Agency Information Collection Activities: Proposed Collection, Comment Request, 76047-76051 [E8-29523]
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Federal Register / Vol. 73, No. 241 / Monday, December 15, 2008 / Notices
The area described contains 80 acres in
Tehama County. (APN: 007–049–09).
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The 1993 BLM Redding Resource
Management Plan, as amended,
identifies this parcel of public land as
suitable for disposal. Conveyance of the
identified public land will be subject to
valid existing rights and encumbrances
of record, including but not limited to
rights-of-way for roads and public
utilities. Conveyance of any mineral
interests pursuant to Section 209 of
FLPMA will be analyzed during
processing of the proposed sale. On
December 15, 2008, the above-described
land will be segregated from
appropriation under the public land
laws, including the mining laws, except
the sale provisions of the FLPMA. The
subject lands were also segregated for
exchange under CACA 46843–F1, under
provisions of the exchange regulations
found at 43 CFR 2201.1–1. The
exchange segregation is hereby
terminated for the lands described in
this Notice. Until completion of the sale,
the BLM is no longer accepting land use
applications affecting the identified
public land, except applications for the
amendment of previously-filed right-ofway applications or existing
authorizations to increase the term of
the grants in accordance with 43 CFR
2807.15 and 2886.15. The segregative
effect will terminate upon issuance of a
patent, publication in the Federal
Register of a termination of the
segregation, or December 15, 2010,
unless extended by the BLM State
Director in accordance with 43 CFR
2711.1–2(d) prior to the termination
date.
Public Comments
For a period until January 14, 2009,
interested parties and the general public
may submit in writing any comments
concerning the land being considered
for sale, including notification of any
encumbrances or other claims relating
to the identified land, to Field Manager,
BLM Redding Field Office, at the above
address. In order to ensure
consideration in the environmental
analysis of the proposed sale, comments
must be in writing and postmarked or
delivered within 30 days of the initial
date of publication of this Notice.
Comments transmitted via e-mail will
not be accepted. Comments, including
names and street addresses of
respondents, will be available for public
review at the BLM Redding Field Office
during regular business hours, except
holidays. Individual respondents may
request confidentiality. Before including
your address, phone number, e-mail
address, or other personal identifying
information in your comment, be
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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 review your personal identifying
information, we cannot guarantee that
we will be able to do so. If you wish to
have your name or address withheld
from public disclosure under the
Freedom of Information Act, you must
state this prominently at the beginning
of your comments. Any determination
by the BLM to release or withhold the
names and/or addresses of those who
comment will be made on a case-by-case
basis. Such requests will be honored to
the extent allowed by law. The BLM
will make available for public review, in
their entirety, all comments submitted
by businesses or organizations,
including comments by individuals in
their capacity as an official or
representative of a business or
organization.
Authority: 43 CFR 2711.1–2.
Dated: December 1, 2008.
Steven W. Anderson,
Redding Field Manager.
[FR Doc. E8–29589 Filed 12–12–08; 8:45 am]
BILLING CODE 4310–40–P
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 an extension of a
currently approved information
collection (OMB Control Number 1010–
0119).
SUMMARY: To comply with the
Paperwork Reduction Act of 1995
(PRA), we are notifying the public that
we have submitted an information
collection request (ICR) to the Office of
Management and Budget (OMB) for
renewal approval of the paperwork
requirements in the regulations under
30 CFR part 208. This notice also
provides the public a second
opportunity to comment on the
paperwork burden of these regulatory
requirements. 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,
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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 January 14, 2009.
ADDRESSES: Submit written comments
by either FAX (202) 395–6566 or e-mail
(OIRA_Docket@omb.eop.gov) directly to
the Office of Information and Regulatory
Affairs, OMB, Attention: Desk Officer
for the Department of the Interior (OMB
Control Number 1010–0119).
Please submit copies of your
comments to MMS 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.
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 St., 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 mineral resource development on
Federal and Indian lands and the Outer
Continental Shelf (OCS). 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 (OCS
Lands Act, 43 U.S.C. 1353), the
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Federal Register / Vol. 73, No. 241 / Monday, December 15, 2008 / Notices
Secretary 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 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.
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.
The MMS directs communications
between MMS operators and royalty-inkind (RIK) purchasers through
commercial contracts, situation-specific
‘‘Dear Operator’’ letters, or, in the case
of eligible refiners, through regulations
at 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. The Federal
Government’s RIK program became a
permanent operational program after
several years of pilot project testing. The
RIK 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) in the marketplace and disburses
revenues as prescribed by law.
The MMS sells Federal oil and gas
competitively in the unrestricted
marketplace. The MMS also sells some
crude oil competitively to eligible
refiners (a small and independent
refiner, as defined under 30 CFR 208.2).
Additionally, when directed, MMS
delivers oil or gas to other Federal
agencies, as was the case during the
most recent fill of the Strategic
Petroleum Reserve (SPR), directed by
the President in 2007.
The crude oil or natural gas
purchasers and eligible refiners report
data on three forms—Forms MMS–4070,
Application for the Purchase of Royalty
Oil; MMS–4071, Letter of Credit; and
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MMS–4072, Royalty-in-Kind Contract
Surety Bond. These forms are located at
https://www.mrm.mms.gov/rikweb/
RIKForms.htm.
Eligible Refiner Information—
Determination of Need. The regulations,
at 30 CFR part 208—Sale of Federal
Royalty Oil, govern the eligible refiner
sale. Under § 208.4(a) and (b) on behalf
of the Secretary, MMS performs a
Determination of Need prior to the sale
of royalty oil. The MMS uses the
feedback from the Determination of
Need respondents to assess the
availability of crude oil supply for
eligible refiners and to assess current
marketplace conditions. The MMS
published the most recent
Determination of Need, requesting
specific information from interested
parties, in the Federal Register on
January 16, 2008 (73 FR 2938).
(1) Eligible Refiner Prequalification. In
order to qualify for RIK sales, eligible
refiners must prequalify by (a) 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 (b)
providing detailed financial
information. Upon prequalification,
MMS will issue an amount of unsecured
credit, based on the creditability of the
offeror.
(2) Notice of Availability of Royalty
Oil. Under § 208.5, if MMS finds from
the Determination of Need process that
the program should continue, MMS will
then advise industry of a forthcoming
RIK crude oil sale for eligible refiners
and include administrative details
concerning the application, allocation,
and contract award processes for the
royalty oil. The MMS will also advise
industry of specific information about
the crude oil types offered for sale and
the location of delivery points. As a
result of the most recent determination,
MMS held an eligible refiner sale
August 5–6, 2008, which was
announced on July 30, 2008 (73 FR
44279).
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.
(3) 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 as a small and
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independent refiner, as defined under
§ 208.2. The MMS uses the information
collected on Form MMS–4070 to
determine the eligibility of refiners
wanting to enter into contracts to
purchase royalty oil under 30 CFR 208.2
and to provide a basis for the allocation
of available royalty oil among eligible
refiners.
Directed Communications to
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
leases to ensure accurate and timely
delivery of MMS’ royalty share of
production volumes. Information
collected through MMS’ directed
communication is essential for MMS to
ensure the delivery and acceptance of
verifiable quantities and qualities of
crude oil and natural gas.
The types of directed communication
and the supporting data, that MMS
requires from operators, 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 thirdparty agreements (or two copies of a
complete written explanation of any
oral third-party agreements) and quality
differential agreements. 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 to request these
agreements from eligible refiners, if
needed.
Offers, Financial Statements, and
Surety Instruments for Sales of Royalty
Oil and Gas. (1) Offers. The MMS
requires eligible refiners and/or other
RIK purchasers to report (a) Actual
pricing offers for submission when
MMS offers production for competitive
sale; (b) statements of financial
qualification (audited financial
statements or 10K report/statement);
and (c) 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
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Federal Register / Vol. 73, No. 241 / Monday, December 15, 2008 / Notices
best return to the U.S. Department of the
Treasury and to any affected state.
(2) Financial Statements. The MMS
may request that a bidder submit
publicly available statements of its
financial condition (updated, if needed)
or other related qualification
information. The MMS evaluates the
bidder’s financial and/or qualification
information to determine the risk of
financial default to the Federal
Government.
(3) 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 MMS may
require, e.g., bonds, prepayments, or
parent guaranties. When required,
eligible refiners and other RIK
purchasers must provide surety
documents, i.e., Form MMS–4071,
Letter of Credit; Form MMS–4072,
collecting this information would limit
the Secretary’s ability to discharge his/
her duties and may also result in loss of
revenues. The MMS protects proprietary
information submitted under this
collection, 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:
Royalty-In-Kind Contract Surety Bond;
or other acceptable commercial surety,
within 5 business days prior to the first
delivery under the contract. For bonds,
MMS requires a specific MMS-approved
format. All parent guaranties must
specify a dollar amount of the guaranty
and the effective term. The surety
instruments provide the Federal
Government with a means to collect
money if purchasers do not report and
pay the Federal royalties.
Summary: This collection of
information is necessary to support
MMS’ (1) Requirement of operators to
deliver RIK crude oil or natural gas
volumes to the purchasers who
competitively buy these volumes in the
unrestricted market; (2) determination
of which refiners qualify as small and
independent eligible refiners to
purchase royalty oil; and (3)
requirement of purchasers and eligible
refiners to file actual pricing offers,
respective financial statements, and
MMS-specified surety instruments.
The MMS requests OMB approval to
continue to collect this information. Not
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS
Citation 30 CFR
Reporting and recordkeeping requirement
Average number of annual
responses
Hour burden
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 * * *.
(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. * * *.
(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.
* * *.
208.4(c) ...............
208.4(d) ...............
§ 208.6
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208.6(a) and (b) ..
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Hour burden covered under § 208.4(a).
Hour burden covered under § 208.4(a).
Hour burden covered under § 208.4(a).
General application procedures.
(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: * * *.
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Federal Register / Vol. 73, No. 241 / Monday, December 15, 2008 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Citation 30 CFR
Reporting and recordkeeping requirement
§ 208.7
208.7(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. * * *.
§ 208.9
208.10(e) .............
208.11(a), (b), (d),
and (e).
1
1
1
1
2
20
40
1
1
1
Notices.
(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. * * *.
(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. * * *.
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 .................
1
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.
(a) A purchaser must submit to MMS two copies of any written thirdparty 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.
§ 208.11
*1
Agreements.
§ 208.10
208.10(d) .............
1
1
(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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0.25
Transportation and delivery.
208.8(a) ...............
208.9(a) ...............
Annual
burden hours
Determination of eligibility.
(a) The MMS will examine each application and may request additional
information if the information in the application is inadequate. * * *.
§ 208.8
Average number of annual
responses
Hour burden
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 to Operators of Federal Oil and Gas Leases
Contract-Directed
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Wyoming Gas .............................................................................................
Natural Gas [Texas 8G and Gulf of Mexico (GOM)] .................................
GOM Oil .....................................................................................................
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3
3
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64
9
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192
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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Citation 30 CFR
Reporting and recordkeeping requirement
Average number of annual
responses
Hour burden
SPR Fill Initiative: In January 2008, 70,000 barrels of oil per day were
directed toward the SPR. (Oil volumes directed towards the SPR have
been halted as of July 1, 2008. This will continue to be the case for
the remainder of the year unless the price of oil drops below $75 bbl.
Volumes which were being directed to the SPR have been 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 they fall.).
Eligible refiners ...........................................................................................
Annual
burden hours
3
17
51
3
35
105
Offers, Financial Statements, and Surety Instruments for Sales of Royalty Oil and Gas
Contract-Directed
Offers ..........................................................................................................
Financial Statements ..................................................................................
Surety Instruments .....................................................................................
1
1
10
903
20
30
903
20
300
Total Burden .........................................................................................................................
........................
1,212
1,969
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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: Section 3506(c)(2)(A) of
the PRA requires each agency to ‘‘* * *
provide 60-day notice in the Federal
Register * * * and otherwise consult
with members of the public and affected
agencies concerning each proposed
collection of information * * *.’’
Agencies must specifically solicit
comments to: (a) Evaluate whether the
proposed collection of information is
necessary for the agency to perform its
duties, including whether the
information is useful; (b) evaluate the
accuracy of the agency’s estimate of the
burden of the proposed collection of
information; (c) enhance the quality,
usefulness, and clarity of the
information to be collected; and (d)
minimize the burden on the
respondents, including the use of
automated collection techniques or
other forms of information technology.
To comply with the public
consultation process, we published a
notice in the Federal Register on April
9, 2008 (73 FR 19241), announcing that
we would submit this ICR to OMB for
approval. The notice provided the
required 60-day comment period. We
received no comments in response to
the notice.
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20:00 Dec 12, 2008
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If you wish to comment in response
to this notice, you may send your
comments to the offices listed under the
ADDRESSES section of this notice. The
OMB has up to 60 days to approve or
disapprove the information collection
but may respond after 30 days.
Therefore, to ensure maximum
consideration, OMB should receive
public comments by January 14, 2009.
Public Comment Policy: We will post
all comments in response to this notice
on our Web site at https://
www.mrm.mms.gov/Laws_R_D/
FRNotices/FRInfColl.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: October 21, 2008.
Gregory J. Gould,
Associate Director for Minerals Revenue
Management.
[FR Doc. E8–29523 Filed 12–12–08; 8:45 am]
BILLING CODE 4310–MR–P
PO 00000
Frm 00062
Fmt 4703
Sfmt 4703
DEPARTMENT OF THE INTERIOR
Minerals Management Service
Environmental Documents Prepared
for Proposed Oil, Gas, and Mineral
Operations by the Gulf of Mexico Outer
Continental Shelf (OCS) Region
AGENCY: Minerals Management Service,
Interior.
ACTION: Notice of the Availability of
Environmental Documents; Prepared for
OCS Mineral Proposals by the Gulf of
Mexico OCS Region.
SUMMARY: Minerals Management Service
(MMS), in accordance with Federal
Regulations that implement the National
Environmental Policy Act (NEPA),
announces the availability of NEPArelated Site-Specific Environmental
Assessments (SEA) and Findings of No
Significant Impact (FONSI), prepared by
MMS for the following oil-, gas-, and
mineral-related activities proposed on
the Gulf of Mexico and Atlantic OCS.
FOR FURTHER INFORMATION CONTACT:
Public Information Unit, Information
Services Section at the number below.
Minerals Management Service, Gulf of
Mexico OCS Region, Attention: Public
Information Office (MS 5034), 1201
Elmwood Park Boulevard, Room 114,
New Orleans, Louisiana 70123–2394, or
by calling 1–800–200–GULF.
SUPPLEMENTARY INFORMATION: MMS
prepares SEAs and FONSIs for
proposals that relate to exploration,
development, production, and transport
of oil, gas, and mineral resources on the
Federal OCS. These SEAs examine the
potential environmental effects of
E:\FR\FM\15DEN1.SGM
15DEN1
]]>Agencies
[Federal Register Volume 73, Number 241 (Monday, December 15, 2008)]
[Notices]
[Pages 76047-76051]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-29523]
-----------------------------------------------------------------------
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 an extension of a currently approved information
collection (OMB Control Number 1010-0119).
-----------------------------------------------------------------------
SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), we
are notifying the public that we have submitted an information
collection request (ICR) to the Office of Management and Budget (OMB)
for renewal approval of the paperwork requirements in the regulations
under 30 CFR part 208. This notice also provides the public a second
opportunity to comment on the paperwork burden of these regulatory
requirements. 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 January 14, 2009.
ADDRESSES: Submit written comments by either FAX (202) 395-6566 or e-
mail (OIRA_Docket@omb.eop.gov) directly to the Office of Information
and Regulatory Affairs, OMB, Attention: Desk Officer for the Department
of the Interior (OMB Control Number 1010-0119).
Please submit copies of your comments to MMS 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. 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 St., 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 mineral resource development on Federal and Indian
lands and the Outer Continental Shelf (OCS). 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 (OCS
Lands Act, 43 U.S.C. 1353), the
[[Page 76048]]
Secretary 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 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.
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. The MMS directs communications between MMS
operators and royalty-in-kind (RIK) purchasers through commercial
contracts, situation-specific ``Dear Operator'' letters, or, in the
case of eligible refiners, through regulations at 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.
The Federal Government's RIK program became a permanent operational
program after several years of pilot project testing. The RIK 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) in the marketplace and disburses revenues as prescribed by
law.
The MMS sells Federal oil and gas competitively in the unrestricted
marketplace. The MMS also sells some crude oil competitively to
eligible refiners (a small and independent refiner, as defined under 30
CFR 208.2). Additionally, when directed, MMS delivers oil or gas to
other Federal agencies, as was the case during the most recent fill of
the Strategic Petroleum Reserve (SPR), directed by the President in
2007.
The crude oil or natural gas purchasers and eligible refiners
report data on three forms--Forms MMS-4070, Application for the
Purchase of Royalty Oil; MMS-4071, Letter of Credit; and MMS-4072,
Royalty-in-Kind Contract Surety Bond. These forms are located at http:/
/www.mrm.mms.gov/rikweb/RIKForms.htm.
Eligible Refiner Information--Determination of Need. The
regulations, at 30 CFR part 208--Sale of Federal Royalty Oil, govern
the eligible refiner sale. Under Sec. 208.4(a) and (b) on behalf of
the Secretary, MMS performs a Determination of Need prior to the sale
of royalty oil. The MMS uses the feedback from the Determination of
Need respondents to assess the availability of crude oil supply for
eligible refiners and to assess current marketplace conditions. The MMS
published the most recent Determination of Need, requesting specific
information from interested parties, in the Federal Register on January
16, 2008 (73 FR 2938).
(1) Eligible Refiner Prequalification. In order to qualify for RIK
sales, eligible refiners must prequalify by (a) 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 (b)
providing detailed financial information. Upon prequalification, MMS
will issue an amount of unsecured credit, based on the creditability of
the offeror.
(2) Notice of Availability of Royalty Oil. Under Sec. 208.5, if
MMS finds from the Determination of Need process that the program
should continue, MMS will then advise industry of a forthcoming RIK
crude oil sale for eligible refiners and include administrative details
concerning the application, allocation, and contract award processes
for the royalty oil. The MMS will also advise industry of specific
information about the crude oil types offered for sale and the location
of delivery points. As a result of the most recent determination, MMS
held an eligible refiner sale August 5-6, 2008, which was announced on
July 30, 2008 (73 FR 44279).
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.
(3) 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 as a small and independent
refiner, as defined under Sec. 208.2. The MMS uses the information
collected on Form MMS-4070 to determine the eligibility of refiners
wanting to enter into contracts to purchase royalty oil under 30 CFR
208.2 and to provide a basis for the allocation of available royalty
oil among eligible refiners.
Directed Communications to 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 leases to ensure accurate and timely delivery of MMS'
royalty share of production volumes. Information collected through MMS'
directed communication is essential for MMS to ensure the delivery and
acceptance of verifiable quantities and qualities of crude oil and
natural gas.
The types of directed communication and the supporting data, that
MMS requires from operators, 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) and quality
differential agreements. 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 to request
these agreements from eligible refiners, if needed.
Offers, Financial Statements, and Surety Instruments for Sales of
Royalty Oil and Gas. (1) Offers. The MMS requires eligible refiners
and/or other RIK purchasers to report (a) Actual pricing offers for
submission when MMS offers production for competitive sale; (b)
statements of financial qualification (audited financial statements or
10K report/statement); and (c) 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
[[Page 76049]]
best return to the U.S. Department of the Treasury and to any affected
state.
(2) Financial Statements. The MMS may request that a bidder submit
publicly available statements of its financial condition (updated, if
needed) or other related qualification information. The MMS evaluates
the bidder's financial and/or qualification information to determine
the risk of financial default to the Federal Government.
(3) 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 MMS may require, e.g., bonds,
prepayments, or parent guaranties. When required, eligible refiners and
other RIK purchasers must provide surety documents, i.e., Form MMS-
4071, Letter of Credit; Form MMS-4072, Royalty-In-Kind Contract Surety
Bond; or other acceptable commercial surety, within 5 business days
prior to the first delivery under the contract. For bonds, MMS requires
a specific MMS-approved format. All parent guaranties must specify a
dollar amount of the guaranty and the effective term. The surety
instruments provide the Federal Government with a means to collect
money if purchasers do not report and pay the Federal royalties.
Summary: This collection of information is necessary to support
MMS' (1) Requirement of operators to deliver RIK crude oil or natural
gas volumes to the purchasers who competitively buy these volumes in
the unrestricted market; (2) determination of which refiners qualify as
small and independent eligible refiners to purchase royalty oil; and
(3) requirement of purchasers and eligible refiners to file actual
pricing offers, respective financial statements, and MMS-specified
surety instruments.
The MMS requests OMB approval to continue to collect this
information. Not collecting this information would limit the
Secretary's ability to discharge his/her duties and may also result in
loss of revenues. The MMS protects proprietary information submitted
under this collection, 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:
Respondents' Estimated Annual Burden Hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
Average number
Citation 30 CFR Reporting and recordkeeping requirement Hour burden of annual 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 royalty oil in kind. The 4 4 16
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 Hour burden covered under Sec. 208.4(a).
may 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 Secretary * * * that Hour burden covered under Sec. 208.4(a).
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. * * *.
208.4(d)..................................... (d) Interim sales. * * * The potentially eligible Hour burden covered under Sec. 208.4(a).
refiners, 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 of royalty oil, an 1.25 4 5
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: * * *.
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 76050]]
Sec. 208.7 Determination of eligibility.
--------------------------------------------------------------------------------------------------------------------------------------------------------
208.7(a)..................................... (a) The MMS will examine each application and may request 0.25 1 \*\1
additional information if the information in the
application is inadequate. * * *.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Sec. 208.8 Transportation and delivery.
--------------------------------------------------------------------------------------------------------------------------------------------------------
208.8(a)..................................... (a) * * * The purchaser must have physical access to the 1 1 1
oil at the alternate delivery point and such point must
be approved by MMS.
--------------------------------------------------------------------------------------------------------------------------------------------------------
208.8(b)..................................... (b) * * * If the delivery point is on or immediately Hour burden covered by OMB Control Number 1010-
adjacent to the lease, the royalty oil will be delivered 0140.
without cost to the Federal Government as an undivided This provision is no different than the
portion of production in marketable condition at transportation allowances allowed in 30 CFR
pipeline connections or other facilities provided by the part 206 for royalties paid in value. The
lessee, unless other arrangements are approved by MMS. lessee enters allowance amount on Form MMS-
If the delivery point is not on or immediately adjacent 2014.
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. * * *.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Sec. 208.9 Agreements.
--------------------------------------------------------------------------------------------------------------------------------------------------------
208.9(a)..................................... (a) A purchaser must submit to MMS two copies of any 1 1 1
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 royalty oil will be taken 2 20 40
in kind, the operator shall be responsible for notifying
each working interest on the Federal lease. * * *.
208.10(e).................................... (e) A purchaser cannot transfer, assign, or sell its 1 1 1
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, prior to execution of the Hour burden covered under ``Offers, Financial
contract, shall furnish an ``MMS-specified surety Statements, and Surety Instruments for Sales
instrument,'' in an amount equal to the estimated value of Royalty Oil and Gas'' section.
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 (Forms MMS-4071, Letter of Credit, and MMS-
not to renew the letter of credit at any monthly 4072, Royalty-In-Kind Contract Surety Bond).
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 books of lessees, operators, Audit process. See note.
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 to Operators of Federal Oil and Gas Leases
--------------------------------------------------------------------------------------------------------------------------------------------------------
Contract-Directed............................ Wyoming Gas.............................................. 3 3 9
Natural Gas [Texas 8G and Gulf of Mexico (GOM)].......... 3 108 324
GOM Oil.................................................. 3 64 192
[[Page 76051]]
SPR Fill Initiative: In January 2008, 70,000 barrels of 3 17 51
oil per day were directed toward the SPR. (Oil volumes
directed towards the SPR have been halted as of July 1,
2008. This will continue to be the case for the
remainder of the year unless the price of oil drops
below $75 bbl. Volumes which were being directed to the
SPR have been 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 they fall.).
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
--------------------------------------------------------------------------------------------------------------------------------------------------------
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: Section 3506(c)(2)(A) of the PRA requires each agency to
``* * * provide 60-day notice in the Federal Register * * * and
otherwise consult with members of the public and affected agencies
concerning each proposed collection of information * * *.'' Agencies
must specifically solicit comments to: (a) Evaluate whether the
proposed collection of information is necessary for the agency to
perform its duties, including whether the information is useful; (b)
evaluate the accuracy of the agency's estimate of the burden of the
proposed collection of information; (c) enhance the quality,
usefulness, and clarity of the information to be collected; and (d)
minimize the burden on the respondents, including the use of automated
collection techniques or other forms of information technology.
To comply with the public consultation process, we published a
notice in the Federal Register on April 9, 2008 (73 FR 19241),
announcing that we would submit this ICR to OMB for approval. The
notice provided the required 60-day comment period. We received no
comments in response to the notice.
If you wish to comment in response to this notice, you may send
your comments to the offices listed under the ADDRESSES section of this
notice. The OMB has up to 60 days to approve or disapprove the
information collection but may respond after 30 days. Therefore, to
ensure maximum consideration, OMB should receive public comments by
January 14, 2009.
Public Comment Policy: We will post all comments in response to
this notice on our Web site at https://www.mrm.mms.gov/Laws_R_D/
FRNotices/FRInfColl.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: October 21, 2008.
Gregory J. Gould,
Associate Director for Minerals Revenue Management.
[FR Doc. E8-29523 Filed 12-12-08; 8:45 am]
BILLING CODE 4310-MR-P
