a new
undesignated center heading is added
preceding the new § 250.125 to read as
follows:
Subpart A—General
*
*
*
*
*
Fees
§ 250.125
Service fees.
The table in this section shows the
fees that you must pay to MMS for the
services listed. All fees are
nonrefundable. The fees will be
adjusted every five years, or more
frequently as needed, according to the
Implicit Price Deflator for Gross
Domestic Product, and the updated
amounts will be posted on our Web site.
MMS will re-examine the cost
methodology of the fees every two years.
If a significant adjustment is needed to
arrive at the new actual cost, a proposed
rule containing the new fees will be
published for comment.
FY 2005 SERVICE FEE TABLE
Service
(1)
(2)
(3)
(4)
Proposed fee
Change In Designation of Operator .......................................................................................................
Suspension of Operations/Suspension of Production (SOO/SOP) Request ........................................
Pipeline Right-of-Way (ROW) Grant Application ...................................................................................
Pipeline Conversion of Lease Term to ROW ........................................................................................
VerDate jul<14>2003
13:39 Mar 14, 2005
Jkt 205001
PO 00000
Frm 00018
Fmt 4702
Sfmt 4702
E:\FR\FM\15MRP1.SGM
$140
1,700
1,100
180
15MRP1
30 CFR citation
§ 250.143
§ 250.171
§ 250.1015
§ 250.1015
12630
Federal Register / Vol. 70, No. 49 / Tuesday, March 15, 2005 / Proposed Rules
FY 2005 SERVICE FEE TABLE—Continued
Service
Proposed fee
(5) Pipeline ROW Assignment .....................................................................................................................
(6) 500 feet from Lease/Unit Line Production Request ..............................................................................
(7) Gas Cap Production Request ................................................................................................................
(8) Downhole Commingling Request ...........................................................................................................
(9) Voluntary Unitization Proposal or Unit Expansion .................................................................................
(10) Unitization Revision and Modification ..................................................................................................
3. In § 250.143, add a new paragraph
(d) to read as follows:
§ 250.143
How do I designate an operator?
*
*
*
*
*
(d) If you change the designated
operator on your lease, you must pay
the service fee listed in § 250.125 of this
subpart with your request for a change
in designation of operator.
4. In § 250.171, add a new paragraph
(e) to read as follows:
§ 250.171
How do I request a suspension?
*
*
*
*
*
(e) You must pay the service fee listed
in § 250.125 of this subpart with your
request for a SOO or SOP.
5. In § 250.1015, paragraph (a) is
revised to read as follows:
§ 250.1015 Applications for pipeline rightof-way grants.
(a) You must submit an original and
three copies of an application for a new
or modified pipeline ROW grant to the
Regional Supervisor. The application
must address those items required by
§ 250.1007 (a) or (b) of this subpart, as
applicable. It must also state the
primary purpose for which you will use
the ROW grant. If the ROW has been
used before the application is made, the
application must state the date such use
began, by whom, and the date the
applicant obtained control of the
improvement. When you file your
application, you must pay the rental
required under § 250.1012 of this
subpart, as well as the service fees listed
in § 250.125 of this part for a pipeline
ROW grant to install a new pipeline, or
to convert an existing lease term
pipeline into a ROW pipeline. An
application to modify an approved ROW
grant must be accompanied by the
additional rental required under
§ 250.1012 of this subpart if applicable.
You must file a separate application for
each ROW.
*
*
*
*
*
6. In § 250.1018, paragraph (b) is
revised to read as follows:
§ 250.1018 Assignment of pipeline right-ofway grants.
*
*
*
*
*
(b) Any application for approval for
an assignment, in whole or in part, of
any right, title, or interest in a right-ofway grant must be accompanied by the
same showing of qualifications of the
assignees as is required of an applicant
for a ROW in § 250.1015 of this subpart
and must be supported by a statement
that the assignee agrees to comply with
and to be bound by the terms and
conditions of the ROW grant. The
assignee must satisfy the bonding
requirements in § 250.1011 of this part.
No transfer will be recognized unless
and until it is first approved, in writing,
by the Regional Supervisor. The
assignee must pay the service fee listed
in § 250.125 of this part for a pipeline
ROW assignment request.
7. In § 250.1101, add a new paragraph
(f) to read as follows:
§ 250.1101 General requirements and
classification of reservoirs.
*
*
*
*
*
(f) You must pay the service fee listed
in § 250.125 of this part with your
request for either a 500 feet from lease/
unit line production interval or to
produce from a completion in an
associated gas cap of a sensitive
reservoir under this section.
8. In § 250.1106, add a new paragraph
(d) to read as follows:
§ 250.1106
Downhole commingling.
*
*
*
*
*
160
3,100
4,000
4,600
10,000
720
30 CFR citation
§ 250.1018
§ 250.1101
§ 250.1101
§ 250.1106
§ 250.1303
§ 250.1303
(d) You must pay the service fee listed
in § 250.125 of this part with your
request for downhole commingling.
9. In § 250.1303, add a new paragraph
(d) to read as follows:
§ 250.1303 How do I apply for voluntary
unitization?
*
*
*
*
*
(d) You must pay the service fee listed
in § 250.125 of this part with your
request for a voluntary unitization
proposal or unit expansion.
Additionally, you must pay the nonrefundable service fee listed in
§ 250.125 with your request for
unitization revision and modification.
PART 256—LEASING OF SULPHUR OR
OIL AND GAS IN THE OUTER
CONTINENTAL SHELF
10. The authority citation for 30 CFR
part 256 continues to read as follows:
Authority: 43 U.S.C. 1331 et seq.; 42 U.S.C.
6213.
11. Add a new § 256.63 to read as
follows:
§ 256. 63
Service fees.
The table in this section shows the
fees that you must pay to MMS for the
services listed. All fees are
nonrefundable. The fees will be
adjusted every five years, or more
frequently as needed, according to the
Implicit Price Deflator for Gross
Domestic Product, and the updated
amounts will be posted on our Web site.
MMS will re-examine the cost
methodology of the fees every two years.
If a significant adjustment is needed to
arrive at the new actual cost, a proposed
rule containing the new fees will be
published for comment.
FY 2005 SERVICE FEE TABLE
Service
Proposed fee
(1) Record Title/Operating Rights (Transfer) ...............................................................................................
(2) Non-required Document Filing ...............................................................................................................
12. In § 256.64, paragraph (a)(8) is
revised to read as follows:
VerDate jul<14>2003
15:34 Mar 14, 2005
Jkt 205001
§ 256.64
*
PO 00000
How to file transfers.
*
Frm 00019
*
*
Fmt 4702
$160
170
(a) * * *
*
Sfmt 4702
E:\FR\FM\15MRP1.SGM
15MRP1
30 CFR citation
§ 256.64
§ 256.64
Federal Register / Vol. 70, No. 49 / Tuesday, March 15, 2005 / Proposed Rules
(8) You must pay the service fee listed
in § 256.63 of this subpart with your
application for approval of any
instrument of transfer you are required
to file (Record Title/Operating Rights
(Transfer) Fee). Where multiple
transfers of interest are included in a
single instrument, a separate fee applies
to each individual transfer of interest.
For any document you are not required
to file by these regulations but which
you submit for record purposes per
lease affected, you must also pay the
service fee listed in § 256.63 (Nonrequired Document Filing Fee). Such
documents may be rejected at the
discretion of the authorized officer.
*
*
*
*
*
[FR Doc. 05–4999 Filed 3–14–05; 8:45 am]
BILLING CODE 4310–MR–P
LIBRARY OF CONGRESS
COPYRIGHT OFFICE
37 CFR Part 270
[Docket No. RM 2005–2]
Reports of Use of Sound Recordings
Under Statutory License
Copyright Office, Library of
Congress.
ACTION: Notice of proposed rulemaking.
AGENCY:
SUMMARY: The Copyright Office of the
Library of Congress is proposing
amendments to the rules governing
reports of use of sound recordings under
the statutory license for preexisting
subscription services.
DATES: Comments are due no later than
April 14, 2005.
ADDRESSES: If hand delivered by a
private party, an original and ten copies
of any comment should be brought to
Room LM–401 of the James Madison
Memorial Building between 8:30 a.m.
and 5 p.m. and the envelope should be
addressed as follows: Copyright Office
General Counsel/CARP, U.S. Copyright
Office, James Madison Memorial
Building, Room LM–401, 101
Independence Avenue, SE.,
Washington, DC 20559–6000. If hand
delivered by a commercial courier, an
original and ten copies of any comment
must be delivered to the Congressional
Courier Acceptance Site located at
Second and D Streets, NE., Washington,
DC, between 8:30 a.m. and 4 p.m. The
envelope should be addressed as
follows: Copyright Office General
Counsel/CARP, Room LM–403, James
Madison Memorial Building, 101
Independence Avenue, SE.,
Washington, DC. If sent by mail
VerDate jul<14>2003
18:09 Mar 14, 2005
Jkt 205001
(including overnight delivery using U.S.
Postal Service Express Mail), an original
and ten copies of any comment should
be addressed to: Copyright Arbitration
Royalty Panel (CARP) P.O. Box 70977,
Southwest Station, Washington, DC
20024–0977. Comments may not be
delivered by means of overnight
delivery services such as Federal
Express, United Parcel Service, etc., due
to delays in processing receipt of such
deliveries.
FOR FURTHER INFORMATION CONTACT:
David O. Carson, General Counsel, or
William J. Roberts, Jr. Telephone: (202)
707–8380. Telefax: (202) 252–3423.
SUPPLEMENTARY INFORMATION: Digital
audio services provide copyrighted
sound recordings of music for the
listening enjoyment of the users of those
services. In order to provide these sound
recordings, however, a digital audio
service must license the copyrights to
each musical work, as well as the sound
recording of the musical work. There are
two statutory licenses in the Copyright
Act that enable a digital audio service to
transmit performances of copyrighted
sound recordings: section 112 and
section 114. 17 U.S.C. 112 & 114.
Congress initially established these
licenses in the Digital Performance
Right in Sound Recordings Act of 1995,
Pub. L. 104–39, for subscription digital
audio services then in existence, and
later amended sections 112 and 114 in
the Digital Millennium Copyright Act of
1998, Pub. L. 105–304, to include other
types of digital audio services. It is the
former category of services (hereinafter
referred to as ‘‘preexisting subscription
services’’) to which this Notice of
Proposed Rulemaking (‘‘NPRM’’)
applies.
On June 24, 1998, the Copyright
Office published interim regulations
establishing the requirements by which
copyright owners receive reasonable
notice of the use of their works from
preexisting subscription services, and
how reports of use shall be kept and
made available to copyright owners.
Originally codified at § § 201.35 through
201.37 of title 37 of the Code of Federal
Regulations, these regulations have
recently been moved to part 270 of the
CFR, but have remained unchanged. On
March 18, 2003, the preexisting
subscription services–Music Choice,
DMX Music Inc., and Muzak LLC–and
representative organizations of
copyright owners of sound recordings–
SoundExchange, Inc., the American
Federation of Television and Radio
Artists, and the American Federation of
Musicians–filed a petition with the
Copyright Office seeking to amend the
regulations regarding reports of use
PO 00000
Frm 00020
Fmt 4702
Sfmt 4702
12631
(formerly § 201.36, now § 270.2) for
preexisting subscription services. At
that time, the Office was conducting a
rulemaking proceeding to establish
notice and recordkeeping requirements
for digital audio services other than
preexisting subscription services and
declined to include the petition in that
proceeding. See 69 FR 11515, 11517 n.9
(March 11, 2004). Instead, the Office
determined to address the petition ‘‘in
a separate Federal Register document.’’
Id. Today’s NPRM fulfills that directive.
Petitioners request what they describe
as ‘‘minor adjustments [that] will make
the rules more useful to copyright
owners and performers and less
burdensome on users of copyrighted
works.’’ Petition at 1. The proposed
changes can be generally described as
follows. First, to provide copyright
owners with a more complete report of
the use of their works, petitioners
request that preexisting subscription
services report the copyright notice (i.e.,
the ‘‘P line’’) accompanying record
albums or sound recordings, where it is
available. Second, petitioners propose to
extend the time allowed for filing
reports of use to comply with current
payment periods for preexisting
subscription services. See 68 FR 39837
(July 3, 2003). And third, petitioners
propose some technical amendments
that, in their view, clarify that the
requirements of § 270.2 apply only to
preexisting subscription services.
The Office welcomes public comment
to the proposed changes.
List of Subjects in Part 270
Copyright, Sound Recordings.
Proposed Regulations
In consideration of the foregoing, the
Copyright Office proposes to amend part
270 of 37 CFR to read as follows:
PART 270–NOTICE AND
RECORDKEEPING REQUIREMENTS
FOR STATUTORY LICENSES
1. The authority citation for part 270
continues to read as follows:
Authority: 17 U.S.C. 702
2. Section 270.2 is amended as
follows:
a. By revising paragraph (b)(2);
b. By revising paragraph (b)(3);
c. In paragraph (c), by adding ‘‘or
pursuant to a settlement agreement
reached or statutory license adopted
pursuant to section 112(e)’’ after ‘‘17
U.S.C. 802(f)’’ and by removing
‘‘twentieth’’ and adding ‘‘forty–fifth’’ in
its place;
d. In paragraph (d) introductory text,
by removing ‘‘20th’’ and adding ‘‘forty–
fifth’’ in its place; and
e. By revising paragraph (e).
E:\FR\FM\15MRP1.SGM
15MRP1
]]>Agencies
[Federal Register Volume 70, Number 49 (Tuesday, March 15, 2005)]
[Proposed Rules]
[Pages 12626-12631]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-4999]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE INTERIOR
Minerals Management Service
30 CFR Parts 250 and 256
RIN 1010-AD16
Oil, Gas, and Sulphur Operations and Leasing in the Outer
Continental Shelf (OCS)--Cost Recovery
AGENCY: Minerals Management Service (MMS), Interior.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: MMS proposes to modify its regulations to change some existing
fees and implement several new fees. The proposed fees would offset
MMS's costs of performing certain services relating to its minerals
programs.
DATES: MMS will consider all comments received by April 14, 2005. MMS
may not fully consider comments received after April 14, 2005.
ADDRESSES: You may submit comments on the rulemaking by any of the
following methods listed below. Please use 1010-AD16 as an identifier
in your message. See also Public Comment Procedures under Procedural
Matters.
MMS's Public Connect on-line commenting system, https://
ocsconnect.mms.gov. Follow the instructions on the Web site for
submitting comments.
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions on the Web site for submitting comments.
E-mail MMS at rules.comments@mms.gov. Identify the
Regulation Identifier Number (RIN) in the subject line.
Fax: (703) 787-1093. Identify the RIN.
Mail or hand-carry comments to the Department of the
Interior; Minerals Management Service; Mail Stop 4024; 381 Elden
Street; Herndon, Virginia 20170-4817; Attention: Rules Processing Team
(RPT). Please reference ``Oil, Gas, and Sulphur Operations and Leasing
in the Outer Continental Shelf--Cost Recovery--AD16'' in your comments.
FOR FURTHER INFORMATION CONTACT: Angela Mazzullo, Offshore Minerals
Management (OMM) Budget Office at (703) 787-1691.
SUPPLEMENTARY INFORMATION:
Background
Legal Authority and Policy Guidance: The Independent Offices
Appropriation Act of 1952 (IOAA), 31 U.S.C. 9701, is a general law
applicable Government-wide, that provides authority to MMS to recover
the costs of providing services to the non-federal sector. It requires
implementation through rulemaking. There are several policy documents
that provide guidance on the process of charging applicants for service
costs. These policy documents are found in the Office of Management and
Budget (OMB) Circular A-25, ``User Charges,'' and the Department of the
Interior Departmental Manual (DM), 330 DM 1.3A & 6.4, ``Cost Recovery''
and ``User Charges.'' The general policy that
[[Page 12627]]
governs charges for services provided states that a charge ``will be
assessed against each identifiable recipient for special benefits
derived from Federal activities beyond those received by the general
public'' (OMB Circular A-25). The Department of the Interior Manual
mirrors this policy (330 DM 1.3 A.). Certain activities may be exempted
from these fees under certain conditions set out at 330 DM 1.3A &
6.4.4.
Cost Recovery Definition: In this rulemaking, cost recovery means
reimbursement to MMS for its costs of performing a service by charging
a fee to the identifiable applicant/beneficiary of the service. Further
guidance is provided by Solicitor's Opinion M-36987, ``BLM's Authority
to Recover Costs of Mineral Document Processing'' (December 5, 1996).
The Department of the Interior Office of Inspector General issued
reports in 1988 and 1995 addressing BLM's cost recovery
responsibilities.
Proposed Regulation
How Did MMS Determine What Services It Would Propose for Cost Recovery
in This Proposed Rule?
An MMS cost recovery team, drawn from both the Regional and
Headquarters Offshore Minerals Management (OMM) offices, reviewed the
statutory language found in the United States Code and OMB,
Departmental, Bureau, and Solicitor Opinion guidance to evaluate what
services were eligible for cost recovery. Since the authority is rather
broad, the team chose to focus on whether the service provided results
from compliance with a statutory requirement related to doing business
on the Outer Continental Shelf (e.g., Initial Designation of Operator),
or from an activity exercised at the option of the applicant/
beneficiary outside of a statutory requirement (e.g., Change of
Designation of Operator). The services proposed for cost recovery
action at this time are limited to those that fall into the latter
category of activities exercised at the option of the applicant/
beneficiary.
Which MMS Services Would be Subject to a Cost Recovery Fee?
The following table lists the services that are proposed to be
subject to a cost recovery fee for the first time under this proposed
rule and those services for which MMS proposes to revise existing fees.
----------------------------------------------------------------------------------------------------------------
Service Current fee Proposed fee 30 CFR citation
----------------------------------------------------------------------------------------------------------------
Change in Designation of Operator...................... (\1\) $140 Sec. 250.143
Suspensions of Operations/Suspensions of Production (\1\) 1,700 Sec. 250.171
(SOO/SOP) Request.....................................
Pipeline Right-of-Way (ROW) Grant Application.......... $2,350 1,100 Sec. 250.1015
Pipeline Conversion of Lease Term to ROW............... 300 180 Sec. 250.1015
Pipeline ROW Assignment................................ 60 160 Sec. 250.1018
500 feet from Lease/Unit Line Production Request....... (\1\) 3,100 Sec. 250.1101
Gas Cap Production Request............................. (\1\) 4,000 Sec. 250.1101
Downhole Commingling Request........................... (\1\) 4,600 Sec. 250.1106
Voluntary Unitization Proposal or Unit Expansion....... (\1\) 10,000 Sec. 250.1303
Unitization Revision and Modification.................. (\1\) 720 Sec. 250.1303
Record Title/Operating Rights (Transfer)............... 185 160 Sec. 256.64
Non-required Document Filing........................... 25 170 Sec. 256.64
----------------------------------------------------------------------------------------------------------------
1 None.
What Type of Fees Does This Regulation Create?
This rule establishes fixed fees for certain OMM services based on
cost recovery principles. A fixed fee remains the same for each request
of a particular type. We considered determining and charging fees on a
case-by-case basis, but proposes to assess fixed fees because of the
broad similarity of the work required to process each request of a
particular type.
Additionally, the fixed fee approach provides more objectivity and
certainty as each applicant faces the same predetermined fee structure.
Finally, a fixed fee is less administratively burdensome on both MMS
and industry than an approach based on tracking ongoing processing
costs of individual documents.
What Are the Fee Amounts Based On?
We considered various factors in determining the proposed fee
amounts. These factors included actual costs, the monetary worth of the
services to the applicant, and whether the services provide a benefit
to the general public. MMS determined that the monetary value of each
of the eligible services was greater than the processing costs, while
the public benefit of the services was small and speculative relative
to the processing costs. MMS concluded that an actual cost method for
calculating fee amounts is the most appropriate way to achieve the cost
recovery objectives of the IOAA statute.
The proposed cost methodology includes the sum of both direct costs
and indirect costs. The direct costs are comprised of the salaries,
benefits, and special materials or equipment (when applicable)
attributed to processing each task-specific function of a request. The
labor component is sub-divided by various steps in each process and by
the hours spent for each employee involved in the task. The indirect
costs include, but are not limited to, items such as office space,
insurance, postage, computers, phones, fax machines, and general
supplies not associated with a task specific request. To recover these
types of costs, an indirect cost rate of 15 percent of the direct costs
is applied.
How Did MMS Determine the Costs To Be Covered by the Proposed Fees?
The team created a template for each service for which a fee is
proposed. The template listed the sub-processes needed to provide each
service. Next, the staff that provided the services filled in the
specific direct cost information associated with each of these
activities. This data was compiled into a cost matrix for all Regions,
request types, and yearly number of transactions, and then consolidated
to set the fees proposed in Sec. 250.125 and Sec. 256.63.
Were There Differences in the Processing Costs and Number of
Transactions Among the Regional Offices?
Yes. These differences were primarily attributable to the varying
levels of offshore oil and gas activity across the Regions. We
reconciled these differences with a weighted-average method that gives
greater weight to costs from Regional offices with heavy workloads, and
thus more expertise, in providing certain services. Using the number of
yearly transactions in each
[[Page 12628]]
Region, we weighted each Region's costs to determine the average fixed
fee that we propose to apply to all Regions. Since the Gulf of Mexico
(GOM) Region has the majority of transactions, most of the proposed
fixed fees are similar to the costs in the GOM Region.
Would the Proposed Fees be Adjusted for Inflation?
Yes. Since we used current salary and expense levels, the cost
estimates reflect current dollars. To keep the costs in line with
inflation, we propose to adjust the fees every five years according to
the Implicit Price Deflator for the Gross Domestic Product (GDP),
starting in 2005 dollars. This inflation index, as published by the
U.S. Department of Commerce, is generally accepted by economists as the
most reliable general price index and used by MMS for other
inflationary adjustments. We propose to escalate for inflation on a
five year basis because we estimate that as a significant interval of
time to reflect inflationary adjustments. Because we would establish
the process for changing fees in this rule, and the application of that
process is simply a mathematical calculation, we would adjust the fees
without publishing a proposed rule for notice and comment, and post
them on our Web site. We would also review our costs for administering
each type of request every two years. If we decide to amend fees based
on something other than the Implicit Price Deflator GDP, we would do so
through proposed rulemaking with a comment period.
Procedural Matters
Public Comment Procedures
All submissions received must include the agency name and RIN for
this rulemaking. Our practice is to make comments, including names and
addresses of respondents, available for public review. E-mail address
is considered a form of address. Individual respondents may request
that we withhold their addresses from the rulemaking record, which we
will honor to the extent allowable by law. There may be circumstances
in which we would withhold from the record a respondent's identity, as
allowable by law. If you wish us to withhold your name and/or address,
you must state this prominently at the beginning of your comment.
However, we will not consider anonymous comments. We will make all
submissions from organizations or businesses, and from individuals
identifying themselves as representatives or officials of organizations
or businesses, available for public inspection in their entirety.
Regulatory Planning and Review (Executive Order 12866)
This document is not a significant rule as determined by the Office
of Management and Budget (OMB) and is not subject to review under
Executive Order 12866.
(1) This proposed rule would not have an annual effect of $100
million or more on the economy. It would not adversely affect in a
material way the economy, productivity, competition, jobs, the
environment, public health or safety, or State, local, or tribal
governments or communities. This rule establishes fees based on cost
recovery principles. Based on historical filings, we project the fees
will raise revenue by approximately $2 million annually.
(2) This proposed rule would not create a serious inconsistency or
otherwise interfere with an action taken or planned by another agency
because the costs incurred are for specific MMS services and other
agencies are not involved in these aspects of the OCS program.
(3) This proposed rule would not alter the budgetary effects of
entitlements, grants, user fees, or loan programs or the rights or
obligations of their recipients. This change will have no effect on the
rights of the recipients of entitlements, grants, user fees, or loan
programs. The fees proposed by this rule are service fees based on cost
recovery, and not user fees.
(4) This proposed rule will not raise novel legal or policy issues.
Regulatory Flexibility Act (RFA)
The Department certifies that this proposed rule would not have a
significant economic effect on a substantial number of small entities
under the RFA (5 U.S.C. 601 et seq.).
This proposed change would affect lessees and operators of leases
in the OCS. This includes about 130 Federal oil and gas lessees and 115
holders of pipeline rights-of-way. Small lessees that operate under
this rule would fall under the Small Business Administration's (SBA)
North American Industry Classification System Codes (NAICS) 211111,
Crude Petroleum and Natural Gas Extraction and 213111, Drilling Oil and
Gas Wells. For these NAICS code classifications, a small company is one
with fewer than 500 employees. Based on these criteria, an estimated 70
percent of these companies are considered small. This proposed rule,
therefore, affects a substantial number of small entities.
The fees proposed in the rule would not have a significant economic
effect on a substantial number of small entities because the fees are
very small compared to normal costs of doing business on the OCS. For
example, depending on water depth and well depth, cost estimates for
drilling a well range from $5 million to $23 million. Thus the proposed
fees, ranging from $140 to $10,000, are dwarfed by the millions of
dollars that industry already commits to exploration, development, and
production.
Additionally, the fees proposed in the rule would apply to both
large and small firms in the same way. Also, applying for MMS services
provides a benefit to the applicant (both large and small) if the
applicant decides to operate in the OCS.
Comments are important. The Small Business and Agriculture
Regulatory Enforcement Ombudsman and 10 Regional Fairness Boards were
established to receive comments from small business about Federal
agency enforcement actions. The Ombudsman will annually evaluate the
enforcement activities and rate each agency's responsiveness to small
business. If you wish to comment on the actions of MMS, call 1-888-734-
3247. You may comment to the Small Business Administration without fear
of retaliation. Disciplinary action for retaliation by an MMS employee
may include suspension or termination from employment with the
Department of the Interior.
Small Business Regulatory Enforcement Fairness Act (SBREFA)
This is not a major rule under the SBREFA (5 U.S.C. 804(2)). This
proposed rule:
(a) Would not have an annual effect on the economy of $100 million
or more.
(b) Would not cause a major increase in costs or prices for
consumers, individual industries, Federal, State, or local government
agencies, or geographic regions.
(c) Would not have significant adverse effects on competition,
employment, investment, productivity, innovation, or the ability of
U.S.-based enterprises to compete with foreign-based enterprises.
Leasing on the U.S. OCS is limited to residents of the U.S. or
companies incorporated in the United States. This rule does not change
that requirement.
Paperwork Reduction Act (PRA) of 1995
The proposed rulemaking related to 30 CFR part 250, subparts A, J,
K, and M, and to 30 CFR part 256, subpart J. The rulemaking affects the
information collections for these regulations but will not change the
approved burden hours, just the associated fees. Therefore, OMB
[[Page 12629]]
has ruled that there is no change in the information collection and
that MMS does not need to make a formal submission by Form OMB 83-I for
this rulemaking. When the rule is finalized, we will submit Form OMB
83-C to modify the fees in each collection.
OMB has approved the information collections for the affected
regulations as 30 CFR part 250, subpart A, OMB Control Number 1010-0114
(expiration 10/31/07); subpart J, 1010-0050 (expiration 1/31/06);
subpart K, 1010-0041 (expiration 7/31/06); and subpart M, 1010-0068
(expiration 8/31/05); and as 30 CFR part 256, subpart J, 1010-0006,
(expiration 3/31/07).
MMS will summarize written responses to this notice and address
them in the final rule. All comments will become a matter of public
record.
Federalism (Executive Order 13132)
With respect to Executive Order 13132, the proposed rule would not
have federalism implications. It would not substantially and directly
affect the relationship between the Federal and State Governments. To
the extent that State and local governments have a role in OCS
activities, this proposed change would not affect that role.
Takings Implication Assessment (Executive Order 12630)
With respect to Executive Order 12630, the proposed rule would not
have significant takings implications. A Takings Implication Assessment
is not required. The rulemaking is not a governmental action capable of
interfering with constitutionally protected property rights.
Civil Justice Reform (Executive Order 12988)
With respect to Executive Order 12988, the Office of the Solicitor
has determined that this proposed rule would not unduly burden the
judicial system, and meets the requirements of Sections 3(a) and
3(b)(2) of the Executive Order.
National Environmental Policy Act (NEPA) of 1969
MMS analyzed this proposed rule using the criteria of the NEPA and
516 Departmental Manual, Chapter 2, and concluded that the preparation
of an environmental analysis which would result in the issuance of a
Finding of No Significant Impact or the preparation of an environmental
impact statement would not be required.
Unfunded Mandate Reform Act (UMRA) of 1995 (Executive Order 12866)
This proposed rule would not impose an unfunded mandate on State,
local, or tribal governments or the private sector of more than $100
million per year. The proposed rule would not have a significant or
unique effect on State, local, or tribal governments or the private
sector. A statement containing the information required by the UMRA (2
U.S.C. 1531 et seq.) is not required. This is because the proposal
would not affect State, local, or tribal governments, and the effect on
the private sector is small.
Consultation and Coordination With Indian Tribal Governments (Executive
Order 13175)
In accordance with Executive Order 13175, this proposed rule does
not have tribal implications that impose substantial direct compliance
costs on Indian tribal governments.
Effects on the Nation's Energy Supply (Executive Order 13211)
Executive Order 13211 requires the agency to prepare a Statement of
Energy Effects when it takes a regulatory action that is identified as
a significant energy action. This proposed rule is not a significant
energy action, and therefore does not require a Statement of Energy
Effects, because it:
(1) Is not a significant regulatory action under Executive Order
12866,
(2) Is not likely to have a significant adverse effect on the
supply, distribution, or use of energy, and
(3) Has not been designated by the Administrator of the Office of
Information and Regulatory Affairs, Office of Management and Budget, as
a significant energy action.
List of Subjects
30 CFR Part 250
Continental shelf, Environmental impact statements, Environmental
protection, Government contracts, Investigations, Mineral royalties,
Oil and gas development and production, Oil and gas exploration, Oil
and gas reserves, Penalties, Pipelines, Public lands-mineral resources,
Public lands--right-of-way, Reporting and recordkeeping requirements,
Sulphur development and production, Sulphur exploration, Surety bonds.
30 CFR Part 256
Administrative practice and procedure, Continental shelf,
Environmental protection, Government contracts, Intergovernmental
relations, Minerals Management Service, Oil and gas exploration, Public
lands-mineral resources, Public lands--rights-of-way, Reporting and
recordkeeping requirements, Surety bonds.
Dated: February 16, 2005.
Chad Calvert,
Acting Assistant Secretary--Land and Minerals Management.
For the reasons stated in the preamble, the Minerals Management
Service (MMS) proposes to amend 30 CFR parts 250 and 256 as follows:
PART 250--OIL AND GAS AND SULPHUR OPERATIONS IN THE OUTER
CONTINENTAL SHELF
1. The authority citation for part 250 continues to read as
follows:
Authority: 43 U.S.C. 1331 et seq.
2. In 30 CFR part 250, subpart A, a new Sec. 250.125 is added and
a new undesignated center heading is added preceding the new Sec.
250.125 to read as follows:
Subpart A--General
* * * * *
Fees
Sec. 250.125 Service fees.
The table in this section shows the fees that you must pay to MMS
for the services listed. All fees are nonrefundable. The fees will be
adjusted every five years, or more frequently as needed, according to
the Implicit Price Deflator for Gross Domestic Product, and the updated
amounts will be posted on our Web site. MMS will re-examine the cost
methodology of the fees every two years. If a significant adjustment is
needed to arrive at the new actual cost, a proposed rule containing the
new fees will be published for comment.
FY 2005 Service Fee Table
------------------------------------------------------------------------
Service Proposed fee 30 CFR citation
------------------------------------------------------------------------
(1) Change In Designation of $140 Sec. 250.143
Operator.........................
(2) Suspension of Operations/ 1,700 Sec. 250.171
Suspension of Production (SOO/
SOP) Request.....................
(3) Pipeline Right-of-Way (ROW) 1,100 Sec. 250.1015
Grant Application................
(4) Pipeline Conversion of Lease 180 Sec. 250.1015
Term to ROW......................
[[Page 12630]]
(5) Pipeline ROW Assignment....... 160 Sec. 250.1018
(6) 500 feet from Lease/Unit Line 3,100 Sec. 250.1101
Production Request...............
(7) Gas Cap Production Request.... 4,000 Sec. 250.1101
(8) Downhole Commingling Request.. 4,600 Sec. 250.1106
(9) Voluntary Unitization Proposal 10,000 Sec. 250.1303
or Unit Expansion................
(10) Unitization Revision and 720 Sec. 250.1303
Modification.....................
------------------------------------------------------------------------
3. In Sec. 250.143, add a new paragraph (d) to read as follows:
Sec. 250.143 How do I designate an operator?
* * * * *
(d) If you change the designated operator on your lease, you must
pay the service fee listed in Sec. 250.125 of this subpart with your
request for a change in designation of operator.
4. In Sec. 250.171, add a new paragraph (e) to read as follows:
Sec. 250.171 How do I request a suspension?
* * * * *
(e) You must pay the service fee listed in Sec. 250.125 of this
subpart with your request for a SOO or SOP.
5. In Sec. 250.1015, paragraph (a) is revised to read as follows:
Sec. 250.1015 Applications for pipeline right-of-way grants.
(a) You must submit an original and three copies of an application
for a new or modified pipeline ROW grant to the Regional Supervisor.
The application must address those items required by Sec. 250.1007 (a)
or (b) of this subpart, as applicable. It must also state the primary
purpose for which you will use the ROW grant. If the ROW has been used
before the application is made, the application must state the date
such use began, by whom, and the date the applicant obtained control of
the improvement. When you file your application, you must pay the
rental required under Sec. 250.1012 of this subpart, as well as the
service fees listed in Sec. 250.125 of this part for a pipeline ROW
grant to install a new pipeline, or to convert an existing lease term
pipeline into a ROW pipeline. An application to modify an approved ROW
grant must be accompanied by the additional rental required under Sec.
250.1012 of this subpart if applicable. You must file a separate
application for each ROW.
* * * * *
6. In Sec. 250.1018, paragraph (b) is revised to read as follows:
Sec. 250.1018 Assignment of pipeline right-of-way grants.
* * * * *
(b) Any application for approval for an assignment, in whole or in
part, of any right, title, or interest in a right-of-way grant must be
accompanied by the same showing of qualifications of the assignees as
is required of an applicant for a ROW in Sec. 250.1015 of this subpart
and must be supported by a statement that the assignee agrees to comply
with and to be bound by the terms and conditions of the ROW grant. The
assignee must satisfy the bonding requirements in Sec. 250.1011 of
this part. No transfer will be recognized unless and until it is first
approved, in writing, by the Regional Supervisor. The assignee must pay
the service fee listed in Sec. 250.125 of this part for a pipeline ROW
assignment request.
7. In Sec. 250.1101, add a new paragraph (f) to read as follows:
Sec. 250.1101 General requirements and classification of reservoirs.
* * * * *
(f) You must pay the service fee listed in Sec. 250.125 of this
part with your request for either a 500 feet from lease/unit line
production interval or to produce from a completion in an associated
gas cap of a sensitive reservoir under this section.
8. In Sec. 250.1106, add a new paragraph (d) to read as follows:
Sec. 250.1106 Downhole commingling.
* * * * *
(d) You must pay the service fee listed in Sec. 250.125 of this
part with your request for downhole commingling.
9. In Sec. 250.1303, add a new paragraph (d) to read as follows:
Sec. 250.1303 How do I apply for voluntary unitization?
* * * * *
(d) You must pay the service fee listed in Sec. 250.125 of this
part with your request for a voluntary unitization proposal or unit
expansion. Additionally, you must pay the non-refundable service fee
listed in Sec. 250.125 with your request for unitization revision and
modification.
PART 256--LEASING OF SULPHUR OR OIL AND GAS IN THE OUTER
CONTINENTAL SHELF
10. The authority citation for 30 CFR part 256 continues to read as
follows:
Authority: 43 U.S.C. 1331 et seq.; 42 U.S.C. 6213.
11. Add a new Sec. 256.63 to read as follows:
Sec. 256. 63 Service fees.
The table in this section shows the fees that you must pay to MMS
for the services listed. All fees are nonrefundable. The fees will be
adjusted every five years, or more frequently as needed, according to
the Implicit Price Deflator for Gross Domestic Product, and the updated
amounts will be posted on our Web site. MMS will re-examine the cost
methodology of the fees every two years. If a significant adjustment is
needed to arrive at the new actual cost, a proposed rule containing the
new fees will be published for comment.
FY 2005 Service Fee Table
------------------------------------------------------------------------
Service Proposed fee 30 CFR citation
------------------------------------------------------------------------
(1) Record Title/Operating Rights $160 Sec. 256.64
(Transfer).......................
(2) Non-required Document Filing.. 170 Sec. 256.64
------------------------------------------------------------------------
12. In Sec. 256.64, paragraph (a)(8) is revised to read as
follows:
Sec. 256.64 How to file transfers.
* * * * *
(a) * * *
[[Page 12631]]
(8) You must pay the service fee listed in Sec. 256.63 of this
subpart with your application for approval of any instrument of
transfer you are required to file (Record Title/Operating Rights
(Transfer) Fee). Where multiple transfers of interest are included in a
single instrument, a separate fee applies to each individual transfer
of interest. For any document you are not required to file by these
regulations but which you submit for record purposes per lease
affected, you must also pay the service fee listed in Sec. 256.63
(Non-required Document Filing Fee). Such documents may be rejected at
the discretion of the authorized officer.
* * * * *
[FR Doc. 05-4999 Filed 3-14-05; 8:45 am]
BILLING CODE 4310-MR-P
