Agency Information Collection Activities: Submitted for Office of Management and Budget Review, Comment Request, 43355-43365 [2012-18079]
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Federal Register / Vol. 77, No. 142 / Tuesday, July 24, 2012 / Notices
MISSOURI
TENNESSEE
Jasper County
Overton County
American Legion Bohannon Post #4, 121 S.
Church St., Livingston, 12000489
Joplin Furniture Company Building, (Historic
Resources of Joplin, Missouri) 702–708
Main St., Joplin, 12000473
St. Louis County
WISCONSIN
Walworth County
Elkhorn Band Shell, Sunset Park, bounded by
Devendorf, W. Centralia, & Park Sts.,
Elkhorn, 12000490
Elkhorn Municipal Building, 9 S. Broad St.,
Elkhorn, 12000491
A request for removal has been made for
the following property:
North Taylor Avenue Historic District,
(Kirkwood MPS) Roughly bounded by
Manchester Rd., E. Adams, & N. Taylor
Aves., Kirkwood, 12000474
NEW YORK
Erie County
American Grain Complex, (Buffalo Grain and
Materials Elevator MPS) 87 Childs St.,
Buffalo, 12000475
Buffalo Meter Company Building, 2917 Main
St., Buffalo, 12000476
SOUTH DAKOTA
43355
Package’’ containing essential
information for potential bidders may be
obtained from the Public Information
Unit, Gulf of Mexico Region, Bureau of
Ocean Energy Management, 1201
Elmwood Park Boulevard, New Orleans,
Louisiana 70123–2394. Telephone: (504)
736–2519.
Agency Contact: Donna Dixon,
Leasing Division Chief, Donna.Dixon@
boem.gov.
Dated: July 13, 2012.
Tommy P. Beaudreau,
Director, Bureau of Ocean Energy
Management.
[FR Doc. 2012–17965 Filed 7–23–12; 8:45 am]
[FR Doc. 2012–17971 Filed 7–23–12; 8:45 am]
Essex County
Coddington County
Appleby Atlas Elevator, 6 mi. S of jct. of US
212 and I 29, Watertown, 90000957
DEPARTMENT OF THE INTERIOR
BILLING CODE 4310–MR–P
BILLING CODE 4312–51–P
VERGENNES (canal boat), Address
Restricted, Westport, 12000477
Office of Natural Resources Revenue
Herkimer County
DEPARTMENT OF THE INTERIOR
[Docket No. ONRR–2011–0021]
Big Moose Community Chapel, 1544 Big
Moose Rd., Eagle Bay, 12000478
Bureau of Ocean Energy Management
(BOEM)
Agency Information Collection
Activities: Submitted for Office of
Management and Budget Review,
Comment Request
Kings County
Notice of Availability of the Proposed
Notice of Sale for Outer Continental
Shelf (OCS) Oil and Gas Lease Sale
229 in the Western Planning Area
(WPA) in the Gulf of Mexico
Wallabout Industrial Historic District,
Clinton, Flushing, Grand, Park,
Washington, & Waverly Aves., Hall, &
Ryerson Sts., Brooklyn, 12000479
Onondaga County
St. Patrick’s Church Complex, 216 N. Lowell
Ave., Syracuse, 12000480
Schoharie County
First Presbyterian Church of Jefferson,
Creamery St. at Park Ave., Jefferson,
12000481
Beecher, James C., House, 560 5th Ave.,
Owego, 12000482
OREGON
Coos County
Marshfield I.O.O.F. Cemetery, 750 Ingersoll
Rd., Coos Bay, 12000483
Morrow County
Hardman I.O.O.F. Lodge Hall, 51186 OR 207,
Hardman, 12000484
SOUTH DAKOTA
Hughes County
Pringle House, 102 N. Jefferson, Pierre,
12000485
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Jones County
Weigandt Barn, 27285 Silver Valley Rd.,
Murdo, 12000486
Pennington County
Chapel in the Hills, 3788 Chapel Ln., Rapid
City, 12000487
Golden Summit Mine Foreman’s Cabin,
24085 Palmer Gulch Rd., Hill City,
12000488
21:06 Jul 23, 2012
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BOEM announces the
availability of the Proposed Notice of
Sale (NOS) for proposed Sale 229 in the
WPA. This sale will be the first under
the Proposed Final OCS Oil and Gas
Leasing Program for 2012–2012. With
regard to oil and gas leasing on the OCS,
the Secretary of the Interior, pursuant to
section 19 of the OCS Lands Act,
provides the affected states the
opportunity to review the proposed
NOS. The proposed NOS sets forth the
proposed terms and conditions of the
sale, including minimum bids, royalty
rates, and rentals.
DATES: Affected states may comment on
the size, timing, and location of
proposed Sale 229 within 60 days
following their receipt of the proposed
NOS. The final NOS will be published
in the Federal Register at least 30 days
prior to the date of bid opening. Bid
opening is currently scheduled for
November 28, 2012.
SUPPLEMENTARY INFORMATION: This
Notice is published pursuant to 30 CFR
556.29(c) as a matter of information to
the public. The proposed NOS for Sale
229 and a ‘‘Proposed Notice of Sale
SUMMARY:
Tioga County
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Bureau of Ocean Energy
Management, Interior.
ACTION: Notice of Availability of the
Proposed Notice of Sale for Proposed
Sale 229.
AGENCY:
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Office of Natural Resources
Revenue, Interior.
ACTION: Notice of an extension of a
currently approved information
collection (OMB Control Number 1012–
0002).
AGENCY:
To comply with the
Paperwork Reduction Act of 1995
(PRA), the Office of Natural Resources
Revenue (ONRR) is notifying the public
that we have submitted to the Office of
Management and Budget (OMB) an
information collection request (ICR) to
renew approval of the paperwork
requirements in the regulations under
30 CFR parts 1202, 1206, and 1207. This
notice also provides the public with a
second opportunity to comment on the
paperwork burden of these regulatory
requirements.
SUMMARY:
Submit written comments on or
before August 23, 2012.
ADDRESSES: Submit written comments
by either FAX (202) 395–5806 or email
(OIRA_Docket@omb.eop.gov) directly to
the Office of Information and Regulatory
Affairs, OMB, Attention: Desk Officer
for the Department of the Interior (OMB
Control Number 1012–0002).
You may submit a copy of your
comments to ONRR by one of the
following methods (please use ‘‘ICR
1012–0002’’ as an identifier in your
comments):
• Electronically, go to https://
www.regulations.gov. In the ‘‘Search’’
box, enter ‘‘ONRR–2011–0021,’’ then
click ‘‘Search.’’ Follow the instructions
DATES:
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Federal Register / Vol. 77, No. 142 / Tuesday, July 24, 2012 / Notices
to submit public comments. ONRR will
post all comments.
• Mail comments to Armand
Southall, Regulatory Specialist, ONRR,
P.O. Box 25165, MS 64000A, Denver,
Colorado 80225–0165.
• Hand-carry comments, or use an
overnight courier service, to the Office
of Natural Resources Revenue, Building
85, Room A–614, Denver Federal
Center, West 6th Ave. and Kipling St.,
Denver, Colorado 80225.
FOR FURTHER INFORMATION CONTACT:
Armand Southall at (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 us to collect the
information. You may also review the
information collection request online at
https://www.reginfo.gov/public/do/
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.
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Note: 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 United
States Department of the Interior is
responsible for mineral resource
development on Federal and Indian
lands and the Outer Continental Shelf
(OCS). Various laws require the
Secretary to manage mineral resource
production from Federal and Indian
lands and the OCS, collect the royalties
and other mineral revenues due, and
distribute the collected funds in
accordance with applicable laws. The
Secretary also has a trust responsibility
to manage Indian lands and seek advice
and information from Indian
beneficiaries. ONRR performs the
minerals revenue management functions
for the Secretary 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 available at https://www.onrr.
gov/Laws_R_D/PublicLawsAMR.htm.
Information collections that we cover
in this ICR are available at 30 CFR part
1202, subparts C and J, which pertain to
royalties; part 1206, subparts B and E,
which govern the valuation of produced
oil and gas from leases on Indian lands;
and part 1207, which pertains to
recordkeeping. Indian Tribes and
individual Indian mineral owners
receive all royalties that generate from
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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 that lessees
remove from their lands. Failure to
collect the data that we describe in this
ICR could result in the undervaluation
of leased minerals on Indian lands. All
reported data 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 that Indian
oil and gas leases (tribal and allotted)
produce, 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 that a lessee determines 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 that
Indian oil and gas leases (tribal and
allotted) produce. 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
produced gas from the lease. Lessees
must elect to perform actual dual
accounting, as we define in 30 CFR
1206.176, or alternative dual
accounting, as we define in 30 CFR
1206.173. Lessees use Form MMS–4410,
Accounting for Comparison [Dual
Accounting], to certify that dual
accounting is not an ONRR requirement
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 they sell gas production
from an Indian oil or gas lease beyond
the first index pricing point. The safety
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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 lesseereported 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 royalty.
Indian Oil and Gas
Lessees must use Form MMS–4393,
Request to Exceed Regulatory
Allowance Limitation, for both Federal
and Indian leases. Most of the burden
hours occur on Federal leases; therefore,
this is an ONRR-approved form under
ICR 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.
Summary
We are requesting 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
that it receives and does not collect
items of a sensitive nature. The
requirement to report is mandatory for
Form MMS–4410, Accounting for
Comparison [Dual Accounting], and for
Form MMS–4411, Safety Net Report,
under certain circumstances. For all
other forms in this collection, the
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requirement to report is mandatory 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: 2,269
hours.
We have not included in our
estimates certain requirements that
occur in the normal course of business
and that we consider usual and
customary. The following chart shows
the estimated burden hours by CFR
section and paragraph:
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 .........................
Burden covered under OMB Control Number
1012–0004. Burden covered under § 1210.52.
Oil volumes are to be reported in barrels of clean oil of 42
standard U.S. gallons (231 cubic inches each) at 60 °F
* * *.
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
1206.56(b)(2) ..........................
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 * * *.
4
1
4
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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1206.57(a)(1)(i) .......................
(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.
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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Annual
burden hours
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.
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
* * *.
20
1
20
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 * * *.
40
1
40
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) ..........................
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Reporting and recordkeeping requirement
(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) ..........................
(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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Hour burden
Average
number of
annual
responses
30 CFR
Burden covered under § 1206.57(a)(3).
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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Average
number of
annual
responses
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 * * *.
4
1
4
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).
4
1
4
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.
AUDIT PROCESS. See note.
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) ......................
(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) .....................
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Reporting and recordkeeping requirement
(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 * * *.
Burden covered under § 1206.57(c)(2)(i).
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.
AUDIT PROCESS. See note.
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Hour burden
Annual
burden hours
30 CFR
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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
30 CFR
Reporting and recordkeeping requirement
Average
number of
annual
responses
Hour burden
Annual
burden hours
(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 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 * * *.
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 * * *.
Burden covered under OMB Control Number
1012–0004. Burden covered under § 1210.52.
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) ........
(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 * * *.
1206.172(f)(1)(ii), (f)(2), and
(f)(3).
sroberts on DSK5SPTVN1PROD with NOTICES
1206.172(b)(1)(ii) ....................
(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 * * *.
40
1
40
1206.173(a)(1) ........................
How do I calculate the alternative methodology for dual accounting?
2
12
24
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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
30 CFR
Reporting and recordkeeping requirement
Hour burden
Average
number of
annual
responses
Annual
burden hours
(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).
(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 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 * * *.
Burden covered under OMB Control Number
1012–0004. Burden covered under § 1210.52.
1206.174(b)(1)(i) and (iii);
(b)(2); (d)(2).
(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.
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
* * *.
40
1
40
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 * * *.
20
1
20
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) .............................
sroberts on DSK5SPTVN1PROD with NOTICES
1206.173(a)(2) ........................
(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
1206.177(c)(2) and (c)(3) .......
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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 * * *.
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30 CFR
Reporting and recordkeeping requirement
Average
number of
annual
responses
Hour burden
Annual
burden hours
(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.
How do I determine a transportation allowance? ..................
(a) Determining a transportation allowance under an arm’slength 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.
1
1206.178(a)(1)(iii) ...................
(a) Determining a transportation allowance under an arm’slength 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.
AUDIT PROCESS. See note.
1206.178(a)(2)(i) and (ii) .........
(a) Determining a transportation allowance under an arm’slength 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 * * *.
1206.178(a)(3)(i) and (ii) .........
18
18
20
1
20
(a) Determining a transportation allowance under an arm’slength 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 * * *.
40
1
40
1206.178(b)(1)(ii) ....................
(b) Determining a transportation allowance under a nonarm’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 * * *.
15
5
75
1206.178(b)(2)(iv) ...................
sroberts on DSK5SPTVN1PROD with NOTICES
1206.178(a)(1)(i) .....................
(b) Determining a transportation allowance under a nonarm’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 nonarm’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 nonarm’s-length contract or no contract.
40
1
40
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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
30 CFR
Reporting and recordkeeping requirement
Average
number of
annual
responses
Hour burden
Annual
burden hours
(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 transportation allowance under a nonarm’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 nonarm’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 * * *.
AUDIT PROCESS. See note.
1206.178(d)(2), (e), and (f)(1)
(d) Reporting your transportation allowance. .........................
Burden covered under OMB Control Number
1012–0004. Burden covered under § 1210.52.
(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.
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’s-length 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.
1
1206.180(a)(1)(iii) ...................
sroberts on DSK5SPTVN1PROD with NOTICES
1206.180(a)(1)(i) .....................
(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.
AUDIT PROCESS. See note.
1206.180(a)(3) ........................
(a) Determining a processing allowance if you have an
arm’s-length processing contract.
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Federal Register / Vol. 77, No. 142 / Tuesday, July 24, 2012 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
30 CFR
Reporting and recordkeeping requirement
Hour burden
Average
number of
annual
responses
Annual
burden hours
(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 * * *.
1206.180(b)(1)(ii) ....................
(b) Determining a processing allowance if you have a nonarm’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 * * *.
100
12
1,200
1206.180(b)(2)(iv) ...................
(b) Determining a processing allowance if you have a nonarm’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.
20
1
20
1206.180(b)(2)(iv)(A) ..............
(b) Determining a processing allowance if you have a nonarm’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 nonarm’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 ...............................
Burden covered under OMB Control Number
1012–0004. Burden covered under § 1210.52.
(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 * * *.
sroberts on DSK5SPTVN1PROD with NOTICES
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.
40
1
PART 1207—SALES AGREEMENTS OR CONTRACTS GOVERNING THE DISPOSAL OF LEASE PRODUCTS
Subpart A—General Provisions
1207.4(b) .................................
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 * * *.
AUDIT PROCESS. See note.
1207.5 .....................................
Contract and sales agreement retention ................................
AUDIT PROCESS. See note.
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Federal Register / Vol. 77, No. 142 / Tuesday, July 24, 2012 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
30 CFR
Reporting and recordkeeping requirement
Hour burden
Average
number of
annual
responses
Annual
burden hours
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 .............
.................................................................................................
........................
148
2,269
sroberts on DSK5SPTVN1PROD 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 does not have 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 in order 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 that the agency collects;
and (d) minimize the burden on the
respondents, including the use of
automated collection techniques or
other forms of information technology.
To comply with the public
consultation process, ONRR published a
notice in the Federal Register on
December 8, 2011 (76 FR 76746),
announcing that we would submit this
ICR to OMB for approval. (We published
an additional notice in the Federal
Register on December 15, 2011 (76 FR
78033) correcting the response date for
comments.) The notice provided the
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required 60-day comment period. We
received no comments in response to
the notice.
If you wish to comment in response
to this notice, you may send your
comments to the offices that we listed
under the ADDRESSES section of this
notice. OMB has up to 60 days to
approve or disapprove the information
collection, but they may respond after
30 days. Therefore, to ensure maximum
consideration, OMB should receive
public comments by August 23, 2012.
Public Comment Policy: We will post
all comments, including names and
addresses of respondents, at https://
www.regulations.gov. Before including
your address, phone number, email
address, or other personal identifying
information in your comment, you
should be aware that we may make your
entire comment—including your
personal identifying information—
publicly available at any time. While
you can ask us, in your comment, to
withhold your personal identifying
information from public view, we
cannot guarantee that we will be able to
do so.
Office of the Secretary, Information
Collection Clearance Officer: Laura
Dorey (202) 208–2654.
Dated: July 17, 2012.
Gregory J. Gould,
Director, Office of Natural Resources
Revenue.
[FR Doc. 2012–18079 Filed 7–23–12; 8:45 am]
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DEPARTMENT OF JUSTICE
Office of Justice Programs
[OMB Number 1121–0184]
Agency Information Collection
Activities: Proposed Collection;
Comments Requested; Reinstatement,
With Change, of Previously Approved
Collection for Which Approval Has
Expired: School Crime Supplement
(SCS) to the National Crime
Victimization Survey
60-day Notice of Information
Collection Under Review.
ACTION:
The Department of Justice (DOJ),
Office of Justice Programs, Bureau of
Justice Statistics will be submitting the
following information collection request
to the Office of Management and Budget
(OMB) for review and approval in
accordance with the Paperwork
Reduction Act of 1995. The proposed
information collection is published to
obtain comments from the public and
affected agencies. Comments are
encouraged and will be accepted for
‘‘sixty days’’ until September 24, 2012.
This process is conducted in accordance
with 5 CFR 1320.10.
If you have comments especially on
the estimated public burden or
associated response time, suggestions,
or need a copy of the proposed
information collection instrument with
instructions or additional information,
please contact Jennifer Truman,
Statistician, Bureau of Justice Statistics,
Office of Justice Programs, Department
of Justice, 810 7th Street NW.,
Washington, DC 20531, or facsimile
(202) 307–1463.
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]]>Agencies
[Federal Register Volume 77, Number 142 (Tuesday, July 24, 2012)]
[Notices]
[Pages 43355-43365]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-18079]
-----------------------------------------------------------------------
DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue
[Docket No. ONRR-2011-0021]
Agency Information Collection Activities: Submitted for Office of
Management and Budget Review, Comment Request
AGENCY: Office of Natural Resources Revenue, Interior.
ACTION: Notice of an extension of a currently approved information
collection (OMB Control Number 1012-0002).
-----------------------------------------------------------------------
SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), the
Office of Natural Resources Revenue (ONRR) is notifying the public that
we have submitted to the Office of Management and Budget (OMB) an
information collection request (ICR) to renew approval of the paperwork
requirements in the regulations under 30 CFR parts 1202, 1206, and
1207. This notice also provides the public with a second opportunity to
comment on the paperwork burden of these regulatory requirements.
DATES: Submit written comments on or before August 23, 2012.
ADDRESSES: Submit written comments by either FAX (202) 395-5806 or
email (OIRA_Docket@omb.eop.gov) directly to the Office of Information
and Regulatory Affairs, OMB, Attention: Desk Officer for the Department
of the Interior (OMB Control Number 1012-0002).
You may submit a copy of your comments to ONRR by one of the
following methods (please use ``ICR 1012-0002'' as an identifier in
your comments):
Electronically, go to https://www.regulations.gov. In the
``Search'' box, enter ``ONRR-2011-0021,'' then click ``Search.'' Follow
the instructions
[[Page 43356]]
to submit public comments. ONRR will post all comments.
Mail comments to Armand Southall, Regulatory Specialist,
ONRR, P.O. Box 25165, MS 64000A, Denver, Colorado 80225-0165.
Hand-carry comments, or use an overnight courier service,
to the Office of Natural Resources Revenue, Building 85, Room A-614,
Denver Federal Center, West 6th Ave. and Kipling St., Denver, Colorado
80225.
FOR FURTHER INFORMATION CONTACT: Armand Southall at (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 us to collect the information. You
may also review the information collection request online at https://www.reginfo.gov/public/do/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: 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 United States Department of the
Interior is responsible for mineral resource development on Federal and
Indian lands and the Outer Continental Shelf (OCS). Various laws
require the Secretary to manage mineral resource production from
Federal and Indian lands and the OCS, collect the royalties and other
mineral revenues due, and distribute the collected funds in accordance
with applicable laws. The Secretary also has a trust responsibility to
manage Indian lands and seek advice and information from Indian
beneficiaries. ONRR performs the minerals revenue management functions
for the Secretary 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 available
at https://www.onrr.gov/Laws_R_D/PublicLawsAMR.htm.
Information collections that we cover in this ICR are available at
30 CFR part 1202, subparts C and J, which pertain to royalties; part
1206, subparts B and E, which govern the valuation of produced oil and
gas from leases on Indian lands; and part 1207, which pertains to
recordkeeping. Indian Tribes and individual Indian mineral owners
receive all royalties that generate 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 that lessees remove from their lands. Failure to collect
the data that we describe in this ICR could result in the
undervaluation of leased minerals on Indian lands. All reported data 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 that Indian oil and gas leases (tribal
and allotted) produce, 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 that a lessee determines 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 that Indian oil and gas leases
(tribal and allotted) produce. 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 produced gas from the lease.
Lessees must elect to perform actual dual accounting, as we define in
30 CFR 1206.176, or alternative dual accounting, as we define in 30 CFR
1206.173. Lessees use Form MMS-4410, Accounting for Comparison [Dual
Accounting], to certify that dual accounting is not an ONRR requirement
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 they sell gas production from an Indian oil or gas lease
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 royalty.
Indian Oil and Gas
Lessees must use Form MMS-4393, Request to Exceed Regulatory
Allowance Limitation, for both Federal and Indian leases. Most of the
burden hours occur on Federal leases; therefore, this is an ONRR-
approved form under ICR 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.
Summary
We are requesting 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 that it receives and does not collect items of a sensitive
nature. The requirement to report is mandatory for Form MMS-4410,
Accounting for Comparison [Dual Accounting], and for Form MMS-4411,
Safety Net Report, under certain circumstances. For all other forms in
this collection, the
[[Page 43357]]
requirement to report is mandatory 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: 2,269
hours.
We have not included in our estimates certain requirements that
occur in the normal course of business and that we consider 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 Reporting and recordkeeping Hour burden of annual Annual burden
requirement responses hours
----------------------------------------------------------------------------------------------------------------
PART 1202--ROYALTIES
Subpart C--Federal and Indian Oil
----------------------------------------------------------------------------------------------------------------
1202.101........................... Standards for reporting and Burden covered under OMB Control Number 1012-
paying royalties. 0004. Burden covered under Sec. 1210.52.
Oil volumes are to be
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-
volume of production for 0004. Burden covered under Sec. 1210.52.
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 to Burden covered under OMB Control Number 1012-
report and pay royalties 0004. Burden covered under Sec. 1210.52.
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 allowances--
general.
(b)(2) Upon request of a 4 1 4
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)
transportation contracts. and (iii).
(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.
----------------------------------------------------------------------------------------------------------------
[[Page 43358]]
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.
----------------------------------------------------------------------------------------------------------------
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 no Burden covered under Sec. 1206.57(c)(2)(i)
contract. and (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 no Burden covered under OMB Control Number 1012-
contract. 0004. 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 no 20 1 20
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 no 20 1 20
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 no 40 1 40
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 no 20 1 20
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 no 20 1 20
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 no 20 1 20
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 43359]]
1206.57(c)(1)(i)................... (c) Reporting requirements. 4 1 4
(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. 4 1 4
(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. AUDIT PROCESS. See note.
(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. 6 1 6
(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 requirements. 6 1 6
(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 requirements. Burden covered under Sec. 1206.57(c)(2)(i).
(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 * *
*.
----------------------------------------------------------------------------------------------------------------
1206.57(c)(2)(v)................... (c) Reporting requirements. Burden covered under Sec. 1206.57(c)(2)(i).
(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 requirements. AUDIT PROCESS. See note.
(2) Non-arm's-length or no
contract..
[[Page 43360]]
(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 requirements. Burden covered under OMB Control Number 1012-
(4) Transportation 0004. Burden covered under Sec. 1210.52.
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 produced 4 58 232
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 minimum 3 11 33
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 minimum Burden covered under OMB Control Number 1012-
value for royalty purposes 0004. Burden covered under Sec. 1210.52.
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 * * *.
-----------------------------------------------
1206.172(f)(1)(ii), (f)(2), and (f) Excluding some or all 40 1 40
(f)(3). 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?
[[Page 43361]]
(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-
production when an index- 0004. Burden covered under Sec. 1210.52.
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 contracts. AUDIT PROCESS. See note.
(b)(2); (d)(2). (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 you Burden covered under OMB Control Number 1012-
determine the value of 0004.
production under paragraph
(c) of this section, you
must retain all data
relevant to determination
of royalty value.
----------------------------------------------------------------------------------------------------------------
1206.174(f)........................ (f) Value guidance. You may 40 1 40
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 accounting Burden covered under Sec. 1206.173(a)(1).
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.
perform dual accounting, 1206.172(b)(1)(ii).
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 requirements Burden covered under Sec. 1206.56(b)(2).
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 * *
*.
[[Page 43362]]
(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 * * *.
----------------------------------------------------------------------------------------------------------------
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.
[[Page 43363]]
(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
this section, you may
propose to ONRR a cost
allocation method based on
the values of the products
transported * * *.
----------------------------------------------------------------------------------------------------------------
1206.178(b)(5)..................... (b) Determining a 40 1 40
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 * * *.
----------------------------------------------------------------------------------------------------------------
1206.178(d)(1)..................... (d) Reporting your AUDIT PROCESS. See note.
transportation allowance..
(1) If ONRR requests, you
must submit all data used
to determine your
transportation allowance *
* *.
----------------------------------------------------------------------------------------------------------------
1206.178(d)(2), (e), and (f)(1).... (d) Reporting your Burden covered under OMB Control Number 1012-
transportation allowance.. 0004. Burden covered under Sec. 1210.52.
(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.
----------------------------------------------------------------------------------------------------------------
Processing Allowances
----------------------------------------------------------------------------------------------------------------
1206.180(a)(1)(i).................. How do I determine an 1 2 2
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's-
length 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 AUDIT PROCESS. See note.
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 40 1 40
processing allowance if
you have an arm's-length
processing contract.
[[Page 43364]]
(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 * * *.
----------------------------------------------------------------------------------------------------------------
1206.180(b)(1)(ii)................. (b) Determining a 100 12 1,200
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 * * *.
----------------------------------------------------------------------------------------------------------------
1206.180(b)(2)(iv)................. (b) Determining a 20 1 20
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).............. (b) Determining a 20 1 20
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 * * *.
----------------------------------------------------------------------------------------------------------------
1206.180(b)(3)..................... (b) Determining a 20 1 20
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.
----------------------------------------------------------------------------------------------------------------
1206.180(c)(1)..................... (c) Reporting your AUDIT PROCESS. See note.
processing allowance.
(1) If ONRR requests, you
must submit all data used
to determine your
processing allowance * * *.
----------------------------------------------------------------------------------------------------------------
1206.180(c)(2) and (d)............. (c) Reporting your Burden covered under OMB Control Number 1012-
processing allowance. 0004. Burden covered under Sec. 1210.52.
(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
* * *.
----------------------------------------------------------------------------------------------------------------
1206.181(c)........................ How do I establish 40 1 40
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.
----------------------------------------------------------------------------------------------------------------
PART 1207--SALES AGREEMENTS OR CONTRACTS GOVERNING THE DISPOSAL OF LEASE PRODUCTS
Subpart A--General Provisions
----------------------------------------------------------------------------------------------------------------
1207.4(b).......................... Contracts made pursuant to AUDIT PROCESS. See note.
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 * * *.
----------------------------------------------------------------------------------------------------------------
1207.5............................. Contract and sales AUDIT PROCESS. See note.
agreement retention.
[[Page 43365]]
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................... ........................... .............. 148 2,269
----------------------------------------------------------------------------------------------------------------
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 ``non-hour'' cost burdens.
Public Disclosure Statement: The PRA (44 U.S.C. 3501 et seq.)
provides that an agency may not conduct or sponsor, and a person does
not have 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 in
order 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 that
the agency collects; and (d) minimize the burden on the respondents,
including the use of automated collection techniques or other forms of
information technology.
To comply with the public consultation process, ONRR published a
notice in the Federal Register on December 8, 2011 (76 FR 76746),
announcing that we would submit this ICR to OMB for approval. (We
published an additional notice in the Federal Register on December 15,
2011 (76 FR 78033) correcting the response date for comments.) The
notice provided the required 60-day comment period. We received no
comments in response to the notice.
If you wish to comment in response to this notice, you may send
your comments to the offices that we listed under the ADDRESSES section
of this notice. OMB has up to 60 days to approve or disapprove the
information collection, but they may respond after 30 days. Therefore,
to ensure maximum consideration, OMB should receive public comments by
August 23, 2012.
Public Comment Policy: We will post all comments, including names
and addresses of respondents, at https://www.regulations.gov. Before
including your address, phone number, email address, or other personal
identifying information in your comment, you should be aware that we
may make your entire comment--including your personal identifying
information--publicly available at any time. While you can ask us, in
your comment, to withhold your personal identifying information from
public view, we cannot guarantee that we will be able to do so.
Office of the Secretary, Information Collection Clearance Officer:
Laura Dorey (202) 208-2654.
Dated: July 17, 2012.
Gregory J. Gould,
Director, Office of Natural Resources Revenue.
[FR Doc. 2012-18079 Filed 7-23-12; 8:45 am]
BILLING CODE 4310-T2-P
