Agency Information Collection Activities: Submitted for Office of Management and Budget (OMB) Review; Comment Request, 28372-28382 [E6-7436]
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28372
Federal Register / Vol. 71, No. 94 / Tuesday, May 16, 2006 / Notices
February 20, 2006, for Groups 81 and
126, Oklahoma.
The plat, in two sheets, representing
the dependent resurvey of a portion of
the subdivisional lines, a portion of the
subdivision of section 33, and the
adjusted 1875 record meanders of the
former left bank of the Red River in
section 34, the subdivision of section
34, the completion survey of a portion
of the subdivisional lines within the bed
of the Red river, the survey of partition
lines of the bed of the Red River, the
informative traverse of the meanders of
the left bank of the Red River in sections
33, 34 and 35, the survey of the
meanders of the right bank of the Red
River in unsurveyed portions of
Township 4 and 5 South, Range 14
West, and the medial line of the Red
River in sections 33, 34 and 35, and a
metes-and-bounds survey (Integrated
Tract), Township 4 South, range 14
West, Indian Meridian, accepted
February 20, 2006, for Groups 84 and
126, Oklahoma.
If a protest against a survey, in
accordance with 43 CFR 4.450–2, of any
of the above plats is received prior to
the date of official filing, the filing will
be stayed pending consideration of the
protest. A plat will not be officially filed
until the day after all protests have been
addressed.
A person or party who wishes to
protest against any of these surveys
must file a written protest with the New
Mexico State Director, Bureau of Land
Management at the address below,
stating that they wish to protest.
A statement of reasons for a protest
may be filed with the notice of protest
to the State Director, or the statement of
reasons must be filed with the State
Director within thirty days after the
protest is filed.
FOR FURTHER INFORMATION CONTACT:
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These plats will be available for
inspection in the New Mexico State
Office, Bureau of Land Management,
P.O. Box 27115, Santa Fe, New Mexico
87502–0115. Copies may be obtained
from this office upon payment of $1.10
per sheet. contact Marcella Montoya at
505–438–7537, or
Marcella_Montoya@nm.blm.gov, for
assistance.
Dated: May 9, 2006.
Robert Casias,
Chief Cadastral Surveyor for New Mexico.
[FR Doc. 06–4540 Filed 5–15–06; 8:45 am]
BILLING CODE 4310–FB–M
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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.
ACTION: Notice of a revision of a
currently approved information
collection (OMB Control Number 1010–
0136)
AGENCY:
SUMMARY: To comply with the
Paperwork Reduction Act 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 202—Royalties and part
206—Product Valuation. 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 202—
Royalties, Subparts C and D, and Part
206—Product Valuation, Subparts C and
D (Federal Oil and Gas).’’ We changed
the title of this ICR to clarify the
regulatory language we cover under 30
CFR parts 202 and 206, address nonstandard reporting requirements
previously overlooked, and address
relevant portions of three related ICRs
titled:
• 1010–0095: 30 CFR Part 206—
Product Valuation (Request to Exceed
Transportation and Processing
Allowance Limitation), Subpart B—
Indian Oil, § 206.54(b)(2); Subpart C—
Federal Oil, § 206.109(c)(2); Subpart D—
Federal Gas, §§ 206.156(c)(3),
206.158(c)(3), and 206.158(d)(2)(i); and
Subpart E—Indian Gas, §§ 206.177(c)(2)
and 206.177(c)(3) [Citations concerning
Indian oil and gas are currently covered
in ICR 1010–0103];
• 1010–0136: 30 CFR 206—Subpart C,
Federal Oil Valuation; and
• 1010–0157: 30 CFR 206—Subpart C,
Federal Oil.
DATES: Submit written comments on or
before June 15, 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 1010–0136).
Please also send a copy of your
comments to MMS via e-mail at
mrm.comments@mms.gov. Include the
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title of the information collection and
the OMB control number in the
‘‘Attention’’ line of your comment. Also
include your name and return address.
If you do not receive a confirmation that
we have received your e-mail, contact
Ms. Gebhardt at (303) 231–3211.
You may also mail a copy of 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-deliver your comments,
our courier address is Building 85,
Room A–614, Denver Federal Center,
West 6th Ave. and Kipling Blvd.,
Denver, Colorado 80225.
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,
at no cost, copies of (1) the ICR, (2) any
associated forms, and (3) regulations
that require the subject collection of
information be sent to OMB.
SUPPLEMENTARY INFORMATION:
Title: 30 CFR Part 202—Royalties,
Subparts C and D, and Part 206—
Product Valuation, Subparts C and D
(Federal Oil and Gas).
OMB Control Number: 1010–0136.
Bureau Form Number: Form MMS–
4393.
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), including managing the
production of minerals, collecting
royalties from lessees who produce
minerals, and distributing the funds
collected in accordance with applicable
laws. The MMS performs the royalty
management functions for the Secretary.
Applicable Citations
Applicable citations of the laws
pertaining to mineral leases include:
(1) Public Law 97–451—Jan. 12, 1983
(Federal Oil and Gas Royalty
Management Act of 1982 [FOGRMA]);
(2) Public Law 104–185—Aug. 13,
1996 (Federal Oil and Gas Royalty
Simplification and Fairness Act of 1996
[RSFA]), as corrected by Public Law
104–200—Sept. 22, 1996;
(3) The Mineral Leasing Act of 1920,
Section 36, as amended (30 U.S.C. 192);
(4) Outer Continental Shelf Lands Act
of 1953, Section 27, as amended (43
U.S.C. 1353);
(5) 30 U.S.C. 189 pertaining to Public
Lands; and
(6) 30 U.S.C. 359 pertaining to
Acquired Lands.
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Federal Register / Vol. 71, No. 94 / Tuesday, May 16, 2006 / Notices
Public laws pertaining to mineral
royalties are located on our Web site at
https://www.mrm.mms.gov/Laws_R_D/
PublicLawsAMR.htm.
The applicable regulations include 30
CFR part 202—Royalties, subpart C—
Federal and Indian Oil and subpart D—
Federal Gas; and part 206—Product
Valuation, subpart C—Federal Oil and
subpart D—Federal Gas. In addition, we
include applicable citations from the
2004 Federal Oil Valuation Rule (69 FR
24959, published May 5, 2004) and the
2005 Federal Gas Valuation Rule (70 FR
11869, published March 10, 2005).
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General Information
When a company or an individual
enters into a lease to explore, develop,
produce, and dispose of minerals from
Federal or Indian lands, that company
or individual agrees to pay the lessor a
share (royalty) of the value received
from production from the leased lands.
The lease creates a business relationship
between the lessor and the lessee. The
lessee is required to report various kinds
of information to the lessor relative to
the disposition of the leased minerals.
Such information is similar to data
reported to private and public mineral
interest owners and is generally
available within the records of the
lessee or others involved in developing,
transporting, processing, purchasing, or
selling of such minerals. The
information collected includes data
necessary to ensure that the royalties are
properly valued and appropriately paid.
Section 101(a) of FOGRMA, as
amended, requires that the Secretary
‘‘establish a comprehensive inspection,
collection, and fiscal and production
accounting and auditing system to
provide the capability to accurately
determine oil and gas royalties, interest,
fines, penalties, fees, deposits, and other
payments owed, and collect and
account for such amounts in a timely
manner.’’ In order to accomplish these
tasks, MMS developed valuation
regulations for Federal leases at 30 CFR
part 206, Product Valuation. Market
value is a basic principle underlying
royalty valuation. Consequently, these
regulations include methods to capture
the true market value of crude oil and
gas produced from Federal leases, both
onshore and offshore. The MMS uses
the information collected to ensure that
royalty is accurately valued and
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appropriately paid on oil and gas
produced from Federal onshore and
offshore leases. Please refer to the chart
for all reporting requirements and
associated burden hours. All data
submitted is subject to subsequent audit
and adjustment.
Valuation Regulations
The valuation regulations at 30 CFR
part 206, subparts C and D, require
companies to collect and/or submit
information used to value their Federal
oil and gas, including transportation
and processing allowance limit
information. This is accomplished on
Form MMS–2014, Report of Sales and
Royalty Remittance (OMB Control
Number 1010–0140, expires October 31,
2006). Regulations developed ensure the
information requested is the minimum
necessary to carry out our mission and
places the least possible burden on
respondents. The requested information
provides a critical link to establishing
the proper value of oil and gas from
Federal lands. If the information is not
collected, a loss of royalties may result
for both Federal and state governments.
Transportation and Processing
Regulatory Allowance Limits
Transportation and processing
allowances are part of the product
valuation process that MMS uses to
determine if the lessee is reporting and
paying the proper royalty amount.
Regulatory Allowance Limit for
Transportation
Under certain circumstances, lessees
are authorized to deduct from royalty
payments the reasonable actual costs of
transporting the royalty portion of
produced oil and gas from the lease to
a processing or sales point not in the
immediate lease area. For oil and gas,
regulations establish the allowable limit
on transportation allowance deductions
at 50 percent of the value of the oil or
gas at the point of sale.
Regulatory Allowance Limit for
Processing
When gas is processed for the
recovery of gas plant products, lessees
may claim a processing allowance. For
oil and gas, regulations establish the
allowable limit on processing allowance
deductions at 662⁄3 percent of the value
of each gas plant product.
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28373
Request To Exceed Regulatory
Allowance Limitation, Form MMS–4393
Lessees may request to exceed
regulatory limitations. Upon proper
application from the lessee, MMS may
approve an oil or gas transportation
allowance in excess of 50 percent
(Federal or Indian) or a gas processing
allowance in excess of 662⁄3 percent
(Federal only). To request permission to
exceed a regulatory allowance limit,
lessees must submit a letter to MMS
explaining why a higher allowance limit
is necessary and provide supporting
documentation, including a completed
Form MMS–4393. This form provides
MMS with the data necessary to make
a decision whether to approve or deny
the request and track deductions on
royalty reports.
OMB Approval
The MMS is requesting OMB 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. Proprietary
information submitted to MMS under
this collection is protected, and no
items of a sensitive nature are included
in this information collection. A
response is mandatory for valuation
requirements and voluntary to obtain
the benefit of allowances.
Frequency of Response: Annually.
Estimated Number and Description of
Respondents: 102 lessees (100 Federal
lessees and 2 possible Indian lessees).
Estimated Annual Reporting and
Recordkeeping ‘‘Hour’’ Burden: 20,504
hours.
We are revising this ICR to include
non-standard reporting requirements
that were overlooked in the previous
renewal, and we have adjusted the
burden hours accordingly. The hours
also reflect our recent analysis related to
the implementation of the 2004 Federal
Oil Valuation rule and the 2005 Federal
Gas Valuation rule. We have not
included in our estimates certain
requirements performed in the normal
course of business and considered usual
and customary. The following chart
shows the breakdown of the estimated
burden hours by CFR section and
paragraph:
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28374
Federal Register / Vol. 71, No. 94 / Tuesday, May 16, 2006 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS
Citation 30 CFR 202 and 206
Reporting and recordkeeping requirement
Average number of annual
responses
Hour burden
Annual burden
hours
Part 202—Royalties
§ 202.101
202.101 ...................................
Subpart C—Federal and Indian Oil
Standards for reporting and paying royalties.
202.101 Oil volumes are to be reported in barrels of clean
oil of 42 standard U.S. gallons (231 cubic inches each) at
60 ßF
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–0140 (Form MMS–2014), expires 10/31/
2006.
Subpart D—Federal Gas
§ 202.152
202.152 (a) and (b) .................
Standards for reporting and paying royalties on gas.
202.152(a)(1) If you are responsible for reporting production
or royalties you must:
(i) Report gas volumes and British thermal unit (Btu) heating
values, if applicable, under the same degree of water
saturation;.
(ii) Report gas volumes in units of 1,000 cubic feet (MCF);
and.
(iii) Report gas volumes and Btu heating value at a standard pressure base of 14.73 pounds per square inch absolute (PSIA) and a standard temperature base of 60 ßF
* * *.
(b) Residue gas and gas plant product volumes shall be reported as specified in this paragraph * * *.
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–0140 (Form MMS–2014), expires 10/31/
2006.
Part 206—Product Valuation
Subpart C—Federal Oil
§ 206.102
How do I calculate royalty value for oil that I or my affiliate sell(s) under an arm’s-length contract?
206.102(e)(1) ..........................
206.102(e) If you value oil under paragraph (a) of this section: (1) MMS may require you to certify that your or your
affiliate’s arm’s-length contract provisions include all of
the consideration the buyer must pay, either directly or indirectly, for the oil
§ 206.103
206.103 ...................................
206.103(a) ...............................
PRODUCE RECORDS—The Office of Regulatory Affairs (ORA) determined that the audit
process is not covered by the PRA because
MMS staff asks non-standard questions to resolve exceptions.
How do I value oil that is not sold under an arm’s-length contract?
This section explains how to value oil that you may not
value under § 206.102 or that elect under § 206.102(d) to
value under this section. First determine whether paragraph (a), (b), or (c) of this section applies to production
from your lease, or whether you may apply paragraph (d)
or (e) with MMS approval
(a) Production from leases in California or Alaska. Value is
the average of the daily mean ANS spot prices published
in any MMS-approved publication during the trading
month most concurrent with the production month * * *.
(1) To calculate the daily mean spot price * * *
(2) Use only the days * * *
(3) You must adjust the value * * *
33.25
5
166.25
........................
........................
........................
206.103(a)(4) After you select an MMS-approved publication, you may not select a different publication more often
than once every 2 years, * * *.
8
2
16
206.103(b)(1) ..........................
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206.103(a)(4) ..........................
206.103(b) Production from leases in the Rocky Mountain
Region * * * (1) If you have an MMS-approved tendering
program, you must value oil * * *.
400
2
800
206.103(b)(1)(ii) ......................
206.103(b)(1)(ii) If you do not have an MMS-approved tendering program, you may elect to value your oil under either paragraph (b)(2) or (b)(3) of this section * * *.
400
2
800
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28375
Federal Register / Vol. 71, No. 94 / Tuesday, May 16, 2006 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Citation 30 CFR 202 and 206
Reporting and recordkeeping requirement
206.103(b)(4) ..........................
206.103(c)(1) ..........................
206.103(e)(1) ..........................
206.103(e)(2) ..........................
§ 206.105
206.105 ...................................
206.105 If you determine the value of your oil under this
subpart, you must retain all data relevant to the determination of royalty value * * *.
§ 206.110
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330
660
330
4.25
8
2,640
2
8.51
How do I determine a transportation allowance under an arm’s-length transportation contract?
216.110(d) If your arm’s-length transportation contract includes more than one liquid product, and the transportation costs attributable to each product cannot be determined * * *.
(3) You may propose to MMS a cost allocation method
* * *.
206.110(e) If your arm’s-length transportation contract includes both gaseous and liquid products, and the transportation costs attributable to each product cannot be determined from the contract, then you must propose an allocation procedure to MMS.
16:06 May 15, 2006
2
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–0140 (Form MMS–2014), expires 10/31/
2006.
206.109(c) Limits on transportation allowances. (2) You may
ask MMS to approve a transportation allowance in excess
of the limitation in paragraph (c)(1) of this section. * * *
Your application for exception (using Form MMS–4393,
Request to Exceed Regulatory Allowance Limitation) must
contain all relevant and supporting documentation necessary for MMS to make a determination * * *.
206.110(d)(3) ..........................
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500
When may I take a transportation allowance in determining value?
206.110(a) * * * You must be able to demonstrate that you
or your affiliate’s contract is at arm’s length * * *.
206.110(e)(1) and (2) .............
10
How do I request a value determination?
206.110(a) ...............................
206.110(e) ...............................
800
50
206.107(a) You may request a value determination from
MMS * * *.
§ 206.109
206.109(c)(2) ..........................
2
What records must I keep to support my calculations of value under this subpart?
§ 206.107
206.107(a) ...............................
Annual burden
hours
400
206.103(b)(4) If you demonstrate to MMS’s satisfaction that
paragraphs (b)(1) through (b)(3) of this section result in
an unreasonable value for your production as a result of
circumstances regarding that production, the MMS Director may establish an alternative valuation method.
206.103(c) Production from leases not located in California,
Alaska or the Rocky Mountain Region. (1) Value is the
NYMEX price, plus the roll, adjusted for applicable location and quality differentials and transportation costs
under § 206.112.
206.103(e) Production delivered to your refinery and the
NYMEX price or ANS spot price is an unreasonable
value. (1) * * * you may apply to the MMS Director to establish a value representing the market at the refinery if:
* * *.
(2) You must provide adequate documentation and evidence demonstrating the market value at the refinery
* * *.
Average number of annual
responses
Hour burden
206.110(e)(1) * * * If MMS rejects your cost allocation, you
must amend your Form MMS–2014 * * *.
(2) You must submit your initial proposal, including all available data, within 3 months after first claiming the allocated deductions on Form MMS–2014.
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PRODUCE RECORDS—The ORA determined
that the audit process is not covered by the
PRA because MMS staff asks non-standard
questions to resolve exceptions.
330
2
660
330
1
330
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–0140 (Form MMS–2014), expires 10/31/
2006.
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Federal Register / Vol. 71, No. 94 / Tuesday, May 16, 2006 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Citation 30 CFR 202 and 206
Reporting and recordkeeping requirement
206.110(g)(2) ..........................
206.110(g) If your arm’s-length sales include a provision reducing the contract price by a transportation factor, * * *.
(2) You must obtain MMS approval before claiming a transportation factor in excess of 50 percent of the base price
of the product..
§ 206.111
Hour burden
Average number of annual
responses
Annual burden
hours
1
330
330
How do I determine if a transportation allowance if I do not have an arm’s-length transportation contract or arm’s-length tariff?
206.111(g) ...............................
206.111(g) To compute depreciation, you may elect to use
either * * * After you make an election, you may not
change methods without MMS approval * * *.
206.111(k)(2) You may propose to MMS a cost allocation
method on the basis of the values * * *.
330
1
330
330
1
330
206.111(l)(1) ...........................
206.111(l)(1) Where you transport both gaseous land liquid
products through the same transportation system, you
must propose a cost allocation procedure to MMS.
330
1
330
206.111(l)(2) ...........................
206.111(l)(2) * * * If MMS rejects your cost allocation, you
must amend your Form MMS–2104 for the month months
that you used the rejected method and pay any additional
royalty and interest due.
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–0140 (Form MMS–2014), expires 10/31/
06.
206.111(l)(3) ...........................
206.111(l)(3) You must submit your initial proposal, including all available data, within 3 months after first claiming
the allocated deductions on Form MMS–2014.
Burden covered under § 206.111(l)(1).
206.111(k)(2) ..........................
§ 206.112
What adjustments and transportation allowances apply when I value oil production from my lease using NYMEX prices or ANS spot
prices?
206.112(a)(1)(ii) ......................
206.112(a)(1)(ii) * * * under an exchange agreement that is
not at arm’s length, you must obtain approval from MMS
for a location and quality differential * * *.
330
1
330
206.112(a)(1)(ii) ......................
206.112(a)(1)(ii) * * * If MMS prescribes a different differential, you must apply. * * * You must pay any additional royalties owed * * * plus the late payment interest
from the original royalty due date, or you may report a
credit * * *.
206.112(a)(3) If you transport exchange at arm’s length (or
both transport and exchange) at least 20 percent, but not
all, of your oil produced from the lease to a market center, determine the adjustment between the lease and the
market center for the oil that is not transported or exchanged (or both transported and exchanged) to or
through a market center as follows * * *.
(a)(4) If you transport or exchange (or both transport and
exchange) less than 20 percent of your crude oil produced from the lease between the lease and a market
center, you must propose to MMS an adjustment between
the lease and the market center for the portion of the oil
that you do not transport or exchange (or both transport
and exchange) to a market center * * * If MMS prescribes a different adjustment * * * You must pay any
additional royalties owed * * * plus the late payment interest from the original royalty due date, or you may report a credit * * *.
206.112(b)(3) * * * you may propose an alternative differential to MMS * * * if MMS prescribes a different differential * * * You must pay any additional royalties owed
* * * plus the late payment interest from the original royalty due date, or you may report a credit * * *.
330
2
660
330
4
1,320
330
4
1,320
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206.112(a)(3) ..........................
206.112(a)(4) ..........................
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206.112(b)(3) ..........................
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Federal Register / Vol. 71, No. 94 / Tuesday, May 16, 2006 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Citation 30 CFR 202 and 206
Reporting and recordkeeping requirement
206.112(c)(2) ..........................
206.112(c)(2) * * * If quality bank adjustments do not incorporate or provide for adjustments for sulfur content, you
may make sulfur adjustments, based on the quality of the
representative crude oil at the market center, 5.0 cents
per one-tenth percent difference in sulfur content, unless
MMS approves a higher adjustment.
§ 206.114
Hour burden
Average number of annual
responses
Annual burden
hours
2
660
330
What are my reporting requirements under an arm’s-length transportation contract?
206.114 ...................................
206.114 You or your affiliate must use a separate entry on
Form MMS–2014 to notify MMS of an allowance based
on transportation costs you or your affiliate incur..
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–0140 (Form MMS–2014), expires 10/31/
2006.
206.114 ...................................
206.114 MMS may require you or your affiliate to submit
arm’s-length transportation contracts, production agreements, operating agreements, and related documents.
PRODUCE RECORDS—The ORA determined
that the audit process is not covered by the
PRA because MMA staff asks non-standard
questions to resolve exceptions.
§ 206.115
What are my reporting requirements under a non-arm’s-length transportation arrangement?
206.115(a) ...............................
206.115(a) You or your affiliate must use a separate entry
on Form MMS–2014 to notify MMS of an allowance
based on transportation costs you or your affiliate incur.
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–0140 (Form MMS–2014), expires 10/31/
2006.
206.115(c) ...............................
206.115(c) MMS may require you or your affiliates to submit
all data used to calculate the allowance deduction * * *.
PRODUCE RECORDS—The ORA determined
that the audit process is not covered by the
PRA because MMS staff asks non-standard
questions to resolve exceptions.
Subpart D—Federal Gas
§ 206.152
Valuation standards—unprocessed gas
206.152(b)(1)(i) * * * The lessee shall have the burden of
demonstrating that its contracts is arm’s-length * * *.
(iii) * * * When MMS determines that the value may be unreasonable, MMS will notify the lessee and give the lessee an opportunity to provide written information justifying
the lessee’s value.
206.152(b)(2) ..........................
206.152(b)(2) * * * The lessee must request a value determination in accordance with paragraph (g) of this section
for gas sold pursuant to a warranty contract; * * *.
206.152(b)(3) ..........................
206.152(b)(3) MMS may require a lessee to certify that its
arm’s-length contract provisions include all of the consideration to be paid by the buyer, either directly or indirectly, for the gas.
PRODUCE RECORDS—The ORA determined
that the audit process is not covered by the
PRA because MMS staff asks non-standard
questions to resolve exceptions.
206.152(e)(1) ..........................
206.152(e)(1) Where the value is determined pursuant to
paragraph (c) of this section, the lessee shall retain all
data relevant to the determination of royalty value * * *.
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–0140 (Form MMS–2014), expires 10/31/
2006.
206.152(e)(2) ..........................
sroberts on PROD1PC70 with NOTICES
206.152(b)(1)(i) and (iii) ..........
206.152(e)(2) Any Federal lessee will make available upon
request to the authorized MMS or State representatives,
to the Office of the Inspector General of the department
of the Interior, or other person authorized to receive such
information, arm’s-length sales and volume data for likequality production sold, purchased or otherwise obtained
by the lessee from the field or area or from nearby fields
or areas.
PRODUCE RECORDS—The ORA determined
that the audit process is not covered by the
PRA because MMS staff asks non-standard
questions to resolve exceptions.
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PRODUCE RECORDS—The ORA determined
that the audit process is not covered by the
PRA because MMS staff asks non-standard
questions to resolve exceptions.
330
E:\FR\FM\16MYN1.SGM
16MYN1
1
330
28378
Federal Register / Vol. 71, No. 94 / Tuesday, May 16, 2006 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Citation 30 CFR 202 and 206
206.152(e)(3) ..........................
206.152(g) ...............................
206.152(g) The lessee may request a value determination
from MMS. * * * The lessee shall submit all available
data relevant to its proposal * * *.
§ 206.153
Annual burden
hours
21
660
330
206.152(e)(3) A lessee shall notify MMS if it has determined
value pursuant to paragraph (c)(2) or (c)(3) of this section
* * *.
Average number of annual
responses
330
Reporting and recordkeeping requirement
6
1,980
Hour burden
Valuation standards—processed gas.
206.153(b)(1)(i) and (iii) ..........
206.153(b)(1)(i) * * * The lessee shall have the burden of
demonstrating that its contract is arm’s-length * * *.
(iii) * * * When MMS determines that the value may be unreasonable, MMS will notify the lessee and give the lessee an opportunity to provide written information justifying
the lessee’s value.
206.153(b)(2) ..........................
206.153(b)(2) * * * The lessee must request a value determination in accordance with paragraph (g) of this section
for gas sold pursuant to a warranty contract; * * *.
206.153(b)(3) ..........................
206.153(b)(3) MMS may require a lessee to certify that its
arm’s-length contract provisions include all of the consideration to be paid by the buyer, either directly or indirectly, for the residue gas or gas plant product
PRODUCE RECORDS—The ORA determined
that the audit process is not covered by the
PRA because MMS staff asks non-standard
questions to resolve exceptions.
206.153(e)(1) ..........................
206.153(e)(1) Where the value is determined pursuant to
paragraph (c) of this section, the lessee shall retain all
data relevant to the determination of royalty value * * *.
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–0140 (Form MMS–2014), expires 10/31/
2006.
206.153(e)(2) ..........................
206.153(e)(2) Any Federal lessee will make available upon
request to the authorized MMS or State representatives,
to the Office of the Inspector General of the Department
of the Interior, or other persons authorized to receive
such information, arm’s-length sales and volume data for
like-quality residue gas and gas plant products sold, purchased or otherwise obtained by the lessee from the
same processing plant or from nearby processing plants.
PRODUCE RECORDS—The ORA determined
that the audit process is not covered by the
PRA because MMS staff asks non-standard
questions to resolve exceptions.
206.153(e)(3) ..........................
206.153(e)(2) A lessee shall notify MMS if it has determined
any value pursuant to paragraph (c)(2) or (c)(3) of this
section * * *.
330
2
660
206.153(g) ...............................
206.153(g) The lessee may request a value determination
from MMS. * * * The lessee shall submit all available
data relevant to its proposal * * *.
330
4
1,320
330
11
330
206.156(c)(3) Upon request of a lessee, MMS may approve
a transportation allowance deduction in excess of the limitation prescribed by paragraphs (c)(1) and (c)(2) of this
section. * * * An application for exception (using Form
MMS–4393, Request to Exceed Regulatory Allowance
Limitation) shall contain all relevant and supporting documentation necessary for MMS to make a determination
* * *.
4.25
5
2 21.25
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§ 206.154
206.154(c)(4) ..........................
sroberts on PROD1PC70 with NOTICES
VerDate Aug<31>2005
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330
1
330
Determination of quantities and qualities for computing royalties.
206.154(c)(4) * * * A lessee may request MMS approval of
other methods for determining the quantity of residue gas
and gas plant products allocable to each lease * * *.
§ 206.156
206.156(c)(3) ..........................
PRODUCE RECORDS—The ORA determined
that the audit process is not covered by the
PRA because MMS staff asks non-standard
questions to resolve exceptions.
PO 00000
Transportation allowances—general.
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Federal Register / Vol. 71, No. 94 / Tuesday, May 16, 2006 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Citation 30 CFR 202 and 206
Reporting and recordkeeping requirement
§ 206.157
Hour burden
Average number of annual
responses
Annual burden
hours
Determination of transportation allowances.
206.157(a)(1)(i) .......................
206.157(a) Arm’s-length transportation contracts. (1)(i) * * *
The lessee shall have the burden of demonstrating that
its contract is arm’s-length * * *.
PRODUCE RECORDS—The ORA determined
that the audit process is not covered by the
PRA because MMS staff asks non-standard
questions to resolve exceptions.
206.157(a)(1)(i) .......................
206.157(a)(1)(i) * * * The lessee must claim a transportation allowance by reporting it on a separate line entry
on the Form MMS–2014.
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–0140 (Form MMS–2014), expires 10/31/
2006.
206.157(a)(1)(iii) .....................
206.157(a)(1)(iii) * * * When MMS determines that the
value of the transportation may be unreasonable, MMS
will notify the lessee and give the lessee an opportunity to
provide written information justifying the lessee’s transportation costs
PRODUCE RECORDS—The ORA determined
that the audit process is not covered by the
PRA because MMS staff asks non-standard
questions to resolve exceptions.
206.157(a)(2)(ii) ......................
206.157(a)(2)(ii) * * * the lessee may propose to MMS a
cost allocation method on the basis of the values of the
products transported * * *.
330
1
330
206.157(a)(3) ..........................
206.157(a)(3) If an arm’s-length transportation contract includes both gaseous and liquid products and the transportation costs attributable to each cannot be determined
from the contract, the lessee shall propose an allocation
procedure to MMS. * * * The lessee shall submit all relevant data to support its proposal * * *.
206.157(a)(5) * * * The transportation factor may not exceed 50 percent of the base price of the product without
MMS approval.
330
1
330
100
1
100
206.157(a)(5) ..........................
206.157(b)(1) ..........................
206.157(b) Non-arm’s-length or no contract. (1) The lessee
must claim a transportation allowance by reporting it on a
separate line entry on the Form MMS–2014 * * *.
206.157(b)(2)(iv) .....................
206.157(b)(2)(iv) After a lessee has elected to use either
method for a transportation system, the lessee may not
later elect to change to the other alternative without approval of the MMS.
(A) After an election is made, the lessee may not change
methods without MMS approval * * *.
206.157(b)(3)(ii) * * * the lessee may propose to the MMS
a cost allocation method on the basis of the values of the
products transported * * *.
206.157(b)(4) Where both gaseous and liquid products are
transported through the same transportation system, the
lessee shall propose a cost allocation procedure to MMS.
* * * The lessee shall submit all relevant data to support
its proposal * * *.
206.157(b)(5) You may apply for an exception from the requirement to compute actual costs under paragraphs
(b)(1) through (b)(4) of this section.
206.157(b)(2)(vi)(A) ................
206.157(b)(3)(ii) ......................
206.157(b)(4) ..........................
206.157(b)(5) ..........................
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–0140 (Form MMS–2014), expires 10/31/
2006.
100
1
100
100
1
100
100
1
100
100
1
100
sroberts on PROD1PC70 with NOTICES
206.175(c)(1)(i) .......................
206.157(c) Reporting Requirements. (1) Arm’s-length contracts. (i) You must use a separate entry on Form MMS–
2014 to notify MMS of a transportation allowance.
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–0140 (From MMS–2014), expires 10/31/
2006.
206.157(c)(1)(ii) ......................
206.157(c)(1)(ii) The MMS may require you to submit arm’slength transportation contracts, production agreements,
operating agreements, and related document * * *.
PRODUCE RECORDS—The ORA determined
that the audit process is not covered by the
PRA because MMS staff asks non-standard
questions to resolve exception.
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28380
Federal Register / Vol. 71, No. 94 / Tuesday, May 16, 2006 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Annual burden
hours
Reporting and recordkeeping requirement
206.157(c)(2)(i) .......................
206.157(c)(2) Non-arm’s-length or no contract. (i) You must
use a separate entry on Form MMS–2014 to notify MMS
of a transportation allowance.
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–0140 (Form MMS–2014), expires 10/31/
2006
206.157(c)(2)(iii) ......................
206.157(c)(2)(iii) The MMS may require you to submit all
data used to calculate the allowance deduction * * *.
PRODUCE RECORDS—The ORA determined
that the audit process is not covered by the
PRA because MMS staff asks non-standard
questions to resolve exceptions
206.157(e)(2) and (3) .............
206.157(e) Adjustments. (2) For lessees transporting production from onshore Federal leases, the lessee must
submit a corrected Form MMS–2014 to reflect actual
costs, together with any payment, in accordance with instructions provided by MMS.
(3) For lessees transporting gas production from leases on
the OCS, if the lessee’s estimated transportation allowance exceeds the allowance based on actual costs, the
lessee must submit a corrected Form MMS–2014 to reflect actual costs, together with its payments, in accordance with instructions provided by MMS * * *.
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–0140 (Form MMS–2014), expires 10/31/
2006.
206.157(f)(1) ...........................
(f) Allowable costs in determining transportation allowances.
* * * (1) Firm demand charges paid to pipelines. * * * if
you receive a payment or credit from the pipeline for penalty refunds, rate case refunds, or other reasons, you
must reduce the firm demand charge claimed on the
Form MMS–2014 by the amount of that payment. You
must modify Form MMS–2014 by the amount received or
credited for the affected reporting period and pay
anyresulting royalty and late payment interest due;
§ 206.158
Hour burden
Average number of annual
responses
Citation 30 CFR 202 and 206
Processing allowances—general.
206.158(c)(3) ..........................
206.158(c)(3) Upon request of a lessee, MMS may approve
a processing allowance in excess of the limitation prescribed by paragraph (c)(2) of this section. * * * An application for exception (using Form MMS–4393, Request to
Exceed Regulatory Allowance Limitation) shall contain all
relevant and supporting documentation for MMS to make
a determination * * *.
4.25
17
72.25
206.158 (d)(2)(i) ......................
206.158(d)(2)(i) If the lessee incurs extraordinary costs for
processing gas production from a gas production operation, it may apply to MMS for an allowance for those
costs * * *.
9.5
2
19
206.158(d)(2)(ii) ......................
206.158(d)(2)(ii) * * * to retain the authority to deduct the
allowance the lessee must report the deduction to MMS
in a form and manner prescribed by MMS * * *.
§ 206.158
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–1040 (Form MMS–2014), expires 10/31/
2006.
Processing allowances—general.
2106.159(a) Arm’s-length processing contracts. ...................
(1)(i) * * * The lessee shall have the burden of demonstrating that its contract is arm’s-length * * *.
PRODUCE RECORDS—The ORA determined
that the audit process is not covered by the
PRA because MMS staff asks non-standard
questions to resolve exceptions.
206.159 (a)(1)(ii) .....................
sroberts on PROD1PC70 with NOTICES
206.159(a)(1)(i) .......................
206.159(a)(1)(i) * * * The lessee must claim a processing
allowance by reporting it on a separate line entry on the
Form MMS–2014.
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–1040 (Form MMS–2014), expires 10/31/
2006.
VerDate Aug<31>2005
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Federal Register / Vol. 71, No. 94 / Tuesday, May 16, 2006 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Annual burden
hours
Reporting and recordkeeping requirement
206.159(a)(1)(iii) .....................
206.159(a)(1)(iii) * * * When MMS determines that the
value of the processing may be unreasonable, MMS will
notify the lessee and give the lessee an opportunity to
provide written information justifying the lessee’s processing costs.
206.159(a)(3) ..........................
206.159(a)(3) If an arm’s-length processing contract includes more than one gas plant product and the processing costs attributable to each product cannot be determined from the contract, the lessee shall propose an allocation procedure to MMS. * * * The lessee shall submit
all relevant data to support its proposal * * *.
206.159(b)(1) ..........................
206.159(b) Non-arm’s-length or no contract. (1) * * * The
lessee must claim a processing allowance by reflecting it
as a separate line entry on the Form MMS–2014. * * *.
206.159(b)(2)(iv) .....................
206.159(b)(2)(iv). * * * When a lessee has elected to use
either method for a processing plant, the lessee may not
later elect to change to the alternative without approval of
the MMS * * *.
100
1
100
206.159 (b)(2)(iv)(A) ...............
(A) * * * After an election is made, the lessee maynot
change methods without MMS approval * * *.
........................
........................
........................
206.159 (b)(4) .........................
206.159(b)(4) A lessee may apply to MMS for an exception
from the requirements that it compute actual costs in accordance with paragraphs (b)(1) through (b)(3) of this
section * * *.
100
1
100
206.159(c)(1)(i) .......................
206.159(c) Reporting requirements—(1) Arm’s-length contracts. (i) The lessee must notify MMS of an allowance
based on incurred costs by using a separate line entry on
the Form MMS–2014.
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–1040 (Form MMS–2014), expires 10/31/
2006.
206.159(c)(1)(ii) ......................
206.159(c)(1)(ii) The MMS may require that a lessee submit
arm’s-length processing contracts and related documents
* * *.
PRODUCE RECORDS—The ORA determined
that the audit process is not covered by the
PRA because MMS staff asks non-standard
questions to resolve exceptions.
206.159(c)(2)(i) .......................
206.159(c)(2) Non-arm’s length or no contract. .....................
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–1040 (Form MMS–2014), expires 10/31/
2006.
206.159(c)(2)(iii) ......................
206.159(c)(2)(iii) Upon request by MMS, the lessee shall
submit all data used to prepare the allowance deduction
* * *.
PRODUCE RECORDS—The ORA determiend
that the audit process is not covered by the
PRA because MMS staff asks non-standard
questions to resolve exceptions.
206.159(e)(2) and (3) .............
sroberts on PROD1PC70 with NOTICES
Hour burden
Average number of annual
responses
Citation 30 CFR 202 and 206
206.159(e) Adjustments. ........................................................
(2) For lessees processing production from onshore Federal
leases, the lessee must submit a corrected Form MMS–
2014 to reflect actual costs, together with any payment, in
accordance with instructions provided by MMS.
(3) For lessees processing gas production from leases on
the OCS, if the lessee’s estimated processing allowance
exceeds the allowance based on actual costs, the lessee
must submit a corrected Form MMS–2014 to reflect actual costs, together with its payment, in accordance with
instructions provided by MMS * * *.
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–0140 (Form MMS–2014), expires 10/31/
2006.
Total .................................
.................................................................................................
........................
PRODUCE RECORDS—The ORA determined
that the audit process is not covered by the
PRA because MMS staff asks non-standard
questions to resolve exceptions.
330
1
There are no burden hours to report in this ICR.
All burden hours associated with Form MMS–
2014 are included in OMB Control Number
1010–1040 (Form MMS–2014), expires 10/31/
2006.
1 Includes
107
an estimate of 1 response at 4.25 burden hours for 30 CFR 206.54(b)(2) for Indian oil transportation estimates.
an estimate of 1 response at 4.25 burden hours for 30 CFR 206.177(c)(2) and (c)(3) for Indian gas transportation estimates.
20,503.25 burden hours rounded up to 20,504 burden hours.
2 Includes
3 Total
330
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16:06 May 15, 2006
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E:\FR\FM\16MYN1.SGM
16MYN1
3 20,504
sroberts on PROD1PC70 with NOTICES
28382
Federal Register / Vol. 71, No. 94 / Tuesday, May 16, 2006 / Notices
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)
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 July
22, 2005 (70 FR 42366) 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 June 15, 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 in
Lakewood, Colorado. Upon request, we
will withhold an individual
respondent’s home address from the
public record, as allowable by law.
There also may be circumstances in
which we would withhold a
respondent’s identity, as allowable by
law. If you request that we withhold
your name and/or address, state your
VerDate Aug<31>2005
16:06 May 15, 2006
Jkt 208001
request prominently at the beginning of
your comment. However, we will not
consider anonymous comments. We
will make all submissions from
organizations or businesses, and from
individuals identifying themselves as
representatives or officials of
organizations or businesses, available
for public inspection in their entirety.
MMS Information Collection
Clearance Officer: Arlene Bajusz (202)
208–7744.
Dated: December 19, 2005.
Lucy Querques Denett,
Associate Director for Minerals Revenue
Management.
Editorial Note: This document was
received at the Office of the Federal Register
on May 11, 2006.
[FR Doc. E6–7436 Filed 5–15–06; 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.
ACTION: Notice of an extension of a
currently approved information
collection (OMB Control Number 1010–
0155).
AGENCY:
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 204—Alternatives for
Marginal Properties, subpart C—
Accounting and Auditing Relief. This
notice also provides the public a second
opportunity to comment on the
paperwork burden of these regulatory
requirements. This ICR is titled ‘‘30 CFR
part 204—Alternatives for Marginal
Properties, Subpart C—Accounting and
Auditing Relief.’’ This ICR covers the
regulatory language under 30 CFR part
204, as published in the Accounting and
Auditing Relief for Marginal Properties
final rule on September 13, 2004 (69 FR
55076). This citation explains how
lessees and their designees can obtain
accounting and auditing relief for
production from Federal oil and gas
leases and units and communitization
agreements that qualify as marginal
properties.
DATES: Submit written comments on or
before June 15, 2006.
PO 00000
Frm 00087
Fmt 4703
Sfmt 4703
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 1010–0155). 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, 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,
at no cost, a copy of the regulations that
require the subject collection of
information.
SUPPLEMENTARY INFORMATION:
Title: 30 CFR part 204—Alternatives
for Marginal Properties, Subpart C—
Accounting and Auditing Relief.
OMB Control Number: 1010–0155.
Bureau Form Number: None.
Abstract: The Secretary of the U.S.
Department of the Interior is responsible
for collecting royalties from lessees who
produce minerals from leased Federal
lands. The Secretary is required by
various laws to manage mineral
resources production on Federal lands,
collect the royalties due, and distribute
the funds in accordance with those
laws. The product valuation
determination process is essential to
assure that royalty payments are based
on the proper value of the minerals
being removed. The MMS performs the
royalty management functions for the
Secretary.
Minerals produced from Federal
leases vary greatly in the nature of
occurrence, markets served, and
production and processing methods.
When a company or an individual
enters into a lease to explore, develop,
produce, and dispose of minerals from
Federal or Indian lands, that company
or individual agrees to pay the lessor a
ADDRESSES:
E:\FR\FM\16MYN1.SGM
16MYN1
]]>Agencies
[Federal Register Volume 71, Number 94 (Tuesday, May 16, 2006)]
[Notices]
[Pages 28372-28382]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-7436]
-----------------------------------------------------------------------
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 1010-0136)
-----------------------------------------------------------------------
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 202--Royalties and
part 206--Product Valuation. 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 202--Royalties, Subparts C and D, and Part 206--Product Valuation,
Subparts C and D (Federal Oil and Gas).'' We changed the title of this
ICR to clarify the regulatory language we cover under 30 CFR parts 202
and 206, address non-standard reporting requirements previously
overlooked, and address relevant portions of three related ICRs titled:
1010-0095: 30 CFR Part 206--Product Valuation (Request to
Exceed Transportation and Processing Allowance Limitation), Subpart B--
Indian Oil, Sec. 206.54(b)(2); Subpart C--Federal Oil, Sec.
206.109(c)(2); Subpart D--Federal Gas, Sec. Sec. 206.156(c)(3),
206.158(c)(3), and 206.158(d)(2)(i); and Subpart E--Indian Gas,
Sec. Sec. 206.177(c)(2) and 206.177(c)(3) [Citations concerning Indian
oil and gas are currently covered in ICR 1010-0103];
1010-0136: 30 CFR 206--Subpart C, Federal Oil Valuation;
and
1010-0157: 30 CFR 206--Subpart C, Federal Oil.
DATES: Submit written comments on or before June 15, 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 1010-0136).
Please also send a copy of your comments to MMS via e-mail 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. If you do not receive a
confirmation that we have received your e-mail, contact Ms. Gebhardt at
(303) 231-3211.
You may also mail a copy of 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-deliver
your comments, our courier address is Building 85, Room A-614, Denver
Federal Center, West 6th Ave. and Kipling Blvd., Denver, Colorado
80225.
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, at no cost, copies of (1) the
ICR, (2) any associated forms, and (3) regulations that require the
subject collection of information be sent to OMB.
SUPPLEMENTARY INFORMATION:
Title: 30 CFR Part 202--Royalties, Subparts C and D, and Part 206--
Product Valuation, Subparts C and D (Federal Oil and Gas).
OMB Control Number: 1010-0136.
Bureau Form Number: Form MMS-4393.
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),
including managing the production of minerals, collecting royalties
from lessees who produce minerals, and distributing the funds collected
in accordance with applicable laws. The MMS performs the royalty
management functions for the Secretary.
Applicable Citations
Applicable citations of the laws pertaining to mineral leases
include:
(1) Public Law 97-451--Jan. 12, 1983 (Federal Oil and Gas Royalty
Management Act of 1982 [FOGRMA]);
(2) Public Law 104-185--Aug. 13, 1996 (Federal Oil and Gas Royalty
Simplification and Fairness Act of 1996 [RSFA]), as corrected by Public
Law 104-200--Sept. 22, 1996;
(3) The Mineral Leasing Act of 1920, Section 36, as amended (30
U.S.C. 192);
(4) Outer Continental Shelf Lands Act of 1953, Section 27, as
amended (43 U.S.C. 1353);
(5) 30 U.S.C. 189 pertaining to Public Lands; and
(6) 30 U.S.C. 359 pertaining to Acquired Lands.
[[Page 28373]]
Public laws pertaining to mineral royalties are located on our Web
site at https://www.mrm.mms.gov/Laws_R_D/PublicLawsAMR.htm.
The applicable regulations include 30 CFR part 202--Royalties,
subpart C--Federal and Indian Oil and subpart D--Federal Gas; and part
206--Product Valuation, subpart C--Federal Oil and subpart D--Federal
Gas. In addition, we include applicable citations from the 2004 Federal
Oil Valuation Rule (69 FR 24959, published May 5, 2004) and the 2005
Federal Gas Valuation Rule (70 FR 11869, published March 10, 2005).
General Information
When a company or an individual enters into a lease to explore,
develop, produce, and dispose of minerals from Federal or Indian lands,
that company or individual agrees to pay the lessor a share (royalty)
of the value received from production from the leased lands. The lease
creates a business relationship between the lessor and the lessee. The
lessee is required to report various kinds of information to the lessor
relative to the disposition of the leased minerals. Such information is
similar to data reported to private and public mineral interest owners
and is generally available within the records of the lessee or others
involved in developing, transporting, processing, purchasing, or
selling of such minerals. The information collected includes data
necessary to ensure that the royalties are properly valued and
appropriately paid.
Section 101(a) of FOGRMA, as amended, requires that the Secretary
``establish a comprehensive inspection, collection, and fiscal and
production accounting and auditing system to provide the capability to
accurately determine oil and gas royalties, interest, fines, penalties,
fees, deposits, and other payments owed, and collect and account for
such amounts in a timely manner.'' In order to accomplish these tasks,
MMS developed valuation regulations for Federal leases at 30 CFR part
206, Product Valuation. Market value is a basic principle underlying
royalty valuation. Consequently, these regulations include methods to
capture the true market value of crude oil and gas produced from
Federal leases, both onshore and offshore. The MMS uses the information
collected to ensure that royalty is accurately valued and appropriately
paid on oil and gas produced from Federal onshore and offshore leases.
Please refer to the chart for all reporting requirements and associated
burden hours. All data submitted is subject to subsequent audit and
adjustment.
Valuation Regulations
The valuation regulations at 30 CFR part 206, subparts C and D,
require companies to collect and/or submit information used to value
their Federal oil and gas, including transportation and processing
allowance limit information. This is accomplished on Form MMS-2014,
Report of Sales and Royalty Remittance (OMB Control Number 1010-0140,
expires October 31, 2006). Regulations developed ensure the information
requested is the minimum necessary to carry out our mission and places
the least possible burden on respondents. The requested information
provides a critical link to establishing the proper value of oil and
gas from Federal lands. If the information is not collected, a loss of
royalties may result for both Federal and state governments.
Transportation and Processing Regulatory Allowance Limits
Transportation and processing allowances are part of the product
valuation process that MMS uses to determine if the lessee is reporting
and paying the proper royalty amount.
Regulatory Allowance Limit for Transportation
Under certain circumstances, lessees are authorized to deduct from
royalty payments the reasonable actual costs of transporting the
royalty portion of produced oil and gas from the lease to a processing
or sales point not in the immediate lease area. For oil and gas,
regulations establish the allowable limit on transportation allowance
deductions at 50 percent of the value of the oil or gas at the point of
sale.
Regulatory Allowance Limit for Processing
When gas is processed for the recovery of gas plant products,
lessees may claim a processing allowance. For oil and gas, regulations
establish the allowable limit on processing allowance deductions at
66\2/3\ percent of the value of each gas plant product.
Request To Exceed Regulatory Allowance Limitation, Form MMS-4393
Lessees may request to exceed regulatory limitations. Upon proper
application from the lessee, MMS may approve an oil or gas
transportation allowance in excess of 50 percent (Federal or Indian) or
a gas processing allowance in excess of 66\2/3\ percent (Federal only).
To request permission to exceed a regulatory allowance limit, lessees
must submit a letter to MMS explaining why a higher allowance limit is
necessary and provide supporting documentation, including a completed
Form MMS-4393. This form provides MMS with the data necessary to make a
decision whether to approve or deny the request and track deductions on
royalty reports.
OMB Approval
The MMS is requesting OMB 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. Proprietary information submitted to MMS
under this collection is protected, and no items of a sensitive nature
are included in this information collection. A response is mandatory
for valuation requirements and voluntary to obtain the benefit of
allowances.
Frequency of Response: Annually.
Estimated Number and Description of Respondents: 102 lessees (100
Federal lessees and 2 possible Indian lessees).
Estimated Annual Reporting and Recordkeeping ``Hour'' Burden:
20,504 hours.
We are revising this ICR to include non-standard reporting
requirements that were overlooked in the previous renewal, and we have
adjusted the burden hours accordingly. The hours also reflect our
recent analysis related to the implementation of the 2004 Federal Oil
Valuation rule and the 2005 Federal Gas Valuation rule. We have not
included in our estimates certain requirements performed in the normal
course of business and considered usual and customary. The following
chart shows the breakdown of the estimated burden hours by CFR section
and paragraph:
[[Page 28374]]
Respondents' Estimated Annual Burden Hours
----------------------------------------------------------------------------------------------------------------
Average number
Citation 30 CFR 202 and 206 Reporting and recordkeeping Hour burden of annual Annual burden
requirement responses hours
----------------------------------------------------------------------------------------------------------------
Part 202--Royalties
----------------------------------------------------------------------------------------------------------------
Subpart C--Federal and Indian Oil
Sec. 202.101 Standards for reporting and paying royalties.
----------------------------------------------------------------------------------------------------------------
202.101............................ 202.101 Oil volumes are to There are no burden hours to report in this
be reported in barrels of ICR. All burden hours associated with Form MMS-
clean oil of 42 standard 2014 are included in OMB Control Number 1010-
U.S. gallons (231 cubic 0140 (Form MMS-2014), expires 10/31/2006.
inches each) at 60 [ordm]F
----------------------------------------------------------------------------------------------------------------
Subpart D--Federal Gas
----------------------------------------------------------------------------------------------------------------
Sec. 202.152 Standards for reporting and paying royalties on gas.
----------------------------------------------------------------------------------------------------------------
202.152 (a) and (b)................ 202.152(a)(1) If you are There are no burden hours to report in this
responsible for reporting ICR. All burden hours associated with Form MMS-
production or royalties 2014 are included in OMB Control Number 1010-
you must: 0140 (Form MMS-2014), expires 10/31/2006.
(i) Report gas volumes and
British thermal unit (Btu)
heating values, if
applicable, under the same
degree of water
saturation;.
(ii) Report gas volumes in
units of 1,000 cubic feet
(MCF); and.
(iii) Report gas volumes
and Btu heating value at a
standard pressure base of
14.73 pounds per square
inch absolute (PSIA) and a
standard temperature base
of 60 [ordm]F * * *.
(b) Residue gas and gas
plant product volumes
shall be reported as
specified in this
paragraph * * *.
----------------------------------------------------------------------------------------------------------------
Part 206--Product Valuation
----------------------------------------------------------------------------------------------------------------
Subpart C--Federal Oil
----------------------------------------------------------------------------------------------------------------
Sec. 206.102 How do I calculate royalty value for oil that I or my affiliate sell(s) under an arm's-length
contract?
----------------------------------------------------------------------------------------------------------------
206.102(e)(1)...................... 206.102(e) If you value oil PRODUCE RECORDS--The Office of Regulatory
under paragraph (a) of Affairs (ORA) determined that the audit
this section: (1) MMS may process is not covered by the PRA because MMS
require you to certify staff asks non-standard questions to resolve
that your or your exceptions.
affiliate's arm's-length
contract provisions
include all of the
consideration the buyer
must pay, either directly
or indirectly, for the oil
----------------------------------------------------------------------------------------------------------------
Sec. 206.103 How do I value oil that is not sold under an arm's-length contract?
----------------------------------------------------------------------------------------------------------------
206.103............................ This section explains how 33.25 5 166.25
to value oil that you may
not value under Sec.
206.102 or that elect
under Sec. 206.102(d) to
value under this section.
First determine whether
paragraph (a), (b), or (c)
of this section applies to
production from your
lease, or whether you may
apply paragraph (d) or (e)
with MMS approval
206.103(a)......................... (a) Production from leases .............. .............. ..............
in California or Alaska.
Value is the average of
the daily mean ANS spot
prices published in any
MMS-approved publication
during the trading month
most concurrent with the
production month * * *.
(1) To calculate the daily
mean spot price * * *.
(2) Use only the days * * *
(3) You must adjust the
value * * *.
----------------------------------------------------------------------------------------------------------------
206.103(a)(4)...................... 206.103(a)(4) After you 8 2 16
select an MMS-approved
publication, you may not
select a different
publication more often
than once every 2 years, *
* *.
----------------------------------------------------------------------------------------------------------------
206.103(b)(1)...................... 206.103(b) Production from 400 2 800
leases in the Rocky
Mountain Region * * * (1)
If you have an MMS-
approved tendering
program, you must value
oil * * *.
----------------------------------------------------------------------------------------------------------------
206.103(b)(1)(ii).................. 206.103(b)(1)(ii) If you do 400 2 800
not have an MMS-approved
tendering program, you may
elect to value your oil
under either paragraph
(b)(2) or (b)(3) of this
section * * *.
[[Page 28375]]
206.103(b)(4)...................... 206.103(b)(4) If you 400 2 800
demonstrate to MMS's
satisfaction that
paragraphs (b)(1) through
(b)(3) of this section
result in an unreasonable
value for your production
as a result of
circumstances regarding
that production, the MMS
Director may establish an
alternative valuation
method.
206.103(c)(1)...................... 206.103(c) Production from 50 10 500
leases not located in
California, Alaska or the
Rocky Mountain Region. (1)
Value is the NYMEX price,
plus the roll, adjusted
for applicable location
and quality differentials
and transportation costs
under Sec. 206.112.
206.103(e)(1)...................... 206.103(e) Production 330 2 660
delivered to your refinery
and the NYMEX price or ANS
spot price is an
unreasonable value. (1) *
* * you may apply to the
MMS Director to establish
a value representing the
market at the refinery if:
* * *.
206.103(e)(2)...................... (2) You must provide
adequate documentation and
evidence demonstrating the
market value at the
refinery * * *.
----------------------------------------------------------------------------------------------------------------
Sec. 206.105 What records must I keep to support my calculations of value under this subpart?
----------------------------------------------------------------------------------------------------------------
206.105............................ 206.105 If you determine There are no burden hours to report in this
the value of your oil ICR. All burden hours associated with Form MMS-
under this subpart, you 2014 are included in OMB Control Number 1010-
must retain all data 0140 (Form MMS-2014), expires 10/31/2006.
relevant to the
determination of royalty
value * * *.
----------------------------------------------------------------------------------------------------------------
Sec. 206.107 How do I request a value determination?
----------------------------------------------------------------------------------------------------------------
206.107(a)......................... 206.107(a) You may request 330 8 2,640
a value determination from
MMS * * *.
----------------------------------------------------------------------------------------------------------------
Sec. 206.109 When may I take a transportation allowance in determining value?
----------------------------------------------------------------------------------------------------------------
206.109(c)(2)...................... 206.109(c) Limits on 4.25 2 8.5\1\
transportation allowances.
(2) You may ask MMS to
approve a transportation
allowance in excess of the
limitation in paragraph
(c)(1) of this section. *
* * Your application for
exception (using Form MMS-
4393, Request to Exceed
Regulatory Allowance
Limitation) must contain
all relevant and
supporting documentation
necessary for MMS to make
a determination * * *.
----------------------------------------------------------------------------------------------------------------
Sec. 206.110 How do I determine a transportation allowance under an arm's-length transportation contract?
----------------------------------------------------------------------------------------------------------------
206.110(a)......................... 206.110(a) * * * You must PRODUCE RECORDS--The ORA determined that the
be able to demonstrate audit process is not covered by the PRA
that you or your because MMS staff asks non-standard questions
affiliate's contract is at to resolve exceptions.
arm's length * * *.
----------------------------------------------------------------------------------------------------------------
206.110(d)(3)...................... 216.110(d) If your arm's- 330 2 660
length transportation
contract includes more
than one liquid product,
and the transportation
costs attributable to each
product cannot be
determined * * *.
(3) You may propose to MMS
a cost allocation method *
* *.
206.110(e)......................... 206.110(e) If your arm's- 330 1 330
length transportation
contract includes both
gaseous and liquid
products, and the
transportation costs
attributable to each
product cannot be
determined from the
contract, then you must
propose an allocation
procedure to MMS.
----------------------------------------------------------------------------------------------------------------
206.110(e)(1) and (2).............. 206.110(e)(1) * * * If MMS There are no burden hours to report in this
rejects your cost ICR. All burden hours associated with Form MMS-
allocation, you must amend 2014 are included in OMB Control Number 1010-
your Form MMS-2014 * * *. 0140 (Form MMS-2014), expires 10/31/2006.
(2) You must submit your
initial proposal,
including all available
data, within 3 months
after first claiming the
allocated deductions on
Form MMS-2014.
----------------------------------------------------------------------------------------------------------------
[[Page 28376]]
206.110(g)(2)...................... 206.110(g) If your arm's- 330 1 330
length sales include a
provision reducing the
contract price by a
transportation factor, * *
*.
(2) You must obtain MMS
approval before claiming a
transportation factor in
excess of 50 percent of
the base price of the
product..
----------------------------------------------------------------------------------------------------------------
Sec. 206.111 How do I determine if a transportation allowance if I do not have an arm's-length transportation
contract or arm's-length tariff?
----------------------------------------------------------------------------------------------------------------
206.111(g)......................... 206.111(g) To compute 330 1 330
depreciation, you may
elect to use either * * *
After you make an
election, you may not
change methods without MMS
approval * * *.
206.111(k)(2)...................... 206.111(k)(2) You may 330 1 330
propose to MMS a cost
allocation method on the
basis of the values * * *.
----------------------------------------------------------------------------------------------------------------
206.111(l)(1)...................... 206.111(l)(1) Where you 330 1 330
transport both gaseous
land liquid products
through the same
transportation system, you
must propose a cost
allocation procedure to
MMS.
----------------------------------------------------------------------------------------------------------------
206.111(l)(2)...................... 206.111(l)(2) * * * If MMS There are no burden hours to report in this
rejects your cost ICR. All burden hours associated with Form MMS-
allocation, you must amend 2014 are included in OMB Control Number 1010-
your Form MMS-2104 for the 0140 (Form MMS-2014), expires 10/31/06.
month months that you used
the rejected method and
pay any additional royalty
and interest due.
----------------------------------------------------------------------------------------------------------------
206.111(l)(3)...................... 206.111(l)(3) You must Burden covered under Sec. 206.111(l)(1).
submit your initial
proposal, including all
available data, within 3
months after first
claiming the allocated
deductions on Form MMS-
2014.
----------------------------------------------------------------------------------------------------------------
Sec. 206.112 What adjustments and transportation allowances apply when I value oil production from my lease
using NYMEX prices or ANS spot prices?
----------------------------------------------------------------------------------------------------------------
206.112(a)(1)(ii).................. 206.112(a)(1)(ii) * * * 330 1 330
under an exchange
agreement that is not at
arm's length, you must
obtain approval from MMS
for a location and quality
differential * * *.
----------------------------------------------------------------------------------------------------------------
206.112(a)(1)(ii).................. 206.112(a)(1)(ii) * * * If 330 2 660
MMS prescribes a different
differential, you must
apply. * * * You must pay
any additional royalties
owed * * * plus the late
payment interest from the
original royalty due date,
or you may report a credit
* * *.
206.112(a)(3)...................... 206.112(a)(3) If you 330 4 1,320
transport exchange at
arm's length (or both
transport and exchange) at
least 20 percent, but not
all, of your oil produced
from the lease to a market
center, determine the
adjustment between the
lease and the market
center for the oil that is
not transported or
exchanged (or both
transported and exchanged)
to or through a market
center as follows * * *.
206.112(a)(4)...................... (a)(4) If you transport or
exchange (or both
transport and exchange)
less than 20 percent of
your crude oil produced
from the lease between the
lease and a market center,
you must propose to MMS an
adjustment between the
lease and the market
center for the portion of
the oil that you do not
transport or exchange (or
both transport and
exchange) to a market
center * * * If MMS
prescribes a different
adjustment * * * You must
pay any additional
royalties owed * * * plus
the late payment interest
from the original royalty
due date, or you may
report a credit * * *.
206.112(b)(3)...................... 206.112(b)(3) * * * you may 330 4 1,320
propose an alternative
differential to MMS * * *
if MMS prescribes a
different differential * *
* You must pay any
additional royalties owed
* * * plus the late
payment interest from the
original royalty due date,
or you may report a credit
* * *.
----------------------------------------------------------------------------------------------------------------
[[Page 28377]]
206.112(c)(2)...................... 206.112(c)(2) * * * If 330 2 660
quality bank adjustments
do not incorporate or
provide for adjustments
for sulfur content, you
may make sulfur
adjustments, based on the
quality of the
representative crude oil
at the market center, 5.0
cents per one-tenth
percent difference in
sulfur content, unless MMS
approves a higher
adjustment.
----------------------------------------------------------------------------------------------------------------
Sec. 206.114 What are my reporting requirements under an arm's-length transportation contract?
----------------------------------------------------------------------------------------------------------------
206.114............................ 206.114 You or your There are no burden hours to report in this
affiliate must use a ICR. All burden hours associated with Form MMS-
separate entry on Form MMS- 2014 are included in OMB Control Number 1010-
2014 to notify MMS of an 0140 (Form MMS-2014), expires 10/31/2006.
allowance based on
transportation costs you
or your affiliate incur..
----------------------------------------------------------------------------------------------------------------
206.114............................ 206.114 MMS may require you PRODUCE RECORDS--The ORA determined that the
or your affiliate to audit process is not covered by the PRA
submit arm's-length because MMA staff asks non-standard questions
transportation contracts, to resolve exceptions.
production agreements,
operating agreements, and
related documents.
----------------------------------------------------------------------------------------------------------------
Sec. 206.115 What are my reporting requirements under a non-arm's-length transportation arrangement?
----------------------------------------------------------------------------------------------------------------
206.115(a)......................... 206.115(a) You or your There are no burden hours to report in this
affiliate must use a ICR. All burden hours associated with Form MMS-
separate entry on Form MMS- 2014 are included in OMB Control Number 1010-
2014 to notify MMS of an 0140 (Form MMS-2014), expires 10/31/2006.
allowance based on
transportation costs you
or your affiliate incur.
----------------------------------------------------------------------------------------------------------------
206.115(c)......................... 206.115(c) MMS may require PRODUCE RECORDS--The ORA determined that the
you or your affiliates to audit process is not covered by the PRA
submit all data used to because MMS staff asks non-standard questions
calculate the allowance to resolve exceptions.
deduction * * *.
----------------------------------------------------------------------------------------------------------------
Subpart D--Federal Gas
----------------------------------------------------------------------------------------------------------------
Sec. 206.152 Valuation standards--unprocessed gas
----------------------------------------------------------------------------------------------------------------
206.152(b)(1)(i) and (iii)......... 206.152(b)(1)(i) * * * The PRODUCE RECORDS--The ORA determined that the
lessee shall have the audit process is not covered by the PRA
burden of demonstrating because MMS staff asks non-standard questions
that its contracts is to resolve exceptions.
arm's-length * * *.
(iii) * * * When MMS
determines that the value
may be unreasonable, MMS
will notify the lessee and
give the lessee an
opportunity to provide
written information
justifying the lessee's
value.
----------------------------------------------------------------------------------------------------------------
206.152(b)(2)...................... 206.152(b)(2) * * * The 330 1 330
lessee must request a
value determination in
accordance with paragraph
(g) of this section for
gas sold pursuant to a
warranty contract; * * *.
----------------------------------------------------------------------------------------------------------------
206.152(b)(3)...................... 206.152(b)(3) MMS may PRODUCE RECORDS--The ORA determined that the
require a lessee to audit process is not covered by the PRA
certify that its arm's- because MMS staff asks non-standard questions
length contract provisions to resolve exceptions.
include all of the
consideration to be paid
by the buyer, either
directly or indirectly,
for the gas.
----------------------------------------------------------------------------------------------------------------
206.152(e)(1)...................... 206.152(e)(1) Where the There are no burden hours to report in this
value is determined ICR. All burden hours associated with Form MMS-
pursuant to paragraph (c) 2014 are included in OMB Control Number 1010-
of this section, the 0140 (Form MMS-2014), expires 10/31/2006.
lessee shall retain all
data relevant to the
determination of royalty
value * * *.
----------------------------------------------------------------------------------------------------------------
206.152(e)(2)...................... 206.152(e)(2) Any Federal PRODUCE RECORDS--The ORA determined that the
lessee will make available audit process is not covered by the PRA
upon request to the because MMS staff asks non-standard questions
authorized MMS or State to resolve exceptions.
representatives, to the
Office of the Inspector
General of the department
of the Interior, or other
person authorized to
receive such information,
arm's-length sales and
volume data for like-
quality production sold,
purchased or otherwise
obtained by the lessee
from the field or area or
from nearby fields or
areas.
----------------------------------------------------------------------------------------------------------------
[[Page 28378]]
206.152(e)(3)...................... 206.152(e)(3) A lessee 330 21 660
shall notify MMS if it has
determined value pursuant
to paragraph (c)(2) or
(c)(3) of this section * *
*.
----------------------------------------------------------------------------------------------------------------
206.152(g)......................... 206.152(g) The lessee may 330 6 1,980
request a value
determination from MMS. *
* * The lessee shall
submit all available data
relevant to its proposal *
* *.
----------------------------------------------------------------------------------------------------------------
Sec. 206.153 Valuation standards--processed gas.
----------------------------------------------------------------------------------------------------------------
206.153(b)(1)(i) and (iii)......... 206.153(b)(1)(i) * * * The PRODUCE RECORDS--The ORA determined that the
lessee shall have the audit process is not covered by the PRA
burden of demonstrating because MMS staff asks non-standard questions
that its contract is arm's- to resolve exceptions.
length * * *.
(iii) * * * When MMS
determines that the value
may be unreasonable, MMS
will notify the lessee and
give the lessee an
opportunity to provide
written information
justifying the lessee's
value.
----------------------------------------------------------------------------------------------------------------
206.153(b)(2)...................... 206.153(b)(2) * * * The 330 1 330
lessee must request a
value determination in
accordance with paragraph
(g) of this section for
gas sold pursuant to a
warranty contract; * * *.
----------------------------------------------------------------------------------------------------------------
206.153(b)(3)...................... 206.153(b)(3) MMS may PRODUCE RECORDS--The ORA determined that the
require a lessee to audit process is not covered by the PRA
certify that its arm's- because MMS staff asks non-standard questions
length contract provisions to resolve exceptions.
include all of the
consideration to be paid
by the buyer, either
directly or indirectly,
for the residue gas or gas
plant product
----------------------------------------------------------------------------------------------------------------
206.153(e)(1)...................... 206.153(e)(1) Where the There are no burden hours to report in this
value is determined ICR. All burden hours associated with Form MMS-
pursuant to paragraph (c) 2014 are included in OMB Control Number 1010-
of this section, the 0140 (Form MMS-2014), expires 10/31/2006.
lessee shall retain all
data relevant to the
determination of royalty
value * * *.
----------------------------------------------------------------------------------------------------------------
206.153(e)(2)...................... 206.153(e)(2) Any Federal PRODUCE RECORDS--The ORA determined that the
lessee will make available audit process is not covered by the PRA
upon request to the because MMS staff asks non-standard questions
authorized MMS or State to resolve exceptions.
representatives, to the
Office of the Inspector
General of the Department
of the Interior, or other
persons authorized to
receive such information,
arm's-length sales and
volume data for like-
quality residue gas and
gas plant products sold,
purchased or otherwise
obtained by the lessee
from the same processing
plant or from nearby
processing plants.
----------------------------------------------------------------------------------------------------------------
206.153(e)(3)...................... 206.153(e)(2) A lessee 330 2 660
shall notify MMS if it has
determined any value
pursuant to paragraph
(c)(2) or (c)(3) of this
section * * *.
----------------------------------------------------------------------------------------------------------------
206.153(g)......................... 206.153(g) The lessee may 330 4 1,320
request a value
determination from MMS. *
* * The lessee shall
submit all available data
relevant to its proposal *
* *.
----------------------------------------------------------------------------------------------------------------
Sec. 206.154 Determination of quantities and qualities for computing royalties.
----------------------------------------------------------------------------------------------------------------
206.154(c)(4)...................... 206.154(c)(4) * * * A 330 11 330
lessee may request MMS
approval of other methods
for determining the
quantity of residue gas
and gas plant products
allocable to each lease *
* *.
----------------------------------------------------------------------------------------------------------------
Sec. 206.156 Transportation allowances--general.
----------------------------------------------------------------------------------------------------------------
206.156(c)(3)...................... 206.156(c)(3) Upon request 4.25 5 \2\ 21.25
of a lessee, MMS may
approve a transportation
allowance deduction in
excess of the limitation
prescribed by paragraphs
(c)(1) and (c)(2) of this
section. * * * An
application for exception
(using Form MMS-4393,
Request to Exceed
Regulatory Allowance
Limitation) shall contain
all relevant and
supporting documentation
necessary for MMS to make
a determination * * *.
----------------------------------------------------------------------------------------------------------------
[[Page 28379]]
Sec. 206.157 Determination of transportation allowances.
----------------------------------------------------------------------------------------------------------------
206.157(a)(1)(i)................... 206.157(a) Arm's-length PRODUCE RECORDS--The ORA determined that the
transportation contracts. audit process is not covered by the PRA
(1)(i) * * * The lessee because MMS staff asks non-standard questions
shall have the burden of to resolve exceptions.
demonstrating that its
contract is arm's-length *
* *.
----------------------------------------------------------------------------------------------------------------
206.157(a)(1)(i)................... 206.157(a)(1)(i) * * * The There are no burden hours to report in this
lessee must claim a ICR. All burden hours associated with Form MMS-
transportation allowance 2014 are included in OMB Control Number 1010-
by reporting it on a 0140 (Form MMS-2014), expires 10/31/2006.
separate line entry on the
Form MMS-2014.
----------------------------------------------------------------------------------------------------------------
206.157(a)(1)(iii)................. 206.157(a)(1)(iii) * * * PRODUCE RECORDS--The ORA determined that the
When MMS determines that audit process is not covered by the PRA
the value of the because MMS staff asks non-standard questions
transportation may be to resolve exceptions.
unreasonable, MMS will
notify the lessee and give
the lessee an opportunity
to provide written
information justifying the
lessee's transportation
costs
----------------------------------------------------------------------------------------------------------------
206.157(a)(2)(ii).................. 206.157(a)(2)(ii) * * * the 330 1 330
lessee may propose to MMS
a cost allocation method
on the basis of the values
of the products
transported * * *.
----------------------------------------------------------------------------------------------------------------
206.157(a)(3)...................... 206.157(a)(3) If an arm's- 330 1 330
length transportation
contract includes both
gaseous and liquid
products and the
transportation costs
attributable to each
cannot be determined from
the contract, the lessee
shall propose an
allocation procedure to
MMS. * * * The lessee
shall submit all relevant
data to support its
proposal * * *.
206.157(a)(5)...................... 206.157(a)(5) * * * The 100 1 100
transportation factor may
not exceed 50 percent of
the base price of the
product without MMS
approval.
----------------------------------------------------------------------------------------------------------------
206.157(b)(1)...................... 206.157(b) Non-arm's-length There are no burden hours to report in this
or no contract. (1) The ICR. All burden hours associated with Form MMS-
lessee must claim a 2014 are included in OMB Control Number 1010-
transportation allowance 0140 (Form MMS-2014), expires 10/31/2006.
by reporting it on a
separate line entry on the
Form MMS-2014 * * *.
----------------------------------------------------------------------------------------------------------------
206.157(b)(2)(iv).................. 206.157(b)(2)(iv) After a 100 1 100
lessee has elected to use
either method for a
transportation system, the
lessee may not later elect
to change to the other
alternative without
approval of the MMS.
206.157(b)(2)(vi)(A)............... (A) After an election is
made, the lessee may not
change methods without MMS
approval * * *.
206.157(b)(3)(ii).................. 206.157(b)(3)(ii) * * * the 100 1 100
lessee may propose to the
MMS a cost allocation
method on the basis of the
values of the products
transported * * *.
206.157(b)(4)...................... 206.157(b)(4) Where both 100 1 100
gaseous and liquid
products are transported
through the same
transportation system, the
lessee shall propose a
cost allocation procedure
to MMS. * * * The lessee
shall submit all relevant
data to support its
proposal * * *.
206.157(b)(5)...................... 206.157(b)(5) You may apply 100 1 100
for an exception from the
requirement to compute
actua
