Agency Information Collection Activities: Submitted for Office of Management and Budget (OMB) Review; Comment Request, 58869-58882 [E7-20424]
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Federal Register / Vol. 72, No. 200 / Wednesday, October 17, 2007 / Notices
Dated: October 10, 2007.
Ron Wenker,
State Director, Nevada.
[FR Doc. E7–20498 Filed 10–16–07; 8:45 am]
BILLING CODE 4310–HC–P
Bureau of Land Management
Public Land Order No. 7681;
Revocation of the Withdrawal
Established by Executive Orders Dated
December 11, 1848 and May 28, 1858;
Withdrawal and Transfer of
Jurisdiction; Wisconsin
Bureau of Land Management,
Interior.
ACTION: Public Land Order.
AGENCY:
SUMMARY: This order revokes two
withdrawals established by Executive
Orders in their entirety as to
approximately 328.70 acres of public
lands withdrawn from surface entry and
reserved for use by the United States
Coast Guard for Plum and Pilot Island
Light Stations in Door County,
Wisconsin. This order also transfers
administrative jurisdiction of the lands
from the United States Coast Guard to
the United States Fish and Wildlife
Service, and withdraws the lands from
surface entry for a period of 50 years for
inclusion in the Green Bay National
Wildlife Refuge.
DATES: Effective Date: October 17, 2007.
FOR FURTHER INFORMATION CONTACT: Ida
Doup, BLM—Eastern States, 7450
Boston Boulevard, Springfield, Virginia
22153, 703–440–1541.
SUPPLEMENTARY INFORMATION: The
reservation is no longer needed by the
United States Coast Guard for
lighthouse purposes. Administrative
jurisdiction is being transferred to the
United States Fish and Wildlife Service
to protect native and migratory bird
habitat and endangered species habitat
within the Great Lakes Basin ecosystem.
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Order
By virtue of the authority vested in
the Secretary of the Interior by Section
204 of the Federal Land Policy and
Management Act of 1976, 43 U.S.C.
1714 (2000), it is ordered as follows:
1. The withdrawals established by
Executive Orders dated December 11,
1848 and May 28, 1858, which
withdrew approximately 328.70 acres of
public lands known as Plum and Pilot
Islands, from surface entry and reserved
them for use by the United States Coast
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DEPARTMENT OF THE INTERIOR
Fourth Principal Meridian
Agency Information Collection
Activities: Submitted for Office of
Management and Budget (OMB)
Review; Comment Request
The areas described aggregate
approximately 328.70 acres in Door County.
2. Subject to valid existing rights, the
lands described in Paragraph 1 are
hereby withdrawn from settlement, sale,
location or entry under the general land
laws, but not the mineral leasing laws,
and administrative jurisdiction is
transferred from the United States Coast
Guard to the United States Fish and
Wildlife Service to be managed as part
of the National Wildlife Refuge System
and shall thereafter be subject to all
laws and regulations applicable to a
wildlife refuge.
3. The United States Coast Guard and
its officers, agents, employees,
contractors, and subcontractors, will
have the unrestricted right of access to
enter the land described in this order for
the purpose of maintaining the aid to
navigation and associated equipment,
making any changes necessary for
navigational purposes, and preserving
an Arc of Visibility. The United States
Fish and Wildlife Service may not
interfere or allow interference with any
navigational aid in use on the land
without written permission from the
United States Coast Guard.
4. The transfer of jurisdiction for the
lands described in this order is subject
to the conditions and limitations of case
closure for Plum and Pilot Islands as
determined by the Wisconsin
Department of Natural Resources in
accordance with Wisconsin
Administrative Code section NR 726.05,
and as specified in the Wisconsin
Department of Natural Resources site
closure letters for Plum Island and Pilot
Island dated August 30, 2006.
5. This withdrawal will expire 50
years from the effective date of this
order unless, pursuant to Section 204(f)
of the Federal Land Policy and
Management Act of 1976, 43 U.S.C.
1714(f) (2000), the Secretary determines
that the withdrawal shall be extended.
Dated: September 28, 2007.
C. Stephen Allred,
Assistant Secretary—Land and Minerals
Management.
[FR Doc. E7–20476 Filed 10–16–07; 8:45 am]
BILLING CODE 4310–55–P
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Minerals Management Service
Minerals Management Service
(MMS), Interior.
ACTION: Notice of a revision of a
currently approved information
collection (OMB Control Number 1010–
0120).
AGENCY:
Pilot Island (3.7 Acres)
T. 33 N., R. 29 E.,
Sec. 1, NE1⁄4NW1⁄4.
[ES–960–1430–ET; WIES–051517, WIES–
011233, WIES–050198]
VerDate Aug<31>2005
Guard for lighthouse purposes, are
hereby revoked in their entirety as to the
following described lands:
Plum Island (325 Acres)
T. 33 N., R. 29 E.,
Sec. 26, lots 1 and 2;
Sec. 27, lots 1, 2, and 3.
DEPARTMENT OF THE INTERIOR
58869
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 parts 202, 206, 210, 212, 217,
and 218. This notice also provides the
public a second opportunity to
comment on the paperwork burden of
these regulatory requirements. We
changed the title of this ICR to reflect
OMB consolidation approval of solid
mineral and geothermal ICRs. Those
ICRs were titled:
• 1010–0074: 30 CFR Part 206—
Product Valuation, Subpart J—Indian
Coal (Forms MMS–4292, Coal Washing
Allowance Report, and MMS–4293,
Coal Transportation Allowance Report);
• 1010–0120: 30 CFR Part 206,
Subpart F—Federal Coal and Subpart
J—Indian Coal; Part 210, Subpart B—
Oil, Gas, and OCS Sulfur—General,
Subpart E—Solid Minerals, General,
Subpart H—Geothermal Resources; Part
218, Subpart B—Oil and Gas, General,
Subpart E—Solid Minerals—General
(Form MMS–4430, Solid Minerals
Production and Royalty Report); and
• 1010–0169: 30 CFR Parts 202, 206,
210, 217, and 218—Valuation of
Geothermal Resources.
The title of this ICR is ‘‘30 CFR 202,
206, 210, 212, 217, and 218—Solid
Minerals and Geothermal Collections.’’
Forms associated with this information
collection are Forms MMS–4430, Solid
Minerals Production and Royalty
Report; MMS–4292, Coal Washing
Allowance Report; and MMS–4293,
Coal Transportation Allowance Report.
DATES: Submit written comments on or
before November 16, 2007.
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 1010–0120).
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Federal Register / Vol. 72, No. 200 / Wednesday, October 17, 2007 / Notices
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.
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SUPPLEMENTARY INFORMATION:
Title: 30 CFR 202, 206, 210, 212, 217,
and 218-Solid Minerals and Geothermal
Collections.
OMB Control Number: 1010–0120.
Bureau Form Number: Forms MMS–
4430, MMS–4292, and MMS–4293.
Abstract: The Secretary of the United
States Department of the Interior
(Secretary) is responsible for matters
relevant to mineral resource
development on Federal and Indian
lands and the Outer Continental Shelf
(OCS). The Secretary, under the Mineral
Leasing Act (30 U.S.C. 1923) and the
Outer Continental Shelf Lands Act (43
U.S.C. 1353), is responsible for
managing the production of minerals
from Federal and Indian lands and the
OCS, collecting royalties from lessees
who produce minerals, and distributing
the funds collected in accordance with
applicable laws. The Secretary also has
a trust responsibility to manage Indian
lands and seek advice and information
from Indian beneficiaries. The MMS
performs the royalty management
functions and assists the Secretary in
carrying out the Department’s trust
responsibility for Indian lands.
Minerals produced from Federal and
Indian leases vary greatly in the nature
of occurrence, production and
processing methods, and markets
served. Also, lease terms, statutory
requirements, and regulations vary
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significantly among the different
minerals.
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
accurately valued and appropriately
paid.
Applicable law citations pertaining to
mineral leases on Federal and Indian
lands include: 25 U.S.C. 396d, Chapter
12—Lease, Sale, or Surrender of
Allotted or Unallotted Lands; 25 U.S.C.
2103, Chapter 23—Development of
Tribal Mineral Resources; 30 U.S.C. 189,
Chapter 3A—Leases and Prospecting
Permits; 30 U.S.C. 359, Chapter 7—
Lease of Mineral Deposits within
Acquired Lands; 30 U.S.C. 1001, 1002,
Chapter 23—Geothermal Steam and
Associated Geothermal Resources; 43
U.S.C. 1334, Chapter 29—Submerged
Lands, Subchapter III—Outer
Continental Shelf Lands Act; Energy
Policy Act of 2005; and Mineral Leasing
Act of 1920.
Applicable Code of Federal
Regulations (CFR) citations include 30
CFR parts 202, subpart H; 206, subparts
F, H, and J; 210, subparts E and H; 212,
subparts E and H; 217, subparts E, F,
and G; and 218, subparts E and F.
The governing citations require the
lessees, operators, or other directly
involved persons to accurately submit
minerals royalty and production data
and provide additional reasonable
information as defined by the Secretary
regarding their production. This ICR
provides for the collection of (1) solid
minerals royalty and production
information on the forms above and on
other associated data formats such as
sales summaries, facility data, sales
contracts and amendments, and
payment information; and (2)
geothermal resources information on
Form MMS–2014 (ICR 1010–0140; OMB
approval expires November 30, 2009).
The information collected (1) enables
MMS to verify that revenue due the
Federal Government is accurately
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reported and correctly paid under
applicable laws, regulations, and lease
terms; and (2) supports the fulfillment
of our trust and financial and
compliance requirements. It also
enables MMS to timely disburse mineral
revenues to the correct recipients. We
encourage electronic submission by way
of e-mail message attachments;
however, hard-copy submissions are
accepted.
Specific lease language varies.
However, respondents agree by the lease
terms to furnish statements providing
the details of all solid minerals and
geothermal operations conducted on a
Federal or Indian lease, including the
quantity and quality of all production
from the lease at such times and in such
form as the Secretary may prescribe.
The MMS, acting for the Secretary,
uses the collected information to
support the Compliance and Asset
Management (CAM) and Financial
Management (FM) processes, and to
assure that royalties are reported timely
and paid appropriately and are based
upon correct product valuation. The
MMS, as well as other Federal
Government, state, and tribal entities,
uses the collected information for audit
purposes and for evaluation of the
reasonableness of product valuation or
of allowance claims submitted by
lessees. The MMS provides the Bureau
of Land Management (BLM) and the
Bureau of Indian Affairs (BIA) access to
this information. The BLM and BIA use
this data to conduct production
verification, ensure lease diligence, and
monitor plant efficiencies, maximum
recovery, and secondary product
inventories. The determination of the
appropriate product value or allowance
rate directly affects the royalties due.
Failure to collect such data would
prevent the Secretary from
accomplishing statutory and trust
responsibilities.
The information we collect under this
ICR is essential for the royalty valuation
process. Not collecting this information
would limit the Secretary’s ability to
discharge fiduciary duties and may also
result in the inability to confirm the
accurate royalty value.
Proprietary information submitted to
MMS under this collection is protected.
No items of a sensitive nature are
collected. The requirement to submit
Form MMS–4430 is mandatory. The
requirement for producers of coal from
Indian leases to submit Forms MMS–
4292 and MMS–4293 is required to
obtain benefits.
Frequency of Response: On occasion,
annually, and/or monthly.
Estimated Number and Description of
Respondents: 161 reporters.
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Federal Register / Vol. 72, No. 200 / Wednesday, October 17, 2007 / Notices
Estimated Annual Reporting and
Recordkeeping ‘‘Hour’’ Burden: 3,670
hours.
We revised this ICR to include
reporting requirements from parts 206
and 212 citations that were overlooked
in the previous renewal. We have
adjusted the burden hours accordingly.
We have not included in our estimates
certain requirements performed in the
normal course of business and
considered usual and customary.
The following chart shows the
estimated burden hours by CFR section
and paragraph:
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS
Citation 30 CFR
Reporting & recordkeeping requirement
Hour burden
Average No.
annual
responses
Annual burden hours
Part 202—Royalties
Subpart H—Geothermal Resources
202.351 ....................
Royalties on geothermal resources. (b)(3) Royalties on byproducts are due
at the time the recovered byproduct is used, sold, or otherwise finally disposed of * * *.
Hour burden covered under OMB Control
Number 1010–0140 (expires November
30, 2009).
202.353 ....................
Measurement standards for reporting and paying royalties and direct use
fees.
(a) For geothermal resources used to generate electricity, you must report
the quantity on which royalty is due on Form MMS–2014 * * *.
(b) For geothermal resources used in direct use processes, you must report
the quantity on which a royalty or direct use fee is due on Form MMS–
2014* * *.
(c) For byproducts, you must report the quantity on which royalty is due on
Form MMS–2014* * *.
(d) For commercially demineralized water, you must report the quantity on
which royalty is due on Form MMS–2014* * *.
Hour burden covered under OMB Control
Number 1010–0140. See § 210.52.
(e) * * * However, you must maintain quality measurements for audit purposes * * *.
AUDIT PROCESS. See Note.
Part 206—Product Valuation
Subpart F—Federal Coal
206.253 (c) ...............
Coal subject to royalties—general provisions ...................................................
Hour burden covered under § 206.254.
(c) * * * The lessee shall maintain accurate records to determine to which
individual Federal lease coal in the waste pit or slurry pond should be allocated.
Quality and quantity measurement standards for reporting and paying royalties.
* * * Coal quantity information shall be reported on appropriate forms required under 30 CFR part 216 and on the Solid Minerals Production and
Royalty Report, Form MMS–4430, as required under 30 CFR part 210.
.4166
206.257 ....................
Valuation standards for ad valorem leases. .....................................................
(b)(1) * * * The lessee shall have the burden of demonstrating that its contract is arm’s-length* * *.
(b)(3) * * * 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 reported coal value.
(b)(4) The 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 coal production.
AUDIT PROCESS. See Note.
(d)(1) Where the value is determined pursuant to paragraph (c) of this section, that value does not require MMS’s prior approval. However, the lessee shall retain all data relevant to the determination of royalty value* * *.
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206.254 ....................
Hour burden covered under § 206.254.
(d)(2) Any Federal lessee will make available upon request to the authorized
MMS or State representatives, to the Inspector General of the Department
of the Interior or other persons authorized to receive such information,
arm’s-length sales value and sales quantity data for like-quality coal sold,
purchased, or otherwise obtained by the lessee from the area.
AUDIT PROCESS. See Note.
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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Hour burden
Average No.
annual
responses
Annual burden hours
(d)(3) A lessee shall notify MMS if it has determined value pursuant to paragraphs (c)(2)(ii), (iii), (iv), or (v) of this section. * * * The letter shall identify the valuation method to be used and contain a brief description of the
procedure to be followed. The notification required by this section is a
one-time notification due no later than the month the lessee first reports
royalties on the Form MMS–4430 * * * and each time there is a
change* * *.
2
1
2
(f) The lessee may request a value determination from MMS. In that event,
the lessee shall propose to MMS a value determination method, and may
use that method in determining value for royalty purposes until MMS
issues its decision. The lessee shall submit all available data relevant to
its proposal.* * *.
5
1
5
(i) * * * Contract revisions or amendments shall be in writing and signed by
all parties to an arm’s-length contract, and may be retroactively applied to
value for royalty purposes for a period not to exceed two years, unless
MMS approves a longer period * * *.
2
1
2
Citation 30 CFR
206.259 ....................
Reporting & recordkeeping requirement
Determination of washing allowances. (a) Arm’s-length contracts. (1) * * *
The lessee shall have the burden of demonstrating that its contract is
arm’s-length* * *.
(a)(1) * * * the washing allowance shall be the reasonable actual costs incurred by the lessee for washing the coal * * * The lessee shall have the
burden of demonstrating that its contract is arm’s-length * * *. The lessee
must claim a washing allowance by reporting it as a separate line entry on
the Form MMS–4430.
(a)(3) * * * When MMS determines that the value of the washing may be
unreasonable, MMS will notify the lessee and give the lessee an opportunity to provide written information justifying the lessee’s washing costs.
AUDIT PROCESS. See Note.
.34
12
4
AUDIT PROCESS. See Note.
(b) Non-arm’s-length or no contract. (1) * * * the washing allowance will be
based upon the lessee’s reasonable actual costs * * *. The lessee must
claim a washing allowance by reporting it as a separate line entry on the
Form MMS–4430 * * *.
.75
48
36
(b) * * * The lessee must claim a washing allowance by reporting it as a
separate line entry on the Form MMS–4430 * * * (2)(iv) A lessee may use
either paragraph (b)(2)(iv)(A) or (B) of this section. After a lessee has
elected to use either method for a wash plant, the lessee may not later
elect to change to the other alternative without approval of the MMS.
1
1
1
(b) * * * The lessee must claim a washing allowance by reporting it as a
separate line entry on the Form MMS–4430 * * * (2)(iv)(A) To compute
depreciation, the lessee may elect to use either a straight-line depreciation
method based on the life of equipment or on the life of the reserves which
the wash plant services, whichever is appropriate, or a unit of production
method. After an election is made, the lessee may not change methods
without MMS approval * * *.
1
1
1
AUDIT PROCESS. See Note.
(c)(2) Non-arm’s-length or no contract. (i) The lessee must notify MMS of an
allowance based on the incurred costs by using a separate line entry on
the Form MMS–4430.
Hour burden hours covered under
§ 210.201.
(c)(2)(iii) Upon request by MMS, the lessee shall submit all data used to prepare the allowance deduction * * *.
AUDIT PROCESS. See Note.
(e) Adjustments * * *. (2) The lessee must submit a corrected Form MMS–
4430 to reflect actual costs, together with any payment, in accordance
with instructions provided by MMS.
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Hour burden covered under § 210.201.
(c)(1)(ii) The MMS may require that a lessee submit arm’s-length washing
contracts, and related documents * * *.
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(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–4430.
Hour burden covered under § 210.201.
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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Citation 30 CFR
Reporting & recordkeeping requirement
Hour burden
206.262 ....................
Determination of transportation allowances ......................................................
(a) Arm’s-length contracts. (1) * * * The lessee shall have the burden of
demonstrating that its contract is arm’s-length * * *.
(a)(1) * * * the transportation allowance shall be the reasonable, actual
costs incurred by the lessee for transporting the coal * * * The lessee
must claim a transportation allowance by reporting it as a separate line
entry on the Form MMS–4430.
(a)(3) * * * 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.
Average No.
annual
responses
Annual burden hours
AUDIT PROCESS. See Note.
.33
240
80
AUDIT PROCESS. See Note.
(b) Non-arm’s-length or no contract—(1) * * * the transportation allowance
will be based upon the lessee’s reasonable actual costs * * *. The lessee
must claim a transportation allowance by reporting it as a separate line
entry on the Form MMS–4430 * * *.
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24
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(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.
1
1
1
(b)(2)(iv)(A) * * * After an election is made, the lessee may not change
methods without MMS approval * * *.
1
1
1
(b)(3) A lessee may apply to MMS for exception from the requirement that it
compute actual costs in accordance with paragraphs (b)(1) and (b)(2) of
this section * * *.
1
1
1
(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–4430.
Hour burden covered under § 210.201.
(c)(1)(ii) The MMS may require that a lessee submit arm’s-length transportation contracts, production agreements, operating agreements, and related documents * * *.
AUDIT PROCESS. See Note.
(c)(2) Non-arm’s-length or no contract—(i) The lessee must notify MMS of
an allowance based on the incurred costs by using a separate line entry
on Form MMS–4430.
Hour burden covered under § 210.201.
(c)(2)(iii) Upon request by MMS, the lessee shall submit all data used to prepare the allowance deduction * * *.
AUDIT PROCESS. See Note.
(e) Adjustments * * *. (2) The lessee must submit a corrected Form MMS–
4430 to reflect actual costs, together with any payments, in accordance
with instructions provided by MMS.
Hour burden covered under § 210.201.
206.264 ....................
In-situ and surface gasification and liquefaction operations .............................
If an ad valorem Federal coal lease is developed by in-situ or surface gasification or liquefaction technology, the lessee shall propose the value of
coal for royalty purposes to MMS. The MMS will review the lessee’s proposal and issue a value determination. The lessee may use its proposed
value until MMS issues a value determination.
1
1
1
206.265 ....................
Value enhancement of marketable coal ...........................................................
If, prior to use, sale, or other disposition, the lessee enhances the value of
coal after the coal has been placed in marketable condition in accordance
with § 206.257(h) of this subpart, the lessee shall notify MMS that such
processing is occurring or will occur.
1
1
1
1
1
1
1
1
1
1
1
1
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Subpart H—Geothermal Resources
206.352 (b)(1) (ii) .....
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How do I calculate the royalty due on geothermal resources used for commercial production or generation of electricity?
(b)(1) For Class I leases, you must determine the royalty on produced geothermal resources * * *.
(ii) A royalty determined by any other reasonable method approved by MMS
under § 206.364 of this subpart.
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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Citation 30 CFR
Reporting & recordkeeping requirement
Hour burden
206.353 ....................
How do I determine transmission deductions?
(c)(2)(i)(A) Such purchase is necessary
(d)(9) Any other directly allocable and attributable operating or maintenance
expense that you can document.
(e) Allowable maintenance expenses include: * * * (4) Other directly allocable and attributable maintenance expenses that you can document.
Average No.
annual
responses
Annual burden hours
AUDIT PROCESS. See Note.
(g) To compute costs associated with capital investment * * * After a lessee
has elected to use either method, the lessee may not later elect to change
to the other alternative without MMS approval.
1
1
1
(h)(1) To compute depreciation, you must use a straight-line depreciation
method * * * You may not depreciate equipment below a reasonable salvage value..
1
1
1
(m)(2) When actual cost information is available, you must amend your prior
Form MMS–2014 reports to reflect actual transmission costs deductions
for each month for which you reported and paid based on estimated transmission costs. You must pay any additional royalties due (together with interest computed under § 218.302). You are entitled to a credit for or refund
of any overpaid royalties.
(n) In conducting reviews and audits, MMS may require you to submit arm’slength transmission contracts, production agreements, operating agreements and related documents and all other data used to calculate the deduction. You must comply with any such requirements within the time
MMS specifies. Recordkeeping requirements are found at part 212 of this
chapter.
206.354 ....................
Hour burden covered under OMB Control
Number 1010–0140.
AUDIT PROCESS. See Note.
How do I determine generating deductions?
(b)(1)(ii) You must redetermine your generating cost rate annually * * * After
you choose a deduction period, you may not later elect to use a different
deduction period without MMS approval.
1
(c)(2)(i) You may include a return on capital * * * if:
(A) The purchase is necessary * * *
(d) Allowable operating expenses include: * * * (9) Any other directly allocable and attributable operating expense * * *
(e) Allowable maintenance expenses include: * * * (4) Other directly allocable and attributable maintenance expenses that you can document
1
1
AUDIT PROCESS. See Note.
(g) * * * After a lessee has elected to use either method, the lessee may
not later elect to change to the other alternative without MMS approval
1
1
1
(h)(1) To compute depreciation, you must use a straight-line depreciation
method based on the life of the geothermal project, usually the term of the
electricity sales contract, or other depreciation period acceptable to MMS.
You may not depreciate equipment below a reasonable salvage value
1
1
1
(m)(2) When actual cost information is available, you must amend your prior
Form MMS–2014 reports to reflect actual generating cost deductions for
each month for which you reported and paid based on estimated generating costs. You must pay any additional royalties due (together with interest computed under § 218.302)* * *
(n) In conducting reviews and audits, MMS may require you to submit arm’slength power plant contracts, production agreements, operating agreements, related documents and all other data used to calculate the deduction. You must comply with any such requirements within the time MMS
specifies. Recordkeeping requirements are found at part 212 of this chapter.
sroberts on PROD1PC70 with NOTICES
206.356 ....................
VerDate Aug<31>2005
Hour burden covered under OMB Control
Number 1010–0140.
AUDIT PROCESS. See Note.
How do I calculate royalty or fees due on geothermal resources I use for direct use purposes?
(a) For Class I leases, you must determine the royalty due on geothermal resources * * *
(1) The weighted average of the gross proceeds established in arm’s-length
contracts for the purchase of significant quantities of geothermal resources
* * * In evaluating the acceptability of arm’s-length contracts * * *
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(a)(2) * * * The efficiency factor of the alternative energy source will be
* * * or * * * proposed by the lessee and approved MMS * * * .
48
2
96
(a)(3) A royalty determined by any other reasonable method approved by
MMS * * *
1
1
1
(b)(3) * * * you must provide MMS data showing the amount of geothermal
production in pounds or gallons of geothermal fluid to input into the fee
schedule * * *
1
1
1
(c) For geothermal resources other than hot water, MMS will determine fees
on a case-by-case basis
1
1
1
206.357 ....................
How do I calculate royalty due on byproducts?
(b)(3) Any other reasonable valuation method approved by MMS
1
1
1
1
1
1
206.358 ....................
What are byproduct transportation allowances?
Citation 30 CFR
Reporting & recordkeeping requirement
Hour burden covered under OMB Control
Number 1010–0140.
(d) Reporting requirements. (1) You must use a discrete field on Form
MMS–2014 to notify MMS of a transportation allowance
(d)(2) In conducting reviews and audits, MMS may require you to submit
arm’s-length transportation contracts * * * You must comply with any such
requirements * * * Recordkeeping requirements are found at part 212 of
this chapter
(e) * * * If, after a review or audit, MMS determines that you have improperly determined a byproduct transportation allowance, you must pay any
additional royalties due (plus interest computed under § 218.302) * * * .
206.359 ....................
AUDIT PROCESS. See Note.
AUDIT PROCESS. See Note.
How do I determine byproduct transportation allowances? ..............................
(a)(1) * * * MMS may require you to determine the byproduct transportation
allowance * * *.
(a)(2) * * * MMS will notify you and give you an opportunity to provide written information justifying your transportation costs * * *.
(c)(2)(i) You may include a return on capital * * * if: (A) The purchase is
necessary * * *.
(d) Allowable operating expenses include: * * * (9) Any other directly allocable and attributable operating expense that you can document * * *.
(e) Allowable maintenance expenses include: * * * (4) Other directly allocable and attributable maintenance expenses that you can document* * *.
AUDIT PROCESS See Note.
(g) To compute costs associated with capital investment * * * the lessee
may not later elect to change to the other alternative without MMS approval.
1
1
1
(h)(1) To compute depreciation, you must use a straight-line depreciation
method based on either the life of the equipment or the life of the geothermal project * * * After you choose the basis for depreciation, you may
not change that basis without MMS approval * * *.
1
1
1
Hour burden covered under OMB Control
Number 1010–0140.
206.360 ....................
sroberts on PROD1PC70 with NOTICES
(l)(2) When actual cost information is available, you must amend your prior
Form MMS–2014 reports to reflect actual byproduct transportation cost deductions * * * You must pay any additional royalties due (together with interest computed under § 218.302) * * *.
What records must I keep to support my calculations of royalty or fees under
this subpart?.
* * * you must retain all data relevant to the determination of the royalty
value or the fee you paid. Recordkeeping requirements are found at part
212 of this chapter.
(a) You must be able to show:
(1) How you calculated * * *
(2) How you complied * * *
(b) Upon request, you must submit all data to MMS* * *
AUDIT PROCESS. See Note.
206.361 ....................
How will MMS determine whether my royalty or direct use fee payments are
correct?.
(a)(1) * * * The MMS may review and audit your data, and MMS will direct
you to use a different measure.
AUDIT PROCESS. See Note.* * *
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Citation 30 CFR
Reporting & recordkeeping requirement
Hour burden
(a)(2) If MMS directs you to use a different royalty value, measure of gross
proceeds, or fee, you must either pay any royalties or fees due (together
with interest computed under § 218.302).
Average No.
annual
responses
Annual burden hours
Hour burden covered under OMB Control
Number 1010–0140.
(b) * * * MMS may require you to increase the gross proceeds to reflect any
additional consideration. * * * MMS may require you to use another valuation method. * * * MMS will notify you to give you an opportunity to provide written information justifying your gross proceeds* * *.
(c) For arm’s-length sales, you have the burden of demonstrating that your
contract is arm’s length.
(d) The MMS may require you to certify that the provisions in your sales
contract include all of the consideration the buyer paid you * * *.
AUDIT PROCESS. See Note.
(f)(2) Contract revisions or amendments you make must be in writing and
signed by all parties to the contract.
206.364 ....................
1
1
1
How do I request a value or gross proceeds determination? ..........................
(a) You may request a value determination from MMS * * * Your request
must:.
(1) Be in writing;* * *.
3
20
60
(c) * * * (2) After the Assistant Secretary issues a determination, you must
make any adjustments in royalty payments that follow from the determination and, if you owe additional royalties, pay the royalties owed together
with late payment interest computed under § 218.302.
(d)(2) If you receive an order requiring you to pay royalty on the same basis
as the determination, you may appeal that order under 30 CFR part 290
subpart B.
206.366 ....................
Hour burden covered under OMB Control
Number 1010–0140.
Hour burden covered under OMB Control
Number 1010–0122.
What is the nominal fee that a State, tribal, or local government lessee must
pay for the use of geothermal resources?
If a State, tribal, or local government lessee uses a geothermal resource
* * * lessee must pay a nominal fee * * *.
Hour burden covered under OMB Control
Number 1010–0140.
Subpart J—Indian Coal
206.452(c) ................
Coal subject to royalties—general provisions ...................................................
Hour burden covered under
§ 206.456(d)(1).
(c) * * * The lessee shall maintain accurate records to determine to which
individual Indian lease coal in the waste pit or slurry pond should be allocated * * *.
206.453 ....................
Quality and quantity measurement standards for reporting and paying royalties.
* * * Coal quantity information shall be reported on appropriate forms required under 30 CFR part 216 and on the Solid Minerals Production and
Royalty Report, Form MMS–4430, as required under 30 CFR part 210.
Hour burden covered under
§ 206.456(d)(1).
206.456 ....................
Valuation standards for ad valorem leases ......................................................
(b)(1) * * * The lessee shall have the burden of demonstrating that its
contract is arm’s-length * * *.
(b)(3) * * * 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 reported coal value.
(b)(4) 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 coal production.
AUDIT PROCESS. See Note.
sroberts on PROD1PC70 with NOTICES
(d)(1) Where the value is determined pursuant to paragraph (c) of this section, that value does not require MMS’ prior approval. However, the lessee
shall retain all data relevant to the determination of royalty value * * *.
(d)(2) An Indian lessee will make available upon request to the authorized
MMS or Indian representatives, or to the Inspector General of the Department of the Interior or other persons authorized to receive such information, arm’s-length sales and sales quantity data for like-quality coal sold,
purchased, or otherwise obtained by the lessee from the area.
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AUDIT PROCESS. See Note.
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(d)(3) A lessee shall notify MMS if it has determined value pursuant to paragraphs (c)(2)(ii), (c)(2)(iii), (c)(2)(iv), or (c)(2)(v) of this section * * * . The
letter shall identify the valuation method to be used and contain a brief description of the procedure to be followed * * *.
1
1
1
(f) The lessee may request a value determination from MMS. In that event,
the lessee shall propose to MMS a value determination method, and may
use that method in determining value for royalty purposes until MMS
issues its decision. The lessee shall submit all available data relevant to
its proposal * * *.
1
1
1
(i) * * * Contract revisions or amendments shall be in writing and signed by
all parties to an arm’s-length contract, and may be retroactively applied to
value for royalty purposes for a period not to exceed two years, unless
MMS approves a longer period * * *.
1
1
1
Citation 30 CFR
Reporting & recordkeeping requirement
206.457(b) ................
Washing allowances—general ..........................................................................
(b) If MMS determines that a lessee has improperly determined a washing
allowance authorized by this section, then the lessee shall be liable for
any additional royalties, plus interest * * *.
206.458 ....................
Hour burden covered under § 218.201(b).
Determination of washing allowances.
(a) Arm’s-length contracts. (1) * * * the washing allowance shall be the
reasonable actual costs incurred by the lessee for washing the coal * * *
However, before any deduction may be taken, the lessee must submit a
completed page one of Form MMS–4292, Coal Washing Allowance Report, in accordance with paragraph (c)(1) of this section. A washing allowance may be claimed retroactively for a period of not more than 3 months
prior to the first day of the month that Form MMS–4292 is filed with MMS,
unless MMS approves a longer period upon a showing of good cause by
the lessee.
2
1
(a)(3) * * * When MMS determines that the value of the washing may be
unreasonable, MMS will notify the lessee and give the lessee an opportunity to provide written information justifying the lessee’s washing costs.
AUDIT PROCESS, see Note.
(b) Non-arm’s-length or no contract. (1) * * * the washing allowance will be
based upon the lessee’s reasonable actual costs * * *. However, before
any estimated or actual deduction may be taken, the lessee must submit a
completed Form MMS–4292 in accordance with paragraph (c)(2) of this
section. A washing allowance may be claimed retroactively for a period of
not more than 3 months prior to the first day of the month that Form
MMS–4292 is filed with MMS, unless MMS approves a longer period upon
a showing of good cause by the lessee * * *.
2
Hour burden covered under
§ 206.458(a)(1).
(b) * * * the lessee must submit a completed Form MMS–4292 * * * (2)(iv)
* * * After a lessee has elected to use either method for a wash plant, the
lessee may not later elect to change to the other alternative without approval of MMS.
1
1
1
(b) * * * the lessee must submit a completed Form MMS–4292 * * *.
(2)(iv)(A) To compute depreciation, the lessee may elect to use either a
straight-line depreciation method based on the life of equipment or on the
life of the reserves which the wash plant services, whichever is appropriate, or a unit of production method. After an election is made, the lessee may not change methods without MMS approval * * *.
1
1
1
sroberts on PROD1PC70 with NOTICES
(c) Reporting requirements. (1) Arm’s-length contracts. (i) With the exception
of those washing allowances specified in paragraphs (c)(1)(v) and
(c)(1)(vi) of this section, the lessee shall submit page one of the initial
Form MMS–4292 prior to, or at the same time, as the washing allowance
determined pursuant to an arm’s-length contract is reported on Form
MMS–4430, Solid Minerals Production and Royalty Report * * *.
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Hour burden covered under
§ 206.458(a)(1).
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Citation 30 CFR
Reporting & recordkeeping requirement
Hour burden
Average No.
annual
responses
Annual burden hours
(c)(1)(iii) After the initial reporting period and for succeeding reporting periods, lessees must submit page one of Form MMS–4292 within 3 months
after the end of the calendar year, or after the applicable contract or rate
terminates or is modified or amended, whichever is earlier, unless MMS
approves a longer period (during which period the lessee shall continue to
use the allowance from the previous reporting period).
(c)(1)(iv) MMS may require that a lessee submit arm’s-length washing contracts and related documents * * *.
AUDIT PROCESS. See Note.
(c)(2) Non-arm’s-length or no contract. (i) With the exception of those washing allowances specified in paragraphs (c)(2)(v) and (c)(2)(vii) of this section, the lessee shall submit an initial Form MMS–4292 prior to, or at the
same time as, the washing allowance determined pursuant to a non-arm’slength contract or no contract situation is reported on Form MMS–4430,
Solid Minerals Production and Royalty Report * * *.
Hour burden covered under
§ 206.458(a)(1).
(c)(2)(iii) For calendar-year reporting periods succeeding the initial reporting
period, the lessee shall submit a completed Form MMS–4292 containing
the actual costs for the previous reporting period. If coal washing is continuing, the lessee shall include on Form MMS–4292 its estimated costs
for the next calendar year * * *. Form MMS–4292 must be received by
MMS within 3 months after the end of the previous reporting period, unless MMS approves a longer period (during which period the lessee shall
continue to use the allowance from the previous reporting period)..
Hour burden covered under
§ 206.458(a)(1).
(c)(2)(vi) Upon request by MMS, the lessee shall submit all data used by the
lessee to prepare its Forms MMS–4292 * * *.
AUDIT PROCESS. See Note.
(c)(4) Washing allowances must be reported as a separate line on the Form
MMS–4430, unless MMS approves a different reporting procedure.
(e) Adjustments * * *. (2) The lessee must submit a corrected Form MMS–
4430 to reflect actual costs, together with any payment, in accordance
with instructions provided by MMS.
Hour burden covered under § 210.201.
206.460(d) ................
Transportation allowances—general .................................................................
(d) If * * * MMS determines that a lessee has improperly determined a
transportation allowance authorized by this section, then the lessee shall
pay any additional royalties, plus interest.
Hour burden covered under § 218.201(b).
206.461 ....................
Determination of transportation allowances ......................................................
(a) Arm’s-length contracts. (1) * * * the transportation allowance shall be the
reasonable, actual costs incurred by the lessee for transporting the coal
* * * However, before any deduction may be taken, the lessee must submit a completed page one of Form MMS–4293, Coal Transportation Allowance Report, in accordance with paragraph (c)(1) of this section. A transportation allowance may be claimed retroactively for a period of not more
than 3 months prior to the first day of the month that Form MMS–4293 is
filed with MMS, unless MMS approves a longer period upon a showing of
good cause by the lessee.
2
1
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(a) Arm’s-length contracts * * *. (3) 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.
(b) Non-arm’s-length or no contract. (1) * * * the transportation allowance
will be based upon the lessee’s reasonable actual costs.
* * * However, before any estimated or actual deduction may be taken, the
lessee must submit a completed Form MMS–4293 in accordance with
paragraph (c)(2) of this section. A transportation allowance may be
claimed retroactively for a period of not more than 3 months prior to the
first day of the month that Form MMS–4293 is filed with MMS, unless
MMS approves a longer period upon a showing of good cause by the lessee * * *.
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AUDIT PROCESS. See Note.
Hour burden covered under
§ 206.461(a)(1).
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(b) * * * the lessee must submit a completed Form MMS–4293 * * * (2)(iv)
* * * After a lessee has elected to use either method for a transportation
system, the lessee may not later elect to change to the other alternative
without approval of MMS.
1
1
1
(b) * * * the lessee must submit a completed Form MMS–4293 * * *
(2)(iv)(A) To compute depreciation, the lessee may elect to use either a
straight-line depreciation method based on the life of equipment or on the
life of the reserves which the transportation system services, whichever is
appropriate, or a unit of production method. After an election is made, the
lessee may not change methods without MMS approval.
1
1
1
(b) * * * the lessee must submit a completed Form MMS–4293 * * * (3) A
lessee may apply to MMS for exception from the requirement that it compute actual costs in accordance with paragraphs (b)(1) and (b)(2) of this
section * * *.
1
1
1
Citation 30 CFR
Reporting & recordkeeping requirement
(c) Reporting requirements. (1) Arm’s-length contracts. (i) With the exception
of those transportation allowances specified in paragraphs (c)(1)(v) and
(c)(1)(vi) of this section, the lessee shall submit page one of the initial
Form MMS–4293 prior to, or at the same time as, the transportation allowance determined pursuant to an arm’s-length contract is reported on Form
MMS–4430, Solid Minerals Production and Royalty Report.
(c)(1)(iii) After the initial reporting period and for succeeding reporting periods, lessees must submit page one of Form MMS–4293 within 3 months
after the end of the calendar year, or after the applicable contract or rate
terminates or is modified or amended, whichever is earlier, unless MMS
approves a longer period (during which period the lessee shall continue to
use the allowance from the previous reporting period). Lessees may request special reporting procedures in unique allowance reporting situations, such as those related to spot sales.
Hour burden covered under
§ 206.461(a)(1).
(c)(1)(iv) MMS may require that a lessee submit arm’s-length transportation
contracts, production agreements, operating agreements, and related documents.
AUDIT PROCESS. See Note.
(c)(2) Non-arm’s-length or no contract. (i) With the exception of those transportation allowances specified in paragraphs (c)(2)(v) and (c)(2)(vii) of this
section, the lessee shall submit an initial Form MMS–4293 prior to, or at
the same time as, the transportation allowance determined pursuant to a
non-arm’s-length contract or no contract situation is reported on Form
MMS–4430, Solid Minerals Production and Royalty Report * * *.
(c)(2)(iii) For calendar-year reporting periods succeeding the initial reporting
period, the lessee shall submit a completed Form MMS–4293 containing
the actual costs for the previous reporting period * * * Form MMS–4293
must be received by MMS within 3 months after the end of the previous
reporting period, unless MMS approves a longer period (during which period the lessee shall continue to use the allowance from the previous reporting period).
Hour burden covered under
§ 206.461(a)(1).
(c)(2)(vi) Upon request by MMS, the lessee shall submit all data used to prepare its Form MMS–4293 * * *.
AUDIT PROCESS. See Note.
(c)(4) Transportation allowances must be reported as a separate line item on
Form MMS–4430, unless MMS approves a different reporting procedure.
(e) Adjustments * * * (2) The lessee must submit a corrected Form MMS–
4430 to reflect actual costs, together with any payment, in accordance
with instructions provided by MMS.
Hour burden covered under § 210.201.
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206.463 ....................
In-situ and surface gasification and liquefaction operations .............................
If an ad valorem Federal coal lease is developed by in-situ or surface gasification or liquefaction technology, the lessee shall propose the value of
coal for royalty purposes to MMS * * *.
1
1
1
206.464 ....................
Value enhancement of marketable coal ...........................................................
1
1
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Citation 30 CFR
Hour burden
Reporting & recordkeeping requirement
Average No.
annual
responses
Annual burden hours
If, prior to use, sale, or other disposition, the lessee enhances the value of
coal after the coal has been placed in marketable condition in accordance
with § 206.456(h) of this subpart, the lessee shall notify MMS that such
processing is occurring or will occur * * *.
Part 210—Forms and Reports
Subpart E—Solid Minerals, General
210.201 (a)(1)
How do I submit Form MMS–4430, Solid Minerals Production and Royalty
Report?
(a) What to submit. (1) You must submit a completed Form MMS–4430 for
* * *.
.75
1,668
1,251
210.202 (a)(1) and
(c)(1)
How do I submit sales summaries?
(a) What to submit. (1) You must submit sales summaries for all coal and
other solid minerals produced from Federal and Indian leases and for any
remote storage site from which you sell Federal or Indian solid minerals
* * *.
(c) How to submit. (1) You should provide the sales summary data via electronic mail where possible. We will provide instructions and the proper
email address for these submissions.
.50
1,140
570
210.203 (a)
How do I submit sales contracts?
(a) What to submit. You must submit sales contracts, agreements, and contract amendments for the sale of all coal and other solid minerals produced from Federal and Indian leases with ad valorem royalty terms.
1
30
30
210.204 (a)(1) ..........
How do I submit facility data? ...........................................................................
(a) What to submit. (1) You must submit facility data if you operate a wash
plant, refining, ore concentration, or other processing facility for any coal,
sodium, potassium, metals, or other solid minerals produced from Federal
or Indian leases with ad valorem royalty terms * * *.
.25
360
90
210.205 ....................
Will I need to submit additional documents or evidence to MMS?
(a) Federal and Indian lease terms allow us to request detailed statements,
documents, or other evidence necessary to verify compliance * * *.
(b) We will request this additional information as we need it * * *
AUDIT PROCESS. See Note.
Subpart H—Geothermal Resources
210.351 ....................
Required recordkeeping
Hour burden covered under OMB Control
Number 1010–0140.
* * * [Geothermal] Records may be maintained on microfilm, microfiche, or
other recorded media that are easily reproducible and readable * * *.
210.352 ....................
Special forms and reports. [geothermal] ...........................................................
The MMS may require submission of additional information on special forms
or reports * * *.
210.353 ....................
Monthly report of sales and royalty. A completed Report of Sales and Royalty Remittance (Form MMS–2014) must be submitted each month once
sales or utilization of [geothermal] production occur * * *.
1
1
1
Hour burden covered under OMB Control
Number 1010–0140.
Part 212—Records and Forms Maintenance
Subpart E—Solid Minerals—General
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212.200 (a) ..............
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Maintenance of and access to records
(a) All records pertaining to Federal and Indian solid minerals leases shall be
maintained by a lessee, operator, revenue payor, or other person for 6
years after the records are generated unless the record holder is notified,
in writing, that records must be maintained for a longer period. When an
audit or investigation is underway, records shall be maintained until the
record holder is released by written notice of the obligation to maintain
records.
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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Citation 30 CFR
Reporting & recordkeeping requirement
Hour burden
Average No.
annual
responses
Annual burden hours
Subpart H—Geothermal Resources
212.351 ....................
Required recordkeeping and reports
(a) Records. Each lessee, operator, revenue payor, or other person shall
make and retain accurate and complete records necessary to demonstrate
that payments of royalties, rentals, and other amounts due under Federal
geothermal leases are in compliance with laws, lease terms, regulations,
and orders. Records covered by this section include those specified by
lease terms, notices, and orders * * *.
Hour burden covered under OMB Control Numbers 1010–0140 (for Form
MMS–2014) and 1010–0139 (for Form
MMS–4054).
(b) Period for keeping records. All records pertaining to Federal geothermal
leases shall be maintained by a lessee, operator, revenue payor, or other
person for 6 years after the records are generated unless the recordholder
is notified in writing, before the expiration of that 6-year period that records
must be maintained for a longer period for purposes of audit or investigation. When an audit or investigation is underway, records shall be maintained until the recordholder is released by written notice of the obligation
to maintain records.
Hour burden covered under OMB Control
Numbers 1010–0140 (for Form MMS–
2014) and 1010–0139 (for Form MMS–
4054).
Part 217—Audits and Inspections
Subpart E—Coal
217.200 ....................
Audits
An audit of the accounts and books of operators/lessees for the purpose of
determining compliance with Federal lease terms relating to Federal royalties may be required * * * The operator/lessee shall furnish, free of
charge, duplicate copies of audit reports that express opinions on such
compliance to the Associate Director for Minerals Revenue Management
* * *.
AUDIT PROCESS. See Note.
Subpart F—Other Solid Minerals
217.250 ....................
Audits
An audit of the lessee’s accounts and books may be made annually * * *
The lessee shall furnish free of cost duplicate copies of such annual or
other audits * * *.
AUDIT PROCESS. See Note
Subpart G—Geothermal Resources
217.300 ....................
Audits or review of records
The Secretary, or his/her authorized representative, will initiate and conduct
audits or reviews relating * * * Audits or reviews will also relate to compliance * * * All audits or reviews will be conducted in accordance with
* * *.
AUDIT PROCESS. See Note.
Part 218—Collection of Royalties, Rentals, Bonuses, and Other Monies
Due the Federal Government and Credits and Incentives Due Lessees
Subpart B—Oil and Gas, General
218.57(a)(2) and
(b)(3)(i).
Providing information and claiming rewards .....................................................
1
1
1
(a) General * * * (2) If a person has any information he or she believes
would be valuable to MMS, that person (‘‘informant’’) should submit the information in writing, in the form of a letter * * *.
(b) Claim for reward * * * (3) To file a claim for reward the informant must:
(i) Notify the Director, MMS * * * that he/she is claiming a reward.
Subpart E—Solid Minerals—General
sroberts on PROD1PC70 with NOTICES
218.201(b) ................
Method of payment ...........................................................................................
You must tender all payments * * * except as follows: * * * (b) For Form
MMS–4430 payments, include both your customer identification and your
customer document identification numbers on your payment document
* * *.
.0055
1,368
8
218.203(b) ................
Recoupment of overpayments on Indian mineral leases .................................
(a) * * * a payor may recoup the overpayment through a recoupment on
Form MMS–4430 against the current month’s royalties * * *.
1
1
1
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58882
Federal Register / Vol. 72, No. 200 / Wednesday, October 17, 2007 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Citation 30 CFR
Reporting & recordkeeping requirement
Hour burden
Average No.
annual
responses
Annual burden hours
(b) With written permission authorized by tribal statute or resolution, a payor
may recoup an overpayment against royalties or other revenues owed in
that month under other leases for which that tribe is the lessor. A copy of
the tribe’s written permission must be furnished to MMS * * * [following]
instructions * * *.
Subpart F—Geothermal Resources
218.300 ....................
Payment of royalties, rentals, and deferred bonuses .......................................
* * * the lessee shall submit all rental and deferred bonus payments when
due and shall pay in value all royalties in the amount determined by MMS
to be due.
Hour burden covered under OMB Control
Number 1010–0140.
218.301 ....................
Method of payment ...........................................................................................
The payor shall tender all payments * * * .......................................................
Hour burden covered under OMB Control
Number 1010–0140.
218.304 ....................
May I credit rental towards direct use fees? .....................................................
* * * You must pay the direct use fees in addition to the annual rental due ..
Hour burden covered under OMB Control
Number 1010–0140.
218.305 ....................
How do I pay advanced royalties I owe under BLM regulations? ....................
If you pay advanced royalties under 43 CFR 3212.15(a)(1) to retain your
lease:
(a) You must pay an advanced royalty monthly equal to the average monthly
royalty you paid under 30 CFR part 206, subpart H * * *.
Hour burden covered under OMB Control
Number 1010–0140.
218.306 ....................
May I receive a credit against production royalties for in-kind deliveries of
electricity I provide under contract to a state or county government?.
(a) You may receive a credit against royalties * * * if: * * * (2) The MMS
approves in advance your contract * * *.
(b) * * * You must pay in money any royalty amount that is not offset by the
credit allowed under this section * * *.
4
1
4
Hour burden covered under OMB Control
Number 1010–0140.
Total Burden .............................................................................................................................................................
9,880
3,670
sroberts on PROD1PC70 with NOTICES
Note: AUDIT PROCESS—The Office of Regulatory Affairs determined that the audit process is exempt from the Paperwork Reduction Act of
1995 because MMS staff asks non-standard questions to resolve exceptions.
Estimated Annual Reporting and
Recordkeeping ‘‘Non-hour Cost’’
Burden: We have identified no ‘‘nonhour cost’’ burden associated with the
collection of information.
Public Disclosure Statement: The PRA
(44 U.S.C. 3501 et seq.) provides that an
agency may not conduct or sponsor, 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)
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19:05 Oct 16, 2007
Jkt 214001
minimize the burden on the
respondents, including the use of
automated collection techniques or
other forms of information technology.
To comply with the public
consultation process, we published a
notice in the Federal Register on March
7, 2007 (72 FR 10244), 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 November 16,
2007.
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
PO 00000
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Fmt 4703
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copies of the comments available for
public review, including names and
addresses of respondents, during regular
business hours at our offices in
Lakewood, Colorado. Before including
your address, phone number, e-mail
address, or other personal identifying
information in your comment, you
should be aware that your entire
comment—including your personal
identifying information—may be made
publicly available at any time. While
you can ask us in your comment to
withhold your personal identifying
information from public view, we
cannot guarantee that we will be able to
do so.
MMS Information Collection
Clearance Officer: Arlene Bajusz (202)
208–7744.
Dated: October 11, 2007.
Richard Adamski,
Acting Associate Director for Minerals
Revenue Management.
[FR Doc. E7–20424 Filed 10–16–07; 8:45 am]
BILLING CODE 4310–MR–P
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]]>Agencies
[Federal Register Volume 72, Number 200 (Wednesday, October 17, 2007)]
[Notices]
[Pages 58869-58882]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-20424]
-----------------------------------------------------------------------
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 1010-0120).
-----------------------------------------------------------------------
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 parts 202, 206, 210, 212,
217, and 218. This notice also provides the public a second opportunity
to comment on the paperwork burden of these regulatory requirements. We
changed the title of this ICR to reflect OMB consolidation approval of
solid mineral and geothermal ICRs. Those ICRs were titled:
1010-0074: 30 CFR Part 206--Product Valuation, Subpart J--
Indian Coal (Forms MMS-4292, Coal Washing Allowance Report, and MMS-
4293, Coal Transportation Allowance Report);
1010-0120: 30 CFR Part 206, Subpart F--Federal Coal and
Subpart J--Indian Coal; Part 210, Subpart B--Oil, Gas, and OCS Sulfur--
General, Subpart E--Solid Minerals, General, Subpart H--Geothermal
Resources; Part 218, Subpart B--Oil and Gas, General, Subpart E--Solid
Minerals--General (Form MMS-4430, Solid Minerals Production and Royalty
Report); and
1010-0169: 30 CFR Parts 202, 206, 210, 217, and 218--
Valuation of Geothermal Resources.
The title of this ICR is ``30 CFR 202, 206, 210, 212, 217, and
218--Solid Minerals and Geothermal Collections.'' Forms associated with
this information collection are Forms MMS-4430, Solid Minerals
Production and Royalty Report; MMS-4292, Coal Washing Allowance Report;
and MMS-4293, Coal Transportation Allowance Report.
DATES: Submit written comments on or before November 16, 2007.
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 1010-0120).
[[Page 58870]]
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.
SUPPLEMENTARY INFORMATION:
Title: 30 CFR 202, 206, 210, 212, 217, and 218-Solid Minerals and
Geothermal Collections.
OMB Control Number: 1010-0120.
Bureau Form Number: Forms MMS-4430, MMS-4292, and MMS-4293.
Abstract: The Secretary of the United States Department of the
Interior (Secretary) is responsible for matters relevant to mineral
resource development on Federal and Indian lands and the Outer
Continental Shelf (OCS). The Secretary, under the Mineral Leasing Act
(30 U.S.C. 1923) and the Outer Continental Shelf Lands Act (43 U.S.C.
1353), is responsible for managing the production of minerals from
Federal and Indian lands and the OCS, collecting royalties from lessees
who produce minerals, and distributing the funds collected in
accordance with applicable laws. The Secretary also has a trust
responsibility to manage Indian lands and seek advice and information
from Indian beneficiaries. The MMS performs the royalty management
functions and assists the Secretary in carrying out the Department's
trust responsibility for Indian lands.
Minerals produced from Federal and Indian leases vary greatly in
the nature of occurrence, production and processing methods, and
markets served. Also, lease terms, statutory requirements, and
regulations vary significantly among the different minerals.
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 accurately valued and
appropriately paid.
Applicable law citations pertaining to mineral leases on Federal
and Indian lands include: 25 U.S.C. 396d, Chapter 12--Lease, Sale, or
Surrender of Allotted or Unallotted Lands; 25 U.S.C. 2103, Chapter 23--
Development of Tribal Mineral Resources; 30 U.S.C. 189, Chapter 3A--
Leases and Prospecting Permits; 30 U.S.C. 359, Chapter 7--Lease of
Mineral Deposits within Acquired Lands; 30 U.S.C. 1001, 1002, Chapter
23--Geothermal Steam and Associated Geothermal Resources; 43 U.S.C.
1334, Chapter 29--Submerged Lands, Subchapter III--Outer Continental
Shelf Lands Act; Energy Policy Act of 2005; and Mineral Leasing Act of
1920.
Applicable Code of Federal Regulations (CFR) citations include 30
CFR parts 202, subpart H; 206, subparts F, H, and J; 210, subparts E
and H; 212, subparts E and H; 217, subparts E, F, and G; and 218,
subparts E and F.
The governing citations require the lessees, operators, or other
directly involved persons to accurately submit minerals royalty and
production data and provide additional reasonable information as
defined by the Secretary regarding their production. This ICR provides
for the collection of (1) solid minerals royalty and production
information on the forms above and on other associated data formats
such as sales summaries, facility data, sales contracts and amendments,
and payment information; and (2) geothermal resources information on
Form MMS-2014 (ICR 1010-0140; OMB approval expires November 30, 2009).
The information collected (1) enables MMS to verify that revenue due
the Federal Government is accurately reported and correctly paid under
applicable laws, regulations, and lease terms; and (2) supports the
fulfillment of our trust and financial and compliance requirements. It
also enables MMS to timely disburse mineral revenues to the correct
recipients. We encourage electronic submission by way of e-mail message
attachments; however, hard-copy submissions are accepted.
Specific lease language varies. However, respondents agree by the
lease terms to furnish statements providing the details of all solid
minerals and geothermal operations conducted on a Federal or Indian
lease, including the quantity and quality of all production from the
lease at such times and in such form as the Secretary may prescribe.
The MMS, acting for the Secretary, uses the collected information
to support the Compliance and Asset Management (CAM) and Financial
Management (FM) processes, and to assure that royalties are reported
timely and paid appropriately and are based upon correct product
valuation. The MMS, as well as other Federal Government, state, and
tribal entities, uses the collected information for audit purposes and
for evaluation of the reasonableness of product valuation or of
allowance claims submitted by lessees. The MMS provides the Bureau of
Land Management (BLM) and the Bureau of Indian Affairs (BIA) access to
this information. The BLM and BIA use this data to conduct production
verification, ensure lease diligence, and monitor plant efficiencies,
maximum recovery, and secondary product inventories. The determination
of the appropriate product value or allowance rate directly affects the
royalties due. Failure to collect such data would prevent the Secretary
from accomplishing statutory and trust responsibilities.
The information we collect under this ICR is essential for the
royalty valuation process. Not collecting this information would limit
the Secretary's ability to discharge fiduciary duties and may also
result in the inability to confirm the accurate royalty value.
Proprietary information submitted to MMS under this collection is
protected. No items of a sensitive nature are collected. The
requirement to submit Form MMS-4430 is mandatory. The requirement for
producers of coal from Indian leases to submit Forms MMS-4292 and MMS-
4293 is required to obtain benefits.
Frequency of Response: On occasion, annually, and/or monthly.
Estimated Number and Description of Respondents: 161 reporters.
[[Page 58871]]
Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 3,670
hours.
We revised this ICR to include reporting requirements from parts
206 and 212 citations that were overlooked in the previous renewal. We
have adjusted the burden hours accordingly. We have not included in our
estimates certain requirements performed in the normal course of
business and considered usual and customary.
The following chart shows the estimated burden hours by CFR section
and paragraph:
Respondents' Estimated Annual Burden Hours
----------------------------------------------------------------------------------------------------------------
Average No. Annual
Citation 30 CFR Reporting & recordkeeping Hour burden annual burden
requirement responses hours
----------------------------------------------------------------------------------------------------------------
Part 202--Royalties
Subpart H--Geothermal Resources
----------------------------------------------------------------------------------------------------------------
202.351.................................. Royalties on geothermal Hour burden covered under OMB Control
resources. (b)(3) Royalties Number 1010-0140 (expires November
on byproducts are due at the 30, 2009).
time the recovered byproduct
is used, sold, or otherwise
finally disposed of * * *.
----------------------------------------------------------------------------------------------------------------
202.353.................................. Measurement standards for Hour burden covered under OMB Control
reporting and paying Number 1010-0140. See Sec. 210.52.
royalties and direct use fees.
(a) For geothermal resources
used to generate electricity,
you must report the quantity
on which royalty is due on
Form MMS-2014 * * *.
(b) For geothermal resources
used in direct use processes,
you must report the quantity
on which a royalty or direct
use fee is due on Form MMS-
2014* * *.
(c) For byproducts, you must
report the quantity on which
royalty is due on Form MMS-
2014* * *.
(d) For commercially
demineralized water, you must
report the quantity on which
royalty is due on Form MMS-
2014* * *.
----------------------------------------------------------------------
(e) * * * However, you must AUDIT PROCESS. See Note.
maintain quality measurements
for audit purposes * * *.
----------------------------------------------------------------------------------------------------------------
Part 206--Product Valuation
Subpart F--Federal Coal
----------------------------------------------------------------------------------------------------------------
206.253 (c).............................. Coal subject to royalties-- Hour burden covered under Sec.
general provisions. 206.254.
----------------------------------------------------------------------------------------------------------------
(c) * * * The lessee shall
maintain accurate records to
determine to which individual
Federal lease coal in the
waste pit or slurry pond
should be allocated.
----------------------------------------------------------------------------------------------------------------
206.254.................................. Quality and quantity .4166 816 340
measurement standards for
reporting and paying
royalties.
* * * Coal quantity
information shall be reported
on appropriate forms required
under 30 CFR part 216 and on
the Solid Minerals Production
and Royalty Report, Form MMS-
4430, as required under 30
CFR part 210.
----------------------------------------------------------------------
206.257.................................. Valuation standards for ad AUDIT PROCESS. See Note.
valorem leases..
(b)(1) * * * The lessee shall
have the burden of
demonstrating that its
contract is arm's-length* * *.
(b)(3) * * * 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
reported coal value.
(b)(4) The 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 coal
production.
----------------------------------------------------------------------
(d)(1) Where the value is Hour burden covered under Sec.
determined pursuant to 206.254.
paragraph (c) of this
section, that value does not
require MMS's prior approval.
However, the lessee shall
retain all data relevant to
the determination of royalty
value* * *.
----------------------------------------------------------------------
(d)(2) Any Federal lessee will AUDIT PROCESS. See Note.
make available upon request
to the authorized MMS or
State representatives, to the
Inspector General of the
Department of the Interior or
other persons authorized to
receive such information,
arm's-length sales value and
sales quantity data for like-
quality coal sold, purchased,
or otherwise obtained by the
lessee from the area.
----------------------------------------------------------------------
[[Page 58872]]
(d)(3) A lessee shall notify 2 1 2
MMS if it has determined
value pursuant to paragraphs
(c)(2)(ii), (iii), (iv), or
(v) of this section. * * *
The letter shall identify the
valuation method to be used
and contain a brief
description of the procedure
to be followed. The
notification required by this
section is a one-time
notification due no later
than the month the lessee
first reports royalties on
the Form MMS-4430 * * * and
each time there is a change*
* *.
----------------------------------------------------------------------
(f) The lessee may request a 5 1 5
value determination from MMS.
In that event, the lessee
shall propose to MMS a value
determination method, and may
use that method in
determining value for royalty
purposes until MMS issues its
decision. The lessee shall
submit all available data
relevant to its proposal.* *
*.
----------------------------------------------------------------------
(i) * * * Contract revisions 2 1 2
or amendments shall be in
writing and signed by all
parties to an arm's-length
contract, and may be
retroactively applied to
value for royalty purposes
for a period not to exceed
two years, unless MMS
approves a longer period * *
*.
----------------------------------------------------------------------------------------------------------------
206.259.................................. Determination of washing AUDIT PROCESS. See Note.
allowances. (a) Arm's-length
contracts. (1) * * * The
lessee shall have the burden
of demonstrating that its
contract is arm's-length* * *.
----------------------------------------------------------------------
(a)(1) * * * the washing .34 12 4
allowance shall be the
reasonable actual costs
incurred by the lessee for
washing the coal * * * The
lessee shall have the burden
of demonstrating that its
contract is arm's-length * *
*. The lessee must claim a
washing allowance by
reporting it as a separate
line entry on the Form MMS-
4430.
----------------------------------------------------------------------
(a)(3) * * * When MMS AUDIT PROCESS. See Note.
determines that the value of
the washing may be
unreasonable, MMS will notify
the lessee and give the
lessee an opportunity to
provide written information
justifying the lessee's
washing costs.
----------------------------------------------------------------------
(b) Non-arm's-length or no .75 48 36
contract. (1) * * * the
washing allowance will be
based upon the lessee's
reasonable actual costs * *
*. The lessee must claim a
washing allowance by
reporting it as a separate
line entry on the Form MMS-
4430 * * *.
----------------------------------------------------------------------
(b) * * * The lessee must 1 1 1
claim a washing allowance by
reporting it as a separate
line entry on the Form MMS-
4430 * * * (2)(iv) A lessee
may use either paragraph
(b)(2)(iv)(A) or (B) of this
section. After a lessee has
elected to use either method
for a wash plant, the lessee
may not later elect to change
to the other alternative
without approval of the MMS.
----------------------------------------------------------------------
(b) * * * The lessee must 1 1 1
claim a washing allowance by
reporting it as a separate
line entry on the Form MMS-
4430 * * * (2)(iv)(A) To
compute depreciation, the
lessee may elect to use
either a straight-line
depreciation method based on
the life of equipment or on
the life of the reserves
which the wash plant
services, whichever is
appropriate, or a unit of
production method. After an
election is made, the lessee
may not change methods
without MMS approval * * *.
----------------------------------------------------------------------
(c) Reporting requirements-- Hour burden covered under Sec.
(1) Arm's-length contracts. 210.201.
(i) The lessee must notify
MMS of an allowance based on
incurred costs by using a
separate line entry on the
Form MMS-4430.
----------------------------------------------------------------------
(c)(1)(ii) The MMS may require AUDIT PROCESS. See Note.
that a lessee submit arm's-
length washing contracts, and
related documents * * *.
----------------------------------------------------------------------
(c)(2) Non-arm's-length or no Hour burden hours covered under Sec.
contract. (i) The lessee must 210.201.
notify MMS of an allowance
based on the incurred costs
by using a separate line
entry on the Form MMS-4430.
----------------------------------------------------------------------
(c)(2)(iii) Upon request by AUDIT PROCESS. See Note.
MMS, the lessee shall submit
all data used to prepare the
allowance deduction * * *.
----------------------------------------------------------------------
(e) Adjustments * * *. (2) The Hour burden covered under Sec.
lessee must submit a 210.201.
corrected Form MMS-4430 to
reflect actual costs,
together with any payment, in
accordance with instructions
provided by MMS.
----------------------------------------------------------------------
[[Page 58873]]
206.262.................................. Determination of AUDIT PROCESS. See Note.
transportation allowances.
(a) Arm's-length contracts.
(1) * * * The lessee shall
have the burden of
demonstrating that its
contract is arm's-length * *
*.
----------------------------------------------------------------------
(a)(1) * * * the .33 240 80
transportation allowance
shall be the reasonable,
actual costs incurred by the
lessee for transporting the
coal * * * The lessee must
claim a transportation
allowance by reporting it as
a separate line entry on the
Form MMS-4430.
----------------------------------------------------------------------
(a)(3) * * * When MMS AUDIT PROCESS. See Note.
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.
----------------------------------------------------------------------
(b) Non-arm's-length or no .75 24 18
contract--(1) * * * the
transportation allowance will
be based upon the lessee's
reasonable actual costs * *
*. The lessee must claim a
transportation allowance by
reporting it as a separate
line entry on the Form MMS-
4430 * * *.
----------------------------------------------------------------------
(b)(2)(iv) * * * After a 1 1 1
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.
----------------------------------------------------------------------
(b)(2)(iv)(A) * * * After an 1 1 1
election is made, the lessee
may not change methods
without MMS approval * * *.
----------------------------------------------------------------------
(b)(3) A lessee may apply to 1 1 1
MMS for exception from the
requirement that it compute
actual costs in accordance
with paragraphs (b)(1) and
(b)(2) of this section * * *.
----------------------------------------------------------------------
(c) Reporting requirements-- Hour burden covered under Sec.
(1) Arm's-length contracts. 210.201.
(i) The lessee must notify
MMS of an allowance based on
incurred costs by using a
separate line entry on the
Form MMS-4430.
----------------------------------------------------------------------
(c)(1)(ii) The MMS may require AUDIT PROCESS. See Note.
that a lessee submit arm's-
length transportation
contracts, production
agreements, operating
agreements, and related
documents * * *.
----------------------------------------------------------------------
(c)(2) Non-arm's-length or no Hour burden covered under Sec.
contract--(i) The lessee must 210.201.
notify MMS of an allowance
based on the incurred costs
by using a separate line
entry on Form MMS-4430.
----------------------------------------------------------------------
(c)(2)(iii) Upon request by AUDIT PROCESS. See Note.
MMS, the lessee shall submit
all data used to prepare the
allowance deduction * * *.
----------------------------------------------------------------------
(e) Adjustments * * *. (2) The Hour burden covered under Sec.
lessee must submit a 210.201.
corrected Form MMS-4430 to
reflect actual costs,
together with any payments,
in accordance with
instructions provided by MMS.
----------------------------------------------------------------------------------------------------------------
206.264.................................. In-situ and surface 1 1 1
gasification and liquefaction
operations.
If an ad valorem Federal coal ........... ........... ...........
lease is developed by in-situ
or surface gasification or
liquefaction technology, the
lessee shall propose the
value of coal for royalty
purposes to MMS. The MMS will
review the lessee's proposal
and issue a value
determination. The lessee may
use its proposed value until
MMS issues a value
determination.
----------------------------------------------------------------------
206.265.................................. Value enhancement of 1 1 1
marketable coal.
If, prior to use, sale, or 1 1 1
other disposition, the lessee
enhances the value of coal
after the coal has been
placed in marketable
condition in accordance with
Sec. 206.257(h) of this
subpart, the lessee shall
notify MMS that such
processing is occurring or
will occur.
----------------------------------------------------------------------------------------------------------------
Subpart H--Geothermal Resources
----------------------------------------------------------------------------------------------------------------
206.352 (b)(1) (ii)...................... How do I calculate the royalty 1 1 1
due on geothermal resources
used for commercial
production or generation of
electricity?
(b)(1) For Class I leases, you ........... ........... ...........
must determine the royalty on
produced geothermal resources
* * *.
(ii) A royalty determined by 1 1 1
any other reasonable method
approved by MMS under Sec.
206.364 of this subpart.
----------------------------------------------------------------------------------------------------------------
[[Page 58874]]
206.353.................................. How do I determine AUDIT PROCESS. See Note.
transmission deductions?
(c)(2)(i)(A) Such purchase is
necessary
(d)(9) Any other directly
allocable and attributable
operating or maintenance
expense that you can document.
(e) Allowable maintenance
expenses include: * * * (4)
Other directly allocable and
attributable maintenance
expenses that you can
document.
----------------------------------------------------------------------
(g) To compute costs 1 1 1
associated with capital
investment * * * After a
lessee has elected to use
either method, the lessee may
not later elect to change to
the other alternative without
MMS approval.
----------------------------------------------------------------------
(h)(1) To compute 1 1 1
depreciation, you must use a
straight-line depreciation
method * * * You may not
depreciate equipment below a
reasonable salvage value..
----------------------------------------------------------------------
(m)(2) When actual cost Hour burden covered under OMB Control
information is available, you Number 1010-0140.
must amend your prior Form
MMS-2014 reports to reflect
actual transmission costs
deductions for each month for
which you reported and paid
based on estimated
transmission costs. You must
pay any additional royalties
due (together with interest
computed under Sec.
218.302). You are entitled to
a credit for or refund of any
overpaid royalties.
----------------------------------------------------------------------
(n) In conducting reviews and AUDIT PROCESS. See Note.
audits, MMS may require you
to submit arm's-length
transmission contracts,
production agreements,
operating agreements and
related documents and all
other data used to calculate
the deduction. You must
comply with any such
requirements within the time
MMS specifies. Recordkeeping
requirements are found at
part 212 of this chapter.
----------------------------------------------------------------------------------------------------------------
206.354.................................. How do I determine generating 1 1 1
deductions?
(b)(1)(ii) You must ........... ........... ...........
redetermine your generating
cost rate annually * * *
After you choose a deduction
period, you may not later
elect to use a different
deduction period without MMS
approval.
----------------------------------------------------------------------
(c)(2)(i) You may include a AUDIT PROCESS. See Note.
return on capital * * * if:
(A) The purchase is necessary
* * *
(d) Allowable operating
expenses include: * * * (9)
Any other directly allocable
and attributable operating
expense * * *
(e) Allowable maintenance
expenses include: * * * (4)
Other directly allocable and
attributable maintenance
expenses that you can
document
----------------------------------------------------------------------
(g) * * * After a lessee has 1 1 1
elected to use either method,
the lessee may not later
elect to change to the other
alternative without MMS
approval
----------------------------------------------------------------------
(h)(1) To compute 1 1 1
depreciation, you must use a
straight-line depreciation
method based on the life of
the geothermal project,
usually the term of the
electricity sales contract,
or other depreciation period
acceptable to MMS. You may
not depreciate equipment
below a reasonable salvage
value
----------------------------------------------------------------------
(m)(2) When actual cost Hour burden covered under OMB Control
information is available, you Number 1010-0140.
must amend your prior Form
MMS-2014 reports to reflect
actual generating cost
deductions for each month for
which you reported and paid
based on estimated generating
costs. You must pay any
additional royalties due
(together with interest
computed under Sec.
218.302)* * *
----------------------------------------------------------------------
(n) In conducting reviews and AUDIT PROCESS. See Note.
audits, MMS may require you
to submit arm's-length power
plant contracts, production
agreements, operating
agreements, related documents
and all other data used to
calculate the deduction. You
must comply with any such
requirements within the time
MMS specifies. Recordkeeping
requirements are found at
part 212 of this chapter.
----------------------------------------------------------------------------------------------------------------
206.356.................................. How do I calculate royalty or 1 1 1
fees due on geothermal
resources I use for direct
use purposes?
(a) For Class I leases, you
must determine the royalty
due on geothermal resources *
* *
(1) The weighted average of
the gross proceeds
established in arm's-length
contracts for the purchase of
significant quantities of
geothermal resources * * * In
evaluating the acceptability
of arm's-length contracts * *
*
[[Page 58875]]
(a)(2) * * * The efficiency 48 2 96
factor of the alternative
energy source will be * * *
or * * * proposed by the
lessee and approved MMS * * *
.
----------------------------------------------------------------------
(a)(3) A royalty determined by 1 1 1
any other reasonable method
approved by MMS * * *
----------------------------------------------------------------------
(b)(3) * * * you must provide 1 1 1
MMS data showing the amount
of geothermal production in
pounds or gallons of
geothermal fluid to input
into the fee schedule * * *
----------------------------------------------------------------------
(c) For geothermal resources 1 1 1
other than hot water, MMS
will determine fees on a case-
by-case basis
----------------------------------------------------------------------
206.357.................................. How do I calculate royalty due 1 1 1
on byproducts?
(b)(3) Any other reasonable 1 1 1
valuation method approved by
MMS
----------------------------------------------------------------------
206.358.................................. What are byproduct Hour burden covered under OMB Control
transportation allowances? Number 1010-0140.
(d) Reporting requirements.
(1) You must use a discrete
field on Form MMS-2014 to
notify MMS of a
transportation allowance
----------------------------------------------------------------------
(d)(2) In conducting reviews AUDIT PROCESS. See Note.
and audits, MMS may require
you to submit arm's-length
transportation contracts * *
* You must comply with any
such requirements * * *
Recordkeeping requirements
are found at part 212 of this
chapter
----------------------------------------------------------------------
(e) * * * If, after a review AUDIT PROCESS. See Note.
or audit, MMS determines that
you have improperly
determined a byproduct
transportation allowance, you
must pay any additional
royalties due (plus interest
computed under Sec.
218.302) * * * .
----------------------------------------------------------------------------------------------------------------
206.359.................................. How do I determine byproduct AUDIT PROCESS See Note.
transportation allowances?.
(a)(1) * * * MMS may require
you to determine the
byproduct transportation
allowance * * *.
(a)(2) * * * MMS will notify
you and give you an
opportunity to provide
written information
justifying your
transportation costs * * *.
(c)(2)(i) You may include a
return on capital * * * if:
(A) The purchase is necessary
* * *.
(d) Allowable operating
expenses include: * * * (9)
Any other directly allocable
and attributable operating
expense that you can document
* * *.
(e) Allowable maintenance
expenses include: * * * (4)
Other directly allocable and
attributable maintenance
expenses that you can
document* * *.
----------------------------------------------------------------------
(g) To compute costs 1 1 1
associated with capital
investment * * * the lessee
may not later elect to change
to the other alternative
without MMS approval.
----------------------------------------------------------------------
(h)(1) To compute 1 1 1
depreciation, you must use a
straight-line depreciation
method based on either the
life of the equipment or the
life of the geothermal
project * * * After you
choose the basis for
depreciation, you may not
change that basis without MMS
approval * * *.
----------------------------------------------------------------------
(l)(2) When actual cost Hour burden covered under OMB Control
information is available, you Number 1010-0140.
must amend your prior Form
MMS-2014 reports to reflect
actual byproduct
transportation cost
deductions * * * You must pay
any additional royalties due
(together with interest
computed under Sec.
218.302) * * *.
----------------------------------------------------------------------------------------------------------------
206.360.................................. What records must I keep to AUDIT PROCESS. See Note.
support my calculations of
royalty or fees under this
subpart?.
* * * you must retain all data
relevant to the determination
of the royalty value or the
fee you paid. Recordkeeping
requirements are found at
part 212 of this chapter.
(a) You must be able to show:.
(1) How you calculated * * *..
(2) How you complied * * *....
(b) Upon request, you must
submit all data to MMS* * *.
---
