Agency Information Collection Activities: Proposed Collection, Comment Request, 19241-19246 [E8-7448]
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Federal Register / Vol. 73, No. 69 / Wednesday, April 9, 2008 / Notices
IV. Request for Comments
The Bureau of Indian Affairs requests
your comments on this collection
concerning: (a) The necessity of this
information collection for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
of the burden (hours and cost) of the
collection of information, including the
validity of the methodology and
assumptions used; (c) ways we could
enhance the quality, utility and clarity
of the information to be collected; and
(d) ways we could minimize the burden
of the collection of the information on
the respondents, such as through the
use of automated collection techniques
or other forms of information
technology.
Please note that an agency may not
sponsor or request, and an individual
need not respond to, a collection of
information unless it has a valid OMB
Control Number. The OMB Control
Number for this collection is 1076–
0094.
Please note that all comments
received will be available for public
review 2 weeks after comment period
closes. Before including your address,
phone number, e-mail address or other
personally identifiable information, be
advised that your entire comment—
including your personally identifiable
information—may be made public at
any time. While you may request that
we withhold your personally
identifiable information, we cannot
guarantee that we will be able to do so.
We do not consider anonymous
comments. All comments from
representatives of businesses or
organizations will be made public in
their entirety. We may withhold
comments from review for other
reasons.
OMB Control Number: 1076–0094.
Type of review: Renewal.
Title: Title 25 CFR 11, Subpart F, Law
& Order on Indian Reservations.
Brief Description of collection: This
collection is required to obtain a benefit,
namely either a marriage license or a
dissolution of marriage. Details of
information are contained in Section III
Information Collected.
Respondents: Persons who reside on
land under the jurisdiction of a Court of
Indian Offenses.
Number of Respondents: 260.
Estimated Time per Response: 15
minutes.
Frequency of Response: On occasion.
Total Annual Burden to Respondents:
65 hours.
Total Annual Cost to Respondents:
Negligible.
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Dated: March 28, 2008.
Carl J. Artman,
Assistant Secretary—Indian Affairs.
[FR Doc. E8–7413 Filed 4–8–08; 8:45 am]
BILLING CODE 4310–4J–P
DEPARTMENT OF THE INTERIOR
Minerals Management Service
[Docket No. MMS–2008–MRM–0010]
Agency Information Collection
Activities: Proposed Collection,
Comment Request
Minerals Management Service
(MMS), Interior.
ACTION: Notice of a revision of a
currently approved information
collection (OMB Control Number 1010–
0119).
AGENCY:
SUMMARY: To comply with the
Paperwork Reduction Act of 1995
(PRA), we are inviting comments on a
collection of information that we will
submit to the Office of Management and
Budget (OMB) for review and approval.
The previous title of this information
collection request (ICR) was ‘‘30 CFR
Part 208—Sale of Federal Royalty Oil;
Sale of Federal Royalty Gas; and
Commercial Contracts (Forms MMS–
4070, Application for the Purchase of
Royalty Oil; MMS–4071, Letter of
Credit; and MMS–4072, Royalty-in-Kind
Contract Surety Bond).’’ The new title of
this ICR is ‘‘30 CFR Part 208, RIK Oil
and Gas.’’
DATES: Submit written comments on or
before June 9, 2008.
ADDRESSES: You may submit comments
by the following methods:
• Electronically go to https://
www.regulations.gov. In the ‘‘Comment
or Submission’’ column, enter ‘‘MMS–
2008–MRM–0010’’ to view supporting
and related materials for this ICR. Click
on ‘‘Send a comment or submission’’
link to submit public comments.
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 comments to Armand
Southall, Regulatory Specialist,
Minerals Management Service, Minerals
Revenue Management, P.O. Box 25165,
MS 302B2, Denver, Colorado 80225.
Please reference ICR 1010–0119 in your
comments.
• Hand-carry comments or use an
overnight courier service. Our courier
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19241
address is Building 85, Room A–614,
Denver Federal Center, West 6th Ave.
and Kipling Blvd., Denver, Colorado
80225. Please reference ICR 1010–0119
in your comments.
FOR FURTHER INFORMATION CONTACT:
Armand Southall, telephone (303) 231–
3221, or e-mail
armand.southall@mms.gov. You may
also contact Armand Southall to obtain
copies, at no cost, of (1) The ICR, (2) any
associated forms, and (3) the regulations
that require the subject collection of
information.
SUPPLEMENTARY INFORMATION:
Title: 30 CFR Part 208, RIK Oil and
Gas.
OMB Control Number: 1010–0119.
Bureau Form Number: Forms MMS–
4070, MMS–4071, and MMS–4072.
Abstract: The Secretary of the U.S.
Department of the Interior is responsible
for matters relevant to mineral resource
development on Federal and Indian
lands and the Outer Continental Shelf
(OCS). The Secretary, under the Mineral
Leasing Act of 1920 (30 U.S.C. 1923),
the Indian Mineral Development Act of
1982 (25 U.S.C. 2103), 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 and other mineral
revenues from lessees who produce
minerals, and distributing the funds
collected in accordance with applicable
laws. The MMS performs the mineral
revenue management functions for the
Secretary.
Public laws pertaining to mineral
revenues are on our Web site at https://
www.mrm.mms.gov/Laws_R_D/
PublicLawsAMR.htm. These public laws
and 30 CFR part 208, as well as specific
language in the actual lease documents,
authorize the Secretary to sell royalty oil
and gas accruing to the United States.
The standard lease terms state that
royalties are due in amount or in value.
In addition, these citations authorize the
Secretary to prescribe proper rules and
regulations and to do any and all things
necessary to accomplish the purpose of
applicable laws. The MMS directs
communications between MMS
operators and RIK purchasers through
commercial contracts, situation-specific
‘‘Dear Operator’’ letters, or, in the case
of eligible refiners, through regulations
at 30 CFR part 208.
General Information
The MMS is responsible for ensuring
that all revenues from Federal and
Indian mineral leases are accurately
collected and accounted for and
appropriately disbursed to recipients.
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Historically, most of these revenues
have been received in the form of cash
royalty payments, i.e., royalty in-value
payments. These payments are paid by
mineral development interests.
Beginning in the late nineties, MMS
conducted pilots to test the approach of
taking RIK.
The Federal Government’s MMS RIK
pilot program became a permanent
operational program after several years
of pilot project testing. The MMS RIK
operational program takes payment from
mineral lessees ‘‘in kind’’ in the form of
produced crude oil and natural gas
volumes, rather than in cash payments.
The lessee transfers the title of the crude
oil or natural gas to the Federal
Government, and MMS sells the
received product (crude oil or natural
gas) to agents in the marketplace and
disburses revenues as prescribed by law.
The MMS sells some product
competitively in the unrestricted
marketplace, and the other RIK product
MMS sells competitively to eligible
refiners (a small and independent
refiner, as defined in 30 CFR 208.2).
Additionally, when directed, MMS
delivers the RIK product to other
Federal agencies, as has been the case
during the fill of the Strategic Petroleum
Reserve (SPR), directed by the President
in 2007, with scheduled completion
upon reaching a capacity of 727 million
barrels. Specifically, within the MMS
RIK operational program, MMS
conducts the eligible small refiner, SPR,
offshore, and Wyoming natural gas
programs.
Recently, MMS consolidated and
revised existing procedures and policies
guiding the sale of onshore and offshore
royalty crude oil and natural gas (1) To
establish uniformity within the
regulatory and operational framework;
(2) to provide industry with a more
efficient and responsive MMS RIK
operational program; and (3) to improve
the Federal Government’s
administration of this program. For
example, several of the reporting
requirements for eligible refiners under
30 CFR part 208 have been combined
with reporting requirements for other
RIK purchasers. However, due to the
unique nature of the sale of crude oil to
eligible refiners, certain requirements
pertain only to that eligible refiner
program.
Eligible Refiner Information—
Determination of Need
As stated earlier, royalties may be
paid ‘‘in value’’ or ‘‘in kind.’’ The
regulations at 30 CFR part 208, Sale of
Federal Royalty Oil, govern the RIK
program of Federal oil for eligible
refiners. Under § 208.4(a) and (b), MMS,
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on behalf of the Secretary, performs a
Determination of Need prior to issuing
a Notice of Availability of Royalty Oil
for sale. The MMS uses the feedback
from the Determination of Need
respondents (eligible refiners or other
interested parties, i.e., lessees,
operators) to assess current marketplace
conditions. If MMS determines the
program should continue, MMS may
dispose of any royalty oil taken in kind
by conducting a sale of such oil, through
an allocation process, to eligible
refiners. The most recent Determination
of Need assessment, requesting specific
information from interested parties, was
published in the Federal Register on
January 16, 2008.
In order to qualify for RIK sales,
eligible refiners must prequalify by (1)
signing the MMS base contract, ‘‘RIK
Crude Oil General Terms and
Conditions,’’ which is located at https://
www.mrm.mms.gov/rikweb/PDFDocs/
gtcexh.pdf, and (2) providing detailed
financial information. Upon
prequalification, MMS will issue an
amount of unsecured credit, based on
the creditability of the offeror.
Notice of Availability of Royalty Oil—
Federal Register Notice
Under § 208.5, if MMS finds from the
Determination of Need process that the
program should continue, MMS would
then publish a Notice of Availability of
Royalty Oil for sale in the Federal
Register and other printed media, when
appropriate. This notice advises
industry of a forthcoming RIK crude oil
sale for eligible refiners and includes
administrative details concerning the
application, the allocation process, and
the contract award process for the
royalty oil. It also details specific
information about the crude oil types
offered for sale and the location of
delivery points.
Under § 208.10(e), eligible refiners
who purchase royalty oil cannot
transfer, assign, or sell their rights or
interest in a royalty oil contract without
written approval of the MMS Director.
This provision is intended to ensure
that only qualified eligible refiners
benefit from these sales of royalty oil.
Form MMS–4070—Application for the
Purchase of Royalty Oil
Under § 208.6, eligible refiners
interested in purchasing royalty oil
must submit Form MMS–4070, which is
located at https://www.mrm.mms.gov/
ReportingServices/PDFDocs/4070.pdf.
This form serves as certification that the
company qualifies under the Small
Refiner Program as defined under
§ 208.2. On Form MMS–4070, MMS
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requests specific information, i.e., the
location of their refinery; number of
persons employed by the refinery; type
of crude desired (e.g., Light Louisiana
Sweet); the specific area in which the
applicant is interested and
documentation supporting an
established history in the requested
area; and the percentage of total refining
capacity attributable to Federal oil
versus other sources.
The Federal Government’s
administration of the eligible refiner
program is aided significantly by the
collection of information requested on
Form MMS–4070. The MMS uses the
information collected to determine the
eligibility of refiners wanting to enter
into contracts to purchase royalty oil
and to provide a basis for the allocation
of available royalty oil among eligible
refiners, when necessary; that is, they
meet the small refiner eligibility
requirements issued by the Small
Business Administration, as explained
under § 208.6.
Directed Communications by Operators
of Federal Oil and Gas Leases
Collection of RIK crude oil and
natural gas for eligible refiners and other
RIK purchasers requires communication
between MMS and the operators of a
lease to ensure accurate and timely
delivery of MMS’s royalty share of
production volumes. In order to take
MMS’s crude oil or natural gas in kind,
MMS, as the responsible steward of oil
and gas royalties, must direct operators
of affected MMS leases to provide three
types of communication:
(1) Report information about the
projected volumes and qualities of RIK
crude oil or natural gas production the
operator expects to make available for
delivery in the following month, and
report corrections to those projected
volumes and qualities for previous
months, submitted monthly no later
than 10 days before the first day of
following month;
(2) Report cost/invoicing information
about transportation charges incurred
for delivering the RIK product to the
delivery point, when applicable; and
(3) Report month-end summary
information (lease imbalance statement)
regarding total RIK crude oil or natural
gas volumes and qualities needed to
carry over to the next month to resolve
aggregated imbalances that have
occurred in prior months of RIK
deliveries.
In marketing the product, information
received through MMS’s directed
communication is essential for MMS to
ensure the delivery and acceptance of
verifiable quantities and qualities of
crude oil and natural gas. In cases when
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MMS is directed to deliver the product
to other Federal agencies, these types of
directed communication are necessary
so that exchange contractors can arrange
to timely accept accurate amounts and
qualities of royalty oil that will be
delivered by MMS’s exchange partner
and for MMS to verify timely fulfillment
of operators’ and lessees’ royalty
obligations to the Federal Government.
The types of directed communication
and the supporting data, which MMS
requires operators to use in setting up
the monthly delivery of RIK to the
purchaser, are standard business
practices in the oil and gas industry.
Sample ‘‘Dear Operator’’ letters are
posted on RIK’s Web site at https://
www.mrm.mms.gov/rikweb/
RIKOperLts.htm.
Third-Party Agreements
Section 208.9 requires that eligible
refiners who purchase royalty oil must
submit to MMS two copies of any
written third-party agreements, or two
copies of a complete written
explanation of any oral third-party
agreements, relating to the method and
costs of delivery of royalty oil, or crude
oil exchanged for the royalty oil, from
the point of delivery under the contract
to the purchaser’s refinery. Also, this
section requires that the purchaser must
submit copies of agreements pertaining
to quality differentials that may occur
between the lease(s) and the delivery
point(s). However, in practice MMS
does not currently require eligible
refiners to submit these written thirdparty and quality differential
agreements. The MMS reserves the right
upon request to require the agreement
from the eligible refiners.
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Offers, Financial Statements, and
Surety Instruments for Sales of Royalty
Oil and Gas
Offers. The Secretary is obligated to
hold competition when selling to the
public; to protect actual RIK production
before, during, and after any sale; and to
obtain a fair return on royalty
production sold. The MMS must fulfill
those obligations for the Secretary. The
reporting requirements are (1) Actual
pricing offers that potential purchasers
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will submit when MMS offers
production for competitive sale; (2)
offerors’ statements of financial
qualification (audited financial
statements or 10K report/statement);
and (3) surety instruments, such as a
Letter of Credit (LOC), bond,
prepayment, or parent guaranty when
financial qualification is not sufficient.
All LOCs are irrevocable.
The MMS typically offers royalty oil
and gas production for sale by Invitation
for Offers (IFOs) to those offerors who
have previously established their
qualifications. The MMS evaluates all
offers to determine which combination
of price and other terms comprises the
best return to the U.S. Department of the
Treasury and to any affected state.
Financial Statements. The MMS may
request that a bidder submit its publicly
available statements of its financial
condition (brought briefly up to date, if
needed) or other related qualification
information. The MMS evaluates the
qualification information to determine
whether bidders are reliable to follow
through on payment of the dollar
amount (or delivery of exchange
production) offered, as they bid, and to
determine their ability to timely perform
activities attendant to the taking of
crude oil and/or natural gas. The MMS
performs this step to reduce the risk to
the Federal Government in these
transactions.
Surety Instruments. Under MMS
current practice, eligible refiners are
subject to the same requirements as
other RIK purchasers regarding MMSacceptable surety instruments and
qualification information. Reporting
requirements in § 208.11 discuss surety
instruments for eligible refiners. Surety
instruments include the broad field of
financial instruments that may be
collected, i.e., bonds, prepayments, and
parent guaranties. When required,
eligible refiners and other RIK
purchasers must provide surety
documents, i.e., Form MMS–4071, LOC;
Form MMS–4072, Royalty-In-Kind
Contract Surety Bond; other acceptable
commercial surety, within 5 business
days prior to the first delivery under the
contract to protect the Federal
Government’s interest. For bonds, MMS
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requires a specific MMS-approved
format. All parent guaranties must
specify a dollar amount of the guaranty
and the effective term.
For awards exceeding the amount of
unsecured credit issued by MMS,
successful offerors will be required to
provide secured financial assurance in
the form of an LOC, bond, or other
MMS-acceptable surety instrument
within 5 business days prior to the first
delivery under the contract.
In cases of high-risk counterparties, or
large awards of RIK crude oil or natural
gas, MMS will require a surety
instrument to guarantee performance
under RIK sales or exchange agreement.
Surety instruments are commonly used
in the commercial oil and gas industry
as a standard course of business where
risk is encountered from counterparties.
The surety instruments provide the
Federal Government with a means to
collect money if refiners do not report
and pay for the Federal oil they have
received.
The MMS will request OMB’s
approval to continue to collect this
information. Not collecting this
information would limit the Secretary’s
ability to discharge his/her duties and
may also result in loss of royalty
payments. Proprietary information
submitted to MMS under this collection
is protected, and there are no questions
of a sensitive nature included in this
information collection.
Frequency of Response: On occasion,
weekly, monthly, annually, frequency
varies within monthly reporting cycle,
or as necessary.
Estimated Number and Description of
Respondents: 227 Federal lessees and/or
operators; and 80 commercial oil and
gas purchasers and/or refiners.
Estimated Annual Reporting and
Recordkeeping ‘‘Hour’’ Burden: 1,969
hours.
We have not included in our
estimates certain requirements
performed in the normal course of
business, which are considered usual
and customary. The following chart
shows the estimated annual burden
hours by CFR section and paragraph:
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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS
Citation 30 CFR
Reporting and recordkeeping requirement
Hour burden
Average
number of
annual responses
Annual burden hours
PART 208—SALE OF FEDERAL ROYALTY OIL
Subpart A—General Provisions
§ 208.4
Royalty oil sales to eligible refiners
208.4(a) ......................................
(a) Determination to take royalty oil in kind. The Secretary may
evaluate crude oil market conditions from time to time. * * *
The Secretary will review these items and will determine
whether eligible refiners have access to adequate supplies of
crude oil and whether such oil is available to eligible refiners at
equitable prices. * * *
208.4(b) ......................................
(b) Sale to eligible refiners. (1) * * * The Secretary may authorize MMS to offer royalty oil for sale to eligible refiners only for
use in their refineries. * * *
Hour burden covered under § 208.4(a).
208.4(c) .......................................
(c) Upon a determination by the Secretary * * * that eligible refiners do have access to adequate supplies of crude oil at equitable prices, MMS will not take royalties in kind from oil and
gas leases for exclusive sale to such refiners. * * *
Hour burden covered under § 208.4(a).
208.4(d) ......................................
(d) Interim sales. * * * The potentially eligible refiners, individually or collectively, must submit documentation demonstrating
that adequate supplies of crude oil at equitable prices are not
available for purchase. * * *
Hour burden covered under § 208.4(a).
§ 208.6
208.6(a) and (b) ..........................
(a) To apply for the purchase of royalty oil, an applicant must file
a Form MMS–4070 with MMS in accordance with instructions
provided in the ‘‘Notice of Availability of Royalty Oil’’ and in accordance with any instructions issued by MMS for completion
of Form MMS–4070. The applicant will be required to submit a
letter of intent from a qualified financial institution stating that it
would be granted surety coverage for the royalty oil for which
it is applying, or other such proof of surety coverage, as
deemed acceptable by MMS. The letter of intent must be submitted with a completed Form MMS–4070.
(b) In addition to any other application requirements specified in
the Notice, the following information is required on Form
MMS–4070 at the time of application: * * *
5
0.25
1
*1
1
1
1
Transportation and delivery
(a) * * * The purchaser must have physical access to the oil at
the alternate delivery point and such point must be approved
by MMS.
208.8(b) ......................................
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4
Determination of eligibility
208.8(a) ......................................
(b) * * * If the delivery point is on or immediately adjacent to the
lease, the royalty oil will be delivered without cost to the Federal Government as an undivided portion of production in marketable condition at pipeline connections or other facilities provided by the lessee, unless other arrangements are approved
by MMS. If the delivery point is not on or immediately adjacent
to the lease, MMS will reimburse the lessee for the reasonable
cost of transportation to such point in an amount not to exceed
the transportation allowance determined pursuant to 30 CFR
part 206. * * *
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1.25
(a) The MMS will examine each application and may request additional information if the information in the application is inadequate. * * *
§ 208.8
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General application procedures
§ 208.7
208.7(a) ......................................
4
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Hour burden covered by OMB Control
Number 1010–0140.
This provision is no different than the
transportation allowances allowed in 30
CFR part 206 for royalties paid in
value. The lessee enters allowance
amount on Form MMS–2014.
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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Citation 30 CFR
Reporting and recordkeeping requirement
§ 208.9
208.9(a) ......................................
Hour burden
Average
number of
annual responses
Annual burden hours
Agreements
(a) A purchaser must submit to MMS two copies of any written
third-party agreements, or two copies of a full written explanation of any oral third-party agreements, relating to the method and costs of delivery of royalty oil, or crude oil exchanged
for the royalty oil, from the point of delivery under the contract
to the purchaser’s refinery. In addition, the purchaser must
submit copies of agreements pertaining to quality differentials
which may occur between leases and delivery points.
§ 208.10
1
1
1
Notices
208.10(d) ....................................
(d) After MMS notification that royalty oil will be taken in kind, the
operator shall be responsible for notifying each working interest on the Federal lease. * * *
2
20
40
208.10(e) ....................................
(e) A purchaser cannot transfer, assign, or sell its rights or interest in a royalty oil contract without written approval of the Director, MMS. * * * Without express written consent from MMS
for a change in ownership, the royalty oil contract shall be terminated. * * *
1
1
1
§ 208.11
208.11 (a), (b), (d), and (e) ........
Surety requirements [for eligible refiners]
(a) The eligible purchaser, prior to execution of the contract,
shall furnish an ‘‘MMS-specified surety instrument,’’ in an
amount equal to the estimated value of royalty oil that could
be taken by the purchaser in a 99-day period, plus related administrative charges. * * *
(b) * * * The purchaser or its surety company may elect not to
renew the letter of credit at any monthly anniversary date, but
must notify MMS of its intent not to renew at least 30 days
prior to the anniversary date. * * *
(d) The ‘‘MMS-specified surety instrument’’ shall be in the form
specified by MMS instructions or approved by MMS. * * *
(e) All surety instruments must be in a form acceptable to MMS
and must include such other specific requirements as MMS
may require adequately to protect the Government’s interests.
§ 208.15
208.15 .........................................
Hour burden covered under ‘‘Offers, Financial Statements, and Surety Instruments for Sales of Royalty Oil and
Gas’’ section.
(Forms MMS–4071, Letter of Credit, and
MMS–4072, Royalty-In-Kind Contract
Surety Bond)
Audits
Audits of the accounts and books of lessees, operators, payors,
and/or purchasers of royalty oil taken in kind may be made annually or at other such times as may be directed by MMS.
* * *
Audit process. See note.
Directed Communications by Operators of Federal Oil and Gas Leases
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Contract-Directed ........................
Wyoming Gas .................................................................................
Natural Gas [Texas 8G and Gulf of Mexico (GOM)] .....................
GOM Oil ..........................................................................................
SPR Fill Initiative ............................................................................
In January 2008, 70,000 barrels of oil per day were directed toward the SPR. This initiative will continue through the Fall of
2008; at which point, these oil volumes will be redirected back
to commercial GOM RIK oil sales. Thus, information collection
responses will continue at the same level during and after the
SPR initiative, the only difference will be under which program
the collection falls.)
Eligible Refiners ..............................................................................
3
3
3
3
3
108
64
17
9
324
192
51
3
35
105
903
20
30
903
20
300
Offers, Financial Statements, and Surety Instruments for Sales of Royalty Oil and Gas
Contract-Directed ........................
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Offers ..............................................................................................
Financial Statements ......................................................................
Surety Instruments .........................................................................
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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Citation 30 CFR
Reporting and recordkeeping requirement
Total Burden ........................
Hour burden
.........................................................................................................
Average
number of
annual responses
....................
Annual burden hours
1,212
1,969
mstockstill on PROD1PC66 with NOTICES
Note: The ORA determined that the audit process is not covered by the PRA because MMS staff asks non-standard questions to resolve exceptions.
* Rounded up from 0.25.
Estimated Annual Reporting and
Recordkeeping ‘‘Non-hour’’ Cost
Burden: We have identified no ‘‘nonhour’’ cost burdens.
Public Disclosure Statement: The PRA
(44 U.S.C. 3501 et seq.) provides that an
agency may not conduct or sponsor, and
a person is not required to respond to,
a collection of information unless it
displays a currently valid OMB control
number.
Comments: Before submitting an ICR
to OMB, PRA Section 3506(c)(2)(A)
requires each agency ‘‘* * * to provide
notice * * * and otherwise consult
with members of the public and affected
agencies concerning each proposed
collection of information * * *.’’
Agencies must specifically solicit
comments to: (a) Evaluate whether the
proposed collection of information is
necessary for the agency to perform its
duties, including whether the
information is useful; (b) evaluate the
accuracy of the agency’s estimate of the
burden of the proposed collection of
information; (c) enhance the quality,
usefulness, and clarity of the
information to be collected; and (d)
minimize the burden on the
respondents, including the use of
automated collection techniques or
other forms of information technology.
The PRA also requires agencies to
estimate the total annual reporting
‘‘non-hour cost’’ burden to respondents
or recordkeepers resulting from the
collection of information. If you have
costs to generate, maintain, and disclose
this information, you should comment
and provide your total capital and
startup cost components or annual
operation, maintenance, and purchase
of service components. You should
describe the methods you use to
estimate major cost factors, including
system and technology acquisition,
expected useful life of capital
equipment, discount rate(s), and the
period over which you incur costs.
Capital and startup costs include,
among other items, computers and
software you purchase to prepare for
collecting information; monitoring,
sampling, and testing equipment; and
record storage facilities. Generally, your
estimates should not include equipment
VerDate Aug<31>2005
18:06 Apr 08, 2008
Jkt 214001
or services purchased: (i) Before October
1, 1995; (ii) to comply with
requirements not associated with the
information collection; (iii) for reasons
other than to provide information or
keep records for the Federal
Government; or (iv) as part of customary
and usual business or private practices.
We will summarize written responses
to this notice and address them in our
ICR submission for OMB approval,
including appropriate adjustments to
the estimated burden. We will provide
a copy of the ICR to you without charge
upon request. The ICR also will be
posted on our Web site at https://
www.mrm.mms.gov/Laws_R_D/
FRNotices/FRInfColl.htm.
Public Comment Policy: We will post
all comments in response to this notice
on our website at https://
www.mrm.mms.gov/Laws_R_D/InfoColl/
InfoColCom.htm. We will also make
copies of the comments available for
public review, including names and
addresses of respondents, during regular
business hours at our offices in
Lakewood, Colorado. 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: April 2, 2008.
Walter D. Cruickshank,
Acting Associate Director for Minerals
Revenue Management.
[FR Doc. E8–7448 Filed 4–8–08; 8:45 am]
BILLING CODE 4310–MR–P
PO 00000
DEPARTMENT OF THE INTERIOR
National Park Service
Public Notice: Clarifying the Definition
Of ‘‘Substantial Restoration of Natural
Quiet’’ at Grand Canyon National Park,
Arizona
National Park Service,
Department of the Interior.
ACTION: Public Notice: Clarifying the
definition of ‘‘substantial restoration of
natural quiet’’ at Grand Canyon National
Park.
AGENCY:
SUMMARY: This notice clarifies the
definition used by Grand Canyon
National Park (GCNP) for achieving
substantial restoration of natural quiet
as mandated by the 1987 Overflights Act
(Pub. L. 100–91) (Overflights Act). This
clarification of the definition is
necessary to address current acoustic
conditions to comply with the intent of
recommendations provided in the 1995
Report to Congress,1 and respond to a
2002 U.S. Court of Appeals decision.
The provisions of the Special Flight
Aviation Regulation (SFAR) 50–2 have
not resulted in substantial restoration of
natural quiet of GCNP. Given the
volume of high altitude commercial jet
and general aviation traffic overflying
the Grand Canyon above 17,999 feet
Mean Sea Level (MSL) and a recent
court decision, the substantial
restoration goal as currently defined
cannot be attained. This clarification of
the restoration definition, while
focusing on air tour and air tour related
and general aviation aircraft that are
conducting overflights of GCNP at
altitudes at or below 17,999 MSL, also
incorporates measures to address noise
from all aircraft. The 1995 definition of
substantial restoration of natural quiet is
being clarified to distinguish between
aircraft noise generated above and
below 17,999 feet MSL. The Special
Flight Rules Area (SFRA) ceiling was set
at 17,999 MSL to avoid additional
requirements, restrictions and
1 National Park Service, (1995) Report of Effects
of Aircraft Overflights on the National Park System,
Report to Congress, July 1995.
Frm 00061
Fmt 4703
Sfmt 4703
E:\FR\FM\09APN1.SGM
09APN1
]]>Agencies
[Federal Register Volume 73, Number 69 (Wednesday, April 9, 2008)]
[Notices]
[Pages 19241-19246]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-7448]
-----------------------------------------------------------------------
DEPARTMENT OF THE INTERIOR
Minerals Management Service
[Docket No. MMS-2008-MRM-0010]
Agency Information Collection Activities: Proposed Collection,
Comment Request
AGENCY: Minerals Management Service (MMS), Interior.
ACTION: Notice of a revision of a currently approved information
collection (OMB Control Number 1010-0119).
-----------------------------------------------------------------------
SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), we
are inviting comments on a collection of information that we will
submit to the Office of Management and Budget (OMB) for review and
approval. The previous title of this information collection request
(ICR) was ``30 CFR Part 208--Sale of Federal Royalty Oil; Sale of
Federal Royalty Gas; and Commercial Contracts (Forms MMS-4070,
Application for the Purchase of Royalty Oil; MMS-4071, Letter of
Credit; and MMS-4072, Royalty-in-Kind Contract Surety Bond).'' The new
title of this ICR is ``30 CFR Part 208, RIK Oil and Gas.''
DATES: Submit written comments on or before June 9, 2008.
ADDRESSES: You may submit comments by the following methods:
Electronically go to https://www.regulations.gov. In the
``Comment or Submission'' column, enter ``MMS-2008-MRM-0010'' to view
supporting and related materials for this ICR. Click on ``Send a
comment or submission'' link to submit public comments. 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 comments to Armand Southall, Regulatory Specialist,
Minerals Management Service, Minerals Revenue Management, P.O. Box
25165, MS 302B2, Denver, Colorado 80225. Please reference ICR 1010-0119
in your comments.
Hand-carry comments or use an overnight courier service.
Our courier address is Building 85, Room A-614, Denver Federal Center,
West 6th Ave. and Kipling Blvd., Denver, Colorado 80225. Please
reference ICR 1010-0119 in your comments.
FOR FURTHER INFORMATION CONTACT: Armand Southall, telephone (303) 231-
3221, or e-mail armand.southall@mms.gov. You may also contact Armand
Southall to obtain copies, at no cost, of (1) The ICR, (2) any
associated forms, and (3) the regulations that require the subject
collection of information.
SUPPLEMENTARY INFORMATION:
Title: 30 CFR Part 208, RIK Oil and Gas.
OMB Control Number: 1010-0119.
Bureau Form Number: Forms MMS-4070, MMS-4071, and MMS-4072.
Abstract: The Secretary of the U.S. Department of the Interior is
responsible for matters relevant to mineral resource development on
Federal and Indian lands and the Outer Continental Shelf (OCS). The
Secretary, under the Mineral Leasing Act of 1920 (30 U.S.C. 1923), the
Indian Mineral Development Act of 1982 (25 U.S.C. 2103), 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 and other mineral revenues from lessees
who produce minerals, and distributing the funds collected in
accordance with applicable laws. The MMS performs the mineral revenue
management functions for the Secretary.
Public laws pertaining to mineral revenues are on our Web site at
https://www.mrm.mms.gov/Laws_R_D/PublicLawsAMR.htm. These public laws
and 30 CFR part 208, as well as specific language in the actual lease
documents, authorize the Secretary to sell royalty oil and gas accruing
to the United States. The standard lease terms state that royalties are
due in amount or in value. In addition, these citations authorize the
Secretary to prescribe proper rules and regulations and to do any and
all things necessary to accomplish the purpose of applicable laws. The
MMS directs communications between MMS operators and RIK purchasers
through commercial contracts, situation-specific ``Dear Operator''
letters, or, in the case of eligible refiners, through regulations at
30 CFR part 208.
General Information
The MMS is responsible for ensuring that all revenues from Federal
and Indian mineral leases are accurately collected and accounted for
and appropriately disbursed to recipients.
[[Page 19242]]
Historically, most of these revenues have been received in the form of
cash royalty payments, i.e., royalty in-value payments. These payments
are paid by mineral development interests. Beginning in the late
nineties, MMS conducted pilots to test the approach of taking RIK.
The Federal Government's MMS RIK pilot program became a permanent
operational program after several years of pilot project testing. The
MMS RIK operational program takes payment from mineral lessees ``in
kind'' in the form of produced crude oil and natural gas volumes,
rather than in cash payments. The lessee transfers the title of the
crude oil or natural gas to the Federal Government, and MMS sells the
received product (crude oil or natural gas) to agents in the
marketplace and disburses revenues as prescribed by law. The MMS sells
some product competitively in the unrestricted marketplace, and the
other RIK product MMS sells competitively to eligible refiners (a small
and independent refiner, as defined in 30 CFR 208.2). Additionally,
when directed, MMS delivers the RIK product to other Federal agencies,
as has been the case during the fill of the Strategic Petroleum Reserve
(SPR), directed by the President in 2007, with scheduled completion
upon reaching a capacity of 727 million barrels. Specifically, within
the MMS RIK operational program, MMS conducts the eligible small
refiner, SPR, offshore, and Wyoming natural gas programs.
Recently, MMS consolidated and revised existing procedures and
policies guiding the sale of onshore and offshore royalty crude oil and
natural gas (1) To establish uniformity within the regulatory and
operational framework; (2) to provide industry with a more efficient
and responsive MMS RIK operational program; and (3) to improve the
Federal Government's administration of this program. For example,
several of the reporting requirements for eligible refiners under 30
CFR part 208 have been combined with reporting requirements for other
RIK purchasers. However, due to the unique nature of the sale of crude
oil to eligible refiners, certain requirements pertain only to that
eligible refiner program.
Eligible Refiner Information--Determination of Need
As stated earlier, royalties may be paid ``in value'' or ``in
kind.'' The regulations at 30 CFR part 208, Sale of Federal Royalty
Oil, govern the RIK program of Federal oil for eligible refiners. Under
Sec. 208.4(a) and (b), MMS, on behalf of the Secretary, performs a
Determination of Need prior to issuing a Notice of Availability of
Royalty Oil for sale. The MMS uses the feedback from the Determination
of Need respondents (eligible refiners or other interested parties,
i.e., lessees, operators) to assess current marketplace conditions. If
MMS determines the program should continue, MMS may dispose of any
royalty oil taken in kind by conducting a sale of such oil, through an
allocation process, to eligible refiners. The most recent Determination
of Need assessment, requesting specific information from interested
parties, was published in the Federal Register on January 16, 2008.
In order to qualify for RIK sales, eligible refiners must
prequalify by (1) signing the MMS base contract, ``RIK Crude Oil
General Terms and Conditions,'' which is located at https://
www.mrm.mms.gov/rikweb/PDFDocs/gtcexh.pdf, and (2) providing detailed
financial information. Upon prequalification, MMS will issue an amount
of unsecured credit, based on the creditability of the offeror.
Notice of Availability of Royalty Oil--Federal Register Notice
Under Sec. 208.5, if MMS finds from the Determination of Need
process that the program should continue, MMS would then publish a
Notice of Availability of Royalty Oil for sale in the Federal Register
and other printed media, when appropriate. This notice advises industry
of a forthcoming RIK crude oil sale for eligible refiners and includes
administrative details concerning the application, the allocation
process, and the contract award process for the royalty oil. It also
details specific information about the crude oil types offered for sale
and the location of delivery points.
Under Sec. 208.10(e), eligible refiners who purchase royalty oil
cannot transfer, assign, or sell their rights or interest in a royalty
oil contract without written approval of the MMS Director. This
provision is intended to ensure that only qualified eligible refiners
benefit from these sales of royalty oil.
Form MMS-4070--Application for the Purchase of Royalty Oil
Under Sec. 208.6, eligible refiners interested in purchasing
royalty oil must submit Form MMS-4070, which is located at https://
www.mrm.mms.gov/ReportingServices/PDFDocs/4070.pdf. This form serves as
certification that the company qualifies under the Small Refiner
Program as defined under Sec. 208.2. On Form MMS-4070, MMS requests
specific information, i.e., the location of their refinery; number of
persons employed by the refinery; type of crude desired (e.g., Light
Louisiana Sweet); the specific area in which the applicant is
interested and documentation supporting an established history in the
requested area; and the percentage of total refining capacity
attributable to Federal oil versus other sources.
The Federal Government's administration of the eligible refiner
program is aided significantly by the collection of information
requested on Form MMS-4070. The MMS uses the information collected to
determine the eligibility of refiners wanting to enter into contracts
to purchase royalty oil and to provide a basis for the allocation of
available royalty oil among eligible refiners, when necessary; that is,
they meet the small refiner eligibility requirements issued by the
Small Business Administration, as explained under Sec. 208.6.
Directed Communications by Operators of Federal Oil and Gas Leases
Collection of RIK crude oil and natural gas for eligible refiners
and other RIK purchasers requires communication between MMS and the
operators of a lease to ensure accurate and timely delivery of MMS's
royalty share of production volumes. In order to take MMS's crude oil
or natural gas in kind, MMS, as the responsible steward of oil and gas
royalties, must direct operators of affected MMS leases to provide
three types of communication:
(1) Report information about the projected volumes and qualities of
RIK crude oil or natural gas production the operator expects to make
available for delivery in the following month, and report corrections
to those projected volumes and qualities for previous months, submitted
monthly no later than 10 days before the first day of following month;
(2) Report cost/invoicing information about transportation charges
incurred for delivering the RIK product to the delivery point, when
applicable; and
(3) Report month-end summary information (lease imbalance
statement) regarding total RIK crude oil or natural gas volumes and
qualities needed to carry over to the next month to resolve aggregated
imbalances that have occurred in prior months of RIK deliveries.
In marketing the product, information received through MMS's
directed communication is essential for MMS to ensure the delivery and
acceptance of verifiable quantities and qualities of crude oil and
natural gas. In cases when
[[Page 19243]]
MMS is directed to deliver the product to other Federal agencies, these
types of directed communication are necessary so that exchange
contractors can arrange to timely accept accurate amounts and qualities
of royalty oil that will be delivered by MMS's exchange partner and for
MMS to verify timely fulfillment of operators' and lessees' royalty
obligations to the Federal Government.
The types of directed communication and the supporting data, which
MMS requires operators to use in setting up the monthly delivery of RIK
to the purchaser, are standard business practices in the oil and gas
industry. Sample ``Dear Operator'' letters are posted on RIK's Web site
at https://www.mrm.mms.gov/rikweb/RIKOperLts.htm.
Third-Party Agreements
Section 208.9 requires that eligible refiners who purchase royalty
oil must submit to MMS two copies of any written third-party
agreements, or two copies of a complete written explanation of any oral
third-party agreements, relating to the method and costs of delivery of
royalty oil, or crude oil exchanged for the royalty oil, from the point
of delivery under the contract to the purchaser's refinery. Also, this
section requires that the purchaser must submit copies of agreements
pertaining to quality differentials that may occur between the lease(s)
and the delivery point(s). However, in practice MMS does not currently
require eligible refiners to submit these written third-party and
quality differential agreements. The MMS reserves the right upon
request to require the agreement from the eligible refiners.
Offers, Financial Statements, and Surety Instruments for Sales of
Royalty Oil and Gas
Offers. The Secretary is obligated to hold competition when selling
to the public; to protect actual RIK production before, during, and
after any sale; and to obtain a fair return on royalty production sold.
The MMS must fulfill those obligations for the Secretary. The reporting
requirements are (1) Actual pricing offers that potential purchasers
will submit when MMS offers production for competitive sale; (2)
offerors' statements of financial qualification (audited financial
statements or 10K report/statement); and (3) surety instruments, such
as a Letter of Credit (LOC), bond, prepayment, or parent guaranty when
financial qualification is not sufficient. All LOCs are irrevocable.
The MMS typically offers royalty oil and gas production for sale by
Invitation for Offers (IFOs) to those offerors who have previously
established their qualifications. The MMS evaluates all offers to
determine which combination of price and other terms comprises the best
return to the U.S. Department of the Treasury and to any affected
state.
Financial Statements. The MMS may request that a bidder submit its
publicly available statements of its financial condition (brought
briefly up to date, if needed) or other related qualification
information. The MMS evaluates the qualification information to
determine whether bidders are reliable to follow through on payment of
the dollar amount (or delivery of exchange production) offered, as they
bid, and to determine their ability to timely perform activities
attendant to the taking of crude oil and/or natural gas. The MMS
performs this step to reduce the risk to the Federal Government in
these transactions.
Surety Instruments. Under MMS current practice, eligible refiners
are subject to the same requirements as other RIK purchasers regarding
MMS-acceptable surety instruments and qualification information.
Reporting requirements in Sec. 208.11 discuss surety instruments for
eligible refiners. Surety instruments include the broad field of
financial instruments that may be collected, i.e., bonds, prepayments,
and parent guaranties. When required, eligible refiners and other RIK
purchasers must provide surety documents, i.e., Form MMS-4071, LOC;
Form MMS-4072, Royalty-In-Kind Contract Surety Bond; other acceptable
commercial surety, within 5 business days prior to the first delivery
under the contract to protect the Federal Government's interest. For
bonds, MMS requires a specific MMS-approved format. All parent
guaranties must specify a dollar amount of the guaranty and the
effective term.
For awards exceeding the amount of unsecured credit issued by MMS,
successful offerors will be required to provide secured financial
assurance in the form of an LOC, bond, or other MMS-acceptable surety
instrument within 5 business days prior to the first delivery under the
contract.
In cases of high-risk counterparties, or large awards of RIK crude
oil or natural gas, MMS will require a surety instrument to guarantee
performance under RIK sales or exchange agreement. Surety instruments
are commonly used in the commercial oil and gas industry as a standard
course of business where risk is encountered from counterparties.
The surety instruments provide the Federal Government with a means
to collect money if refiners do not report and pay for the Federal oil
they have received.
The MMS will request OMB's approval to continue to collect this
information. Not collecting this information would limit the
Secretary's ability to discharge his/her duties and may also result in
loss of royalty payments. Proprietary information submitted to MMS
under this collection is protected, and there are no questions of a
sensitive nature included in this information collection.
Frequency of Response: On occasion, weekly, monthly, annually,
frequency varies within monthly reporting cycle, or as necessary.
Estimated Number and Description of Respondents: 227 Federal
lessees and/or operators; and 80 commercial oil and gas purchasers and/
or refiners.
Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 1,969
hours.
We have not included in our estimates certain requirements
performed in the normal course of business, which are considered usual
and customary. The following chart shows the estimated annual burden
hours by CFR section and paragraph:
[[Page 19244]]
Respondents' Estimated Annual Burden Hours
----------------------------------------------------------------------------------------------------------------
Average
Reporting and recordkeeping number of Annual
Citation 30 CFR requirement Hour burden annual burden
responses hours
----------------------------------------------------------------------------------------------------------------
PART 208--SALE OF FEDERAL ROYALTY OIL
----------------------------------------------------------------------------------------------------------------
Subpart A--General Provisions
----------------------------------------------------------------------------------------------------------------
Sec. 208.4 Royalty oil sales to eligible refiners
----------------------------------------------------------------------------------------------------------------
208.4(a)................................ (a) Determination to take 4 4 16
royalty oil in kind. The
Secretary may evaluate crude
oil market conditions from
time to time. * * * The
Secretary will review these
items and will determine
whether eligible refiners have
access to adequate supplies of
crude oil and whether such oil
is available to eligible
refiners at equitable prices.
* * *
----------------------------------------------------------------------------------------------------------------
208.4(b)................................ (b) Sale to eligible refiners. Hour burden covered under Sec.
(1) * * * The Secretary may 208.4(a).
authorize MMS to offer royalty
oil for sale to eligible
refiners only for use in their
refineries. * * *
----------------------------------------------------------------------------------------------------------------
208.4(c)................................ (c) Upon a determination by the Hour burden covered under Sec.
Secretary * * * that eligible 208.4(a).
refiners do have access to
adequate supplies of crude oil
at equitable prices, MMS will
not take royalties in kind
from oil and gas leases for
exclusive sale to such
refiners. * * *
----------------------------------------------------------------------------------------------------------------
208.4(d)................................ (d) Interim sales. * * * The Hour burden covered under Sec.
potentially eligible refiners, 208.4(a).
individually or collectively,
must submit documentation
demonstrating that adequate
supplies of crude oil at
equitable prices are not
available for purchase. * * *
----------------------------------------------------------------------------------------------------------------
Sec. 208.6 General application procedures
----------------------------------------------------------------------------------------------------------------
208.6(a) and (b)........................ (a) To apply for the purchase 1.25 4 5
of royalty oil, an applicant
must file a Form MMS-4070 with
MMS in accordance with
instructions provided in the
``Notice of Availability of
Royalty Oil'' and in
accordance with any
instructions issued by MMS for
completion of Form MMS-4070.
The applicant will be required
to submit a letter of intent
from a qualified financial
institution stating that it
would be granted surety
coverage for the royalty oil
for which it is applying, or
other such proof of surety
coverage, as deemed acceptable
by MMS. The letter of intent
must be submitted with a
completed Form MMS-4070.
(b) In addition to any other
application requirements
specified in the Notice, the
following information is
required on Form MMS-4070 at
the time of application: * * *.
----------------------------------------------------------------------------------------------------------------
Sec. 208.7 Determination of eligibility
----------------------------------------------------------------------------------------------------------------
208.7(a)................................ (a) The MMS will examine each 0.25 1 *1
application and may request
additional information if the
information in the application
is inadequate. * * *
----------------------------------------------------------------------------------------------------------------
Sec. 208.8 Transportation and delivery
----------------------------------------------------------------------------------------------------------------
208.8(a)................................ (a) * * * The purchaser must 1 1 1
have physical access to the
oil at the alternate delivery
point and such point must be
approved by MMS.
----------------------------------------------------------------------------------------------------------------
208.8(b)................................ (b) * * * If the delivery point Hour burden covered by OMB Control
is on or immediately adjacent Number 1010-0140.
to the lease, the royalty oil This provision is no different than
will be delivered without cost the transportation allowances allowed
to the Federal Government as in 30 CFR part 206 for royalties paid
an undivided portion of in value. The lessee enters allowance
production in marketable amount on Form MMS-2014.
condition at pipeline
connections or other
facilities provided by the
lessee, unless other
arrangements are approved by
MMS. If the delivery point is
not on or immediately adjacent
to the lease, MMS will
reimburse the lessee for the
reasonable cost of
transportation to such point
in an amount not to exceed the
transportation allowance
determined pursuant to 30 CFR
part 206. * * *
----------------------------------------------------------------------------------------------------------------
[[Page 19245]]
Sec. 208.9 Agreements
----------------------------------------------------------------------------------------------------------------
208.9(a)................................ (a) A purchaser must submit to 1 1 1
MMS two copies of any written
third-party agreements, or two
copies of a full written
explanation of any oral third-
party agreements, relating to
the method and costs of
delivery of royalty oil, or
crude oil exchanged for the
royalty oil, from the point of
delivery under the contract to
the purchaser's refinery. In
addition, the purchaser must
submit copies of agreements
pertaining to quality
differentials which may occur
between leases and delivery
points.
----------------------------------------------------------------------------------------------------------------
Sec. 208.10 Notices
----------------------------------------------------------------------------------------------------------------
208.10(d)............................... (d) After MMS notification that 2 20 40
royalty oil will be taken in
kind, the operator shall be
responsible for notifying each
working interest on the
Federal lease. * * *
----------------------------------------------------------------------------------------------------------------
208.10(e)............................... (e) A purchaser cannot 1 1 1
transfer, assign, or sell its
rights or interest in a
royalty oil contract without
written approval of the
Director, MMS. * * * Without
express written consent from
MMS for a change in ownership,
the royalty oil contract shall
be terminated. * * *
----------------------------------------------------------------------------------------------------------------
Sec. 208.11 Surety requirements [for eligible refiners]
----------------------------------------------------------------------------------------------------------------
208.11 (a), (b), (d), and (e)........... (a) The eligible purchaser, Hour burden covered under ``Offers,
prior to execution of the Financial Statements, and Surety
contract, shall furnish an Instruments for Sales of Royalty Oil
``MMS-specified surety and Gas'' section.
instrument,'' in an amount (Forms MMS-4071, Letter of Credit,
equal to the estimated value and MMS-4072, Royalty-In-Kind
of royalty oil that could be Contract Surety Bond)
taken by the purchaser in a 99-
day period, plus related
administrative charges. * * *
(b) * * * The purchaser or its
surety company may elect not
to renew the letter of credit
at any monthly anniversary
date, but must notify MMS of
its intent not to renew at
least 30 days prior to the
anniversary date. * * *.
(d) The ``MMS-specified surety
instrument'' shall be in the
form specified by MMS
instructions or approved by
MMS. * * *.
(e) All surety instruments must
be in a form acceptable to MMS
and must include such other
specific requirements as MMS
may require adequately to
protect the Government's
interests..
----------------------------------------------------------------------------------------------------------------
Sec. 208.15 Audits
----------------------------------------------------------------------------------------------------------------
208.15.................................. Audits of the accounts and Audit process. See note.
books of lessees, operators,
payors, and/or purchasers of
royalty oil taken in kind may
be made annually or at other
such times as may be directed
by MMS. * * *
----------------------------------------------------------------------------------------------------------------
Directed Communications by Operators of Federal Oil and Gas Leases
----------------------------------------------------------------------------------------------------------------
Contract-Directed....................... Wyoming Gas.................... 3 3 9
Natural Gas [Texas 8G and Gulf 3 108 324
of Mexico (GOM)].
GOM Oil........................ 3 64 192
SPR Fill Initiative............ 3 17 51
In January 2008, 70,000 barrels
of oil per day were directed
toward the SPR. This
initiative will continue
through the Fall of 2008; at
which point, these oil volumes
will be redirected back to
commercial GOM RIK oil sales.
Thus, information collection
responses will continue at the
same level during and after
the SPR initiative, the only
difference will be under which
program the collection falls.).
Eligible Refiners.............. 3 35 105
----------------------------------------------------------------------------------------------------------------
Offers, Financial Statements, and Surety Instruments for Sales of Royalty Oil and Gas
----------------------------------------------------------------------------------------------------------------
Contract-Directed....................... Offers......................... 1 903 903
Financial Statements........... 1 20 20
Surety Instruments............. 10 30 300
--------------------------------------
[[Page 19246]]
Total Burden........................ ............................... ........... 1,212 1,969
----------------------------------------------------------------------------------------------------------------
Note: The ORA determined that the audit process is not covered by the PRA because MMS staff asks non-standard
questions to resolve exceptions.
* Rounded up from 0.25.
Estimated Annual Reporting and Recordkeeping ``Non-hour'' Cost
Burden: We have identified no ``non-hour'' cost burdens.
Public Disclosure Statement: The PRA (44 U.S.C. 3501 et seq.)
provides that an agency may not conduct or sponsor, and a person is not
required to respond to, a collection of information unless it displays
a currently valid OMB control number.
Comments: Before submitting an ICR to OMB, PRA Section
3506(c)(2)(A) requires each agency ``* * * to provide notice * * * and
otherwise consult with members of the public and affected agencies
concerning each proposed collection of information * * *.'' Agencies
must specifically solicit comments to: (a) Evaluate whether the
proposed collection of information is necessary for the agency to
perform its duties, including whether the information is useful; (b)
evaluate the accuracy of the agency's estimate of the burden of the
proposed collection of information; (c) enhance the quality,
usefulness, and clarity of the information to be collected; and (d)
minimize the burden on the respondents, including the use of automated
collection techniques or other forms of information technology.
The PRA also requires agencies to estimate the total annual
reporting ``non-hour cost'' burden to respondents or recordkeepers
resulting from the collection of information. If you have costs to
generate, maintain, and disclose this information, you should comment
and provide your total capital and startup cost components or annual
operation, maintenance, and purchase of service components. You should
describe the methods you use to estimate major cost factors, including
system and technology acquisition, expected useful life of capital
equipment, discount rate(s), and the period over which you incur costs.
Capital and startup costs include, among other items, computers and
software you purchase to prepare for collecting information;
monitoring, sampling, and testing equipment; and record storage
facilities. Generally, your estimates should not include equipment or
services purchased: (i) Before October 1, 1995; (ii) to comply with
requirements not associated with the information collection; (iii) for
reasons other than to provide information or keep records for the
Federal Government; or (iv) as part of customary and usual business or
private practices.
We will summarize written responses to this notice and address them
in our ICR submission for OMB approval, including appropriate
adjustments to the estimated burden. We will provide a copy of the ICR
to you without charge upon request. The ICR also will be posted on our
Web site at https://www.mrm.mms.gov/Laws_R_D/FRNotices/FRInfColl.htm.
Public Comment Policy: We will post all comments in response to
this notice on our website at https://www.mrm.mms.gov/Laws_R_D/
InfoColl/InfoColCom.htm. We will also make copies of the comments
available for public review, including names and addresses of
respondents, during regular business hours at our offices in Lakewood,
Colorado. 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: April 2, 2008.
Walter D. Cruickshank,
Acting Associate Director for Minerals Revenue Management.
[FR Doc. E8-7448 Filed 4-8-08; 8:45 am]
BILLING CODE 4310-MR-P
