Agency Information Collection Activities: Submitted for Office of Management and Budget (OMB) Review; Comment Request, 3534-3540 [E6-731]

Download as PDF 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 ..................................................................................................................................... erjones on PROD1PC61 with NOTICES 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. VerDate Aug<31>2005 13:01 Jan 20, 2006 Jkt 208001 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: PO 00000 Frm 00081 Fmt 4703 Sfmt 4703 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 E:\FR\FM\23JAN1.SGM 23JAN1 erjones on PROD1PC61 with NOTICES 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, VerDate Aug<31>2005 13:01 Jan 20, 2006 Jkt 208001 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 PO 00000 Frm 00082 Fmt 4703 Sfmt 4703 3535 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 E:\FR\FM\23JAN1.SGM 23JAN1 3536 Federal Register / Vol. 71, No. 14 / Monday, January 23, 2006 / Notices 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. erjones on PROD1PC61 with NOTICES 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 VerDate Aug<31>2005 13:01 Jan 20, 2006 Jkt 208001 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 PO 00000 Frm 00083 Fmt 4703 Sfmt 4703 purchaser, are standard business practices in the oil and gas industry. Sample ‘‘Dear Operator’’ letters are posted on RIK’s Web site at http:// 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 E:\FR\FM\23JAN1.SGM 23JAN1 3537 Federal Register / Vol. 71, No. 14 / Monday, January 23, 2006 / Notices 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) ................................ erjones on PROD1PC61 with NOTICES 208.4(d) ............................... VerDate Aug<31>2005 13:01 Jan 20, 2006 (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. * * * Jkt 208001 PO 00000 Frm 00084 Fmt 4703 Sfmt 4703 4 8 32 Hour burden covered under § 208.4(a). Hour burden covered under § 208.4(a). Hour burden covered under § 208.4(a). E:\FR\FM\23JAN1.SGM 23JAN1 3538 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 208.6 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) ............................. erjones on PROD1PC61 with NOTICES 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. * * * Jkt 208001 PO 00000 Frm 00085 Fmt 4703 Sfmt 4703 E:\FR\FM\23JAN1.SGM 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 http:// www.mrm.mms.gov/Laws_R_D/InfoColl/ InfoColCom.htm. We will also make PO 00000 Frm 00086 Fmt 4703 Sfmt 4703 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. E:\FR\FM\23JAN1.SGM 23JAN1 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. PO 00000 Frm 00087 Fmt 4703 Sfmt 4703 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 (http:// www.usitc.gov). The public record for this investigation may be viewed on the Commission’s electronic docket (EDIS– ON–LINE) at http://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 http://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 http://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