Agency Information Collection Activities: Proposed Collection, Comment Request, 42366-42377 [05-14528]
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42366
Federal Register / Vol. 70, No. 140 / Friday, July 22, 2005 / Notices
Township 28 North, Range 33 West,
Principal Meridian, Montana, was accepted
June 17, 2005.
T. 28 N., R. 34 W.
The plat, representing Amended
Protraction Diagram 39 of unsurveyed
Township 28 North, Range 34 West,
Principal Meridian, Montana, was accepted
June 17, 2005.
Tps. 33, 34, 35, 36, and 37 N., Rs. 30, 31, 32,
33, and 34 W.
The plat, representing the Amended
Protraction Diagram 49 Index of unsurveyed
Townships 33, 34, 35, 36, and 37 North,
Ranges 30, 31, 32, 33, and 34 West, Principal
Meridian, Montana, was accepted May 24,
2005.
T. 33 N., R. 30 W.
The plat, representing Amended
Protraction Diagram 49 of unsurveyed
Township 33 North, Range 30 West,
Principal Meridian, Montana, was accepted
May 24, 2005.
T. 33 N., R. 32 W.
The plat, representing Amended
Protraction Diagram 49 of unsurveyed
Township 33 North, Range 32 West,
Principal Meridian, Montana, was accepted
May 24, 2005.
T. 33 N., R. 33 W.
The plat, representing Amended
Protraction Diagram 49 of unsurveyed
Township 33 North, Range 33 West,
Principal Meridian, Montana, was accepted
May 24, 2005.
T. 34 N., R. 30 W.
The plat, representing Amended
Protraction Diagram 49 of unsurveyed
Township 34 North, Range 30 West,
Principal Meridian, Montana, was accepted
May 24, 2005.
T. 34 N., R. 31 W.
The plat, representing Amended
Protraction Diagram 49 of unsurveyed
Township 34 North, Range 31 West,
Principal Meridian, Montana, was accepted
May 24, 2005.
T. 34 N., R. 32 W.
The plat, representing Amended
Protraction Diagram 49 of unsurveyed
Township 34 North, Range 32 West,
Principal Meridian, Montana, was accepted
May 24, 2005.
T. 34 N., R. 33 W.
The plat, representing Amended
Protraction Diagram 49 of unsurveyed
Township 34 North, Range 33 West,
Principal Meridian, Montana, was accepted
May 24, 2005.
T. 34 N., R. 34 W.
The plat, representing Amended
Protraction Diagram 49 of unsurveyed
Township 34 North, Range 34 West,
Principal Meridian, Montana, was accepted
May 24, 2005.
T. 35 N., R. 30 W.
The plat, representing Amended
Protraction Diagram 49 of unsurveyed
Township 35 North, Range 30 West,
Principal Meridian, Montana, was accepted
May 24, 2005.
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T. 35 N., R. 31 W.
The plat, representing Amended
Protraction Diagram 49 of unsurveyed
Township 35 North, Range 31 West,
Principal Meridian, Montana, was accepted
May 24, 2005.
T. 35 N., R. 32 W.
The plat, representing Amended
Protraction Diagram 49 of unsurveyed
Township 35 North, Range 32 West,
Principal Meridian, Montana, was accepted
May 24, 2005.
T. 35 N., R. 33 W.
The plat, representing Amended
Protraction Diagram 49 of unsurveyed
Township 35 North, Range 33 West,
Principal Meridian, Montana, was accepted
May 24, 2005.
T. 35 N., R. 34 W.
The plat, representing Amended
Protraction Diagram 49 of unsurveyed
Township 35 North, Range 34 West,
Principal Meridian, Montana, was accepted
May 24, 2005.
T. 36 N., R. 32 W.
The plat, representing Amended
Protraction Diagram 49 of unsurveyed
Township 36 North, Range 32 West,
Principal Meridian, Montana, was accepted
May 24, 2005.
T. 36 N., R. 33 W.
The plat, representing Amended
Protraction Diagram 49 of unsurveyed
Township 36 North, Range 33 West,
Principal Meridian, Montana, was accepted
May 24, 2005.
T. 36 N., R. 34 W.
The plat, representing Amended
Protraction Diagram 49 of unsurveyed
Township 36 North, Range 34 West,
Principal Meridian, Montana, was accepted
May 24, 2005.
T. 37 N., R. 32 W.
The plat, representing Amended
Protraction Diagram 49 of unsurveyed
Township 37 North, Range 32 West,
Principal Meridian, Montana, was accepted
May 24, 2005.
T. 37 N., R. 33 W.
The plat, representing Amended
Protraction Diagram 49 of unsurveyed
Township 37 North, Range 33 West,
Principal Meridian, Montana, was accepted
May 24, 2005.
T. 37 N., R. 34 W.
The plat, representing Amended
Protraction Diagram 49 of unsurveyed
Township 37 North, Range 34 West,
Principal Meridian, Montana, was accepted
May 24, 2005.
We will place copies of the plats of
the amended protraction diagrams we
described in the open files. They will be
available to the public as a matter of
information.
If BLM receives a protest against these
amended protraction diagrams, as
shown on these plats, prior to the date
of the official filings, we will stay the
filings pending our consideration of the
protest.
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We will not officially file these plats
of the amended protraction diagrams
until the day after we have accepted or
dismissed all protests and they have
become final, including decisions or
appeals.
Dated: July 14, 2005.
Thomas M. Deiling,
Chief Cadastral Surveyor, Division of
Resources.
[FR Doc. 05–14487 Filed 7–21–05; 8:45 am]
BILLING CODE 4310–$$–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–
0136).
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 new title of this information
collection request (ICR) is titled ‘‘30
CFR PART 206—PRODUCT
VALUATION, subpart C—Federal Oil
and subpart D—Federal Gas (Form
MMS–4393, Request to Exceed
Regulatory Allowance Limitation).’’ We
changed the title of this information
collection request (ICR) to clarify the
regulatory language we are covering
under 30 CFR part 206, and to
incorporate relevant portions of three
previous ICRs. The three ICRs, now
consolidated into this ICR, were
previously titled:
• 1010–0095: 30 CFR Part 206—
Product Valuation (Request to Exceed
Transportation and Processing
Allowance Limitation), subpart B—
Indian Oil, § 206.54(b)(2); subpart C—
Federal Oil, § 206.109(c)(2); subpart D—
Federal Gas, §§ 206.156(c)(3),
206.158(c)(3), and 206.158(d)(2)(i); and
subpart E—Indian Gas, §§ 206.177(c)(2)
and 206.177(c)(3);
• 1010–0136: 30 CFR 206—subpart C,
Federal Oil Valuation; and
• 1010–0157: 30 CFR 206—subpart C,
Federal Oil.
Citations concerning Indian oil and
gas, referred to in the above three ICRs,
are currently covered in ICR 1010–0103.
DATES: Submit written comments on or
before September 20, 2005.
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Federal Register / Vol. 70, No. 140 / Friday, July 22, 2005 / Notices
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 or wish to hand carry
your comments, 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 email sharron.gebhardt@mms.gov.
SUPPLEMENTARY INFORMATION:
Title: 30 CFR PART 206—PRODUCT
VALUATION, subpart C—Federal Oil
and subpart D—Federal Gas (Form
MMS–4393, Request to Exceed
Regulatory Allowance Limitation).
OMB Control Number: 1010–0136.
Bureau Form Number: Form MMS–
4393.
Abstract: The Department of the
Interior is responsible for matters
relevant to mineral resource
development on Federal and Indian
lands and the Outer Continental Shelf
(OCS). The Secretary of the Interior is
responsible for managing the production
of minerals from Federal and Indian
lands and the OCS, collecting royalties
from lessees who produce minerals, and
distributing the funds collected in
accordance with applicable laws. The
MMS assists the Secretary in performing
the royalty management functions.
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
ADDRESSES:
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information collected includes data
necessary to ensure that the royalties are
paid appropriately.
Section 101(a) of the Federal Oil and
Gas Royalty Management Act of 1982
(FOGRMA), as amended, requires that
the Secretary ‘‘establish a
comprehensive inspection, collection,
and fiscal and production accounting
and auditing system to provide the
capability to accurately determine oil
and gas royalties, interest, fines,
penalties, fees, deposits, and other
payments owed, and collect and
account for such amounts in a timely
manner.’’ In order to accomplish these
tasks, MMS developed valuation
regulations for Federal leases at 30 CFR
part 206—Product Valuation. Market
value is a basic principle underlying
royalty valuation. Consequently, these
regulations include methods to capture
the true market value of crude oil and
gas produced from Federal leases, both
onshore and offshore. The valuation
regulations at 30 CFR part 206 require
companies to collect and/or submit
information used to value their Federal
oil and gas.
The MMS uses the information
collected to ensure that proper royalty is
paid on oil and gas produced from
Federal onshore and offshore leases.
Please refer to the chart for all reporting
requirements and associated burden
hours. Regulations developed ensure the
information requested is the minimum
necessary to carry out our mission and
places the least possible burden on
respondents. The requested information
provides a critical link to establishing
the proper value of oil and gas from
Federal lands. If the information is not
collected, it may result in a loss of
royalties for both Federal and state
governments.
Transportation and Processing
Allowances
Under certain circumstances, lessees
are authorized to claim a transportation
allowance for the reasonable actual
costs of transporting the royalty portion
of produced oil and gas from the lease
to a processing or sales point not in the
immediate lease area.
When gas is processed for the
recovery of gas plant products, lessees
may claim a processing allowance.
Transportation and processing
allowances are a part of the product
valuation process that MMS uses to
determine if the lessee is reporting and
paying the proper royalty amount.
The regulations establish a limit on
transportation allowance deductions for
oil and gas at 50 percent of the value of
the oil and gas at the point of sale. The
MMS may approve a transportation
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42367
allowance in excess of 50 percent upon
proper application from the lessee.
Similarly, the regulations establish a
limit of 662⁄3 percent of the value of
each gas plant product as an allowable
gas processing deduction. The MMS
may also approve a processing
allowance in excess of 662⁄3 percent
upon proper application from the lessee.
Request To Exceed Regulatory
Allowance Limitation
The MMS may approve an allowance
exceeding the regulatory allowance
limit upon proper application from the
lessee. To request permission to exceed
a regulatory allowance limit, lessees
must write a letter to MMS explaining
why a higher allowance limit is
necessary and provide supporting
documentation. The MMS developed
Form MMS–4393, Request to Exceed
Regulatory Allowance Limitation, to
accompany the lessee’s letter requesting
approval to exceed the regulatory
allowance limit. This form provides
MMS with the data necessary to make
a decision and track deductions on
royalty reports. Data reported on the
form is also subject to subsequent audit
and adjustment.
Proprietary information submitted to
MMS under this collection is protected,
and no items of a sensitive nature are
collected. A response is mandatory for
valuation requirements and required to
obtain the benefit of allowances.
Applicable Citations
Applicable citations of the laws
pertaining to mineral leases include
Public Law 97–451—Jan. 12, 1983
(Federal Oil and Gas Royalty
Management Act of 1982 [FOGRMA]);
Public Law 104–185—Aug. 13, 1996
(Federal Oil and Gas Royalty
Simplification and Fairness Act of 1996
[RSFA]), as corrected by Public Law
104–200—Sept. 22, 1996); the Mineral
Leasing Act of 1920, Section 36, as
amended (30 U.S.C. 192); Outer
Continental Shelf Lands Act of 1953,
Section 27, as amended (43 U.S.C.
1353); 30 U.S.C. 189 pertaining to
Public Lands; 30 U.S.C. 359 pertaining
to Acquired Lands; and 43 U.S.C. 1334
pertaining to OCS Lands. Public laws
pertaining to mineral royalties are
located on our Web site at https://
www.mrm.mms.gov/Laws_R_D/
PublicLawsAMR.htm.
The applicable regulations include 30
CFR part 206—Product Valuation. In
addition, we also are including
applicable citations from the 2004
Federal Oil Valuation Rule (69 FR
24959, published May 5, 2004) and the
2005 Federal Gas Valuation Rule (70 FR
11869, published March 10, 2005).
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Federal Register / Vol. 70, No. 140 / Friday, July 22, 2005 / Notices
Frequency of Response: Monthly, and
when necessary, annually.
Estimated Number and Description of
Respondents: 100 Federal lessees.
Estimated Annual Reporting and
Recordkeeping ‘‘Hour’’ Burden: 21,815
hours.
We are revising this ICR to include
non-standard reporting requirements
that were overlooked in the previous
renewal, and we have adjusted the
burden hours accordingly. The hours
also reflect our recent analysis related to
the implementation of the 2004 Federal
Oil Valuation rule and the 2005 Federal
Gas Valuation rule. 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 breakdown of the estimated
burden hours by CFR section and
paragraph:
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS
Citation 30 CFR
206
Reporting and recordkeeping requirement
Average number of annual
responses
Hour burden
Annual burden
hours
Subpart C—Federal Oil
§ 206.102
206.102(e)(1) .........
How do I calculate royalty value for oil that I or my affiliate sell(s) under an arm’s-length contract?
206.102(e) If you value oil under paragraph (a) of this section: (1)
MMS may require you to certify that your or your affiliate’s arm’slength contract provisions include all of the consideration the buyer
must pay, either directly or indirectly, for the oil.
§ 206.103
206.103 ..................
206.103(a) .............
206.103(a)(4) .........
206.103(b)(1) .........
206.103(b)(1)(ii) .....
206.103(b)(4) .........
206.103(c)(1) .........
206.103(e)(1) .........
206.103(e)(2) .........
How do I value oil that is not sold under an arm’s-length contract?
This section explains how to value oil that you may not value under
§ 206.102 or that elect under § 206.102(d) to value under this section. First determine whether paragraph (a), (b), or (c) of this section
applies to production from your lease, or whether you may apply
paragraph (d) or (e) with MMS approval.
206.103 (a) Production from leases in California or Alaska. Value is
the average of the daily mean ANS spot prices published in any
MMS-approved publication during the trading month most concurrent with the production month * * *
(1) To calculate the daily mean spot price * * * ....................................
(2) Use only the days * * * .....................................................................
(3) You must adjust the value * * *.
206.103(a)(4) After you select an MMS-approved publication, you may
not select a different publication more often than once every 2
years, * * *.
206.103(b) Production from leases in the Rocky Mountain Region.
* * * (1) If you have an MMS-approved tendering program, you
must value oil * * *.
206.103(b)(1)(ii) If you do not have an MMS-approved tendering program, you may elect to value your oil under either paragraph (b)(2)
or (b)(3) of this section. * * *.
206.103(b)(4) If you demonstrate to MMS’s satisfaction that paragraphs (b)(1) through (b)(3) of this section result in an unreasonable
value for your production as a result of circumstances regarding that
production, the MMS Director may establish an alternative valuation
method.
206.103(c) Production from leases not located in California, Alaska or
the Rocky Mountain Region. (1) Value is the NYMEX price, plus the
roll, adjusted for applicable location and quality differentials and
transportation costs under § 206.112.
206.103(e) Production delivered to your refinery and the NYMEX price
or ANS spot price is an unreasonable value. (1) * * * you may
apply to the MMS Director to establish a value representing the
market at the refinery if: * * *.
206.103(e)(2) You must provide adequate documentation and evidence demonstrating the market value at the refinery * * *.
§ 206.105
206.105 ..................
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33.25
206.105 If you determine the value of your oil under this subpart, you
must retain all data relevant to the determination of royalty value.
* * *.
166.25
8
2
16
400
2
800
400
2
800
400
2
800
50
10
500
330
2
660
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–0140 (Form MMS–2014), expires 10/31/
2006.
How do I request a value determination?
206.107(a) You may request a 330 82,640 value determination from
MMS * * *.
19:28 Jul 21, 2005
5
What records must I keep to support my calculations of value under this subpart?
§ 206.107
206.107(a) .............
PRODUCE RECORDS—The ORA determined
that the audit process is not covered by the
PRA because MMS staff asks non-standard
questions to resolve exceptions.
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8
2,640
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Federal Register / Vol. 70, No. 140 / Friday, July 22, 2005 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Citation 30 CFR
206
Reporting and recordkeeping requirement
Hour burden
Average number of annual
responses
Annual burden
hours
1
4.25
§ 206.109 When may I take a transportation allowance in determining value?
206.109(c)(2) .........
206.109(c) Limits on transportation allowances. (2) You may ask MMS
to approve a transportation allowance in excess of the limitation in
paragraph (c)(1) of this section.
* * * 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. * * *.
§ 206.110
4.25
How do I determine a transportation allowance under an arm’s-length transportation contract?
206.110(a) .............
206.110(a) * * * You must be able to demonstrate that you or your affiliate’s contract is at arm’s length. * * *.
206.110(d)(3) .........
216.110(d) If your arm’s-length transportation contract includes more
than one liquid product, and the transportation costs attributable to
each product cannot be determined * * *
(3) You may propose to MMS a cost allocation method * * *
206.110(e) If your 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, then
you must propose an allocation procedure to MMS.
206.110(e) .............
206.110(e)(1) .........
206.110(e)(1) * * * If MMS rejects your cost allocation, you must
amend your Form MMS–2014 * * *.
206.110(e)(2) .........
206.110(e)(2) You must submit your initial proposal, including all available data, within 3 months after first claiming the allocated deductions on Form MMS–2014.
206.110(g)(2) .........
PRODUCE RECORDS—The ORA determined
that the audit process is not covered by the
PRA because MMS staff asks non-standard
questions to resolve exceptions.
330
330
206.110(g) If your arm’s-length sales includes a provision reducing the
contract price by a transportation factor, * * * (2) You must obtain
MMS approval before claiming a transportation factor in excess of
50 percent of the base price of the product.
§ 206.111
206.111(k)(2) .........
206.111(l)(1) ..........
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–0140 (Form MMS–2014), expires 10/31/
2006.
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–0140, (Form MMS–2014), expires 10/31/
2006.
330
206.111(g) To compute depreciation, you may elect to use either * * *
After you make an election, you may not change methods without
MMS approval. * * *.
206.111(k)(2) You may propose to MMS a cost allocation method on
the basis of the values * * *.
206.111(l)(1) Where you transport both gaseous and liquid products
through the same transportation system, you must propose a cost
allocation procedure to MMS.
206.111(l)(2) ..........
206.111(l)(2) * * * If MMS rejects your cost allocation, you must
amend your Form MMS–2104 for the month/months that you used
the rejected method and pay any additional royalty and interest due.
206.111(l)(3) ..........
206.111(l)(3) You must submit your initial proposal, including all available data, within 3 months after first claiming the allocated deductions on Form MMS–2014.
1
330
330
1
330
330
1
330
330
1
330
There are no burden hours to report in this ICR.
All burden hours associated with your Form
MMS–2104 are included in OMB Control Number 1010–0140 (Form MMS–2014), expires 10/
31/2006.
Burden covered under § 206.111(l)(1).
What adjustments and transportation allowances apply when I value oil production from my lease using NYMEX prices or
ANS spot prices?
206.112(a)(1)(ii) .....
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660
330
How do I determine a transportation allowance if I do not have an arm’s-length transportation contract or arm’s-length
tariff?
206.111(g) .............
§ 206.112
2
1
206.112(a)(1)(ii) * * * under an exchange agreement that is not at
arm’s length, you must obtain approval from MMS for a location and
quality differential. * * *..
19:28 Jul 21, 2005
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330
42370
Federal Register / Vol. 70, No. 140 / Friday, July 22, 2005 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Citation 30 CFR
206
Reporting and recordkeeping requirement
206.112(a)(1)(ii) .....
206.112(a)(1)(ii) * * * If MMS prescribes a different differential, you
must apply * * *. You must pay any additional royalties owed * * *
plus the late payment interest from the original royalty due date, or
you may report a credit * * *.
206.112(a)(3) If you transport or exchange at arm’s length (or both
transport and exchange) at least 20 percent, but not all, of your oil
produced from the lease to a market center, determine the adjustment between the lease and the market center for the oil that is not
transported or exchanged (or both transported and exchanged) to or
through a market center as follows: * * *.
206.112(a)(4) If you transport or exchange (or both transport and exchange) less than 20 percent of your crude oil produced from the
lease between the lease and a market center, you must propose to
MMS an adjustment between the lease and the market center for
the portion of the oil that you do not transport or exchange (or both
transport and exchange) to a market center. * * *.
206.112(a)(4) If MMS prescribes a different adjustment * * *. You
must pay any additional royalties owed * * * plus the late payment
interest from the original royalty due date, or you may report a credit
* * *.
206.112(b)(3) * * * you may propose an alternative differential to
MMS. * * * If MMS prescribes a different differential * * *. You
must pay any additional royalties owed * * * plus the late payment
interest from the original royalty due date, or you may report a credit
* * *.
206.112(c)(2) * * * If quality bank adjustments do not incorporate or
provide for adjustments for sulfur content, you may make sulfur adjustments, based on the quality of the representative crude oil at the
market center, of 5.0 cents per one-tenth percent difference in sulfur
content, unless MMS approves a higher adjustment.
206.112(a)(3) .........
206.112(a)(4) .........
206.112(a)(4) .........
206.112(b)(3) .........
206.112(c)(2) .........
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Average number of annual
responses
Annual burden
hours
330
2
660
330
4
1,320
330
4
1,320
330
4
1,320
330
2
660
Hour burden
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Federal Register / Vol. 70, No. 140 / Friday, July 22, 2005 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Citation 30 CFR
206
Reporting and recordkeeping requirement
§ 206.114
Hour burden
Annual burden
hours
What are my reporting requirements under an arm’s-length transportation contract?
206.114 ..................
206.114 You or your affiliate must use a entry on Form MMS 2014 to
notify MMS of an allowance based on transportation costs you or
your affiliate incur.
206.114 ..................
206.114 MMS may require you or your affiliate to submit arm’s-length
transportation contracts, production agreements, operating agreements, and related documents.
§ 206.115
Average number of annual
responses
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–0140 (Form MMS–2014), expires 10/31/
2006.
PRODUCE RECORDS—The ORA determined
that the audit process is not covered by the
PRA because MMS staff asks non-standard
questions to resolve exceptions.
What are my reporting requirements under a non-arm’s-length transportation arrangement?
206.115(a) .............
206.115(a) You or your affiliate must use a separate entry on Form
MMS–2014 to notify MMS of an allowance based on transportation
costs you or your affiliate incur.
206.115(c) ..............
206.115(c) MMS may require you or your affiliate to submit all data
used to calculate the allowance deduction. * * *.
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–0140 (Form MMS–2014), expires 10/31/
2006.
PRODUCE RECORDS—The ORA determined
that the audit process is not covered by the
PRA because MMS staff asks non-standard
questions to resolve exceptions.
Subpart D—Federal Gas
§ 206.152
Valuation standards—unprocessed gas.
206.152(b)(1)(i) ......
206.152(b)(1)(i) * * * The lessee shall have the burden of demonstrating that its contract is arm’s-length. * * *.
206.152(b)(1)(iii) ....
206.152(b)(1)(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.
206.152(b)(2) .........
206.152(b)(2) * * * The lessee must request a value determination in
accordance with paragraph (g) of this section for gas sold pursuant
to a warranty contract; * * *.
206.152(b)(3) .........
206.152(b)(3) MMS may require a lessee to certify that its arm’slength contract provisions include all of the consideration to be paid
by the buyer, either directly or indirectly, for the gas.
206.152(e)(1) .........
206.152(e)(1) Where the value is determined pursuant to paragraph
(c) of this section, the lessee shall retain all data relevant to the determination of royalty value. * * *.
206.152(e)(2) .........
206.152(e)(2) Any Federal lessee will make available upon request to
the authorized MMS or State representatives, to the Office of the Inspector General of the department of the Interior, or other person
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.
206.152(e)(3) .........
206.152(e)(3) A lessee shall notify MMS if it has determined value
pursuant to paragraph (c)(2) or (c)(3) of this section. * * *.
206.152(g) The lessee may request a value determination from MMS.
* * * the lessee shall submit all available data relevant to its proposal. * * *.
206.152(g) .............
VerDate jul<14>2003
19:28 Jul 21, 2005
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Frm 00073
Fmt 4703
Sfmt 4703
PRODUCE RECORDS—The ORA determined
that the audit process is not covered by the
PRA because MMS staff asks non-standard
questions to resolve exceptions.
PRODUCE RECORDS—The ORA determined
that the audit process is not covered by the
PRA because MMS staff asks non-standard
questions to resolve exceptions.
330
1
330
PRODUCE RECORDS—The ORA determined
that the audit process is not covered by the
PRA because MMS staff asks non-standard
questions to resolve exceptions.
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–0140 (Form MMS–2014), expires 10/31/
2006.
PRODUCE RECORDS—The 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\22JYN1.SGM
330
2
660
330
6
1,980
22JYN1
42372
Federal Register / Vol. 70, No. 140 / Friday, July 22, 2005 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Citation 30 CFR
206
Reporting and recordkeeping requirement
§ 206.153
Hour burden
206.153(b)(1)(i) * * * The lessee shall have the burden of demonstrating that its contract is arm’s-length. * * *.
206.153(b)(1)(iii) ....
206.153(b)(1)(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.
206.153(b)(2) .........
206.153(b)(2) * * * The lessee must request a value determination in
accordance with paragraph (g) of this section for gas sold pursuant
to a warranty contract; * * *.
206.153(b)(3) .........
206.153(b)(3) MMS may require a lessee to certify that its arm’slength contract provisions include all of the consideration to be paid
by the buyer, either directly or indirectly, for the residue gas or gas
plant product.
206.153(e)(1) Where the value is determined pursuant to paragraph
(c) of this section, the lessee shall retain all data relevant to the determination of royalty value. * * *.
206.153(e)(2) .........
206.153(e)(2) Any Federal lessee will make available upon request to
the authorized MMS or State 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 residue gas and gas plant products sold,
purchased or otherwise obtained by the lessee from the same processing plant or from nearby processing plants.
206.153(e)(3) .........
PRODUCE RECORDS—The ORA determined
that the audit process is not covered by the
PRA because MMS staff asks non-standard
questions to resolve exceptions.
PRODUCE RECORDS—The ORA determined
that the audit process is not covered by the
PRA because MMS staff asks non-standard
questions to resolve exceptions.
330
§ 206.154
206.154(c)(4) .........
VerDate jul<14>2003
206.154(c)(4) * * * A lessee may request MMS approval of other
methods for determining the quantity of residue gas and gas plant
products allocable to each lease. * * *.
Jkt 205001
330
2
660
330
4
1,320
330
1
330
4.25
4
17
Transportation allowances—general.
206.156(c)(3) Upon request of a lessee, MMS may approve a transportation allowance deduction in excess of the limitation prescribed
by paragraphs (c)(1) and (c)(2) 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. * * *.
19:28 Jul 21, 2005
330
Determination of quantities and qualities for computing royalties.
§ 206.156
206.156(c)(3) .........
1
PRODUCE RECORDS—The ORA determined
that the audit process is not covered by the
PRA because MMS staff asks non-standard
questions to resolve exceptions.
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–0140 (Form MMS–2014), expires 10/31/
2006.
PRODUCE RECORDS—The ORA determined
that the audit process is not covered by the
PRA because MMS staff asks non-standard
questions to resolve exceptions.
206.153(e)(2) A lessee shall notify MMS if it has determined any value
pursuant to paragraph (c)(2) or (c)(3) of this section. * * *.
206.153(g) The lessee may request a value determination from MMS
* * * the lessee shall submit all available data relevant to its proposal. * * *.
206.153(g) .............
Annual burden
hours
Valuation standards—processed gas.
206.153(b)(1)(i) ......
206.153(e)(1) .........
Average number of annual
responses
PO 00000
Frm 00074
Fmt 4703
Sfmt 4703
E:\FR\FM\22JYN1.SGM
22JYN1
42373
Federal Register / Vol. 70, No. 140 / Friday, July 22, 2005 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Citation 30 CFR
206
Reporting and recordkeeping requirement
§ 206.157
Hour burden
206.157(a) Arm’s-length transportation contracts. (1)(i) * * * The lessee shall have the burden of demonstrating that its contract is
arm’s-length. * * *.
206.157(a)(1)(i) ......
206.157(a)(1)(i) * * * The lessee must claim a transportation allowance by reporting it on a separate line entry on the Form MMS–
2014.
206.157(a)(1)(iii) ....
206.157(a)(1)(iii) * * * When MMS determines that the value of the
transportation may be unreasonable, MMS will notify the lessee and
give the lessee an opportunity to provide written information justifying the lessee’s transportation costs.
206.157(a)(2)(ii) .....
206.157(a)(2)(ii) * * * the lessee may propose to MMS a cost allocation method on the basis of the values of the products transported.
* * *.
206.157(a)(3) If an arm’s-length transportation contract includes both
gaseous and liquid products and the transportation costs attributable
to each cannot be determined from the contract, the lessee shall
propose an allocation procedure to MMS. *** The lessee shall submit all relevant data to support its proposal. * * *.
206.157(a)(5) * * * The transportation factor may not exceed 50 percent of the base price of the product without MMS approval.
206.157(a)(5) .........
206.157(b)(1) .........
206.157(b) Non-arm’s-length or no contract. (1) The lessee must claim
a transportation allowance by reporting it on a separate line entry on
the Form MMS–2014. * * *.
206.157(b)(2)(iv) ....
206.157(b)(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.
After an election is made, the lessee may not change methods without
MMS approval. * * *.
206.157(b)(3)(i) * * * Except as provided in this paragraph, the lessee
may not take an allowance for transporting a product which is not
royalty bearing without MMS approval.
206.157(b)(3)(ii) * * * the lessee may propose to the MMS a cost allocation method on the basis of the values of the products transported.
206.157(b)(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
relevant data to support its proposal. * * *.
206.157(b)(2)(iv)(A)
206.157(b)(3)(i) ......
206.157(b)(3)(ii) .....
206.157(b)(4) .........
VerDate jul<14>2003
19:28 Jul 21, 2005
Jkt 205001
PO 00000
Annual burden
hours
Determination of transportation allowances.
206.157(a)(1)(i) ......
206.157(a)(3) .........
Average number of annual
responses
Frm 00075
Fmt 4703
Sfmt 4703
PRODUCE RECORDS—The ORA determined
that the audit process is not covered by the
PRA because MMS staff asks non-standard
questions to resolve exceptions.
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–0140 (Form MMS–2014), expires 10/31/
2006.
PRODUCE RECORDS—The ORA determines
that the audit process is not covered by the
PRA because MMS staff asks non-standard
questions to resolve exceptions.
330
1
330
330
1
330
100
1
100
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–0140 (Form MMS–2014), expires 10/31/
2006.
100
1
100
E:\FR\FM\22JYN1.SGM
100
1
100
100
1
100
100
1
100
22JYN1
42374
Federal Register / Vol. 70, No. 140 / Friday, July 22, 2005 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Citation 30 CFR
206
Reporting and recordkeeping requirement
206.157(b)(5) .........
206.157(b)(5) You may apply for an exception from the requirement to
compute actual costs under paragraphs (b)(1) through (b)(4) of this
section.
206.157(c)(1)(i) ......
206.157(c) Reporting Requirements. (1) Arm’s-length contracts. (i) You
must use a separate entry on Form MMS–2014 to notify MMS of a
transportation allowance.
206.157(c)(1)(ii) .....
206.157(c)(1)(ii) The MMS may require you to submit arm’s-lenth
transportation contracts, production agreements, operating agreements, and related documents. * * *.
206.157(c)(2)(i) ......
206.157(c)(2) Non-arm’s-length or no contract. (i) You must use a separate entry on Form MMS–2014 to notify MMS of a transportation
allowance.
206.157(c)(2)(iii) ....
206.157(c)(2)(iii) The MMS may require you to submit all data used to
calculate the allowance deduction. * * *.
206.157(e)(2) .........
206.157(e) Adjustments. (2) For lessees transporting production from
onshore Federal leases, the lessee must submit a corrected Form
MMS–2014 to reflect actual costs, together with any payment, in accordance with instructions provided by MMS.
206.157(e)(3) .........
206.157(e)(3) For lessees transporting gas production from leases on
the OCS, if the lessee’s estimated transportation allowance exceeds
the allowance based on actual costs, the lessee must submit a corrected Form MMS–2014 to reflect actual costs, together with its payments, in accordance with instructions provided by MMS. * * *.
206.157(f) Allowable costs in determining transportation allowances.
* * * (1) Firm demand charges paid to pipelines. * * * if you receive a payment or credit from the pipeline for penalty refunds, rate
case refunds, or other reasons, you must reduce the firm demand
charge claimed on the Form MMS–2014 by the amount of that payment. You must modify Form MMS–2014 by the amount received or
credited for the affected reporting period and pay any resulting royalty and late payment interest due; * * *.
206.157(f)(1) ..........
§ 206.158
206.158(c)(3) .........
VerDate jul<14>2003
Hour burden
100
Jkt 205001
PO 00000
Frm 00076
Annual burden
hours
1
100
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–0140 (Form MMS–2014), expires 10/31/
2006.
PRODUCE RECORDS—The ORA determined
that the audit process is not covered by the
PRA because MMS staff asks non-standard
questions to resolve exceptions.
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–0140 (Form MMS–2014), expires 10/31/
2006.
PRODUCE RECORDS—The ORA determined
that the audit process is not covered by the
PRA because MMS staff asks non-standard
questions to resolve exceptions.
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–0140 (Form MMS–2014), expires 10/31/
2006.
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–0140 (Form MMS–2014), expires 10/31/
2006.
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–0140 (Form MMS–2014), expires 10/31/
2006.
Processing allowances—general.
206.158(c)(3) Upon request of a lessee, MMS may approve a processing allowance in excess of the limitation prescribed by paragraph
(c)(2) of this section. * * * An application for exception (using Form
MMS–4393, Request to Exceed Regulatory Allowance Limitation)
shall contain all relevant and supporting documentation for MMS to
make a determination. * * *.
19:28 Jul 21, 2005
Average number of annual
responses
Fmt 4703
Sfmt 4703
E:\FR\FM\22JYN1.SGM
4.25
22JYN1
17
72.25
42375
Federal Register / Vol. 70, No. 140 / Friday, July 22, 2005 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Citation 30 CFR
206
Reporting and recordkeeping requirement
206.158(d)(2)(i) ......
206.158(d)(2)(i) If the lessee incurs extraordinary costs for processing
gas production from a gas production operation, it may apply to
MMS for an allowance for those costs * * *.
206.158(d)(2)(ii) .....
206.158(d)(2)(ii) * * * to retain the authority to deduct the allowance
the lessee must report the deduction to MMS in a form and manner
prescribed by MMS.
§ 206.159
Hour burden
9.5
206.159(a) Arm’s-length processing contracts. (1)(i) * * * The lessee
shall have the burden of demonstrating that its contract is arm’slength. * * *.
206.159(a)(1)(i) ......
206.159(a)(1)(i) * * * The lessee must claim a transportation allowance by reporting it on a separate line entry on the Form MMS–
2014.
206.159(a)(1)(iii) ....
206.159(a)(1)(iii) * * * When MMS determines that the value of the
processing may be unreasonable, MMS will notify the lessee and
give the lessee an opportunity to provide written information justifying the lessee’s processing costs.
206.159(a)(3) .........
206.159(b)(1) .........
206.159(b) Non-arm’s-length or no contract. (1) * * * The lessee must
claim a processing allowance by reflecting it as a separate line entry
on the Form MMS–2014. * * *.
206.159(b)(2)(iv) ....
206.159(b)(2)(iv) * * * When a lessee has elected to use either method for a processing plant, the lessee may not later elect to change
to the alternative without approval of the MMS.
206.159(b)(2)(iv)(A) * * * After an election is made, the lessee may
not change methods without MMS approval. * * *.
19:28 Jul 21, 2005
Jkt 205001
PO 00000
2
19
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–0140 (Form MMS–2014), expires 10/31/
2006.
206.159(a)(3) If an 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, the lessee
shall propose an allocation procedure to MMS. * * * The lessee
shall submit all relevant data to support its proposal. * * *.
VerDate jul<14>2003
Annual burden
hours
Determination of processing allowances.
206.159(a)(1)(i) ......
206.159(b)(2)(iv)(A)
Average number of annual
responses
Frm 00077
Fmt 4703
Sfmt 4703
PRODUCE RECORDS—The ORA determined
that the audit process is not covered by the
PRA because MMS staff asks non-standard
questions to resolve exceptions.
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–0140. (Form MMS–2014), expires 10/31/
2006.
PRODUCE RECORDS—The ORA determined
that the audit process is not covered by the
PRA because MMS staff asks non-standard
questions to resolve exceptions.
330
1
330
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–0140 (Form MMS–2014), expires 10/31/
2006.
E:\FR\FM\22JYN1.SGM
100
22JYN1
1
100
42376
Federal Register / Vol. 70, No. 140 / Friday, July 22, 2005 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Average number of annual
responses
Annual burden
hours
1
100
Citation 30 CFR
206
Reporting and recordkeeping requirement
206.159(b)(4) .........
206.159(c)(1)(i) ......
206.159(b)(4) A lessee may apply to MMS for an exception from the
requirements that it compute actual costs in accordance with paragraphs (b)(1) through (b)(3) of this section. * * *.
206.159(c) Reporting requirements—(1) Arm’s-length contracts. (i) The
lessee must notify MMS of an allowance based on incurred costs by
using a separate line entry on the Form MMS–2014.
206.159(c)(1)(ii) .....
206.159(c)(1)(ii) The MMS may require that a lessee submit arm’slength processing contracts and related documents.* * *.
206.159(c)(2)(i) ......
206.159(c)(2) Non-arm’s-length or no contract. (i) The lessee must notify MMS of an allowance based on incurred costs by using a separate line entry on the Form MMS–2014.
206.159(c)(2)(iii) ....
206.159(c)(2)(iii) Upon request by MMS, the lessee shall submit all
data used to prepare the allowance deduction. * * *.
206.159(e)(2) .........
206.159(e) Adjustments. (2) For lessees processing production from
onshore Federal leases, the lessee must submit a corrected Form
MMS–2014 to reflect actual costs, together with any payment, in accordance with instructions provided by MMS.
206.159(e)(3) .........
206.159(e)(3) For lessees processing gas production from leases on
the OCS, if the lessee’s estimated processing allowance exceeds
the allowance based on actual costs, the lessee must submit a corrected Form MMS–2014 to reflect actual costs, together with its payment, in accordance with instructions provided by MMS. * * *.
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–0140 (Form MMS–2014), expires 10/31/
2006.
PRODUCE RECORDS—The ORA determined
that the audit process is not covered by the
PRA because MMS staff asks non-standard
questions to resolve exceptions.
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–0140 (Form MMS–2014), expires 10/31/
2006.
PRODUCE RECORDS—The ORA determined
that the audit process is not covered by the
PRA because MMS staff asks non-standard
questions to resolve exceptions.
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–0140 (Form MMS–2014), expires 10/31/
2006.
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–0140 (Form MMS–2014), expires 10/31/
2006.
Total ................
..................................................................................................................
........................
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
information to be collected; and (d)
minimize the burden on the
respondents, including the use of
VerDate jul<14>2003
19:28 Jul 21, 2005
Jkt 205001
Hour burden
100
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,
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
PO 00000
Frm 00078
Fmt 4703
Sfmt 4703
109
21,815
information collection; (iii) for reasons
other than to provide information or
keep records for the Government; or (iv)
as part of customary and usual business
or private practices.
We will summarize written responses
to this notice and address them in our
ICR submission for OMB approval,
including appropriate adjustments to
the estimated burden. We will provide
a copy of the ICR to you without charge
upon request. The ICR also will be
posted on our Web site at https://
www.mrm.mms.gov/Laws_R_D/
FRNotices/FRInfColl.htm.
Public Comment Policy: We will post
all comments in response to this notice
on our Web site at https://
www.mrm.mms.gov/Laws_R_D/
FRNotices/FRInfColl.htm. We also will
make copies of the comments available
for public review, including names and
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
E:\FR\FM\22JYN1.SGM
22JYN1
Federal Register / Vol. 70, No. 140 / Friday, July 22, 2005 / Notices
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: July 14, 2005.
Richard Adamski,
Acting Associate Director for Minerals
Revenue Management.
[FR Doc. 05–14528 Filed 7–21–05; 8:45 am]
BILLING CODE 4310–MR–P
DEPARTMENT OF THE INTERIOR
Bureau of Reclamation
Quarterly Status Report of Water
Service, Repayment, and Other WaterRelated Contract Negotiations
Bureau of Reclamation,
Interior.
ACTION: Notice.
AGENCY:
SUMMARY: Notice is hereby given of
contractual actions that have been
proposed to the Bureau of Reclamation
(Reclamation) and are new, modified,
discontinued, or completed since the
last publication of this notice on April
19, 2005. This notice is one of a variety
of means used to inform the public
about proposed contractual actions for
capital recovery and management of
project resources and facilities
consistent with section 9(f) of the
Reclamation Project Act of 1939.
Additional announcements of
individual contract actions may be
published in the Federal Register and in
newspapers of general circulation in the
areas determined by Reclamation to be
affected by the proposed action.
ADDRESSES: The identity of the
approving officer and other information
pertaining to a specific contract
proposal may be obtained by calling or
writing the appropriate regional office at
the address and telephone number given
for each region in the SUPPLEMENTARY
INFORMATION section.
FOR FURTHER INFORMATION CONTACT:
Sandra L. Simons, Manager, Contract
Services Office, Bureau of Reclamation,
P.O. Box 25007, Denver, Colorado
80225–0007; telephone (303) 445–2902.
SUPPLEMENTARY INFORMATION: Consistent
with section 9(f) of the Reclamation
VerDate jul<14>2003
19:28 Jul 21, 2005
Jkt 205001
Project Act of 1939 and the rules and
regulations published in 52 FR 11954,
April 13, 1987 (43 CFR 426.22),
Reclamation will publish notice of
proposed or amendatory contract
actions for any contract for the delivery
of project water for authorized uses in
newspapers of general circulation in the
affected area at least 60 days prior to
contract execution. Announcements
may be in the form of news releases,
legal notices, official letters,
memorandums, or other forms of
written material. Meetings, workshops,
and/or hearings may also be used, as
appropriate, to provide local publicity.
The public participation procedures do
not apply to proposed contracts for the
sale of surplus or interim irrigation
water for a term of 1 year or less. Either
of the contracting parties may invite the
public to observe contract proceedings.
All public participation procedures will
be coordinated with those involved in
complying with the National
Environmental Policy Act. Pursuant to
the ‘‘Final Revised Public Participation
Procedures’’ for water resource-related
contract negotiations, published in 47
FR 7763, February 22, 1982, a tabulation
is provided of all proposed contractual
actions in each of the five Reclamation
regions. When contract negotiations are
completed, and prior to execution, each
proposed contract form must be
approved by the Secretary of the
Interior, or pursuant to delegated or
redelegated authority, the Commissioner
of Reclamation or one of the regional
directors. In some instances,
congressional review and approval of a
report, water rate, or other terms and
conditions of the contract may be
involved.
Public participation in and receipt of
comments on contract proposals will be
facilitated by adherence to the following
procedures:
1. Only persons authorized to act on
behalf of the contracting entities may
negotiate the terms and conditions of a
specific contract proposal.
2. Advance notice of meetings or
hearings will be furnished to those
parties that have made a timely written
request for such notice to the
appropriate regional or project office of
Reclamation.
3. Written correspondence regarding
proposed contracts may be made
available to the general public pursuant
to the terms and procedures of the
Freedom of Information Act, as
amended.
4. Written comments on a proposed
contract or contract action must be
submitted to the appropriate regional
officials at the locations and within the
PO 00000
Frm 00079
Fmt 4703
Sfmt 4703
42377
time limits set forth in the advance
public notices.
5. All written comments received and
testimony presented at any public
hearings will be reviewed and
summarized by the appropriate regional
office for use by the contract approving
authority.
6. Copies of specific proposed
contracts may be obtained from the
appropriate regional director or his
designated public contact as they
become available for review and
comment.
7. In the event modifications are made
in the form of a proposed contract, the
appropriate regional director shall
determine whether republication of the
notice and/or extension of the comment
period is necessary.
Factors considered in making such a
determination shall include, but are not
limited to (i) the significance of the
modification, and (ii) the degree of
public interest which has been
expressed over the course of the
negotiations. At a minimum, the
regional director shall furnish revised
contracts to all parties who requested
the contract in response to the initial
public notice.
The March 10, 2005, notice should be
used as a reference point to identify
changes. The numbering system in this
notice corresponds with the numbering
system in the March 10, 2005, notice.
Definitions of Abbreviations Used in This
Document
BCP—Boulder Canyon Project
Reclamation—Bureau of Reclamation
CAP—Central Arizona Project
CVP—Central Valley Project
CRSP—Colorado River Storage Project
FR—Federal Register
IDD—Irrigation and Drainage District
ID—Irrigation District
M&I—Municipal and Industrial
NMISC—New Mexico Interstate Stream
Commission
O&M—Operation and Maintenance
P–SMBP—Pick-Sloan Missouri Basin
Program
PPR—Present Perfected Right
SOD—Safety of Dams
SRPA—Small Reclamation Projects Act of
1956
WD—Water District
Pacific Northwest Region: Bureau of
Reclamation, 1150 North Curtis Road,
Suite 100, Boise, Idaho 83706–1234,
telephone (208) 378–5344.
The Pacific Northwest Region has no
updates to report for this quarter. Please
refer to the March 10, 2005, publication
of this notice for current contract
actions.
Mid-Pacific Region: Bureau of
Reclamation, 2800 Cottage Way,
Sacramento, California 95825–1898,
telephone (916) 978–5250.
E:\FR\FM\22JYN1.SGM
22JYN1
]]>Agencies
[Federal Register Volume 70, Number 140 (Friday, July 22, 2005)]
[Notices]
[Pages 42366-42377]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-14528]
-----------------------------------------------------------------------
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 1010-0136).
-----------------------------------------------------------------------
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 new title of this information collection request (ICR) is
titled ``30 CFR PART 206--PRODUCT VALUATION, subpart C--Federal Oil and
subpart D--Federal Gas (Form MMS-4393, Request to Exceed Regulatory
Allowance Limitation).'' We changed the title of this information
collection request (ICR) to clarify the regulatory language we are
covering under 30 CFR part 206, and to incorporate relevant portions of
three previous ICRs. The three ICRs, now consolidated into this ICR,
were previously titled:
1010-0095: 30 CFR Part 206--Product Valuation (Request to
Exceed Transportation and Processing Allowance Limitation), subpart B--
Indian Oil, Sec. 206.54(b)(2); subpart C--Federal Oil, Sec.
206.109(c)(2); subpart D--Federal Gas, Sec. Sec. 206.156(c)(3),
206.158(c)(3), and 206.158(d)(2)(i); and subpart E--Indian Gas,
Sec. Sec. 206.177(c)(2) and 206.177(c)(3);
1010-0136: 30 CFR 206--subpart C, Federal Oil Valuation;
and
1010-0157: 30 CFR 206--subpart C, Federal Oil.
Citations concerning Indian oil and gas, referred to in the above
three ICRs, are currently covered in ICR 1010-0103.
DATES: Submit written comments on or before September 20, 2005.
[[Page 42367]]
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 or wish to hand carry your comments,
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 206--PRODUCT VALUATION, subpart C--Federal Oil
and subpart D--Federal Gas (Form MMS-4393, Request to Exceed Regulatory
Allowance Limitation).
OMB Control Number: 1010-0136.
Bureau Form Number: Form MMS-4393.
Abstract: The Department of the Interior is responsible for matters
relevant to mineral resource development on Federal and Indian lands
and the Outer Continental Shelf (OCS). The Secretary of the Interior is
responsible for managing the production of minerals from Federal and
Indian lands and the OCS, collecting royalties from lessees who produce
minerals, and distributing the funds collected in accordance with
applicable laws. The MMS assists the Secretary in performing the
royalty management functions.
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 collected includes data
necessary to ensure that the royalties are paid appropriately.
Section 101(a) of the Federal Oil and Gas Royalty Management Act of
1982 (FOGRMA), as amended, requires that the Secretary ``establish a
comprehensive inspection, collection, and fiscal and production
accounting and auditing system to provide the capability to accurately
determine oil and gas royalties, interest, fines, penalties, fees,
deposits, and other payments owed, and collect and account for such
amounts in a timely manner.'' In order to accomplish these tasks, MMS
developed valuation regulations for Federal leases at 30 CFR part 206--
Product Valuation. Market value is a basic principle underlying royalty
valuation. Consequently, these regulations include methods to capture
the true market value of crude oil and gas produced from Federal
leases, both onshore and offshore. The valuation regulations at 30 CFR
part 206 require companies to collect and/or submit information used to
value their Federal oil and gas.
The MMS uses the information collected to ensure that proper
royalty is paid on oil and gas produced from Federal onshore and
offshore leases. Please refer to the chart for all reporting
requirements and associated burden hours. Regulations developed ensure
the information requested is the minimum necessary to carry out our
mission and places the least possible burden on respondents. The
requested information provides a critical link to establishing the
proper value of oil and gas from Federal lands. If the information is
not collected, it may result in a loss of royalties for both Federal
and state governments.
Transportation and Processing Allowances
Under certain circumstances, lessees are authorized to claim a
transportation allowance for the reasonable actual costs of
transporting the royalty portion of produced oil and gas from the lease
to a processing or sales point not in the immediate lease area.
When gas is processed for the recovery of gas plant products,
lessees may claim a processing allowance. Transportation and processing
allowances are a part of the product valuation process that MMS uses to
determine if the lessee is reporting and paying the proper royalty
amount.
The regulations establish a limit on transportation allowance
deductions for oil and gas at 50 percent of the value of the oil and
gas at the point of sale. The MMS may approve a transportation
allowance in excess of 50 percent upon proper application from the
lessee. Similarly, the regulations establish a limit of 66\2/3\ percent
of the value of each gas plant product as an allowable gas processing
deduction. The MMS may also approve a processing allowance in excess of
66\2/3\ percent upon proper application from the lessee.
Request To Exceed Regulatory Allowance Limitation
The MMS may approve an allowance exceeding the regulatory allowance
limit upon proper application from the lessee. To request permission to
exceed a regulatory allowance limit, lessees must write a letter to MMS
explaining why a higher allowance limit is necessary and provide
supporting documentation. The MMS developed Form MMS-4393, Request to
Exceed Regulatory Allowance Limitation, to accompany the lessee's
letter requesting approval to exceed the regulatory allowance limit.
This form provides MMS with the data necessary to make a decision and
track deductions on royalty reports. Data reported on the form is also
subject to subsequent audit and adjustment.
Proprietary information submitted to MMS under this collection is
protected, and no items of a sensitive nature are collected. A response
is mandatory for valuation requirements and required to obtain the
benefit of allowances.
Applicable Citations
Applicable citations of the laws pertaining to mineral leases
include Public Law 97-451--Jan. 12, 1983 (Federal Oil and Gas Royalty
Management Act of 1982 [FOGRMA]); Public Law 104-185--Aug. 13, 1996
(Federal Oil and Gas Royalty Simplification and Fairness Act of 1996
[RSFA]), as corrected by Public Law 104-200--Sept. 22, 1996); the
Mineral Leasing Act of 1920, Section 36, as amended (30 U.S.C. 192);
Outer Continental Shelf Lands Act of 1953, Section 27, as amended (43
U.S.C. 1353); 30 U.S.C. 189 pertaining to Public Lands; 30 U.S.C. 359
pertaining to Acquired Lands; and 43 U.S.C. 1334 pertaining to OCS
Lands. Public laws pertaining to mineral royalties are located on our
Web site at https://www.mrm.mms.gov/Laws_R_D/PublicLawsAMR.htm.
The applicable regulations include 30 CFR part 206--Product
Valuation. In addition, we also are including applicable citations from
the 2004 Federal Oil Valuation Rule (69 FR 24959, published May 5,
2004) and the 2005 Federal Gas Valuation Rule (70 FR 11869, published
March 10, 2005).
[[Page 42368]]
Frequency of Response: Monthly, and when necessary, annually.
Estimated Number and Description of Respondents: 100 Federal
lessees.
Estimated Annual Reporting and Recordkeeping ``Hour'' Burden:
21,815 hours.
We are revising this ICR to include non-standard reporting
requirements that were overlooked in the previous renewal, and we have
adjusted the burden hours accordingly. The hours also reflect our
recent analysis related to the implementation of the 2004 Federal Oil
Valuation rule and the 2005 Federal Gas Valuation rule. 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 breakdown of the estimated burden hours by CFR section
and paragraph:
Respondents' Estimated Annual Burden Hours
----------------------------------------------------------------------------------------------------------------
Average number
Citation 30 CFR 206 Reporting and recordkeeping Hour burden of annual Annual burden
requirement responses hours
----------------------------------------------------------------------------------------------------------------
Subpart C--Federal Oil
----------------------------------------------------------------------------------------------------------------
Sec. 206.102 How do I calculate royalty value for oil that I or my affiliate sell(s) under an arm's-length
contract?
----------------------------------------------------------------------------------------------------------------
206.102(e)(1).................... 206.102(e) If you value oil PRODUCE RECORDS--The ORA determined that the
under paragraph (a) of this audit process is not covered by the PRA
section: (1) MMS may require because MMS staff asks non-standard questions
you to certify that your or to resolve exceptions.
your affiliate's arm's-
length contract provisions
include all of the
consideration the buyer must
pay, either directly or
indirectly, for the oil.
----------------------------------
Sec. 206.103 How do I value oil that is not sold under an arm's-length contract?
----------------------------------------------------------------------------------------------------------------
206.103.......................... This section explains how to 33.25 5 166.25
value oil that you may not
value under Sec. 206.102
or that elect under Sec.
206.102(d) to value under
this section. First
determine whether paragraph
(a), (b), or (c) of this
section applies to
production from your lease,
or whether you may apply
paragraph (d) or (e) with
MMS approval.
206.103(a)....................... 206.103 (a) Production from
leases in California or
Alaska. Value is the average
of the daily mean ANS spot
prices published in any MMS-
approved publication during
the trading month most
concurrent with the
production month * * *
(1) To calculate the daily
mean spot price * * *.
(2) Use only the days * * *..
(3) You must adjust the value
* * *.
206.103(a)(4).................... 206.103(a)(4) After you 8 2 16
select an MMS-approved
publication, you may not
select a different
publication more often than
once every 2 years, * * *.
206.103(b)(1).................... 206.103(b) Production from 400 2 800
leases in the Rocky Mountain
Region. * * * (1) If you
have an MMS-approved
tendering program, you must
value oil * * *.
206.103(b)(1)(ii)................ 206.103(b)(1)(ii) If you do 400 2 800
not have an MMS-approved
tendering program, you may
elect to value your oil
under either paragraph
(b)(2) or (b)(3) of this
section. * * *.
206.103(b)(4).................... 206.103(b)(4) If you 400 2 800
demonstrate to MMS's
satisfaction that paragraphs
(b)(1) through (b)(3) of
this section result in an
unreasonable value for your
production as a result of
circumstances regarding that
production, the MMS Director
may establish an alternative
valuation method.
206.103(c)(1).................... 206.103(c) Production from 50 10 500
leases not located in
California, Alaska or the
Rocky Mountain Region. (1)
Value is the NYMEX price,
plus the roll, adjusted for
applicable location and
quality differentials and
transportation costs under
Sec. 206.112.
206.103(e)(1).................... 206.103(e) Production 330 2 660
delivered to your refinery
and the NYMEX price or ANS
spot price is an
unreasonable value. (1) * *
* you may apply to the MMS
Director to establish a
value representing the
market at the refinery if: *
* *.
206.103(e)(2).................... 206.103(e)(2) You must .............. .............. ..............
provide adequate
documentation and evidence
demonstrating the market
value at the refinery * * *.
----------------------------------
Sec. 206.105 What records must I keep to support my calculations of value under this subpart?
----------------------------------------------------------------------------------------------------------------
206.105.......................... 206.105 If you determine the There are no burden hours to report in this
value of your oil under this ICR. All burden hours associated with Form MMS-
subpart, you must retain all 2014 are included in OMB Control Number 1010-
data relevant to the 0140 (Form MMS-2014), expires 10/31/2006.
determination of royalty
value. * * *.
----------------------------------
Sec. 206.107 How do I request a value determination?
----------------------------------------------------------------------------------------------------------------
206.107(a)....................... 206.107(a) You may request a 330 8 2,640
330 82,640 value
determination from MMS * * *.
----------------------------------
[[Page 42369]]
Sec. 206.109 When may I take a transportation allowance in determining value?
----------------------------------------------------------------------------------------------------------------
206.109(c)(2).................... 206.109(c) Limits on 4.25 1 4.25
transportation allowances.
(2) You may ask MMS to
approve a transportation
allowance in excess of the
limitation in paragraph
(c)(1) of this section.
* * * 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.
* * *.
----------------------------------
Sec. 206.110 How do I determine a transportation allowance under an arm's-length transportation contract?
----------------------------------------------------------------------------------------------------------------
206.110(a)....................... 206.110(a) * * * You must be PRODUCE RECORDS--The ORA determined that the
able to demonstrate that you audit process is not covered by the PRA
or your affiliate's contract because MMS staff asks non-standard questions
is at arm's length. * * *. to resolve exceptions.
-----------------
206.110(d)(3).................... 216.110(d) If your arm's-
length transportation
contract includes more than
one liquid product, and the
transportation costs
attributable to each product
cannot be determined * * *
(3) You may propose to MMS a 330 2 660
cost allocation method * * *
206.110(e)....................... 206.110(e) If your arm's- 330 1 330
length transportation
contract includes both
gaseous and liquid products,
and the transportation costs
attributable to each product
cannot be determined from
the contract, then you must
propose an allocation
procedure to MMS.
-----------------
206.110(e)(1).................... 206.110(e)(1) * * * If MMS There are no burden hours to report in this
rejects your cost ICR. All burden hours associated with Form MMS-
allocation, you must amend 2014 are included in OMB Control Number 1010-
your Form MMS-2014 * * *. 0140 (Form MMS-2014), expires 10/31/2006.
206.110(e)(2).................... 206.110(e)(2) You must submit There are no burden hours to report in this
your initial proposal, ICR. All burden hours associated with Form MMS-
including all available 2014 are included in OMB Control Number 1010-
data, within 3 months after 0140, (Form MMS-2014), expires 10/31/2006.
first claiming the allocated
deductions on Form MMS-2014.
-----------------
206.110(g)(2).................... 206.110(g) If your arm's- 330 1 330
length sales includes a
provision reducing the
contract price by a
transportation factor, * * *
(2) You must obtain MMS
approval before claiming a
transportation factor in
excess of 50 percent of the
base price of the product.
----------------------------------
Sec. 206.111 How do I determine a transportation allowance if I do not have an arm's-length transportation
contract or arm's-length tariff?
----------------------------------------------------------------------------------------------------------------
206.111(g)....................... 206.111(g) To compute 330 1 330
depreciation, you may elect
to use either * * * After
you make an election, you
may not change methods
without MMS approval. * * *.
206.111(k)(2).................... 206.111(k)(2) You may propose 330 1 330
to MMS a cost allocation
method on the basis of the
values * * *.
206.111(l)(1).................... 206.111(l)(1) Where you 330 1 330
transport both gaseous and
liquid products through the
same transportation system,
you must propose a cost
allocation procedure to MMS.
-----------------
206.111(l)(2).................... 206.111(l)(2) * * * If MMS There are no burden hours to report in this
rejects your cost ICR. All burden hours associated with your
allocation, you must amend Form MMS-2104 are included in OMB Control
your Form MMS-2104 for the Number 1010-0140 (Form MMS-2014), expires 10/
month/months that you used 31/2006.
the rejected method and pay
any additional royalty and
interest due.
206.111(l)(3).................... 206.111(l)(3) You must submit Burden covered under Sec. 206.111(l)(1).
your initial proposal,
including all available
data, within 3 months after
first claiming the allocated
deductions on Form MMS-2014.
----------------------------------
Sec. 206.112 What adjustments and transportation allowances apply when I value oil production from my lease
using NYMEX prices or ANS spot prices?
----------------------------------------------------------------------------------------------------------------
206.112(a)(1)(ii)................ 206.112(a)(1)(ii) * * * under 330 1 330
an exchange agreement that
is not at arm's length, you
must obtain approval from
MMS for a location and
quality differential. * * *..
[[Page 42370]]
206.112(a)(1)(ii)................ 206.112(a)(1)(ii) * * * If 330 2 660
MMS prescribes a different
differential, you must apply
* * *. You must pay any
additional royalties owed *
* * plus the late payment
interest from the original
royalty due date, or you may
report a credit * * *.
206.112(a)(3).................... 206.112(a)(3) If you 330 4 1,320
transport or exchange at
arm's length (or both
transport and exchange) at
least 20 percent, but not
all, of your oil produced
from the lease to a market
center, determine the
adjustment between the lease
and the market center for
the oil that is not
transported or exchanged (or
both transported and
exchanged) to or through a
market center as follows: *
* *.
206.112(a)(4).................... 206.112(a)(4) If you 330 4 1,320
transport or exchange (or
both transport and exchange)
less than 20 percent of your
crude oil produced from the
lease between the lease and
a market center, you must
propose to MMS an adjustment
between the lease and the
market center for the
portion of the oil that you
do not transport or exchange
(or both transport and
exchange) to a market
center. * * *.
206.112(a)(4).................... 206.112(a)(4) If MMS
prescribes a different
adjustment * * *. You must
pay any additional royalties
owed * * * plus the late
payment interest from the
original royalty due date,
or you may report a credit *
* *.
206.112(b)(3).................... 206.112(b)(3) * * * you may 330 4 1,320
propose an alternative
differential to MMS. * * *
If MMS prescribes a
different differential * *
*. You must pay any
additional royalties owed *
* * plus the late payment
interest from the original
royalty due date, or you may
report a credit * * *.
206.112(c)(2).................... 206.112(c)(2) * * * If 330 2 660
quality bank adjustments do
not incorporate or provide
for adjustments for sulfur
content, you may make sulfur
adjustments, based on the
quality of the
representative crude oil at
the market center, of 5.0
cents per one-tenth percent
difference in sulfur
content, unless MMS approves
a higher adjustment.
----------------------------------
[[Page 42371]]
Sec. 206.114 What are my reporting requirements under an arm's-length transportation contract?
----------------------------------------------------------------------------------------------------------------
206.114.......................... 206.114 You or your affiliate There are no burden hours to report in this
must use a entry on Form MMS ICR. All burden hours associated with Form MMS-
2014 to notify MMS of an 2014 are included in OMB Control Number 1010-
allowance based on 0140 (Form MMS-2014), expires 10/31/2006.
transportation costs you or
your affiliate incur.
206.114.......................... 206.114 MMS may require you PRODUCE RECORDS--The ORA determined that the
or your affiliate to submit audit process is not covered by the PRA
arm's-length transportation because MMS staff asks non-standard questions
contracts, production to resolve exceptions.
agreements, operating
agreements, and related
documents.
----------------------------------
Sec. 206.115 What are my reporting requirements under a non-arm's-length transportation arrangement?
----------------------------------------------------------------------------------------------------------------
206.115(a)....................... 206.115(a) You or your There are no burden hours to report in this
affiliate must use a ICR. All burden hours associated with Form MMS-
separate entry on Form MMS- 2014 are included in OMB Control Number 1010-
2014 to notify MMS of an 0140 (Form MMS-2014), expires 10/31/2006.
allowance based on
transportation costs you or
your affiliate incur.
206.115(c)....................... 206.115(c) MMS may require PRODUCE RECORDS--The ORA determined that the
you or your affiliate to audit process is not covered by the PRA
submit all data used to because MMS staff asks non-standard questions
calculate the allowance to resolve exceptions.
deduction. * * *.
----------------------------------
Subpart D--Federal Gas
----------------------------------------------------------------------------------------------------------------
Sec. 206.152 Valuation standards--unprocessed gas.
----------------------------------------------------------------------------------------------------------------
206.152(b)(1)(i)................. 206.152(b)(1)(i) * * * The PRODUCE RECORDS--The ORA determined that the
lessee shall have the burden audit process is not covered by the PRA
of demonstrating that its because MMS staff asks non-standard questions
contract is arm's-length. * to resolve exceptions.
* *.
206.152(b)(1)(iii)............... 206.152(b)(1)(iii) * * * When PRODUCE RECORDS--The ORA determined that the
MMS determines that the audit process is not covered by the PRA
value may be unreasonable, because MMS staff asks non-standard questions
MMS will notify the lessee to resolve exceptions.
and give the lessee an
opportunity to provide
written information
justifying the lessee's
value.
-----------------
206.152(b)(2).................... 206.152(b)(2) * * * The 330 1 330
lessee must request a value
determination in accordance
with paragraph (g) of this
section for gas sold
pursuant to a warranty
contract; * * *.
-----------------
206.152(b)(3).................... 206.152(b)(3) MMS may require PRODUCE RECORDS--The ORA determined that the
a lessee to certify that its audit process is not covered by the PRA
arm's-length contract because MMS staff asks non-standard questions
provisions include all of to resolve exceptions.
the consideration to be paid
by the buyer, either
directly or indirectly, for
the gas.
206.152(e)(1).................... 206.152(e)(1) Where the value There are no burden hours to report in this
is determined pursuant to ICR. All burden hours associated with Form MMS-
paragraph (c) of this 2014 are included in OMB Control Number 1010-
section, the lessee shall 0140 (Form MMS-2014), expires 10/31/2006.
retain all data relevant to
the determination of royalty
value. * * *.
206.152(e)(2).................... 206.152(e)(2) Any Federal PRODUCE RECORDS--The ORA determined that the
lessee will make available audit process is not covered by the PRA
upon request to the because MMS staff asks non-standard questions
authorized MMS or State to resolve exceptions.
representatives, to the
Office of the Inspector
General of the department of
the Interior, or other
person 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.
-----------------
206.152(e)(3).................... 206.152(e)(3) A lessee shall 330 2 660
notify MMS if it has
determined value pursuant to
paragraph (c)(2) or (c)(3)
of this section. * * *.
206.152(g)....................... 206.152(g) The lessee may 330 6 1,980
request a value
determination from MMS. * *
* the lessee shall submit
all available data relevant
to its proposal. * * *.
----------------------------------
[[Page 42372]]
Sec. 206.153 Valuation standards--processed gas.
----------------------------------------------------------------------------------------------------------------
206.153(b)(1)(i)................. 206.153(b)(1)(i) * * * The PRODUCE RECORDS--The ORA determined that the
lessee shall have the burden audit process is not covered by the PRA
of demonstrating that its because MMS staff asks non-standard questions
contract is arm's-length. * to resolve exceptions.
* *.
206.153(b)(1)(iii)............... 206.153(b)(1)(iii) * * * When PRODUCE RECORDS--The ORA determined that the
MMS determines that the audit process is not covered by the PRA
value may be unreasonable, because MMS staff asks non-standard questions
MMS will notify the lessee to resolve exceptions.
and give the lessee an
opportunity to provide
written information
justifying the lessee's
value.
-----------------
206.153(b)(2).................... 206.153(b)(2) * * * The 330 1 330
lessee must request a value
determination in accordance
with paragraph (g) of this
section for gas sold
pursuant to a warranty
contract; * * *.
-----------------
206.153(b)(3).................... 206.153(b)(3) MMS may require PRODUCE RECORDS--The ORA determined that the
a lessee to certify that its audit process is not covered by the PRA
arm's-length contract because MMS staff asks non-standard questions
provisions include all of to resolve exceptions.
the consideration to be paid
by the buyer, either
directly or indirectly, for
the residue gas or gas plant
product.
206.153(e)(1).................... 206.153(e)(1) Where the value There are no burden hours to report in this
is determined pursuant to ICR. All burden hours associated with Form MMS-
paragraph (c) of this 2014 are included in OMB Control Number 1010-
section, the lessee shall 0140 (Form MMS-2014), expires 10/31/2006.
retain all data relevant to
the determination of royalty
value. * * *.
206.153(e)(2).................... 206.153(e)(2) Any Federal PRODUCE RECORDS--The ORA determined that the
lessee will make available audit process is not covered by the PRA
upon request to the because MMS staff asks non-standard questions
authorized MMS or State to resolve exceptions.
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
residue gas and gas plant
products sold, purchased or
otherwise obtained by the
lessee from the same
processing plant or from
nearby processing plants.
-----------------
206.153(e)(3).................... 206.153(e)(2) A lessee shall 330 2 660
notify MMS if it has
determined any value
pursuant to paragraph (c)(2)
or (c)(3) of this section. *
* *.
206.153(g)....................... 206.153(g) The lessee may 330 4 1,320
request a value
determination from MMS * * *
the lessee shall submit all
available data relevant to
its proposal. * * *.
----------------------------------
Sec. 206.154 Determination of quantities and qualities for computing royalties.
----------------------------------------------------------------------------------------------------------------
206.154(c)(4).................... 206.154(c)(4) * * * A lessee 330 1 330
may request MMS approval of
other methods for
determining the quantity of
residue gas and gas plant
products allocable to each
lease. * * *.
----------------------------------
Sec. 206.156 Transportation allowances--general.
----------------------------------------------------------------------------------------------------------------
206.156(c)(3).................... 206.156(c)(3) Upon request of 4.25 4 17
a lessee, MMS may approve a
transportation allowance
deduction in excess of the
limitation prescribed by
paragraphs (c)(1) and (c)(2)
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. * * *.
----------------------------------
[[Page 42373]]
Sec. 206.157 Determination of transportation allowances.
----------------------------------------------------------------------------------------------------------------
206.157(a)(1)(i)................. 206.157(a) Arm's-length PRODUCE RECORDS--The ORA determined that the
transportation contracts. audit process is not covered by the PRA
(1)(i) * * * The lessee because MMS staff asks non-standard questions
shall have the burden of to resolve exceptions.
demonstrating that its
contract is arm's-length. *
* *.
206.157(a)(1)(i)................. 206.157(a)(1)(i) * * * The There are no burden hours to report in this
lessee must claim a ICR. All burden hours associated with Form MMS-
transportation allowance by 2014 are included in OMB Control Number 1010-
reporting it on a separate 0140 (Form MMS-2014), expires 10/31/2006.
line entry on the Form MMS-
2014.
206.157(a)(1)(iii)............... 206.157(a)(1)(iii) * * * When PRODUCE RECORDS--The ORA determines that the
MMS determines that the audit process is not covered by the PRA
value of the transportation because MMS staff asks non-standard questions
may be unreasonable, MMS to resolve exceptions.
will notify the lessee and
give the lessee an
opportunity to provide
written information
justifying the lessee's
transportation costs.
-----------------
206.157(a)(2)(ii)................ 206.157(a)(2)(ii) * * * the 330 1 330
lessee may propose to MMS a
cost allocation method on
the basis of the values of
the products transported. *
* *.
206.157(a)(3).................... 206.157(a)(3) If an arm's- 330 1 330
length transportation
contract includes both
gaseous and liquid products
and the transportation costs
attributable to each cannot
be determined from the
contract, the lessee shall
propose an allocation
procedure to MMS. *** The
lessee shall submit all
relevant data to support its
proposal. * * *.
206.157(a)(5).................... 206.157(a)(5) * * * The 100 1 100
transportation factor may
not exceed 50 percent of the
base price of the product
without MMS approval.
-----------------
206.157(b)(1).................... 206.157(b) Non-arm's-length There are no burden hours to report in this
or no contract. (1) The ICR. All burden hours associated with Form MMS-
lessee must claim a 2014 are included in OMB Control Number 1010-
transportation allowance by 0140 (Form MMS-2014), expires 10/31/2006.
reporting it on a separate
line entry on the Form MMS-
2014. * * *.
206.157(b)(2)(iv)................ 206.157(b)(2)(iv) After a 100 1 100
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.
206.157(b)(2)(iv)(A)............. After an election is made,
the lessee may not change
methods without MMS
approval. * * *.
206.157(b)(3)(i)................. 206.157(b)(3)(i) * * * Except 100 1 100
as provided in this
paragraph, the lessee may
not take an allowance for
transporting a product which
is not royalty bearing
without MMS approval.
206.157(b)(3)(ii)................ 206.157(b)(3)(ii) * * * the 100 1 100
lessee may propose to the
MMS a cost allocation method
on the basis of the values
of the products transported.
206.157(b)(4).................... 206.157(b)(4) Where both 100 1 100
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 relevant data to
support its proposal. * * *.
[[Page 42374]]
206.157(b)(5).................... 206.157(b)(5) You may apply 100 1 100
for an exception from the
requirement to compute
actual costs under
paragraphs (b)(1) through
(b)(4) of this section.
-----------------
206.157(c)(1)(i)................. 206.157(c) Reporting There are no burden hours to report in this
Requirements. (1) Arm's- ICR. All burden hours associated with Form MMS-
length contracts. (i) You 2014 are included in OMB Control Number 1010-
must use a separate entry on 0140 (Form MMS-2014), expires 10/31/2006.
Form MMS-2014 to notify MMS
of a transportation
allowance.
206.157(c)(1)(ii)................ 206.157(c)(1)(ii) The MMS may PRODUCE RECORDS--The ORA determined that the
require you to submit arm's- audit process is not covered by the PRA
lenth transportation because MMS staff asks non-standard questions
contracts, production to resolve exceptions.
agreements, operating
agreements, and related
documents. * * *.
206.157(c)(2)(i)................. 206.157(c)(2) Non-arm's- There are no burden hours to report in this
length or no contract. (i) ICR. All burden hours associated with Form MMS-
You must use a separate 2014 are included in OMB Control Number 1010-
entry on Form MMS-2014 to 0140 (Form MMS-2014), expires 10/31/2006.
notify MMS of a
transportation allowance.
206.157(c)(2)(iii)............... 206.157(c)(2)(iii) The MMS PRODUCE RECORDS--The ORA determined that the
may require you to submit audit process is not covered by the PRA
all data used to calculate because MMS staff asks non-standard questions
the allowance deduction. * * to resolve exceptions.
*.
206.157(e)(2).................... 206.157(e) Adjustments. (2) There are no burden hours to report in this
For lessees transporting ICR. All burden hours associated with Form MMS-
production from onshore 2014 are included in OMB Control Number 1010-
Federal leases, the lessee 0140 (Form MMS-2014), expires 10/31/2006.
must submit a corrected Form
MMS-2014 to reflect actual
costs, together with any
payment, in accordance with
instructions provided by MMS.
206.157(e)(3).................... 206.157(e)(3) For lessees There are no burden hours to report in this
transporting gas production ICR. All burden hours associated with Form MMS-
from leases on the OCS, if 2014 are included in OMB Control Number 1010-
the lessee's estimated 0140 (Form MMS-2014), expires 10/31/2006.
transportation allowance
exceeds the allowance based
on actual costs, the lessee
must submit a corrected Form
MMS-2014 to reflect actual
costs, together with its
payments, in accordance with
instructions provided by
MMS. * * *.
206.157(f)(1).................... 206.157(f) Allowable costs in There are no burden hours to report in this
determining transportation ICR. All burden hours associated with Form MMS-
allowances. * * * (1) Firm 2014 are included in OMB Control Number 1010-
demand charges paid to 0140 (Form MMS-2014), expires 10/31/2006.
pipelines. * * * if you
receive a payment or credit
from the pipeline for
penalty refunds, rate case
refunds, or other reasons,
you must reduce the firm
demand charge claimed on the
Form MMS-2014 by the amount
of that payment. You must
modify Form MMS-2014 by the
amount received or credited
for the affected reporting
period and pay any resulting
royalty and late payment
interest due; * * *.
----------------------------------
Sec. 206.158 Processing allowances--general.
----------------------------------------------------------------------------------------------------------------
206.158(c)(3).................... 206.158(c)(3) Upon request of 4.25 17 72.25
a lessee, MMS may approve a
processing allowance in
excess of the limitation
prescribed by paragraph
(c)(2) of this section. * *
* An application for
exception (using Form MMS-
4393, Request to Exceed
Regulatory Allowance
Limitation) shall contain
all relevant and supporting
documentation for MMS to
make a determination. * * *.
[[Page 42375]]
206.158(d)(2)(i)................. 206.158(d)(2)(i) If the 9.5 2 19
lessee incurs extraordinary
costs for processing gas
production from a gas
production operation, it may
apply to MMS for an
allowance for those costs *
* *.
-----------------
206.158(d)(2)(ii)................ 206.158(d)(2)(ii) * * * to There are no burden hours to report in this
retain the authority to ICR. All burden hours associated with Form MMS-
deduct the allowance the 2014 are included in OMB Control Number 1010-
lessee must report the 0140 (Form MMS-2014), expires 10/31/2006.
deduction to MMS in a form
and manner prescribed by MMS.
----------------------------------
Sec. 206.159 Determination of processing allowances.
----------------------------------------------------------------------------------------------------------------
206.159(a)(1)(i)................. 206.159(a) Arm's-length PRODUCE RECORDS--The ORA determined that the
processing contracts. (1)(i) audit process is not covered by the PRA
* * * The lessee shall have because MMS staff asks non-standard questions
the burden of demonstrating to resolve exceptions.
that its contract is arm's-
length. * * *.
206.159(a)(1)(i)................. 206.159(a)(1)(i) * * * The There are no burden hours to report in this
lessee must claim a ICR. All burden hours associated with Form MMS-
transportation allowance by 2014 are included in OMB Control Number 1010-
reporting it on a separate 0140. (Form MMS-2014), expires 10/31/2006.
line entry on the Form MMS-
2014.
206.159(a)(1)(iii)............... 206.159(a)(1)(iii) * * * When PRODUCE RECORDS--The ORA determined that the
MMS determines that the audit process is not covered by the PRA
value of the processing may because MMS staff asks non-standard questions
be unreasonable, MMS will to resolve exceptions.
