Agency Information Collection Activities: Proposed Collection, Comment Request, 34494-34505 [05-11682]

Download as PDF 34494 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. VerDate jul<14>2003 20:14 Jun 13, 2005 Jkt 205001 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 PO 00000 Frm 00054 Fmt 4703 Sfmt 4703 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— E:\FR\FM\14JNN1.SGM 14JNN1 Federal Register / Vol. 70, No. 113 / Tuesday, June 14, 2005 / Notices 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 VerDate jul<14>2003 20:14 Jun 13, 2005 Jkt 205001 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, PO 00000 Frm 00055 Fmt 4703 Sfmt 4703 34495 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 E:\FR\FM\14JNN1.SGM 14JNN1 34496 Federal Register / Vol. 70, No. 113 / Tuesday, June 14, 2005 / Notices 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. VerDate jul<14>2003 20:14 Jun 13, 2005 Jkt 205001 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 PO 00000 Frm 00056 Fmt 4703 Sfmt 4703 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 E:\FR\FM\14JNN1.SGM 14JNN1 34497 Federal Register / Vol. 70, No. 113 / Tuesday, June 14, 2005 / Notices 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) ............... VerDate jul<14>2003 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 ......................................................................... 20:14 Jun 13, 2005 Jkt 205001 PO 00000 Frm 00057 Fmt 4703 Sfmt 4703 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. E:\FR\FM\14JNN1.SGM 20 14JNN1 1 20 34498 Federal Register / Vol. 70, No. 113 / Tuesday, June 14, 2005 / Notices 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) ............... VerDate jul<14>2003 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 Jkt 205001 PO 00000 Frm 00058 Fmt 4703 Sfmt 4703 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 20 1 20 20 1 20 40 1 40 20 1 20 20 1 20 14JNN1 34499 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 Jkt 205001 PO 00000 Frm 00059 Fmt 4703 Sfmt 4703 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). E:\FR\FM\14JNN1.SGM 14JNN1 34500 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. * * * 20:14 Jun 13, 2005 Jkt 205001 PO 00000 Frm 00060 Fmt 4703 Sfmt 4703 4 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). E:\FR\FM\14JNN1.SGM 14JNN1 34501 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. 20:14 Jun 13, 2005 Jkt 205001 PO 00000 Frm 00061 Fmt 4703 Sfmt 4703 E:\FR\FM\14JNN1.SGM 4.25 1 4.25 4.25 1 4.25 1 14JNN1 50 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. * * * Jkt 205001 PO 00000 Frm 00062 Fmt 4703 Sfmt 4703 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 34503 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 Jkt 205001 PO 00000 Frm 00063 Fmt 4703 Sfmt 4703 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 VerDate jul<14>2003 20:14 Jun 13, 2005 Jkt 205001 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, PO 00000 Frm 00064 Fmt 4703 Sfmt 4703 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 http:// 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 http:// 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. VerDate jul<14>2003 20:14 Jun 13, 2005 Jkt 205001 PO 00000 Frm 00065 Fmt 4703 Sfmt 4703 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 14JNN1

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]


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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).

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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. * * *.
-------------------------------