Electronic Payment of Fees for Outer Continental Shelf Activities, 72648-72652 [07-6173]

Agencies

• DEPARTMENT OF THE INTERIOR
• Minerals Management Service

[Federal Register Volume 72, Number 245 (Friday, December 21, 2007)]
[Proposed Rules]
[Pages 72648-72652]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 07-6173]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Parts 203, 250, 251, 256, 280, 281, and 290

[Docket ID: MMS-2007-OMM-0065]
RIN 1010-AD43


Electronic Payment of Fees for Outer Continental Shelf Activities

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Proposed rule.

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SUMMARY: The MMS proposes that all lessees, operators, permittees, and 
rights-of-way holders pay all fees for processing plans, applications, 
and permits electronically. The MMS believes this proposed rule would 
aid industry in payment processing, and reduce payment processing 
errors. This proposed rule would improve MMS processing efficiency and 
facilitate the correction of industry payment errors. The MMS would not 
accept checks, money orders, or cashier's checks for payment of fees 
after the effective date of the final rule.

DATES: Submit comments by February 19, 2008. The MMS may not fully 
consider comments received after this date.

ADDRESSES: You may submit comments on the rulemaking by any of the 
following methods. Please use the Regulation Identifier Number (RIN) 
1010-AD43 as an identifier in your message. See also Public 
Availability of Comments under Procedural Matters.
     Federal eRulemaking Portal: https://www.regulations.gov. 
Select ``Minerals Management Service'' from the agency drop-down menu, 
then click ``submit.'' In the Docket ID column, select MMS-2007-OMM-
0065 to submit public comments and to view supporting and related 
materials available for this rulemaking. Information on using 
Regulations.gov, including instructions for accessing documents, 
submitting comments, and viewing the docket after the close of the 
comment period, is available through the site's ``User Tips'' link. All 
comments submitted will be posted to the docket.
     Mail or hand-carry comments to the Department of the 
Interior; Minerals Management Service; Attention: Regulations and 
Standards Branch (RSB); 381 Elden Street, MS-4024, Herndon, Virginia 
20170-4817. Please reference ``Electronic Payment of Fees for Outer 
Continental Shelf Activities, 1010-AD43'' in your comments and include 
your name and return address.

FOR FURTHER INFORMATION CONTACT: Kirk Malstrom, Petroleum Engineer, 
Offshore Minerals Management, Office of Offshore Regulatory Programs at 
(703) 787-1751.

SUPPLEMENTARY INFORMATION:

Background

    This proposed rule would require a lessee, operator, pipeline 
right-of-way (ROW) holder, or permittee to submit payments for cost 
recovery service fees electronically. The idea for paying 
electronically is not a new concept and industry has been informed of 
MMS's intentions to collect fees electronically in the Notice to 
Lessees (NTL) No. 2006-N05 Payment Method for New and Existing Cost 
Recovery Fees. As stated in NTL No. 2006-N05, MMS prefers and strongly 
urges applicants to pay their fees using credit card or Automated 
Clearing House (ACH) payments through the Pay.Gov Web site. Launched in 
October 2000, Pay.Gov is a secure government-wide collection portal, 
developed to meet the U.S. Treasury's commitment to process collections 
electronically using internet technologies. Pay.Gov has been developed 
to help Federal agencies meet the directives outlined in the Government 
Paperwork Elimination

[[Page 72649]]

Act, primarily the reduction of paper transactions through the 
utilization of electronic processing via the Internet. By using an 
electronic payment system, MMS and industry have an efficient method to 
aid in the payment process.
    The MMS has made Pay.Gov available for payment of cost recovery 
fees since early 2006 and accepted electronic Pay.Gov payments for all 
applications since September 2006. To show industry's acceptance of 
electronic payments, currently more than 94 percent of cost recovery 
fees are paid electronically through Pay.Gov. This proposed rule would 
require all fees to be paid electronically. The MMS is aware of a few 
companies not paying electronically, but MMS has determined that the 
costs to use Pay.Gov are negligible compared to that of operating on 
the Outer Continental Shelf (OCS).
    Electronic payment through Pay.Gov is more efficient and less prone 
to mistakes than check payments. Examples of check payment errors 
include incorrect date, incorrect payment amount, check sent to a 
different address than application, and closing an account shortly 
after the check is sent to MMS. Check payment errors can result in 
delay or lead to denial of an application or permit due to non-payment. 
To rectify a check payment error additional time and expense are 
required from industry, MMS, or both. If payment errors are made 
through Pay.Gov, the refund process is easier due to system records and 
controls. With 100% electronic payment, the internal MMS processes to 
secure, verify and deposit check payments can be eliminated.
    The MMS does not believe that this proposed rule would place an 
additional burden on industry. Industry has been advised by NTL No. 
2006-N05 and MMS staff about our future intent to require electronic 
payments. Most companies voluntarily pay electronically and have been 
satisfied with the functionality and performance of the Pay.Gov system. 
For the remaining companies that have opted not to pay electronically, 
the time between the publishing of the proposed and final rule would 
provide sufficient opportunity to implement internal processes to pay 
fees by ACH or credit card.
    The MMS intends to accept only Pay.Gov payments for cost recovery 
service fees. Checks, money orders, and cashier's checks will no longer 
be accepted after the effective date of the final rule. If you process 
your applications through eWell, you are already directed to Pay.Gov in 
order to pay application fees online.
    Since MMS has accepted payments electronically, industry has 
provided verbal feedback to MMS requesting the availability of 
declining deposit accounts. The basic proposal, as an alternative to 
Pay.Gov, would permit a company conducting business on the OCS to 
deposit funds with MMS. The MMS would then draw down those funds as the 
company submits applications requiring fees. The company would be 
notified when its balance reached a trigger level and the company would 
replenish the account. Invoices would periodically be sent to the 
customer.
    The MMS does not have a financial system that can track, invoice, 
and manage declining deposit accounts. The existing bureau financial 
system cannot handle deferred revenue. Since we do not have system 
functionality, the declining deposit accounts would be tracked 
manually. A manual process would increase the cost for processing cost 
recovery payments, increase the potential for errors, and result in 
increased fees charged to industry. Therefore, MMS will not consider 
implementing declining deposit accounts.
    The MMS plans to adjust certain cost recovery fees according to 
inflation in the final rule. These fees have not been updated to 
include inflation since the Cost Recovery Final Rule published on July 
19, 2006 (71 FR 40904).

Procedural Matters

Regulatory Planning and Review (Executive Order (E.O.) 12866)

    This proposed rule is not a significant rule as determined by the 
Office of Management and Budget (OMB) and is not subject to review 
under E.O. 12866.
    (1) This proposed rule would not have an effect of $100 million or 
more on the economy. It would not adversely affect in a material way 
the economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities. This proposed rule would simply require all fees be paid 
electronically through Pay.Gov.
    (2) This proposed rule would not create a serious inconsistency or 
otherwise interfere with an action taken or planned by another agency. 
By requiring electronic payment through the Pay.Gov system, MMS is 
supporting the President's Management Agenda of expanding electronic 
government or ``E-Government.''
    (3) This proposed rule would not alter the budgetary effects of 
entitlements, grants, user fees or loan programs, or the rights or 
obligations of their recipients.
    (4) This proposed rule would not raise novel legal or policy 
issues.

Regulatory Flexibility Act

    The Department of the Interior certifies that this proposed rule 
would not have a significant economic effect on a substantial number of 
small entities under the Regulatory Flexibility Act (5 U.S.C. 601 et 
seq.).
    The changes proposed in the rule would affect lessees, operators of 
leases, pipeline right-of-way (ROW) holders in the OCS, and permittees. 
This could include about 130 active Federal oil and gas lessees, 88 
pipeline ROW holders, and 10 geophysical companies. Small lessees that 
operate under this rule mostly fall under the Small Business 
Administration's (SBA) North American Industry Classification System 
Codes (NAICS) 211111, Crude Petroleum and Natural Gas Extraction and 
213111, Drilling Oil and Gas Wells. For these NAICS code 
classifications, a small company is one with fewer than 500 employees. 
Based on these criteria, an estimated 70 percent of these companies are 
considered small. This rule, therefore, affects a substantial number of 
small entities.
    The changes proposed in the rule would not have a significant 
economic effect on a substantial number of small entities because 
Pay.Gov credit card or ACH payments do not increase the amount of money 
a company would pay in cost recovery fees. We do not expect any company 
to incur significant other costs because no special software or other 
equipment would be required to pay through Pay.Gov or ACH. We have no 
information that any company would incur any costs associated with 
accounting processes, changes in business procedures, or other 
compliance costs.
    Your comments are important. The Small Business and Agriculture 
Regulatory Enforcement Ombudsman and 10 Regional Fairness Boards were 
established to receive comments from small businesses about Federal 
agency enforcement actions. The Ombudsman will annually evaluate the 
enforcement activities and rate each agency's responsiveness to small 
business. If you wish to comment on the actions of MMS, call 1-888-734-
3247. You may comment to the Small Business Administration without fear 
of retaliation. Disciplinary action for retaliation by an MMS employee 
may include suspension or termination from employment with the DOI.

[[Page 72650]]

Small Business Regulatory Enforcement Fairness Act

    The proposed rule is not a major rule under 5 U.S.C. 804(2) of the 
Small Business Regulatory Enforcement Fairness Act. This proposed rule:
    a. Would not have an annual effect on the economy of $100 million 
or more.
    b. Would not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions.
    c. Would not have significant adverse effects on competition, 
employment, investment, productivity, innovation, or the ability of 
U.S.-based enterprises to compete with foreign-based enterprises.

Unfunded Mandates Reform Act

    This proposed rule would not impose an unfunded mandate on State, 
local, or tribal governments or the private sector of more than $100 
million per year. The proposed rule would not have a significant or 
unique effect on State, local, or tribal governments or the private 
sector. A statement containing the information required by the Unfunded 
Mandates Reform Act (2 U.S.C. 1531 et seq.) is not required.

Takings Implication Assessment (E.O. 12630)

    Under the criteria in E.O. 12630, this proposed rule does not have 
significant takings implications. The proposed rule is not a 
governmental action capable of interference with constitutionally 
protected property rights. A takings implication assessment is not 
required.

Federalism (E.O. 13132)

    Under the criteria in E.O. 13132, this proposed rule does not have 
sufficient federalism implications to warrant the preparation of a 
Federalism Assessment. This proposed rule would not substantially and 
directly affect the relationship between the Federal and State 
governments. To the extent that State and local governments have a role 
in OCS activities, this proposed rule would not affect that role. A 
Federalism Assessment is not required.

Civil Justice Reform (E.O. 12988)

    This rule complies with the requirements of E.O. 12988. 
Specifically, this rule:
    (a) Meets the criteria of section 3(a) requiring that all 
regulations be reviewed to eliminate errors and ambiguity, be written 
to minimize litigation, and promote simplification and burden 
reduction; and
    (b) Meets the criteria of section 3(b)(2) requiring that all 
regulations be written in clear language and contain clear legal 
standards.

Consultation With Indian Tribes (E.O. 13175)

    Under the criteria in E.O. 13175, we have evaluated this proposed 
rule and determined that it has no substantial direct effects on 
federally recognized Indian tribes. There are no Indian or tribal lands 
in the OCS.

Paperwork Reduction Act

    The proposed rule contains no new reporting or recordkeeping 
requirements, and an OMB submission under the Paperwork Reduction Act 
(PRA) is not required. The PRA provides that an agency may not conduct 
or sponsor a collection of information unless it displays a currently 
valid OMB control number. Until OMB approves a collection of 
information and assigns a control number, you are not required to 
respond. The proposed regulations will specify that all operators, 
lessees, and ROW holders must now use Pay.Gov for every fee that will 
be submitted to MMS. The proposed revisions in this rulemaking refer 
to, but do not change, information collection requirements in numerous 
current regulations. The OMB approved the referenced information 
collection requirements under OMB Control Numbers 1010-0071, 1010-0114, 
1010-0151, 1010-0141, 1010-0067, 1010-0043, 1010-0059, 1010-0149, 1010-
0050, 1010-0051, 1010-0086, 1010-0142, 1010-0048, 1010-0006, and 1010-
0072, respectively.

National Environmental Policy Act

    This rule does not constitute a major Federal action significantly 
affecting the quality of the human environment. The MMS has analyzed 
this rule under the criteria of the National Environmental Policy Act 
and 516 Departmental Manual 2, Appendix 1.10. and determined that it 
falls within the categorical exclusion for ``regulations * * * that are 
of an administrative, financial, legal, technical, or procedural nature 
and whose environmental effects are too broad, speculative, or 
conjectural to lend themselves to meaningful analysis.'' The MMS 
completed a Categorical Exclusion Review for this action and concluded 
that the rulemaking does not represent an exception to the established 
criteria for categorical exclusion; therefore, preparation of an 
environmental analysis or environmental impact statement will not be 
required.

Data Quality Act

    In developing this rule we did not conduct or use a study, 
experiment, or survey requiring peer review under the Data Quality Act 
(Pub. L. 106-554, app. C Section 515, 114 Stat. 2763, 2763A-153-154).

Effects on the Energy Supply (E.O. 13211)

    This rule is not a significant energy action under the definition 
in E.O. 13211. A Statement of Energy Effects is not required.

Clarity of this Regulation

    We are required by E.O. 12866, E.O. 12988, and by the Presidential 
Memorandum of June 1, 1998, to write all rules in plain language. This 
means that each rule we publish must:
    (a) Be logically organized;
    (b) Use the active voice to address readers directly;
    (c) Use clear language rather than jargon;
    (d) Be divided into short sections and sentences; and
    (e) Use lists and tables wherever possible.
    If you feel that we have not met these requirements, send us 
comments by one of the methods listed in the ADDRESSES section. To 
better help us revise the rule, your comments should be as specific as 
possible. For example, you should tell us the numbers of the sections 
or paragraphs that you find unclear, which sections or sentences are 
too long, the sections where you feel lists or tables would be useful, 
etc.

Public Availability of Comments

    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 review, we cannot guarantee that we will be 
able to do so.

List of Subjects in

30 CFR Part 203

    Continental shelf, Mineral royalties, Oil and gas exploration, 
Public lands--mineral resources.

30 CFR Part 250

    Administrative practice and procedure, Continental shelf, 
Pipelines, Public lands--mineral resources, Public lands--rights-of-
way, Reporting and recordkeeping requirements.

[[Page 72651]]

30 CFR Part 251

    Continental shelf, Public lands--mineral resources, Reporting and 
recordkeeping requirements.

30 CFR Part 256

    Administrative practice and procedure, Public lands--mineral 
resources, Public lands--rights-of-way, Reporting and recordkeeping 
requirements.

30 CFR Part 280

    Public lands--mineral resources, Reporting and recordkeeping 
requirements.

30 CFR Part 281

    Administrative practice and procedure, Mineral royalties, Public 
lands--mineral resources, Reporting and recordkeeping requirements.

30 CFR Part 290

    Administrative practice and procedure.

    Dated: December 10, 2007.
C. Stephen Allred,
Assistant Secretary--Land and Minerals Management.
    For the reasons stated in the preamble, the Minerals Management 
Service (MMS) proposes to amend 30 CFR parts 203, 250, 251, 256, 280, 
281, and 290 as follows:

PART 203--RELIEF OR REDUCTION IN ROYALTY RATES

    1. The authority citation for part 203 is revised to read as 
follows:

    Authority: 25 U.S.C. 396; 25 U.S.C. 2107; 30 U.S.C. 189, 241; 30 
U.S.C. 359; 30 U.S.C. 1023; 30 U.S.C. 1751; 31 U.S.C. 9701; and 43 
U.S.C. 1334.

    2. Section 203.3 is revised to read as follows:


Sec.  203.3  Do I have to pay a fee to request royalty relief?

    When you submit an application or ask for a preview assessment, you 
must include a fee to reimburse us for our costs of processing your 
application or assessment. Federal policy and law require us to recover 
the cost of services that confer special benefits to identifiable non-
Federal recipients. The Independent Offices Appropriation Act (31 
U.S.C. 9701), Office of Management and Budget Circular A'25, and the 
Omnibus Appropriations Bill (Pub. L. 104'134, 110 Stat. 1321, April 26, 
1996) authorize us to collect these fees.
    (a) We will specify the necessary fees for each of the types of 
royalty relief applications and possible MMS audits in a Notice to 
Lessees. We will periodically update the fees to reflect changes in 
costs, as well as provide other information necessary to administer 
royalty relief.
    (b) You must file all payments electronically through the Pay.Gov 
Web site and you must include a copy of the Pay.Gov confirmation 
receipt page with your application or assessment. The Pay.Gov Web site 
may be accessed through links on the MMS Offshore Web site at: https://
www.mms.gov/offshore/ homepage or directly through Pay.Gov at: https://
www.pay.gov/paygov/.

PART 250--OIL AND GAS AND SULPHUR OPERATIONS IN THE OUTER 
CONTINENTAL SHELF

    3. The authority citation for part 250 is revised to read as 
follows:

    Authority: 31 U.S.C. 9701, 43 U.S.C. 1334.

    4. Section 250.126 is revised to read as follows:


Sec.  250.126  Electronic payment instructions.

    You must file all payments electronically through Pay.Gov. This 
includes, but is not limited to, all OCS applications or filing fee 
payments. The Pay.Gov Web site may be accessed through links on the MMS 
Offshore Web site at: https://www.mms.gov/offshore/ homepage or directly 
through Pay.Gov at: https://www.pay.gov/paygov/.
    (a) Payment of fees associated with electronic applications. If you 
submitted an application through eWell, you must use the interactive 
payment feature in that system which directs you through Pay.Gov.
    (b) Payment of fees for applications not submitted electronically. 
For applications not submitted electronically through eWell, you must 
use credit card or automated clearing house (ACH) payments through the 
Pay.Gov Web site and you must include a copy of the Pay.Gov 
confirmation receipt page with your application.
    5. Section 250.160(h) is revised to read as follows:


Sec.  250.160  When will MMS grant me a right-of-use and easement, and 
what requirements must I meet?

* * * * *
    (h) You may make the rental payments required by paragraph (g)(1) 
and (g)(2) of this section on an annual basis, for a 5-year period, or 
for multiples of 5 years. You must make the first payment 
electronically through Pay.Gov and you must include a copy of the 
Pay.Gov confirmation receipt page with your right-of-use and easement 
application. You must make all subsequent payments electronically 
through Pay.Gov before the respective time periods begin.
* * * * *

PART 251--GEOLOGICAL AND GEOPHYSICAL (G&G) EXPLORATIONS OF THE 
OUTER CONTINENTAL SHELF

    6. The authority citation for part 251 is revised to read as 
follows:

    Authority: 31 U.S.C. 9701, 43 U.S.C. 1334.

    7. Section 251.5(a) is revised to read as follows:


Sec.  251.5  Applying for permits or filing Notices.

    (a) Permits. You must submit a signed original and three copies of 
the MMS permit application form (Form MMS--327). The form includes 
names of persons, type, location, purpose, dates of activity, and 
environmental and other information. A nonrefundable service fee of 
$1,900 must be paid electronically through Pay.Gov at: https://
www.pay.gov/paygov/, and you must include a copy of the Pay.Gov 
confirmation receipt page with your application.
* * * * *

PART 256--LEASING OF SULPHUR OR OIL AND GAS IN THE OUTER 
CONTINENTAL SHELF

    8. The authority citation for part 256 is revised to read as 
follows:

    Authority: 31 U.S.C. 9701, 42 U.S.C. 6213, 43 U.S.C. 1334.

    9. Section 256.64(a)(8) is revised to read as follows:


Sec.  256.64  How to file transfers.

* * * * *
    (a) * * *
    (8) You must pay electronically through Pay.Gov at: https://
www.pay.gov/paygov/ the service fee listed in Sec.  256.63 of this 
subpart and you must include a copy of the Pay.Gov confirmation receipt 
page with your application for approval of any instrument of transfer 
you are required to file (Record Title/Operating Rights (Transfer) 
Fee). Where multiple transfers of interest are included in a single 
instrument, a separate fee applies to each individual transfer of 
interest. For any document you are not required to file by these 
regulations but which you submit for record purposes, you must also pay 
electronically through Pay.Gov the service fee listed in Sec.  256.63 
(Non-required Document Filing Fee) per lease affected, and you must 
include a copy of the Pay.Gov confirmation receipt page with your 
document. Such documents may be

[[Page 72652]]

rejected at the discretion of the authorized officer.
* * * * *

PART 280--PROSPECTING FOR MINERALS OTHER THAN OIL, GAS, AND SULPHUR 
ON THE OUTER CONTINENTAL SHELF

    10. The authority citation for part 280 is revised to read as 
follows:

    Authority: 31 U.S.C. 9701, 43 U.S.C. 1334.

    11. Section 280.12(a) is revised to read as follows:


Sec.  280.12  What must I include in my application or notification?

    (a) Permits. You must submit to the Regional Director a signed 
original and three copies of the permit application form (Form MMS-134) 
at least 30 days before the startup date for activities in the permit 
area. If unusual circumstances prevent you from meeting this deadline, 
you must immediately contact the Regional Director to arrange an 
acceptable deadline. The form includes names of persons, type, 
location, purpose, and dates of activity, as well as environmental and 
other information. A nonrefundable service fee of $1,900 must be paid 
electronically through Pay.Gov at: https://www.pay.gov/paygov/, and you 
must include a copy of the Pay.Gov confirmation receipt page with your 
application.
* * * * *

PART 281--LEASING OF MINERALS OTHER THAN OIL, GAS, AND SULPHUR IN 
THE OUTER CONTINENTAL SHELF

    12. The authority citation for part 281 is revised to read as 
follows:

    Authority: 43 U.S.C. 1334.

    13. Section 281.41(a)(2) is revised to read as follows:


Sec.  281.41  Requirements for filing for transfers.

    (a) * * *
    (2) An application for approval of any instrument required to be 
filed shall not be accepted unless a nonrefundable fee of $50 is paid 
electronically through Pay.Gov at: https://www.pay.gov/paygov/ and a 
copy of the Pay.Gov confirmation receipt page is included with your 
application. For any document you are not required to file by these 
regulations but which you submit for record purposes, you must also pay 
electronically through Pay.Gov the service fee listed in Sec.  256.63 
(Non-required Document Filing Fee) per lease affected, and you must 
include a copy of the Pay.Gov confirmation receipt page with your 
document. Such documents may be rejected at the discretion of the 
authorized officer.
* * * * *

PART 290--APPEAL PROCEDURES

    14. The authority citation for part 290 continues to read as 
follows:

    Authority: 5 U.S.C. 301; 25 U.S.C. 396, 2107; 30 U.S.C. 189, 
359, 1023, 1701 et seq., 1751(a); 31 U.S.C. 3716, 9701; and 43 
U.S.C. 1334.

    15. Section 290.4(b) is revised to read as follows:


Sec.  290.4  How do I file an appeal?

* * * * *
    (b) A nonrefundable processing fee of $150.00 paid with the Notice 
of Appeal.
    (1) You must pay electronically through Pay.Gov at: https://
www.pay.gov/paygov/, and you must include a copy of the Pay.Gov 
confirmation receipt page with your Notice of Appeal.
    (2) You cannot extend the 60-day period for payment of the 
processing fee.

[FR Doc. 07-6173 Filed 12-20-07; 8:45 am]
BILLING CODE 4310-MR-P