Agency Information Collection Activities: Proposed Collection, Comment Request, 18536-18545 [2010-8196]

Download as PDF sroberts on DSKD5P82C1PROD with NOTICES 18536 Federal Register / Vol. 75, No. 69 / Monday, April 12, 2010 / Notices * * * and otherwise consult with members of the public and affected agencies concerning each proposed collection of information * * *.’’ Agencies must specifically solicit comments to: (a) Evaluate whether the proposed collection of information is necessary for the agency to perform its duties, including whether the information is useful; (b) evaluate the accuracy of the agency’s estimate of the burden of the proposed collection of information; (c) enhance the quality, usefulness, and clarity of the information to be collected; and (d) minimize the burden on the respondents, including the use of automated collection techniques or other forms of information technology. The PRA also requires agencies to estimate the total annual reporting ‘‘nonhour cost’’ burden to respondents or recordkeepers resulting from the collection of information. If you have costs to generate, maintain, and disclose this information, you should comment and provide your total capital and startup cost components or annual operation, maintenance, and purchase of service components. You should describe the methods you use to estimate major cost factors, including system and technology acquisition, expected useful life of capital equipment, discount rate(s), and the period over which you incur costs. Capital and startup costs include, among other items, computers and software you purchase to prepare for collecting information; monitoring, sampling, and testing equipment; and record storage facilities. Generally, your estimates should not include equipment or services purchased: (i) Before October 1, 1995; (ii) to comply with requirements not associated with the information collection; (iii) for reasons other than to provide information or keep records for the 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. We also will post the ICR at https://www.mrm.mms.gov/Laws_R_D/ FRNotices/FRInfColl.htm. Public Comment Policy: We will post all comments, including names and addresses of respondents, at https:// www.regulations.gov. 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 VerDate Nov<24>2008 17:58 Apr 09, 2010 Jkt 220001 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. Minerals Management Service and Kipling St., Denver, Colorado 80225. Please reference ICR 1010–0120 in your comments. FOR FURTHER INFORMATION CONTACT: For questions on technical issues, contact Glenn W. Kepler, Sr., Solid Minerals and Geothermal (SM&G), Minerals Revenue Management (MRM), MMS, telephone (303) 231–3346, or e-mail glenn.kepler@mms.gov. For other comments or questions, contact Armand Southall, Regulatory Specialist, Project Management Office—Regulations, MRM, MMS, telephone (303) 231–3221, or e-mail armand.southall@mms.gov. You may contact Mr. Southall to obtain copies, at no cost, of (1) the ICR, (2) any associated forms, and (3) the regulations that require the subject information collection. [Docket No. MMS–2010–MRM–0004] SUPPLEMENTARY INFORMATION: Dated: April 6, 2010. Gregory J. Gould, Associate Director for Minerals Revenue Management. [FR Doc. 2010–8198 Filed 4–9–10; 8:45 am] BILLING CODE 4310–MR–P DEPARTMENT OF THE INTERIOR 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– 0120). SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), we are inviting comments on a collection of information that we will submit to the Office of Management and Budget (OMB) for review and approval. The title of this information collection request (ICR) is ‘‘30 CFR Parts 202, 206, 210, 212, 217, and 218, Solid Minerals and Geothermal Collections.’’ DATES: Submit written comments on or before June 11, 2010. ADDRESSES: You may submit comments on this ICR to MMS by any of the following methods. Please use ‘‘ICR 1010–0120’’ as an identifier in your comment. • Electronically go to https:// www.regulations.gov. In the entry titled ‘‘Enter Keyword or ID,’’ enter MMS– 2010–MRM–0004, and then click search. Follow the instructions to submit public comments. The MMS will post all comments. • Mail comments to Armand Southall, Regulatory Specialist, Minerals Management Service, Minerals Revenue Management, P.O. Box 25165, MS 61013B, Denver, Colorado 80225. Please reference ICR 1010–0120 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., PO 00000 Frm 00068 Fmt 4703 Sfmt 4703 Title: 30 CFR Parts 202, 206, 210, 212, 217, and 218, Solid Minerals and Geothermal Collections. OMB Control Number: 1010–0120. Bureau Form Numbers: Forms MMS– 4430, MMS–4292, and MMS–4293. Abstract: The Secretary of the U.S. Department of the Interior is responsible for collecting royalties from lessees who produce minerals from leased Federal and Indian lands. The Secretary is required by various laws to manage mineral resources production on Federal and Indian lands, collect the royalties due, and distribute the funds in accordance with those laws. The Secretary also has a trust responsibility to manage Indian lands and seek advice and information from Indian beneficiaries. The MMS performs the royalty management functions and assists the Secretary in carrying out the Department’s trust responsibility for Indian lands. Public laws pertaining to mineral leases on Federal and Indian lands are posted at https://www.mrm.mms.gov/ Laws_R_D/PublicLawsAMR.htm. When a company or an individual enters into a lease to explore, develop, produce, and dispose of minerals from Federal or Indian lands, that company or individual agrees to pay the lessor a share (royalty) of the value received from production from the leased lands. The lease creates a business relationship between the lessor and the lessee. The lessee is required to report various kinds of information to the lessor relative to the disposition of the leased minerals. The information collected includes data necessary to assure that royalties are accurately valued and appropriately paid. The MMS, acting for the Secretary, uses all of the collected information to support the Minerals Revenue E:\FR\FM\12APN1.SGM 12APN1 18537 Federal Register / Vol. 75, No. 69 / Monday, April 12, 2010 / Notices Management Audit and Compliance Management (ACM) and Financial Management (FM) processes, and to assure that royalties reported and paid are based upon correct product valuation and allocated to the proper leases. The MMS also uses the collected information, as do other Federal Government, State, and tribal entities, for audit purposes and to evaluate the reasonableness of product valuation, production and sales allocation, or coal washing and/or transportation allowance claim(s) that lessees submit. Specifically, MMS provides the Bureau of Land Management (BLM) and the Bureau of Indian Affairs (BIA) access to this information, which they use to conduct production verification, ensure lease diligence, and monitor plant efficiencies and inventories for maximum recovery, and secondary products. The MMS’s determination of the appropriate product value, production and sales allocations, and coal washing and/or transportation allowance(s) taken directly affects the royalties due. Failure to collect such data would prevent the Secretary from accomplishing statutory and trust responsibilities. • Form MMS–4430, Solid Minerals Production and Royalty Report— Producers of coal and other solid minerals from Federal and Indian leases electronically file this form monthly. The SM&G uses this report as the primary accounts receivable document for all solid minerals royalties. The producers report the data, on a minelevel basis, which contains basic leaselevel production volume, valuation, and sales information. The SM&G analyzes this production and royalty information to assure compliance of all payments with lease terms, regulations, and MMS policies including but not limited to product valuation, production and sales allocation, and coal washing and/or transportation allowance(s) calculation. • Contracts and Contract Amendments—Coal and metal producers submit sales contracts, agreements, and contract amendments semi-annually. Sodium, potassium, phosphate, and other solid mineral producers, with leases containing ad valorem royalty terms, submit the required documents only if specifically requested by MMS. • Sales Summaries—The SM&G compares sales summary information from purchasers to production, and royalty information submitted on Form MMS–4430 and facility data submissions. • Facility Data—Operators of wash plants and of refining, ore concentration, or other processing facilities for any coal, sodium, potassium, metals, or other solid minerals submit facility data information for months in which they process or carry an inventory. The SM&G uses this facility information in its compliance process. • Additional Documents or Evidence—The MMS requests detailed statements, documents, or other evidence, i.e. spot sale invoices, weigh tickets, laboratory quality reports, transportation contracts, and service contracts, supporting our ACM responsibilities under Federal and Indian lease terms. The information might further define a cost or verify a claim made by the producer. Form MMS–4292—Coal Washing Allowance Report and Form MMS– 4293—Coal Transportation Allowance Report—This ICR also provides for the collection of coal washing and transportation allowance information for Indian leases. The information collected is essential for the royalty valuation process. The MMS developed Forms MMS– 4292, Coal Washing Allowance Report, and MMS–4293, Coal Transportation Allowance Report, for industry to complete when reporting or requesting a washing or transportation allowance. Geothermal Resources—This ICR also provides for the collection of information on the current royalty valuation methods for geothermal resources, which are grouped by usage (electrical generation, direct use, and by-product recovery), and by disposition of the resources (arm’slength [unaffiliated] contract sales, nonarm’s-length contract sales, and no contract sales) within each usage group. The MMS relies on data that payors report on Form MMS–2014 (ICR 1010– 0139) for the majority of our business processes including geothermal information. OMB Approval The information we collect under this ICR is essential for the royalty valuation process. Not collecting this information would limit the Secretary’s ability to discharge fiduciary duties and may also result in the inability to confirm the accurate royalty value. Proprietary information submitted to MMS under this collection is protected. No items of a sensitive nature are collected. Responses are mandatory for Form MMS–4430. A response is required to obtain benefits for Forms MMS–4292 and MMS–4293. Frequency of Response: On occasion, annually, monthly. Estimated Number and Description of Respondents: 144 reporters. Estimated Annual Reporting and Recordkeeping ‘‘Hour’’ Burden: 3,670 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 Citation 30 CFR Reporting and recordkeeping requirement Hour burden Average No. annual responses Annual burden hours Part 202—Royalties Subpart H—Geothermal Resources sroberts on DSKD5P82C1PROD with NOTICES 202.351(b)(3) ...................................... Pay royalties on used, sold, or otherwise finally disposed of byproducts. Hour burden covered under OMB Control Number 1010–0139. 202.353(a), (b), (c), and (d) ............... Report on Form MMS–2014, royalties or direct use fee due for geothermal resources, byproduct quantity, and commercially demineralized water quantity. Hour burden covered under OMB Control Number 1010–0139. See § 210.52. 202.353(e) .......................................... Maintain quality measurements for audits .................. AUDIT PROCESS. See Note. VerDate Nov<24>2008 17:58 Apr 09, 2010 Jkt 220001 PO 00000 Frm 00069 Fmt 4703 Sfmt 4703 E:\FR\FM\12APN1.SGM 12APN1 18538 Federal Register / Vol. 75, No. 69 / Monday, April 12, 2010 / Notices RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued Citation 30 CFR Reporting and recordkeeping requirement Average No. annual responses Hour burden Annual burden hours Part 206—Product Valuation Subpart F—Federal Coal 206.253(c); 206.254; 206.257(d)(1) ... Maintain accurate records for Federal lease coal and all data relevant to the royalty value determination. Report the coal quantity information on appropriate forms under 30 CFR part 210. .4166 206.257(b)(1), (b)(3), (b)(4), (d)(2) ..... Demonstrate and certify your arm’s-length contract provisions including all consideration paid by buyer, directly or indirectly, for coal production. Provide written information of reported arm’slength coal sales value and quantity data. AUDIT PROCESS. See Note. 206.257(d)(3) ...................................... Submit a one-time notification when first reporting royalties on Form MMS–4430 and for a change in method. 2 1 2 206.257(f) ........................................... Submit all available data relevant to the value determination proposal. 5 1 5 206.257(i) ........................................... Write and sign contract revisions or amendments by all parties to an arm’s-length contract, and retroactively apply revisions or amendments to royalty value for a period not to exceed two years. 2 1 2 206.259(a)(1), (a)(3) ........................... Demonstrate that your contract is arm’s-length. Provide written information justifying the lessee’s washing costs. 206.259(a)(1) ...................................... Report actual washing allowance on Form MMS– 4430 for arm’s-length sales. .34 12 4 206.259(b)(1) ...................................... Report actual washing allowance on Form MMS– 4430 for non-arm’s-length or no contract sales. .75 48 36 206.259(b)(2)(iv) ................................. Report washing allowance on Form MMS–4430 after lessee elects either method for a wash plant. 1 1 1 206.259(b)(2)(iv)(A) ............................ Report washing allowance on Form MMS–4430 for depreciation—use either straight-line, or a unit of production method. 1 1 1 206.259(c)(1), (c)(2) ........................... Submit arm’s-length and non-arm’s-length washing contracts and related documents to MMS. 206.262(a)(1) ...................................... Report transportation allowance on Form MMS–4430 206.262(a)(1), (a)(3) ........................... Demonstrate that your contract is arm’s-length. Provide written information justifying your transportation costs when MMS determines the costs unreasonable. 206.262(b)(1) ...................................... Report actual transportation allowance on Form MMS–4430 for non-arm’s-length or no contract sales. Report transportation allowance on Form MMS–4430 after lessee elects either method for a transportation system. .75 24 18 1 1 1 206.262(b)(2)(iv)(A) ............................ Report transportation allowance on Form MMS–4430 for depreciation—use either straight-line, or a unit of production method. 1 1 1 206.262(b)(3) ...................................... Apply to MMS for exception from the requirement of computing actual costs. 1 1 1 206.262(c)(1), (c)(2), (e) ..................... Submit all arm’s-length transportation contracts, production agreements, operating agreements, and related documents to MMS. sroberts on DSKD5P82C1PROD with NOTICES 206.262(b)(2)(iv) ................................. VerDate Nov<24>2008 17:58 Apr 09, 2010 Jkt 220001 PO 00000 Frm 00070 Fmt 4703 Sfmt 4703 E:\FR\FM\12APN1.SGM 816 340 AUDIT PROCESS. See Note. AUDIT PROCESS. See Note. .33 240 80 AUDIT PROCESS. See Note. AUDIT PROCESS. See Note. 12APN1 18539 Federal Register / Vol. 75, No. 69 / Monday, April 12, 2010 / Notices RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued Average No. annual responses Hour burden Annual burden hours Citation 30 CFR Reporting and recordkeeping requirement 206.264 ............................................... Propose the value of coal for royalty purposes to MMS for an ad valorem Federal coal lease. 1 1 1 206.265 ............................................... Notify MMS if, prior to use, sale, or other disposition, you enhanced the value of coal. 1 1 1 Subpart H—Geothermal Resources Certify values reported for royalty purposes as bona fide sales not involving considerations other than the sale of the mineral, and required to supply supporting information. 206.352(b)(1)(ii) .................................. Determine the royalty on produced geothermal resources, used in your power plant for generation and sale of electricity, for Class I leases, as approved by MMS. 206.353(c)(2)(i)(A), (d)(9), (e)(4) ........ Include a return on capital you invested when the purchase of real estate for transmission facilities is necessary. Allowable operating and maintenance expenses include other directly allocable and attributable operating and maintenance expenses that you can document. 206.353(g) .......................................... Request change to other depreciation alternative method with MMS approval. 1 1 1 206.353(h)(1) ...................................... Use a straight-line depreciation method, but not below salvage value, for equipment. 1 1 1 206.353(m)(2) ..................................... Amend your prior estimated Form MMS–2014 reports to reflect actual transmission cost deductions, and pay any additional royalties due plus interest. Hour burden covered under OMB Control Number 1010–0139. 206.353(n) .......................................... Submit all arm’s-length transmission contracts, production and operating agreements and related documents, and other data for calculating the deduction. AUDIT PROCESS. See Note. 206.354(b)(1)(ii) .................................. Redetermine your generating cost rate annually and request MMS approval to use a different deduction period. 206.354(c)(2)(i)(A), (d)(9), (e)(4) ........ Include a return on capital you invested when the purchase of real estate for a power plant site is necessary. Allowable operating and maintenance expenses include other directly allocable and attributable operating and maintenance expenses that you can document. 206.354(g) .......................................... Request change to other depreciation alternative method with MMS approval. 1 1 1 206.354(h) .......................................... Use a straight-line depreciation method, but not below the salvage value, for equipment. 1 1 1 206.354(m)(2) ..................................... sroberts on DSKD5P82C1PROD with NOTICES 206.301(b) .......................................... Amend your prior estimated Form MMS–2014 reports to reflect actual generating cost deductions and pay any additional royalties due plus interest. Hour burden covered under OMB Control Number 1010–0139. 206.354(n) .......................................... Submit all arm’s-length power plant contracts, production and operating agreements and related documents, and other data for calculating the deduction. AUDIT PROCESS. See Note. VerDate Nov<24>2008 17:58 Apr 09, 2010 Jkt 220001 PO 00000 Frm 00071 Fmt 4703 Sfmt 4703 AUDIT PROCESS. See Note. 1 1 1 AUDIT PROCESS. See Note. 1 1 1 AUDIT PROCESS. See Note. E:\FR\FM\12APN1.SGM 12APN1 18540 Federal Register / Vol. 75, No. 69 / Monday, April 12, 2010 / Notices RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued Average No. annual responses 206.356(a)(1) ...................................... Determine the royalty on produced significant geothermal resource quantities, for Class I leases, with the weighted average of the arm’s-length gross proceeds used to operate the same directuse facility. 1 1 1 206.356(a)(2) ...................................... For Class I leases, the efficiency factor of the alternative energy source will be 0.7 for coal and 0.8 for oil, natural gas, and other fuels derived from oil and natural gas, or an efficiency factor proposed by the lessee and approved MMS. 48 2 96 206.356(a)(3) ...................................... For Class I leases, a royalty determined by any other reasonable method approved by MMS. 1 1 1 206.356(b)(3) ...................................... Provide MMS data showing the geothermal production amount, in pounds or gallons of geothermal fluid, to input into the fee schedule for Class III leases. 1 1 1 206.356(c) .......................................... The MMS will determine fees on a case-by-case basis for geothermal resources other than hot water. 1 1 1 206.357(b)(3) ...................................... Determine the royalty due on byproducts by any other reasonable valuation method approved by MMS. 1 1 1 206.358(d) .......................................... Use a discrete field on Form MMS–2014 to notify MMS of a transportation allowance. Hour burden covered under OMB Control Number 1010–0139. 206.358(d)(2) ...................................... Submit arm’s-length transportation contracts for reviews and audits, if MMS require. AUDIT PROCESS. See Note. 206.358(e) .......................................... Pay any additional royalties due plus interest, if you have improperly determined a byproduct transportation allowance. AUDIT PROCESS. See Note. 206.359(a)(1), (d)(9), (e)(4). (c)(2)(i)(A), Provide written information justifying your transportation costs if MMS require you to determine the byproduct transportation allowance. Include a return on capital if the purchase was necessary. Allowable operating and maintenance expenses include any other directly allocable and attributable operating and maintenance expenses that you can document. AUDIT PROCESS. See Note. 206.359(g) .......................................... The lessee may not later elect to change to the other alternative without MMS approval to compute costs associated with capital investment. 1 1 1 206.359(h)(1) ...................................... You must use a straight-line depreciation method based on the life of either equipment, or geothermal project. 1 1 1 206.359(l)(2) ....................................... You must amend your prior Form MMS–2014 reports to reflect actual byproduct transportation cost deductions and pay any additional royalties due plus interest. Hour burden covered under OMB Control Number 1010–0139. 206.360(a)(1), (a)(2), (b) .................... sroberts on DSKD5P82C1PROD with NOTICES Reporting and recordkeeping requirement Retain all data relevant to the royalty value, or fee you paid. Show how you calculated, then submit all data to MMS upon request. AUDIT PROCESS. See Note. 206.361(a)(1) ...................................... The MMS may review and audit your data and will direct you to use a different measure, if royalty value, gross proceeds, or fee is inconsistent with subpart. AUDIT PROCESS. See Note. VerDate Nov<24>2008 (a)(2), 17:58 Apr 09, 2010 Jkt 220001 PO 00000 Frm 00072 Fmt 4703 Sfmt 4703 Hour burden Annual burden hours Citation 30 CFR E:\FR\FM\12APN1.SGM 12APN1 18541 Federal Register / Vol. 75, No. 69 / Monday, April 12, 2010 / Notices RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued Average No. annual responses Hour burden Annual burden hours Citation 30 CFR Reporting and recordkeeping requirement 206.361(a)(2) ...................................... Pay either royalties or fees due plus interest if MMS directs you to use a different royalty value, measure of gross proceeds, or fee. Hour burden covered under OMB Control Number 1010–0139. 206.361(b), (c), (d) ............................. The MMS may require you to: Increase the gross proceeds to reflect any additional consideration; use another valuation method; provide written information justifying your gross proceeds; demonstrate that your contract is arm’s length; and certify that the provisions in your sales contract include all of the consideration the buyer paid you. AUDIT PROCESS. See Note. 206.361(f)(2) ....................................... Write and sign contract revisions or amendments by all parties to the contract. 1 1 1 206.364(a)(1) ...................................... Request a value determination from MMS in writing 3 20 60 206.364(c)(2) ...................................... Make any adjustments in royalty payments, if you owe additional royalties, and pay the royalties owed plus interest after the Assistant Secretary issues a determination. Hour burden covered under OMB Control Number 1010–0139. 206.364(d)(2) ...................................... You may appeal an order requiring you to pay royalty under the determination. Hour burden covered under OMB Control Number 1010–0122. 206.366 ............................................... State, tribal, or local government lessee must pay a nominal fee, if uses a geothermal resource. Hour burden covered under OMB Control Number 1010–0139. Subpart J—Indian Coal Demonstrate that your contract is arm’s-length. Provide written information justifying the reported coal value. And certify that your arm’s-length contract provisions include all direct or indirect consideration paid by buyer for the coal production. 206.456(d)(1); 206.452 (c); 206.453 .. Retain all data relevant to the determination of royalty value to which individual Indian lease coal should be allocated. Report coal quantity information on Form MMS–4430, Solid Minerals Production and Royalty Report, as required under 30 CFR part 210. 206.456(d)(2) ...................................... An Indian lessee will make available arm’s-length sales and sales quantity data for like-quality coal sold, purchased, or otherwise obtained from the area when requested by an authorized MMS or Indian representative, or the Inspector General of the Department of the Interior or other persons authorized to receive such information. 206.456(d)(3) ...................................... Notify MMS by letter identifying the valuation method used and procedure followed. 1 1 1 206.456(f) ........................................... Propose a value determination method to MMS; submit all available data relevant to method; and use that method until MMS decides. 1 1 1 206.456(i) ........................................... sroberts on DSKD5P82C1PROD with NOTICES 206.456(b)(1), (b)(3), (b)(4) ................ Write and sign contract revisions or amendments by all parties to an arm’s-length contract. 1 1 1 VerDate Nov<24>2008 17:58 Apr 09, 2010 Jkt 220001 PO 00000 Frm 00073 Fmt 4703 Sfmt 4703 E:\FR\FM\12APN1.SGM AUDIT PROCESS. See Note. .42 48 20 AUDIT PROCESS. See Note. 12APN1 18542 Federal Register / Vol. 75, No. 69 / Monday, April 12, 2010 / Notices RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued Average No. annual responses 206.458(a)(1), (b)(1), (c)(1)(i), (c)(1)(iii), (c)(2)(i), (c)(2)(iii). Deduct the reasonable actual coal washing allowance costs incurred under an arm’s-length contract, and allowance based upon their reasonable actual costs under a non-arm’s-length or no contract, after submitting a completed page one of Form MMS–4292, Coal Washing Allowance Report, containing the actual costs for the previous reporting period, within 3 months after the end of the calendar year after the initial and for succeeding reporting periods, and report deduction on Form MMS–4430 for an arm’s-length, or a nonarm’s-length, or no contract. 206.458(a)(3) ...................................... Provide written information justifying your washing costs when MMS determines your washing value unreasonable. 206.458(b)(2)(iv) ................................. The lessee may not later elect to change to the other alternative without MMS approval. 1 1 1 206.458(b)(2)(iv)(A) ............................ Elect either a straight-line depreciation method based on the life of equipment or reserves, or a unit of production method. 1 1 1 206.458(c)(1)(iv), (c)(2)(vi) ................. Submit arm’s-length washing contracts and all related data used on Form MMS–4292. 206.461(a)(1), (b)(1), (c)(1)(i), (c)(1)(iii), (c)(2)(i), (c)(2)(iii). Submit a completed page one of Form MMS–4293, Coal Transportation Allowance Report, of reasonable, actual transportation allowance costs incurred by the lessee for transporting the coal under an arm’s-length contract, in which you may claim a transportation allowance retroactively for a period of not more than 3 months prior to the first day of the month that you filed the form with MMS, unless MMS approves a longer period upon a showing of good cause by the lessee. Submit also a completed Form MMS–4293 based upon the lessee’s reasonable actual costs under a nonarm’s-length or no contract. (Emphasis added.). 206.461(a)(3) ...................................... Provide written information justifying your transportation costs when MMS determines your transportation value unreasonable. 206.461(b)(2)(iv) ................................. Submit completed Form MMS–4293 after a lessee has elected to use either method for a transportation system. 1 1 1 206.461(b)(2)(iv)(A) ............................ Submit completed Form MMS–4293 to compute depreciation for election to use either a straight-line depreciation, or unit-of-production method. 1 1 1 206.461(b)(3) ...................................... Submit completed Form MMS–4293 for exception from the requirement of computing actual costs. 1 1 1 206.461(c)(1)(iv), (c)(2)(vi) ................. Submit arm’s-length transportation contracts, production and operating agreements, and related documents used on Form MMS–4293. 206.463 ............................................... sroberts on DSKD5P82C1PROD with NOTICES Reporting and recordkeeping requirement Propose the value of coal for royalty purposes to MMS for an ad valorem Federal coal lease. 1 1 1 206.464 ............................................... Notify MMS if, prior to use, sale, or other disposition, you enhance the value of coal. 1 1 1 VerDate Nov<24>2008 17:58 Apr 09, 2010 Jkt 220001 PO 00000 Frm 00074 Fmt 4703 Sfmt 4703 Hour burden Annual burden hours Citation 30 CFR E:\FR\FM\12APN1.SGM 2 1 2 AUDIT PROCESS. See Note. AUDIT PROCESS. See Note. 2 1 2 AUDIT PROCESS. See Note. AUDIT PROCESS. See Note. 12APN1 18543 Federal Register / Vol. 75, No. 69 / Monday, April 12, 2010 / Notices RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued Citation 30 CFR Reporting and recordkeeping requirement Average No. annual responses Hour burden Annual burden hours Part 210—Forms and Reports Subpart E—Solid Minerals, General 210.201(a)(1); 206.259(c)(1)(i), (c)(2), (e)(2); 206.262(c)(1), (c)(2)(i), (e)(2); 206.458(c)(4), (e)(2); 206.461(c)(4), (e)(2). Submit a completed Form MMS–4430. Report washing and transportation allowances as a separate line on Form MMS–4430 for arm’s-length, nonarm’s-length, or no contract sales, unless MMS approves a different reporting procedure. Submit also a corrected Form MMS–4430 to reflect actual costs, together with any payment, in accordance with instructions provided by MMS. .75 1,668 1,251 210.202(a)(1), (c)(1) ........................... Submit sales summaries via electronic mail where possible for all coal and other solid minerals produced from Federal and Indian leases and for any remote storage site. .50 1,140 570 210.203(a) .......................................... Submit sales contracts, agreements, and contract amendments for sale of all coal and other solid minerals produced from Federal and Indian leases with ad valorem royalty terms. 1 30 30 210.204(a)(1) ...................................... Submit facility data if you operate a wash plant, refining, ore concentration, or other processing facility for any coal, sodium, potassium, metals, or other solid minerals produced from Federal or Indian leases with ad valorem royalty terms. .25 360 90 210.205(a), (b) .................................... Submit detailed statements, documents, or other evidence necessary to verify compliance, as requested. AUDIT PROCESS. See Note. Subpart H—Geothermal Resources 210.351 ............................................... Maintain geothermal records on microfilm, microfiche, or other recorded media. 210.352 ............................................... Submit additional geothermal information on special forms or reports. 210.353 ............................................... Hour burden covered under OMB Control Number 1010–0139. Submit completed Form MMS–2014 monthly once sales or utilization of geothermal production occur. 1 1 1 Hour burden covered under OMB Control Number 1010–0139. Part 212—Records and Forms Maintenance Subpart E—Solid Minerals—General 212.200(a) .......................................... Maintain all records pertaining to Federal and Indian solid minerals leases for 6 years after records are generated unless the record holder is notified, in writing. .25 4,064 1,016 Subpart H—Geothermal Resources Retain accurate and complete records for payments of royalties, rentals, and other amounts due of Federal geothermal leases. Hour burden covered under OMB Control Numbers 1010–0139 (for Forms MMS–2014 and MMS–4054). 212.351(b) .......................................... sroberts on DSKD5P82C1PROD with NOTICES 212.351(a) .......................................... Maintain all records pertaining to Federal geothermal leases by a lessee, operator, revenue payor, or other person for 6 years. Hour burden covered under OMB Control Numbers 1010–0139 (for Forms MMS–2014 and MMS–4054). Part 217—Audits and Inspections Subpart E—Coal 217.200 ............................................... VerDate Nov<24>2008 17:58 Apr 09, 2010 Furnish, free of charge, duplicate copies of audit reports that express opinions on such compliance with Federal lease terms. Jkt 220001 PO 00000 Frm 00075 Fmt 4703 Sfmt 4703 E:\FR\FM\12APN1.SGM AUDIT PROCESS. See Note. 12APN1 18544 Federal Register / Vol. 75, No. 69 / Monday, April 12, 2010 / Notices RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued Citation 30 CFR Reporting and recordkeeping requirement Average No. annual responses Hour burden Annual burden hours Subpart F—Other Solid Minerals 217.250 ............................................... Furnish, free of charge, duplicate copies of annual or other audits of your books. AUDIT PROCESS. See Note. Subpart G—Geothermal Resources 217.300 ............................................... The Secretary or his/her authorized representative, will initiate and conduct audits or reviews that relate to compliance with applicable regulations. AUDIT PROCESS. See Note. Part 218—Collection of Royalties, Rentals, Bonuses, and Other Monies Due the Federal Government and Credits and Incentives Due Lessees Subpart B—Oil and Gas, General 218.57(a)(2), (b)(3)(i) .......................... Person (‘‘informant’’) should submit any information he or she believes would be valuable to MMS in writing, in the form of a letter and notify the MMS Director that he/she is claiming a reward. 1 1 1 Subpart E—Solid Minerals—General 218.201(b); 206.457(b); 206.460(d) ... You must tender all payments under § 218.51 except for Form MMS–4430 payments, include both your customer identification and your customer document identification numbers on your payment document, and you shall be liable for any additional royalties, plus interest, if improperly determined a washing or transportation allowance. .0055 1,368 8 218.203(a), (b) .................................... Recoup an overpayment on Indian mineral leases through a recoupment on Form MMS–4430 against the current month’s royalties and submit the tribe’s written permission to MMS. 1 1 1 Subpart F—Geothermal Resources 218.300 ............................................... Submit all rental and deferred bonus payments when due and pay in value all royalties due determined by MMS. Hour burden covered under OMB Control Number 1010–0139. 218.301 ............................................... The payor shall tender all payments .......................... Hour burden covered under OMB Control Number 1010–0139. 218.304 ............................................... Pay the direct use fees in addition to the annual rental due. Hour burden covered under OMB Control Number 1010–0139. 218.305(a) .......................................... Pay advanced royalties, under 43 CFR 3212.15(a)(1) to retain your lease, that equal to the average monthly royalty you paid under 30 CFR part 206, subpart H. Hour burden covered under OMB Control Number 1010–0139. 218.306(a)(2) ...................................... You may receive a credit against royalties if MMS approves in advance your contract. 218.306(b) .......................................... Pay in money any royalty amount that is not offset by the credit allowed under this section. 4 1 4 Hour burden covered under OMB Control Number 1010–0139. Total Burden ..................................................................................................................................................... 9,880 3,670 sroberts on DSKD5P82C1PROD 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 ‘‘non-hour cost’’ burden associated with the collection of information. VerDate Nov<24>2008 17:58 Apr 09, 2010 Jkt 220001 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 PO 00000 Frm 00076 Fmt 4703 Sfmt 4703 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 60-day notice in the Federal Register E:\FR\FM\12APN1.SGM 12APN1 sroberts on DSKD5P82C1PROD with NOTICES Federal Register / Vol. 75, No. 69 / Monday, April 12, 2010 / Notices * * * and otherwise consult with members of the public and affected agencies concerning each proposed collection of information * * *.’’ Agencies must specifically solicit comments to: (a) Evaluate whether the proposed collection of information is necessary for the agency to perform its duties, including whether the information is useful; (b) evaluate the accuracy of the agency’s estimate of the burden of the proposed collection of information; (c) enhance the quality, usefulness, and clarity of the information to be collected; and (d) minimize the burden on the respondents, including the use of automated collection techniques or other forms of information technology. The PRA also requires agencies to estimate the total annual reporting ‘‘nonhour cost’’ burden to respondents or recordkeepers resulting from the collection of information. If you have costs to generate, maintain, and disclose this information, you should comment and provide your total capital and startup cost components or annual operation, maintenance, and purchase of service components. You should describe the methods you use to estimate major cost factors, including system and technology acquisition, expected useful life of capital equipment, discount rate(s), and the period over which you incur costs. Capital and startup costs include, among other items, computers and software you purchase to prepare for collecting information; monitoring, sampling, and testing equipment; and record storage facilities. Generally, your estimates should not include equipment or services purchased: (i) Before October 1, 1995; (ii) to comply with requirements not associated with the information collection; (iii) for reasons other than to provide information or keep records for the 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. We also will post the ICR at https://www.mrm.mms.gov/Laws_R_D/ FRNotices/FRInfColl.htm. Public Comment Policy: We will post all comments, including names and addresses of respondents, at https:// www.regulations.gov. 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 VerDate Nov<24>2008 17:58 Apr 09, 2010 Jkt 220001 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 April 2, 2010. Gregory J. Gould, Associate Director for Minerals Revenue Management. [FR Doc. 2010–8196 Filed 4–9–10; 8:45 am] BILLING CODE 4310–MR–P DEPARTMENT OF THE INTERIOR Minerals Management Service [Docket No. MMS–2010–OMM–0018] MMS Information Collection Activity: 1010–0067, Oil and Gas WellCompletion Operations, Extension of a Collection; Comment Request AGENCY: Minerals Management Service (MMS), Interior. ACTION: Notice of extension of an information collection (1010–0067). SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), MMS is inviting comments on a collection of information that we will submit to the Office of Management and Budget (OMB) for review and approval. The information collection request (ICR) concerns the paperwork requirements in the regulations under 30 CFR 250, Subpart E, ‘‘Oil and Gas WellCompletion Operations.’’ DATES: Submit written comments by June 11, 2010. FOR FURTHER INFORMATION CONTACT: Cheryl Blundon, Regulations and Standards Branch at (703) 787–1607. You may also contact Cheryl Blundon to obtain a copy, at no cost, of the regulation that requires the subject collection of information. ADDRESSES: You may submit comments by either of the following methods listed below. • Electronically: go to https:// www.regulations.gov. In the entry titled ‘‘Enter Keyword or ID,’’ enter docket ID MMS–2010–OMM–0018 then click search. Follow the instructions to submit public comments and view supporting and related materials available for this collection. The MMS will post all comments. • Mail or hand-carry comments to the Department of the Interior; Minerals Management Service; Attention: Cheryl Blundon; 381 Elden Street, MS–4024; PO 00000 Frm 00077 Fmt 4703 Sfmt 4703 18545 Herndon, Virginia 20170–4817. Please reference ICR 1010–0067 in your comment and include your name and return address. SUPPLEMENTARY INFORMATION: Title: 30 CFR part 250, subpart E, Oil and Gas Well-Completion Operations. OMB Control Number: 1010–0067. Abstract: The Outer Continental Shelf (OCS) Lands Act, 43 U.S.C. 1331 et seq., and 43 U.S.C. 1801 et seq. requires the Secretary of the Interior to preserve, protect, and develop oil and gas resources in the OCS in a manner that is consistent with the need to make such resources available to meet the Nation’s energy needs as rapidly as possible; balance orderly energy resources development with protection of the human, marine, and coastal environment; ensure the public a fair and equitable return on OCS resources; and preserve and maintain free enterprise competition. Section 1332(6) of the OCS Lands Act (43 U.S.C. 1332) requires that ‘‘operations in the [O]uter Continental Shelf should be conducted in a safe manner by well-trained personnel using technology, precautions, and techniques sufficient to prevent or minimize the likelihood of blowouts, loss of well control, fires, spillages, physical obstruction to other users of the waters or subsoil and seabed, or other occurrences which may cause damage to the environment or to property, or endanger life or health.’’ This authority and responsibility are among those delegated to the Minerals Management Service (MMS). To carry out these responsibilities, MMS issues regulations governing oil and gas and sulphur operations in the OCS. This ICR addresses 30 CFR part 250, subpart E, Oil and Gas Well-Completion Operations and the associated supplementary Notices to Lessees and Operators (NTL) intended to provide clarification, description, or explanation of these regulations. Regulations at 30 CFR part 250 implement these statutory requirements. The MMS District Managers analyze and evaluate the information and data collected under Subpart E to ensure that planned well-completion operations will protect personnel safety and natural resources. They use the analysis and evaluation results in the decision to approve, disapprove, or require modification to the proposed wellcompletion operations. Specifically, MMS uses the information to ensure: (a) Compliance with personnel safety training requirements; (b) crown block safety device is operating and can be expected to function to avoid accidents; (c) proposed operation of the annular E:\FR\FM\12APN1.SGM 12APN1

Agencies

[Federal Register Volume 75, Number 69 (Monday, April 12, 2010)]
[Notices]
[Pages 18536-18545]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-8196]

-----------------------------------------------------------------------

DEPARTMENT OF THE INTERIOR

Minerals Management Service

[Docket No. MMS-2010-MRM-0004]

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 1010-0120).

-----------------------------------------------------------------------

SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), we
are inviting comments on a collection of information that we will
submit to the Office of Management and Budget (OMB) for review and
approval. The title of this information collection request (ICR) is
``30 CFR Parts 202, 206, 210, 212, 217, and 218, Solid Minerals and
Geothermal Collections.''

DATES: Submit written comments on or before June 11, 2010.

ADDRESSES: You may submit comments on this ICR to MMS by any of the
following methods. Please use ``ICR 1010-0120'' as an identifier in
your comment.
Electronically go to https://www.regulations.gov. In the
entry titled ``Enter Keyword or ID,'' enter MMS-2010-MRM-0004, and then
click search. Follow the instructions to submit public comments. The
MMS will post all comments.
Mail comments to Armand Southall, Regulatory Specialist,
Minerals Management Service, Minerals Revenue Management, P.O. Box
25165, MS 61013B, Denver, Colorado 80225. Please reference ICR 1010-
0120 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 1010-0120 in your comments.

FOR FURTHER INFORMATION CONTACT: For questions on technical issues,
contact Glenn W. Kepler, Sr., Solid Minerals and Geothermal (SM&G),
Minerals Revenue Management (MRM), MMS, telephone (303) 231-3346, or e-
mail glenn.kepler@mms.gov. For other comments or questions, contact
Armand Southall, Regulatory Specialist, Project Management Office--
Regulations, MRM, MMS, telephone (303) 231-3221, or e-mail
armand.southall@mms.gov. You may contact Mr. Southall to obtain copies,
at no cost, of (1) the ICR, (2) any associated forms, and (3) the
regulations that require the subject information collection.

SUPPLEMENTARY INFORMATION:
Title: 30 CFR Parts 202, 206, 210, 212, 217, and 218, Solid
Minerals and Geothermal Collections.
OMB Control Number: 1010-0120.
Bureau Form Numbers: Forms MMS-4430, MMS-4292, and MMS-4293.
Abstract: The Secretary of the U.S. Department of the Interior is
responsible for collecting royalties from lessees who produce minerals
from leased Federal and Indian lands. The Secretary is required by
various laws to manage mineral resources production on Federal and
Indian lands, collect the royalties due, and distribute the funds in
accordance with those laws. The Secretary also has a trust
responsibility to manage Indian lands and seek advice and information
from Indian beneficiaries. The MMS performs the royalty management
functions and assists the Secretary in carrying out the Department's
trust responsibility for Indian lands.
Public laws pertaining to mineral leases on Federal and Indian
lands are posted at https://www.mrm.mms.gov/Laws_R_D/PublicLawsAMR.htm.
When a company or an individual enters into a lease to explore,
develop, produce, and dispose of minerals from Federal or Indian lands,
that company or individual agrees to pay the lessor a share (royalty)
of the value received from production from the leased lands. The lease
creates a business relationship between the lessor and the lessee. The
lessee is required to report various kinds of information to the lessor
relative to the disposition of the leased minerals. The information
collected includes data necessary to assure that royalties are
accurately valued and appropriately paid.
The MMS, acting for the Secretary, uses all of the collected
information to support the Minerals Revenue

[[Page 18537]]

Management Audit and Compliance Management (ACM) and Financial
Management (FM) processes, and to assure that royalties reported and
paid are based upon correct product valuation and allocated to the
proper leases. The MMS also uses the collected information, as do other
Federal Government, State, and tribal entities, for audit purposes and
to evaluate the reasonableness of product valuation, production and
sales allocation, or coal washing and/or transportation allowance
claim(s) that lessees submit. Specifically, MMS provides the Bureau of
Land Management (BLM) and the Bureau of Indian Affairs (BIA) access to
this information, which they use to conduct production verification,
ensure lease diligence, and monitor plant efficiencies and inventories
for maximum recovery, and secondary products. The MMS's determination
of the appropriate product value, production and sales allocations, and
coal washing and/or transportation allowance(s) taken directly affects
the royalties due. Failure to collect such data would prevent the
Secretary from accomplishing statutory and trust responsibilities.
Form MMS-4430, Solid Minerals Production and Royalty
Report--Producers of coal and other solid minerals from Federal and
Indian leases electronically file this form monthly. The SM&G uses this
report as the primary accounts receivable document for all solid
minerals royalties. The producers report the data, on a mine-level
basis, which contains basic lease-level production volume, valuation,
and sales information. The SM&G analyzes this production and royalty
information to assure compliance of all payments with lease terms,
regulations, and MMS policies including but not limited to product
valuation, production and sales allocation, and coal washing and/or
transportation allowance(s) calculation.
Contracts and Contract Amendments--Coal and metal
producers submit sales contracts, agreements, and contract amendments
semi-annually. Sodium, potassium, phosphate, and other solid mineral
producers, with leases containing ad valorem royalty terms, submit the
required documents only if specifically requested by MMS.
Sales Summaries--The SM&G compares sales summary
information from purchasers to production, and royalty information
submitted on Form MMS-4430 and facility data submissions.
Facility Data--Operators of wash plants and of refining,
ore concentration, or other processing facilities for any coal, sodium,
potassium, metals, or other solid minerals submit facility data
information for months in which they process or carry an inventory. The
SM&G uses this facility information in its compliance process.
Additional Documents or Evidence--The MMS requests
detailed statements, documents, or other evidence, i.e. spot sale
invoices, weigh tickets, laboratory quality reports, transportation
contracts, and service contracts, supporting our ACM responsibilities
under Federal and Indian lease terms. The information might further
define a cost or verify a claim made by the producer.
Form MMS-4292--Coal Washing Allowance Report and Form MMS-4293--
Coal Transportation Allowance Report--This ICR also provides for the
collection of coal washing and transportation allowance information for
Indian leases. The information collected is essential for the royalty
valuation process.
The MMS developed Forms MMS-4292, Coal Washing Allowance Report,
and MMS-4293, Coal Transportation Allowance Report, for industry to
complete when reporting or requesting a washing or transportation
allowance.
Geothermal Resources--This ICR also provides for the collection of
information on the current royalty valuation methods for geothermal
resources, which are grouped by usage (electrical generation, direct
use, and by-product recovery), and by disposition of the resources
(arm's-length [unaffiliated] contract sales, non-arm's-length contract
sales, and no contract sales) within each usage group. The MMS relies
on data that payors report on Form MMS-2014 (ICR 1010-0139) for the
majority of our business processes including geothermal information.

OMB Approval

The information we collect under this ICR is essential for the
royalty valuation process. Not collecting this information would limit
the Secretary's ability to discharge fiduciary duties and may also
result in the inability to confirm the accurate royalty value.
Proprietary information submitted to MMS under this collection is
protected. No items of a sensitive nature are collected. Responses are
mandatory for Form MMS-4430. A response is required to obtain benefits
for Forms MMS-4292 and MMS-4293.
Frequency of Response: On occasion, annually, monthly.
Estimated Number and Description of Respondents: 144 reporters.
Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 3,670
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
----------------------------------------------------------------------------------------------------------------
Average No.
Citation 30 CFR Reporting and recordkeeping Hour burden annual Annual burden
requirement responses hours
----------------------------------------------------------------------------------------------------------------
Part 202--Royalties
Subpart H--Geothermal Resources
----------------------------------------------------------------------------------------------------------------
202.351(b)(3)...................... Pay royalties on used, Hour burden covered under OMB Control Number
sold, or otherwise finally 1010-0139.
disposed of byproducts.
----------------------------------------------------------------------------------------------------------------
202.353(a), (b), (c), and (d)...... Report on Form MMS-2014, Hour burden covered under OMB Control Number
royalties or direct use 1010-0139. See Sec. 210.52.
fee due for geothermal
resources, byproduct
quantity, and commercially
demineralized water
quantity.
----------------------------------------------------------------------------------------------------------------
202.353(e)......................... Maintain quality AUDIT PROCESS. See Note.
measurements for audits.
----------------------------------------------------------------------------------------------------------------

[[Page 18538]]

Part 206--Product Valuation
Subpart F--Federal Coal
----------------------------------------------------------------------------------------------------------------
206.253(c); 206.254; 206.257(d)(1). Maintain accurate records .4166 816 340
for Federal lease coal and
all data relevant to the
royalty value
determination. Report the
coal quantity information
on appropriate forms under
30 CFR part 210.
----------------------------------------------------------------------------------------------------------------
206.257(b)(1), (b)(3), (b)(4), Demonstrate and certify AUDIT PROCESS. See Note.
(d)(2). your arm's-length contract
provisions including all
consideration paid by
buyer, directly or
indirectly, for coal
production. Provide
written information of
reported arm's-length coal
sales value and quantity
data.
----------------------------------------------------------------------------------------------------------------
206.257(d)(3)...................... Submit a one-time 2 1 2
notification when first
reporting royalties on
Form MMS-4430 and for a
change in method.
----------------------------------------------------------------------------------------------------------------
206.257(f)......................... Submit all available data 5 1 5
relevant to the value
determination proposal.
----------------------------------------------------------------------------------------------------------------
206.257(i)......................... Write and sign contract 2 1 2
revisions or amendments by
all parties to an arm's-
length contract, and
retroactively apply
revisions or amendments to
royalty value for a period
not to exceed two years.
----------------------------------------------------------------------------------------------------------------
206.259(a)(1), (a)(3).............. Demonstrate that your AUDIT PROCESS. See Note.
contract is arm's-length.
Provide written
information justifying the
lessee's washing costs.
----------------------------------------------------------------------------------------------------------------
206.259(a)(1)...................... Report actual washing .34 12 4
allowance on Form MMS-4430
for arm's-length sales.
----------------------------------------------------------------------------------------------------------------
206.259(b)(1)...................... Report actual washing .75 48 36
allowance on Form MMS-4430
for non-arm's-length or no
contract sales.
----------------------------------------------------------------------------------------------------------------
206.259(b)(2)(iv).................. Report washing allowance on 1 1 1
Form MMS-4430 after lessee
elects either method for a
wash plant.
----------------------------------------------------------------------------------------------------------------
206.259(b)(2)(iv)(A)............... Report washing allowance on 1 1 1
Form MMS-4430 for
depreciation--use either
straight-line, or a unit
of production method.
----------------------------------------------------------------------------------------------------------------
206.259(c)(1), (c)(2).............. Submit arm's-length and non- AUDIT PROCESS. See Note.
arm's-length washing
contracts and related
documents to MMS.
----------------------------------------------------------------------------------------------------------------
206.262(a)(1)...................... Report transportation .33 240 80
allowance on Form MMS-4430.
----------------------------------------------------------------------------------------------------------------
206.262(a)(1), (a)(3).............. Demonstrate that your AUDIT PROCESS. See Note.
contract is arm's-length.
Provide written
information justifying
your transportation costs
when MMS determines the
costs unreasonable.
----------------------------------------------------------------------------------------------------------------
206.262(b)(1)...................... Report actual .75 24 18
transportation allowance
on Form MMS-4430 for non-
arm's-length or no
contract sales.
206.262(b)(2)(iv).................. Report transportation 1 1 1
allowance on Form MMS-4430
after lessee elects either
method for a
transportation system.
----------------------------------------------------------------------------------------------------------------
206.262(b)(2)(iv)(A)............... Report transportation 1 1 1
allowance on Form MMS-4430
for depreciation--use
either straight-line, or a
unit of production method.
----------------------------------------------------------------------------------------------------------------
206.262(b)(3)...................... Apply to MMS for exception 1 1 1
from the requirement of
computing actual costs.
----------------------------------------------------------------------------------------------------------------
206.262(c)(1), (c)(2), (e)......... Submit all arm's-length AUDIT PROCESS. See Note.
transportation contracts,
production agreements,
operating agreements, and
related documents to MMS.
----------------------------------------------------------------------------------------------------------------

[[Page 18539]]

206.264............................ Propose the value of coal 1 1 1
for royalty purposes to
MMS for an ad valorem
Federal coal lease.
----------------------------------------------------------------------------------------------------------------
206.265............................ Notify MMS if, prior to 1 1 1
use, sale, or other
disposition, you enhanced
the value of coal.
----------------------------------------------------------------------------------------------------------------
Subpart H--Geothermal Resources
----------------------------------------------------------------------------------------------------------------
206.301(b)......................... Certify values reported for AUDIT PROCESS. See Note.
royalty purposes as bona
fide sales not involving
considerations other than
the sale of the mineral,
and required to supply
supporting information.
----------------------------------------------------------------------------------------------------------------
206.352(b)(1)(ii).................. Determine the royalty on 1 1 1
produced geothermal
resources, used in your
power plant for generation
and sale of electricity,
for Class I leases, as
approved by MMS.
----------------------------------------------------------------------------------------------------------------
206.353(c)(2)(i)(A), (d)(9), (e)(4) Include a return on capital AUDIT PROCESS. See Note.
you invested when the
purchase of real estate
for transmission
facilities is necessary.
Allowable operating and
maintenance expenses
include other directly
allocable and attributable
operating and maintenance
expenses that you can
document.
----------------------------------------------------------------------------------------------------------------
206.353(g)......................... Request change to other 1 1 1
depreciation alternative
method with MMS approval.
----------------------------------------------------------------------------------------------------------------
206.353(h)(1)...................... Use a straight-line 1 1 1
depreciation method, but
not below salvage value,
for equipment.
----------------------------------------------------------------------------------------------------------------
206.353(m)(2)...................... Amend your prior estimated Hour burden covered under OMB Control Number
Form MMS-2014 reports to 1010-0139.
reflect actual
transmission cost
deductions, and pay any
additional royalties due
plus interest.
----------------------------------------------------------------------------------------------------------------
206.353(n)......................... Submit all arm's-length AUDIT PROCESS. See Note.
transmission contracts,
production and operating
agreements and related
documents, and other data
for calculating the
deduction.
----------------------------------------------------------------------------------------------------------------
206.354(b)(1)(ii).................. Redetermine your generating 1 1 1
cost rate annually and
request MMS approval to
use a different deduction
period.
----------------------------------------------------------------------------------------------------------------
206.354(c)(2)(i)(A), (d)(9), (e)(4) Include a return on capital AUDIT PROCESS. See Note.
you invested when the
purchase of real estate
for a power plant site is
necessary. Allowable
operating and maintenance
expenses include other
directly allocable and
attributable operating and
maintenance expenses that
you can document.
----------------------------------------------------------------------------------------------------------------
206.354(g)......................... Request change to other 1 1 1
depreciation alternative
method with MMS approval.
----------------------------------------------------------------------------------------------------------------
206.354(h)......................... Use a straight-line 1 1 1
depreciation method, but
not below the salvage
value, for equipment.
----------------------------------------------------------------------------------------------------------------
206.354(m)(2)...................... Amend your prior estimated Hour burden covered under OMB Control Number
Form MMS-2014 reports to 1010-0139.
reflect actual generating
cost deductions and pay
any additional royalties
due plus interest.
----------------------------------------------------------------------------------------------------------------
206.354(n)......................... Submit all arm's-length AUDIT PROCESS. See Note.
power plant contracts,
production and operating
agreements and related
documents, and other data
for calculating the
deduction.
----------------------------------------------------------------------------------------------------------------

[[Page 18540]]

206.356(a)(1)...................... Determine the royalty on 1 1 1
produced significant
geothermal resource
quantities, for Class I
leases, with the weighted
average of the arm's-
length gross proceeds used
to operate the same direct-
use facility.
----------------------------------------------------------------------------------------------------------------
206.356(a)(2)...................... For Class I leases, the 48 2 96
efficiency factor of the
alternative energy source
will be 0.7 for coal and
0.8 for oil, natural gas,
and other fuels derived
from oil and natural gas,
or an efficiency factor
proposed by the lessee and
approved MMS.
----------------------------------------------------------------------------------------------------------------
206.356(a)(3)...................... For Class I leases, a 1 1 1
royalty determined by any
other reasonable method
approved by MMS.
----------------------------------------------------------------------------------------------------------------
206.356(b)(3)...................... Provide MMS data showing 1 1 1
the geothermal production
amount, in pounds or
gallons of geothermal
fluid, to input into the
fee schedule for Class III
leases.
----------------------------------------------------------------------------------------------------------------
206.356(c)......................... The MMS will determine fees 1 1 1
on a case-by-case basis
for geothermal resources
other than hot water.
----------------------------------------------------------------------------------------------------------------
206.357(b)(3)...................... Determine the royalty due 1 1 1
on byproducts by any other
reasonable valuation
method approved by MMS.
----------------------------------------------------------------------------------------------------------------
206.358(d)......................... Use a discrete field on Hour burden covered under OMB Control Number
Form MMS-2014 to notify 1010-0139.
MMS of a transportation
allowance.
-----------------------------------------------
206.358(d)(2)...................... Submit arm's-length AUDIT PROCESS. See Note.
transportation contracts
for reviews and audits, if
MMS require.
----------------------------------------------------------------------------------------------------------------
206.358(e)......................... Pay any additional AUDIT PROCESS. See Note.
royalties due plus
interest, if you have
improperly determined a
byproduct transportation
allowance.
----------------------------------------------------------------------------------------------------------------
206.359(a)(1), (a)(2), Provide written information AUDIT PROCESS. See Note.
(c)(2)(i)(A), (d)(9), (e)(4). justifying your
transportation costs if
MMS require you to
determine the byproduct
transportation allowance.
Include a return on
capital if the purchase
was necessary. Allowable
operating and maintenance
expenses include any other
directly allocable and
attributable operating and
maintenance expenses that
you can document.
----------------------------------------------------------------------------------------------------------------
206.359(g)......................... The lessee may not later 1 1 1
elect to change to the
other alternative without
MMS approval to compute
costs associated with
capital investment.
----------------------------------------------------------------------------------------------------------------
206.359(h)(1)...................... You must use a straight- 1 1 1
line depreciation method
based on the life of
either equipment, or
geothermal project.
----------------------------------------------------------------------------------------------------------------
206.359(l)(2)...................... You must amend your prior Hour burden covered under OMB Control Number
Form MMS-2014 reports to 1010-0139.
reflect actual byproduct
transportation cost
deductions and pay any
additional royalties due
plus interest.
----------------------------------------------------------------------------------------------------------------
206.360(a)(1), (a)(2), (b)......... Retain all data relevant to AUDIT PROCESS. See Note.
the royalty value, or fee
you paid. Show how you
calculated, then submit
all data to MMS upon
request.
----------------------------------------------------------------------------------------------------------------
206.361(a)(1)...................... The MMS may review and AUDIT PROCESS. See Note.
audit your data and will
direct you to use a
different measure, if
royalty value, gross
proceeds, or fee is
inconsistent with subpart.
----------------------------------------------------------------------------------------------------------------

[[Page 18541]]

206.361(a)(2)...................... Pay either royalties or Hour burden covered under OMB Control Number
fees due plus interest if 1010-0139.
MMS directs you to use a
different royalty value,
measure of gross proceeds,
or fee.
----------------------------------------------------------------------------------------------------------------
206.361(b), (c), (d)............... The MMS may require you to: AUDIT PROCESS. See Note.
Increase the gross
proceeds to reflect any
additional consideration;
use another valuation
method; provide written
information justifying
your gross proceeds;
demonstrate that your
contract is arm's length;
and certify that the
provisions in your sales
contract include all of
the consideration the
buyer paid you.
----------------------------------------------------------------------------------------------------------------
206.361(f)(2)...................... Write and sign contract 1 1 1
revisions or amendments by
all parties to the
contract.
----------------------------------------------------------------------------------------------------------------
206.364(a)(1)...................... Request a value 3 20 60
determination from MMS in
writing.
----------------------------------------------------------------------------------------------------------------
206.364(c)(2)...................... Make any adjustments in Hour burden covered under OMB Control Number
royalty payments, if you 1010-0139.
owe additional royalties,
and pay the royalties owed
plus interest after the
Assistant Secretary issues
a determination.
----------------------------------------------------------------------------------------------------------------
206.364(d)(2)...................... You may appeal an order Hour burden covered under OMB Control Number
requiring you to pay 1010-0122.
royalty under the
determination.
----------------------------------------------------------------------------------------------------------------
206.366............................ State, tribal, or local Hour burden covered under OMB Control Number
government lessee must pay 1010-0139.
a nominal fee, if uses a
geothermal resource.
----------------------------------------------------------------------------------------------------------------
Subpart J--Indian Coal
----------------------------------------------------------------------------------------------------------------
206.456(b)(1), (b)(3), (b)(4)...... Demonstrate that your AUDIT PROCESS. See Note.
contract is arm's-length.
Provide written
information justifying the
reported coal value. And
certify that your arm's-
length contract provisions
include all direct or
indirect consideration
paid by buyer for the coal
production.
----------------------------------------------------------------------------------------------------------------
206.456(d)(1); 206.452 (c); 206.453 Retain all data relevant to .42 48 20
the determination of
royalty value to which
individual Indian lease
coal should be allocated.
Report coal quantity
information on Form MMS-
4430, Solid Minerals
Production and Royalty
Report, as required under
30 CFR part 210.
----------------------------------------------------------------------------------------------------------------
206.456(d)(2)...................... An Indian lessee will make AUDIT PROCESS. See Note.
available arm's-length
sales and sales quantity
data for like-quality coal
sold, purchased, or
otherwise obtained from
the area when requested by
an authorized MMS or
Indian representative, or
the Inspector General of
the Department of the
Interior or other persons
authorized to receive such
information.
----------------------------------------------------------------------------------------------------------------
206.456(d)(3)...................... Notify MMS by letter 1 1 1
identifying the valuation
method used and procedure
followed.
----------------------------------------------------------------------------------------------------------------
206.456(f)......................... Propose a value 1 1 1
determination method to
MMS; submit all available
data relevant to method;
and use that method until
MMS decides.
----------------------------------------------------------------------------------------------------------------
206.456(i)......................... Write and sign contract 1 1 1
revisions or amendments by
all parties to an arm's-
length contract.
----------------------------------------------------------------------------------------------------------------

[[Page 18542]]

206.458(a)(1), (b)(1), (c)(1)(i), Deduct the reasonable 2 1 2
(c)(1)(iii), (c)(2)(i), actual coal washing
(c)(2)(iii). allowance costs incurred
under an arm's-length
contract, and allowance
based upon their
reasonable actual costs
under a non-arm's-length
or no contract, after
submitting a completed
page one of Form MMS-4292,
Coal Washing Allowance
Report, containing the
actual costs for the
previous reporting period,
within 3 months after the
end of the calendar year
after the initial and for
succeeding reporting
periods, and report
deduction on Form MMS-4430
for an arm's-length, or a
non-arm's-length, or no
contract.
----------------------------------------------------------------------------------------------------------------
206.458(a)(3)...................... Provide written information AUDIT PROCESS. See Note.
justifying your washing
costs when MMS determines
your washing value
unreasonable.
----------------------------------------------------------------------------------------------------------------
206.458(b)(2)(iv).................. The lessee may not later 1 1 1
elect to change to the
other alternative without
MMS approval.
----------------------------------------------------------------------------------------------------------------
206.458(b)(2)(iv)(A)............... Elect either a straight- 1 1 1
line depreciation method
based on the life of
equipment or reserves, or
a unit of production
method.
----------------------------------------------------------------------------------------------------------------
206.458(c)(1)(iv), (c)(2)(vi)...... Submit arm's-length washing AUDIT PROCESS. See Note.
contracts and all related
data used on Form MMS-4292.
----------------------------------------------------------------------------------------------------------------
206.461(a)(1), (b)(1), (c)(1)(i), Submit a completed page one 2 1 2
(c)(1)(iii), (c)(2)(i), of Form MMS-4293, Coal
(c)(2)(iii). Transportation Allowance
Report, of reasonable,
actual transportation
allowance costs incurred
by the lessee for
transporting the coal
under an arm's-length
contract, in which you may
claim a transportation
allowance retroactively
for a period of not more
than 3 months prior to the
first day of the month
that you filed the form
with MMS, unless MMS
approves a longer period
upon a showing of good
cause by the lessee.
Submit also a completed
Form MMS-4293 based upon
the lessee's reasonable
actual costs under a non-
arm's-length or no
contract. (Emphasis
added.).
----------------------------------------------------------------------------------------------------------------
206.461(a)(3)...................... Provide written information AUDIT PROCESS. See Note.
justifying your
transportation costs when
MMS determines your
transportation value
unreasonable.
----------------------------------------------------------------------------------------------------------------
206.461(b)(2)(iv).................. Submit completed Form MMS- 1 1 1
4293 after a lessee has
elected to use either
method for a
transportation system.
----------------------------------------------------------------------------------------------------------------
206.461(b)(2)(iv)(A)............... Submit completed Form MMS- 1 1 1
4293 to compute
depreciation for election
to use either a straight-
line depreciation, or unit-
of-production method.
----------------------------------------------------------------------------------------------------------------
206.461(b)(3)...................... Submit completed Form MMS- 1 1 1
4293 for exception from
the requirement of
computing actual costs.
----------------------------------------------------------------------------------------------------------------
206.461(c)(1)(iv), (c)(2)(vi)...... Submit arm's-length AUDIT PROCESS. See Note.
transportation contracts,
production and operating
agreements, and related
documents used on Form MMS-
4293.
----------------------------------------------------------------------------------------------------------------
206.463............................ Propose the value of coal 1 1 1
for royalty purposes to
MMS for an ad valorem
Federal coal lease.
----------------------------------------------------------------------------------------------------------------
206.464............................ Notify MMS if, prior to 1 1 1
use, sale, or other
disposition, you enhance
the value of coal.
----------------------------------------------------------------------------------------------------------------

[[Page 18543]]

Part 210--Forms and Reports
Subpart E--Solid Minerals, General
----------------------------------------------------------------------------------------------------------------
210.201(a)(1); 206.259(c)(1)(i), Submit a completed Form MMS- .75 1,668 1,251
(c)(2), (e)(2); 206.262(c)(1), 4430. Report washing and
(c)(2)(i), (e)(2); 206.458(c)(4), transportation allowances
(e)(2); 206.461(c)(4), (e)(2). as a separate line on Form
MMS-4430 for arm's-length,
non-arm's-length, or no
contract sales, unless MMS
approves a different
reporting procedure.
Submit also a corrected
Form MMS-4430 to reflect
actual costs, together
with any payment, in
accordance with
instructions provided by
MMS.
----------------------------------------------------------------------------------------------------------------
210.202(a)(1), (c)(1).............. Submit sales summaries via .50 1,140 570
electronic mail where
possible for all coal and
other solid minerals
produced from Federal and
Indian leases and for any
remote storage site.
----------------------------------------------------------------------------------------------------------------
210.203(a)......................... Submit sales contracts, 1 30 30
agreements, and contract
amendments for sale of all
coal and other solid
minerals produced from
Federal and Indian leases
with ad valorem royalty
terms.
----------------------------------------------------------------------------------------------------------------
210.204(a)(1)...................... Submit facility data if you .25 360 90
operate a wash plant,
refining, ore
concentration, or other
processing facility for
any coal, sodium,
potassium, metals, or
other solid minerals
produced from Federal or
Indian leases with ad
valorem royalty terms.
----------------------------------------------------------------------------------------------------------------
210.205(a), (b).................... Submit detailed statements, AUDIT PROCESS. See Note.
documents, or other
evidence necessary to
verify compliance, as
requested.
----------------------------------------------------------------------------------------------------------------
Subpart H--Geothermal Resources
----------------------------------------------------------------------------------------------------------------
210.351............................ Maintain geothermal records Hour burden covered under OMB Control Number
on microfilm, microfiche, 1010-0139.
or other recorded media.
----------------------------------------------------------------------------------------------------------------
210.352............................ Submit additional 1 1 1
geothermal information on
special forms or reports.
----------------------------------------------------------------------------------------------------------------
210.353............................ Submit completed Form MMS- Hour burden covered under OMB Control Number
2014 monthly once sales or 1010-0139.
utilization of geothermal
production occur.
----------------------------------------------------------------------------------------------------------------
Part 212--Records and Forms Maintenance
Subpart E--Solid Minerals--General
----------------------------------------------------------------------------------------------------------------
212.200(a)......................... Maintain all records .25 4,064 1,016
pertaining to Federal and
Indian solid minerals
leases for 6 years after
records are generated
unless the record holder
is notified, in writing.
----------------------------------------------------------------------------------------------------------------
Subpart H--Geothermal Resources
----------------------------------------------------------------------------------------------------------------
212.351(a)......................... Retain accurate and Hour burden covered under OMB Control Numbers
complete records for 1010-0139 (for Forms MMS-2014 and MMS-4054).
payments of royalties,
rentals, and other amounts
due of Federal geothermal
leases.
----------------------------------------------------------------------------------------------------------------
212.351(b)......................... Maintain all records Hour burden covered under OMB Control Numbers
pertaining to Federal 1010-0139 (for Forms MMS-2014 and MMS-4054).
geothermal leases by a
lessee, operator, revenue
payor, or other person for
6 years.
----------------------------------------------------------------------------------------------------------------
Part 217--Audits and Inspections
Subpart E--Coal
----------------------------------------------------------------------------------------------------------------
217.200............................ Furnish, free of charge, AUDIT PROCESS. See Note.
duplicate copies of audit
reports that express
opinions on such
compliance with Federal
lease terms.
----------------------------------------------------------------------------------------------------------------

[[Page 18544]]

Subpart F--Other Solid Minerals
----------------------------------------------------------------------------------------------------------------
217.250............................ Furnish, free of charge, AUDIT PROCESS. See Note.
duplicate copies of annual
or other audits of your
books.
----------------------------------------------------------------------------------------------------------------
Subpart G--Geothermal Resources
----------------------------------------------------------------------------------------------------------------
217.300............................ The Secretary or his/her AUDIT PROCESS. See Note.
authorized representative,
will initiate and conduct
audits or reviews that
relate to compliance with
applicable regulations.
----------------------------------------------------------------------------------------------------------------
Part 218--Collection of Royalties, Rentals, Bonuses, and Other Monies
Due the Federal Government and Credits and Incentives Due Lessees
Subpart B--Oil and Gas, General
----------------------------------------------------------------------------------------------------------------
218.57(a)(2), (b)(3)(i)............ Person (``informant'') 1 1 1
should submit any
information he or she
believes would be valuable
to MMS in writing, in the
form of a letter and
notify the MMS Director
that he/she is claiming a
reward.
----------------------------------------------------------------------------------------------------------------
Subpart E--Solid Minerals--General
----------------------------------------------------------------------------------------------------------------
218.201(b); 206.457(b); 206.460(d). You must tender all .0055 1,368 8
payments under Sec.
218.51 except for Form MMS-
4430 payments, include
both your customer
identification and your
customer document
identification numbers on
your payment document, and
you shall be liable for
any additional royalties,
plus interest, if
improperly determined a
washing or transportation

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