Agency Information Collection Activities: Proposed Collection, Comment Request, 34494-34505 [05-11682]
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Federal Register / Vol. 70, No. 113 / Tuesday, June 14, 2005 / Notices
endangered or threatened based on one
or more of the following five factors:
A. The present or threatened
destruction, modification, or
curtailment of its habitat or range;
B. Overutilization for commercial,
recreational, scientific, or educational
purposes;
C. Disease or predation;
D. The inadequacy of existing
regulatory mechanisms; or
E. Other natural or manmade factors
affecting its continued existence.
Section 4(a)(1) of the Act requires that
our determination be made on the basis
of the best scientific and commercial
data available.
What Could Happen as a Result of This
Review?
If we find that there is new
information concerning any of these 25
species indicating that a change in
classification may be warranted, we may
propose a new rule that could do one of
the following: (a) Reclassify the species
from endangered to threatened
(downlist); (b) reclassify the species
from threatened to endangered (uplist);
or (c) delist the species. If we determine
that a change in classification is not
warranted, then these species will
remain on the List under their current
status.
Public Solicitation of New Information
We request any new information
concerning the status of these 25
species. See ‘‘What information is
considered in the review?’’ heading for
specific criteria. Information submitted
should be supported by documentation
such as maps, bibliographic references,
methods used to gather and analyze the
data, and/or copies of any pertinent
publications, reports, or letters by
knowledgeable sources. Our practice is
to make comments, including names/
home addresses of respondents,
available for public review. Individual
respondents may request that we
withhold their home addresses from the
supporting record, which we will honor
to the extent allowable by law. There
may be circumstances in which we may
withhold from the supporting record a
respondent’s identity, as allowable by
law. If you wish to withhold your name
and/or address, you must state this
prominently at the beginning of your
comment. We will not consider
anonymous comments, however, 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.
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Authority
DEPARTMENT OF THE INTERIOR
This document is published under the
authority of the Endangered Species Act
(16 U.S.C. 1531 et seq.).
Bureau of Land Management
[WY–957–05–1910–BJ–5RK4]
Bureau of Land Management,
Interior.
ACTION: Notice of filing of Plats of
Survey, Wyoming.
Dated: May 13, 2005.
Cynthia K. Dohner,
Acting Regional Director, Southeast Region.
[FR Doc. 05–11704 Filed 6–13–05; 8:45 am]
AGENCY:
BILLING CODE 4310–55–P
SUMMARY: The Bureau of Land
Management (BLM) is scheduled to file
the plats of surveys of the lands
described below thirty (30) calendar
days from the date of this publication in
the BLM Wyoming State Office,
Cheyenne, Wyoming.
FOR FURTHER INFORMATION CONTACT:
Bureau of Land Management, 5353
Yellowstone Road, P.O. Box 1828,
Cheyenne, Wyoming 82003.
SUPPLEMENTARY INFORMATION: These
surveys were executed at the request of
the Bureau of Indian Affairs and are
necessary for the managements of lands.
The lands surveyed are:
The plat and field notes representing the
dependent resurvey of a portion of the
subdivisional lines, Township 2
North, Range 2 East, Wind River
Meridian, Wyoming, was accepted
June 8, 2005.
Copies of the preceding described plat
and field notes are available to the
public at $1.10 each.
DEPARTMENT OF THE INTERIOR
Bureau of Land Management
[ES–960–1420–BJ–TRST] ES–053572,
Group No. 163, Wisconsin]
Eastern States: Filing of Plat of Survey
Bureau of Land Management,
Interior.
ACTION: Notice of Filing of Plat of
Survey; Wisconsin.
AGENCY:
SUMMARY: The Bureau of Land
Management (BLM) will file the plat of
survey of the lands described below in
the BLM-Eastern States, Springfield,
Virginia, 30 calendar days from the date
of publication in the Federal Register.
FOR FURTHER INFORMATION CONTACT:
Bureau of Land Management, 7450
Boston Boulevard, Springfield, Virginia
22153. Attn: Cadastral Survey.
SUPPLEMENTARY INFORMATION: This
survey was requested by the Bureau of
Indian Affairs. The lands we surveyed
are:
Fourth Principal Meridian, Wisconsin
T. 51 N., R. 4 W.
The plat of survey represents the
dependent resurvey of a portion of the
north boundary, a portion of the
subdivisional lines, and the survey of
the subdivision of section 6, Township
51 North, Range 4 West, Fourth
Principal Meridian, Wisconsin, and was
accepted June 7, 2005. We will place a
copy of the plat we described in the
open files. It will be available to the
public as a matter of information.
If BLM receives a protest against this
survey, as shown on the plat, prior to
the date of the official filing, we will
stay the filing pending our
consideration of the protest.
We will not officially file the plat
until the day after we have accepted or
dismissed all protests and they have
become final, including decisions on
appeals.
Dated: June 7, 2005.
Stephen D. Douglas,
Chief Cadastral Surveyor.
[FR Doc. 05–11697 Filed 6–13–05; 8:45 am]
BILLING CODE 4310–GJ–P
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Dated: June 8, 2005.
John P. Lee,
Chief Cadastral Surveyor, Division of Support
Services.
[FR Doc. 05–11699 Filed 6–13–05; 8:45 am]
BILLING CODE 4467–22–P
DEPARTMENT OF THE INTERIOR
Minerals Management Service
Agency Information Collection
Activities: Proposed Collection,
Comment Request
Minerals Management Service
(MMS), Interior.
ACTION: Notice of a revision of a
currently approved information
collection (OMB Control Number 1010–
0103).
AGENCY:
SUMMARY: To comply with the
Paperwork Reduction Act (PRA) of
1995, 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.
The information collection request (ICR)
is titled ‘‘30 CFR Part 202—
ROYALTIES, Subpart J—Gas Production
From Indian Leases, and Part 206—
PRODUCT VALUATION, Subpart B—
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Indian Oil, and Subpart E—Indian Gas
(Forms MMS–4109, Gas Processing
Allowance Summary Report; MMS–
4110, Oil Transportation Allowance
Report; MMS–4295, Gas Transportation
Allowance Report; MMS–4410,
Accounting for Comparison [Dual
Accounting]; and MMS–4411, Safety
Net Report).’’ The title of this ICR
clarifies the regulatory language we are
covering under 30 CFR parts 202 and
206, for Indian oil and gas leases, and
incorporates relevant portions of six
previous ICRs. The six ICRs now
consolidated into this ICR were
previously titled:
• 1010–0061: 30 CFR Part 206,
Subpart B—Indian Oil, § 206.55—
Determination of Transportation
Allowances (Form MMS–4110, Oil
Transportation Allowance Report);
• 1010–0075: 30 CFR Part 206,
Subpart E—Indian Gas, § 206.178—How
do I determine a transportation
allowance? (Form MMS–4295, Gas
Transportation Allowance Report), and
§ 206.180—How do I determine an
actual processing allowance? (Form
MMS–4109, Gas Processing Allowance
Summary Report);
• 1010–0095: 30 CFR Part 206—
Product Valuation, Subpart B—Indian
Oil, § 206.54; Subpart C—Federal Oil,
§ 206.109; Subpart D—Federal Gas,
§§ 206.156 and 206.158; and Subpart
E—Indian Gas, § 206.177 (Form MMS–
4393, Request to Exceed Regulatory
Allowance Limitation). Only Indian oil
and gas citations and burden hours are
covered in this ICR. Form MMS–4393 is
also used for Federal oil and gas
citations and is retained with ICR 1010–
0136 (expires May 31, 2006), where
most of the burden hours are incurred;
• 1010–0103: 30 CFR Part 206,
Subpart E—Indian Gas (Form MMS–
4411, Safety Net Report);
• 1010–0104: 30 CFR Part 206,
Subpart E—Indian Gas, §§ 206.172,
206.173, and 206.176 (Form MMS–4410,
Accounting for Comparison [Dual
Accounting]); and
• 1010–0138: 30 CFR Part 206,
Subpart B, Establishing Oil Value on
Royalty Due on Indian Leases.
DATES: Submit written comments on or
before August 15, 2005.
ADDRESSES: Submit written comments
to Sharron L. Gebhardt, Lead Regulatory
Specialist, Minerals Management
Service, Minerals Revenue Management,
P.O. Box 25165, MS 302B2, Denver,
Colorado 80225. If you use an overnight
courier service, our courier address is
Building 85, Room A–614, Denver
Federal Center, Denver, Colorado 80225.
You may also e-mail your comments to
us at mrm.comments@mms.gov. Include
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the title of the information collection
and the OMB control number in the
‘‘Attention’’ line of your comment. Also
include your name and return address.
Submit electronic comments as an
ASCII file, avoiding the use of special
characters and any form of encryption.
If you do not receive a confirmation that
we have received your e-mail, contact
Ms. Gebhardt at (303) 231–3211.
FOR FURTHER INFORMATION CONTACT:
Sharron L. Gebhardt, telephone (303)
231–3211, FAX (303) 231–3781, or email sharron.gebhardt@mms.gov.
SUPPLEMENTARY INFORMATION:
Title: ‘‘30 CFR Part 202—ROYALTIES,
Subpart J—Gas Production From Indian
Leases, and Part 206—PRODUCT
VALUATION, Subpart B—Indian Oil,
and Subpart E—Indian Gas (Forms
MMS–4109, Gas Processing Allowance
Summary Report; MMS–4110, Oil
Transportation Allowance Report;
MMS–4295, Gas Transportation
Allowance Report; MMS–4410,
Accounting for Comparison [Dual
Accounting]; and MMS–4411, Safety
Net Report).’’
OMB Control Number: 1010–0103.
Bureau Form Number: Forms MMS–
4109, MMS–4110, MMS–4295, MMS–
4410, and MMS–4411.
Abstract: The Secretary of the U.S.
Department of the Interior is responsible
for collecting royalties from lessees who
produce minerals from leased Federal
and Indian lands. The Secretary is
required by various laws to manage
mineral resources production on
Federal and Indian lands, collect the
royalties due, and distribute the funds
in accordance with those laws.
The Secretary also has a trust
responsibility to manage Indian lands
and seek advice and information from
Indian beneficiaries. The MMS performs
the royalty management functions and
assists the Secretary in carrying out the
Department’s trust responsibility for
Indian lands.
Applicable Citations
Applicable citations of the laws
pertaining to mineral leases on Indian
lands include 25 U.S.C. 396d (Chapter
12—Lease, Sale or Surrender of Allotted
or Unallotted Lands); 25 U.S.C. 2103
(Indian Mineral Development Act of
1982); and Public Law 97–451—Jan. 12,
1983 (Federal Oil and Gas Royalty
Management Act of 1982 [FOGRMA]).
The CFR citations we are covering in
this ICR are 30 CFR part 202, subpart J;
and part 206, subparts B and E.
Background
When a company or an individual
enters into a lease to explore, develop,
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produce, and dispose of minerals from
Federal or Indian lands, that company
or individual agrees to pay the lessor a
share (royalty) of the value received
from production from the leased lands.
The lease creates a business relationship
between the lessor and the lessee. The
lessee is required to report various kinds
of information to the lessor relative to
the disposition of the leased minerals.
Such information is similar to data
reported to private and public mineral
interest owners and is generally
available within the records of the
lessee or others involved in developing,
transporting, processing, purchasing, or
selling of such minerals. The
information MMS collects includes data
necessary to ensure that the royalties are
paid appropriately.
Regulations at 30 CFR part 202,
subpart J, govern royalties on gas
production from Indian leases.
Regulations at 30 CFR part 206, subparts
B and E, govern the valuation of oil and
gas produced from leases on Indian
lands. Indian tribes and individual
Indian mineral owners receive all
royalties generated from their lands.
Determining product valuation is
essential to ensure that Indian tribes and
individual Indian mineral owners
receive payment on the full value of the
minerals removed from their lands.
Tribal representatives have expressed
their concern that the Secretary
continue to fulfill all trust and fiduciary
duties and ensure that the correct
royalty is received from Indian lands.
Failure to collect the data described in
this information collection could result
in the undervaluation of leased minerals
on Indian lands.
Indian Oil
Regulations at 30 CFR part 206,
subpart B, govern the valuation for
royalty purposes of oil produced from
Indian oil and gas leases (tribal and
allotted) and must be consistent with
mineral leasing laws, other applicable
laws, and lease terms.
Regulations at 30 CFR 206.52 explain
how lessees must determine the value of
oil produced from Indian oil and gas
leases. Generally, the regulations
provide that lessees determine the value
of oil, based upon the gross proceeds
under an arm’s-length contract, a series
of benchmarks under a non-arm’s-length
contract, and major portion analysis.
These oil valuation methods are eligible
for applicable transportation
allowances.
Transportation Allowances
Under certain circumstances, the
regulations authorize lessees to deduct
from royalty payments the reasonable
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actual costs of transporting the royalty
portion of produced minerals from the
lease to a sales point not in the
immediate lease area. The MMS verifies
transportation allowances during the
product valuation verification to
determine if the lessee reported and
paid the proper royalty amount.
The MMS and tribal personnel use the
information collected on Form MMS–
4110, Oil Transportation Allowance
Report, to evaluate whether the
transportation allowances reported and
claimed by lessees are within regulatory
allowance limitations. The regulations
establish a limit on transportation
allowance deductions for oil at 50
percent of the value of the oil at the
point of sale. To receive a transportation
deduction, lessees must submit Form
MMS–4110 before or in the same month
that they report the transportation
allowance on Form MMS–2014, Report
of Sales and Royalty Remittance (OMB
Control Number 1010–0140, expiration
date October 31, 2006). After the initial
reporting period and for succeeding
reporting periods, lessees must submit
page one of Form MMS–4110 (and
Schedule 1) within 3 months after the
end of the calendar year, or after the
applicable contract or rate terminates or
is modified or amended, whichever is
earlier, unless MMS approves a longer
period.
Request To Exceed Regulatory
Allowance Limitations for Oil
Transportation
The MMS may approve an oil
transportation allowance in excess of 50
percent upon proper application from
the lessee. To request permission to
exceed a regulatory allowance limit,
lessees must submit a letter to MMS
explaining why a higher allowance limit
is necessary and provide supporting
documentation, including a completed
Form MMS–4393, Request to Exceed
Regulatory Allowance Limitation. This
form provides MMS with the data
necessary to make a decision whether to
approve or deny the request and track
deductions on royalty reports. Data
reported on the form is also subject to
subsequent audit and adjustment.
Indian Gas
Regulations at 30 CFR part 206,
subpart E, govern the valuation for
royalty purposes of natural gas
produced from Indian oil and gas leases.
The regulations apply to all gas
production from Indian oil and gas
leases (tribal and allotted), except leases
on the Osage Indian Reservation.
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Safety Net Reporting
The safety net calculation establishes
the minimum value, for royalty
purposes, of natural gas production
from Indian oil and gas leases. This
reporting requirement ensures that
Indian lessors receive all royalties due
and aids MMS compliance efforts.
The regulations require lessees to
submit Form MMS–4411, Safety Net
Report, when gas production from an
Indian oil or gas lease is sold beyond the
first index pricing point. The lessee
submits safety net prices, for the
previous calendar year, to MMS
annually (by June 30) using this form.
Dual Accounting
Most Indian leases contain the
requirement to perform accounting for
comparison (dual accounting) for gas
produced from the lease. Lessees must
elect to perform actual dual accounting
as defined in 30 CFR 206.176 or
alternative dual accounting as defined
in 30 CFR 206.173.
According to 30 CFR 206.176, dual
accounting is defined as the greater of
the following two values:
(1) The value of gas prior to
processing, less any applicable
allowances, or
(2) The combined value of residue gas
and gas plant products resulting from
processing the gas, less any applicable
allowances, plus any drip condensate
associated with the processed gas
recovered downstream of the point of
royalty settlement, without resorting to
processing, less applicable allowances.
Lessees use Form MMS–4410,
Accounting for Comparison [Dual
Accounting], to certify that dual
accounting is not required on an Indian
lease or to make an election for actual
or alternative dual accounting for Indian
leases.
Form MMS–4410 (Part A),
Certification for Not Performing Dual
Accounting, requires lessees to identify
the MMS-designated areas where the
leases are located and provide specific
justification for not performing dual
accounting. Part A is a one-time
notification, until any changes occur in
gas disposition. Part A lists the
following acceptable reasons for not
performing dual accounting: (1) The
lease terms do not require dual
accounting; (2) none of the gas from the
lease is ever processed; (3) gas has a Btu
content of 1000 Btu’s per cubic foot or
less at lease’s facility measurement
point(s); (4) none of the gas from the
lease is processed until after gas flows
into a pipeline with an index located in
an index zone; and (5) none of the gas
from the lease is processed until after
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gas flows into a mainline pipeline not
located in an index zone.
Form MMS–4410 (Part B), Election to
Perform Actual Dual Accounting or
Alternative Dual Accounting, allows
MMS to collect the lessee’s elections to
perform actual dual accounting or
alternative dual accounting. A lessee
makes an election by checking either the
actual or alternative dual accounting
box for each MMS-designated area
where its leases are located. Part B also
includes the lessee’s lease prefixes
within each MMS-designated area to
assist lessees in making the appropriate
election. The election to perform actual
or alternative dual accounting applies to
all of a lessee’s Indian leases in each
MMS-designated area. The first election
to use the alternative dual accounting is
effective from the time of election
through the end of the following
calendar year. Thereafter, each election
to use the alternative dual accounting
methodology must remain in effect for
2 calendar years. However, lessees may
return to the actual dual accounting
methodology only at the beginning of
the next election period or with written
approval from MMS and the tribal
lessors for tribal leases, and from MMS
for Indian allotted leases in the MMSdesignated area (30 CFR 206.173(a)).
Transportation Allowances
Under certain circumstances, lessees
are authorized to deduct from royalty
payments the reasonable actual costs of
transporting the royalty portion of
produced minerals from the lease to a
processing or sales point not in the
immediate lease area. Transportation
allowances are part of the product
valuation process MMS uses to
determine if the lessee is reporting and
paying the proper royalty amount.
The MMS and tribal personnel use the
information collected on Form MMS–
4295, Gas Transportation Allowance
Report, to evaluate whether the nonarm’s-length or no contract
transportation allowances reported and
claimed by lessees are reasonable, actual
costs and are within regulatory
allowance limitations. To take a nonarm’s-length transportation deduction, a
lessee must submit Form MMS–4295
within 3 months after the end of the 12month period to which the allowance
applies. The regulations establish a limit
on transportation allowance deductions
for gas at 50 percent of the value of the
gas at the point of sale.
Request To Exceed Regulatory
Allowance Limitation for Gas
Transportation
The MMS may approve a gas
transportation allowance in excess of 50
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percent upon proper application from
the lessee. To request permission to
exceed a regulatory allowance limit,
lessees must submit a letter to MMS
explaining why a higher allowance limit
is necessary and provide supporting
documentation, including a completed
Form MMS–4393, Request to Exceed
Regulatory Allowance Limitation. This
form provides MMS with the data
necessary to make a decision whether to
approve or deny the request and track
deductions on royalty reports. Data
reported on the form is also subject to
subsequent audit and adjustment.
Processing Allowances
When gas is processed for the
recovery of gas plant products, lessees
may claim a processing allowance. The
MMS normally accepts the cost as stated
in the lessee’s arm’s-length processing
contract as being representative of the
cost of the processing allowance. In
those instances where gas is being
processed through a lessee-owned plant,
the lessee must base processing costs on
the actual plant operating and
maintenance expenses, depreciation,
and a reasonable return on investment.
The allowance is expressed as a cost per
unit of individual gas plant products.
Lessees may take processing allowances
as a deduction from royalty payments.
The MMS and tribal personnel use the
information collected on Form MMS–
4109, Gas Processing Allowance
Summary Report, to evaluate whether
the non-arm’s-length or no contract
processing allowances reported and
claimed by lessees are reasonable, actual
costs and are within regulatory
allowance limitations. To take a nonarm’s-length processing deduction,
lessees must submit Form MMS–4109
within 3 months after the end of the 12month period to which the allowance
applies. The regulations establish a limit
of 66 2⁄3 percent of the value of each gas
plant product as an allowable gas
processing deduction.
Summary
The MMS is requesting OMB’s
approval to continue to collect this
information. Not collecting this
information would limit the Secretary’s
ability to discharge his/her duties and
may also result in loss of royalty
payments to Indian tribes and
individual Indian mineral owners.
Proprietary information submitted to
MMS under this collection is protected,
and no items of a sensitive nature are
collected.
In some cases the requirement to
respond is mandatory, such as reporting
royalty values or declaring the type of
dual accounting election the lessee
chooses to perform. In other cases, it is
voluntary, such as asking permission to
exceed a transportation allowance limit.
For example, a lessee can request, but is
not required to apply for, a
transportation allowance deduction in
excess of the regulatory limits. However,
if no request is made, the transportation
limitation is set by regulation.
Frequency of Response: Annually,
monthly, and on occasion.
Estimated Number and Description of
Respondents: 125 Indian lessees/lessors.
Estimated Annual Reporting and
Recordkeeping ‘‘Hour’’ Burden: 1,285
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
Reporting and recordkeeping requirements1
30 CFR
Hour burden
Average number of annual
responses
Annual burden
hours
202—ROYALTIES
Subpart J.—Gas Production From Indian Leases
202.551(c) .................
How do I determine the volume of production for which I must
pay royalty if my lease is not in an approved Federal unit or
communitization agreement (AFA)? * * *
1
1
1
(c) You and all other persons paying royalties on the lease may
ask MMS for permission * * *
206—PRODUCT VALUATION
Subpart B—Indian Oil
206.52(b)(1)(i) and
(iii), (b)(2), and (d).
206.52(e)(2) ...............
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Valuation standards .........................................................................
(b)(1)(i) * * * The lessee shall have the burden of demonstrating
that its contract is arm’s-length. * * *
(iii) * * * When MMS determines that the value may be unreasonable, MMS will notify the lessee and give the lessee an opportunity to provide written information justifying the lessee’s
value. * * *
(b)(2) MMS may require a lessee to certify that its arm’s-length
contract provisions include all of the consideration to be paid by
the buyer, either directly or indirectly, for the oil.
(d) Any Indian lessee will make available, upon request to the authorized MMS or Indian representatives, to the Office of the Inspector General of the Department of the Interior, or other persons authorized to receive such information, arm’s-length sales
and volume data for like-quality production sold, purchased, or
otherwise obtained by the lessee from the field or area or from
nearby fields or areas.
Valuation standards .........................................................................
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PRODUCE RECORDS
The Office of Regulatory Affairs (ORA) determined
that the audit process is not covered by the PRA
because MMS staff asks non-standard questions to
resolve exceptions.
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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Reporting and recordkeeping requirements1
30 CFR
206.52(g) ...................
206.54(b)(2) ...............
206.55(a)(1)(i) ...........
206.55(a)(2)(i) ...........
206.55(a)(2)(ii) ...........
206.55(a)(3) ...............
206.55(b)(1) ...............
206.55(b)(1) ...............
206.55(b)(2)(iv) ..........
206.55(b)(2)(iv)(A) .....
206.55(b)(3)(i) ...........
206.55(b)(3)(ii) ...........
206.55(b)(4) ...............
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Hour burden
(e)(2) A lessee shall notify MMS if it has determined value under
paragraph (c)(4) or (c)(5) of this section.* * * The letter shall
identify the valuation method to be used and contain a brief description of the procedure to be followed. * * *
Valuation standards .........................................................................
(g) The lessee may request a value determination from MMS.
* * * The lessee shall submit all available data relevant to its
proposal. * * *
Transportation allowances—general ...............................................
(b)(2) Upon request of a lessee, MMS may approve a transportation allowance deduction in excess of the limitation prescribed
by paragraph (b)(1) of this section. * * * An application for exception (using Form MMS–4393, Request to Exceed Regulatory Allowance Limitation) shall contain all relevant and supporting documentation necessary for MMS to make a determination. * * *
Determination of transportation allowances ....................................
(a) Arm’s-length transportation contracts
(1)(i) * * * Before any deduction may be taken, the lessee must
submit a completed page one of Form MMS–4110 (and Schedule 1), Oil Transportation Allowance Report * * *
Determination of transportation allowances ....................................
(a) Arm’s-length transportation contracts
(2)(i) * * * Except as provided in this paragraph, no allowance
may be taken for the costs of transporting lease production
which is not royalty-bearing without MMS approval.
Determination of transportation allowances ....................................
(a) Arm’s-length transportation contracts.
(2)(ii) Notwithstanding the requirements of paragraph (i), the lessee may propose to MMS a cost allocation method on the
basis of the values of the products transported. * * *
Determination of transportation allowances ....................................
(a) Arm’s-length transportation contracts.
(3) If an arm’s-length transportation contract includes both gaseous and liquid products, and the transportation costs attributable to each product cannot be determined from the contract,
the lessee shall propose an allocation procedure to MMS. * * *
The lessee shall submit all available data to support its proposal. * * *
Determination of transportation allowances ....................................
(b) Non-arm’s-length or no contract
(1) * * * A transportation allowance may be claimed retroactively
for a period of not more than 3 months prior to the first day of
the month that Form MMS–4110 is filed with MMS, unless
MMS approves a longer period upon a showing of good cause
by the lessee. * * *
Determination of transportation allowances ....................................
(b) Non-arm’s-length or no contract
(1) * * * When necessary or appropriate, MMS may direct a lessee to modify its actual transportation allowance deduction
Determination of transportation allowances ....................................
(b) Non-arm’s-length or no contract.
(2)(iv) * * * After a lessee has elected to use either method for a
transportation system, the lessee may not later elect to change
to the other alternative without approval of MMS.
Determination of transportation allowances ....................................
(b) Non-arm’s-length or no contract.
(2)(iv)(A) * * * After an election is made, the lessee may not
change methods without MMS approval. * * *
Determination of transportation allowances ....................................
(b) Non-arm’s-length or no contract.
(3)(i) * * * Except as provided in this paragraph, the lessee may
not take an allowance for transporting lease production which is
not royalty bearing without MMS approval.
Determination of transportation allowances ....................................
(b) Non-arm’s-length or no contract.
(3)(ii) Notwithstanding the requirements of paragraph (i), the lessee may propose to MMS a cost allocation method on the
basis of the values of the products transported. * * *
Determination of transportation allowances ....................................
20:14 Jun 13, 2005
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40
4.25
Average number of annual
responses
Annual burden
hours
1
40
1
4.25
Burden covered under § 206.55(c)(1)(i) and (iii).
Burden covered under § 206.55(a)(3).
20
1
20
40
1
40
Burden covered under § 206.55(c)(2)(i), and
(c)(2)(iii).
Burden covered under OMB Control Number 1010–
0140 (expires 10/31/2006). Burden covered under
§ 210.52.
E:\FR\FM\14JNN1.SGM
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1
20
20
1
20
40
1
40
20
1
20
20
1
20
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Federal Register / Vol. 70, No. 113 / Tuesday, June 14, 2005 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Reporting and recordkeeping requirements1
30 CFR
206.55(b)(5) ...............
206.55(c)(1)(i) ............
206.558(c)(1)(iii) ........
206.55(c)(1)(iv) ..........
206.55(c)(2)(i) ............
206.55(c)(2)(iii) ..........
206.55(c)(2)(iv) ..........
206.55(c)(2)(v) ...........
VerDate jul<14>2003
Hour burden
(b) Non-arm’s-length or no contract.
(4) Where both gaseous and liquid products are transported
through the same transportation system, the lessee shall propose a cost allocation procedure to MMS. * * * The lessee
shall submit all available data to support its proposal. * * *
Determination of transportation allowances ....................................
(b) Non-arm’s-length or no contract.
(5) A lessee may apply to MMS for an exception from the requirement that it compute actual costs in accordance with paragraphs (b)(1) through (b)(4) of this section. * * *
Determination of transportation allowances ....................................
(c) Reporting requirements.
(1) Arm’s-length contracts. (i) With the exception of those transportation allowances specified in paragraphs (c)(1)(v) and
(c)(1)(vi) of this section, the lessee shall submit page one of the
initial Form MMS–4110 (and Schedule 1), Oil Transportation Allowance Report, prior to, or at the same time as, the transportation allowance determined under an arm’s-length contract, is
reported on Form MMS–2014, Report of Sales and Royalty Remittance. * * *
Determination of transportation .......................................................
(c) Reporting requirements. .............................................................
(1) Arm’s-length contracts. (iii) After the initial reporting period and
for succeeding reporting periods, lessees must submit page
one of Form MMS–4110 (and Schedule 1) within 3 months
after the end of the calendar year, or after the applicable contract or rate terminates or is modified or amended, whichever is
earlier, unless MMS approves a longer period (during which period the lessee shall continue to use the allowance from the
previous reporting period).
Determination of transportation allowances ....................................
(c) Reporting requirements.
(1) Arm’s-length contracts. (iv) MMS may require that a lessee
submit arm’s-length transportation contracts, production agreements, operating agreements, and related documents. Documents shall be submitted within a reasonable time, as determined by MMS.
Determination of transportation allowances ....................................
(c) Reporting requirements.
(2) Non-arm’s-length or no contract. (i) With the exception of
those transportation allowances specified in paragraphs
(c)(2)(v), (c)(2)(vii) and (c)(2)(viii) of this section, the lessee
shall submit an initial FormMMS–4100 prior to, or at the same
time as, the transportation allowance determined under a nonarm’s-length contract or no-contract situationis reported on
Form MMS–2014, * * * The initial report may be based upon
estimated costs.
Determination of transportation allowances ....................................
(c) Reporting requirements.
(2) Non-arm’s-length or no contract. (iii) For calendar-year reporting periods succeeding the initial reporting period, the lessee
shall submit a completed Form MMS–4110 containing the actual costs for the previous reporting period. If oil transportation
is continuing, the lessee shall include on Form MMS–4410 its
estimated costs for the next calendar year. * * * MMS must receive the Form MMS–4110 within 3 months after the end of the
previous reporting period, unless MMS approves a longer period (during which period the lessee shall continue to use the
allowance from the previous reporting period).
Determination of transportation allowances ....................................
(c) Reporting requirements.
(2) Non-arm’s-length or no contract. (iv) For new transportation
facilities or arrangements, the lessee’s initial Form MMS–4100
shall include estimates of the allowable oil transportation costs
for the applicable period. * * *
Determination of transportation allowances ....................................
(c) Reporting requirements.
(2) Non-arm’s-length or no contract. (v) * * * only those allowances that have been approved by MMS in writing * * *
20:14 Jun 13, 2005
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Average number of annual
responses
Annual burden
hours
20
1
20
4
3
12
4
..........................
3
........................
12
..........................
PRODUCE RECORDS
The ORA determined that the audit process is not
covered by the PRA because MMS staff asks nonstandard questions to resolve exceptions.
6
3
18
6
3
18
Burden covered under § 206.55(c)(2)(i).
Burden covered under § 206.55(c)(2)(i).
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Federal Register / Vol. 70, No. 113 / Tuesday, June 14, 2005 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
30 CFR
Reporting and recordkeeping requirements1
206.55(c)(2)(vi) ..........
Determination of transportation allowances ....................................
(c) Reporting requirements.
(2) Non-arm’s-length or no contract. (vi) Upon request by MMS,
the lessee shall submit all data used to prepare its Form MMS–
4410. The data shall be provided within a reasonable period of
time, as determined by MMS
Determination of transportation allowances ....................................
(c) Reporting requirements.
(4) Transportationallowances must be reported as a separate line
item on Form MMS–2014 * * *
206.55(c)(4)(v) and
(e)(2).
Hour burden
Average number of annual
responses
Annual burden
hours
PRODUCE RECORDS
The ORA determined that the audit process is not
covered by the PRA because MMS staff asks nonstandard questions to resolve exceptions.
Burden covered under OMB Control Number 1010–
0140 (expires 10/31/2006). Burden covered under
§ 210.52.
(e) Adjustments.
(2) For lessees transporting production from Indian leases, the
lessee must submit a corrected Form MMS–2014 to reflect actual costs * * *
206–PRODUCT VALUATION
Subpart E—Indian Gas
206.172(b)(1)(ii) .........
206.172(e)(6)(i) and
(iii).
206.172(b)(1)(ii) .........
206.172(f)(1)(ii), (f)(2),
and (f)(3).
206.173(a)(1)
206.173(a)(1)
VerDate jul<14>2003
How do I value gas produced from leases in an index zone? ........
(b) Valuing residue gas and gas before processing.
(1)(ii) Gas production that you certify on Form MMS–4410, * * *
is not processed before it flows into a pipeline with an index but
which may be processed later * * *
(Part A of Form MMS–4410)
How do I value gas produced from leases in an index zone? ........
(e) Determining the minimum value for royalty purposes of gas
sold beyond the first index pricing point.
(6)(i) You must report the safety net price for each index zone to
MMS on Form MMS–4411, Safety Net Report, no later than
June 30 following each calendar year; * * * (iii) MMS may
order you to amend your safety net price within one year from
the date your Form MMS–4411 is due or is filed, whichever is
later. * * *
How do I value gas produced from leases in an index zone? ........
(e) Determining the minimum value for royalty purposes of gas
sold beyond the first index pricing point.
(6)(ii) You must pay and report on Form MMS–2014 additional
royalties due no later than June 30 following each calendar
year * * *
How do I value gas produced from leases in an index zone? ........
(f) Exlcuding some or all tribal leases from valuation under this
section.
(1) An Indian tribe may ask MMS to exclude some or all of its
leases from valuation under this section * * * (ii) If an Indian
tribe requests exclusion from an index zone for less than all of
its leases, MMS will approve the request only if the excluded
leases may be segregated into one or more groups based on
separate fields within the reservation.
(2) An Indian tribe may ask MMS to terminate exclusion of its
leases from valuation under this section. * * *.
(3) The Indian tribe’s request to MMS under either paragraph
(f)(1) or (2) of this section must be in the form of a tribal resolution. * * *.
How do I calculate the alternative methodology for dual accounting?.
(a) Electing a dual accounting method.
(1) * * * You may elect to perform the dual accounting calculation according to either § 206.176(a) (called actual dual accounting), or paragraph (b) of this section (called the alternative
methodology for dual accounting).
(Part B of Form MMS–4410)
How do I calculate the alternative methodology for dual accounting?.
(a) electing a dual accounting method.
(2) You must make a separate election to use the alternative
methodology for dual accounting for your Indian leases in each
MMS-designated area. * * *
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25
100
3
20
60
Burden covered under OMB Control Number 1010–
0140 (expires 10/31/2006). Burden covered under
§ 210.52.
40
1
40
2
35
70
Burden covered under § 206.173(a)(1).
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Federal Register / Vol. 70, No. 113 / Tuesday, June 14, 2005 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Reporting and recordkeeping requirements1
30 CFR
206.174(a)(4)(ii)
206.174(b)(1)(i) and
(iii); (b)(2); (d)(2)
206.174(f)
206.175(d)(4)
206.176(b) .................
206.176(c) .................
Hour burden
(Part B of Form MMS–4410)
How do I value gas production when an index-based method cannot be used?.
(a) Situations in which on index-based method cannot be used.
(4)(ii) If the major portion value is higher, you must submit an
amended Form MMS–2014 to MMS by the due date specified
in the written notice from MMS of the major portion value. * * *
How do I value gas production when an index-based methods
cannot be used?.
(b) Arm’s-length contracts.
(1)(i) You have the burden of demonstrating that your contract is
arm’s-length. * * * (iii) * * * In these circumstances, MMS will
notify you and give you an opportunity to provide written information justifying your value. * * *
(b)(2) MMS may require you to certify that your arm’s-length contract provisions include all of the consideration the buyer pays,
either directly or indirectly, for the gas, residue gas, or gas
plant produce.
(d) Supporting data ..........................................................................
(2) You must make all such data available upon request to the
authorized MMS or Indian representatives, to the Office of the
Inspector General of the Department, or other authorized persons. * * *
How do I value gas production when an index-based method cannot be used?.
(f) Value guidance. You may ask MMS for guidance in determining value. You may propose a valuation methods to MMS.
Submit all available data related to your proposal and any additional information MMS deems necessary. * * *
How do I determine quantities and qualities of production for computing royalties?.
(d)(4) You may request MMS approval of other methods for determining the quality of residue gas and gas plant products allocable to each lease. * * *
How do I perform accounting for comparison? ...............................
(b) If you are required to account for comparison, you may elect
to use the alternative dual accounting methodology provided for
in § 206.173 instead of the provision in paragraph (a) of this
section.
(Part B of Form MMS–4410)
How do I perform accounting for comparison? ...............................
(c) * * * If you do not perform dual accounting, you must certify
to MMS that gas follows into such a pipeline before it is processed.
(Part A of Form MMS—4410)
Average number of annual
responses
Annual burden
hours
Burden covered under OMB Control Number 1010–
0140 (expires 10/31/2006). Burden covered under
§ 210.52.
PRODUCE RECORDS
The ORA determined that the audit process is not
covered by the PRA because MMS staff asks nonstandard questions to resolve exceptions.
40
1
40
20
1
20
Burden covered under § 206.173.(a)(1).
Burden covered under § 206.172(b)(1)(ii).
Transportation Allowances
206.177(c)(2) and
(c)(3).
206.178(a)(1)(i) ..........
VerDate jul<14>2003
What general requirements regarding transportation allowances
apply to me?
(c)(2) If you ask MMS, MMS may approve a transportation allowance deduction in excess of the limitation in paragraph (c)(1) of
this section. * * *
(3) Your application for exception (using Form MMS–4393, Request to Exceed Regulatory Allowance Limitation) must contain
all relevant and supporting documentation necessary for MMS
to make a determination.
How do I determine a transportation allowance? ............................
(a) Determining a transportation allowance under an arm’s-length
contract.
(1)(i) * * * You are required to submit to MMS a coy of your
arm’s-length transportation contract(s) and all subsequent
amendments to the contract(s) within 2 months of the date
MMS receives your report which claims the allowance on Form
MMS–2014.
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4.25
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4.25
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50
34502
Federal Register / Vol. 70, No. 113 / Tuesday, June 14, 2005 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
30 CFR
Reporting and recordkeeping requirements1
206.178(a)(1)(iii) ........
How do I determine a transportation allowance? ............................
(a) Determining a transportation allowance under an arm’s-length
contract
(1)(iii) If MMS determines that the consideration paid under an
arm’s-length transportation contract does not reflect the value
of the transportation because of misconduct by or between the
contracting parties * * *. In these circumstances, MMS will notify you and give you an opportunity to provide written information justifying your transportation costs.
How do I determine a transportation allowance? ............................
206.178(a)(2)(i) and
(ii).
206.178(a)(3)(i) and
(ii).
206.178(b)(1)(ii) .........
206.178(b)(2)(iv) ........
206.178(b)(2)(iv)(A) ...
206.178(b)(3)(i) ..........
206.178(b)(3)(ii) .........
206.178 (b)(5) ...........
VerDate jul<14>2003
Hour burden
(a) Determining a transportation allowance under an arm’s-length
contract.
(3)(i) If your arm’s-length transportation contract includes both
gaseous and liquid products and the transportation costs attributable to each cannot be determined from the contract, you
must propose an allocation procedure to MMS. * * *
(ii) You are required to submit all relevant data to support your allocation proposal. * * *
How do I determine a transportation allowance? ............................
(b) Determining a transportation allowance under a non-arm’slength contract or no contract.
(1)(ii) * * * You must submit the actual cost information to support the allowance to MMS on Form MMS–4295, Gas Transportation Allowance Report, within 3 months after the end of
the 12-month period to which the allowance applies.* * *
How do I determine a transportation allowance? ............................
(b) Determining a transportation allowance under a non-arm’slength contract or no contract.
(2)(iv) You may use either depreciation with a return on
undepreciated capital investment or a return on depreciable
capital investment. * * * you may not later elect to change to
the other alternative without MMS approval.
How do I determine a transportation allowance? ............................
(b) Determining a transportation allowance under a non-arm’slength contract or no contract.
(2)(iv)(A) * * * Once you make an election, you may not change
methods without MMS approval. * * *
How do I determine a transportation allowance? ............................
(b) Determining a transportation allowance under a non-arm’slength contract or no contract.
(3)(i) * * * Except as provided in this paragraph, you may not
take an allowance for transporting a product that is not royalty
bearing without MMS approval.
How do I determine a transportation allowance? ............................
(b) Determining a transportation allowance under a non-arm’slength contract or no contract.
(3)(ii) As an alternative to the requirements of paragraph (b)(3)(i)
of this section, you may propose to MMS a cost allocation
method based on the values of the products transported. * * *
How do I determine a transportation allowance? ............................
(b) Determining a transportation allowance under a non-arm’slength contract or no contract.
(5) If you transport both gaseous and liquid products through the
same transportation system, you must propose a cost allocation
procedure to MMS. * * * You are required to submit all relevant data to support your proposal. * * *
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Annual burden
hours
PRODUCE RECORDS
The ORA determined that the audit process is not
covered by the PRA because MMS staff asks nonstandard questions to resolve exceptions.
(a) Determining a transportation allowance under an arm’s-length
contract.
(2)(i) * * * you cannot take an allowance for the costs of transporting lease production that is not royalty bearing without MMS
approval, or without lessor approval on tribal leases.
(ii) As an alternative to paragraph (a)(2)(i), you may propose to
MMS a cost allocation method based on the values of the products transported.* * *
How do I determine a transportation allowance? ............................
20:14 Jun 13, 2005
Average number of annual
responses
E:\FR\FM\14JNN1.SGM
20
1
20
40
1
40
15
7
105
20
1
20
20
1
20
40
1
40
20
1
20
40
1
40
14JNN1
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Federal Register / Vol. 70, No. 113 / Tuesday, June 14, 2005 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
30 CFR
Reporting and recordkeeping requirements1
206.178 (d)(1) ...........
How do I determine a transportation allowance? ............................
(d) Reporting your transportation allowance.
(1) If MMS requests, you must submit all data used to determine
your transportation allowance. * * *
How do I determine a transportation allowance? ............................
(d) Reporting your allowance.
(2) You must report transportation allowances as a separate line
item on Form MMS–2014. * * *
206.178 (d)(2), (e),
and (f)(1).
Hour burden
Average number of annual
responses
Annual burden
hours
PRODUCE RECORDS
The ORA determined that the audit process is not
covered by the PRA because MMS staff asks
nonstandard questions to resolve exceptions.
Burden covered under OMB Control Number 1010–
0140 (expires 10/31/2006). Burden covered under
§ 210.52.
(e) Adjusting incorrect allowances. If for any month the transportation allowance you are entitled to is less than the amount you
took on Form MMS–2014, you are required to report and pay
additional royalties due, plus interest computed under 30 CFR
218.54 from the first day of the first month you deducted the
improper transportation allowance until the date you pay the
royalties due. * * *
(f) Determining allowable costs for transportation allowances.
* * *
(1) Firm demand charges paid to pipelines. * * * You must modify the Form MMS–2014 by the amount received or credited for
the affected reporting period.
Processing Allowances
206.180 (a)(1)(i) ........
206.180 (a)(1)(iii) .......
206.180 (a)(3) ...........
206.180 (b)(1)(ii) ........
206.180 (b)(2)(iv) .......
206.180 (b)(2)(iv)(A) ..
VerDate jul<14>2003
How do I determine an actual processing allowance? ....................
(a) Determining a processing allowance if you have an arm’slength processing contract.
(1)(i) * * * You have the burden of demonstrating that your contract is arm’s-length. You are required to submit to MMS a copy
of your arm’s-length contract(s) and all subsequent amendments to the contract(s) within 2 months of the date MMS receives your first report that deducts the allowance on the Form
MMS–2014.
How do I determine an actual processing allowance? ....................
(a) Determining a processing allowance if you have an arm’slength processing contract.
(1)(iii) If MMS exceptions. determines that the consideration paid
under an arm’s-length processing contract does not reflect the
value of the processing because of misconduct by or between
the contracting parties * * *. In these circumstances, MMS will
notify you and give you an opportunity to provide written information justifying your processing costs.
How do I determine an actual processing allowance? ....................
(a) Determining a processing allowance if you have an arm’slength processing contract.
(3) If your arm’s-length processing contract includes more than
one gas plant product and the processing costs attributable to
each product cannot be determined from the contract, you must
propose an allocation procedure to MMS. * * * You are required to submit all relevant data to support your proposal.
* * *
How do I determine an actual processing allowance? ....................
(b) Determining a processing allowance if you have a non-arm’slength contract or no contract.
(1)(ii) * * * You must submit the actual cost information to support the allowance to MMS on Form MMS–4109, Gas Processing Allowance Summary Report, within 3 months after the
end of the 12-month period for which the allowance applies.
* * *
How do I determine an actual processing allowance? ....................
(b) Determining a processing allowance if you have a non-arm’slength contract or no contract.
(2)(iv) You may use either depreciation with a return on
undepreciable capital investment or a return on depreciable
capital investment. * * * you may not later elect to change to
the other alternative without MMS approval.
How do I determine an actual processing allowance? ....................
(b) Determining a processing allowance if you have a non-arm’slength contract or no contract.
20:14 Jun 13, 2005
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1
30
30
PRODUCE RECORDS
The ORA determined that the audit process is not
covered by the PRA because MMS staff asks nonstandard questions to resolve exceptions.
E:\FR\FM\14JNN1.SGM
40
1
40
20
5
100
20
1
20
20
1
20
14JNN1
34504
Federal Register / Vol. 70, No. 113 / Tuesday, June 14, 2005 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Reporting and recordkeeping requirements1
30 CFR
206.180 (b)(3) ...........
206.180 (c)(1) ............
206.180 (c)(2) and (d)
206.181(c)
Total Burden ......
Hour burden
(2)(iv)(A) * * * Once you make an election, you may not change
methods without MMS approval. * * *
How do I determine an actual processing allowance? ....................
(b) Determining a processing allowance if you have a non-arm’slength contract or no contract.
(3) Your processing allowance under this paragraph (b) must be
determined based upon a calendar year or other period if you
and MMS agree to an alternative.
How do I determine an actual processing allowance? ....................
(c) Reporting your processing allowance.
(1) If MMS requests, you must submit all data used to determine
your processing allowance. * * *
How do I determine an actual processing allowance? ....................
(c) Reporting your processing allowance.
(2) You must report gas processing allowances as a separate line
item on the Form MMS–2014. * * *
(d) Adjusting incorrect processing allowances. If for any month
the gas processing allowance you are entitled to is less than
the amount you took on Form MMS–2014, you are required to
pay additional royalties, plus interest computed under 30 CFR
218.54 from the first day of the first month you deducted a
processing allowance until the date you pay the royalties due.
* * *
How do I establish processing costs for dual accounting purposes
when I do not process the gas?.
(c) A proposed comparable processing fee submitted to either the
tribe and MMS (for tribal leases) or MMS (for allotted leases)
with your supporting documentation submitted to MMS. If MMS
does not take action on your proposal within 120 days, the proposal will be deemed to be denied and subject to appeal to the
MMS Director under 30 CFR part 290.
..........................................................................................................
20
Average number of annual
responses
1
Annual burden
hours
20
PRODUCE RECORDS
The ORA determined that the audit process is not
covered by the PRA because MMS staff asks
nonstandard questions to resolve exceptions.
Burden covered under OMB Control Number 1010–
0140 (expires 10/31/2006). Burden covered under
§ 210.52.
40
..........................
1
40
212
2 1,285
1 Recordkeeping burden hours for §§ 206.52(e)(1) and 206.174(d) will be covered under ICR 1010–0140 (expires October 31, 2006) because
they apply to Form MMS–2014, Report of Sales and Royalty Remittance.
2 Total estimated annual burden hours = 1,284.50, which we rounded up to 1,285.
Estimated Annual Reporting and
Recordkeeping ‘‘Non-hour Cost’’
Burden: We have identified no ‘‘nonhour’’ 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
notice * * * 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
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20:14 Jun 13, 2005
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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. We have not
identified non-hour cost burdens for
this information collection. 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,
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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. The ICR also will be
posted on our Web site at https://
www.mrm.mms.gov/Laws_R_D/
FRNotices/FRInfColl.htm.
Public Comment Policy: We will post
all comments in response to this notice
on our Web site at https://
www.mrm.mms.gov/Laws_R_D/
FRNotices/FRInfColl.htm. We also will
make copies of the comments available
for public review, including names and
E:\FR\FM\14JNN1.SGM
14JNN1
Federal Register / Vol. 70, No. 113 / Tuesday, June 14, 2005 / Notices
addresses of respondents, during regular
business hours at our offices in
Lakewood, Colorado. Upon request, we
will withhold an individual
respondent’s home address from the
public record, as allowable by law.
There also may be circumstances in
which we would withhold from the
rulemaking record a respondent’s
identity, as allowable by law. If you
request that we withhold your name
and/or address, state your request
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.
MMS Information Collection
Clearance Officer: Arlene Bajusz (202)
208–7744.
Dated: May 9, 2005.
Lucy Querques Denett,
Associate Director for Minerals Revenue
Management.
[FR Doc. 05–11682 Filed 6–13–05; 8:45 am]
18th St., 13th St., 16th Ave. Wynnton Rd.,
Columbus, 05000622
Mississippi
Wilkinson County
Mosely—Woods House, 1461 Bell Rd., Yazoo
City, 05000623
Missouri
Jackson County
Kansas City Title and Trust Building, 927
Walnut St., Kansas City, 05000624
North Dakota
Mercer County
St. Paul’s Lutheran Church, 4474 1st NW.,
Hazen, 05000625
South Dakota
Day County
First National Bank Building, 611 Main St.,
Webster, 05000626
Deuel County
Herrick Barn, 0.5 mi NW of Jct. Deuel Cty
Hwy 310 and SD 101, Gary, 05000628
McPherson County
Leola Post Office, 741 Sherman St., Leola,
05000627
[FR Doc. 05–11676 Filed 6–13–05; 8:45 am]
BILLING CODE 4310–MR–P
INTERNATIONAL TRADE
COMMISSION
construction castings (both heavy and
light) from Brazil and China would be
likely to lead to continuation or
recurrence of material injury to an
industry in the United States within a
reasonably foreseeable time.
Background
The Commission instituted these
reviews on October 1, 2004 (69 FR
58952) and determined on January 4,
2005 that it would conduct expedited
reviews (70 FR 7967).
The Commission transmitted its
determinations in these reviews to the
Secretary of Commerce on June 7, 2005.
The views of the Commission are
contained in USITIC Publication 3781
(June, 2005), entitled Certain Iron
Construction Castings from Brazil,
Canada, and China: Investigation Nos.
701–TA–249 and 731–TA–262, 263, and
265 (Second Review).
By order of the Commission.
Dated: Issued: June 8, 2005.
Marilyn R. Abbott,
Secretary to the Commission.
[FR Doc. 05–11715 Filed 6–13–05; 8:45 am]
BILLING CODE 7020–02–M
BILLING CODE 4312–51–P
DEPARTMENT OF THE INTERIOR
34505
National Park Service
National Register of Historic Places;
Notification of Pending Nominations
and Related Actions
Nominations for the following
properties being considered for listing
or related actions in the National
Register were received by the National
Park Service before May 14, 2005.
Pursuant to § 60.13 of 36 CFR Part 60
written comments concerning the
significance of these properties under
the National Register criteria for
evaluation may be forwarded by United
States Postal Service, to the National
Register of Historic Places, National
Park Service, 1849 C St. NW., 2280,
Washington, DC 20240; by all other
carriers, National Register of Historic
Places, National Park Service, 1201 Eye
St. NW., 8th floor, Washington DC
20005; or by fax, 202–371–6447. Written
or faxed comments should be submitted
by June 29, 2005.
NUCLEAR REGULATORY
COMMISSION
[Investigation Nos. 701–TA–249 and 731–
TA–262, 263, and 265 (Second Review)]
Agency Information Collection
Activities: Proposed Collection:
Comment Request
Certain Iron Construction Castings
From Brazil, Canada, and China
AGENCY:
Georgia
Determinations
On the basis of the record1 developed
in the subject five-year review, the
United States International Trade
Commission (Commission) determines,
pursuant to section 751(c) of the Tariff
Act of 1930 (19 U.S.C. 1675(c)) (the
Act), that revocation of the
countervailing duty order on heavy iron
construction castings from Brazil would
be likely to lead to continuation or
recurrence of material injury to an
industry in the United States within a
reasonably foreseeable time. The
Commission also determines that
renovation of the antidumping duty
order on heavy iron construction
castings from Canada would be likely to
lead to continuation or recurrence of
material injury to an industry in the
United States within a reasonably
foreseeable time. The Commission
further determines that revocation of the
antidumping duty orders on iron
Muscogee County
Wynnton Village Historic District, Roughly
bounded by Wildwood Ave., Forest Ave.,
1 The record is defined in sec. 207.2(f) of the
Commission’s Rules of Practice and Procedure (19
CFR 207.2(f)).
John W. Roberts,
Acting Chief, National Register/National
Historic Landmarks Program.
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U.S. Nuclear Regulatory
Commission (NRC).
ACTION: Notice of pending NRC action to
submit an information collection
request to OMB and solicitation of
public comment.
SUMMARY: The NRC is preparing a
submittal to OMB for review of
continued approval of information
collections under the provisions of the
Paperwork Reduction Act of 1995 (44
U.S.C. Chapter 35).
Information pertaining to the
requirement to be submitted:
1. The title of the information
collection: NRC Form 483, ‘‘Registration
Certificate—in vitro Testing with
Byproduct Material Under General
License’’.
2. Current OMB approval number:
3150–0038.
3. How often the collection is
required: There is a one-time submittal
of information to receive a validated
copy of NRC Form 483 with an assigned
registration number. In addition, any
changes in the information reported on
NRC Form 483 must be reported in
writing to the Commission within 30
E:\FR\FM\14JNN1.SGM
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]]>Agencies
[Federal Register Volume 70, Number 113 (Tuesday, June 14, 2005)]
[Notices]
[Pages 34494-34505]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-11682]
-----------------------------------------------------------------------
DEPARTMENT OF THE INTERIOR
Minerals Management Service
Agency Information Collection Activities: Proposed Collection,
Comment Request
AGENCY: Minerals Management Service (MMS), Interior.
ACTION: Notice of a revision of a currently approved information
collection (OMB Control Number 1010-0103).
-----------------------------------------------------------------------
SUMMARY: To comply with the Paperwork Reduction Act (PRA) of 1995, 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. The information collection request (ICR) is titled ``30 CFR
Part 202--ROYALTIES, Subpart J--Gas Production From Indian Leases, and
Part 206--PRODUCT VALUATION, Subpart B--
[[Page 34495]]
Indian Oil, and Subpart E--Indian Gas (Forms MMS-4109, Gas Processing
Allowance Summary Report; MMS-4110, Oil Transportation Allowance
Report; MMS-4295, Gas Transportation Allowance Report; MMS-4410,
Accounting for Comparison [Dual Accounting]; and MMS-4411, Safety Net
Report).'' The title of this ICR clarifies the regulatory language we
are covering under 30 CFR parts 202 and 206, for Indian oil and gas
leases, and incorporates relevant portions of six previous ICRs. The
six ICRs now consolidated into this ICR were previously titled:
1010-0061: 30 CFR Part 206, Subpart B--Indian Oil, Sec.
206.55--Determination of Transportation Allowances (Form MMS-4110, Oil
Transportation Allowance Report);
1010-0075: 30 CFR Part 206, Subpart E--Indian Gas, Sec.
206.178--How do I determine a transportation allowance? (Form MMS-4295,
Gas Transportation Allowance Report), and Sec. 206.180--How do I
determine an actual processing allowance? (Form MMS-4109, Gas
Processing Allowance Summary Report);
1010-0095: 30 CFR Part 206--Product Valuation, Subpart B--
Indian Oil, Sec. 206.54; Subpart C--Federal Oil, Sec. 206.109;
Subpart D--Federal Gas, Sec. Sec. 206.156 and 206.158; and Subpart E--
Indian Gas, Sec. 206.177 (Form MMS-4393, Request to Exceed Regulatory
Allowance Limitation). Only Indian oil and gas citations and burden
hours are covered in this ICR. Form MMS-4393 is also used for Federal
oil and gas citations and is retained with ICR 1010-0136 (expires May
31, 2006), where most of the burden hours are incurred;
1010-0103: 30 CFR Part 206, Subpart E--Indian Gas (Form
MMS-4411, Safety Net Report);
1010-0104: 30 CFR Part 206, Subpart E--Indian Gas,
Sec. Sec. 206.172, 206.173, and 206.176 (Form MMS-4410, Accounting for
Comparison [Dual Accounting]); and
1010-0138: 30 CFR Part 206, Subpart B, Establishing Oil
Value on Royalty Due on Indian Leases.
DATES: Submit written comments on or before August 15, 2005.
ADDRESSES: Submit written comments to Sharron L. Gebhardt, Lead
Regulatory Specialist, Minerals Management Service, Minerals Revenue
Management, P.O. Box 25165, MS 302B2, Denver, Colorado 80225. If you
use an overnight courier service, our courier address is Building 85,
Room A-614, Denver Federal Center, Denver, Colorado 80225. You may also
e-mail your comments to us at mrm.comments@mms.gov. Include the title
of the information collection and the OMB control number in the
``Attention'' line of your comment. Also include your name and return
address. Submit electronic comments as an ASCII file, avoiding the use
of special characters and any form of encryption. If you do not receive
a confirmation that we have received your e-mail, contact Ms. Gebhardt
at (303) 231-3211.
FOR FURTHER INFORMATION CONTACT: Sharron L. Gebhardt, telephone (303)
231-3211, FAX (303) 231-3781, or e-mail sharron.gebhardt@mms.gov.
SUPPLEMENTARY INFORMATION:
Title: ``30 CFR Part 202--ROYALTIES, Subpart J--Gas Production From
Indian Leases, and Part 206--PRODUCT VALUATION, Subpart B--Indian Oil,
and Subpart E--Indian Gas (Forms MMS-4109, Gas Processing Allowance
Summary Report; MMS-4110, Oil Transportation Allowance Report; MMS-
4295, Gas Transportation Allowance Report; MMS-4410, Accounting for
Comparison [Dual Accounting]; and MMS-4411, Safety Net Report).''
OMB Control Number: 1010-0103.
Bureau Form Number: Forms MMS-4109, MMS-4110, MMS-4295, MMS-4410,
and MMS-4411.
Abstract: The Secretary of the U.S. Department of the Interior is
responsible for collecting royalties from lessees who produce minerals
from leased Federal and Indian lands. The Secretary is required by
various laws to manage mineral resources production on Federal and
Indian lands, collect the royalties due, and distribute the funds in
accordance with those laws.
The Secretary also has a trust responsibility to manage Indian
lands and seek advice and information from Indian beneficiaries. The
MMS performs the royalty management functions and assists the Secretary
in carrying out the Department's trust responsibility for Indian lands.
Applicable Citations
Applicable citations of the laws pertaining to mineral leases on
Indian lands include 25 U.S.C. 396d (Chapter 12--Lease, Sale or
Surrender of Allotted or Unallotted Lands); 25 U.S.C. 2103 (Indian
Mineral Development Act of 1982); and Public Law 97-451--Jan. 12, 1983
(Federal Oil and Gas Royalty Management Act of 1982 [FOGRMA]). The CFR
citations we are covering in this ICR are 30 CFR part 202, subpart J;
and part 206, subparts B and E.
Background
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 (royalty)
of the value received from production from the leased lands. The lease
creates a business relationship between the lessor and the lessee. The
lessee is required to report various kinds of information to the lessor
relative to the disposition of the leased minerals. Such information is
similar to data reported to private and public mineral interest owners
and is generally available within the records of the lessee or others
involved in developing, transporting, processing, purchasing, or
selling of such minerals. The information MMS collects includes data
necessary to ensure that the royalties are paid appropriately.
Regulations at 30 CFR part 202, subpart J, govern royalties on gas
production from Indian leases. Regulations at 30 CFR part 206, subparts
B and E, govern the valuation of oil and gas produced from leases on
Indian lands. Indian tribes and individual Indian mineral owners
receive all royalties generated from their lands. Determining product
valuation is essential to ensure that Indian tribes and individual
Indian mineral owners receive payment on the full value of the minerals
removed from their lands. Tribal representatives have expressed their
concern that the Secretary continue to fulfill all trust and fiduciary
duties and ensure that the correct royalty is received from Indian
lands. Failure to collect the data described in this information
collection could result in the undervaluation of leased minerals on
Indian lands.
Indian Oil
Regulations at 30 CFR part 206, subpart B, govern the valuation for
royalty purposes of oil produced from Indian oil and gas leases (tribal
and allotted) and must be consistent with mineral leasing laws, other
applicable laws, and lease terms.
Regulations at 30 CFR 206.52 explain how lessees must determine the
value of oil produced from Indian oil and gas leases. Generally, the
regulations provide that lessees determine the value of oil, based upon
the gross proceeds under an arm's-length contract, a series of
benchmarks under a non-arm's-length contract, and major portion
analysis. These oil valuation methods are eligible for applicable
transportation allowances.
Transportation Allowances
Under certain circumstances, the regulations authorize lessees to
deduct from royalty payments the reasonable
[[Page 34496]]
actual costs of transporting the royalty portion of produced minerals
from the lease to a sales point not in the immediate lease area. The
MMS verifies transportation allowances during the product valuation
verification to determine if the lessee reported and paid the proper
royalty amount.
The MMS and tribal personnel use the information collected on Form
MMS-4110, Oil Transportation Allowance Report, to evaluate whether the
transportation allowances reported and claimed by lessees are within
regulatory allowance limitations. The regulations establish a limit on
transportation allowance deductions for oil at 50 percent of the value
of the oil at the point of sale. To receive a transportation deduction,
lessees must submit Form MMS-4110 before or in the same month that they
report the transportation allowance on Form MMS-2014, Report of Sales
and Royalty Remittance (OMB Control Number 1010-0140, expiration date
October 31, 2006). After the initial reporting period and for
succeeding reporting periods, lessees must submit page one of Form MMS-
4110 (and Schedule 1) within 3 months after the end of the calendar
year, or after the applicable contract or rate terminates or is
modified or amended, whichever is earlier, unless MMS approves a longer
period.
Request To Exceed Regulatory Allowance Limitations for Oil
Transportation
The MMS may approve an oil transportation allowance in excess of 50
percent upon proper application from the lessee. To request permission
to exceed a regulatory allowance limit, lessees must submit a letter to
MMS explaining why a higher allowance limit is necessary and provide
supporting documentation, including a completed Form MMS-4393, Request
to Exceed Regulatory Allowance Limitation. This form provides MMS with
the data necessary to make a decision whether to approve or deny the
request and track deductions on royalty reports. Data reported on the
form is also subject to subsequent audit and adjustment.
Indian Gas
Regulations at 30 CFR part 206, subpart E, govern the valuation for
royalty purposes of natural gas produced from Indian oil and gas
leases. The regulations apply to all gas production from Indian oil and
gas leases (tribal and allotted), except leases on the Osage Indian
Reservation.
Safety Net Reporting
The safety net calculation establishes the minimum value, for
royalty purposes, of natural gas production from Indian oil and gas
leases. This reporting requirement ensures that Indian lessors receive
all royalties due and aids MMS compliance efforts.
The regulations require lessees to submit Form MMS-4411, Safety Net
Report, when gas production from an Indian oil or gas lease is sold
beyond the first index pricing point. The lessee submits safety net
prices, for the previous calendar year, to MMS annually (by June 30)
using this form.
Dual Accounting
Most Indian leases contain the requirement to perform accounting
for comparison (dual accounting) for gas produced from the lease.
Lessees must elect to perform actual dual accounting as defined in 30
CFR 206.176 or alternative dual accounting as defined in 30 CFR
206.173.
According to 30 CFR 206.176, dual accounting is defined as the
greater of the following two values:
(1) The value of gas prior to processing, less any applicable
allowances, or
(2) The combined value of residue gas and gas plant products
resulting from processing the gas, less any applicable allowances, plus
any drip condensate associated with the processed gas recovered
downstream of the point of royalty settlement, without resorting to
processing, less applicable allowances.
Lessees use Form MMS-4410, Accounting for Comparison [Dual
Accounting], to certify that dual accounting is not required on an
Indian lease or to make an election for actual or alternative dual
accounting for Indian leases.
Form MMS-4410 (Part A), Certification for Not Performing Dual
Accounting, requires lessees to identify the MMS-designated areas where
the leases are located and provide specific justification for not
performing dual accounting. Part A is a one-time notification, until
any changes occur in gas disposition. Part A lists the following
acceptable reasons for not performing dual accounting: (1) The lease
terms do not require dual accounting; (2) none of the gas from the
lease is ever processed; (3) gas has a Btu content of 1000 Btu's per
cubic foot or less at lease's facility measurement point(s); (4) none
of the gas from the lease is processed until after gas flows into a
pipeline with an index located in an index zone; and (5) none of the
gas from the lease is processed until after gas flows into a mainline
pipeline not located in an index zone.
Form MMS-4410 (Part B), Election to Perform Actual Dual Accounting
or Alternative Dual Accounting, allows MMS to collect the lessee's
elections to perform actual dual accounting or alternative dual
accounting. A lessee makes an election by checking either the actual or
alternative dual accounting box for each MMS-designated area where its
leases are located. Part B also includes the lessee's lease prefixes
within each MMS-designated area to assist lessees in making the
appropriate election. The election to perform actual or alternative
dual accounting applies to all of a lessee's Indian leases in each MMS-
designated area. The first election to use the alternative dual
accounting is effective from the time of election through the end of
the following calendar year. Thereafter, each election to use the
alternative dual accounting methodology must remain in effect for 2
calendar years. However, lessees may return to the actual dual
accounting methodology only at the beginning of the next election
period or with written approval from MMS and the tribal lessors for
tribal leases, and from MMS for Indian allotted leases in the MMS-
designated area (30 CFR 206.173(a)).
Transportation Allowances
Under certain circumstances, lessees are authorized to deduct from
royalty payments the reasonable actual costs of transporting the
royalty portion of produced minerals from the lease to a processing or
sales point not in the immediate lease area. Transportation allowances
are part of the product valuation process MMS uses to determine if the
lessee is reporting and paying the proper royalty amount.
The MMS and tribal personnel use the information collected on Form
MMS-4295, Gas Transportation Allowance Report, to evaluate whether the
non-arm's-length or no contract transportation allowances reported and
claimed by lessees are reasonable, actual costs and are within
regulatory allowance limitations. To take a non-arm's-length
transportation deduction, a lessee must submit Form MMS-4295 within 3
months after the end of the 12-month period to which the allowance
applies. The regulations establish a limit on transportation allowance
deductions for gas at 50 percent of the value of the gas at the point
of sale.
Request To Exceed Regulatory Allowance Limitation for Gas
Transportation
The MMS may approve a gas transportation allowance in excess of 50
[[Page 34497]]
percent upon proper application from the lessee. To request permission
to exceed a regulatory allowance limit, lessees must submit a letter to
MMS explaining why a higher allowance limit is necessary and provide
supporting documentation, including a completed Form MMS-4393, Request
to Exceed Regulatory Allowance Limitation. This form provides MMS with
the data necessary to make a decision whether to approve or deny the
request and track deductions on royalty reports. Data reported on the
form is also subject to subsequent audit and adjustment.
Processing Allowances
When gas is processed for the recovery of gas plant products,
lessees may claim a processing allowance. The MMS normally accepts the
cost as stated in the lessee's arm's-length processing contract as
being representative of the cost of the processing allowance. In those
instances where gas is being processed through a lessee-owned plant,
the lessee must base processing costs on the actual plant operating and
maintenance expenses, depreciation, and a reasonable return on
investment. The allowance is expressed as a cost per unit of individual
gas plant products. Lessees may take processing allowances as a
deduction from royalty payments.
The MMS and tribal personnel use the information collected on Form
MMS-4109, Gas Processing Allowance Summary Report, to evaluate whether
the non-arm's-length or no contract processing allowances reported and
claimed by lessees are reasonable, actual costs and are within
regulatory allowance limitations. To take a non-arm's-length processing
deduction, lessees must submit Form MMS-4109 within 3 months after the
end of the 12-month period to which the allowance applies. The
regulations establish a limit of 66 \2/3\ percent of the value of each
gas plant product as an allowable gas processing deduction.
Summary
The MMS is requesting OMB's approval to continue to collect this
information. Not collecting this information would limit the
Secretary's ability to discharge his/her duties and may also result in
loss of royalty payments to Indian tribes and individual Indian mineral
owners.
Proprietary information submitted to MMS under this collection is
protected, and no items of a sensitive nature are collected.
In some cases the requirement to respond is mandatory, such as
reporting royalty values or declaring the type of dual accounting
election the lessee chooses to perform. In other cases, it is
voluntary, such as asking permission to exceed a transportation
allowance limit. For example, a lessee can request, but is not required
to apply for, a transportation allowance deduction in excess of the
regulatory limits. However, if no request is made, the transportation
limitation is set by regulation.
Frequency of Response: Annually, monthly, and on occasion.
Estimated Number and Description of Respondents: 125 Indian
lessees/lessors.
Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 1,285
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 number
30 CFR Reporting and recordkeeping Hour burden of annual Annual burden
requirements\1\ responses hours
----------------------------------------------------------------------------------------------------------------
202--ROYALTIES
Subpart J.--Gas Production From Indian Leases
----------------------------------------------------------------------------------------------------------------
202.551(c).................... How do I determine the volume of 1 1 1
production for which I must pay
royalty if my lease is not in
an approved Federal unit or
communitization agreement
(AFA)? * * *
-------------------------------
(c) You and all other persons
paying royalties on the lease
may ask MMS for permission * *
*
-------------------------------
206--PRODUCT VALUATION
Subpart B--Indian Oil
----------------------------------------------------------------------------------------------------------------
206.52(b)(1)(i) and (iii), Valuation standards............. PRODUCE RECORDS
(b)(2), and (d). (b)(1)(i) * * * The lessee shall The Office of Regulatory Affairs (ORA)
have the burden of determined that the audit process is not
demonstrating that its contract covered by the PRA because MMS staff asks non-
is arm's-length. * * *. standard questions to resolve exceptions.
(iii) * * * When MMS determines
that the value may be
unreasonable, MMS will notify
the lessee and give the lessee
an opportunity to provide
written information justifying
the lessee's value. * * *.
(b)(2) MMS may require a lessee
to certify that its arm's-
length contract provisions
include all of the
consideration to be paid by the
buyer, either directly or
indirectly, for the oil..
(d) Any Indian lessee will make
available, upon request to the
authorized MMS or Indian
representatives, to the Office
of the Inspector General of the
Department of the Interior, or
other persons authorized to
receive such information, arm's-
length sales and volume data
for like-quality production
sold, purchased, or otherwise
obtained by the lessee from the
field or area or from nearby
fields or areas.
206.52(e)(2).................. Valuation standards............. 20 1 20
[[Page 34498]]
(e)(2) A lessee shall notify MMS
if it has determined value
under paragraph (c)(4) or
(c)(5) of this section.* * *
The letter shall identify the
valuation method to be used and
contain a brief description of
the procedure to be followed. *
* *
206.52(g)..................... Valuation standards............. 40 1 40
(g) The lessee may request a
value determination from MMS. *
* * The lessee shall submit all
available data relevant to its
proposal. * * *
206.54(b)(2).................. Transportation allowances-- 4.25 1 4.25
general.
(b)(2) Upon request of a lessee,
MMS may approve a
transportation allowance
deduction in excess of the
limitation prescribed by
paragraph (b)(1) of this
section. * * * An application
for exception (using Form MMS-
4393, Request to Exceed
Regulatory Allowance
Limitation) shall contain all
relevant and supporting
documentation necessary for MMS
to make a determination. * * *
206.55(a)(1)(i)............... Determination of transportation Burden covered under Sec. 206.55(c)(1)(i)
allowances. and (iii).
(a) Arm's-length transportation
contracts.
(1)(i) * * * Before any
deduction may be taken, the
lessee must submit a completed
page one of Form MMS-4110 (and
Schedule 1), Oil Transportation
Allowance Report * * *
206.55(a)(2)(i)............... Determination of transportation Burden covered under Sec. 206.55(a)(3).
allowances.
(a) Arm's-length transportation
contracts.
(2)(i) * * * Except as provided
in this paragraph, no allowance
may be taken for the costs of
transporting lease production
which is not royalty-bearing
without MMS approval.
206.55(a)(2)(ii).............. Determination of transportation 20 1 20
allowances.
(a) Arm's-length transportation
contracts.
(2)(ii) Notwithstanding the
requirements of paragraph (i),
the lessee may propose to MMS a
cost allocation method on the
basis of the values of the
products transported. * * *
206.55(a)(3).................. Determination of transportation 40 1 40
allowances.
(a) Arm's-length transportation
contracts.
(3) If an arm's-length
transportation contract
includes both gaseous and
liquid products, and the
transportation costs
attributable to each product
cannot be determined from the
contract, the lessee shall
propose an allocation procedure
to MMS. * * * The lessee shall
submit all available data to
support its proposal. * * *
206.55(b)(1).................. Determination of transportation Burden covered under Sec. 206.55(c)(2)(i),
allowances. and (c)(2)(iii).
(b) Non-arm's-length or no
contract.
(1) * * * A transportation
allowance may be claimed
retroactively for a period of
not more than 3 months prior to
the first day of the month that
Form MMS-4110 is filed with
MMS, unless MMS approves a
longer period upon a showing of
good cause by the lessee. * * *
206.55(b)(1).................. Determination of transportation Burden covered under OMB Control Number 1010-
allowances. 0140 (expires 10/31/2006). Burden covered
(b) Non-arm's-length or no under Sec. 210.52.
contract.
(1) * * * When necessary or
appropriate, MMS may direct a
lessee to modify its actual
transportation allowance
deduction.
206.55(b)(2)(iv).............. Determination of transportation 20 1 20
allowances.
(b) Non-arm's-length or no
contract.
(2)(iv) * * * After a lessee has
elected to use either method
for a transportation system,
the lessee may not later elect
to change to the other
alternative without approval of
MMS.
206.55(b)(2)(iv)(A)........... Determination of transportation 20 1 20
allowances.
(b) Non-arm's-length or no
contract.
(2)(iv)(A) * * * After an
election is made, the lessee
may not change methods without
MMS approval. * * *
206.55(b)(3)(i)............... Determination of transportation 40 1 40
allowances.
(b) Non-arm's-length or no
contract.
(3)(i) * * * Except as provided
in this paragraph, the lessee
may not take an allowance for
transporting lease production
which is not royalty bearing
without MMS approval.
206.55(b)(3)(ii).............. Determination of transportation 20 1 20
allowances.
(b) Non-arm's-length or no
contract.
(3)(ii) Notwithstanding the
requirements of paragraph (i),
the lessee may propose to MMS a
cost allocation method on the
basis of the values of the
products transported. * * *
206.55(b)(4).................. Determination of transportation 20 1 20
allowances.
[[Page 34499]]
(b) Non-arm's-length or no
contract.
(4) Where both gaseous and
liquid products are transported
through the same transportation
system, the lessee shall
propose a cost allocation
procedure to MMS. * * * The
lessee shall submit all
available data to support its
proposal. * * *
206.55(b)(5).................. Determination of transportation 20 1 20
allowances.
(b) Non-arm's-length or no
contract.
(5) A lessee may apply to MMS
for an exception from the
requirement that it compute
actual costs in accordance with
paragraphs (b)(1) through
(b)(4) of this section. * * *
206.55(c)(1)(i)............... Determination of transportation 4 3 12
allowances.
(c) Reporting requirements......
(1) Arm's-length contracts. (i)
With the exception of those
transportation allowances
specified in paragraphs
(c)(1)(v) and (c)(1)(vi) of
this section, the lessee shall
submit page one of the initial
Form MMS-4110 (and Schedule 1),
Oil Transportation Allowance
Report, prior to, or at the
same time as, the
transportation allowance
determined under an arm's-
length contract, is reported on
Form MMS-2014, Report of Sales
and Royalty Remittance. * * *
206.558(c)(1)(iii)............ Determination of transportation. 4 3 12
(c) Reporting requirements...... .............. .............. ..............
(1) Arm's-length contracts.
(iii) After the initial
reporting period and for
succeeding reporting periods,
lessees must submit page one of
Form MMS-4110 (and Schedule 1)
within 3 months after the end
of the calendar year, or after
the applicable contract or rate
terminates or is modified or
amended, whichever is earlier,
unless MMS approves a longer
period (during which period the
lessee shall continue to use
the allowance from the previous
reporting period).
206.55(c)(1)(iv).............. Determination of transportation PRODUCE RECORDS
allowances. The ORA determined that the audit process is
(c) Reporting requirements...... not covered by the PRA because MMS staff asks
(1) Arm's-length contracts. (iv) non-standard questions to resolve exceptions.
MMS may require that a lessee
submit arm's-length
transportation contracts,
production agreements,
operating agreements, and
related documents. Documents
shall be submitted within a
reasonable time, as determined
by MMS..
206.55(c)(2)(i)............... Determination of transportation 6 3 18
allowances.
(c) Reporting requirements......
(2) Non-arm's-length or no
contract. (i) With the
exception of those
transportation allowances
specified in paragraphs
(c)(2)(v), (c)(2)(vii) and
(c)(2)(viii) of this section,
the lessee shall submit an
initial FormMMS-4100 prior to,
or at the same time as, the
transportation allowance
determined under a non-arm's-
length contract or no-contract
situationis reported on Form
MMS-2014, * * * The initial
report may be based upon
estimated costs.
206.55(c)(2)(iii)............. Determination of transportation 6 3 18
allowances.
(c) Reporting requirements......
(2) Non-arm's-length or no
contract. (iii) For calendar-
year reporting periods
succeeding the initial
reporting period, the lessee
shall submit a completed Form
MMS-4110 containing the actual
costs for the previous
reporting period. If oil
transportation is continuing,
the lessee shall include on
Form MMS-4410 its estimated
costs for the next calendar
year. * * * MMS must receive
the Form MMS-4110 within 3
months after the end of the
previous reporting period,
unless MMS approves a longer
period (during which period the
lessee shall continue to use
the allowance from the previous
reporting period).
206.55(c)(2)(iv).............. Determination of transportation Burden covered under Sec. 206.55(c)(2)(i).
allowances.
(c) Reporting requirements......
(2) Non-arm's-length or no
contract. (iv) For new
transportation facilities or
arrangements, the lessee's
initial Form MMS-4100 shall
include estimates of the
allowable oil transportation
costs for the applicable
period. * * *
206.55(c)(2)(v)............... Determination of transportation Burden covered under Sec. 206.55(c)(2)(i).
allowances.
(c) Reporting requirements......
(2) Non-arm's-length or no
contract. (v) * * * only those
allowances that have been
approved by MMS in writing * *
*
[[Page 34500]]
206.55(c)(2)(vi).............. Determination of transportation PRODUCE RECORDS
allowances. The ORA determined that the audit process is
(c) Reporting requirements...... not covered by the PRA because MMS staff asks
(2) Non-arm's-length or no non-standard questions to resolve exceptions.
contract. (vi) Upon request by
MMS, the lessee shall submit
all data used to prepare its
Form MMS-4410. The data shall
be provided within a reasonable
period of time, as determined
by MMS.
206.55(c)(4)(v) and (e)(2).... Determination of transportation Burden covered under OMB Control Number 1010-
allowances. 0140 (expires 10/31/2006). Burden covered
(c) Reporting requirements...... under Sec. 210.52.
(4) Transportationallowances
must be reported as a separate
line item on Form MMS-2014 * *
*.
-------------------------------
(e) Adjustments.................
(2) For lessees transporting
production from Indian leases,
the lessee must submit a
corrected Form MMS-2014 to
reflect actual costs * * *
-------------------------------
206-PRODUCT VALUATION
Subpart E--Indian Gas
----------------------------------------------------------------------------------------------------------------
206.172(b)(1)(ii)............. How do I value gas produced from 4 25 100
leases in an index zone?.
(b) Valuing residue gas and gas
before processing.
(1)(ii) Gas production that you
certify on Form MMS-4410, * * *
is not processed before it
flows into a pipeline with an
index but which may be
processed later * * *
(Part A of Form MMS-4410)
206.172(e)(6)(i) and (iii).... How do I value gas produced from 3 20 60
leases in an index zone?.
(e) Determining the minimum
value for royalty purposes of
gas sold beyond the first index
pricing point.
(6)(i) You must report the
safety net price for each index
zone to MMS on Form MMS-4411,
Safety Net Report, no later
than June 30 following each
calendar year; * * * (iii) MMS
may order you to amend your
safety net price within one
year from the date your Form
MMS-4411 is due or is filed,
whichever is later. * * *
206.172(b)(1)(ii)............. How do I value gas produced from Burden covered under OMB Control Number 1010-
leases in an index zone?. 0140 (expires 10/31/2006). Burden covered
(e) Determining the minimum under Sec. 210.52.
value for royalty purposes of
gas sold beyond the first index
pricing point..
(6)(ii) You must pay and report
on Form MMS-2014 additional
royalties due no later than
June 30 following each calendar
year * * *
206.172(f)(1)(ii), (f)(2), and How do I value gas produced from 40 1 40
(f)(3). leases in an index zone?.
(f) Exlcuding some or all tribal
leases from valuation under
this section.
(1) An Indian tribe may ask MMS
to exclude some or all of its
leases from valuation under
this section * * * (ii) If an
Indian tribe requests exclusion
from an index zone for less
than all of its leases, MMS
will approve the request only
if the excluded leases may be
segregated into one or more
groups based on separate fields
within the reservation.
(2) An Indian tribe may ask MMS
to terminate exclusion of its
leases from valuation under
this section. * * *.
(3) The Indian tribe's request
to MMS under either paragraph
(f)(1) or (2) of this section
must be in the form of a tribal
resolution. * * *.
206.173(a)(1) How do I calculate the 2 35 70
alternative methodology for
dual accounting?.
(a) Electing a dual accounting
method.
(1) * * * You may elect to
perform the dual accounting
calculation according to either
Sec. 206.176(a) (called
actual dual accounting), or
paragraph (b) of this section
(called the alternative
methodology for dual
accounting).
(Part B of Form MMS-4410)
206.173(a)(1) How do I calculate the Burden covered under Sec. 206.173(a)(1).
alternative methodology for
dual accounting?.
(a) electing a dual accounting
method.
(2) You must make a separate
election to use the alternative
methodology for dual accounting
for your Indian leases in each
MMS-designated area. * * *
[[Page 34501]]
(Part B of Form MMS-4410)
206.174(a)(4)(ii) How do I value gas production Burden covered under OMB Control Number 1010-
when an index-based method 0140 (expires 10/31/2006). Burden covered
cannot be used?. under Sec. 210.52.
(a) Situations in which on index-
based method cannot be used..
(4)(ii) If the major portion
value is higher, you must
submit an amended Form MMS-2014
to MMS by the due date
specified in the written notice
from MMS of the major portion
value. * * *
206.174(b)(1)(i) and (iii); How do I value gas production PRODUCE RECORDS
(b)(2); (d)(2) when an index-based methods The ORA determined that the audit process is
cannot be used?. not covered by the PRA because MMS staff asks
(b) Arm's-length contracts...... non-standard questions to resolve exceptions.
(1)(i) You have the burden of
demonstrating that your
contract is arm's-length. * * *
(iii) * * * In these
circumstances, MMS will notify
you and give you an opportunity
to provide written information
justifying your value. * * *.
(b)(2) MMS may require you to
certify that your arm's-length
contract provisions include all
of the consideration the buyer
pays, either directly or
indirectly, for the gas,
residue gas, or gas plant
produce.
(d) Supporting data............. .............. .............. ..............
(2) You must make all such data .............. .............. ..............
available upon request to the
authorized MMS or Indian
representatives, to the Office
of the Inspector General of the
Department, or other authorized
persons. * * *
206.174(f) How do I value gas production 40 1 40
when an index-based method
cannot be used?.
(f) Value guidance. You may ask .............. .............. ..............
MMS for guidance in determining
value. You may propose a
valuation methods to MMS.
Submit all available data
related to your proposal and
any additional information MMS
deems necessary. * * *
206.175(d)(4) How do I determine quantities 20 1 20
and qualities of production for
computing royalties?.
(d)(4) You may request MMS
approval of other methods for
determining the quality of
residue gas and gas plant
products allocable to each
lease. * * *
206.176(b).................... How do I perform accounting for Burden covered under Sec. 206.173.(a)(1).
comparison?.
(b) If you are required to
account for comparison, you may
elect to use the alternative
dual accounting methodology
provided for in Sec. 206.173
instead of the provision in
paragraph (a) of this section..
(Part B of Form MMS-4410)
206.176(c).................... How do I perform accounting for Burden covered under Sec. 206.172(b)(1)(ii).
comparison?.
(c) * * * If you do not perform
dual accounting, you must
certify to MMS that gas follows
into such a pipeline before it
is processed..
(Part A of Form MMS--4410)
-------------------------------
Transportation Allowances
----------------------------------------------------------------------------------------------------------------
206.177(c)(2) and (c)(3)...... What general requirements 4.25 1 4.25
regarding transportation
allowances apply to me?
(c)(2) If you ask MMS, MMS may
approve a transportation
allowance deduction in excess
of the limitation in paragraph
(c)(1) of this section. * * *
(3) Your application for 4.25 1 4.25
exception (using Form MMS-4393,
Request to Exceed Regulatory
Allowance Limitation) must
contain all relevant and
supporting documentation
necessary for MMS to make a
determination.
206.178(a)(1)(i).............. How do I determine a 1 50 50
transportation allowance?.
(a) Determining a transportation
allowance under an arm's-length
contract.
(1)(i) * * * You are required to
submit to MMS a coy of your
arm's-length transportation
contract(s) and all subsequent
amendments to the contract(s)
within 2 months of the date MMS
receives your report which
claims the allowance on Form
MMS-2014.
[[Page 34502]]
206.178(a)(1)(iii)............ How do I determine a PRODUCE RECORDS
transportation allowance?. The ORA determined that the audit process is
(a) Determining a transportation not covered by the PRA because MMS staff asks
allowance under an arm's-length non-standard questions to resolve exceptions.
contract.
(1)(iii) If MMS determines that
the consideration paid under an
arm's-length transportation
contract does not reflect the
value of the transportation
because of misconduct by or
between the contracting parties
* * *. In these circumstances,
MMS will notify you and give
you an opportunity to provide
written information justifying
your transportation costs..
206.178(a)(2)(i) and (ii)..... How do I determine a 20 1 20
transportation allowance?.
(a) Determining a transportation
allowance under an arm's-length
contract.
(2)(i) * * * you cannot take an
allowance for the costs of
transporting lease production
that is not royalty bearing
without MMS approval, or
without lessor approval on
tribal leases.
(ii) As an alternative to
paragraph (a)(2)(i), you may
propose to MMS a cost
allocation method based on the
values of the products
transported.* * *
206.178(a)(3)(i) and (ii)..... How do I determine a 40 1 40
transportation allowance?.
(a) Determining a transportation
allowance under an arm's-length
contract.
(3)(i) If your arm's-length
transportation contract
includes both gaseous and
liquid products and the
transportation costs
attributable to each cannot be
determined from the contract,
you must propose an allocation
procedure to MMS. * * *
(ii) You are required to submit
all relevant data to support
your allocation proposal. * * *
206.178(b)(1)(ii)............. How do I determine a 15 7 105
transportation allowance?.
(b) Determining a transportation
allowance under a non-arm's-
length contract or no contract.
(1)(ii) * * * You must submit
the actual cost information to
support the allowance to MMS on
Form MMS-4295, Gas
Transportation Allowance
Report, within 3 months after
the end of the 12-month period
to which the allowance
applies.* * *
206.178(b)(2)(iv)............. How do I determine a 20 1 20
transportation allowance?.
(b) Determining a transportation
allowance under a non-arm's-
length contract or no contract.
(2)(iv) You may use either
depreciation with a return on
undepreciated capital
investment or a return on
depreciable capital investment.
* * * you may not later elect
to change to the other
alternative without MMS
approval.
206.178(b)(2)(iv)(A).......... How do I determine a 20 1 20
transportation allowance?.
(b) Determining a transportation
allowance under a non-arm's-
length contract or no contract.
(2)(iv)(A) * * * Once you make
an election, you may not change
methods without MMS approval. *
* *
206.178(b)(3)(i).............. How do I determine a 40 1 40
transportation allowance?.
(b) Determining a transportation
allowance under a non-arm's-
length contract or no contract.
(3)(i) * * * Except as provided
in this paragraph, you may not
take an allowance for
transporting a product that is
not royalty bearing without MMS
approval.
206.178(b)(3)(ii)............. How do I determine a 20 1 20
transportation allowance?.
(b) Determining a transportation
allowance under a non-arm's-
length contract or no contract.
(3)(ii) As an alternative to the
requirements of paragraph
(b)(3)(i) of this section, you
may propose to MMS a cost
allocation method based on the
values of the products
transported. * * *
206.178 (b)(5)................ How do I determine a 40 1 40
transportation allowance?.
(b) Determining a transportation
allowance under a non-arm's-
length contract or no contract.
(5) If you transport both
gaseous and liquid products
through the same transportation
system, you must propose a cost
allocation procedure to MMS. *
* * You are required to submit
all relevant data to support
your proposal. * * *
[[Page 34503]]
206.178 (d)(1)................ How do I determine a PRODUCE RECORDS
transportation allowance?. The ORA determined that the audit process is
(d) Reporting your not covered by the PRA because MMS staff asks
transportation allowance.. nonstandard questions to resolve exceptions.
(1) If MMS requests, you must
submit all data used to
determine your transportation
allowance. * * *.
206.178 (d)(2), (e), and How do I determine a Burden covered under OMB Control Number 1010-
(f)(1). transportation allowance?. 0140 (expires 10/31/2006). Burden covered
(d) Reporting your allowance.... under Sec. 210.52.
(2) You must report
transportation allowances as a
separate line item on Form MMS-
2014. * * *.
-------------------------------
