Agency Information Collection Activities: Proposed Collection, Comment Request, 76746-76757 [2011-31496]
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Federal Register / Vol. 76, No. 236 / Thursday, December 8, 2011 / Notices
developing and prioritizing the
management goals and objectives for
each refuge within the NWRS mission,
and to determine how the public can
use each refuge. The planning process is
a way for us and the public to evaluate
management goals and objectives that
will ensure the best possible approach
to wildlife, plant, and habitat
conservation, while providing for
wildlife-dependent recreation
opportunities that are compatible with
each refuge’s establishing purposes and
the mission of the NWRS.
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Refuge Overview
DeSoto National Wildlife Refuge,
established in 1958, encompasses 8,358
acres of floodplain habitat on a former
oxbow of the Missouri River. The
Refuge conserves prairie, wetland, open
water, and riparian forest habitats
important to migratory waterfowl and
other wildlife. Twenty-five miles north
of Omaha, Nebraska, DeSoto also
provides recreational use for up to
250,000 visitors annually. The Refuge is
renowned for housing the Steamboat
Bertrand artifact collection, the largest
assemblage of Civil War era artifacts in
the United States.
Public Involvement
Our CCP process provides
participation opportunities for Tribal,
State, and local governments; agencies;
organizations; and the public. We
encourage input in the form of issues,
concerns, ideas, and suggestions for the
future management of the Desoto NWR.
We also invite comments on
archeological, historic, and traditional
cultural sites in accordance with the
National Historic Preservation Act of
1966 (16 U.S.C. 470 et seq.).
We invite anyone interested to
respond to the following two questions:
1. What issues do you want to see
addressed in the CCP?
2. What improvements would you
recommend for the Refuge?
Responding to these two questions is
optional; you are not required to
provide information to us. Our planning
team developed the questions to gather
information about individual issues and
ideas concerning the Refuge. Comments
we receive will be used as part of the
planning process; however, we will not
reference individual comments in our
reports or directly respond to them.
We will also give the public an
opportunity to provide input at open
houses. You can obtain a schedule of
the open house events by contacting the
Refuge Manager listed in the ADDRESSES
section of this notice.
The environmental review of this
project will be conducted in accordance
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with the requirements of the National
Environmental Policy Act of 1969, as
amended (42 U.S.C. 4321 et seq.); NEPA
Regulations (40 CFR parts 1500–1508);
other appropriate Federal laws and
regulations; and our policies and
procedures for compliance with those
regulations.
Public Availability of Comments
Before including your address, phone
number, email address, or other
personal identifying information in your
comment, you should be aware that
your entire comment—including your
personal identifying information—may
be made publicly available at any time.
While you can ask us in your comment
to withhold your personal identifying
information from public review, we
cannot guarantee that we will be able to
do so.
Charles M. Wooley,
Acting Regional Director, Midwest Region,
U.S. Fish and Wildlife Service.
[FR Doc. 2011–31565 Filed 12–7–11; 8:45 am]
BILLING CODE 4310–55–P
DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue
[Docket No. ONRR–2011–0021]
Agency Information Collection
Activities: Proposed Collection,
Comment Request
Office of Natural Resources
Revenue (ONRR), Interior.
ACTION: Notice of an extension of a
currently approved information
collection.
AGENCY:
To comply with the
Paperwork Reduction Act of 1995
(PRA), we are inviting comments on a
collection of information requests that
we will submit to the Office of
Management and Budget (OMB) for
review and approval. The OMB formerly
approved this information collection
request (ICR) under OMB Control
Number 1010–0103. After the Secretary
of the Department of the Interior
established ONRR (the former Minerals
Revenue Management, a program under
the Minerals Management Service) on
October 1, 2010, OMB approved a new
series number for ONRR and
renumbered our ICRs. This ICR covers
the paperwork requirements in the
regulations under title 30, Code of
Federal Regulations (CFR), parts 1202,
1206, and 1207 (previously 30 CFR parts
202, 206, and 207). The revised title of
this ICR is ‘‘30 CFR Parts 1202, 1206,
and 1207, Indian Oil and Gas
Valuation.’’ There are five forms
SUMMARY:
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associated with this information
collection.
Submit written comments on or
before January 9, 2012.
ADDRESSES: You may submit comments
on this ICR to ONRR by any of the
following methods. Please use ‘‘ICR
1012–0002’’ as an identifier in your
comment.
• Electronically go to https://
www.regulations.gov. In the entry titled
‘‘Enter Keyword or ID,’’ enter ‘‘ONRR–
2011–0021’’ and then click ‘‘Search.’’
Follow the instructions to submit public
comments. The ONRR will post all
comments.
• Mail comments to Armand
Southall, Regulatory Specialist, Office of
Natural Resources, P.O. Box 25165, MS
64000A, Denver, Colorado 80225. Please
reference ICR 1012–0002 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 1012–0002
in your comments.
FOR FURTHER INFORMATION CONTACT:
Armand Southall, telephone (303) 231–
3221, or email
armand.southall@onrr.gov. You may
also 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 collection of
information. You may also review the
information collection online at https://
www.reginfo.gov/public/PRAMain.
SUPPLEMENTARY INFORMATION:
Title: 30 CFR Parts 1202, 1206, and
1207, Indian Oil and Gas Valuation.
OMB Control Number: 1012–0002.
Bureau Form Number: Forms MMS–
4109, MMS–4110, MMS–4295, MMS–
4410, and MMS–4411.
DATES:
Note: The ONRR will publish a rule
updating our form numbers to Forms ONRR–
4109, ONRR–4110, ONRR–4295, ONRR–
4410, and ONRR–4411.
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 on Federal
and Indian lands and the OCS, collect
the royalties and other mineral revenues
due, and distribute the funds in
accordance with those laws. Applicable
laws pertaining to mineral leases on
Federal and Indian lands and the OCS
are posted on our Web site at https://
www.onrr.gov/Laws_R_D/
PublicLawsAMR.htm.
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The Secretary also has a trust
responsibility to manage Indian lands
and seek advice and information from
Indian beneficiaries. The ONRR
performs the minerals revenue
management functions and assists the
Secretary in carrying out the
Department’s trust responsibility for
Indian lands. Indian Tribes and
individual Indian mineral owners
receive all royalties generated from their
lands. Determining product valuation is
essential to ensure that Indian Tribes
and individual Indian mineral owners
receive payment on the full value of the
minerals removed from their lands.
Failure to collect the data described in
this information collection could result
in the undervaluation of leased minerals
on Indian lands.
Effective October 1, 2010, ONRR
reorganized and transferred their
regulations from chapter II to chapter
XII in title 30 of the Code of Federal
Regulations (CFR), resulting in a change
in our citations. Information collections
covered in this ICR are found at 30 CFR
part 1202, subparts C and J, which
pertain to royalties; part 1206, subparts
B and E, which govern the valuation of
oil and gas produced from leases on
Indian lands; and part 1207, which
pertains to recordkeeping. All data
reported is subject to subsequent audit
and adjustment.
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Indian Oil
Regulations at 30 CFR part 1206,
subpart B, govern the valuation for
royalty purposes of all oil produced
from Indian oil and gas leases (Tribal
and allotted), except leases on the Osage
Indian Reservation, and are consistent
with mineral leasing laws, other
applicable laws, and lease terms.
Generally, the regulations provide that
lessees determine the value of oil based
upon the higher of (1) The gross
proceeds under an arm’s-length
contract; or (2) major portion analysis.
The value determined by the lessee may
be eligible for a transportation
allowance.
From information collected on Form
MMS–4110, Oil Transportation
Allowance Report, ONRR and Tribal
audit personnel evaluate (1) Whether
lessee-reported transportation
allowances are within regulatory
allowance limitations and calculated in
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accordance with applicable regulations;
and (2) whether the lessees reported and
paid the proper amount of royalties.
Indian Gas
Regulations at 30 CFR part 1206,
subpart E, govern the valuation for
royalty purposes of natural gas
produced from Indian oil and gas leases
(Tribal and allotted). The regulations
apply to all gas production from Indian
oil and gas leases, except leases on the
Osage Indian Reservation.
Most Indian leases contain the
requirement to perform accounting for
comparison (dual accounting) for gas
produced from the lease. Lessees must
elect to perform actual dual accounting
as defined in 30 CFR 1206.176 or
alternative dual accounting as defined
in 30 CFR 1206.173. Lessees use Form
MMS–4410, Accounting for Comparison
[Dual Accounting], to certify that dual
accounting is not required on an Indian
lease or to make an election for actual
or alternative dual accounting for Indian
leases.
The regulations require lessees to
submit Form MMS–4411, Safety Net
Report, when gas production from an
Indian oil or gas lease is sold beyond the
first index pricing point. The safety net
calculation establishes the minimum
value, for royalty purposes, of natural
gas production from Indian oil and gas
leases. This reporting requirement
ensures that Indian lessors receive all
royalties due and aids ONRR
compliance efforts.
From information collected on Form
MMS–4295, Gas Transportation
Allowance Report, ONRR and Tribal
audit personnel evaluate (1) Whether
lessee-reported transportation
allowances are within regulatory
allowance limitations and calculated in
accordance with applicable regulations;
and (2) whether the lessees reported and
paid the proper amount of royalties.
From information collected on Form
MMS–4109, Gas Processing Allowance
Summary Report, ONRR and Tribal
audit personnel evaluate (1) whether
lessee-reported processing allowances
are within regulatory allowance
limitations and calculated in accordance
with applicable regulations; and (2)
whether the lessees reported and paid
the proper amount of royalties.
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Indian Oil and Gas
Form MMS–4393, Request to Exceed
Regulatory Allowance Limitation, is
used for both Federal and Indian leases.
Most of the burden hours are incurred
on Federal leases; therefore, the form is
approved under ICR 1010–0136,
presently 1012–0005, pertaining to
Federal oil and gas leases. However, we
include a discussion of the form in this
ICR, as well as the burden hours for
Indian leases. To request permission to
exceed a regulatory allowance limit,
lessees must (1) submit a letter to ONRR
explaining why a higher allowance limit
is necessary; and (2) provide supporting
documentation, including a completed
Form MMS–4393. This form provides
ONRR with the data necessary to make
a decision whether to approve or deny
the request and track deductions on
royalty reports.
OMB Approval
The ONRR will request OMB’s
approval to continue to collect this
information. Not collecting this
information would limit the Secretary’s
ability to discharge fiduciary duties and
may also result in the inability to
confirm the accurate royalty value to
Indian Tribes and individual Indian
mineral owners. ONRR protects
proprietary information it receives, and
does not collect items of a sensitive
nature. The requirement to respond is
mandatory for Form MMS–4410,
Accounting for Comparison [Dual
Accounting], and Form MMS–4411,
Safety Net Report, under certain
circumstances. And, the lessees are
required to submit Forms MMS–4109,
MMS–4110, and MMS–4295 in order to
obtain a benefit.
Frequency of Response: Annually and
on occasion.
Estimated Number and Description of
Respondents: 148 Indian lessees.
Estimated Annual Reporting and
Recordkeeping ‘‘Hour’’ Burden: 1,309
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:
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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS
30 CFR
Reporting and recordkeeping requirement
Average
number of annual responses
Hour burden
Annual burden
hours
PART 1202—ROYALTIES
Subpart C—Federal and Indian Oil
1202.101 .....................................
Standards for reporting and paying royalties ..........
Oil volumes are to be reported in barrels of clean
oil of 42 standard U.S. gallons (231 cubic inches
each) at 60 °F.
Burden covered under OMB Control Number 1012–
0004 (expires 12/31/2012). Burden covered under
§ 1210.52.
Subpart J—Gas Production From Indian Leases
1202.551(b) .................................
How do I determine the volume of production for
which I must pay royalty if my lease is not in an
approved Federal unit or communitization agreement (AFA)?
(b) You and all other persons paying royalties on
the lease must report and pay royalties based on
your takes.
1202.551(c) .................................
(c) You and all other persons paying royalties on
the lease may ask ONRR for permission * * * to
report entitlements.
1202.558(a) and (b) ....................
What standards do I use to report and pay royalties on gas?
(a) You must report gas volumes as follows:
(b) You must report residue gas and gas plant
product volumes as follows:
Burden covered under OMB Control Number 1012–
0004. Burden covered under § 1210.52.
1
1
1
Burden covered under OMB Control Number 1012–
0004. Burden covered under § 1210.52.
PART 1206—PRODUCT VALUATION
Subpart B—Indian Oil
Transportation allowances—general .......................
(b)(2) Upon request of a lessee, ONRR may approve a transportation allowance deduction in
excess of the limitation prescribed by paragraph
(b)(1) of this section. * * * An application for exception (using Form MMS–4393, Request to Exceed Regulatory Allowance Limitation) must contain all relevant and supporting documentation
necessary for ONRR to make a determination.
1206.57(a)(1)(i) ...........................
Determination of transportation allowances ............
(a) Arm’s-length transportation contracts.
(1)(i) * * * The lessee shall have the burden of
demonstrating that its contract is arm’s-length.
AUDIT PROCESS. See note.
1206.57(a)(1)(i) ...........................
(a) Arm’s-length transportation contracts ................
(1)(i) * * * Before any deduction may be taken, the
lessee must submit a completed page one of
Form MMS–4110 (and Schedule 1), Oil Transportation Allowance Report.
Burden covered under § 1206.57(c)(1)(i) and (iii).
1206.57(a)(1)(iii) ..........................
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1206.56(b)(2) ...............................
(a) Arm’s-length transportation contracts ................
(1)(iii) * * * When ONRR determines that the
value of the transportation may be unreasonable,
ONRR will notify the lessee and give the lessee
an opportunity to provide written information justifying the lessee’s transportation costs.
AUDIT PROCESS. See note.
1206.57(a)(2)(i) ...........................
(a) Arm’s-length transportation contracts ................
(2)(i) * * * Except as provided in this paragraph,
no allowance may be taken for the costs of
transporting lease production which is not royalty-bearing without ONRR approval.
Burden covered under § 1206.57(a)(3).
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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Average
number of annual responses
Annual burden
hours
20
1
20
40
1
40
Reporting and recordkeeping requirement
1206.57(a)(2)(ii) ...........................
(a) Arm’s-length transportation contracts ................
(2)(ii) Notwithstanding the requirements of paragraph (i), the lessee may propose to ONRR a
cost allocation method on the basis of the values
of the products transported.
1206.57(a)(3) ...............................
(a) Arm’s-length transportation contracts ................
(3) If an arm’s-length transportation contract includes both gaseous and liquid products, and
the transportation costs attributable to each
product cannot be determined from the contract,
the lessee shall propose an allocation procedure
to ONRR. * * * The lessee shall submit all available data to support its proposal.
1206.57(b)(1) ...............................
(b) Non-arm’s-length or no contract ........................
(1) * * * A transportation allowance may be
claimed retroactively for a period of not more
than 3 months prior to the first day of the month
that Form MMS–4110 is filed with ONRR, unless
ONRR approves a longer period upon a showing
of good cause by the lessee.
Burden covered under § 1206.57(c)(2)(i) and (iii).
1206.57(b)(1) ...............................
(b) Non-arm’s-length or no contract ........................
(1) * * * When necessary or appropriate, ONRR
may direct a lessee to modify its actual transportation allowance deduction.
Burden covered under OMB Control Number 1012–
0004. Burden covered under § 1210.52.
1206.57(b)(2)(iv) ..........................
(b) Non-arm’s-length or no contract ........................
(2)(iv) * * * After a lessee has elected to use either method for a transportation system, the lessee may not later elect to change to the other alternative without approval of ONRR.
20
1
20
1206.57(b)(2)(iv)(A) .....................
(b) Non-arm’s-length or no contract ........................
(2)(iv)(A) * * * After an election is made, the lessee may not change methods without ONRR approval.
20
1
20
1206.57(b)(3)(i) ...........................
(b) Non-arm’s-length or no contract ........................
(3)(i) * * * Except as provided in this paragraph,
the lessee may not take an allowance for transporting lease production which is not royalty
bearing without ONRR approval.
40
1
40
1206.57(b)(3)(ii) ...........................
(b) Non-arm’s-length or no contract ........................
(3)(ii) Notwithstanding the requirements of paragraph (i), the lessee may propose to ONRR a
cost allocation method on the basis of the values
of the products transported.
20
1
20
1206.57(b)(4) ...............................
(b) Non-arm’s-length or no contract ........................
(4) Where both gaseous and liquid products are
transported through the same transportation system, the lessee shall propose a cost allocation
procedure to ONRR. * * * The lessee shall submit all available data to support its proposal.
20
1
20
1206.57(b)(5) ...............................
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30 CFR
(b) Non-arm’s-length or no contract ........................
(5) A lessee may apply to ONRR for an exception
from the requirement that it compute actual costs
in accordance with paragraphs (b)(1) through
(b)(4) of this section.
20
1
20
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Federal Register / Vol. 76, No. 236 / Thursday, December 8, 2011 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Average
number of annual responses
Annual burden
hours
4
1
4
4
1
4
Reporting and recordkeeping requirement
1206.57(c)(1)(i) ............................
(c) Reporting requirements ......................................
(1) Arm’s-length contracts. (i) With the exception of
those transportation allowances specified in
paragraphs (c)(1)(v) and (c)(1)(vi) of this section,
the lessee shall submit page one of the initial
Form MMS–4110 (and Schedule 1), Oil Transportation Allowance Report, prior to, or at the
same time as, the transportation allowance determined, under an arm’s-length contract, is reported on Form MMS–2014, Report of Sales and
Royalty Remittance.
1206.57(c)(1)(iii) ..........................
(c) Reporting requirements ......................................
(1) Arm’s-length contracts. (iii) After the initial reporting period and for succeeding reporting periods, lessees must submit page one of Form
MMS–4110 (and Schedule 1) within 3 months
after the end of the calendar year, or after the
applicable contract or rate terminates or is modified or amended, whichever is earlier, unless
ONRR approves a longer period (during which
period the lessee shall continue to use the allowance from the previous reporting period).
1206.57(c)(1)(iv) ..........................
(c) Reporting requirements ......................................
(1) Arm’s-length contracts. (iv) ONRR may require
that a lessee submit arm’s-length transportation
contracts, production agreements, operating
agreements, and related documents. Documents
shall be submitted within a reasonable time, as
determined by ONRR.
1206.57(c)(2)(i) ............................
(c) Reporting requirements ......................................
(2) Non-arm’s-length or no contract.
(i) With the exception of those transportation allowances specified in paragraphs (c)(2)(v), (c)(2)(vii)
and (c)(2)(viii) of this section, the lessee shall
submit an initial Form MMS–4110 prior to, or at
the same time as, the transportation allowance
determined under a non-arm’s-length contract or
no-contract situation is reported on Form MMS–
2014. * * * The initial report may be based upon
estimated costs.
6
1
6
1206.57(c)(2)(iii) ..........................
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30 CFR
(c) Reporting requirements ......................................
(2) Non-arm’s-length or no contract.
(iii) For calendar-year reporting periods succeeding
the initial reporting period, the lessee shall submit a completed Form MMS–4110 containing the
actual costs for the previous reporting period. If
oil transportation is continuing, the lessee shall
include on Form MMS–4110 its estimated costs
for the next calendar year. * * * ONRR must receive the Form MMS–4110 within 3 months after
the end of the previous reporting period, unless
ONRR approves a longer period (during which
period the lessee shall continue to use the allowance from the previous reporting period).
6
1
6
1206.57(c)(2)(iv) ..........................
(c) Reporting requirements ......................................
(2) Non-arm’s-length or no contract.
(iv) For new transportation facilities or arrangements, the lessee’s initial Form MMS–4110 shall
include estimates of the allowable oil transportation costs for the applicable period.
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Hour burden
AUDIT PROCESS. See note.
Burden covered under § 1206.57(c)(2)(i).
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Federal Register / Vol. 76, No. 236 / Thursday, December 8, 2011 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Average
number of annual responses
Hour burden
Annual burden
hours
30 CFR
Reporting and recordkeeping requirement
1206.57(c)(2)(v) ...........................
(c) Reporting requirements ......................................
(2) Non-arm’s-length or no contract.
(v) * * * only those allowances that have been approved by ONRR in writing.
Burden covered under § 1206.57(c)(2)(i).
1206.57(c)(2)(vi) ..........................
(c) Reporting requirements ......................................
(2) Non-arm’s-length or no contract.
(vi) Upon request by ONRR, the lessee shall submit all data used to prepare its Form MMS–
4110. The data shall be provided within a reasonable period of time, as determined by ONRR.
AUDIT PROCESS. See note.
1206.57(c)(4) and (e)(2) ..............
(c) Reporting requirements ......................................
(4) Transportation allowances must be reported as
a separate line item on Form MMS–2014.
(e)Adjustments.
(2)For lessees transporting production from Indian
leases, the lessee must submit a corrected Form
MMS–2014 to reflect actual costs.
Burden covered under OMB Control Number 1012–
0004. Burden covered under § 1210.52.
1206.59 .......................................
May I ask ONRR for valuation guidance? ...............
You may ask ONRR for guidance in determining
value. You may propose a value method to
ONRR. Submit all available data related to your
proposal and any additional information ONRR
deems necessary.
1206.61(a) and (b) ......................
What records must I keep and produce? ................
(a) On request, you must make available sales,
volume, and transportation data for production
you sold, purchased, or obtained from the field
or area. You must make this data available to
ONRR, Indian representatives, or other authorized persons.
(b) You must retain all data relevant to the determination of royalty value.
20
1
20
AUDIT PROCESS. See note.
PART 1206—PRODUCT VALUATION
Subpart E—Indian Gas
How do I value gas produced from leases in an
index zone?
(b) Valuing residue gas and gas before processing.
(1)(ii) Gas production that you certify on Form
MMS–4410 * * * is not processed before it flows
into a pipeline with an index but which may be
processed later.
4
58
232
1206.172(e)(6)(i) and (iii) ............
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1206.172(b)(1)(ii) .........................
(e) Determining the minimum value for royalty purposes of gas sold beyond the first index pricing
point.
(6)(i) You must report the safety net price for each
index zone to ONRR on Form MMS–4411, Safety Net Report, no later than June 30 following
each calendar year;
(iii) ONRR may order you to amend your safety net
price within one year from the date your Form
MMS–4411 is due or is filed, whichever is later.
3
11
33
1206.172(e)(6)(ii) .........................
(e) Determining the minimum value for royalty purposes of gas sold beyond the first index pricing
point.
(6)(ii) You must pay and report on Form MMS–
2014 additional royalties due no later than June
30 following each calendar year.
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Burden covered under OMB Control Number 1012–
0004. Burden covered under § 1210.52.
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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Average
number of annual responses
Annual burden
hours
40
1
40
2
12
24
Reporting and recordkeeping requirement
1206.172(f)(1)(ii), (f)(2), and (f)(3)
(f ) Excluding some or all Tribal leases from valuation under this section.
(1) An Indian Tribe may ask ONRR to exclude
some or all of its leases from valuation under
this section.
(ii) If an Indian Tribe requests exclusion from an
index zone for less than all of its leases, ONRR
will approve the request only if the excluded
leases may be segregated into one or more
groups based on separate fields within the reservation.
(2) An Indian Tribe may ask ONRR S to terminate
exclusion of its leases from valuation under this
section.
(3) The Indian Tribe’s request to ONRR under either paragraph (f)(1) or (2) of this section must
be in the form of a Tribal resolution.
1206.173(a)(1) .............................
How do I calculate the alternative methodology for
dual accounting?
(a) Electing a dual accounting method.
(1) * * * You may elect to perform the dual accounting calculation according to either
§ 1206.176(a) (called actual dual accounting), or
paragraph (b) of this section (called the alternative methodology for dual accounting).
1206.173(a)(2) .............................
(a) Electing a dual accounting method ....................
(2) You must make a separate election to use the
alternative methodology for dual accounting for
your Indian leases in each ONRR S-designated
area.
Burden covered under § 1206.173(a)(1).
1206.174(a)(4)(ii) .........................
How do I value gas production when an indexbased method cannot be used?
(a) Situations in which an index-based method
cannot be used.
(4)(ii) If the major portion value is higher, you must
submit an amended Form MMS–2014 to ONRR
by the due date specified in the written notice
from ONRR of the major portion value.
Burden covered under OMB Control Number 1012–
0004. Burden covered under § 1210.52.
1206.174 (b)(1)(i) and (iii); (b)(2);
(d)(2).
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30 CFR
(b) Arm’s-length contracts ........................................
(1)(i) You have the burden of demonstrating that
your contract is arm’s-length.
(iii) * * * In these circumstances, ONRR will notify
you and give you an opportunity to provide written information justifying your value.
(2) ONRR may require you to certify that your
arm’s-length contract provisions include all of the
consideration the buyer pays, either directly or
indirectly, for the gas, residue gas, or gas plant
product.
(d) Supporting data. .................................................
(2) You must make all such data available upon request to the authorized ONRR or Indian representatives, to the Office of the Inspector General of the Department, or other authorized persons.
AUDIT PROCESS. See note.
1206.174(d) .................................
(d) Supporting data. If you determine the value of
production under paragraph (c) of this section,
you must retain all data relevant to determination
of royalty value.
Burden covered under OMB Control Number 1012–
0004.
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20
1
20
30 CFR
Reporting and recordkeeping requirement
Hour burden
1206.174(f) ..................................
(f) Value guidance. You may ask ONRR for guidance in determining value. You may propose a
valuation method to ONRR. Submit all available
data related to your proposal and any additional
information ONRR deems necessary.
1206.175(d)(4) .............................
How do I determine quantities and qualities of production for computing royalties?
(d)(4) You may request ONRR approval of other
methods for determining the quantity of residue
gas and gas plant products allocable to each
lease.
1206.176(b) .................................
How do I perform accounting for comparison? .......
(b) If you are required to account for comparison,
you may elect to use the alternative dual accounting methodology provided for in § 1206.173
instead of the provisions in paragraph (a) of this
section.
Burden covered under § 1206.173(a)(1).
1206.176(c) .................................
(c) * * * If you do not perform dual accounting,
you must certify to ONRR that gas flows into
such a pipeline before it is processed.
Burden covered under § 1206.172(b)(1)(ii).
Transportation Allowances
What general requirements regarding transportation allowances apply to me?
(c)(2) If you ask ONRR, ONRR may approve a
transportation allowance deduction in excess of
the limitation in paragraph (c)(1) of this section.
(3) Your application for exception (using Form
MMS–4393, Request to Exceed Regulatory Allowance Limitation) must contain all relevant and
supporting documentation necessary for ONRR
to make a determination.
1206.178(a)(1)(i) .........................
How do I determine a transportation allowance? ....
(a) Determining a transportation allowance under
an arm’s-length contract.
(1)(i) * * * You are required to submit to ONRR a
copy of your arm’s-length transportation contract(s) and all subsequent amendments to the
contract(s) within 2 months of the date ONRR
receives your report which claims the allowance
on the Form MMS–2014.
1206.178(a)(1)(iii) ........................
(a) Determining a transportation allowance under
an arm’s-length contract.
(1)(iii) If ONRR determines that the consideration
paid under an arm’s-length transportation contract does not reflect the value of the transportation because of misconduct by or between the
contracting parties * * * In these circumstances,
ONRR will notify you and give you an opportunity to provide written information justifying
your transportation costs.
1206.178(a)(2)(i) and (ii) .............
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1206.177(c)(2) and (c)(3) ............
(a) Determining a transportation allowance under
an arm’s-length contract.
(2)(i) * * * you cannot take an allowance for the
costs of transporting lease production that is not
royalty bearing without ONRR approval, or without lessor approval on Tribal leases.
(ii) As an alternative to paragraph (a)(2)(i) of this
section, you may propose to ONRR a cost allocation method based on the values of the products transported.
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40
1
40
(b) Determining a transportation allowance under a
non-arm’s-length contract or no contract.
(1)(ii) * * * You must submit the actual cost information to support the allowance to ONRR on
Form MMS–4295, Gas Transportation Allowance
Report, within 3 months after the end of the 12month period to which the allowance applies.
15
5
75
1206.178(b)(2)(iv) ........................
(b) Determining a transportation allowance under a
non-arm’s-length contract or no contract.
(2)(iv) You may use either depreciation with a return on undepreciated capital investment or a return on depreciable capital investment. * * * you
may not later elect to change to the other alternative without ONRR approval.
20
1
20
1206.178(b)(2)(iv)(A) ...................
(b) Determining a transportation allowance under a
non-arm’s-length contract or no contract.
(2)(iv)(A) * * * Once you make an election, you
may not change methods without ONRR approval.
20
1
20
1206.178(b)(3)(i) .........................
(b) Determining a transportation allowance under a
non-arm’s-length contract or no contract.
(3)(i) * * * Except as provided in this paragraph,
you may not take an allowance for transporting a
product that is not royalty bearing without ONRR
approval.
40
1
40
1206.178(b)(3)(ii) .........................
(b) Determining a transportation allowance under a
non-arm’s-length contract or no contract.
(3)(ii) As an alternative to the requirements of
paragraph (b)(3)(i) of this section, you may propose to ONRR a cost allocation method based
on the values of the products transported.
20
1
20
1206.178(b)(5) .............................
(b) Determining a transportation allowance under a
non-arm’s-length contract or no contract.
(5) If you transport both gaseous and liquid products through the same transportation system,
you must propose a cost allocation procedure to
ONRR. * * * You are required to submit all relevant data to support your proposal.
40
1
40
1206.178(d)(1) .............................
(d) Reporting your transportation allowance ...........
(1) If ONRR requests, you must submit all data
used to determine your transportation allowance.
Reporting and recordkeeping requirement
1206.178(a)(3)(i) and (ii) .............
(a) Determining a transportation allowance under
an arm’s-length contract.
(3)(i) If your arm’s-length transportation contract includes both gaseous and liquid products and the
transportation costs attributable to each cannot
be determined from the contract, you must propose an allocation procedure to ONRR.
(ii) You are required to submit all relevant data to
support your allocation proposal.
1206.178(b)(1)(ii) .........................
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Reporting and recordkeeping requirement
1206.178(d)(2), (e), and (f)(1) .....
(d) Reporting your transportation allowance ...........
(2) You must report transportation allowances as a
separate entry on Form MMS–2014.
(e) Adjusting incorrect allowances. If for any month
the transportation allowance you are entitled to
is less than the amount you took on Form MMS–
2014, you are required to report and pay additional royalties due, plus interest computed
under 30 CFR 1218.54 from the first day of the
first month you deducted the improper transportation allowance until the date you pay the royalties due.
(f) Determining allowable costs for transportation
allowances.
(1) Firm demand charges paid to pipelines. * * *
You must modify the Form MMS–2014 by the
amount received or credited for the affected reporting period.
Average
number of annual responses
Hour burden
Annual burden
hours
Burden covered under OMB Control Number 1012–
0004. Burden covered under § 1210.52.
Processing Allowances
How do I determine an actual processing allowance?
(a) Determining a processing allowance if you have
an arm’s-length processing contract.
(1)(i) * * * You have the burden of demonstrating
that your contract is arm’s-length. You are required to submit to ONRR a copy of your arm’slength contract(s) and all subsequent amendments to the contract(s) within 2 months of the
date ONRR receives your first report that deducts the allowance on the Form MMS–2014.
1206.180(a)(1)(iii) ........................
(a) Determining a processing allowance if you have
an arm’s-length processing contract.
(1)(iii) If ONRR determines that the consideration
paid under an arm’s-length processing contract
does not reflect the value of the processing because of misconduct by or between the contracting parties * * * In these circumstances,
ONRR will notify you and give you an opportunity to provide written information justifying
your processing costs.
1206.180(a)(3) .............................
(a) Determining a processing allowance if you have
an arm’s-length processing contract.
(3) If your arm’s-length processing contract includes more than one gas plant product and the
processing costs attributable to each product
cannot be determined from the contract, you
must propose an allocation procedure to ONRR.
* * * You are required to submit all relevant
data to support your proposal.
40
1
40
1206.180(b)(1)(ii) .........................
mstockstill on DSK4VPTVN1PROD with NOTICES
1206.180(a)(1)(i) .........................
(b) Determining a processing allowance if you have
a non-arm’s-length contract or no contract.
(1)(ii) * * * You must submit the actual cost information to support the allowance to ONRR on
Form MMS–4109, Gas Processing Allowance
Summary Report, within 3 months after the end
of the 12-month period for which the allowance
applies.
20
12
240
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Annual burden
hours
20
1
20
(b) Determining a processing allowance if you have
a non-arm’s-length contract or no contract.
(2)(iv)(A) * * * Once you make an election, you
may not change methods without ONRR approval.
20
1
20
1206.180(b)(3) .............................
(b) Determining a processing allowance if you have
a non-arm’s-length contract or no contract.
(3) Your processing allowance under this paragraph (b) must be determined based upon a calendar year or other period if you and ONRR
agree to an alternative.
20
1
20
1206.180(c)(1) .............................
(c) Reporting your processing allowance ................
(1) If ONRR requests, you must submit all data
used to determine your processing allowance.
AUDIT PROCESS. See note.
1206.180(c)(2) and (d) ................
(c) Reporting your processing allowance ................
(2) You must report gas processing allowances as
a separate entry on the Form MMS–2014 * * *.
(d) Adjusting incorrect processing allowances. If for
any month the gas processing allowance you are
entitled to is less than the amount you took on
Form MMS–2014, you are required to pay additional royalties, plus interest computed under 30
CFR 1218.54 from the first day of the first month
you deducted a processing allowance until the
date you pay the royalties due.
Burden covered under OMB Control Number 1012–
0004. Burden covered under § 1210.52.
1206.181(c) .................................
How do I establish processing costs for dual accounting purposes when I do not process the
gas?
(c) A proposed comparable processing fee submitted to either the Tribe and ONRR (for Tribal
leases) or ONRR (for allotted leases) with your
supporting documentation submitted to ONRR. If
ONRR does not take action on your proposal
within 120 days, the proposal will be deemed to
be denied and subject to appeal to the ONRR
Director under 30 CFR part 1290.
30 CFR
Reporting and recordkeeping requirement
Hour burden
1206.180(b)(2)(iv) ........................
(b) Determining a processing allowance if you have
a non-arm’s-length contract or no contract.
(2)(iv) You may use either depreciation with a return on undepreciable capital investment or a return on depreciable capital investment. * * * you
may not later elect to change to the other alternative without ONRR approval.
1206.180(b)(2)(iv)(A) ...................
40
1
PART 1207—SALES AGREEMENTS OR CONTRACTS GOVERNING THE DISPOSAL OF LEASE PRODUCTS
Subpart A—General Provisions
mstockstill on DSK4VPTVN1PROD with NOTICES
1207.4(b) .....................................
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Contracts made pursuant to old form leases ..........
(b) The stipulation, the substance of which must be
included in the contract, or be made the subject
matter of a separate instrument properly identifying the leases affected thereby, is as follows.
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Reporting and recordkeeping requirement
Hour burden
1207.5 .........................................
Contract and sales agreement retention .................
Copies of all sales contracts, posted price bulletins,
etc., and copies of all agreements, other contracts, or other documents which are relevant to
the valuation of production are to be maintained
by the lessee and made available upon request
during normal working hours to authorized
ONRR, State or Indian representatives, other
ONRR or BLM officials, auditors of the General
Accounting Office, or other persons authorized to
receive such documents, or shall be submitted to
ONRR within a reasonable period of time, as determined by ONRR. Any oral sales arrangement
negotiated by the lessee must be placed in written form and retained by the lessee. Records
shall be retained in accordance with 30 CFR part
1212.
TOTAL BURDEN .................
..................................................................................
Average
number of annual responses
Annual burden
hours
AUDIT PROCESS. See note.
..................................
148
1,309
mstockstill on DSK4VPTVN1PROD 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 ONRR staff asks non-standard questions to resolve exceptions.
Estimated Annual Reporting and
Recordkeeping ‘‘Non-hour’’ Cost
Burden: We have identified no ‘‘nonHour’’ cost burdens.
Public Disclosure Statement: The PRA
(44 U.S.C. 3501 et seq.) provides that an
agency may not conduct or sponsor, and
a person is not required to respond to,
a collection of information unless it
displays a currently valid OMB control
number.
Comments: Before submitting an ICR
to OMB, PRA section 3506(c)(2)(A)
requires each agency to ‘‘* * * provide
60-day notice in the Federal Register
* * * and otherwise consult with
members of the public and affected
agencies concerning each proposed
collection of information * * *.’’
Agencies must specifically solicit
comments to: (a) Evaluate whether the
proposed collection of information is
necessary for the agency to perform its
duties, including whether the
information is useful; (b) evaluate the
accuracy of the agency’s estimate of the
burden of the proposed collection of
information; (c) enhance the quality,
usefulness, and clarity of the
information to be collected; and (d)
minimize the burden on the
respondents, including the use of
automated collection techniques or
other forms of information technology.
The PRA also requires agencies to
estimate the total annual reporting
‘‘non-hour cost’’ burden to respondents
or recordkeepers resulting from the
collection of information. If you have
costs to generate, maintain, and disclose
this information, you should comment
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and provide your total capital and
startup cost components or annual
operation, maintenance, and purchase
of service components. You should
describe the methods you use to
estimate major cost factors, including
system and technology acquisition,
expected useful life of capital
equipment, discount rate(s), and the
period over which you incur costs.
Capital and startup costs include,
among other items, computers and
software you purchase to prepare for
collecting information; monitoring,
sampling, and testing equipment; and
record storage facilities. Generally, your
estimates should not include equipment
or services purchased: (i) Before October
1, 1995; (ii) to comply with
requirements not associated with the
information collection; (iii) for reasons
other than to provide information or
keep records for the Government; or (iv)
as part of customary and usual business
or private practices.
We will summarize written responses
to this notice and address them in our
ICR submission for OMB approval,
including appropriate adjustments to
the estimated burden. We will provide
a copy of the ICR to you without charge
upon request. We also will post the ICR
at https://www.onrr.gov/Laws_R_D/
FRNotices/FRInfColl.htm.
Public Comment Policy: We will post
all comments, including names and
addresses of respondents, at https://
regulations.gov. Before including your
address, phone number, email address,
or other personal identifying
information in your comment, be
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advised that your entire comment—
including your personal identifying
information—may be made publicly
available at any time. While you can ask
us in your comment to withhold from
public view your personal identifying
information, we cannot guarantee that
we will be able to do so.
Office of the Secretary, Information
Collection Clearance Officer: Laura
Dorey (202) 208–2654.
Dated: November 29, 2011.
Gregory J. Gould,
Director, Office of Natural Resources
Revenue.
[FR Doc. 2011–31496 Filed 12–7–11; 8:45 am]
BILLING CODE 4310–T2–P
DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue
[Docket No. ONRR–2011–0002]
States’ Decisions on Participating in
Accounting and Auditing Relief for
Federal Oil and Gas Marginal
Properties
Office of Natural Resources
Revenue, Interior.
ACTION: Notice.
AGENCY:
Final regulations published
September 13, 2004 (69 FR 55076),
provide two types of accounting and
auditing relief for Federal onshore or
Outer Continental Shelf lease
production from marginal properties. As
required by the regulations, the Office of
Natural Resources Revenue (ONRR)
SUMMARY:
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]]>Agencies
[Federal Register Volume 76, Number 236 (Thursday, December 8, 2011)]
[Notices]
[Pages 76746-76757]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-31496]
-----------------------------------------------------------------------
DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue
[Docket No. ONRR-2011-0021]
Agency Information Collection Activities: Proposed Collection,
Comment Request
AGENCY: Office of Natural Resources Revenue (ONRR), Interior.
ACTION: Notice of an extension of a currently approved information
collection.
-----------------------------------------------------------------------
SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), we
are inviting comments on a collection of information requests that we
will submit to the Office of Management and Budget (OMB) for review and
approval. The OMB formerly approved this information collection request
(ICR) under OMB Control Number 1010-0103. After the Secretary of the
Department of the Interior established ONRR (the former Minerals
Revenue Management, a program under the Minerals Management Service) on
October 1, 2010, OMB approved a new series number for ONRR and
renumbered our ICRs. This ICR covers the paperwork requirements in the
regulations under title 30, Code of Federal Regulations (CFR), parts
1202, 1206, and 1207 (previously 30 CFR parts 202, 206, and 207). The
revised title of this ICR is ``30 CFR Parts 1202, 1206, and 1207,
Indian Oil and Gas Valuation.'' There are five forms associated with
this information collection.
DATES: Submit written comments on or before January 9, 2012.
ADDRESSES: You may submit comments on this ICR to ONRR by any of the
following methods. Please use ``ICR 1012-0002'' as an identifier in
your comment.
Electronically go to https://www.regulations.gov. In the
entry titled ``Enter Keyword or ID,'' enter ``ONRR-2011-0021'' and then
click ``Search.'' Follow the instructions to submit public comments.
The ONRR will post all comments.
Mail comments to Armand Southall, Regulatory Specialist,
Office of Natural Resources, P.O. Box 25165, MS 64000A, Denver,
Colorado 80225. Please reference ICR 1012-0002 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 1012-0002 in your comments.
FOR FURTHER INFORMATION CONTACT: Armand Southall, telephone (303) 231-
3221, or email armand.southall@onrr.gov. You may also 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
collection of information. You may also review the information
collection online at https://www.reginfo.gov/public/PRAMain.
SUPPLEMENTARY INFORMATION:
Title: 30 CFR Parts 1202, 1206, and 1207, Indian Oil and Gas
Valuation.
OMB Control Number: 1012-0002.
Bureau Form Number: Forms MMS-4109, MMS-4110, MMS-4295, MMS-4410,
and MMS-4411.
Note: The ONRR will publish a rule updating our form numbers to
Forms ONRR-4109, ONRR-4110, ONRR-4295, ONRR-4410, and ONRR-4411.
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 on Federal and
Indian lands and the OCS, collect the royalties and other mineral
revenues due, and distribute the funds in accordance with those laws.
Applicable laws pertaining to mineral leases on Federal and Indian
lands and the OCS are posted on our Web site at https://www.onrr.gov/Laws_R_D/PublicLawsAMR.htm.
[[Page 76747]]
The Secretary also has a trust responsibility to manage Indian
lands and seek advice and information from Indian beneficiaries. The
ONRR performs the minerals revenue management functions and assists the
Secretary in carrying out the Department's trust responsibility for
Indian lands. Indian Tribes and individual Indian mineral owners
receive all royalties generated from their lands. Determining product
valuation is essential to ensure that Indian Tribes and individual
Indian mineral owners receive payment on the full value of the minerals
removed from their lands. Failure to collect the data described in this
information collection could result in the undervaluation of leased
minerals on Indian lands.
Effective October 1, 2010, ONRR reorganized and transferred their
regulations from chapter II to chapter XII in title 30 of the Code of
Federal Regulations (CFR), resulting in a change in our citations.
Information collections covered in this ICR are found at 30 CFR part
1202, subparts C and J, which pertain to royalties; part 1206, subparts
B and E, which govern the valuation of oil and gas produced from leases
on Indian lands; and part 1207, which pertains to recordkeeping. All
data reported is subject to subsequent audit and adjustment.
Indian Oil
Regulations at 30 CFR part 1206, subpart B, govern the valuation
for royalty purposes of all oil produced from Indian oil and gas leases
(Tribal and allotted), except leases on the Osage Indian Reservation,
and are consistent with mineral leasing laws, other applicable laws,
and lease terms. Generally, the regulations provide that lessees
determine the value of oil based upon the higher of (1) The gross
proceeds under an arm's-length contract; or (2) major portion analysis.
The value determined by the lessee may be eligible for a transportation
allowance.
From information collected on Form MMS-4110, Oil Transportation
Allowance Report, ONRR and Tribal audit personnel evaluate (1) Whether
lessee-reported transportation allowances are within regulatory
allowance limitations and calculated in accordance with applicable
regulations; and (2) whether the lessees reported and paid the proper
amount of royalties.
Indian Gas
Regulations at 30 CFR part 1206, subpart E, govern the valuation
for royalty purposes of natural gas produced from Indian oil and gas
leases (Tribal and allotted). The regulations apply to all gas
production from Indian oil and gas leases, except leases on the Osage
Indian Reservation.
Most Indian leases contain the requirement to perform accounting
for comparison (dual accounting) for gas produced from the lease.
Lessees must elect to perform actual dual accounting as defined in 30
CFR 1206.176 or alternative dual accounting as defined in 30 CFR
1206.173. Lessees use Form MMS-4410, Accounting for Comparison [Dual
Accounting], to certify that dual accounting is not required on an
Indian lease or to make an election for actual or alternative dual
accounting for Indian leases.
The regulations require lessees to submit Form MMS-4411, Safety Net
Report, when gas production from an Indian oil or gas lease is sold
beyond the first index pricing point. The safety net calculation
establishes the minimum value, for royalty purposes, of natural gas
production from Indian oil and gas leases. This reporting requirement
ensures that Indian lessors receive all royalties due and aids ONRR
compliance efforts.
From information collected on Form MMS-4295, Gas Transportation
Allowance Report, ONRR and Tribal audit personnel evaluate (1) Whether
lessee-reported transportation allowances are within regulatory
allowance limitations and calculated in accordance with applicable
regulations; and (2) whether the lessees reported and paid the proper
amount of royalties.
From information collected on Form MMS-4109, Gas Processing
Allowance Summary Report, ONRR and Tribal audit personnel evaluate (1)
whether lessee-reported processing allowances are within regulatory
allowance limitations and calculated in accordance with applicable
regulations; and (2) whether the lessees reported and paid the proper
amount of royalties.
Indian Oil and Gas
Form MMS-4393, Request to Exceed Regulatory Allowance Limitation,
is used for both Federal and Indian leases. Most of the burden hours
are incurred on Federal leases; therefore, the form is approved under
ICR 1010-0136, presently 1012-0005, pertaining to Federal oil and gas
leases. However, we include a discussion of the form in this ICR, as
well as the burden hours for Indian leases. To request permission to
exceed a regulatory allowance limit, lessees must (1) submit a letter
to ONRR explaining why a higher allowance limit is necessary; and (2)
provide supporting documentation, including a completed Form MMS-4393.
This form provides ONRR with the data necessary to make a decision
whether to approve or deny the request and track deductions on royalty
reports.
OMB Approval
The ONRR will request OMB's approval to continue to collect this
information. Not collecting this information would limit the
Secretary's ability to discharge fiduciary duties and may also result
in the inability to confirm the accurate royalty value to Indian Tribes
and individual Indian mineral owners. ONRR protects proprietary
information it receives, and does not collect items of a sensitive
nature. The requirement to respond is mandatory for Form MMS-4410,
Accounting for Comparison [Dual Accounting], and Form MMS-4411, Safety
Net Report, under certain circumstances. And, the lessees are required
to submit Forms MMS-4109, MMS-4110, and MMS-4295 in order to obtain a
benefit.
Frequency of Response: Annually and on occasion.
Estimated Number and Description of Respondents: 148 Indian
lessees.
Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 1,309
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:
[[Page 76748]]
Respondents' Estimated Annual Burden Hours
----------------------------------------------------------------------------------------------------------------
Average
Reporting and number of Annual burden
30 CFR recordkeeping Hour burden annual hours
requirement responses
----------------------------------------------------------------------------------------------------------------
PART 1202--ROYALTIES
Subpart C--Federal and Indian Oil
----------------------------------------------------------------------------------------------------------------
1202.101......................... Standards for reporting Burden covered under OMB Control Number 1012-0004
and paying royalties. (expires 12/31/2012). Burden covered under Sec.
Oil volumes are to be 1210.52.
reported in barrels of
clean oil of 42
standard U.S. gallons
(231 cubic inches each)
at 60 [deg]F.
----------------------------------------------------------------------------------------------------------------
Subpart J--Gas Production From Indian Leases
----------------------------------------------------------------------------------------------------------------
1202.551(b)...................... How do I determine the Burden covered under OMB Control Number 1012-0004.
volume of production Burden covered under Sec. 1210.52.
for which I must pay
royalty if my lease is
not in an approved
Federal unit or
communitization
agreement (AFA)?
(b) You and all other
persons paying
royalties on the lease
must report and pay
royalties based on your
takes.
----------------------------------------------------------------------------------------------------------------
1202.551(c)...................... (c) You and all other 1 1 1
persons paying
royalties on the lease
may ask ONRR for
permission * * * to
report entitlements.
----------------------------------------------------------------------------------------------------------------
1202.558(a) and (b).............. What standards do I use Burden covered under OMB Control Number 1012-0004.
to report and pay Burden covered under Sec. 1210.52.
royalties on gas?
(a) You must report gas
volumes as follows:.
(b) You must report
residue gas and gas
plant product volumes
as follows:.
----------------------------------------------------------------------------------------------------------------
PART 1206--PRODUCT VALUATION
Subpart B--Indian Oil
----------------------------------------------------------------------------------------------------------------
1206.56(b)(2).................... Transportation 4 1 4
allowances--general.
(b)(2) Upon request of a
lessee, ONRR may
approve a
transportation
allowance deduction in
excess of the
limitation prescribed
by paragraph (b)(1) of
this section. * * * An
application for
exception (using Form
MMS-4393, Request to
Exceed Regulatory
Allowance Limitation)
must contain all
relevant and supporting
documentation necessary
for ONRR to make a
determination.
----------------------------------------------------------------------------------------------------------------
1206.57(a)(1)(i)................. Determination of AUDIT PROCESS. See note.
transportation
allowances.
(a) Arm's-length
transportation
contracts..
(1)(i) * * * The lessee
shall have the burden
of demonstrating that
its contract is arm's-
length.
----------------------------------------------------------------------------------------------------------------
1206.57(a)(1)(i)................. (a) Arm's-length Burden covered under Sec. 1206.57(c)(1)(i) and
transportation (iii).
contracts.
(1)(i) * * * Before any
deduction may be taken,
the lessee must submit
a completed page one of
Form MMS-4110 (and
Schedule 1), Oil
Transportation
Allowance Report.
----------------------------------------------------------------------------------------------------------------
1206.57(a)(1)(iii)............... (a) Arm's-length AUDIT PROCESS. See note.
transportation
contracts.
(1)(iii) * * * When ONRR
determines that the
value of the
transportation may be
unreasonable, ONRR will
notify the lessee and
give the lessee an
opportunity to provide
written information
justifying the lessee's
transportation costs.
----------------------------------------------------------------------------------------------------------------
1206.57(a)(2)(i)................. (a) Arm's-length Burden covered under Sec. 1206.57(a)(3).
transportation
contracts.
(2)(i) * * * Except as
provided in this
paragraph, no allowance
may be taken for the
costs of transporting
lease production which
is not royalty-bearing
without ONRR approval.
----------------------------------------------------------------------------------------------------------------
[[Page 76749]]
1206.57(a)(2)(ii)................ (a) Arm's-length 20 1 20
transportation
contracts.
(2)(ii) Notwithstanding
the requirements of
paragraph (i), the
lessee may propose to
ONRR a cost allocation
method on the basis of
the values of the
products transported.
----------------------------------------------------------------------------------------------------------------
1206.57(a)(3).................... (a) Arm's-length 40 1 40
transportation
contracts.
(3) If an arm's-length
transportation contract
includes both gaseous
and liquid products,
and the transportation
costs attributable to
each product cannot be
determined from the
contract, the lessee
shall propose an
allocation procedure to
ONRR. * * * The lessee
shall submit all
available data to
support its proposal.
----------------------------------------------------------------------------------------------------------------
1206.57(b)(1).................... (b) Non-arm's-length or Burden covered under Sec. 1206.57(c)(2)(i) and
no contract. (iii).
(1) * * * A
transportation
allowance may be
claimed retroactively
for a period of not
more than 3 months
prior to the first day
of the month that Form
MMS-4110 is filed with
ONRR, unless ONRR
approves a longer
period upon a showing
of good cause by the
lessee.
----------------------------------------------------------------------------------------------------------------
1206.57(b)(1).................... (b) Non-arm's-length or Burden covered under OMB Control Number 1012-0004.
no contract. Burden covered under Sec. 1210.52.
(1) * * * When necessary
or appropriate, ONRR
may direct a lessee to
modify its actual
transportation
allowance deduction.
----------------------------------------------------------------------------------------------------------------
1206.57(b)(2)(iv)................ (b) Non-arm's-length or 20 1 20
no contract.
(2)(iv) * * * After a
lessee has elected to
use either method for a
transportation system,
the lessee may not
later elect to change
to the other
alternative without
approval of ONRR.
----------------------------------------------------------------------------------------------------------------
1206.57(b)(2)(iv)(A)............. (b) Non-arm's-length or 20 1 20
no contract.
(2)(iv)(A) * * * After
an election is made,
the lessee may not
change methods without
ONRR approval.
----------------------------------------------------------------------------------------------------------------
1206.57(b)(3)(i)................. (b) Non-arm's-length or 40 1 40
no contract.
(3)(i) * * * Except as
provided in this
paragraph, the lessee
may not take an
allowance for
transporting lease
production which is not
royalty bearing without
ONRR approval.
----------------------------------------------------------------------------------------------------------------
1206.57(b)(3)(ii)................ (b) Non-arm's-length or 20 1 20
no contract.
(3)(ii) Notwithstanding
the requirements of
paragraph (i), the
lessee may propose to
ONRR a cost allocation
method on the basis of
the values of the
products transported.
----------------------------------------------------------------------------------------------------------------
1206.57(b)(4).................... (b) Non-arm's-length or 20 1 20
no contract.
(4) Where both gaseous
and liquid products are
transported through the
same transportation
system, the lessee
shall propose a cost
allocation procedure to
ONRR. * * * The lessee
shall submit all
available data to
support its proposal.
----------------------------------------------------------------------------------------------------------------
1206.57(b)(5).................... (b) Non-arm's-length or 20 1 20
no contract.
(5) A lessee may apply
to ONRR for an
exception from the
requirement that it
compute actual costs in
accordance with
paragraphs (b)(1)
through (b)(4) of this
section.
----------------------------------------------------------------------------------------------------------------
[[Page 76750]]
1206.57(c)(1)(i)................. (c) Reporting 4 1 4
requirements.
(1) Arm's-length
contracts. (i) With the
exception of those
transportation
allowances specified in
paragraphs (c)(1)(v)
and (c)(1)(vi) of this
section, the lessee
shall submit page one
of the initial Form MMS-
4110 (and Schedule 1),
Oil Transportation
Allowance Report, prior
to, or at the same time
as, the transportation
allowance determined,
under an arm's-length
contract, is reported
on Form MMS-2014,
Report of Sales and
Royalty Remittance.
----------------------------------------------------------------------------------------------------------------
1206.57(c)(1)(iii)............... (c) Reporting 4 1 4
requirements.
(1) Arm's-length
contracts. (iii) After
the initial reporting
period and for
succeeding reporting
periods, lessees must
submit page one of Form
MMS-4110 (and Schedule
1) within 3 months
after the end of the
calendar year, or after
the applicable contract
or rate terminates or
is modified or amended,
whichever is earlier,
unless ONRR approves a
longer period (during
which period the lessee
shall continue to use
the allowance from the
previous reporting
period).
----------------------------------------------------------------------------------------------------------------
1206.57(c)(1)(iv)................ (c) Reporting AUDIT PROCESS. See note.
requirements.
(1) Arm's-length
contracts. (iv) ONRR
may require that a
lessee submit arm's-
length transportation
contracts, production
agreements, operating
agreements, and related
documents. Documents
shall be submitted
within a reasonable
time, as determined by
ONRR.
----------------------------------------------------------------------------------------------------------------
1206.57(c)(2)(i)................. (c) Reporting 6 1 6
requirements.
(2) Non-arm's-length or
no contract..
(i) With the exception
of those transportation
allowances specified in
paragraphs (c)(2)(v),
(c)(2)(vii) and
(c)(2)(viii) of this
section, the lessee
shall submit an initial
Form MMS-4110 prior to,
or at the same time as,
the transportation
allowance determined
under a non-arm's-
length contract or no-
contract situation is
reported on Form MMS-
2014. * * * The initial
report may be based
upon estimated costs.
----------------------------------------------------------------------------------------------------------------
1206.57(c)(2)(iii)............... (c) Reporting 6 1 6
requirements.
(2) Non-arm's-length or
no contract..
(iii) For calendar-year
reporting periods
succeeding the initial
reporting period, the
lessee shall submit a
completed Form MMS-4110
containing the actual
costs for the previous
reporting period. If
oil transportation is
continuing, the lessee
shall include on Form
MMS-4110 its estimated
costs for the next
calendar year. * * *
ONRR must receive the
Form MMS-4110 within 3
months after the end of
the previous reporting
period, unless ONRR
approves a longer
period (during which
period the lessee shall
continue to use the
allowance from the
previous reporting
period).
----------------------------------------------------------------------------------------------------------------
1206.57(c)(2)(iv)................ (c) Reporting Burden covered under Sec. 1206.57(c)(2)(i).
requirements.
(2) Non-arm's-length or
no contract..
(iv) For new
transportation
facilities or
arrangements, the
lessee's initial Form
MMS-4110 shall include
estimates of the
allowable oil
transportation costs
for the applicable
period.
----------------------------------------------------------------------------------------------------------------
[[Page 76751]]
1206.57(c)(2)(v)................. (c) Reporting Burden covered under Sec. 1206.57(c)(2)(i).
requirements.
(2) Non-arm's-length or
no contract..
(v) * * * only those
allowances that have
been approved by ONRR
in writing.
----------------------------------------------------------------------------------------------------------------
1206.57(c)(2)(vi)................ (c) Reporting AUDIT PROCESS. See note.
requirements.
(2) Non-arm's-length or
no contract..
(vi) Upon request by
ONRR, the lessee shall
submit all data used to
prepare its Form MMS-
4110. The data shall be
provided within a
reasonable period of
time, as determined by
ONRR.
----------------------------------------------------------------------------------------------------------------
1206.57(c)(4) and (e)(2)......... (c) Reporting Burden covered under OMB Control Number 1012-0004.
requirements. Burden covered under Sec. 1210.52.
(4) Transportation
allowances must be
reported as a separate
line item on Form MMS-
2014.
(e)Adjustments..........
(2)For lessees
transporting production
from Indian leases, the
lessee must submit a
corrected Form MMS-2014
to reflect actual costs.
----------------------------------------------------------------------------------------------------------------
1206.59.......................... May I ask ONRR for 20 1 20
valuation guidance?.
You may ask ONRR for
guidance in determining
value. You may propose
a value method to ONRR.
Submit all available
data related to your
proposal and any
additional information
ONRR deems necessary.
----------------------------------------------------------------------------------------------------------------
1206.61(a) and (b)............... What records must I keep AUDIT PROCESS. See note.
and produce?.
(a) On request, you must
make available sales,
volume, and
transportation data for
production you sold,
purchased, or obtained
from the field or area.
You must make this data
available to ONRR,
Indian representatives,
or other authorized
persons.
(b) You must retain all
data relevant to the
determination of
royalty value.
----------------------------------------------------------------------------------------------------------------
PART 1206--PRODUCT VALUATION
Subpart E--Indian Gas
----------------------------------------------------------------------------------------------------------------
1206.172(b)(1)(ii)............... How do I value gas 4 58 232
produced from leases in
an index zone?
(b) Valuing residue gas
and gas before
processing..
(1)(ii) Gas production
that you certify on
Form MMS-4410 * * * is
not processed before it
flows into a pipeline
with an index but which
may be processed later.
----------------------------------------------------------------------------------------------------------------
1206.172(e)(6)(i) and (iii)...... (e) Determining the 3 11 33
minimum value for
royalty purposes of gas
sold beyond the first
index pricing point.
(6)(i) You must report
the safety net price
for each index zone to
ONRR on Form MMS-4411,
Safety Net Report, no
later than June 30
following each calendar
year;.
(iii) ONRR may order you
to amend your safety
net price within one
year from the date your
Form MMS-4411 is due or
is filed, whichever is
later.
----------------------------------------------------------------------------------------------------------------
1206.172(e)(6)(ii)............... (e) Determining the Burden covered under OMB Control Number 1012-0004.
minimum value for Burden covered under Sec. 1210.52.
royalty purposes of gas
sold beyond the first
index pricing point.
(6)(ii) You must pay and
report on Form MMS-2014
additional royalties
due no later than June
30 following each
calendar year.
----------------------------------------------------------------------------------------------------------------
[[Page 76752]]
1206.172(f)(1)(ii), (f)(2), and (f ) Excluding some or 40 1 40
(f)(3). all Tribal leases from
valuation under this
section.
(1) An Indian Tribe may
ask ONRR to exclude
some or all of its
leases from valuation
under this section.
(ii) If an Indian Tribe
requests exclusion from
an index zone for less
than all of its leases,
ONRR will approve the
request only if the
excluded leases may be
segregated into one or
more groups based on
separate fields within
the reservation.
(2) An Indian Tribe may
ask ONRR S to terminate
exclusion of its leases
from valuation under
this section.
(3) The Indian Tribe's
request to ONRR under
either paragraph (f)(1)
or (2) of this section
must be in the form of
a Tribal resolution.
----------------------------------------------------------------------------------------------------------------
1206.173(a)(1)................... How do I calculate the 2 12 24
alternative methodology
for dual accounting?
(a) Electing a dual
accounting method..
(1) * * * You may elect
to perform the dual
accounting calculation
according to either
Sec. 1206.176(a)
(called actual dual
accounting), or
paragraph (b) of this
section (called the
alternative methodology
for dual accounting).
----------------------------------------------------------------------------------------------------------------
1206.173(a)(2)................... (a) Electing a dual Burden covered under Sec. 1206.173(a)(1).
accounting method.
(2) You must make a
separate election to
use the alternative
methodology for dual
accounting for your
Indian leases in each
ONRR S-designated area.
----------------------------------------------------------------------------------------------------------------
1206.174(a)(4)(ii)............... How do I value gas Burden covered under OMB Control Number 1012-0004.
production when an Burden covered under Sec. 1210.52.
index-based method
cannot be used?
(a) Situations in which
an index-based method
cannot be used.
(4)(ii) If the major
portion value is
higher, you must submit
an amended Form MMS-
2014 to ONRR by the due
date specified in the
written notice from
ONRR of the major
portion value.
----------------------------------------------------------------------------------------------------------------
1206.174 (b)(1)(i) and (iii); (b) Arm's-length AUDIT PROCESS. See note.
(b)(2); (d)(2). contracts.
(1)(i) You have the
burden of demonstrating
that your contract is
arm's-length.
(iii) * * * In these
circumstances, ONRR
will notify you and
give you an opportunity
to provide written
information justifying
your value.
(2) ONRR may require you
to certify that your
arm's-length contract
provisions include all
of the consideration
the buyer pays, either
directly or indirectly,
for the gas, residue
gas, or gas plant
product.
(d) Supporting data.....
(2) You must make all
such data available
upon request to the
authorized ONRR or
Indian representatives,
to the Office of the
Inspector General of
the Department, or
other authorized
persons.
----------------------------------------------------------------------------------------------------------------
1206.174(d)...................... (d) Supporting data. If Burden covered under OMB Control Number 1012-0004.
you determine the value
of production under
paragraph (c) of this
section, you must
retain all data
relevant to
determination of
royalty value.
----------------------------------------------------------------------------------------------------------------
[[Page 76753]]
1206.174(f)...................... (f) Value guidance. You 40 1 40
may ask ONRR for
guidance in determining
value. You may propose
a valuation method to
ONRR. Submit all
available data related
to your proposal and
any additional
information ONRR deems
necessary.
----------------------------------------------------------------------------------------------------------------
1206.175(d)(4)................... How do I determine 20 1 20
quantities and
qualities of production
for computing
royalties?
(d)(4) You may request
ONRR approval of other
methods for determining
the quantity of residue
gas and gas plant
products allocable to
each lease.
----------------------------------------------------------------------------------------------------------------
1206.176(b)...................... How do I perform Burden covered under Sec. 1206.173(a)(1).
accounting for
comparison?.
(b) If you are required
to account for
comparison, you may
elect to use the
alternative dual
accounting methodology
provided for in Sec.
1206.173 instead of the
provisions in paragraph
(a) of this section.
----------------------------------------------------------------------------------------------------------------
1206.176(c)...................... (c) * * * If you do not Burden covered under Sec. 1206.172(b)(1)(ii).
perform dual
accounting, you must
certify to ONRR that
gas flows into such a
pipeline before it is
processed.
----------------------------------------------------------------------------------------------------------------
Transportation Allowances
----------------------------------------------------------------------------------------------------------------
1206.177(c)(2) and (c)(3)........ What general Burden covered under Sec. 1206.56(b)(2).
requirements regarding
transportation
allowances apply to me?
(c)(2) If you ask ONRR,
ONRR may approve a
transportation
allowance deduction in
excess of the
limitation in paragraph
(c)(1) of this section.
(3) Your application for
exception (using Form
MMS-4393, Request to
Exceed Regulatory
Allowance Limitation)
must contain all
relevant and supporting
documentation necessary
for ONRR to make a
determination.
----------------------------------------------------------------------------------------------------------------
1206.178(a)(1)(i)................ How do I determine a 1 18 18
transportation
allowance?.
(a) Determining a
transportation
allowance under an
arm's-length contract.
(1)(i) * * * You are
required to submit to
ONRR a copy of your
arm's-length
transportation
contract(s) and all
subsequent amendments
to the contract(s)
within 2 months of the
date ONRR receives your
report which claims the
allowance on the Form
MMS-2014.
----------------------------------------------------------------------------------------------------------------
1206.178(a)(1)(iii).............. (a) Determining a AUDIT PROCESS. See note.
transportation
allowance under an
arm's-length contract.
(1)(iii) If ONRR
determines that the
consideration paid
under an arm's-length
transportation contract
does not reflect the
value of the
transportation because
of misconduct by or
between the contracting
parties * * * In these
circumstances, ONRR
will notify you and
give you an opportunity
to provide written
information justifying
your transportation
costs.
----------------------------------------------------------------------------------------------------------------
1206.178(a)(2)(i) and (ii)....... (a) Determining a 20 1 20
transportation
allowance under an
arm's-length contract.
(2)(i) * * * you cannot
take an allowance for
the costs of
transporting lease
production that is not
royalty bearing without
ONRR approval, or
without lessor approval
on Tribal leases.
(ii) As an alternative
to paragraph (a)(2)(i)
of this section, you
may propose to ONRR a
cost allocation method
based on the values of
the products
transported.
----------------------------------------------------------------------------------------------------------------
[[Page 76754]]
1206.178(a)(3)(i) and (ii)....... (a) Determining a 40 1 40
transportation
allowance under an
arm's-length contract.
(3)(i) If your arm's-
length transportation
contract includes both
gaseous and liquid
products and the
transportation costs
attributable to each
cannot be determined
from the contract, you
must propose an
allocation procedure to
ONRR.
(ii) You are required to
submit all relevant
data to support your
allocation proposal.
----------------------------------------------------------------------------------------------------------------
1206.178(b)(1)(ii)............... (b) Determining a 15 5 75
transportation
allowance under a non-
arm's-length contract
or no contract.
(1)(ii) * * * You must
submit the actual cost
information to support
the allowance to ONRR
on Form MMS-4295, Gas
Transportation
Allowance Report,
within 3 months after
the end of the 12-month
period to which the
allowance applies.
----------------------------------------------------------------------------------------------------------------
1206.178(b)(2)(iv)............... (b) Determining a 20 1 20
transportation
allowance under a non-
arm's-length contract
or no contract.
(2)(iv) You may use
either depreciation
with a return on
undepreciated capital
investment or a return
on depreciable capital
investment. * * * you
may not later elect to
change to the other
alternative without
ONRR approval.
----------------------------------------------------------------------------------------------------------------
1206.178(b)(2)(iv)(A)............ (b) Determining a 20 1 20
transportation
allowance under a non-
arm's-length contract
or no contract.
(2)(iv)(A) * * * Once
you make an election,
you may not change
methods without ONRR
approval.
----------------------------------------------------------------------------------------------------------------
1206.178(b)(3)(i)................ (b) Determining a 40 1 40
transportation
allowance under a non-
arm's-length contract
or no contract.
(3)(i) * * * Except as
provided in this
paragraph, you may not
take an allowance for
transporting a product
that is not royalty
bearing without ONRR
approval.
----------------------------------------------------------------------------------------------------------------
1206.178(b)(3)(ii)............... (b) Determining a 20 1 20
transportation
allowance under a non-
arm's-length contract
or no contract.
(3)(ii) As an
alternative to the
requirements of
paragraph (b)(3)(i) of
