Agency Information Collection Activities: Submitted for Office of Management and Budget (OMB) Review; Comment Request, 3534-3540 [E6-731]
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3534
Federal Register / Vol. 71, No. 14 / Monday, January 23, 2006 / Notices
BURDEN BREAKDOWN
Annual
number of
responses
Hour
burden
Reporting requirement
Annual
burden
hours
12
12
150
90
1,800
1,080
120
200
24,000
Total Burden .....................................................................................................................................
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Prepare and submit to MMS (1) list of impacted OCS structures, (2) timetable for inspections, and
(3) inspection plan for each listed platform describing work to determine condition of structure. ......
Submit subsequent updates to list and inspection plans ........................................................................
Submit report to MMS describing detected damage that may adversely affect structural integrity, including assessment of ability to withstand anticipated environmental storm conditions, and any remediation plans ....................................................................................................................................
....................
440
26,880
Estimated Reporting and
Recordkeeping ‘‘Non-Hour Cost’’
Burden: We have identified no
paperwork ‘‘non-hour cost’’ burdens
associated with the collection of
information.
Public Disclosure Statement: The PRA
(44 U.S.C. 3501, et seq.) provides that an
agency may not conduct or sponsor a
collection of information unless it
displays a currently valid OMB control
number. Until OMB approves a
collection of information, you are not
obligated to respond.
Comments: Section 3506(c)(2)(A) of
the PRA (44 U.S.C. 3501, et seq.)
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
automated collection techniques or
other forms of information technology.
To comply with the public
consultation process, on October 12,
2005, we published a Federal Register
notice (70 FR 59368) announcing that
we would submit this ICR to OMB for
approval. The notice provided the
required 60-day comment period. In
addition, § 250.199 provides the OMB
control number for the information
collection requirements imposed by the
30 CFR 250 regulations. The regulation
also informs the public that they may
comment at any time on the collections
of information and provides the address
to which they should send comments.
We have received no comments in
response to these efforts.
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If you wish to comment in response
to this notice, you may send your
comments to the offices listed under the
ADDRESSES section of this notice. OMB
has up to 60 days to approve or
disapprove the information collection
but may respond after 30 days.
Therefore, to ensure maximum
consideration, OMB should receive
public comments by February 22, 2006.
Public Comment Procedures: MMS’s
practice is to make comments, including
names and addresses of respondents,
available for public review. If you wish
your name and/or address to be
withheld, you must state this
prominently at the beginning of your
comment. MMS will honor the request
to the extent allowable by the law;
however, anonymous comments will
not be considered. All submissions from
organizations or businesses, and from
individuals identifying themselves as
representatives or officials of
organizations or businesses, will be
made available for public inspection in
their entirety.
MMS Information Collection
Clearance Officer: Arlene Bajusz (202)
208–7744.
Dated: December 29, 2005.
E.P. Danenberger,
Chief, Office of Offshore Regulatory Programs.
[FR Doc. E6–691 Filed 1–20–06; 8:45 am]
BILLING CODE 4310–MR–P
DEPARTMENT OF THE INTERIOR
Minerals Management Service
Agency Information Collection
Activities: Submitted for Office of
Management and Budget (OMB)
Review; Comment Request
Minerals Management Service
(MMS), Interior.
AGENCY:
Notice of a revision of a
currently approved information
collection (OMB Control Number 1010–
0119).
ACTION:
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SUMMARY: To comply with the
Paperwork Reduction Act of 1995
(PRA), we are notifying the public that
we have submitted to OMB an
information collection request (ICR) to
renew approval of the paperwork
requirements in the regulations under
30 CFR part 208—Sale of Federal
Royalty Oil.
This notice also provides the public a
second opportunity to comment on the
paperwork burden of these regulatory
requirements. The title of this
information collection request (ICR) is
‘‘30 CFR Part 208—Sale of Federal
Royalty Oil; Sale of Federal Royalty Gas;
and Commercial Contracts (Forms
MMS–4070, Application for the
Purchase of Royalty Oil; MMS–4071,
Letter of Credit; and MMS–4072,
Royalty-in-Kind Contract Surety
Bond).’’ We changed the title of this ICR
to clarify the regulatory language we are
covering under 30 CFR part 208 and to
include relevant portions of the RoyaltyIn-Kind (RIK) 5-Year Business Plan. The
title change also reflects OMB’s
approval of consolidation of five RIKrelated ICRs. Those ICRs were titled:
• 1010–0042: 30 CFR part 208—Sale
of Federal Royalty Oil; Royalty-in-Kind
(RIK) Program (Form MMS–4070,
Application for the Purchase of Royalty
Oil);
• 1010–0119: 30 CFR part 208—Sale
of Federal Royalty Oil, Royalty Oil Sales
to Eligible Refiners (30 CFR 208.4(a) and
(d));
• 1010–0126: Royalty-In-Kind (RIK)
Pilot Program Directed Communications
by Operators of Federal Oil and Gas
Leases;
• 1010–0129: Royalty-in-Kind Pilot
Program—Offers, Financial Statements,
and Surety Instruments for Sales of
Royalty Oil and Gas; and
• 1010–0135: 30 CFR 208.11(a), (b),
(d), and (e)—Surety Requirements
(Forms MMS–4071 and MMS–4072).
In the five ICRs, much of the general
information was repeated and cross
referenced. This consolidated ICR 1010–
0119 eliminates that duplication of
effort and redundancy of data and
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Federal Register / Vol. 71, No. 14 / Monday, January 23, 2006 / Notices
provides for review of all RIK
information collection requirements on
a program-wide basis.
DATES: Submit written comments on or
before February 22, 2006.
ADDRESSES: Submit written comments
by either FAX (202) 395–6566 or e-mail
(OIRA_Docket@omb.eop.gov) directly to
the Office of Information and Regulatory
Affairs, OMB, Attention: Desk Officer
for the Department of the Interior (OMB
Control Number 1010–0119). Mail your
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, West 6th
Avenue and Kipling Blvd., 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, e-mail
Sharron.Gebhardt@mms.gov. You may
also contact Sharron Gebhardt to obtain
a copy at no cost of the forms and
regulations that require the subject
collection of information.
SUPPLEMENTARY INFORMATION: Title: 30
CFR part 208—Sale of Federal Royalty
Oil; Sale of Federal Royalty Gas; and
Commercial Contracts (Forms MMS–
4070, Application for the Purchase of
Royalty Oil; MMS–4071, Letter of
Credit; and MMS–4072, Royalty-in-Kind
Contract Surety Bond).
OMB Control Number: 1010–0119.
Bureau Form Number: Forms MMS–
4070, MMS–4071, and MMS–4072.
Abstract: The Secretary of the U.S.
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, under the Mineral
Leasing Act of 1920, Section 36, as
amended (30 U.S.C. 192) (Mineral
Leasing Act); and the Outer Continental
Shelf Lands Act of 1953, Section 27, as
amended (43 U.S.C. 1353) (OCS Lands
Act), is responsible for managing the
production of minerals from Federal
and Indian lands and the OCS,
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collecting royalties from lessees who
produce minerals, and distributing
funds collected in accordance with
applicable laws. The MMS performs the
royalty management functions for the
Secretary.
The MMS is responsible for ensuring
that all revenues from Federal and
Indian mineral leases are accurately
collected, accounted for, and disbursed
to recipients. Historically, most of these
revenues have been received in the form
of cash royalty payments, i.e., royalty
in-value payments. These payments are
paid by mineral development interests.
In recent years, MMS conducted pilots
to test the approach of taking royalties
in kind.
The Federal Government’s MMS RIK
pilot program became a permanent
operational program after several years
of pilot project testing. The MMS RIK
operational program takes payment from
mineral lessees ‘‘in kind’’ in the form of
produced crude oil and natural gas
volumes, rather than in cash payments.
The lessee transfers the title of the crude
oil or natural gas to the Federal
Government, and MMS sells the
received product (crude oil or natural
gas) to agents in the marketplace and
disburses revenues as prescribed by law.
The MMS sells some product
competitively in the unrestricted
marketplace, and other RIK product is
sold competitively to eligible refiners (a
small and independent refiner, as
defined in 30 CFR 208.2). Additionally,
when directed, MMS delivers the RIK
product to other Federal agencies, as has
been the case during the fill of the
Strategic Petroleum Reserve (SPR),
directed by the President in 2001, with
scheduled completion in 2005.
Specifically, within the MMS RIK
operational program, MMS conducts the
eligible refiner program and the SPR
program, in addition to the Wyoming
crude oil, offshore unrestricted crude
oil, and offshore natural gas programs.
Recently, MMS consolidated and
revised existing procedures and policies
guiding the sale of onshore and offshore
royalty crude oil and natural gas (1) to
establish uniformity within the
regulatory and operational framework;
(2) to provide industry with a more
efficient and responsive MMS RIK
operational program; and (3) to improve
the Federal Government’s
administration of this program. For
example, several of the reporting
requirements for eligible refiners under
30 CFR part 208 have been combined
with reporting requirements for other
RIK purchasers. However, due to the
unique nature of the sale of crude oil to
eligible refiners, certain requirements
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pertain only to that eligible refiner
program.
Applicable citations of the laws
pertaining to the taking and selling of
the Federal Government’s royalty share
of mineral leases in the form of
production (royalties ‘‘in kind’’) include
30 CFR part 208; Mineral Leasing Act;
OCS Lands Act; 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.
These citations, as well as specific
language in the actual lease documents,
authorize the Secretary to sell royalty oil
and gas accruing to the United States.
The standard lease terms state that
royalties are due in amount or in value.
In addition, these citations authorize the
Secretary to prescribe proper rules and
regulations and to do any and all things
necessary to accomplish the purpose of
applicable laws. The MMS directs
communications between MMS
operators and RIK purchasers through
commercial contracts, situation-specific
‘‘Dear Operator’’ letters, or in the case of
eligible refiners, through regulations at
30 CFR part 208. Proprietary
information submitted to MMS under
this collection is protected, and no
items of a sensitive nature are collected.
Eligible Refiner Information—This
information was previously collected
under ICRs 1010–0042 and 1010–0119.
Determination of Need—Federal
Register Notice
As stated earlier, royalties may be
paid ‘‘in value’’ or ‘‘in kind.’’ The
regulations at 30 CFR part 208, Sale of
Federal Royalty Oil, govern the Federal
oil RIK program for eligible refiners.
Under 30 CFR 208.4(a) and (b), MMS,
on behalf of the Secretary, performs a
Determination of Need prior to issuing
a Notice of Availability of Royalty Oil
for sale. The MMS uses the feedback
from the Determination of Need
respondents (eligible refiners or other
interested parties, such as lessees or
operators) to assess current marketplace
conditions, i.e., whether small and
independent eligible refiners have
access to ongoing supplies of crude oil
at equitable prices. When MMS
determines that eligible refiners do not
have access to adequate supplies of oil,
MMS may dispose of any royalty oil
taken in kind, by conducting a sale of
such oil, through an allocation process,
to eligible refiners. The most recent
Determination of Need assessment,
requesting specific information from
eligible refiners, was published in the
Federal Register on August 11, 2003 (68
FR 47605).
In order to qualify for RIK sales,
eligible refiners must prequalify by
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signing the MMS base contract, ‘‘RIK
Crude Oil General Terms and
Conditions,’’ and providing detailed
financial information. Upon
prequalification, MMS will issue an
amount of unsecured credit, based on
the creditability of the offeror.
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Notice of Availability of Royalty Oil—
Federal Register Notice
Under § 208.5, if MMS determines
from the Determination of Need that
eligible refiners do not have access to
adequate supplies of crude oil, MMS
would then publish a Notice of
Availability of Royalty Oil for sale, in
the Federal Register and other printed
media, when appropriate. This notice
advises industry of a forthcoming RIK
crude oil sale for eligible refiners and
includes administrative details
concerning the application, the
allocation process, and the contract
award process for the royalty oil. It also
details specific information about the
crude oil types offered for sale and the
location of delivery points. The most
recent Notice of Availability of Royalty
Oil was published in the Federal
Register on March 12, 2004 (69 FR
11881).
Under § 208.10(e), eligible refiners
who purchase royalty oil cannot
transfer, assign, or sell their rights or
interest in a royalty oil contract without
written approval of the Director, MMS.
This provision is intended to ensure
that only qualified eligible refiners
benefit from these sales of royalty oil.
Form MMS–4070—Application for the
Purchase of Royalty Oil
Under § 208.6, eligible refiners
interested in purchasing royalty oil
must submit Form MMS–4070 in
accordance with instructions in the
Notice of Availability of Royalty Oil and
instructions issued by MMS for
completion of the form. On Form MMS–
4070, MMS requests specific
information, such as: The location of
their refinery; desirability of offshore
versus onshore crude; type of crude
desired (e.g., Wyoming Sweet); ability to
obtain long-term supply of desired
crude (with supporting documentation,
such as ‘‘denial’’ by major supplier);
ability to obtain desired crude at fair
market prices (with supporting
documentation that desired oil was not
available or equitably priced for the area
or region in question); percentage of
total refining capacity attributable to
Federal oil versus other sources; etc.
The Federal Government’s
administration of the eligible refiner
program is aided significantly by the
collection of information requested on
Form MMS–4070. The MMS uses the
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information collected to determine the
eligibility of refiners wanting to enter
into contracts to purchase royalty oil
and to provide a basis for the allocation
of available royalty oil among eligible
refiners, when necessary; that is, they
meet the small refiner eligibility
requirements issued by the Small
Business Administration, as explained
under § 208.6.
Directed Communications by
Operators of Federal Oil and Gas
Leases—This information was
previously collected under ICR 1010–
0126.
Collection of RIK crude oil and
natural gas for eligible refiners and other
RIK purchasers requires communication
between MMS and the operators of a
lease to ensure accurate and timely
delivery of MMS’s royalty share of
production volumes. In order to take
MMS’s crude oil or natural gas in kind,
MMS, as the responsible steward of oil
and gas royalties, must direct operators
of affected MMS leases to provide three
types of communication:
(1) Report information about the
projected volumes and qualities of RIK
crude oil or natural gas production the
operator expects to make available for
delivery in the following month, and
report corrections to those projected
volumes and qualities for previous
months, submitting monthly no later
than 10 days before the first day of
following month;
(2) Report cost/invoicing information
about transportation charges incurred
for delivering the RIK product to the
delivery point, when applicable; and
(3) Report month-end summary
information (lease imbalance statement)
regarding total RIK crude oil or natural
gas volumes and qualities needed to
carry over to the next month to resolve
aggregated imbalances that have
occurred in prior months of RIK
deliveries.
In marketing the product, information
received through MMS’s directed
communication is essential for MMS to
ensure the delivery and acceptance of
verifiable quantities and qualities of
crude oil and natural gas. In cases when
MMS is directed to deliver the product
to other Federal agencies, these types of
directed communication are necessary
so that exchange contractors can arrange
to timely accept accurate amounts and
qualities of royalty oil that will be
delivered by MMS’s exchange partner
and for MMS to verify timely fulfillment
of operators’ and lessees’ royalty
obligations to the Federal Government.
The types of directed communication
and the supporting data, which MMS
requires operators to use in setting up
the monthly delivery of RIK to the
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purchaser, are standard business
practices in the oil and gas industry.
Sample ‘‘Dear Operator’’ letters are
posted on RIK’s Web site at https://
www.mrm.mms.gov/rikweb/
RIKOperLts.htm.
Third-Party Agreements—This
information was previously collected
under ICR 1010–0042.
Title 30 CFR 208.9 requires that
eligible refiners who purchase royalty
oil must submit to MMS two copies of
any written third-party agreements, or
two copies of a complete written
explanation of any oral third-party
agreements, relating to the method and
costs of delivery of royalty oil, or crude
oil exchanged for the royalty oil, from
the point of delivery under the contract
to the purchaser’s refinery. Also, this
section requires that the purchaser must
submit copies of agreements pertaining
to quality differentials that may occur
between the lease(s) and the delivery
point(s). However, in practice MMS
does not currently require eligible
refiners to submit these agreements.
Offers, Financial Statements, and
Surety Instruments for Sales of Royalty
Oil and Gas—This information was
previously collected under ICRs 1010–
0129 and 1010–0135.
Offers. The Secretary is obligated to
hold competition when selling to the
public to protect actual RIK production
before, during, and after any sale and to
obtain a fair return on royalty
production sold. The MMS must fulfill
those obligations for the Secretary. The
reporting requirements are (1) actual
pricing offers that potential purchasers
will submit when MMS offers
production for competitive sale; (2)
offerors’ statements of financial
qualification (audited financial
statements or 10K report/statement);
and (3) surety instruments, such as a
Letter of Credit (LOC), bond,
prepayment, or parent guaranty when
financial qualification is not sufficient.
All LOCs are irrevocable.
The MMS typically offers royalty oil
and gas production for sale by Invitation
for Offers (IFOs) to those offerors who
have previously established their
qualifications. The MMS evaluates all
offers to determine which combination
of price and other terms comprises the
best return to the U.S. Department of the
Treasury and to any affected state.
Financial Statements. The MMS may
request that a bidder submit its publicavailable statements of its financial
condition (brought briefly up to date, if
needed) or other related qualification
information. The MMS evaluates the
qualification information to determine
whether bidders are reliable to follow
through on payment of the dollar
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amount (or delivery of exchange
production) offered, as they bid, and to
determine their ability to timely perform
activities attendant to the taking of
crude oil and/or natural gas. The MMS
performs this step to reduce the risk to
the Federal Government in these
transactions.
Surety Instruments. Under MMS’s
current practice, eligible refiners are
subject to the same requirements as
other RIK purchasers regarding MMSacceptable surety instruments and
qualification information. Reporting
requirements in 30 CFR 208.11 discuss
surety instruments for eligible refiners.
Surety instruments include the broad
field of financial instruments that may
be collected, such as bonds,
prepayments, and parent guaranties.
When required, eligible refiners and
other RIK purchasers must provide
surety documents, i.e., Form MMS–
4071, LOC; Form MMS–4072, RoyaltyIn-Kind Contract Surety Bond; other
acceptable commercial surety, within 5
business days prior to the first delivery
under the contract to protect the Federal
Government’s interest. For bonds, MMS
The MMS is requesting OMB’s
approval to continue to collect this
information. Not collecting this
information would limit the Secretary’s
ability to discharge his/her duties and
may also result in loss of royalty
payments.
Frequency of Response: On occasion,
weekly, monthly, annually, frequency
varies within monthly reporting cycle,
or as necessary.
Estimated Number and Description of
Respondents: 145 Federal lessees and/or
operators; and 80 commercial oil and
gas purchasers and/or refiners.
Estimated Annual Reporting and
Recordkeeping ‘‘Hour’’ Burden: 2,284
hours.
The following chart shows the
breakdown of the estimated burden
hours by CFR section and paragraph.
We are revising this ICR to include
previously overlooked reporting
requirements at § 208.10(d). We have
adjusted the burden hours accordingly.
We have not included in our estimates
certain requirements performed in the
normal course of business and
considered usual and customary.
requires a specific MMS-approved
format. All parent guaranties must
specify a dollar amount of the guaranty
and the effective term.
For awards exceeding the amount of
unsecured credit issued by MMS,
successful offerors will be required to
provide secured financial assurance in
the form of an LOC, bond, or other
MMS-acceptable surety instrument
within 5 business days prior to the first
delivery under the contract.
In cases of high-risk counterparties, or
large awards of RIK crude oil or natural
gas, MMS will require a surety
instrument to guarantee performance
under RIK sales or exchange agreement.
Surety instruments are commonly used
in the commercial oil and gas industry
as a standard course of business where
risk is encountered from counterparties.
The surety instruments provide the
Federal Government with a means to
collect money if refiners do not report
and pay for the Federal oil they have
received. Annually, the MMS receives
approximately 3 bonds, less than 5
LOCs, 1 or 2 prepayment(s), and 10
parent guaranties or, in some cases,
semiannually.
SECTION A.12 BURDEN BREAKDOWN
Citation 30 CFR Part 208
Subpart A
Average
number of
annual responses
Hour
burden
Reporting and recordkeeping requirement
Annual burden hours
208.4 Royalty oil sales to eligible refiners.
208.4(a) ...............................
208.4(b) ...............................
208.4(c) ................................
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208.4(d) ...............................
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(a) Determination to take royalty oil in kind. The Secretary may evaluate crude oil market conditions from
time to time. * * * The Secretary will review these
items and will determine whether eligible refiners
have access to adequate supplies of crude oil and
whether such oil is available to eligible refiners at equitable prices. * * *
(b) Sale to eligible refiners. (1) * * * The Secretary may
authorize MMS to offer royalty oil for sale to eligible
refiners only for use in their refineries * * *
(c) Upon a determination by the Secretary * * * that eligible refiners do have access to adequate supplies of
crude oil at equitable prices, MMS will not take royalties in kind from oil and gas leases for exclusive sale
to such refiners. * * *
(d) Interim sales. * * * The potentially eligible refiners,
individually or collectively, must submit documentation
demonstrating that adequate supplies of crude oil at
equitable prices are not available for purchase. * * *
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4
8
32
Hour burden covered under § 208.4(a).
Hour burden covered under § 208.4(a).
Hour burden covered under § 208.4(a).
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SECTION A.12 BURDEN BREAKDOWN—Continued
Citation 30 CFR Part 208
Subpart A
Average
number of
annual responses
Hour
burden
Reporting and recordkeeping requirement
Annual burden hours
208.6 General application procedures.
208.6(a) and (b) ...................
(a) To apply for the purchase of royalty oil, an applicant
must file a Form MMS–4070 with MMS in accordance
with instructions provided in the ‘‘Notice of Availability
of Royalty Oil’’ and in accordance with any instructions issued by MMS for completion of Form MMS–
4070. The applicant will be required to submit a letter
of intent from a qualified financial institution stating
that it would be granted surety coverage for the royalty oil for which it is applying, or other such proof of
surety coverage, as deemed acceptable by MMS.
The letter of intent must be submitted with a completed Form MMS–4070. (b) In addition to any other
application requirements specified in the Notice, the
following information is required on Form MMS–4070
at the time of application: * * *
1.25
8
10
0.25
1
1 (rounded up from 0.25)
1
1
1
208.7 Determination of eligibility.
208.7(a) ...............................
(a) The MMS will examine each application and may request additional information if the information in the
application is inadequate. * * *
208.8 Transportation and delivery.
8.8(a)
208.8(b) ...............................
(a) * * * The purchaser must have physical access to
the oil at the alternate delivery point and such point
must be approved by MMS.
(b) * * * If the delivery point is on or immediately adjacent to the lease, the royalty oil will be delivered without cost to the Federal Government as an undivided
portion of production in marketable condition at pipeline connections or other facilities provided by the lessee, unless other arrangements are approved by
MMS. If the delivery point is not on or immediately
adjacent to the lease, MMS will reimburse the lessee
for the reasonable cost of transportation to such point
in an amount not to exceed the transportation allowance determined pursuant to 30 CFR part 206. * * *
Hour burden covered by OMB Control Number 1010–
0140 (Form MMS–2014, expires 10/31/2006).
This provision is no different than the transportation allowances allowed in 30 CFR part 206 for royalties
paid in value. The lessee enters allowance amount
on Form MMS–2014.
208.9 Agreements.
208.9(a) ...............................
(a) A purchaser must submit to MMS two copies of any
written third-party agreements, or two copies of a full
written explanation of any oral third-party agreements,
relating to the method and costs of delivery of royalty
oil, or crude oil exchanged for the royalty oil, from the
point of delivery under the contract to the purchaser’s
refinery. In addition, the purchaser must submit copies of agreements pertaining to quality differentials
which may occur between leases and delivery points.
1
8
8
2
20
40
1
1
1
208.10 Notices.
208.10(d) .............................
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208.10(e) .............................
VerDate Aug<31>2005
13:01 Jan 20, 2006
(d) After MMS notification that royalty oil will be taken in
kind, the operator shall be responsible for notifying
each working interest on the Federal lease. * * *
(e) A purchaser cannot transfer, assign, or sell its rights
or interest in a royalty oil contract without written approval of the Director, MMS. * * * Without express
written consent from MMS for a change in ownership,
the royalty oil contract shall be terminated. * * *
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23JAN1
3539
Federal Register / Vol. 71, No. 14 / Monday, January 23, 2006 / Notices
SECTION A.12 BURDEN BREAKDOWN—Continued
Citation 30 CFR Part 208
Subpart A
Average
number of
annual responses
Hour
burden
Reporting and recordkeeping requirement
Annual burden hours
208.11 Surety requirements [for eligible refiners].
208.11(a), (b) (d), and (e) ...
(a) The eligible purchaser, prior to execution of the contract, shall furnish an ‘‘MMS-specified surety instrument,’’ in an amount equal to the estimated value of
royalty oil that could be taken by the purchaser in a
99-day period, plus related administrative charges.
* * *
Hour burden covered under ‘‘Offers, Financial Statements, and Surety Instruments for Sales of Royalty
Oil and Gas’’ section.
(Forms MMS–4071, Letter of Credit, and MMS–4072,
Royalty-In-Kind Contract Surety Bond)
208.15 Audits.
208.15 ..................................
Audits of the accounts and books of lessees, operators,
payors, and/or purchasers of royalty oil taken in kind
may be made annually or at other such times as may
be directed by MMS. * * *
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.
Directed Communications by Operators of Federal Oil and Gas Leases.
Contract-Directed .................
Wyoming Oil .....................................................................
Natural Gas [Texas 8G and Gulf of Mexico (GOM)] .......
GOM Oil ...........................................................................
SPR Fill Initiative (The SPR is expected to reach full capacity by the end of FY 2005. At that point, MMS will
shift SPR oil volumes to the commercial GOM Oil RIK
program. Thus, information collection responses will
continue at the same level after SPR is filled to capacity.)
Eligible Refiners ...............................................................
3
3
3
3
47
176
7
101
141
528
21
303
3
46
138
Offers, Financial Statements, and Surety Instruments for Sales of Royalty Oil and Gas.
Offers ................................................................................
Financial Statements ........................................................
Surety Instruments ...........................................................
1
1
10
840
20
20
Total Burden .................
erjones on PROD1PC61 with NOTICES
Contract-Directed .................
...........................................................................................
................
1,304
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: Section 3506(c)(2)(A) of
the PRA 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)
VerDate Aug<31>2005
13:01 Jan 20, 2006
Jkt 208001
minimize the burden on the
respondents, including the use of
automated collection techniques or
other forms of information technology.
To comply with the public
consultation process, we published a
notice in the Federal Register on March
7, 2005 (70 FR 11027), announcing that
we would submit this ICR to OMB for
approval. The notice provided the
required 60-day comment period. We
received no comments in response to
the notice.
If you wish to comment in response
to this notice, you may send your
comments to the offices listed under the
ADDRESSES section of this notice. The
OMB has up to 60 days to approve or
disapprove the information collection
but may respond after 30 days.
Therefore, to ensure maximum
consideration, OMB should receive
public comments by February 22, 2006.
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/InfoColl/
InfoColCom.htm. We will also make
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840
20
200
2,284
copies of the comments available for
public review, including names and
addresses of respondents, during regular
business hours at our offices n
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 a
respondent’s identity, as allowable by
law. If you request that we withhold
your name and/or address, state your
request prominently at the beginning of
your comment. However, we will not
consider anonymous comments. We
will make all submissions from
organizations or businesses, and from
individuals identifying themselves as
representatives or officials of
organizations or businesses, available
for public inspection in their entirety.
MMS Information Collection
Clearance Officer: Arlene Bajusz (202)
208–7744.
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3540
Federal Register / Vol. 71, No. 14 / Monday, January 23, 2006 / Notices
Dated: September 9, 2005.
Lucy Querques Denett,
Associate Director for Minerals Revenue
Management.
[FR Doc. E6–731 Filed 1–20–06; 8:45 am]
BILLING CODE 4310–MR–P
DEPARTMENT OF THE INTERIOR
Office of Surface Mining Reclamation
and Enforcement
Notice of Proposed Information
Collection for 1029–0059
Office of Surface Mining
Reclamation and Enforcement.
ACTION: Notice and request for
comments.
erjones on PROD1PC61 with NOTICES
AGENCY:
SUMMARY: In compliance with the
Paperwork Reduction Act of 1995, the
Office of Surface Mining Reclamation
and Enforcement (OSM) is announcing
its intention to request renewed
approval for the collections of
information for 30 CFR part 735—Grants
for Program Development and
Administration and Enforcement, and
30 CFR 886—State and Tribal
Reclamation Grants. This collection
request has been forwarded to the Office
of Management and Budget (OMB) for
review and comment. The information
collection request describes the nature
of the information collection and the
expected burden and cost.
DATES: OMB has up to 60 days to
approve or disapprove the information
collections but may respond after 30
days. Therefore, public comments
should be submitted to OMB by
February 22, 2006, in order to be
assured of consideration.
ADDRESSES: Please send comments to
the Office of Information and Regulatory
Affairs, Office of Management and
Budget, Department of the Interior Desk
Officer, via e-mail at
OIRA_Docket@omb.eop.gov, or by
facsimile to (202) 395–6566. Also,
please send a copy of your comments to
John A. Trelease, Office of Surface
Mining Reclamation and Enforcement,
1951 Constitution Ave, NW., Room
202—SIB, Washington, DC 20240, or
electronically to jtreleas@osmre.gov.
Please reference 1029–0059 in your
correspondence.
FOR FURTHER INFORMATION CONTACT: To
request a copy of either information
collection request, explanatory
information and related forms, contact
John A. Trelease at (202) 208–2783, or
electronically to jtreleas@osmre.gov.
SUPPLEMENTARY INFORMATION: The Office
of Management and Budget (OMB)
regulations at 5 CFR 1320, which
VerDate Aug<31>2005
13:01 Jan 20, 2006
Jkt 208001
implement provisions of the Paperwork
Reduction Act of 1995 (Pub. L. 104–13),
require that interested members of the
public and affected agencies have an
opportunity to comment on information
collection and recordkeeping activities
[see 5 CFR 1320.8(d)]. OSM has
submitted a request to OMB to renew its
approval of the collections of
information contained in 30 CFR part
735—Grants for Program Development
and Administration and Enforcement,
and 30 CFR part 886—State and Tribal
Reclamation Grants. OSM is requesting
a 3-year term of approval for each
information collection activity.
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. The OMB control
number for 30 CFR parts 735 and 886
that require grant submittals are
currently approved under OMB control
number 1029–0059.
As required under 5 CFR 1320.8(d), a
Federal Register notice soliciting
comments on this collection of
information was published on
September 16, 2005 (70 FR 54770). No
comments were received. This notice
provides the public with an additional
30 days in which to comment on the
following information collection
activity:
Title: 30 CFR part 735—Grants for
Program Development and
Administration and Enforcement, and
30 CFR part 886—State and Tribal
Reclamation Grants
OMB Control Number: 1029–0059.
Summary: State and Tribal
reclamation and regulatory authorities
are requested to provide specific budget
and program information as part of the
grant application and reporting
processes authorized by the Surface
Mining Control and Reclamation Act.
Bureau Form Numbers: OSM–47,
OSM–49 and OSM–51.
Frequency of Collection: Semiannually, annually and once.
Description of Respondents: State and
Tribal regulatory and reclamation
authorities.
Total Annual Responses: 132.
Total Annual Burden Hours: 680
hours.
Send comments on the need for the
collections of information for the
performance of the functions of the
agency; the accuracy of the agency’s
burden estimates; ways to enhance the
quality, utility and clarity of the
information collections; and ways to
minimize the information collection
burdens on respondents, such as use of
automated means of collections of the
information, to the following addresses.
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Please refer to OMB control number
1029–0059 in your correspondence.
Dated: November 17, 2005.
John A. Trelease,
Acting Chief, Division of Regulatory Support.
[FR Doc. 06–558 Filed 1–20–06; 8:45 am]
BILLING CODE 4310–05–M
INTERNATIONAL TRADE
COMMISSION
[Investigation No. 337–TA–554]
In the Matter of Certain Axle Bearing
Assemblies, Components Thereof, and
Products Containing the Same; Notice
of a Commission Determination Not To
Review an Initial Determination
Amending the Complaint and Notice of
Investigation
U.S. International Trade
Commission.
ACTION: Notice.
AGENCY:
SUMMARY: Notice is hereby given that
the U.S. International Trade
Commission has determined not to
review an initial determination (‘‘ID’’) of
the presiding administrative law judge
(‘‘ALJ’’) granting the motion of
complainant and respondents to amend
the complaint and notice of
investigation.
FOR FURTHER INFORMATION CONTACT:
Michael K. Haldenstein, Esq., Office of
the General Counsel, U.S. International
Trade Commission, 500 E Street, SW.,
Washington, DC 20436, telephone (202)
205–3041. Copies of the public version
of the ALJ’s ID and all other
nonconfidential documents filed in
connection with this investigation are or
will be available for inspection during
official business hours (8:45 a.m. to 5:15
p.m.) in the Office of the Secretary, U.S.
International Trade Commission, 500 E
Street, SW., Washington, DC 20436,
telephone 202–205–2000.
General information concerning the
Commission may also be obtained by
accessing its Internet server (https://
www.usitc.gov). The public record for
this investigation may be viewed on the
Commission’s electronic docket (EDIS–
ON–LINE) at https://edis.usitc.gov.
Hearing-impaired persons are advised
that information on this matter can be
obtained by contacting the
Commission’s TDD terminal on 202–
205–1810.
SUPPLEMENTARY INFORMATION: The
Commission instituted this investigation
on November 28, 2005, based on a
complaint filed pursuant to section 337
of the Tariff Act of 1930, as amended,
19 U.S.C. 337, by NTN Corporation of
E:\FR\FM\23JAN1.SGM
23JAN1
]]>Agencies
[Federal Register Volume 71, Number 14 (Monday, January 23, 2006)]
[Notices]
[Pages 3534-3540]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-731]
-----------------------------------------------------------------------
DEPARTMENT OF THE INTERIOR
Minerals Management Service
Agency Information Collection Activities: Submitted for Office of
Management and Budget (OMB) Review; Comment Request
AGENCY: Minerals Management Service (MMS), Interior.
ACTION: Notice of a revision of a currently approved information
collection (OMB Control Number 1010-0119).
-----------------------------------------------------------------------
SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), we
are notifying the public that we have submitted to OMB an information
collection request (ICR) to renew approval of the paperwork
requirements in the regulations under 30 CFR part 208--Sale of Federal
Royalty Oil.
This notice also provides the public a second opportunity to
comment on the paperwork burden of these regulatory requirements. The
title of this information collection request (ICR) is ``30 CFR Part
208--Sale of Federal Royalty Oil; Sale of Federal Royalty Gas; and
Commercial Contracts (Forms MMS-4070, Application for the Purchase of
Royalty Oil; MMS-4071, Letter of Credit; and MMS-4072, Royalty-in-Kind
Contract Surety Bond).'' We changed the title of this ICR to clarify
the regulatory language we are covering under 30 CFR part 208 and to
include relevant portions of the Royalty-In-Kind (RIK) 5-Year Business
Plan. The title change also reflects OMB's approval of consolidation of
five RIK-related ICRs. Those ICRs were titled:
1010-0042: 30 CFR part 208--Sale of Federal Royalty Oil;
Royalty-in-Kind (RIK) Program (Form MMS-4070, Application for the
Purchase of Royalty Oil);
1010-0119: 30 CFR part 208--Sale of Federal Royalty Oil,
Royalty Oil Sales to Eligible Refiners (30 CFR 208.4(a) and (d));
1010-0126: Royalty-In-Kind (RIK) Pilot Program Directed
Communications by Operators of Federal Oil and Gas Leases;
1010-0129: Royalty-in-Kind Pilot Program--Offers,
Financial Statements, and Surety Instruments for Sales of Royalty Oil
and Gas; and
1010-0135: 30 CFR 208.11(a), (b), (d), and (e)--Surety
Requirements (Forms MMS-4071 and MMS-4072).
In the five ICRs, much of the general information was repeated and
cross referenced. This consolidated ICR 1010-0119 eliminates that
duplication of effort and redundancy of data and
[[Page 3535]]
provides for review of all RIK information collection requirements on a
program-wide basis.
DATES: Submit written comments on or before February 22, 2006.
ADDRESSES: Submit written comments by either FAX (202) 395-6566 or e-
mail (OIRA--Docket@omb.eop.gov) directly to the Office of Information
and Regulatory Affairs, OMB, Attention: Desk Officer for the Department
of the Interior (OMB Control Number 1010-0119). Mail your 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, West 6th Avenue and Kipling Blvd., 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, e-mail Sharron.Gebhardt@mms.gov. You may
also contact Sharron Gebhardt to obtain a copy at no cost of the forms
and regulations that require the subject collection of information.
SUPPLEMENTARY INFORMATION: Title: 30 CFR part 208--Sale of Federal
Royalty Oil; Sale of Federal Royalty Gas; and Commercial Contracts
(Forms MMS-4070, Application for the Purchase of Royalty Oil; MMS-4071,
Letter of Credit; and MMS-4072, Royalty-in-Kind Contract Surety Bond).
OMB Control Number: 1010-0119.
Bureau Form Number: Forms MMS-4070, MMS-4071, and MMS-4072.
Abstract: The Secretary of the U.S. 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, under the Mineral Leasing Act of 1920, Section 36, as
amended (30 U.S.C. 192) (Mineral Leasing Act); and the Outer
Continental Shelf Lands Act of 1953, Section 27, as amended (43 U.S.C.
1353) (OCS Lands Act), 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 funds
collected in accordance with applicable laws. The MMS performs the
royalty management functions for the Secretary.
The MMS is responsible for ensuring that all revenues from Federal
and Indian mineral leases are accurately collected, accounted for, and
disbursed to recipients. Historically, most of these revenues have been
received in the form of cash royalty payments, i.e., royalty in-value
payments. These payments are paid by mineral development interests. In
recent years, MMS conducted pilots to test the approach of taking
royalties in kind.
The Federal Government's MMS RIK pilot program became a permanent
operational program after several years of pilot project testing. The
MMS RIK operational program takes payment from mineral lessees ``in
kind'' in the form of produced crude oil and natural gas volumes,
rather than in cash payments. The lessee transfers the title of the
crude oil or natural gas to the Federal Government, and MMS sells the
received product (crude oil or natural gas) to agents in the
marketplace and disburses revenues as prescribed by law. The MMS sells
some product competitively in the unrestricted marketplace, and other
RIK product is sold competitively to eligible refiners (a small and
independent refiner, as defined in 30 CFR 208.2). Additionally, when
directed, MMS delivers the RIK product to other Federal agencies, as
has been the case during the fill of the Strategic Petroleum Reserve
(SPR), directed by the President in 2001, with scheduled completion in
2005. Specifically, within the MMS RIK operational program, MMS
conducts the eligible refiner program and the SPR program, in addition
to the Wyoming crude oil, offshore unrestricted crude oil, and offshore
natural gas programs.
Recently, MMS consolidated and revised existing procedures and
policies guiding the sale of onshore and offshore royalty crude oil and
natural gas (1) to establish uniformity within the regulatory and
operational framework; (2) to provide industry with a more efficient
and responsive MMS RIK operational program; and (3) to improve the
Federal Government's administration of this program. For example,
several of the reporting requirements for eligible refiners under 30
CFR part 208 have been combined with reporting requirements for other
RIK purchasers. However, due to the unique nature of the sale of crude
oil to eligible refiners, certain requirements pertain only to that
eligible refiner program.
Applicable citations of the laws pertaining to the taking and
selling of the Federal Government's royalty share of mineral leases in
the form of production (royalties ``in kind'') include 30 CFR part 208;
Mineral Leasing Act; OCS Lands Act; 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. These citations, as well as specific language
in the actual lease documents, authorize the Secretary to sell royalty
oil and gas accruing to the United States. The standard lease terms
state that royalties are due in amount or in value. In addition, these
citations authorize the Secretary to prescribe proper rules and
regulations and to do any and all things necessary to accomplish the
purpose of applicable laws. The MMS directs communications between MMS
operators and RIK purchasers through commercial contracts, situation-
specific ``Dear Operator'' letters, or in the case of eligible
refiners, through regulations at 30 CFR part 208. Proprietary
information submitted to MMS under this collection is protected, and no
items of a sensitive nature are collected.
Eligible Refiner Information--This information was previously
collected under ICRs 1010-0042 and 1010-0119.
Determination of Need--Federal Register Notice
As stated earlier, royalties may be paid ``in value'' or ``in
kind.'' The regulations at 30 CFR part 208, Sale of Federal Royalty
Oil, govern the Federal oil RIK program for eligible refiners. Under 30
CFR 208.4(a) and (b), MMS, on behalf of the Secretary, performs a
Determination of Need prior to issuing a Notice of Availability of
Royalty Oil for sale. The MMS uses the feedback from the Determination
of Need respondents (eligible refiners or other interested parties,
such as lessees or operators) to assess current marketplace conditions,
i.e., whether small and independent eligible refiners have access to
ongoing supplies of crude oil at equitable prices. When MMS determines
that eligible refiners do not have access to adequate supplies of oil,
MMS may dispose of any royalty oil taken in kind, by conducting a sale
of such oil, through an allocation process, to eligible refiners. The
most recent Determination of Need assessment, requesting specific
information from eligible refiners, was published in the Federal
Register on August 11, 2003 (68 FR 47605).
In order to qualify for RIK sales, eligible refiners must
prequalify by
[[Page 3536]]
signing the MMS base contract, ``RIK Crude Oil General Terms and
Conditions,'' and providing detailed financial information. Upon
prequalification, MMS will issue an amount of unsecured credit, based
on the creditability of the offeror.
Notice of Availability of Royalty Oil--Federal Register Notice
Under Sec. 208.5, if MMS determines from the Determination of Need
that eligible refiners do not have access to adequate supplies of crude
oil, MMS would then publish a Notice of Availability of Royalty Oil for
sale, in the Federal Register and other printed media, when
appropriate. This notice advises industry of a forthcoming RIK crude
oil sale for eligible refiners and includes administrative details
concerning the application, the allocation process, and the contract
award process for the royalty oil. It also details specific information
about the crude oil types offered for sale and the location of delivery
points. The most recent Notice of Availability of Royalty Oil was
published in the Federal Register on March 12, 2004 (69 FR 11881).
Under Sec. 208.10(e), eligible refiners who purchase royalty oil
cannot transfer, assign, or sell their rights or interest in a royalty
oil contract without written approval of the Director, MMS. This
provision is intended to ensure that only qualified eligible refiners
benefit from these sales of royalty oil.
Form MMS-4070--Application for the Purchase of Royalty Oil
Under Sec. 208.6, eligible refiners interested in purchasing
royalty oil must submit Form MMS-4070 in accordance with instructions
in the Notice of Availability of Royalty Oil and instructions issued by
MMS for completion of the form. On Form MMS-4070, MMS requests specific
information, such as: The location of their refinery; desirability of
offshore versus onshore crude; type of crude desired (e.g., Wyoming
Sweet); ability to obtain long-term supply of desired crude (with
supporting documentation, such as ``denial'' by major supplier);
ability to obtain desired crude at fair market prices (with supporting
documentation that desired oil was not available or equitably priced
for the area or region in question); percentage of total refining
capacity attributable to Federal oil versus other sources; etc.
The Federal Government's administration of the eligible refiner
program is aided significantly by the collection of information
requested on Form MMS-4070. The MMS uses the information collected to
determine the eligibility of refiners wanting to enter into contracts
to purchase royalty oil and to provide a basis for the allocation of
available royalty oil among eligible refiners, when necessary; that is,
they meet the small refiner eligibility requirements issued by the
Small Business Administration, as explained under Sec. 208.6.
Directed Communications by Operators of Federal Oil and Gas
Leases--This information was previously collected under ICR 1010-0126.
Collection of RIK crude oil and natural gas for eligible refiners
and other RIK purchasers requires communication between MMS and the
operators of a lease to ensure accurate and timely delivery of MMS's
royalty share of production volumes. In order to take MMS's crude oil
or natural gas in kind, MMS, as the responsible steward of oil and gas
royalties, must direct operators of affected MMS leases to provide
three types of communication:
(1) Report information about the projected volumes and qualities of
RIK crude oil or natural gas production the operator expects to make
available for delivery in the following month, and report corrections
to those projected volumes and qualities for previous months,
submitting monthly no later than 10 days before the first day of
following month;
(2) Report cost/invoicing information about transportation charges
incurred for delivering the RIK product to the delivery point, when
applicable; and
(3) Report month-end summary information (lease imbalance
statement) regarding total RIK crude oil or natural gas volumes and
qualities needed to carry over to the next month to resolve aggregated
imbalances that have occurred in prior months of RIK deliveries.
In marketing the product, information received through MMS's
directed communication is essential for MMS to ensure the delivery and
acceptance of verifiable quantities and qualities of crude oil and
natural gas. In cases when MMS is directed to deliver the product to
other Federal agencies, these types of directed communication are
necessary so that exchange contractors can arrange to timely accept
accurate amounts and qualities of royalty oil that will be delivered by
MMS's exchange partner and for MMS to verify timely fulfillment of
operators' and lessees' royalty obligations to the Federal Government.
The types of directed communication and the supporting data, which
MMS requires operators to use in setting up the monthly delivery of RIK
to the purchaser, are standard business practices in the oil and gas
industry. Sample ``Dear Operator'' letters are posted on RIK's Web site
at https://www.mrm.mms.gov/rikweb/RIKOperLts.htm.
Third-Party Agreements--This information was previously collected
under ICR 1010-0042.
Title 30 CFR 208.9 requires that eligible refiners who purchase
royalty oil must submit to MMS two copies of any written third-party
agreements, or two copies of a complete written explanation of any oral
third-party agreements, relating to the method and costs of delivery of
royalty oil, or crude oil exchanged for the royalty oil, from the point
of delivery under the contract to the purchaser's refinery. Also, this
section requires that the purchaser must submit copies of agreements
pertaining to quality differentials that may occur between the lease(s)
and the delivery point(s). However, in practice MMS does not currently
require eligible refiners to submit these agreements.
Offers, Financial Statements, and Surety Instruments for Sales of
Royalty Oil and Gas--This information was previously collected under
ICRs 1010-0129 and 1010-0135.
Offers. The Secretary is obligated to hold competition when selling
to the public to protect actual RIK production before, during, and
after any sale and to obtain a fair return on royalty production sold.
The MMS must fulfill those obligations for the Secretary. The reporting
requirements are (1) actual pricing offers that potential purchasers
will submit when MMS offers production for competitive sale; (2)
offerors' statements of financial qualification (audited financial
statements or 10K report/statement); and (3) surety instruments, such
as a Letter of Credit (LOC), bond, prepayment, or parent guaranty when
financial qualification is not sufficient. All LOCs are irrevocable.
The MMS typically offers royalty oil and gas production for sale by
Invitation for Offers (IFOs) to those offerors who have previously
established their qualifications. The MMS evaluates all offers to
determine which combination of price and other terms comprises the best
return to the U.S. Department of the Treasury and to any affected
state.
Financial Statements. The MMS may request that a bidder submit its
public-available statements of its financial condition (brought briefly
up to date, if needed) or other related qualification information. The
MMS evaluates the qualification information to determine whether
bidders are reliable to follow through on payment of the dollar
[[Page 3537]]
amount (or delivery of exchange production) offered, as they bid, and
to determine their ability to timely perform activities attendant to
the taking of crude oil and/or natural gas. The MMS performs this step
to reduce the risk to the Federal Government in these transactions.
Surety Instruments. Under MMS's current practice, eligible refiners
are subject to the same requirements as other RIK purchasers regarding
MMS-acceptable surety instruments and qualification information.
Reporting requirements in 30 CFR 208.11 discuss surety instruments for
eligible refiners. Surety instruments include the broad field of
financial instruments that may be collected, such as bonds,
prepayments, and parent guaranties. When required, eligible refiners
and other RIK purchasers must provide surety documents, i.e., Form MMS-
4071, LOC; Form MMS-4072, Royalty-In-Kind Contract Surety Bond; other
acceptable commercial surety, within 5 business days prior to the first
delivery under the contract to protect the Federal Government's
interest. For bonds, MMS requires a specific MMS-approved format. All
parent guaranties must specify a dollar amount of the guaranty and the
effective term.
For awards exceeding the amount of unsecured credit issued by MMS,
successful offerors will be required to provide secured financial
assurance in the form of an LOC, bond, or other MMS-acceptable surety
instrument within 5 business days prior to the first delivery under the
contract.
In cases of high-risk counterparties, or large awards of RIK crude
oil or natural gas, MMS will require a surety instrument to guarantee
performance under RIK sales or exchange agreement. Surety instruments
are commonly used in the commercial oil and gas industry as a standard
course of business where risk is encountered from counterparties.
The surety instruments provide the Federal Government with a means
to collect money if refiners do not report and pay for the Federal oil
they have received. Annually, the MMS receives approximately 3 bonds,
less than 5 LOCs, 1 or 2 prepayment(s), and 10 parent guaranties or, in
some cases, semiannually.
The MMS is requesting OMB's approval to continue to collect this
information. Not collecting this information would limit the
Secretary's ability to discharge his/her duties and may also result in
loss of royalty payments.
Frequency of Response: On occasion, weekly, monthly, annually,
frequency varies within monthly reporting cycle, or as necessary.
Estimated Number and Description of Respondents: 145 Federal
lessees and/or operators; and 80 commercial oil and gas purchasers and/
or refiners.
Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 2,284
hours.
The following chart shows the breakdown of the estimated burden
hours by CFR section and paragraph. We are revising this ICR to include
previously overlooked reporting requirements at Sec. 208.10(d). We
have adjusted the burden hours accordingly. We have not included in our
estimates certain requirements performed in the normal course of
business and considered usual and customary.
Section A.12 Burden Breakdown
----------------------------------------------------------------------------------------------------------------
Average
Reporting and recordkeeping Hour number of
Citation 30 CFR Part 208 Subpart A requirement burden annual Annual burden hours
responses
----------------------------------------------------------------------------------------------------------------
208.4 Royalty oil sales to eligible refiners.
----------------------------------------------------------------------------------------------------------------
208.4(a)........................... (a) Determination to take 4 8 32
royalty oil in kind. The
Secretary may evaluate
crude oil market
conditions from time to
time. * * * The Secretary
will review these items
and will determine whether
eligible refiners have
access to adequate
supplies of crude oil and
whether such oil is
available to eligible
refiners at equitable
prices. * * *
208.4(b)........................... (b) Sale to eligible Hour burden covered under Sec. 208.4(a).
refiners. (1) * * * The
Secretary may authorize
MMS to offer royalty oil
for sale to eligible
refiners only for use in
their refineries * * *
208.4(c)........................... (c) Upon a determination by Hour burden covered under Sec. 208.4(a).
the Secretary * * * that
eligible refiners do have
access to adequate
supplies of crude oil at
equitable prices, MMS will
not take royalties in kind
from oil and gas leases
for exclusive sale to such
refiners. * * *
208.4(d)........................... (d) Interim sales. * * * Hour burden covered under Sec. 208.4(a).
The potentially eligible
refiners, individually or
collectively, must submit
documentation
demonstrating that
adequate supplies of crude
oil at equitable prices
are not available for
purchase. * * *
------------------------------------
[[Page 3538]]
208.6 General application procedures.
----------------------------------------------------------------------------------------------------------------
208.6(a) and (b)................... (a) To apply for the 1.25 8 10
purchase of royalty oil,
an applicant must file a
Form MMS-4070 with MMS in
accordance with
instructions provided in
the ``Notice of
Availability of Royalty
Oil'' and in accordance
with any instructions
issued by MMS for
completion of Form MMS-
4070. The applicant will
be required to submit a
letter of intent from a
qualified financial
institution stating that
it would be granted surety
coverage for the royalty
oil for which it is
applying, or other such
proof of surety coverage,
as deemed acceptable by
MMS. The letter of intent
must be submitted with a
completed Form MMS-4070.
(b) In addition to any
other application
requirements specified in
the Notice, the following
information is required on
Form MMS-4070 at the time
of application: * * *
------------------------------------
208.7 Determination of eligibility.
----------------------------------------------------------------------------------------------------------------
208.7(a)........................... (a) The MMS will examine 0.25 1 1 (rounded up from
each application and may 0.25)
request additional
information if the
information in the
application is inadequate.
* * *
------------------------------------
208.8 Transportation and delivery.
----------------------------------------------------------------------------------------------------------------
8.8(a) (a) * * * The purchaser 1 1 1
must have physical access
to the oil at the
alternate delivery point
and such point must be
approved by MMS.
208.8(b)........................... (b) * * * If the delivery Hour burden covered by OMB Control Number 1010-
point is on or immediately 0140 (Form MMS-2014, expires 10/31/2006).
adjacent to the lease, the This provision is no different than the
royalty oil will be transportation allowances allowed in 30 CFR
delivered without cost to part 206 for royalties paid in value. The
the Federal Government as lessee enters allowance amount on Form MMS-
an undivided portion of 2014.
production in marketable
condition at pipeline
connections or other
facilities provided by the
lessee, unless other
arrangements are approved
by MMS. If the delivery
point is not on or
immediately adjacent to
the lease, MMS will
reimburse the lessee for
the reasonable cost of
transportation to such
point in an amount not to
exceed the transportation
allowance determined
pursuant to 30 CFR part
206. * * *
------------------------------------
208.9 Agreements.
----------------------------------------------------------------------------------------------------------------
208.9(a)........................... (a) A purchaser must submit 1 8 8
to MMS two copies of any
written third-party
agreements, or two copies
of a full written
explanation of any oral
third-party agreements,
relating to the method and
costs of delivery of
royalty oil, or crude oil
exchanged for the royalty
oil, from the point of
delivery under the
contract to the
purchaser's refinery. In
addition, the purchaser
must submit copies of
agreements pertaining to
quality differentials
which may occur between
leases and delivery points.
------------------------------------
208.10 Notices.
----------------------------------------------------------------------------------------------------------------
208.10(d).......................... (d) After MMS notification 2 20 40
that royalty oil will be
taken in kind, the
operator shall be
responsible for notifying
each working interest on
the Federal lease. * * *
208.10(e).......................... (e) A purchaser cannot 1 1 1
transfer, assign, or sell
its rights or interest in
a royalty oil contract
without written approval
of the Director, MMS. * *
* Without express written
consent from MMS for a
change in ownership, the
royalty oil contract shall
be terminated. * * *
------------------------------------
[[Page 3539]]
208.11 Surety requirements [for eligible refiners].
----------------------------------------------------------------------------------------------------------------
208.11(a), (b) (d), and (e)........ (a) The eligible purchaser, Hour burden covered under ``Offers, Financial
prior to execution of the Statements, and Surety Instruments for Sales
contract, shall furnish an of Royalty Oil and Gas'' section.
``MMS-specified surety (Forms MMS-4071, Letter of Credit, and MMS-
instrument,'' in an amount 4072, Royalty-In-Kind Contract Surety Bond)
equal to the estimated
value of royalty oil that
could be taken by the
purchaser in a 99-day
period, plus related
administrative charges. *
* *
------------------------------------
208.15 Audits.
----------------------------------------------------------------------------------------------------------------
208.15............................. Audits of the accounts and PRODUCE RECORDS The ORA determined that the
books of lessees, audit process is not covered by the PRA
operators, payors, and/or because MMS staff asks non-standard questions
purchasers of royalty oil to resolve exceptions.
taken in kind may be made
annually or at other such
times as may be directed
by MMS. * * *
------------------------------------
Directed Communications by Operators of Federal Oil and Gas Leases.
----------------------------------------------------------------------------------------------------------------
Contract-Directed.................. Wyoming Oil................ 3 47 141
Natural Gas [Texas 8G and 3 176 528
Gulf of Mexico (GOM)].
GOM Oil.................... 3 7 21
SPR Fill Initiative (The 3 101 303
SPR is expected to reach
full capacity by the end
of FY 2005. At that point,
MMS will shift SPR oil
volumes to the commercial
GOM Oil RIK program. Thus,
information collection
responses will continue at
the same level after SPR
is filled to capacity.)
Eligible Refiners.......... 3 46 138
------------------------------------
Offers, Financial Statements, and Surety Instruments for Sales of Royalty Oil and Gas.
----------------------------------------------------------------------------------------------------------------
Contract-Directed.................. Offers..................... 1 840 840
Financial Statements....... 1 20 20
Surety Instruments......... 10 20 200
------------------------------
Total Burden................... ........................... ......... 1,304 2,284
----------------------------------------------------------------------------------------------------------------
Estimated Annual Reporting and Recordkeeping ``Non-hour'' Cost
Burden: We have identified no ``non-hour'' cost burdens.
Public Disclosure Statement: The PRA (44 U.S.C. 3501 et seq.)
provides that an agency may not conduct or sponsor, and a person is not
required to respond to, a collection of information unless it displays
a currently valid OMB control number.
Comments: Section 3506(c)(2)(A) of the PRA 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 automated collection techniques or other forms of
information technology.
To comply with the public consultation process, we published a
notice in the Federal Register on March 7, 2005 (70 FR 11027),
announcing that we would submit this ICR to OMB for approval. The
notice provided the required 60-day comment period. We received no
comments in response to the notice.
If you wish to comment in response to this notice, you may send
your comments to the offices listed under the ADDRESSES section of this
notice. The OMB has up to 60 days to approve or disapprove the
information collection but may respond after 30 days. Therefore, to
ensure maximum consideration, OMB should receive public comments by
February 22, 2006.
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/
InfoColl/InfoColCom.htm. We will also make copies of the comments
available for public review, including names and addresses of
respondents, during regular business hours at our offices n 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 a respondent's
identity, as allowable by law. If you request that we withhold your
name and/or address, state your request prominently at the beginning of
your comment. However, we will not consider anonymous comments. We will
make all submissions from organizations or businesses, and from
individuals identifying themselves as representatives or officials of
organizations or businesses, available for public inspection in their
entirety.
MMS Information Collection Clearance Officer: Arlene Bajusz (202)
208-7744.
[[Page 3540]]
Dated: September 9, 2005.
Lucy Querques Denett,
Associate Director for Minerals Revenue Management.
[FR Doc. E6-731 Filed 1-20-06; 8:45 am]
BILLING CODE 4310-MR-P
