Agency Information Collection Activities: Proposed Collection, Comment Request, 45055-45065 [E8-17730]
Download as PDF
<![CDATA[
Federal Register / Vol. 73, No. 149 / Friday, August 1, 2008 / Notices
conveyance of mineral interests, and
payment of publication costs to the Las
Vegas Field Office. The purchaser must
remit the remainder of the purchase
price within 180 days from the date of
receiving the sale offer to the Las Vegas
Field Office. Payments must be received
by certified check, postal money order,
bank draft, or cashier’s check payable to
the U.S. Department of the InteriorBLM. Failure to meet conditions
established for this sale will void the
sale and any monies received will be
forfeited. Arrangements for electronic
fund transfer to BLM for the balance due
shall be made a minimum of two weeks
prior to the date you wish to make
payment.
The BLM may accept or reject any or
all offers to purchase any parcel, or may
withdraw any parcel of land or interest
therein from sale, if, in the opinion of
the authorized officer, consummation of
the sale would not be fully consistent
with FLPMA or other applicable laws or
is determined not to be in the public
interest.
The parcel of land will not be offered
for sale prior to 60 days from the date
of publication of this notice. Only
written comments submitted by postal
service or overnight mail will be
considered as properly filed. Electronic
mail, facsimile, or telephone comments
will not be considered.
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.
Any adverse comments regarding the
proposed sale will be reviewed by the
BLM Nevada State Director, who may
sustain, vacate, or modify this realty
action and issue a final determination.
In the absence of timely filed objections,
this realty action will become the final
determination of the Department of the
Interior.
mstockstill on PROD1PC66 with NOTICES
Authority: 43 CFR part 2711.
Dated: July 14, 2008.
Mary Jo Rugwell,
Manager, Las Vegas Field Office.
[FR Doc. E8–17615 Filed 7–31–08; 8:45 am]
BILLING CODE 4310–HC–P
VerDate Aug<31>2005
19:39 Jul 31, 2008
Jkt 214001
DEPARTMENT OF THE INTERIOR
Minerals Management Service
[Docket No. MMS–2008–MRM–0029]
Agency Information Collection
Activities: Proposed Collection,
Comment Request
Minerals Management Service
(MMS), Interior.
ACTION: Notice of an extension of a
currently approved information
collection (OMB Control Number 1010–
0103).
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.
We changed the title of this information
collection request (ICR) to meet OMB
requirements. The new title of this ICR
is ‘‘30 CFR Parts 202, 206, and 207,
Indian Oil and Gas Valuation.’’
DATES: Submit written comments on or
before September 2, 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–0029’’ 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 Hyla Hurst,
Regulatory Specialist, Minerals
Management Service, Minerals Revenue
Management, P.O. Box 25165, MS
302B2, Denver, Colorado 80225. Please
reference ICR 1010–0103 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 1010–0103
in your comments.
FOR FURTHER INFORMATION CONTACT: Hyla
Hurst, telephone (303) 231–3495, or email Hyla.Hurst@mms.gov. You may
also contact Hyla Hurst 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.
PO 00000
Frm 00099
Fmt 4703
Sfmt 4703
45055
SUPPLEMENTARY INFORMATION:
Title: 30 CFR Parts 202, 206, and 207,
Indian Oil and Gas Valuation.
OMB Control Number: 1010–0103.
Bureau Form Number: Forms MMS–
4109, MMS–4110, MMS–4295, MMS–
4410, and MMS–4411.
Abstract: The Secretary of the U.S.
Department of the Interior (Secretary) is
responsible for matters relevant to
mineral resource development on
Federal and Indian lands and the Outer
Continental Shelf (OCS). Under the
Mineral Leasing Act (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), the Secretary is responsible for
(1) Managing the production of minerals
from Federal and Indian lands and the
OCS; (2) collecting royalties and other
mineral revenues from lessees who
produce minerals; and (3) distributing
the funds collected in accordance with
applicable laws. The Secretary also has
a trust responsibility to manage Indian
lands and seek advice and information
from Indian beneficiaries. The MMS
performs the minerals revenue
management functions and assists the
Secretary in carrying out the
Department’s trust responsibility for
Indian lands. Applicable laws
pertaining to mineral royalties are
located on our Web site at https://
www.mrm.mms.gov/Laws_R_D/
PublicLawsAMR.htm.
Regulations at 30 CFR part 202,
subparts C and J, pertain to royalties;
part 206, subparts B and E, govern the
valuation of oil and gas produced from
leases on Indian lands; and part 207
pertains to recordkeeping. Indian tribes
and individual Indian mineral owners
receive all royalties generated from their
lands. Determining product valuation is
essential to ensure that Indian tribes and
individual Indian mineral owners
receive payment on the full value of the
minerals removed from their lands.
Failure to collect the data described in
this information collection could result
in the undervaluation of leased minerals
on Indian lands. All data reported is
subject to subsequent audit and
adjustment.
Indian Oil
The regulations apply to all oil
production from Indian oil and gas
leases, except leases on the Osage
Indian Reservation. The regulations
provide that lessees determine the value
of oil based on the higher of: (1) The
gross proceeds under an arm’s-length
contract, or (2) major portion analysis.
These oil valuation methods are eligible
for applicable transportation
allowances. From information collected
E:\FR\FM\01AUN1.SGM
01AUN1
45056
Federal Register / Vol. 73, No. 149 / Friday, August 1, 2008 / Notices
on Form MMS–4110, Oil Transportation
Allowance Report, MMS verifies
transportation allowances during the
product valuation verification to
determine if the lessee reported and
paid the proper royalty amount. The
MMS and tribal personnel evaluate
whether the transportation allowances
reported and claimed by lessees are
within regulatory allowance limitations.
Indian Gas
The regulations apply to all gas
production from Indian oil and gas
leases, except leases on the Osage
Indian Reservation. Most Indian leases
contain the requirement to perform
accounting for comparison (dual
accounting) for gas produced from the
lease. Lessees must elect to perform
actual dual accounting as defined in 30
CFR 206.176 or alternative dual
accounting as defined in 30 CFR
206.173. Lessees use Form MMS–4410,
Accounting for Comparison [Dual
Accounting], to certify that dual
accounting is not required on an Indian
lease or to make an election for actual
or alternative dual accounting for Indian
leases.
The regulations require lessees to
submit Form MMS–4411, Safety Net
Report, when gas production from an
Indian oil or gas lease is sold beyond the
first index pricing point. The safety net
calculation establishes the minimum
value, for royalty purposes, of natural
gas production from Indian oil and gas
4393. This form provides MMS with the
data necessary to make a decision
whether to approve or deny the request
and track deductions on royalty reports.
leases. This reporting requirement
ensures that Indian lessors receive all
royalties due and aids MMS compliance
efforts.
The MMS and tribal personnel use the
information collected on Form MMS–
4295, Gas Transportation Allowance
Report, to evaluate whether
transportation allowances reported
under a non-arm’s-length contract or no
contract are reasonable, and actual costs
are within regulatory allowance
limitations.
The MMS and tribal personnel use the
information collected on Form MMS–
4109, Gas Processing Allowance
Summary Report, to evaluate whether
processing allowances reported under a
non-arm’s-length contract or no contract
are reasonable, and actual costs are
within regulatory allowance limitations.
Summary
The MMS is requesting OMB’s
approval to continue to collect this
information. Not collecting this
information would limit the Secretary’s
ability to discharge his/her duties and
may also result in loss of royalty
payments to Indian tribes and
individual Indian mineral owners.
Proprietary information submitted to
MMS under this collection is protected,
and no items of a sensitive nature are
collected. The requirement to respond is
mandatory for Form MMS–4411, Safety
Net Report, when certain circumstances
exist. For all other forms in this
collection, the requirement to respond is
voluntary; i.e., a response is required to
obtain a benefit.
Frequency of Response: Annually and
on occasion.
Estimated Number and Description of
Respondents: 302 Indian lessees.
Estimated Annual Reporting and
Recordkeeping ‘‘Hour’’ Burden: 1,074
hours.
We have not included in our
estimates certain requirements
performed in the normal course of
business and considered usual and
customary. The following chart shows
the estimated burden hours by CFR
section and paragraph:
Indian Oil and Gas
Form MMS–4393, Request to Exceed
Regulatory Allowance Limitation, is
used for both Federal and Indian leases.
Most of the burden hours are incurred
on Federal leases; therefore, the form is
approved under ICR 1010–0136,
pertaining to Federal oil and gas leases.
However, we include a discussion of the
form in this ICR, as well as the burden
hours for Indian leases. To request
permission to exceed a regulatory
allowance limit, lessees must submit a
letter to MMS explaining why a higher
allowance limit is necessary and
provide supporting documentation,
including a completed Form MMS–
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS
30 CFR
Reporting and recordkeeping requirement
Average number of annual
responses
Hour burden
Annual burden
hours
202—ROYALTIES
Subpart C—Federal and Indian Oil
202.101 ...............................
Standards for reporting and paying royalties.
Oil volumes are to be reported in barrels of clean oil of 42
standard U.S. gallons (231 cubic inches each) at 60 °F.
* * *
Burden covered under OMB Control Number
1010–0140 (expires 11/30/2009). Burden
covered under § 210.52.
Subpart J—Gas Production From Indian Leases
How do I determine the volume of production for which I
must pay royalty if my lease is not in an approved Federal unit or communitization agreement (AFA)?
(b) You and all other persons paying royalties on the lease
must report and pay royalties based on your takes. * * *
202.551(c) ...........................
mstockstill on PROD1PC66 with NOTICES
202.551(b) ..........................
(c) You and all other persons paying royalties on the lease
may ask MMS for permission * * *
202.558(a) and (b) ..............
What standards do I use to report and pay royalties on
gas?
(a) You must report gas volumes as follows: * * *
(b) You must report residue gas and gas plant product volumes as follows: * * *
VerDate Aug<31>2005
19:39 Jul 31, 2008
Jkt 214001
PO 00000
Frm 00100
Fmt 4703
Sfmt 4703
Burden covered under OMB Control Number
1010–0140. Burden covered under § 210.52.
1
1
Burden covered under OMB Control Number
1010–0140. Burden covered under § 210.52.
E:\FR\FM\01AUN1.SGM
01AUN1
1
45057
Federal Register / Vol. 73, No. 149 / Friday, August 1, 2008 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
30 CFR
Reporting and recordkeeping requirement
Hour burden
Average number of annual
responses
Annual burden
hours
206—PRODUCT VALUATION
Subpart B—Indian Oil
Transportation allowances—general.
(b)(2) Upon request of a lessee, MMS may approve a transportation allowance deduction in excess of the limitation prescribed by paragraph (b)(1) of this section. * * * An application for exception (using Form MMS–4393, Request to Exceed Regulatory Allowance Limitation) must contain all relevant and supporting documentation necessary for MMS to
make a determination. * * *
Burden covered under OMB Control Number
1010–0136 (expires 06/30/2009).
206.57(a)(1)(i) .....................
Determination of transportation allowances.
(a) Arm’s-length transportation contracts.
(1)(i) * * * The lessee shall have the burden of demonstrating
that its contract is arm’s-length.
AUDIT PROCESS. See note.
206.57(a)(1)(i) .....................
(a) Arm’s-length transportation contracts.
(1)(i) * * * Before any deduction may be taken, the lessee
must submit a completed page one of Form MMS–4110
(and Schedule 1), Oil Transportation Allowance Report * * *
Burden covered under § 206.57(c)(1)(i) and (iii).
206.57(a)(1)(iii) ...................
(a) Arm’s-length transportation contracts.
(1)(iii) * * * When MMS determines that the value of the
transportation may be unreasonable, MMS will notify the
lessee and give the lessee an opportunity to provide written
information justifying the lessee’s transportation costs.
AUDIT PROCESS. See note.
206.57(a)(2)(i) .....................
(a) Arm’s-length transportation contracts.
(2)(i) * * * Except as provided in this paragraph, no allowance
may be taken for the costs of transporting lease production
which is not royalty-bearing without MMS approval.
Burden covered under § 206.57(a)(3).
206.57(a)(2)(ii) ....................
(a) Arm’s-length transportation contracts.
(2)(ii) Notwithstanding the requirements of paragraph (i), the
lessee may propose to MMS a cost allocation method on
the basis of the values of the products transported. * * *
20
1
20
206.57(a)(3) ........................
(a) Arm’s-length transportation contracts.
(3) If an arm’s-length transportation contract includes both
gaseous and liquid products, and the transportation costs
attributable to each product cannot be determined from the
contract, the lessee shall propose an allocation procedure to
MMS. * * * The lessee shall submit all available data to
support its proposal. * * *
40
1
40
206.57(b)(1) ........................
(b) Non-arm’s-length or no contract.
(1) * * * A transportation allowance may be claimed retroactively for a period of not more than 3 months prior to the
first day of the month that Form MMS–4110 is filed with
MMS, unless MMS approves a longer period upon a showing of good cause by the lessee. * * *
Burden covered under § 206.57(c)(2)(i), and
(c)(2)(iii).
206.57(b)(1) ........................
(b) Non-arm’s-length or no contract.
(1) * * * When necessary or appropriate, MMS may direct a
lessee to modify its actual transportation allowance deduction.
Burden covered under OMB Control Number
1010–0140. Burden covered under § 210.52.
206.57(b)(2)(iv) ...................
mstockstill on PROD1PC66 with NOTICES
206.56(b)(2) ........................
(b) Non-arm’s-length or no contract.
(2)(iv) * * * After a lessee has elected to use either method
for a transportation system, the lessee may not later elect to
change to the other alternative without approval of MMS.
20
1
20
206.57(b)(2)(iv)(A) ..............
(b) Non-arm’s-length or no contract.
(2)(iv)(A) * * * After an election is made, the lessee may not
change methods without MMS approval. * * *
20
1
20
VerDate Aug<31>2005
19:39 Jul 31, 2008
Jkt 214001
PO 00000
Frm 00101
Fmt 4703
Sfmt 4703
E:\FR\FM\01AUN1.SGM
01AUN1
45058
Federal Register / Vol. 73, No. 149 / Friday, August 1, 2008 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Average number of annual
responses
Annual burden
hours
40
1
40
(b) Non-arm’s-length or no contract.
(3)(ii) Notwithstanding the requirements of paragraph (i), the
lessee may propose to MMS a cost allocation method on
the basis of the values of the products transported. * * *
20
1
20
206.57(b)(4) ........................
(b) Non-arm’s-length or no contract.
(4) Where both gaseous and liquid products are transported
through the same transportation system, the lessee shall
propose a cost allocation procedure to MMS. * * * The lessee shall submit all available data to support its proposal.
* * *
20
1
20
206.57(b)(5) ........................
(b) Non-arm’s-length or no contract.
(5) A lessee may apply to MMS for an exception from the requirement that it compute actual costs in accordance with
paragraphs (b)(1) through (b)(4) of this section. * * *
20
1
20
206.57(c)(1)(i) .....................
(c) Reporting requirements.
(1) Arm’s-length contracts. (i) With the exception of those
transportation allowances specified in paragraphs (c)(1)(v)
and (c)(1)(vi) of this section, the lessee shall submit page
one of the initial Form MMS–4110 (and Schedule 1), Oil
Transportation Allowance Report, prior to, or at the same
time as, the transportation allowance determined, under an
arm’s-length contract, is reported on Form MMS–2014, Report of Sales and Royalty Remittance. * * *
4
4
16
206.57(c)(1)(iii) ....................
(c) Reporting requirements.
(1) Arm’s-length contracts. (iii) After the initial reporting period
and for succeeding reporting periods, lessees must submit
page one of Form MMS–4110 (and Schedule 1) within 3
months after the end of the calendar year, or after the applicable contract or rate terminates or is modified or amended,
whichever is earlier, unless MMS approves a longer period
(during which period the lessee shall continue to use the allowance from the previous reporting period).
4
4
16
206.57(c)(1)(iv) ...................
(c) Reporting requirements.
(1) Arm’s-length contracts. (iv) MMS may require that a lessee
submit arm’s-length transportation contracts, production
agreements, operating agreements, and related documents.
Documents shall be submitted within a reasonable time, as
determined by MMS.
AUDIT PROCESS. See note.
206.57(c)(2)(i) .....................
(c) Reporting requirements.
(2) Non-arm’s-length or no contract.
(i) With the exception of those transportation allowances specified in paragraphs (c)(2)(v), (c)(2)(vii) and (c)(2)(viii) of this
section, the lessee shall submit an initial Form MMS–4110
prior to, or at the same time as, the transportation allowance
determined under a non-arm’s-length contract or no-contract
situation is reported on Form MMS–2014. * * * The initial
report may be based upon estimated costs.
6
1
6
Reporting and recordkeeping requirement
206.57(b)(3)(i) .....................
(b) Non-arm’s-length or no contract.
(3)(i) * * * Except as provided in this paragraph, the lessee
may not take an allowance for transporting lease production
which is not royalty bearing without MMS approval.
206.57(b)(3)(ii) ....................
mstockstill on PROD1PC66 with NOTICES
30 CFR
VerDate Aug<31>2005
19:39 Jul 31, 2008
Jkt 214001
PO 00000
Frm 00102
Fmt 4703
Sfmt 4703
Hour burden
E:\FR\FM\01AUN1.SGM
01AUN1
45059
Federal Register / Vol. 73, No. 149 / Friday, August 1, 2008 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Average number of annual
responses
Hour burden
Annual burden
hours
3
18
30 CFR
Reporting and recordkeeping requirement
206.57(c)(2)(iii) ....................
(c) Reporting requirements.
(2) Non-arm’s-length or no contract.
(iii) For calendar-year reporting periods succeeding the initial
reporting period, the lessee shall submit a completed Form
MMS–4110 containing the actual costs for the previous reporting period. If oil transportation is continuing, the lessee
shall include on Form MMS–4110 its estimated costs for the
next calendar year. * * * MMS must receive the Form
MMS–4110 within 3 months after the end of the previous reporting period, unless MMS approves a longer period (during which period the lessee shall continue to use the allowance from the previous reporting period).
206.57(c)(2)(iv) ...................
(c) Reporting requirements.
(2) Non-arm’s-length or no contract.
(iv) For new transportation facilities or arrangements, the lessee’s initial Form MMS–4110 shall include estimates of the
allowable oil transportation costs for the applicable period.
* * *
Burden covered under § 206.57(c)(2)(i).
206.57(c)(2)(v) ....................
(c) Reporting requirements.
(2) Non-arm’s-length or no contract.
(v) * * * only those allowances that have been approved by
MMS in writing * * *
Burden covered under § 206.57(c)(2)(i).
206.57(c)(2)(vi) ...................
(c) Reporting requirements.
(2) Non-arm’s-length or no contract.
(vi) Upon request by MMS, the lessee shall submit all data
used to prepare its Form MMS–4110. The data shall be provided within a reasonable period of time, as determined by
MMS.
AUDIT PROCESS. See note.
206.57(c)(4) and (e)(2) .......
(c) Reporting requirements.
(4) Transportation allowances must be reported as a separate
line item on Form MMS–2014 * * *
(e) Adjustments.
(2) For lessees transporting production from Indian leases, the
lessee must submit a corrected Form MMS–2014 to reflect
actual costs * * *
Burden covered under OMB Control Number
1010–0140. Burden covered under § 210.52.
206.59 .................................
May I ask MMS for valuation guidance?
You may ask MMS for guidance in determining value. You
may propose a value method to MMS. Submit all available
data related to your proposal and any additional information
MMS deems necessary. * * *
206.61(a) and (b) ................
What records must I keep and produce?
(a) On request, you must make available sales, volume, and
transportation data for production you sold, purchased, or
obtained from the field or area. You must make this data
available to MMS, Indian representatives, or other authorized persons.
(b) You must retain all data relevant to the determination of
royalty value. * * *
6
20
1
20
25
100
AUDIT PROCESS. See note.
206—PRODUCT VALUATION
Subpart E—Indian Gas
mstockstill on PROD1PC66 with NOTICES
206.172(b)(1)(ii) ..................
VerDate Aug<31>2005
19:39 Jul 31, 2008
How do I value gas produced from leases in an index
zone?
(b) Valuing residue gas and gas before processing.
(1)(ii) Gas production that you certify on Form MMS–4410
* * * is not processed before it flows into a pipeline with an
index but which may be processed later * * *
Jkt 214001
PO 00000
Frm 00103
Fmt 4703
Sfmt 4703
E:\FR\FM\01AUN1.SGM
4
01AUN1
45060
Federal Register / Vol. 73, No. 149 / Friday, August 1, 2008 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Average number of annual
responses
10
30
206.172(e)(6)(i) and (iii) ......
(e) Determining the minimum value for royalty purposes of gas
sold beyond the first index pricing point.
(6)(i) You must report the safety net price for each index zone
to MMS on Form MMS–4411, Safety Net Report, no later
than June 30 following each calendar year; * * *
(iii) MMS may order you to amend your safety net price within
one year from the date your Form MMS–4411 is due or is
filed, whichever is later. * * *
206.172(e)(6)(ii) ..................
(e) Determining the minimum value for royalty purposes of gas
sold beyond the first index pricing point.
(6)(ii) You must pay and report on Form MMS–2014 additional
royalties due no later than June 30 following each calendar
year * * *
206.172(f)(1)(ii), (f)(2), and
(f)(3).
(f) Excluding some or all tribal leases from valuation under this
section.
(1) An Indian tribe may ask MMS to exclude some or all of its
leases from valuation under this section. * * *
(ii) If an Indian tribe requests exclusion from an index zone for
less than all of its leases, MMS will approve the request
only if the excluded leases may be segregated into one or
more groups based on separate fields within the reservation.
(2) An Indian tribe may ask MMS to terminate exclusion of its
leases from valuation under this section. * * *
(3) The Indian tribe’s request to MMS under either paragraph
(f)(1) or (2) of this section must be in the form of a tribal
resolution. * * *
40
1
40
206.173(a)(1) ......................
How do I calculate the alternative methodology for dual
accounting?
(a) Electing a dual accounting method.
(1) * * * You may elect to perform the dual accounting calculation according to either 206.176(a) (called actual dual
accounting), or paragraph (b) of this section (called the alternative methodology for dual accounting).
2
19
38
206.173(a)(2) ......................
(a) Electing a dual accounting method.
(2) You must make a separate election to use the alternative
methodology for dual accounting for your Indian leases in
each MMS-designated area. * * *
Burden covered under § 206.173(a)(1).
206.174(a)(4)(ii) ..................
How do I value gas production when an index-based
method cannot be used?
(a) Situations in which an index-based method cannot be
used.
(4)(ii) If the major portion value is higher, you must submit an
amended Form MMS–2014 to MMS by the due date specified in the written notice from MMS of the major portion
value. * * *
Burden covered under OMB Control Number
1010–0140. Burden covered under § 210.52.
206.174(b)(1)(i) and (iii);
(b)(2); (d)(2).
mstockstill on PROD1PC66 with NOTICES
Reporting and recordkeeping requirement
(b) Arm’s-length contracts.
(1)(i) You have the burden of demonstrating that your contract
is arm’s-length. * * *
(iii) * * * In these circumstances, MMS will notify you and give
you an opportunity to provide written information justifying
your value. * * *
(2) MMS may require you to certify that your arm’s-length contract provisions include all of the consideration the buyer
pays, either directly or indirectly, for the gas, residue gas, or
gas plant product.
(d) Supporting data.
(2) You must make all such data available upon request to the
authorized MMS or Indian representatives, to the Office of
the Inspector General of the Department, or other authorized persons. * * *
AUDIT PROCESS. See note.
VerDate Aug<31>2005
19:39 Jul 31, 2008
Jkt 214001
PO 00000
Frm 00104
Fmt 4703
Sfmt 4703
Hour burden
Annual burden
hours
30 CFR
3
Burden covered under OMB Control Number
1010–0140. Burden covered under § 210.52.
E:\FR\FM\01AUN1.SGM
01AUN1
45061
Federal Register / Vol. 73, No. 149 / Friday, August 1, 2008 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Average number of annual
responses
Hour burden
Annual burden
hours
30 CFR
Reporting and recordkeeping requirement
206.174(d) ..........................
(d) Supporting data. If you determine the value of production
under paragraph (c) of this section, you must retain all data
relevant to determination of royalty value.
206.174(f) ...........................
(f) Value guidance. You may ask MMS for guidance in determining value. You may propose a valuation method to
MMS. Submit all available data related to your proposal and
any additional information MMS deems necessary. * * *
40
1
40
206.175(d)(4) ......................
How do I determine quantities and qualities of production
for computing royalties?
(d)(4) You may request MMS approval of other methods for
determining the quantity of residue gas and gas plant products allocable to each lease. * * *
20
1
20
206.176(b) ..........................
How do I perform accounting for comparison?
(b) If you are required to account for comparison, you may
elect to use the alternative dual accounting methodology
provided for in § 206.173 instead of the provisions in paragraph (a) of this section.
Burden covered under § 206.173(a)(1).
206.176(c) ...........................
(c) * * * If you do not perform dual accounting, you must certify to MMS that gas flows into such a pipeline before it is
processed.
Burden covered under § 206.172(b)(1)(ii).
Burden covered under OMB Control Number
1010–0140.
Transportation Allowances
What general requirements regarding transportation allowances apply to me?
(c)(2) If you ask MMS, MMS may approve a transportation allowance deduction in excess of the limitation in paragraph
(c)(1) of this section. * * *
(3) Your application for exception (using Form MMS–4393,
Request to Exceed Regulatory Allowance Limitation) must
contain all relevant and supporting documentation necessary for MMS to make a determination.
4
1
4
206.178(a)(1)(i) ...................
How do I determine a transportation allowance?
(a) Determining a transportation allowance under an arm’slength contract.
(1)(i) * * * You are required to submit to MMS a copy of your
arm’s-length transportation contract(s) and all subsequent
amendments to the contract(s) within 2 months of the date
MMS receives your report which claims the allowance on
the Form MMS–2014.
1
25
25
206.178(a)(1)(iii) .................
(a) Determining a transportation allowance under an arm’slength contract.
(1)(iii) If MMS determines that the consideration paid under an
arm’s-length transportation contract does not reflect the
value of the transportation because of misconduct by or between the contracting parties * * * In these circumstances,
MMS will notify you and give you an opportunity to provide
written information justifying your transportation costs.
AUDIT PROCESS. See note.
206.178(a)(2)(i) and (ii) .......
mstockstill on PROD1PC66 with NOTICES
206.177(c)(2) and (c)(3) .....
(a) Determining a transportation allowance under an arm’slength contract.
(2)(i) * * * you cannot take an allowance for the costs of
transporting lease production that is not royalty bearing without MMS approval, or without lessor approval on tribal
leases.
(ii) As an alternative to paragraph (a)(2)(i) of this section, you
may propose to MMS a cost allocation method based on the
values of the products transported. * * *
1
20
VerDate Aug<31>2005
19:39 Jul 31, 2008
Jkt 214001
PO 00000
Frm 00105
Fmt 4703
Sfmt 4703
E:\FR\FM\01AUN1.SGM
20
01AUN1
45062
Federal Register / Vol. 73, No. 149 / Friday, August 1, 2008 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Average number of annual
responses
Annual burden
hours
40
1
40
(b) Determining a transportation allowance under a non-arm’slength contract or no contract.
(1)(ii) * * * You must submit the actual cost information to
support the allowance to MMS on Form MMS–4295, Gas
Transportation Allowance Report, within 3 months after the
end of the 12-month period to which the allowance applies.
* * *
15
3
45
206.178(b)(2)(iv) .................
(b) Determining a transportation allowance under a non-arm’slength contract or no contract.
(2)(iv) You may use either depreciation with a return on
undepreciated capital investment or a return on depreciable
capital investment. * * * you may not later elect to change
to the other alternative without MMS approval.
20
1
20
206.178(b)(2)(iv)(A) ............
(b) Determining a transportation allowance under a non-arm’slength contract or no contract.
(2)(iv)(A) * * * Once you make an election, you may not
change methods without MMS approval. * * *
20
1
20
206.178(b)(3)(i) ...................
(b) Determining a transportation allowance under a non-arm’slength contract or no contract.
(3)(i) * * * Except as provided in this paragraph, you may not
take an allowance for transporting a product that is not royalty bearing without MMS approval.
40
1
40
206.178(b)(3)(ii) ..................
(b) Determining a transportation allowance under a non-arm’slength contract or no contract.
(3)(ii) As an alternative to the requirements of paragraph
(b)(3)(i) of this section, you may propose to MMS a cost allocation method based on the values of the products transported. * * *
20
1
20
206.178(b)(5) ......................
(b) Determining a transportation allowance under a non-arm’slength contract or no contract.
(5) If you transport both gaseous and liquid products through
the same transportation system, you must propose a cost
allocation procedure to MMS. * * * You are required to submit all relevant data to support your proposal. * * *
40
1
40
206.178(d)(1) ......................
(d) Reporting your transportation allowance.
(1) If MMS requests, you must submit all data used to determine your transportation allowance * * *
AUDIT PROCESS. See note.
206.178(d)(2), (e), and (f)(1)
(d) Reporting your transportation allowance.
(2) You must report transportation allowances as a separate
entry on Form MMS–2014. * * *
(e) Adjusting incorrect allowances. If for any month the transportation allowance you are entitled to is less than the
amount you took on Form MMS–2014, you are required to
report and pay additional royalties due, plus interest computed under 30 CFR 218.54 from the first day of the first
month you deducted the improper transportation allowance
until the date you pay the royalties due. * * *
(f) Determining allowable costs for transportation allowances.
* * *
(1) Firm demand charges paid to pipelines. * * * You must
modify the Form MMS–2014 by the amount received or
credited for the affected reporting period.
Burden covered under OMB Control Number
1010–0140. Burden covered under § 210.52.
Reporting and recordkeeping requirement
206.178(a)(3)(i) and (ii) .......
(a) Determining a transportation allowance under an arm’slength contract.
(3)(i) If your arm’s-length transportation contract includes both
gaseous and liquid products and the transportation costs attributable to each cannot be determined from the contract,
you must propose an allocation procedure to MMS. * * *
(ii) You are required to submit all relevant data to support your
allocation proposal. * * *
206.178(b)(1)(ii) ..................
mstockstill on PROD1PC66 with NOTICES
30 CFR
VerDate Aug<31>2005
19:39 Jul 31, 2008
Jkt 214001
PO 00000
Frm 00106
Fmt 4703
Sfmt 4703
Hour burden
E:\FR\FM\01AUN1.SGM
01AUN1
45063
Federal Register / Vol. 73, No. 149 / Friday, August 1, 2008 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
30 CFR
Reporting and recordkeeping requirement
Average number of annual
responses
Hour burden
Annual burden
hours
15
15
Processing Allowances
How do I determine an actual processing allowance?
(a) Determining a processing allowance if you have an arm’slength processing contract.
(1)(i) * * * You have the burden of demonstrating that your
contract is arm’s-length. You are required to submit to MMS
a copy of your arm’s-length contract(s) and all subsequent
amendments to the contract(s) within 2 months of the date
MMS receives your first report that deducts the allowance
on the Form MMS–2014.
1
206.180(a)(1)(iii) .................
(a) Determining a processing allowance if you have an arm’slength processing contract.
(1)(iii) If MMS determines that the consideration paid under an
arm’s-length processing contract does not reflect the value
of the processing because of misconduct by or between the
contracting parties * * * In these circumstances, MMS will
notify you and give you an opportunity to provide written information justifying your processing costs.
AUDIT PROCESS. See note.
206.180(a)(3) ......................
(a) Determining a processing allowance if you have an arm’slength processing contract.
(3) If your arm’s-length processing contract includes more than
one gas plant product and the processing costs attributable
to each product cannot be determined from the contract,
you must propose an allocation procedure to MMS. * * *
You are required to submit all relevant data to support your
proposal. * * *
40
1
40
206.180(b)(1)(ii) ..................
(b) Determining a processing allowance if you have a nonarm’s-length contract or no contract.
(1)(ii) * * * You must submit the actual cost information to
support the allowance to MMS on Form MMS–4109, Gas
Processing Allowance Summary Report, within 3 months
after the end of the 12-month period for which the allowance
applies. * * *
20
5
100
206.180(b)(2)(iv) .................
(b) Determining a processing allowance if you have a nonarm’s-length contract or no contract.
(2)(iv) You may use either depreciation with a return on
undepreciable capital investment or a return on depreciable
capital investment.* * * you may not later elect to change to
the other alternative without MMS approval.
20
1
20
206.180(b)(2)(iv)(A) ............
(b) Determining a processing allowance if you have a nonarm’s-length contract or no contract.
(2)(iv)(A) * * * Once you make an election, you may not
change methods without MMS approval. * * *
20
1
20
206.180(b)(3) ......................
(b) Determining a processing allowance if you have a nonarm’s-length contract or no contract.
(3) Your processing allowance under this paragraph (b) must
be determined based upon a calendar year or other period if
you and MMS agree to an alternative.
20
1
20
206.180(c)(1) ......................
mstockstill on PROD1PC66 with NOTICES
206.180(a)(1)(i) ...................
(c) Reporting your processing allowance.
(1) If MMS requests, you must submit all data used to determine your processing allowance. * * *
VerDate Aug<31>2005
19:39 Jul 31, 2008
Jkt 214001
PO 00000
Frm 00107
Fmt 4703
Sfmt 4703
AUDIT PROCESS. See note.
E:\FR\FM\01AUN1.SGM
01AUN1
45064
Federal Register / Vol. 73, No. 149 / Friday, August 1, 2008 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
30 CFR
Reporting and recordkeeping requirement
Hour burden
206.180(c)(2) and (d) ..........
(c) Reporting your processing allowance.
(2) You must report gas processing allowances as a separate
entry on the Form MMS–2014. * * *
(d) Adjusting incorrect processing allowances. If for any month
the gas processing allowance you are entitled to is less than
the amount you took on Form MMS–2014, you are required
to pay additional royalties, plus interest computed under 30
CFR 218.54 from the first day of the first month you deducted a processing allowance until the date you pay the
royalties due. * * *
206.181(c) ...........................
How do I establish processing costs for dual accounting
purposes when I do not process the gas?
(c) A proposed comparable processing fee submitted to either
the tribe and MMS (for tribal leases) or MMS (for allotted
leases) with your supporting documentation submitted to
MMS. If MMS does not take action on your proposal within
120 days, the proposal will be deemed to be denied and
subject to appeal to the MMS Director under 30 CFR part
290.
Average number of annual
responses
Annual burden
hours
Burden covered under OMB Control Number
1010–0140. Burden covered under § 210.52.
40
1
40
140
1,074
207—SALES AGREEMENTS OR CONTRACTS GOVERNING THE DISPOSAL OF LEASE PRODUCTS
Subpart A—General Provisions
207.4(b) ...............................
Contracts made pursuant to old form leases.
(b) The stipulation, the substance of which must be included in
the contract, or be made the subject matter of a separate instrument properly identifying the leases affected thereby, is
as follows: * * *
AUDIT PROCESS. See note.
207.5 ...................................
Contract and sales agreement retention.
Copies of all sales contracts, posted price bulletins, etc., and
copies of all agreements, other contracts, or other documents which are relevant to the valuation of production are
to be maintained by the lessee and made available upon request during normal working hours to authorized MMS,
State or Indian representatives, other MMS or BLM officials,
auditors of the General Accounting Office, or other persons
authorized to receive such documents, or shall be submitted
to MMS within a reasonable period of time, as determined
by MMS. Any oral sales arrangement negotiated by the lessee must be placed in written form and retained by the lessee. Records shall be retained in accordance with 30 CFR
part 212.
AUDIT PROCESS. See note.
Total Burden ...................................................................................................................................................
mstockstill on PROD1PC66 with NOTICES
Note: AUDIT PROCESS—The Office of Regulatory Affairs determined that the audit process is exempt from the Paperwork Reduction Act of
1995 because MMS staff asks non-standard questions to resolve exceptions.
Estimated Annual Reporting and
Recordkeeping ‘‘Non-hour’’ Cost
Burden: We have identified no ‘‘nonhour’’ cost 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
VerDate Aug<31>2005
19:39 Jul 31, 2008
Jkt 214001
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.
PO 00000
Frm 00108
Fmt 4703
Sfmt 4703
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.
E:\FR\FM\01AUN1.SGM
01AUN1
Federal Register / Vol. 73, No. 149 / Friday, August 1, 2008 / Notices
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 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 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
at https://www.mrm.mms.gov/Laws_R_D/
FRNotices/FRInfColl.htm. We also will
make copies of the comments available
for public view, 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, be
advised 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 from
public view your personal identifying
information, we cannot guarantee that
we will be able to do so.
MMS Information Collection
Clearance Officer: Arlene Bajusz (202)
208–7744.
Dated: July 21, 2008.
Richard J. Adamski,
Acting Associate Director for Minerals
Revenue Management.
[FR Doc. E8–17730 Filed 7–31–08; 8:45 am]
BILLING CODE 4310–MR–P
DEPARTMENT OF THE INTERIOR
mstockstill on PROD1PC66 with NOTICES
Minerals Management Service
Request for Comments on the
Preparation of a 5-Year Outer
Continental Shelf (OCS) Oil and Gas
Leasing Program
Minerals Management Service
(MMS), Interior.
AGENCY:
ACTION:
Request for Comments.
VerDate Aug<31>2005
19:39 Jul 31, 2008
Jkt 214001
SUMMARY: Section 18 of the OCS Lands
Act (43 U.S.C. 1344) requires the
Department of the Interior to solicit
information from interested and affected
parties during the preparation of a 5year OCS oil and gas leasing program.
The current 5-year program covers the
period July 2007 to June 30, 2012. The
Department’s MMS is soliciting
information on whether to begin a new
Program for mid-2010 to mid-2015
(approximate dates) to succeed the
current one.
Section 18 requires completion of a
multi-step process of public
consultation and analysis before the
Secretary of the Interior may approve a
new 5-Year Program. The section 18
process includes the following required
steps: This initial solicitation of
comments; development of a draft
proposed program, a proposed program,
a proposed final program; and
Secretarial approval. If the decision is
made to prepare a new 5-Year Program,
the MMS will also prepare appropriate
NEPA analysis documents. The public
will have opportunities to comment on
the draft proposed program, the draft
EIS or other NEPA documents, and the
proposed program. This Notice in
particular requests comments on areas
that are restricted from leasing by
Congressional Moratoria but were
removed from Presidential Withdrawal
on July 14, 2008.
DATES: The MMS must receive all
comments and information by
September 15, 2008.
Public Comment Procedure
The MMS will accept comments in
one of two formats: By mail or our
Internet commenting system. Please
submit your comments using only one
of these formats, and include full names
and addresses. Comments submitted by
other means may not be considered. We
will not consider anonymous
comments, and we will make available
for inspection in their entirety all
comments submitted by organizations
and businesses, or by individuals
identifying themselves as
representatives of organizations and
businesses.
Our practice is to make comments,
including the names and home
addresses of respondents, available for
public review. An individual
commenter may ask that we withhold
from the public record, his or her name,
home address, or both, and we will
honor such a request to the extent
allowable by law. If you submit
comments and desire that we withhold
such information, you must so state
prominently at the beginning of your
submission.
PO 00000
Frm 00109
Fmt 4703
Sfmt 4703
45065
Mail comments and
information on the program to: Ms.
Renee Orr, 5-Year Program Manager,
Minerals Management Service (MS–
4010), 381 Elden Street, Herndon,
Virginia 20170. Environmental
comments and information relevant to
oil and gas development on the OCS
should be sent to: Mr. James F. Bennett,
Chief, Branch of Environmental
Assessment, Minerals Management
Service (MS–4042), 381 Elden Street,
Herndon, Virginia 20170. If you submit
any privileged or proprietary
information to be treated as
confidential, please mark the envelope,
‘‘Contains Confidential Information’’.
Internet: The MMS will accept
comments submitted to our electronic
public comment system. (Public
Connect). This system can be accessed
at https://www.mms.gov. We also will
provide access to information
concerning the 5-Year Program at the
MMS Internet Web site (https://
www.mms.gov) and copies or summaries
of comments we receive in response to
this notice will be available in the MMS
Public Connect database.
FOR FURTHER INFORMATION CONTACT: Ms.
Renee Orr, 5-Year Program Manager, at
(703) 787–1215.
SUPPLEMENTARY INFORMATION: The MMS
requests comments from states; local
and tribal governments; American
Indian and Native Alaskan
organizations; Federal agencies;
environmental and fish and wildlife
organizations; the oil and gas industry;
other interested organizations; and other
parties on whether to begin the
preparation of a new 5-Year Program.
MMS is seeking a wide range of
information, including marine
productivity, environmental sensitivity
and resource assessment. The 5-Year
Program enables the Federal
Government, states, industry, and other
interested parties to plan for steps
proposed to lead to OCS oil and gas
lease sales. The Department will make
a decision on whether to proceed with
a specific lease sale on the schedule,
only after meeting all of the applicable
requirements of the OCS Lands Act, the
National Environmental Policy Act
(NEPA), and other statutes.
The OCS is a significant source of oil
and gas for the Nation’s energy supply.
On a per day basis, the OCS currently
produces about 1.35 million barrels of
oil and almost 8 billion cubic feet of
natural gas. This represents
approximately 27 percent of domestic
oil production and 15 percent of natural
gas production.
The MMS’s oversight and regulatory
frameworks ensure production and
ADDRESSES:
E:\FR\FM\01AUN1.SGM
01AUN1
]]>Agencies
[Federal Register Volume 73, Number 149 (Friday, August 1, 2008)]
[Notices]
[Pages 45055-45065]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-17730]
-----------------------------------------------------------------------
DEPARTMENT OF THE INTERIOR
Minerals Management Service
[Docket No. MMS-2008-MRM-0029]
Agency Information Collection Activities: Proposed Collection,
Comment Request
AGENCY: Minerals Management Service (MMS), Interior.
ACTION: Notice of an extension of a currently approved information
collection (OMB Control Number 1010-0103).
-----------------------------------------------------------------------
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. We changed the title of this information collection request
(ICR) to meet OMB requirements. The new title of this ICR is ``30 CFR
Parts 202, 206, and 207, Indian Oil and Gas Valuation.''
DATES: Submit written comments on or before September 2, 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-0029'' 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 Hyla Hurst, Regulatory Specialist,
Minerals Management Service, Minerals Revenue Management, P.O. Box
25165, MS 302B2, Denver, Colorado 80225. Please reference ICR 1010-0103
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 1010-0103 in your comments.
FOR FURTHER INFORMATION CONTACT: Hyla Hurst, telephone (303) 231-3495,
or e-mail Hyla.Hurst@mms.gov. You may also contact Hyla Hurst 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 Parts 202, 206, and 207, Indian Oil and Gas
Valuation.
OMB Control Number: 1010-0103.
Bureau Form Number: Forms MMS-4109, MMS-4110, MMS-4295, MMS-4410,
and MMS-4411.
Abstract: The Secretary of the U.S. Department of the Interior
(Secretary) is responsible for matters relevant to mineral resource
development on Federal and Indian lands and the Outer Continental Shelf
(OCS). Under the Mineral Leasing Act (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), the Secretary is
responsible for (1) Managing the production of minerals from Federal
and Indian lands and the OCS; (2) collecting royalties and other
mineral revenues from lessees who produce minerals; and (3)
distributing the funds collected in accordance with applicable laws.
The Secretary also has a trust responsibility to manage Indian lands
and seek advice and information from Indian beneficiaries. The MMS
performs the minerals revenue management functions and assists the
Secretary in carrying out the Department's trust responsibility for
Indian lands. Applicable laws pertaining to mineral royalties are
located on our Web site at https://www.mrm.mms.gov/Laws_R_D/
PublicLawsAMR.htm.
Regulations at 30 CFR part 202, subparts C and J, pertain to
royalties; part 206, subparts B and E, govern the valuation of oil and
gas produced from leases on Indian lands; and part 207 pertains to
recordkeeping. Indian tribes and individual Indian mineral owners
receive all royalties generated from their lands. Determining product
valuation is essential to ensure that Indian tribes and individual
Indian mineral owners receive payment on the full value of the minerals
removed from their lands. Failure to collect the data described in this
information collection could result in the undervaluation of leased
minerals on Indian lands. All data reported is subject to subsequent
audit and adjustment.
Indian Oil
The regulations apply to all oil production from Indian oil and gas
leases, except leases on the Osage Indian Reservation. The regulations
provide that lessees determine the value of oil based on the higher of:
(1) The gross proceeds under an arm's-length contract, or (2) major
portion analysis. These oil valuation methods are eligible for
applicable transportation allowances. From information collected
[[Page 45056]]
on Form MMS-4110, Oil Transportation Allowance Report, MMS verifies
transportation allowances during the product valuation verification to
determine if the lessee reported and paid the proper royalty amount.
The MMS and tribal personnel evaluate whether the transportation
allowances reported and claimed by lessees are within regulatory
allowance limitations.
Indian Gas
The regulations apply to all gas production from Indian oil and gas
leases, except leases on the Osage Indian Reservation. Most Indian
leases contain the requirement to perform accounting for comparison
(dual accounting) for gas produced from the lease. Lessees must elect
to perform actual dual accounting as defined in 30 CFR 206.176 or
alternative dual accounting as defined in 30 CFR 206.173. Lessees use
Form MMS-4410, Accounting for Comparison [Dual Accounting], to certify
that dual accounting is not required on an Indian lease or to make an
election for actual or alternative dual accounting for Indian leases.
The regulations require lessees to submit Form MMS-4411, Safety Net
Report, when gas production from an Indian oil or gas lease is sold
beyond the first index pricing point. The safety net calculation
establishes the minimum value, for royalty purposes, of natural gas
production from Indian oil and gas leases. This reporting requirement
ensures that Indian lessors receive all royalties due and aids MMS
compliance efforts.
The MMS and tribal personnel use the information collected on Form
MMS-4295, Gas Transportation Allowance Report, to evaluate whether
transportation allowances reported under a non-arm's-length contract or
no contract are reasonable, and actual costs are within regulatory
allowance limitations.
The MMS and tribal personnel use the information collected on Form
MMS-4109, Gas Processing Allowance Summary Report, to evaluate whether
processing allowances reported under a non-arm's-length contract or no
contract are reasonable, and actual costs are within regulatory
allowance limitations.
Indian Oil and Gas
Form MMS-4393, Request to Exceed Regulatory Allowance Limitation,
is used for both Federal and Indian leases. Most of the burden hours
are incurred on Federal leases; therefore, the form is approved under
ICR 1010-0136, pertaining to Federal oil and gas leases. However, we
include a discussion of the form in this ICR, as well as the burden
hours for Indian leases. To request permission to exceed a regulatory
allowance limit, lessees must submit a letter to MMS explaining why a
higher allowance limit is necessary and provide supporting
documentation, including a completed Form MMS-4393. This form provides
MMS with the data necessary to make a decision whether to approve or
deny the request and track deductions on royalty reports.
Summary
The MMS is requesting OMB's approval to continue to collect this
information. Not collecting this information would limit the
Secretary's ability to discharge his/her duties and may also result in
loss of royalty payments to Indian tribes and individual Indian mineral
owners. Proprietary information submitted to MMS under this collection
is protected, and no items of a sensitive nature are collected. The
requirement to respond is mandatory for Form MMS-4411, Safety Net
Report, when certain circumstances exist. For all other forms in this
collection, the requirement to respond is voluntary; i.e., a response
is required to obtain a benefit.
Frequency of Response: Annually and on occasion.
Estimated Number and Description of Respondents: 302 Indian
lessees.
Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 1,074
hours.
We have not included in our estimates certain requirements
performed in the normal course of business and considered usual and
customary. The following chart shows the estimated burden hours by CFR
section and paragraph:
Respondents' Estimated Annual Burden Hours
----------------------------------------------------------------------------------------------------------------
Reporting and Average number
30 CFR recordkeeping Hour burden of annual Annual burden
requirement responses hours
----------------------------------------------------------------------------------------------------------------
202--ROYALTIES
Subpart C--Federal and Indian Oil
----------------------------------------------------------------------------------------------------------------
202.101................................. Standards for Burden covered under OMB Control Number 1010-
reporting and paying 0140 (expires 11/30/2009). Burden covered
royalties. under Sec. 210.52.
Oil volumes are to be
reported in barrels
of clean oil of 42
standard U.S. gallons
(231 cubic inches
each) at 60 [deg]F. *
* *
----------------------------------------------------------------------------------------------------------------
Subpart J--Gas Production From Indian Leases
----------------------------------------------------------------------------------------------------------------
202.551(b).............................. How do I determine the Burden covered under OMB Control Number 1010-
volume of production 0140. Burden covered under Sec. 210.52.
for which I must pay
royalty if my lease
is not in an approved
Federal unit or
communitization
agreement (AFA)?
(b) You and all other
persons paying
royalties on the
lease must report and
pay royalties based
on your takes. * * *
----------------------------------------------------------------------------------------------------------------
202.551(c).............................. (c) You and all other 1 1 1
persons paying
royalties on the
lease may ask MMS for
permission * * *
----------------------------------------------------------------------------------------------------------------
202.558(a) and (b)...................... What standards do I Burden covered under OMB Control Number 1010-
use to report and pay 0140. Burden covered under Sec. 210.52.
royalties on gas?
(a) You must report
gas volumes as
follows: * * *
(b) You must report
residue gas and gas
plant product volumes
as follows: * * *
----------------------------------------------------------------------------------------------------------------
[[Page 45057]]
206--PRODUCT VALUATION
Subpart B--Indian Oil
----------------------------------------------------------------------------------------------------------------
206.56(b)(2)............................ Transportation Burden covered under OMB Control Number 1010-
allowances--general. 0136 (expires 06/30/2009).
(b)(2) Upon request of
a lessee, MMS may
approve a
transportation
allowance deduction
in excess of the
limitation prescribed
by paragraph (b)(1)
of this section. * *
* An application for
exception (using Form
MMS-4393, Request to
Exceed Regulatory
Allowance Limitation)
must contain all
relevant and
supporting
documentation
necessary for MMS to
make a determination.
* * *
----------------------------------------------------------------------------------------------------------------
206.57(a)(1)(i)......................... Determination of AUDIT PROCESS. See note.
transportation
allowances.
(a) Arm's-length
transportation
contracts.
(1)(i) * * * The
lessee shall have the
burden of
demonstrating that
its contract is arm's-
length.
----------------------------------------------------------------------------------------------------------------
206.57(a)(1)(i)......................... (a) Arm's-length Burden covered under Sec. 206.57(c)(1)(i)
transportation and (iii).
contracts.
(1)(i) * * * Before
any deduction may be
taken, the lessee
must submit a
completed page one of
Form MMS-4110 (and
Schedule 1), Oil
Transportation
Allowance Report * *
*
----------------------------------------------------------------------------------------------------------------
206.57(a)(1)(iii)....................... (a) Arm's-length AUDIT PROCESS. See note.
transportation
contracts.
(1)(iii) * * * When
MMS determines that
the value of the
transportation may be
unreasonable, MMS
will notify the
lessee and give the
lessee an opportunity
to provide written
information
justifying the
lessee's
transportation costs.
----------------------------------------------------------------------------------------------------------------
206.57(a)(2)(i)......................... (a) Arm's-length Burden covered under Sec. 206.57(a)(3).
transportation
contracts.
(2)(i) * * * Except as
provided in this
paragraph, no
allowance may be
taken for the costs
of transporting lease
production which is
not royalty-bearing
without MMS approval.
----------------------------------------------------------------------------------------------------------------
206.57(a)(2)(ii)........................ (a) Arm's-length 20 1 20
transportation
contracts.
(2)(ii)
Notwithstanding the
requirements of
paragraph (i), the
lessee may propose to
MMS a cost allocation
method on the basis
of the values of the
products transported.
* * *
----------------------------------------------------------------------------------------------------------------
206.57(a)(3)............................ (a) Arm's-length 40 1 40
transportation
contracts.
(3) If an arm's-length
transportation
contract includes
both gaseous and
liquid products, and
the transportation
costs attributable to
each product cannot
be determined from
the contract, the
lessee shall propose
an allocation
procedure to MMS. * *
* The lessee shall
submit all available
data to support its
proposal. * * *
----------------------------------------------------------------------------------------------------------------
206.57(b)(1)............................ (b) Non-arm's-length Burden covered under Sec. 206.57(c)(2)(i),
or no contract. and (c)(2)(iii).
(1) * * * A
transportation
allowance may be
claimed retroactively
for a period of not
more than 3 months
prior to the first
day of the month that
Form MMS-4110 is
filed with MMS,
unless MMS approves a
longer period upon a
showing of good cause
by the lessee. * * *
----------------------------------------------------------------------------------------------------------------
206.57(b)(1)............................ (b) Non-arm's-length Burden covered under OMB Control Number 1010-
or no contract. 0140. Burden covered under Sec. 210.52.
(1) * * * When
necessary or
appropriate, MMS may
direct a lessee to
modify its actual
transportation
allowance deduction.
----------------------------------------------------------------------------------------------------------------
206.57(b)(2)(iv)........................ (b) Non-arm's-length 20 1 20
or no contract.
(2)(iv) * * * After a
lessee has elected to
use either method for
a transportation
system, the lessee
may not later elect
to change to the
other alternative
without approval of
MMS.
----------------------------------------------------------------------------------------------------------------
206.57(b)(2)(iv)(A)..................... (b) Non-arm's-length 20 1 20
or no contract.
(2)(iv)(A) * * * After
an election is made,
the lessee may not
change methods
without MMS approval.
* * *
----------------------------------------------------------------------------------------------------------------
[[Page 45058]]
206.57(b)(3)(i)......................... (b) Non-arm's-length 40 1 40
or no contract.
(3)(i) * * * Except as
provided in this
paragraph, the lessee
may not take an
allowance for
transporting lease
production which is
not royalty bearing
without MMS approval.
----------------------------------------------------------------------------------------------------------------
206.57(b)(3)(ii)........................ (b) Non-arm's-length 20 1 20
or no contract.
(3)(ii)
Notwithstanding the
requirements of
paragraph (i), the
lessee may propose to
MMS a cost allocation
method on the basis
of the values of the
products transported.
* * *
----------------------------------------------------------------------------------------------------------------
206.57(b)(4)............................ (b) Non-arm's-length 20 1 20
or no contract.
(4) Where both gaseous
and liquid products
are transported
through the same
transportation
system, the lessee
shall propose a cost
allocation procedure
to MMS. * * * The
lessee shall submit
all available data to
support its proposal.
* * *
----------------------------------------------------------------------------------------------------------------
206.57(b)(5)............................ (b) Non-arm's-length 20 1 20
or no contract.
(5) A lessee may apply
to MMS for an
exception from the
requirement that it
compute actual costs
in accordance with
paragraphs (b)(1)
through (b)(4) of
this section. * * *
----------------------------------------------------------------------------------------------------------------
206.57(c)(1)(i)......................... (c) Reporting 4 4 16
requirements.
(1) Arm's-length
contracts. (i) With
the exception of
those transportation
allowances specified
in paragraphs
(c)(1)(v) and
(c)(1)(vi) of this
section, the lessee
shall submit page one
of the initial Form
MMS-4110 (and
Schedule 1), Oil
Transportation
Allowance Report,
prior to, or at the
same time as, the
transportation
allowance determined,
under an arm's-length
contract, is reported
on Form MMS-2014,
Report of Sales and
Royalty Remittance. *
* *
----------------------------------------------------------------------------------------------------------------
206.57(c)(1)(iii)....................... (c) Reporting 4 4 16
requirements.
(1) Arm's-length
contracts. (iii)
After the initial
reporting period and
for succeeding
reporting periods,
lessees must submit
page one of Form MMS-
4110 (and Schedule 1)
within 3 months after
the end of the
calendar year, or
after the applicable
contract or rate
terminates or is
modified or amended,
whichever is earlier,
unless MMS approves a
longer period (during
which period the
lessee shall continue
to use the allowance
from the previous
reporting period).
----------------------------------------------------------------------------------------------------------------
206.57(c)(1)(iv)........................ (c) Reporting AUDIT PROCESS. See note.
requirements.
(1) Arm's-length
contracts. (iv) MMS
may require that a
lessee submit arm's-
length transportation
contracts, production
agreements, operating
agreements, and
related documents.
Documents shall be
submitted within a
reasonable time, as
determined by MMS.
----------------------------------------------------------------------------------------------------------------
206.57(c)(2)(i)......................... (c) Reporting 6 1 6
requirements.
(2) Non-arm's-length
or no contract.
(i) With the exception
of those
transportation
allowances specified
in paragraphs
(c)(2)(v),
(c)(2)(vii) and
(c)(2)(viii) of this
section, the lessee
shall submit an
initial Form MMS-4110
prior to, or at the
same time as, the
transportation
allowance determined
under a non-arm's-
length contract or no-
contract situation is
reported on Form MMS-
2014. * * * The
initial report may be
based upon estimated
costs.
----------------------------------------------------------------------------------------------------------------
[[Page 45059]]
206.57(c)(2)(iii)....................... (c) Reporting 6 3 18
requirements.
(2) Non-arm's-length
or no contract.
(iii) For calendar-
year reporting
periods succeeding
the initial reporting
period, the lessee
shall submit a
completed Form MMS-
4110 containing the
actual costs for the
previous reporting
period. If oil
transportation is
continuing, the
lessee shall include
on Form MMS-4110 its
estimated costs for
the next calendar
year. * * * MMS must
receive the Form MMS-
4110 within 3 months
after the end of the
previous reporting
period, unless MMS
approves a longer
period (during which
period the lessee
shall continue to use
the allowance from
the previous
reporting period).
----------------------------------------------------------------------------------------------------------------
206.57(c)(2)(iv)........................ (c) Reporting Burden covered under Sec. 206.57(c)(2)(i).
requirements.
(2) Non-arm's-length
or no contract.
(iv) For new
transportation
facilities or
arrangements, the
lessee's initial Form
MMS-4110 shall
include estimates of
the allowable oil
transportation costs
for the applicable
period. * * *
----------------------------------------------------------------------------------------------------------------
206.57(c)(2)(v)......................... (c) Reporting Burden covered under Sec. 206.57(c)(2)(i).
requirements.
(2) Non-arm's-length
or no contract.
(v) * * * only those
allowances that have
been approved by MMS
in writing * * *
----------------------------------------------------------------------------------------------------------------
206.57(c)(2)(vi)........................ (c) Reporting AUDIT PROCESS. See note.
requirements.
(2) Non-arm's-length
or no contract.
(vi) Upon request by
MMS, the lessee shall
submit all data used
to prepare its Form
MMS-4110. The data
shall be provided
within a reasonable
period of time, as
determined by MMS.
----------------------------------------------------------------------------------------------------------------
206.57(c)(4) and (e)(2)................. (c) Reporting Burden covered under OMB Control Number 1010-
requirements. 0140. Burden covered under Sec. 210.52.
(4) Transportation
allowances must be
reported as a
separate line item on
Form MMS-2014 * * *
(e) Adjustments.
(2) For lessees
transporting
production from
Indian leases, the
lessee must submit a
corrected Form MMS-
2014 to reflect
actual costs * * *
----------------------------------------------------------------------------------------------------------------
206.59.................................. May I ask MMS for 20 1 20
valuation guidance?
You may ask MMS for
guidance in
determining value.
You may propose a
value method to MMS.
Submit all available
data related to your
proposal and any
additional
information MMS deems
necessary. * * *
----------------------------------------------------------------------------------------------------------------
206.61(a) and (b)....................... What records must I AUDIT PROCESS. See note.
keep and produce?
(a) On request, you
must make available
sales, volume, and
transportation data
for production you
sold, purchased, or
obtained from the
field or area. You
must make this data
available to MMS,
Indian
representatives, or
other authorized
persons.
(b) You must retain
all data relevant to
the determination of
royalty value. * * *
----------------------------------------------------------------------------------------------------------------
206--PRODUCT VALUATION
Subpart E--Indian Gas
----------------------------------------------------------------------------------------------------------------
206.172(b)(1)(ii)....................... How do I value gas 4 25 100
produced from leases
in an index zone?
(b) Valuing residue
gas and gas before
processing.
(1)(ii) Gas production
that you certify on
Form MMS-4410 * * *
is not processed
before it flows into
a pipeline with an
index but which may
be processed later *
* *
----------------------------------------------------------------------------------------------------------------
[[Page 45060]]
206.172(e)(6)(i) and (iii).............. (e) Determining the 3 10 30
minimum value for
royalty purposes of
gas sold beyond the
first index pricing
point.
(6)(i) You must report
the safety net price
for each index zone
to MMS on Form MMS-
4411, Safety Net
Report, no later than
June 30 following
each calendar year; *
* *
(iii) MMS may order
you to amend your
safety net price
within one year from
the date your Form
MMS-4411 is due or is
filed, whichever is
later. * * *
----------------------------------------------------------------------------------------------------------------
206.172(e)(6)(ii)....................... (e) Determining the Burden covered under OMB Control Number 1010-
minimum value for 0140. Burden covered under Sec. 210.52.
royalty purposes of
gas sold beyond the
first index pricing
point.
(6)(ii) You must pay
and report on Form
MMS-2014 additional
royalties due no
later than June 30
following each
calendar year * * *
----------------------------------------------------------------------------------------------------------------
206.172(f)(1)(ii), (f)(2), and (f)(3)... (f) Excluding some or 40 1 40
all tribal leases
from valuation under
this section.
(1) An Indian tribe
may ask MMS to
exclude some or all
of its leases from
valuation under this
section. * * *
(ii) If an Indian
tribe requests
exclusion from an
index zone for less
than all of its
leases, MMS will
approve the request
only if the excluded
leases may be
segregated into one
or more groups based
on separate fields
within the
reservation.
(2) An Indian tribe
may ask MMS to
terminate exclusion
of its leases from
valuation under this
section. * * *
(3) The Indian tribe's
request to MMS under
either paragraph
(f)(1) or (2) of this
section must be in
the form of a tribal
resolution. * * *
----------------------------------------------------------------------------------------------------------------
206.173(a)(1)........................... How do I calculate the 2 19 38
alternative
methodology for dual
accounting?
(a) Electing a dual
accounting method.
(1) * * * You may
elect to perform the
dual accounting
calculation according
to either 206.176(a)
(called actual dual
accounting), or
paragraph (b) of this
section (called the
alternative
methodology for dual
accounting).
----------------------------------------------------------------------------------------------------------------
206.173(a)(2)........................... (a) Electing a dual Burden covered under Sec. 206.173(a)(1).
accounting method.
(2) You must make a
separate election to
use the alternative
methodology for dual
accounting for your
Indian leases in each
MMS-designated area.
* * *
----------------------------------------------------------------------------------------------------------------
206.174(a)(4)(ii)....................... How do I value gas Burden covered under OMB Control Number 1010-
production when an 0140. Burden covered under Sec. 210.52.
index-based method
cannot be used?
(a) Situations in
which an index-based
method cannot be
used.
(4)(ii) If the major
portion value is
higher, you must
submit an amended
Form MMS-2014 to MMS
by the due date
specified in the
written notice from
MMS of the major
portion value. * * *
----------------------------------------------------------------------------------------------------------------
206.174(b)(1)(i) and (iii); (b)(2); (b) Arm's-length AUDIT PROCESS. See note.
(d)(2). contracts.
(1)(i) You have the
burden of
demonstrating that
your contract is
arm's-length. * * *
(iii) * * * In these
circumstances, MMS
will notify you and
give you an
opportunity to
provide written
information
justifying your
value. * * *
(2) MMS may require
you to certify that
your arm's-length
contract provisions
include all of the
consideration the
buyer pays, either
directly or
indirectly, for the
gas, residue gas, or
gas plant product.
(d) Supporting data.
(2) You must make all
such data available
upon request to the
authorized MMS or
Indian
representatives, to
the Office of the
Inspector General of
the Department, or
other authorized
persons. * * *
----------------------------------------------------------------------------------------------------------------
[[Page 45061]]
206.174(d).............................. (d) Supporting data. Burden covered under OMB Control Number 1010-
If you determine the 0140.
value of production
under paragraph (c)
of this section, you
must retain all data
relevant to
determination of
royalty value.
----------------------------------------------------------------------------------------------------------------
206.174(f).............................. (f) Value guidance. 40 1 40
You may ask MMS for
guidance in
determining value.
You may propose a
valuation method to
MMS. Submit all
available data
related to your
proposal and any
additional
information MMS deems
necessary. * * *
----------------------------------------------------------------------------------------------------------------
206.175(d)(4)........................... How do I determine 20 1 20
quantities and
qualities of
production for
computing royalties?
(d)(4) You may request
MMS approval of other
methods for
determining the
quantity of residue
gas and gas plant
products allocable to
each lease. * * *
----------------------------------------------------------------------------------------------------------------
206.176(b).............................. How do I perform Burden covered under Sec. 206.173(a)(1).
accounting for
comparison?
(b) If you are
required to account
for comparison, you
may elect to use the
alternative dual
accounting
methodology provided
for in Sec. 206.173
instead of the
provisions in
paragraph (a) of this
section.
----------------------------------------------------------------------------------------------------------------
206.176(c).............................. (c) * * * If you do Burden covered under Sec. 206.172(b)(1)(ii).
not perform dual
accounting, you must
certify to MMS that
gas flows into such a
pipeline before it is
processed.
----------------------------------------------------------------------------------------------------------------
Transportation Allowances
----------------------------------------------------------------------------------------------------------------
206.177(c)(2) and (c)(3)................ What general 4 1 4
requirements
regarding
transportation
allowances apply to
me?
(c)(2) If you ask MMS,
MMS may approve a
transportation
allowance deduction
in excess of the
limitation in
paragraph (c)(1) of
this section. * * *
(3) Your application
for exception (using
Form MMS-4393,
Request to Exceed
Regulatory Allowance
Limitation) must
contain all relevant
and supporting
documentation
necessary for MMS to
make a determination.
----------------------------------------------------------------------------------------------------------------
206.178(a)(1)(i)........................ How do I determine a 1 25 25
transportation
allowance?
(a) Determining a
transportation
allowance under an
arm's-length
contract.
(1)(i) * * * You are
required to submit to
MMS a copy of your
arm's-length
transportation
contract(s) and all
subsequent amendments
to the contract(s)
within 2 months of
the date MMS receives
your report which
claims the allowance
on the Form MMS-2014.
----------------------------------------------------------------------------------------------------------------
206.178(a)(1)(iii)...................... (a) Determining a AUDIT PROCESS. See note.
transportation
allowance under an
arm's-length
contract.
(1)(iii) If MMS
determines that the
consideration paid
under an arm's-length
transportation
contract does not
reflect the value of
the transportation
because of misconduct
by or between the
contracting parties *
* * In these
circumstances, MMS
will notify you and
give you an
opportunity to
provide written
information
justifying your
transportation costs.
----------------------------------------------------------------------------------------------------------------
206.178(a)(2)(i) and (ii)............... (a) Determining a 20 1 20
transportation
allowance under an
arm's-length
contract.
(2)(i) * * * you
cannot take an
allowance for the
