Agency Information Collection Activities: Proposed Collection, Comment Request, 18525-18536 [2010-8198]

Download as PDF sroberts on DSKD5P82C1PROD with NOTICES 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: http:// 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 http:// 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 http://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 VerDate Nov<24>2008 17:58 Apr 09, 2010 Jkt 220001 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. PO 00000 Frm 00057 Fmt 4703 Sfmt 4703 18525 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 http:// 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 http:// 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 E:\FR\FM\12APN1.SGM 12APN1 18526 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 sroberts on DSKD5P82C1PROD with NOTICES 202.101 ......................................... VerDate Nov<24>2008 17:58 Apr 09, 2010 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. * * * Jkt 220001 PO 00000 Frm 00058 Fmt 4703 Sfmt 4703 Burden covered under OMB Control Number 1010–0139. E:\FR\FM\12APN1.SGM 12APN1 18527 Federal Register / Vol. 75, No. 69 / Monday, April 12, 2010 / Notices 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). sroberts on DSKD5P82C1PROD with NOTICES 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. VerDate Nov<24>2008 20:44 Apr 09, 2010 Jkt 220001 PO 00000 Frm 00059 Fmt 4703 Sfmt 4703 40 E:\FR\FM\12APN1.SGM 200 12APN1 1 1 40 200 18528 Federal Register / Vol. 75, No. 69 / Monday, April 12, 2010 / Notices 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) ................................ sroberts on DSKD5P82C1PROD with NOTICES 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 VerDate Nov<24>2008 17:58 Apr 09, 2010 Jkt 220001 PO 00000 Frm 00060 Fmt 4703 Sfmt 4703 E:\FR\FM\12APN1.SGM AUDIT PROCESS. See note. 12APN1 18529 Federal Register / Vol. 75, No. 69 / Monday, April 12, 2010 / Notices 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) ................................ sroberts on DSKD5P82C1PROD with NOTICES 30 CFR 202, 204, 206, and 210 VerDate Nov<24>2008 17:58 Apr 09, 2010 Jkt 220001 PO 00000 Frm 00061 Fmt 4703 Sfmt 4703 Hour burden Burden covered under OMB Control Number 1010–0139. AUDIT PROCESS. See note. Burden covered under OMB Control Number 1010–0139. E:\FR\FM\12APN1.SGM 12APN1 18530 Federal Register / Vol. 75, No. 69 / Monday, April 12, 2010 / Notices 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) ..................................... sroberts on DSKD5P82C1PROD with NOTICES 30 CFR 202, 204, 206, and 210 VerDate Nov<24>2008 17:58 Apr 09, 2010 Jkt 220001 PO 00000 Frm 00062 Fmt 4703 Sfmt 4703 Hour burden Burden covered under OMB Control Number 1010–0139. E:\FR\FM\12APN1.SGM 12APN1 18531 Federal Register / Vol. 75, No. 69 / Monday, April 12, 2010 / Notices 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) ................................ sroberts on DSKD5P82C1PROD with NOTICES 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 VerDate Nov<24>2008 17:58 Apr 09, 2010 Jkt 220001 PO 00000 Frm 00063 Fmt 4703 Sfmt 4703 AUDIT PROCESS. See note. 80 E:\FR\FM\12APN1.SGM 12APN1 1 80 18532 Federal Register / Vol. 75, No. 69 / Monday, April 12, 2010 / Notices 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) ............................. sroberts on DSKD5P82C1PROD with NOTICES 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) ............................ VerDate Nov<24>2008 17:58 Apr 09, 2010 Jkt 220001 PO 00000 Frm 00064 Fmt 4703 Sfmt 4703 Hour burden Average number of annual responses 30 CFR 202, 204, 206, and 210 AUDIT PROCESS. See note. 80 E:\FR\FM\12APN1.SGM 12APN1 1 80 18533 Federal Register / Vol. 75, No. 69 / Monday, April 12, 2010 / Notices RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued Average number of annual responses Annual burden hours 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) ................................ sroberts on DSKD5P82C1PROD with NOTICES 30 CFR 202, 204, 206, and 210 VerDate Nov<24>2008 17:58 Apr 09, 2010 Jkt 220001 PO 00000 Frm 00065 Fmt 4703 Sfmt 4703 Hour burden Burden covered under OMB Control Number 1010–0139. E:\FR\FM\12APN1.SGM 12APN1 18534 Federal Register / Vol. 75, No. 69 / Monday, April 12, 2010 / Notices 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) ................................ sroberts on DSKD5P82C1PROD with NOTICES 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. * * * VerDate Nov<24>2008 17:58 Apr 09, 2010 Jkt 220001 PO 00000 Frm 00066 Fmt 4703 Sfmt 4703 Hour burden Average number of annual responses 30 CFR 202, 204, 206, and 210 Burden covered under OMB Control Number 1010–0139. 20 1 20 Burden covered under OMB Control Number 1010–0139. E:\FR\FM\12APN1.SGM 12APN1 18535 Federal Register / Vol. 75, No. 69 / Monday, April 12, 2010 / Notices 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. 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 00067 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 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 http://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 http:// 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 http:// 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 http://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

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 http://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 http://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