Agency Information Collection Activities: Proposed Collection, Comment Request, 18525-18536 [2010-8198]
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Federal Register / Vol. 75, No. 69 / Monday, April 12, 2010 / Notices
SUMMARY: The National Fire Academy
Board of Visitors will meet on April 28–
29, 2010.
DATES: The meeting will take place
Wednesday, April 28, 2010, from 8:30
a.m. to 5 p.m., e.s.t.; and Thursday,
April 29, 2010, from 8:30 a.m. to 1 p.m.,
e.s.t. Comments must be submitted by
April 27, 2010.
ADDRESSES: Members of the public who
wish to obtain information for the
public meeting or who plan to
participate in the meeting should
contact Teressa Kaas as listed in the FOR
FURTHER INFORMATION CONTACT section
by April 27, 2010. Members of the
public may participate by coming to the
National Emergency Training Center,
Building H, Room 300, Emmitsburg,
Maryland. Written material as well as
requests to have written material
distributed to each member of the
committee prior to the meeting should
reach Teressa Kaas as listed in the FOR
FURTHER INFORMATION CONTACT section
by April 27, 2010. Comments must be
identified by docket ID FEMA–2008–
0010 and may be submitted by one of
the following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• E-mail: FEMA–RULES@dhs.gov.
Include the docket ID in the subject line
of the message.
• Fax: (866) 466–5370.
• Mail: Teressa Kaas, 16825 South
Seton Avenue, Emmitsburg, Maryland
21727.
Instructions: All submissions received
must include the docket ID for this
action. Comments received will be
posted without alteration at https://
www.regulations.gov, including any
personal information provided.
Docket: For access to the docket to
read background documents or
comments received by the National Fire
Academy Board of Visitors, go to
https://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT:
Teressa Kaas, 16825 South Seton
Avenue, Emmitsburg, Maryland 21727,
telephone (301) 447–1117, fax (301)
447–1173, and e-mail
teressa.kaas@dhs.gov.
SUPPLEMENTARY INFORMATION: Notice of
this meeting is given under the Federal
Advisory Committee Act, 5 U.S.C. App.
(Pub. L. 92–463). The National Fire
Academy Board of Visitors will be
holding a meeting for purposes of
reviewing National Fire Academy
Program activities, including the status
of campus maintenance and capital
improvements, the budget update, the
Applicant Outreach Committee Report,
the Emergency Medical Services
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Committee Report, the Training
Resources and Data Exchange Review
Committee Report, the Fire and
Emergency Services Higher Education
Committee Report, the Academy update,
and Board discussions and new items.
This meeting is open to the public.
The Chairperson of the National Fire
Academy Board of Visitors shall
conduct the meeting in a way that will,
in her judgment, facilitate the orderly
conduct of business. During its meeting,
the committee welcomes public
comment; however, comments will be
permitted only during the public
comment period. The Chairperson will
make every effort to hear the views of
all interested parties. Please note that
the meeting may end early if all
business is completed.
Information on Services for Individuals
With Disabilities
For information on facilities or
services for individuals with disabilities
or to request special assistance at the
meeting, contact Teressa Kaas as soon as
possible.
Dated: March 30, 2010.
Denis G. Onieal,
Superintendent, National Fire Academy,
United States Fire Administration, Federal
Emergency Management Agency.
[FR Doc. 2010–8238 Filed 4–9–10; 8:45 am]
BILLING CODE 9110–45–P
DEPARTMENT OF THE INTERIOR
Minerals Management Service
[Docket No. MMS–2008–MRM–0031]
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
1010–0136).
SUMMARY: To comply with the
Paperwork Reduction Act of 1995
(PRA), we are inviting comments on a
collection of information that we will
submit to the Office of Management and
Budget (OMB) for review and approval.
We consolidated this information
collection request (ICR) and ICR 1010–
0090, Stripper Royalty Rate Reduction
Notification, in order to allow programwide review of Federal oil and gas
valuation. The new title of this ICR is
‘‘30 CFR parts 202, 204, 206, and 210,
Federal Oil and Gas Valuation.’’
DATES: Submit written comments on or
before June 11, 2010.
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ADDRESSES: You may submit comments
on this ICR by any of the following
methods. Please use ‘‘ICR 1010–0136’’ as
an identifier in your comment.
• Electronically go to https://
www.regulations.gov. In the entry titled
‘‘Enter Keyword or ID,’’ enter MMS–
2008–MRM–0031, and then click
search. Follow the instructions to
submit public comments. The MMS will
post all comments.
• Mail comments to Hyla Hurst,
Regulatory Specialist, Minerals
Management Service, Minerals Revenue
Management, P.O. Box 25165, MS
61013B, Denver, Colorado 80225. Please
reference ICR 1010–0136 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 1010–0136
in your comments.
FOR FURTHER INFORMATION CONTACT: Hyla
Hurst, telephone (303) 231–3495, or email hyla.hurst@mms.gov. You may also
contact Hyla Hurst to obtain copies, at
no cost, of (1) the ICR, (2) any associated
forms, and (3) the regulations that
require the subject collection of
information.
SUPPLEMENTARY INFORMATION:
Title: 30 CFR parts 202, 204, 206, and
210, Federal Oil and Gas Valuation.
OMB Control Number: 1010–0136.
Bureau Form Number: Forms MMS–
4377 and MMS–4393.
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). The Secretary
is required by various laws to manage
mineral resource production from
Federal and Indian lands and the OCS,
collect the royalties and other mineral
revenues due, and distribute the funds
collected in accordance with applicable
laws. Public laws pertaining to mineral
leases on Federal and Indian lands are
posted on our Web site at https://
www.mrm.mms.gov/Laws_R_D/
PublicLawsAMR.htm.
General Information
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 in an amount or value of
production from the leased lands. The
lessee is required to report various kinds
of information to the lessor relative to
the disposition of the leased minerals.
Such information is generally available
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Federal Register / Vol. 75, No. 69 / Monday, April 12, 2010 / Notices
within the records of the lessee or others
involved in developing, transporting,
processing, purchasing, or selling of
such minerals.
We use the information collected in
this ICR to ensure that royalty is
accurately valued and appropriately
paid on oil and gas produced from
Federal onshore and offshore leases.
Please refer to the Respondents’
Estimated Annual Burden Hours table
for all reporting requirements and
associated burden hours. All data
submitted is subject to subsequent audit
and adjustment.
Federal Oil and Gas Valuation
Regulations
The valuation regulations at 30 CFR
part 206, subparts C and D, mandate
that companies collect and/or submit
information used to value their Federal
oil and gas, including (1) transportation
and processing allowances; and (2)
regulatory allowance limitation
information. Companies report certain
data on Form MMS–2014, Report of
Sales and Royalty Remittance (OMB
Control Number 1010–0139). The
information requested is the minimum
necessary to carry out our mission and
places the least possible burden on
respondents. If MMS does not collect
this information, both Federal and State
governments may incur a loss of
royalties.
Transportation and Processing
Regulatory Allowance Limits
Lessees may deduct the reasonable,
actual costs of transportation and
processing from Federal royalties.
Lessees who request approval to exceed
the regulatory allowance limits are
required to provide information in order
to obtain these benefits.
Request To Exceed Regulatory
Allowance Limitation, Form MMS–4393
Lessees may request to exceed
regulatory limitations. Upon proper
application from the lessee, we may
approve an oil or gas transportation
allowance in excess of 50 percent or a
gas processing allowance in excess of
662⁄3 percent on Federal leases. Form
MMS–4393 is used for both Federal and
Indian leases to request to exceed
allowance limitations. This ICR
includes only Federal leases; therefore
burden hours for Form MMS–4393 for
Indian leases are not included in this
ICR. Burden hours for Form MMS–4393
for Indian leases are included in OMB
Control Number 1010–0103.
Accounting and Auditing Relief for
Marginal Properties
In 2004, we amended our regulations
to comply with section 7 of the Federal
Oil and Gas Royalty Simplification and
Fairness Act of 1996. The regulations
provide guidance for lessees and
designees seeking accounting and
auditing relief for qualifying Federal
marginal properties. Under the
regulations, both MMS and the state
concerned must approve any relief
granted for a marginal property.
Stripper Oil Royalty Rate Reduction
Program
Under 43 CFR 3103.4–2, the Stripper
Oil Royalty Rate Reduction Program
(Stripper Oil Program) was established
by the Bureau of Land Management
(BLM), the surface management agency
for Federal onshore leases. As a benefit
under this program, MMS, who
administered the Stripper Oil Program
for BLM, approved royalty rate
reductions for operators of stripper oil
properties for applicable sales periods
from October 1, 1992, through January
31, 2006. Effective February 1, 2006, the
benefits of reduced royalty rates under
this program were terminated. This
change is not currently reflected in the
CFR; however, BLM is processing a final
rule to remove this citation from the
regulations.
For production through January 31,
2006, reporters used Form MMS–4377,
Stripper Royalty Rate Reduction
Notification, to notify MMS of royalty
rate changes. Although the benefits were
terminated, MMS continues to verify
previously submitted notifications and
may require the operator to submit an
amended Form MMS–4377.
OMB Approval
We are requesting 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
royalty payments. Proprietary
information submitted to MMS under
this collection is protected, and no
items of a sensitive nature are included
in this information collection.
For information collections relating to
valuation requirements, responses are
mandatory. For the remaining
information collections in this ICR,
responses are required to obtain
benefits.
Frequency: Annually and on occasion.
Estimated Number and Description of
Respondents: 120 Federal lessees/
designees and 7 states for Federal oil
and gas valuation; and 150 lessees/
lessors for the Stripper Oil Program.
Estimated Annual Reporting and
Recordkeeping ‘‘Hour’’ Burden: 9,378
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
30 CFR 202, 204, 206, and 210
Reporting and recordkeeping requirement
Hour burden
Average number of annual
responses
Annual burden
hours
PART 202—ROYALTIES
Subpart C—Federal and Indian Oil
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202.101 .........................................
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202.101 Oil volumes are to be reported in barrels of
clean oil of 42 standard U.S. gallons (231 cubic
inches each) at 60 °F. * * *
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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
30 CFR 202, 204, 206, and 210
Reporting and recordkeeping requirement
Hour burden
Average number of annual
responses
Annual burden
hours
Subpart D—Federal Gas
202.152(a) and (b) ........................
202.152(a)(1) If you are responsible for reporting production or royalties you must:
(i) Report gas volumes and British thermal unit (Btu)
heating values, if applicable, under the same degree
of water saturation;
(ii) Report gas volumes in units of 1,000 cubic feet
(mcf); and
(iii) Report gas volumes and Btu heating value at a
standard pressure base of 14.73 pounds per square
inch absolute (psia) and a standard temperature base
of 60 °F. * * *
(b) Residue gas and gas plant product volumes shall be
reported as specified in this paragraph. * * *
Burden covered under OMB Control Number
1010–0139.
PART 204—ALTERNATIVES FOR MARGINAL PROPERTIES
Subpart C—Accounting and Auditing Relief
204.202(b) To use the cumulative royalty reports and
payments relief option, you must do all of the following:
(1) Notify MMS in writing by January 31 of the calendar
year for which you begin taking your relief. * * *
204.202(b)(2) and (b)(3) ...............
204.202(b)(2) Submit your royalty report and payment
* * * by the end of February of the year following the
calendar year for which you reported annually. * * *
If you have an estimated payment on file, you must
submit your royalty report and payment by the end of
March of the year following the calendar year for
which you reported annually;
(3) Use the sales month prior to the month that you
submit your annual report and payment * * * for the
entire previous calendar year’s production for which
you are paying annually. * * *
Burden covered under OMB Control Number
1010–0139.
204.202(b)(4), (b)(5), (c), (d)(1),
(d)(2), (e)(1), and (e)(2).
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204.202(b)(1) ................................
204.202(b) To use the cumulative royalty reports and
payments relief option, you must * * *
(4) Report one line of cumulative royalty information on
Form MMS–2014 for the calendar year * * * and
(5) Report allowances on Form MMS–2014 on the
same annual basis as the royalties for your marginal
property production.
(c) If you do not pay your royalty by the date due in
paragraph (b) of this section, you will owe late payment interest * * * from the date your payment was
due under this section until the date MMS receives it.
* * *
(d) If you take relief you are not qualified for, you may
be liable for civil penalties. Also you must:
(1) Pay MMS late payment interest determined under
30 CFR 218.54 * * *
(2) Amend your Form MMS–2014 * * *
(e) If you dispose of your ownership interest in a marginal property for which you have taken relief * * *
you must:
(1) Report and pay royalties for the portion of the calendar year for which you had an ownership interest;
and
(2) Make the report and payment by the end of the
month after you dispose of the ownership interest in
the marginal property. If you do not report and pay
timely, you will owe interest * * * from the date the
payment was due. * * *
Burden covered under OMB Control Number
1010–0139.
204.203(b), 204.205(a) and (b),
and 204.206(a)(3)(i) and (b)(1).
204.203(b) You must request approval from MMS * * *
before taking relief under this option.
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200
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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Average number of annual
responses
Hour burden
Annual burden
hours
1
6
30 CFR 202, 204, 206, and 210
Reporting and recordkeeping requirement
204.209(b) .....................................
204.209(b) If a property is no longer eligible for relief
* * * the relief for the property terminates as of December 31 of that calendar year. You must notify
MMS in writing by December 31 that the relief for the
property has terminated * * *.
204.210(c) and (d) ........................
204.210(c) * * * the volumes on which you report and
pay royalty * * * must be amended to reflect all volumes produced on or allocated to your lease under
the nonqualifying agreement as modified by BLM.
* * * Report and pay royalties for your production
using the procedures in § 204.202(b).
(d) If you owe additional royalties based on the retroactive agreement approval and do not pay your royalty by the date due in § 204.202(b), you will owe late
payment interest determined under 30 CFR 218.54
from the date your payment was due under
§ 204.202(b)(2) until the date MMS receives it.
Burden covered under OMB Control Number
1010–0139.
204.214(b)(1) and (b)(2) ...............
204.214(b) If you pay minimum royalty on production
from a marginal property during a calendar year for
which you are taking cumulative royalty reports and
payment relief, and:
(1) The annual payment you owe under this subpart is
greater than the minimum royalty you paid, you must
pay the difference between the minimum royalty you
paid and your annual payment due under this subpart; or
(2) The annual payment you owe under this subpart is
less than the minimum royalty you paid, you are not
entitled to a credit because you must pay at least the
minimum royalty amount on your lease each year.
Burden covered under OMB Control Number
1010–0139.
6
Accounting and Auditing Relief Subtotal ....................................................................................................
10
526
PART 206—PRODUCT VALUATION
Subpart C—Federal Oil
206.102(e) If you value oil under paragraph (a) of this
section: (1) MMS may require you to certify that your
or your affiliate’s arm’s-length contract provisions include all of the consideration the buyer must pay, either directly or indirectly, for the oil.
206.103(a)(1), (a)(2), and (a)(3) ...
206.103 This section explains how to value oil that you
may not value under § 206.102 or that you elect
under § 206.102(d) to value under this section. First
determine whether paragraph (a), (b), or (c) of this
section applies to production from your lease, or
whether you may apply paragraph (d) or (e) with
MMS approval. (a) Production from leases in California or Alaska. Value is the average of the daily
mean ANS spot prices published in any MMS-approved publication during the trading month most concurrent with the production month. * * *.
(1) To calculate the daily mean spot price * * *
(2) Use only the days * * *
(3) You must adjust the value * * *
45
5
225
206.103(a)(4) ................................
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206.102(e)(1) ................................
206.103(a)(4) After you select an MMS-approved publication, you may not select a different publication
more often than once every 2 years, * * *.
8
2
16
206.103(b)(1) ................................
206.103(b) Production from leases in the Rocky Mountain Region. * * * (1) If you have an MMS-approved
tendering program, you must value oil * * *.
400
2
800
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AUDIT PROCESS. See note.
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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Average number of annual
responses
Annual burden
hours
400
2
800
206.103(b)(4) If you demonstrate to MMS’s satisfaction
that paragraphs (b)(1) through (b)(3) of this section
result in an unreasonable value for your production as
a result of circumstances regarding that production,
the MMS Director may establish an alternative valuation method.
400
2
800
206.103(c)(1) .................................
206.103(c) Production from leases not located in California, Alaska or the Rocky Mountain Region. (1)
Value is the NYMEX price, plus the roll, adjusted for
applicable location and quality differentials and transportation costs under § 206.112.
50
10
500
206.103(e)(1) and (e)(2) ...............
206.103(e) Production delivered to your refinery and the
NYMEX price or ANS spot price is an unreasonable
value.
(1) * * * you may apply to the MMS Director to establish a value representing the market at the refinery if:
* * *
(2) You must provide adequate documentation and evidence demonstrating the market value at the refinery.
* * *
330
2
660
206.105 .........................................
206.105 If you determine the value of your oil under this
subpart, you must retain all data relevant to the determination of royalty value. * * *.
206.107(a) .....................................
206.107(a) You may request a value determination from
MMS * * *.
40
10
400
206.109(c)(2) .................................
206.109(c) Limits on transportation allowances. (2) You
may ask MMS to approve a transportation allowance
in excess of the limitation in paragraph (c)(1) of this
section. * * *.
Your application for exception (using Form MMS–4393,
Request to Exceed Regulatory Allowance Limitation)
must contain all relevant and supporting documentation necessary for MMS to make a determination
* * *.
8
2
16
206.110(a) .....................................
206.110(a) * * * You must be able to demonstrate that
your or your affiliate’s contract is at arm’s length.
* * *.
206.110(d)(3) ................................
206.110(d) If your arm’s-length transportation contract
includes more than one liquid product, and the transportation costs attributable to each product cannot be
determined * * *.
(3) You may propose to MMS a cost allocation method
* * *
20
2
40
206.110(e) .....................................
206.110(e) If your arm’s-length transportation contract
includes both gaseous and liquid products, and the
transportation costs attributable to each product cannot be determined from the contract, then you must
propose an allocation procedure to MMS.
20
1
20
206.110(e)(1) and (e)(2) ...............
206.110(e)(1) * * * If MMS rejects your cost allocation,
you must amend your Form MMS–2014 * * *.
(2) You must submit your initial proposal, including all
available data, within 3 months after first claiming the
allocated deductions on Form MMS–2014.
Reporting and recordkeeping requirement
206.103(b)(1)(ii) ............................
206.103(b)(1)(ii) If you do not have an MMS-approved
tendering program, you may elect to value your oil
under either paragraph (b)(2) or (b)(3) of this section.
* * *.
206.103(b)(4) ................................
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30 CFR 202, 204, 206, and 210
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Hour burden
Burden covered under OMB Control Number
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AUDIT PROCESS. See note.
Burden covered under OMB Control Number
1010–0139.
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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Average number of annual
responses
Annual burden
hours
5
1
5
206.111(g) To compute depreciation, you may elect to
use either * * *. After you make an election, you may
not change methods without MMS approval. * * *.
30
1
30
206.111(k)(2) .................................
206.111(k)(2) You may propose to MMS a cost allocation method on the basis of the values * * *.
30
1
30
206.111(l)(1) and (l)(3) ..................
206.111(l)(1) Where you transport both gaseous and liquid products through the same transportation system,
you must propose a cost allocation procedure to
MMS. * * *.
(3) You must submit your initial proposal, including all
available data, within 3 months after first claiming the
allocated deductions on Form MMS–2014.
20
1
20
206.111(l)(2) ..................................
206.111(l)(2) * * * If MMS rejects your cost allocation,
you must amend your Form MMS–2104 for the
months that you used the rejected method and pay
any additional royalty and interest due.
206.112(a)(1)(ii) ............................
206.112(a)(1)(ii) * * * under an exchange agreement
that is not at arm’s length, you must obtain approval
from MMS for a location and quality differential * * *
80
1
80
206.112(a)(1)(ii) ............................
206.112(a)(1)(ii) * * * If MMS prescribes a different differential, you must apply * * *. You must pay any additional royalties owed * * * plus the late payment interest from the original royalty due date, or you may
report a credit * * *.
20
2
40
206.112(a)(3) and (a)(4) ...............
206.112(a)(3) If you transport or exchange at arm’s
length (or both transport and exchange) at least 20
percent, but not all, of your oil produced from the
lease to a market center, determine the adjustment
between the lease and the market center for the oil
that is not transported or exchanged (or both transported and exchanged) to or through a market center
as follows: * * *.
(4) If you transport or exchange (or both transport and
exchange) less than 20 percent of your crude oil produced from the lease between the lease and a market center, you must propose to MMS an adjustment
between the lease and the market center for the portion of the oil that you do not transport or exchange
(or both transport and exchange) to a market center.
* * * If MMS prescribes a different adjustment * * *.
You must pay any additional royalties owed * * *
plus the late payment interest from the original royalty
due date, or you may report a credit * * *.
80
4
320
206.112(b)(3) ................................
206.112(b)(3) * * * you may propose an alternative differential to MMS. * * * If MMS prescribes a different
differential * * *. You must pay any additional royalties owed * * * plus the late payment interest from
the original royalty due date, or you may report a
credit * * *.
80
4
320
Reporting and recordkeeping requirement
206.110(g)(2) ................................
206.110(g) If your arm’s-length sales contract includes a
provision reducing the contract price by a transportation factor, * * *.
(2) You must obtain MMS approval before claiming a
transportation factor in excess of 50 percent of the
base price of the product.
206.111(g) .....................................
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30 CFR 202, 204, 206, and 210
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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Hour burden
Average number of annual
responses
Annual burden
hours
2
160
30 CFR 202, 204, 206, and 210
Reporting and recordkeeping requirement
206.112(c)(2) .................................
206.112(c)(2) * * * If quality bank adjustments do not
incorporate or provide for adjustments for sulfur content, you may make sulfur adjustments, based on the
quality of the representative crude oil at the market
center, of 5.0 cents per one-tenth percent difference
in sulfur content, unless MMS approves a higher adjustment.
206.114 .........................................
206.114 You or your affiliate must use a separate entry
on Form MMS–2014 to notify MMS of an allowance
based on transportation costs you or your affiliate
incur.
Burden covered under OMB Control Number
1010–0139.
MMS may require you or your affiliate to submit arm’slength transportation contracts, production agreements, operating agreements, and related documents.
* * *
AUDIT PROCESS. See note.
206.115(a) .....................................
206.115(a) You or your affiliate must use a separate
entry on Form MMS–2014 to notify MMS of an allowance based on transportation costs you or your affiliate incur.
Burden covered under OMB Control Number
1010–0139.
206.115(c) .....................................
206.115(c) MMS may require you or your affiliate to
submit all data used to calculate the allowance deduction. * * *
AUDIT PROCESS. See note.
80
Subpart D—Federal Gas
206.152(b)(1)(i) * * * The lessee shall have the burden
of demonstrating that its contract is arm’s-length.
* * * (iii) * * * When MMS determines that the value
may be unreasonable, MMS will notify the lessee and
give the lessee an opportunity to provide written information justifying the lessee’s value.
206.152(b)(2) ................................
206.152(b)(2) * * * The lessee must request a value
determination in accordance with paragraph (g) of this
section for gas sold pursuant to a warranty contract;
* * *
206.152(b)(3) ................................
206.152(b)(3) MMS may require a lessee to certify that
its arm’s-length contract provisions include all of the
consideration to be paid by the buyer, either directly
or indirectly, for the gas.
AUDIT PROCESS. See note.
206.152(e)(1) ................................
206.152(e)(1) Where the value is determined pursuant
to paragraph (c) of this section, the lessee shall retain
all data relevant to the determination of royalty value.
* * *
Burden covered under OMB Control Number
1010–0139.
206.152(e)(2) ................................
206.152(e)(2) Any Federal lessee will make available
upon request to the authorized MMS or State representatives, to the Office of the Inspector General of
the department of the Interior, or other person authorized to receive such information, arm’s-length sales
and volume data for like-quality production sold, purchased or otherwise obtained by the lessee from the
field or area or from nearby fields or areas.
AUDIT PROCESS. See note.
206.152(e)(3) ................................
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206.152(b)(1)(i) and (b)(1)(iii) .......
206.152(e)(3) A lessee shall notify MMS if it has determined value pursuant to paragraph (c)(2) or (c)(3) of
this section. * * *
10
10
100
206.152(g) .....................................
206.152(g) The lessee may request a value determination from MMS. * * * The lessee shall submit all
available data relevant to its proposal. * * *
40
5
200
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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Annual burden
hours
206.153(b)(1)(i) and (b)(1)(iii) .......
206.153(b)(1)(i) * * * The lessee shall have the burden
of demonstrating that its contract is arm’s-length.
* * *
(iii) * * * When MMS determines that the value may be
unreasonable, MMS will notify the lessee and give the
lessee an opportunity to provide written information
justifying the lessee’s value.
206.153(b)(2) ................................
206.153(b)(2) * * * The lessee must request a value
determination in accordance with paragraph (g) of this
section for gas sold pursuant to a warranty contract;
* * *
206.153(b)(3) ................................
206.153(b)(3) MMS may require a lessee to certify that
its arm’s-length contract provisions include all of the
consideration to be paid by the buyer, either directly
or indirectly, for the residue gas or gas plant product.
AUDIT PROCESS. See note.
206.153(e)(1) ................................
206.153(e)(1) Where the value is determined pursuant
to paragraph (c) of this section, the lessee shall retain
all data relevant to the determination of royalty value.
* * *.
Burden covered under OMB Control Number
1010–0139.
206.153(e)(2) ................................
206.153(e)(2) Any Federal lessee will make available
upon request to the authorized MMS or State representatives, to the Office of the Inspector General of
the Department of the Interior, or other persons authorized to receive such information, arm’s-length
sales and volume data for like-quality residue gas and
gas plant products sold, purchased or otherwise obtained by the lessee from the same processing plant
or from nearby processing plants.
AUDIT PROCESS. See note.
206.153(e)(3) ................................
206.153(e)(2) A lessee shall notify MMS if it has determined any value pursuant to paragraph (c)(2) or
(c)(3) of this section. * * *
10
2
20
206.153(g) .....................................
206.153(g) The lessee may request a value determination from MMS. * * * The lessee shall submit all
available data relevant to its proposal. * * *
80
15
1,200
206.154(c)(4) .................................
206.154(c)(4) * * * A lessee may request MMS approval of other methods for determining the quantity
of residue gas and gas plant products allocable to
each lease. * * *
40
1
40
206.156(c)(3) .................................
206.156(c)(3) Upon request of a lessee, MMS may approve a transportation allowance deduction in excess
of the limitation prescribed by paragraphs (c)(1) and
(c)(2) of this section. * * * An application for exception (using Form MMS–4393, Request to Exceed
Regulatory Allowance Limitation) must contain all relevant and supporting documentation necessary for
MMS to make a determination. * * *
40
3
120
206.157(a)(1)(i) .............................
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Reporting and recordkeeping requirement
206.157(a) Arm’s-length transportation contracts. (1)(i)
* * * The lessee shall have the burden of demonstrating that its contract is arm’s-length. * * *
AUDIT PROCESS. See note.
The lessee must claim a transportation allowance by reporting it on a separate line entry on the Form MMS–
2014.
Burden covered under OMB Control Number
1010–0139.
206.157(a)(1)(iii) * * * When MMS determines that the
value of the transportation may be unreasonable,
MMS will notify the lessee and give the lessee an opportunity to provide written information justifying the
lessee’s transportation costs.
AUDIT PROCESS. See note.
206.157(a)(1)(iii) ............................
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AUDIT PROCESS. See note.
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40
1
40
206.157(a)(3) If an arm’s-length transportation contract
includes both gaseous and liquid products and the
transportation costs attributable to each cannot be determined from the contract, the lessee shall propose
an allocation procedure to MMS. * * * The lessee
shall submit all relevant data to support its proposal.
* * *
40
1
40
206.157(a)(5) ................................
206.157(a)(5) * * * The transportation factor may not
exceed 50 percent of the base price of the product
without MMS approval.
10
3
30
206.157(b)(1) ................................
206.157(b) Non-arm’s-length or no contract. (1) The lessee must claim a transportation allowance by reporting it on a separate line entry on the Form MMS–
2014. * * *
206.157(b)(2)(iv) and (b)(2)(iv) (A)
206.157(b)(2)(iv) * * * After a lessee has elected to use
either method for a transportation system, the lessee
may not later elect to change to the other alternative
without approval of the MMS.
(A) * * * After an election is made, the lessee may not
change methods without MMS approval. * * *
100
1
100
206.157(b)(3)(i) .............................
206.157(b)(3)(i) * * * Except as provided in this paragraph, the lessee may not take an allowance for
transporting a product which is not royalty bearing
without MMS approval.
100
1
100
206.157(b)(3)(ii) ............................
206.157(b)(3)(ii) * * * the lessee may propose to the
MMS a cost allocation method on the basis of the values of the products transported. * * *
100
1
100
206.157(b)(4) ................................
206.157(b)(4) Where both gaseous and liquid products
are transported through the same transportation system, the lessee shall propose a cost allocation procedure to MMS. * * * The lessee shall submit all relevant data to support its proposal. * * *
100
1
100
206.157(b)(5) ................................
206.157(b)(5) You may apply for an exception from the
requirement to compute actual costs under paragraphs (b)(1) through (b)(4) of this section.
100
1
100
206.157(c)(1)(i) .............................
206.157(c) Reporting Requirements. (1) Arm’s-length
contracts. (i) You must use a separate entry on Form
MMS–2014 to notify MMS of a transportation allowance.
Burden covered under OMB Control Number
1010–0139.
206.157(c)(1)(ii) .............................
206.157(c)(1)(ii) The MMS may require you to submit
arm’s-length transportation contracts, production
agreements, operating agreements, and related documents. * * *
AUDIT PROCESS. See note.
206.157(c)(2)(i) .............................
206.157(c)(2) Non-arm’s-length or no contract. (i) You
must use a separate entry on Form MMS–2014 to notify MMS of a transportation allowance.
Burden covered under OMB Control Number
1010–0139.
206.157(c)(2)(iii) ............................
206.157(c)(2)(iii) The MMS may require you to submit
all data used to calculate the allowance deduction.
* * *
AUDIT PROCESS. See note.
Reporting and recordkeeping requirement
206.157(a)(2)(ii) ............................
206.157(a)(2)(ii) * * * the lessee may propose to MMS
a cost allocation method on the basis of the values of
the products transported. * * *
206.157(a)(3) ................................
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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Annual burden
hours
206.157(e)(2), (e)(3), and (f)(1) ....
206.157(e) Adjustments. (2) For lessees transporting
production from onshore Federal leases, the lessee
must submit a corrected Form MMS–2014 to reflect
actual costs, together with any payment, in accordance with instructions provided by MMS.
(3) For lessees transporting gas production from leases
on the OCS, if the lessee’s estimated transportation
allowance exceeds the allowance based on actual
costs, the lessee must submit a corrected Form
MMS–2014 to reflect actual costs, together with its
payments, in accordance with instructions provided by
MMS. * * *
(f) Allowable costs in determining transportation allowances. * * * (1) Firm demand charges paid to pipelines. * * * if you receive a payment or credit from
the pipeline for penalty refunds, rate case refunds, or
other reasons, you must reduce the firm demand
charge claimed on the Form MMS–2014 by the
amount of that payment. You must modify Form
MMS–2014 by the amount received or credited for
the affected reporting period and pay any resulting
royalty and late payment interest due;
206.158(c)(3) .................................
206.158(c)(3) Upon request of a lessee, MMS may approve a processing allowance in excess of the limitation prescribed by paragraph (c)(2) of this section.
* * * An application for exception (using Form MMS–
4393, Request to Exceed Regulatory Allowance Limitation) shall contain all relevant and supporting documentation for MMS to make a determination. * * *
80
8
640
206.158(d)(2)(i) .............................
206.158(d)(2)(i) If the lessee incurs extraordinary costs
for processing gas production from a gas production
operation, it may apply to MMS for an allowance for
those costs * * *.
80
1
80
206.158(d)(2)(ii) ............................
206.158(d)(2)(ii) * * * to retain the authority to deduct
the allowance the lessee must report the deduction to
MMS in a form and manner prescribed by MMS.
Burden covered under OMB Control Number
1010–0139.
206.159(a)(1)(i) .............................
206.159(a) Arm’s-length processing contracts. (1)(i)
* * * The lessee shall have the burden of demonstrating that its contract is arm’s-length. * * *
AUDIT PROCESS. See note.
The lessee must claim a processing allowance by reporting it on a separate line entry on the Form MMS–
2014.
Burden covered under OMB Control Number
1010–0139.
206.159(a)(1)(iii) ............................
206.159(a)(1)(iii) * * * When MMS determines that the
value of the processing may be unreasonable, MMS
will notify the lessee and give the lessee an opportunity to provide written information justifying the lessee’s processing costs.
AUDIT PROCESS. See note.
206.159(a)(3) ................................
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Reporting and recordkeeping requirement
206.159(a)(3) If an arm’s-length processing contract includes more than one gas plant product and the processing costs attributable to each product cannot be
determined from the contract, the lessee shall propose an allocation procedure to MMS. * * * The lessee shall submit all relevant data to support its proposal. * * *
206.159(b)(1) ................................
206.159(b) Non-arm’s-length or no contract ....................
(1)* * * The lessee must claim a processing allowance
by reflecting it as a separate line entry on the Form
MMS–2014. * * *
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Average number of annual
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30 CFR 202, 204, 206, and 210
Burden covered under OMB Control Number
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20
1
20
Burden covered under OMB Control Number
1010–0139.
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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Average number of annual
responses
Annual burden
hours
100
1
100
100
1
100
30 CFR 202, 204, 206, and 210
Reporting and recordkeeping requirement
Hour burden
206.159(b)(2)(iv) and (b)(2)(iv) (A)
206.159(b)(2)(iv) * * * When a lessee has elected to
use either method for a processing plant, the lessee
may not later elect to change to the alternative without approval of the MMS.
(A) * * * After an election is made, the lessee may not
change methods without MMS approval * * *.
206.159(b)(4) ................................
206.159(b)(4) A lessee may apply to MMS for an exception from the requirements that it compute actual
costs in accordance with paragraphs (b)(1) through
(b)(3) of this section. * * *
206.159(c)(1)(i) .............................
206.159(c) Reporting requirements—(1) Arm’s-length
contracts. (i) The lessee must notify MMS of an allowance based on incurred costs by using a separate
line entry on the Form MMS–2014.
Burden covered under OMB Control Number
1010–0139.
206.159(c)(1)(ii) .............................
206.159(c)(1)(ii) The MMS may require that a lessee
submit arm’s-length processing contracts and related
documents. * * *
AUDIT PROCESS. See note.
206.159(c)(2)(i) .............................
206.159(c)(2) Non-arm’s-length or no contract. (i) The
lessee must notify MMS of an allowance based on incurred costs by using a separate line entry on the
Form MMS–2014.
Burden covered under OMB Control Number
1010–0139.
206.159(c)(2)(iii) ............................
206.159(c)(2)(iii) Upon request by MMS, the lessee
shall submit all data used to prepare the allowance
deduction. * * *
AUDIT PROCESS. See note.
206.159(e)(2) and (e)(3) ...............
206.159(e) Adjustments ...................................................
(2) For lessees processing production from onshore
Federal leases, the lessee must submit a corrected
Form MMS–2014 to reflect actual costs, together with
any payment, in accordance with instructions provided by MMS.
(3) For lessees processing gas production from leases
on the OCS, if the lessee’s estimated processing allowance exceeds the allowance based on actual
costs, the lessee must submit a corrected Form
MMS–2014 to reflect actual costs, together with its
payment, in accordance with instructions provided by
MMS * * *.
Burden covered under OMB Control Number
1010–0139.
Oil and Gas Valuation Subtotal ....................................................................................................................
117
8,672
1.2
150
180
Total ..................................................................................................................................................................
277
9,378
PART 210—FORMS AND REPORTS
Subpart D—Special-Purpose Forms and Reports—Oil, Gas, and Geothermal
210.155(a) .....................................
210.155(a) General. Operators who have been granted
a reduced royalty rate by the Bureau of Land Management (BLM) * * * must submit Form MMS–4377,
Stripper Royalty Rate Reduction Notification, under
43 CFR * * *.
NOTE: BLM terminated the benefits of this program and
is processing a final rule to remove this program from
the regulations.
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 ‘‘nonHour cost’’ burden associated with the
collection of information.
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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
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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
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* * * 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
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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
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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
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]]>Agencies
[Federal Register Volume 75, Number 69 (Monday, April 12, 2010)]
[Notices]
[Pages 18525-18536]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-8198]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE INTERIOR
Minerals Management Service
[Docket No. MMS-2008-MRM-0031]
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 1010-0136).
-----------------------------------------------------------------------
SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), we
are inviting comments on a collection of information that we will
submit to the Office of Management and Budget (OMB) for review and
approval. We consolidated this information collection request (ICR) and
ICR 1010-0090, Stripper Royalty Rate Reduction Notification, in order
to allow program-wide review of Federal oil and gas valuation. The new
title of this ICR is ``30 CFR parts 202, 204, 206, and 210, Federal Oil
and Gas Valuation.''
DATES: Submit written comments on or before June 11, 2010.
ADDRESSES: You may submit comments on this ICR by any of the following
methods. Please use ``ICR 1010-0136'' as an identifier in your comment.
Electronically go to https://www.regulations.gov. In the
entry titled ``Enter Keyword or ID,'' enter MMS-2008-MRM-0031, and then
click search. Follow the instructions to submit public comments. The
MMS will post all comments.
Mail comments to Hyla Hurst, Regulatory Specialist,
Minerals Management Service, Minerals Revenue Management, P.O. Box
25165, MS 61013B, Denver, Colorado 80225. Please reference ICR 1010-
0136 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 1010-0136 in your comments.
FOR FURTHER INFORMATION CONTACT: Hyla Hurst, telephone (303) 231-3495,
or e-mail hyla.hurst@mms.gov. You may also contact Hyla Hurst to obtain
copies, at no cost, of (1) the ICR, (2) any associated forms, and (3)
the regulations that require the subject collection of information.
SUPPLEMENTARY INFORMATION:
Title: 30 CFR parts 202, 204, 206, and 210, Federal Oil and Gas
Valuation.
OMB Control Number: 1010-0136.
Bureau Form Number: Forms MMS-4377 and MMS-4393.
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). The Secretary is required
by various laws to manage mineral resource production from Federal and
Indian lands and the OCS, collect the royalties and other mineral
revenues due, and distribute the funds collected in accordance with
applicable laws. Public laws pertaining to mineral leases on Federal
and Indian lands are posted on our Web site at https://www.mrm.mms.gov/Laws_R_D/PublicLawsAMR.htm.
General Information
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 in an
amount or value of production from the leased lands. The lessee is
required to report various kinds of information to the lessor relative
to the disposition of the leased minerals. Such information is
generally available
[[Page 18526]]
within the records of the lessee or others involved in developing,
transporting, processing, purchasing, or selling of such minerals.
We use the information collected in this ICR to ensure that royalty
is accurately valued and appropriately paid on oil and gas produced
from Federal onshore and offshore leases. Please refer to the
Respondents' Estimated Annual Burden Hours table for all reporting
requirements and associated burden hours. All data submitted is subject
to subsequent audit and adjustment.
Federal Oil and Gas Valuation Regulations
The valuation regulations at 30 CFR part 206, subparts C and D,
mandate that companies collect and/or submit information used to value
their Federal oil and gas, including (1) transportation and processing
allowances; and (2) regulatory allowance limitation information.
Companies report certain data on Form MMS-2014, Report of Sales and
Royalty Remittance (OMB Control Number 1010-0139). The information
requested is the minimum necessary to carry out our mission and places
the least possible burden on respondents. If MMS does not collect this
information, both Federal and State governments may incur a loss of
royalties.
Transportation and Processing Regulatory Allowance Limits
Lessees may deduct the reasonable, actual costs of transportation
and processing from Federal royalties. Lessees who request approval to
exceed the regulatory allowance limits are required to provide
information in order to obtain these benefits.
Request To Exceed Regulatory Allowance Limitation, Form MMS-4393
Lessees may request to exceed regulatory limitations. Upon proper
application from the lessee, we may approve an oil or gas
transportation allowance in excess of 50 percent or a gas processing
allowance in excess of 66\2/3\ percent on Federal leases. Form MMS-4393
is used for both Federal and Indian leases to request to exceed
allowance limitations. This ICR includes only Federal leases; therefore
burden hours for Form MMS-4393 for Indian leases are not included in
this ICR. Burden hours for Form MMS-4393 for Indian leases are included
in OMB Control Number 1010-0103.
Accounting and Auditing Relief for Marginal Properties
In 2004, we amended our regulations to comply with section 7 of the
Federal Oil and Gas Royalty Simplification and Fairness Act of 1996.
The regulations provide guidance for lessees and designees seeking
accounting and auditing relief for qualifying Federal marginal
properties. Under the regulations, both MMS and the state concerned
must approve any relief granted for a marginal property.
Stripper Oil Royalty Rate Reduction Program
Under 43 CFR 3103.4-2, the Stripper Oil Royalty Rate Reduction
Program (Stripper Oil Program) was established by the Bureau of Land
Management (BLM), the surface management agency for Federal onshore
leases. As a benefit under this program, MMS, who administered the
Stripper Oil Program for BLM, approved royalty rate reductions for
operators of stripper oil properties for applicable sales periods from
October 1, 1992, through January 31, 2006. Effective February 1, 2006,
the benefits of reduced royalty rates under this program were
terminated. This change is not currently reflected in the CFR; however,
BLM is processing a final rule to remove this citation from the
regulations.
For production through January 31, 2006, reporters used Form MMS-
4377, Stripper Royalty Rate Reduction Notification, to notify MMS of
royalty rate changes. Although the benefits were terminated, MMS
continues to verify previously submitted notifications and may require
the operator to submit an amended Form MMS-4377.
OMB Approval
We are requesting 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 royalty payments. Proprietary information submitted to MMS
under this collection is protected, and no items of a sensitive nature
are included in this information collection.
For information collections relating to valuation requirements,
responses are mandatory. For the remaining information collections in
this ICR, responses are required to obtain benefits.
Frequency: Annually and on occasion.
Estimated Number and Description of Respondents: 120 Federal
lessees/designees and 7 states for Federal oil and gas valuation; and
150 lessees/lessors for the Stripper Oil Program.
Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 9,378
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 number
30 CFR 202, 204, 206, and 210 Reporting and recordkeeping Hour burden of annual Annual burden
requirement responses hours
----------------------------------------------------------------------------------------------------------------
PART 202--ROYALTIES
Subpart C--Federal and Indian Oil
----------------------------------------------------------------------------------------------------------------
202.101............................ 202.101 Oil volumes are to Burden covered under OMB Control Number 1010-
be reported in barrels of 0139.
clean oil of 42 standard
U.S. gallons (231 cubic
inches each) at 60 [deg]F.
* * *
----------------------------------------------------------------------------------------------------------------
[[Page 18527]]
Subpart D--Federal Gas
----------------------------------------------------------------------------------------------------------------
202.152(a) and (b)................. 202.152(a)(1) If you are Burden covered under OMB Control Number 1010-
responsible for reporting 0139.
production or royalties
you must:
(i) Report gas volumes and
British thermal unit (Btu)
heating values, if
applicable, under the same
degree of water
saturation;.
(ii) Report gas volumes in
units of 1,000 cubic feet
(mcf); and.
(iii) Report gas volumes
and Btu heating value at a
standard pressure base of
14.73 pounds per square
inch absolute (psia) and a
standard temperature base
of 60 [deg]F. * * *.
(b) Residue gas and gas
plant product volumes
shall be reported as
specified in this
paragraph. * * *.
----------------------------------------------------------------------------------------------------------------
PART 204--ALTERNATIVES FOR MARGINAL PROPERTIES
Subpart C--Accounting and Auditing Relief
----------------------------------------------------------------------------------------------------------------
204.202(b)(1)...................... 204.202(b) To use the 40 1 40
cumulative royalty reports
and payments relief
option, you must do all of
the following:
(1) Notify MMS in writing
by January 31 of the
calendar year for which
you begin taking your
relief. * * *.
----------------------------------------------------------------------------------------------------------------
204.202(b)(2) and (b)(3)........... 204.202(b)(2) Submit your Burden covered under OMB Control Number 1010-
royalty report and payment 0139.
* * * by the end of
February of the year
following the calendar
year for which you
reported annually. * * *
If you have an estimated
payment on file, you must
submit your royalty report
and payment by the end of
March of the year
following the calendar
year for which you
reported annually;
(3) Use the sales month
prior to the month that
you submit your annual
report and payment * * *
for the entire previous
calendar year's production
for which you are paying
annually. * * *.
----------------------------------------------------------------------------------------------------------------
204.202(b)(4), (b)(5), (c), (d)(1), 204.202(b) To use the Burden covered under OMB Control Number 1010-
(d)(2), (e)(1), and (e)(2). cumulative royalty reports 0139.
and payments relief
option, you must * * *
(4) Report one line of
cumulative royalty
information on Form MMS-
2014 for the calendar year
* * * and.
(5) Report allowances on
Form MMS-2014 on the same
annual basis as the
royalties for your
marginal property
production..
(c) If you do not pay your
royalty by the date due in
paragraph (b) of this
section, you will owe late
payment interest * * *
from the date your payment
was due under this section
until the date MMS
receives it. * * *.
(d) If you take relief you
are not qualified for, you
may be liable for civil
penalties. Also you must:
(1) Pay MMS late payment
interest determined under
30 CFR 218.54 * * *.
(2) Amend your Form MMS-
2014 * * *.
(e) If you dispose of your
ownership interest in a
marginal property for
which you have taken
relief * * * you must:.
(1) Report and pay
royalties for the portion
of the calendar year for
which you had an ownership
interest; and.
(2) Make the report and
payment by the end of the
month after you dispose of
the ownership interest in
the marginal property. If
you do not report and pay
timely, you will owe
interest * * * from the
date the payment was due.
* * *.
----------------------------------------------------------------------------------------------------------------
204.203(b), 204.205(a) and (b), and 204.203(b) You must request 200 1 200
204.206(a)(3)(i) and (b)(1). approval from MMS * * *
before taking relief under
this option.
----------------------------------------------------------------------------------------------------------------
[[Page 18528]]
204.209(b)......................... 204.209(b) If a property is 6 1 6
no longer eligible for
relief * * * the relief
for the property
terminates as of December
31 of that calendar year.
You must notify MMS in
writing by December 31
that the relief for the
property has terminated *
* *.
----------------------------------------------------------------------------------------------------------------
204.210(c) and (d)................. 204.210(c) * * * the Burden covered under OMB Control Number 1010-
volumes on which you 0139.
report and pay royalty * *
* must be amended to
reflect all volumes
produced on or allocated
to your lease under the
nonqualifying agreement as
modified by BLM. * * *
Report and pay royalties
for your production using
the procedures in Sec.
204.202(b).
(d) If you owe additional
royalties based on the
retroactive agreement
approval and do not pay
your royalty by the date
due in Sec. 204.202(b),
you will owe late payment
interest determined under
30 CFR 218.54 from the
date your payment was due
under Sec. 204.202(b)(2)
until the date MMS
receives it..
----------------------------------------------------------------------------------------------------------------
204.214(b)(1) and (b)(2)........... 204.214(b) If you pay Burden covered under OMB Control Number 1010-
minimum royalty on 0139.
production from a marginal
property during a calendar
year for which you are
taking cumulative royalty
reports and payment
relief, and:
(1) The annual payment you
owe under this subpart is
greater than the minimum
royalty you paid, you must
pay the difference between
the minimum royalty you
paid and your annual
payment due under this
subpart; or.
(2) The annual payment you
owe under this subpart is
less than the minimum
royalty you paid, you are
not entitled to a credit
because you must pay at
least the minimum royalty
amount on your lease each
year..
----------------------------------------------------------------------------------------------------------------
Accounting and Auditing Relief Subtotal..................................... 10 526
----------------------------------------------------------------------------------------------------------------
PART 206--PRODUCT VALUATION
Subpart C--Federal Oil
----------------------------------------------------------------------------------------------------------------
206.102(e)(1)...................... 206.102(e) If you value oil AUDIT PROCESS. See note.
under paragraph (a) of
this section: (1) MMS may
require you to certify
that your or your
affiliate's arm's-length
contract provisions
include all of the
consideration the buyer
must pay, either directly
or indirectly, for the oil.
----------------------------------------------------------------------------------------------------------------
206.103(a)(1), (a)(2), and (a)(3).. 206.103 This section 45 5 225
explains how to value oil
that you may not value
under Sec. 206.102 or
that you elect under Sec.
206.102(d) to value under
this section. First
determine whether
paragraph (a), (b), or (c)
of this section applies to
production from your
lease, or whether you may
apply paragraph (d) or (e)
with MMS approval. (a)
Production from leases in
California or Alaska.
Value is the average of
the daily mean ANS spot
prices published in any
MMS-approved publication
during the trading month
most concurrent with the
production month. * * *.
(1) To calculate the daily
mean spot price * * *
(2) Use only the days * * *
(3) You must adjust the
value * * *
----------------------------------------------------------------------------------------------------------------
206.103(a)(4)...................... 206.103(a)(4) After you 8 2 16
select an MMS-approved
publication, you may not
select a different
publication more often
than once every 2 years, *
* *.
----------------------------------------------------------------------------------------------------------------
206.103(b)(1)...................... 206.103(b) Production from 400 2 800
leases in the Rocky
Mountain Region. * * * (1)
If you have an MMS-
approved tendering
program, you must value
oil * * *.
----------------------------------------------------------------------------------------------------------------
[[Page 18529]]
206.103(b)(1)(ii).................. 206.103(b)(1)(ii) If you do 400 2 800
not have an MMS-approved
tendering program, you may
elect to value your oil
under either paragraph
(b)(2) or (b)(3) of this
section. * * *.
----------------------------------------------------------------------------------------------------------------
206.103(b)(4)...................... 206.103(b)(4) If you 400 2 800
demonstrate to MMS's
satisfaction that
paragraphs (b)(1) through
(b)(3) of this section
result in an unreasonable
value for your production
as a result of
circumstances regarding
that production, the MMS
Director may establish an
alternative valuation
method.
----------------------------------------------------------------------------------------------------------------
206.103(c)(1)...................... 206.103(c) Production from 50 10 500
leases not located in
California, Alaska or the
Rocky Mountain Region. (1)
Value is the NYMEX price,
plus the roll, adjusted
for applicable location
and quality differentials
and transportation costs
under Sec. 206.112.
----------------------------------------------------------------------------------------------------------------
206.103(e)(1) and (e)(2)........... 206.103(e) Production 330 2 660
delivered to your refinery
and the NYMEX price or ANS
spot price is an
unreasonable value.
(1) * * * you may apply to
the MMS Director to
establish a value
representing the market at
the refinery if: * * *
(2) You must provide
adequate documentation and
evidence demonstrating the
market value at the
refinery. * * *
----------------------------------------------------------------------------------------------------------------
206.105............................ 206.105 If you determine Burden covered under OMB Control Number 1010-
the value of your oil 0139.
under this subpart, you
must retain all data
relevant to the
determination of royalty
value. * * *.
----------------------------------------------------------------------------------------------------------------
206.107(a)......................... 206.107(a) You may request 40 10 400
a value determination from
MMS * * *.
----------------------------------------------------------------------------------------------------------------
206.109(c)(2)...................... 206.109(c) Limits on 8 2 16
transportation allowances.
(2) You may ask MMS to
approve a transportation
allowance in excess of the
limitation in paragraph
(c)(1) of this section. *
* *.
Your application for
exception (using Form MMS-
4393, Request to Exceed
Regulatory Allowance
Limitation) must contain
all relevant and
supporting documentation
necessary for MMS to make
a determination * * *..
----------------------------------------------------------------------------------------------------------------
206.110(a)......................... 206.110(a) * * * You must AUDIT PROCESS. See note.
be able to demonstrate
that your or your
affiliate's contract is at
arm's length. * * *.
----------------------------------------------------------------------------------------------------------------
206.110(d)(3)...................... 206.110(d) If your arm's- 20 2 40
length transportation
contract includes more
than one liquid product,
and the transportation
costs attributable to each
product cannot be
determined * * *.
(3) You may propose to MMS
a cost allocation method *
* *.
----------------------------------------------------------------------------------------------------------------
206.110(e)......................... 206.110(e) If your arm's- 20 1 20
length transportation
contract includes both
gaseous and liquid
products, and the
transportation costs
attributable to each
product cannot be
determined from the
contract, then you must
propose an allocation
procedure to MMS.
----------------------------------------------------------------------------------------------------------------
206.110(e)(1) and (e)(2)........... 206.110(e)(1) * * * If MMS Burden covered under OMB Control Number 1010-
rejects your cost 0139.
allocation, you must amend
your Form MMS-2014 * * *.
(2) You must submit your
initial proposal,
including all available
data, within 3 months
after first claiming the
allocated deductions on
Form MMS-2014..
----------------------------------------------------------------------------------------------------------------
[[Page 18530]]
206.110(g)(2)...................... 206.110(g) If your arm's- 5 1 5
length sales contract
includes a provision
reducing the contract
price by a transportation
factor, * * *.
(2) You must obtain MMS
approval before claiming a
transportation factor in
excess of 50 percent of
the base price of the
product..
----------------------------------------------------------------------------------------------------------------
206.111(g)......................... 206.111(g) To compute 30 1 30
depreciation, you may
elect to use either * * *.
After you make an
election, you may not
change methods without MMS
approval. * * *.
----------------------------------------------------------------------------------------------------------------
206.111(k)(2)...................... 206.111(k)(2) You may 30 1 30
propose to MMS a cost
allocation method on the
basis of the values * * *.
----------------------------------------------------------------------------------------------------------------
206.111(l)(1) and (l)(3)........... 206.111(l)(1) Where you 20 1 20
transport both gaseous and
liquid products through
the same transportation
system, you must propose a
cost allocation procedure
to MMS. * * *.
(3) You must submit your
initial proposal,
including all available
data, within 3 months
after first claiming the
allocated deductions on
Form MMS-2014..
----------------------------------------------------------------------------------------------------------------
206.111(l)(2)...................... 206.111(l)(2) * * * If MMS Burden covered under OMB Control Number 1010-
rejects your cost 0139.
allocation, you must amend
your Form MMS-2104 for the
months that you used the
rejected method and pay
any additional royalty and
interest due.
----------------------------------------------------------------------------------------------------------------
206.112(a)(1)(ii).................. 206.112(a)(1)(ii) * * * 80 1 80
under an exchange
agreement that is not at
arm's length, you must
obtain approval from MMS
for a location and quality
differential * * *
----------------------------------------------------------------------------------------------------------------
206.112(a)(1)(ii).................. 206.112(a)(1)(ii) * * * If 20 2 40
MMS prescribes a different
differential, you must
apply * * *. You must pay
any additional royalties
owed * * * plus the late
payment interest from the
original royalty due date,
or you may report a credit
* * *.
----------------------------------------------------------------------------------------------------------------
206.112(a)(3) and (a)(4)........... 206.112(a)(3) If you 80 4 320
transport or exchange at
arm's length (or both
transport and exchange) at
least 20 percent, but not
all, of your oil produced
from the lease to a market
center, determine the
adjustment between the
lease and the market
center for the oil that is
not transported or
exchanged (or both
transported and exchanged)
to or through a market
center as follows: * * *.
(4) If you transport or
exchange (or both
transport and exchange)
less than 20 percent of
your crude oil produced
from the lease between the
lease and a market center,
you must propose to MMS an
adjustment between the
lease and the market
center for the portion of
the oil that you do not
transport or exchange (or
both transport and
exchange) to a market
center. * * * If MMS
prescribes a different
adjustment * * *. You must
pay any additional
royalties owed * * * plus
the late payment interest
from the original royalty
due date, or you may
report a credit * * *.
----------------------------------------------------------------------------------------------------------------
206.112(b)(3)...................... 206.112(b)(3) * * * you may 80 4 320
propose an alternative
differential to MMS. * * *
If MMS prescribes a
different differential * *
*. You must pay any
additional royalties owed
* * * plus the late
payment interest from the
original royalty due date,
or you may report a credit
* * *.
----------------------------------------------------------------------------------------------------------------
[[Page 18531]]
206.112(c)(2)...................... 206.112(c)(2) * * * If 80 2 160
quality bank adjustments
do not incorporate or
provide for adjustments
for sulfur content, you
may make sulfur
adjustments, based on the
quality of the
representative crude oil
at the market center, of
5.0 cents per one-tenth
percent difference in
sulfur content, unless MMS
approves a higher
adjustment.
----------------------------------------------------------------------------------------------------------------
206.114............................ 206.114 You or your Burden covered under OMB Control Number 1010-
affiliate must use a 0139.
separate entry on Form MMS-
2014 to notify MMS of an
allowance based on
transportation costs you
or your affiliate incur.
-----------------------------------------------
MMS may require you or your AUDIT PROCESS. See note.
affiliate to submit arm's-
length transportation
contracts, production
agreements, operating
agreements, and related
documents. * * *
----------------------------------------------------------------------------------------------------------------
206.115(a)......................... 206.115(a) You or your Burden covered under OMB Control Number 1010-
affiliate must use a 0139.
separate entry on Form MMS-
2014 to notify MMS of an
allowance based on
transportation costs you
or your affiliate incur.
----------------------------------------------------------------------------------------------------------------
206.115(c)......................... 206.115(c) MMS may require AUDIT PROCESS. See note.
you or your affiliate to
submit all data used to
calculate the allowance
deduction. * * *
----------------------------------------------------------------------------------------------------------------
Subpart D--Federal Gas
----------------------------------------------------------------------------------------------------------------
206.152(b)(1)(i) and (b)(1)(iii)... 206.152(b)(1)(i) * * * The AUDIT PROCESS. See note.
lessee shall have the
burden of demonstrating
that its contract is arm's-
length. * * * (iii) * * *
When MMS determines that
the value may be
unreasonable, MMS will
notify the lessee and give
the lessee an opportunity
to provide written
information justifying the
lessee's value.
----------------------------------------------------------------------------------------------------------------
206.152(b)(2)...................... 206.152(b)(2) * * * The 80 1 80
lessee must request a
value determination in
accordance with paragraph
(g) of this section for
gas sold pursuant to a
warranty contract; * * *
----------------------------------------------------------------------------------------------------------------
206.152(b)(3)...................... 206.152(b)(3) MMS may AUDIT PROCESS. See note.
require a lessee to
certify that its arm's-
length contract provisions
include all of the
consideration to be paid
by the buyer, either
directly or indirectly,
for the gas.
----------------------------------------------------------------------------------------------------------------
206.152(e)(1)...................... 206.152(e)(1) Where the Burden covered under OMB Control Number 1010-
value is determined 0139.
pursuant to paragraph (c)
of this section, the
lessee shall retain all
data relevant to the
determination of royalty
value. * * *
----------------------------------------------------------------------------------------------------------------
206.152(e)(2)...................... 206.152(e)(2) Any Federal AUDIT PROCESS. See note.
lessee will make available
upon request to the
authorized MMS or State
representatives, to the
Office of the Inspector
General of the department
of the Interior, or other
person authorized to
receive such information,
arm's-length sales and
volume data for like-
quality production sold,
purchased or otherwise
obtained by the lessee
from the field or area or
from nearby fields or
areas.
----------------------------------------------------------------------------------------------------------------
206.152(e)(3)...................... 206.152(e)(3) A lessee 10 10 100
shall notify MMS if it has
determined value pursuant
to paragraph (c)(2) or
(c)(3) of this section. *
* *
----------------------------------------------------------------------------------------------------------------
206.152(g)......................... 206.152(g) The lessee may 40 5 200
request a value
determination from MMS. *
* * The lessee shall
submit all available data
relevant to its proposal.
* * *
----------------------------------------------------------------------------------------------------------------
[[Page 18532]]
206.153(b)(1)(i) and (b)(1)(iii)... 206.153(b)(1)(i) * * * The AUDIT PROCESS. See note.
lessee shall have the
burden of demonstrating
that its contract is arm's-
length. * * *
(iii) * * * When MMS
determines that the value
may be unreasonable, MMS
will notify the lessee and
give the lessee an
opportunity to provide
written information
justifying the lessee's
value..
----------------------------------------------------------------------------------------------------------------
206.153(b)(2)...................... 206.153(b)(2) * * * The 80 1 80
lessee must request a
value determination in
accordance with paragraph
(g) of this section for
gas sold pursuant to a
warranty contract; * * *
----------------------------------------------------------------------------------------------------------------
206.153(b)(3)...................... 206.153(b)(3) MMS may AUDIT PROCESS. See note.
require a lessee to
certify that its arm's-
length contract provisions
include all of the
consideration to be paid
by the buyer, either
directly or indirectly,
for the residue gas or gas
plant product.
----------------------------------------------------------------------------------------------------------------
206.153(e)(1)...................... 206.153(e)(1) Where the Burden covered under OMB Control Number 1010-
value is determined 0139.
pursuant to paragraph (c)
of this section, the
lessee shall retain all
data relevant to the
determination of royalty
value. * * *.
----------------------------------------------------------------------------------------------------------------
206.153(e)(2)...................... 206.153(e)(2) Any Federal AUDIT PROCESS. See note.
lessee will make available
upon request to the
authorized MMS or State
representatives, to the
Office of the Inspector
General of the Department
of the Interior, or other
persons authorized to
receive such information,
arm's-length sales and
volume data for like-
quality residue gas and
gas plant products sold,
purchased or otherwise
obtained by the lessee
from the same processing
plant or from nearby
processing plants.
----------------------------------------------------------------------------------------------------------------
206.153(e)(3)...................... 206.153(e)(2) A lessee 10 2 20
shall notify MMS if it has
determined any value
pursuant to paragraph
(c)(2) or (c)(3) of this
section. * * *
----------------------------------------------------------------------------------------------------------------
206.153(g)......................... 206.153(g) The lessee may 80 15 1,200
request a value
determination from MMS. *
* * The lessee shall
submit all available data
relevant to its proposal.
* * *
----------------------------------------------------------------------------------------------------------------
206.154(c)(4)...................... 206.154(c)(4) * * * A 40 1 40
lessee may request MMS
approval of other methods
for determining the
quantity of residue gas
and gas plant products
allocable to each lease. *
* *
----------------------------------------------------------------------------------------------------------------
206.156(c)(3)...................... 206.156(c)(3) Upon request 40 3 120
of a lessee, MMS may
approve a transportation
allowance deduction in
excess of the limitation
prescribed by paragraphs
(c)(1) and (c)(2) of this
section. * * * An
application for exception
(using Form MMS-4393,
Request to Exceed
Regulatory Allowance
Limitation) must contain
all relevant and
supporting documentation
necessary for MMS to make
a determination. * * *
----------------------------------------------------------------------------------------------------------------
206.157(a)(1)(i)................... 206.157(a) Arm's-length AUDIT PROCESS. See note.
transportation contracts.
(1)(i) * * * The lessee
shall have the burden of
demonstrating that its
contract is arm's-length.
* * *
-----------------------------------------------
The lessee must claim a Burden covered under OMB Control Number 1010-
transportation allowance 0139.
by reporting it on a
separate line entry on the
Form MMS-2014.
----------------------------------------------------------------------------------------------------------------
206.157(a)(1)(iii)................. 206.157(a)(1)(iii) * * * AUDIT PROCESS. See note.
When MMS determines that
the value of the
transportation may be
unreasonable, MMS will
notify the lessee and give
the lessee an opportunity
to provide written
information justifying the
lessee's transportation
costs.
----------------------------------------------------------------------------------------------------------------
[[Page 18533]]
206.157(a)(2)(ii).................. 206.157(a)(2)(ii) * * * the 40 1 40
lessee may propose to MMS
a cost allocation method
on the basis of the values
of the products
transported. * * *
----------------------------------------------------------------------------------------------------------------
206.157(a)(3)...................... 206.157(a)(3) If an arm's- 40 1 40
length transportation
contract includes both
gaseous and liquid
products and the
transportation costs
attributable to each
cannot be determined from
the contract, the lessee
shall propose an
allocation procedure to
MMS. * * * The lessee
shall submit all relevant
data to support its
proposal. * * *
----------------------------------------------------------------------------------------------------------------
206.157(a)(5)...................... 206.157(a)(5) * * * The 10 3 30
transportation factor may
not exceed 50 percent of
the base price of the
product without MMS
approval.
----------------------------------------------------------------------------------------------------------------
206.157(b)(1)...................... 206.157(b) Non-arm's-length Burden covered under OMB Control Number 1010-
or no contract. (1) The 0139.
lessee must claim a
transportation allowance
by reporting it on a
separate line entry on the
Form MMS-2014. * * *
----------------------------------------------------------------------------------------------------------------
206.157(b)(2)(iv) and (b)(2)(iv) 206.157(b)(2)(iv) * * * 100 1 100
(A). After a lessee has elected
to use either method for a
transportati
