Agency Information Collection Activities: Submitted for Office of Management and Budget Review; Comment Request, 72099-72109 [2013-27084]

Download as PDF Federal Register / Vol. 78, No. 231 / Monday, December 2, 2013 / Notices Persons interested in reviewing environmental documents for the proposals listed above or obtaining information about the SEAs and FONSIs prepared by the Gulf of Mexico OCS Region are encouraged to contact BOEM at the address or telephone listed in the FOR FURTHER INFORMATION CONTACT section. Dated: November 4, 2013. John L. Rodi, Regional Director, Gulf of Mexico OCS Region. FOR FURTHER INFORMATION CONTACT: [FR Doc. 2013–28728 Filed 11–29–13; 8:45 am] BILLING CODE 4310–MR–P DEPARTMENT OF THE INTERIOR Office of Natural Resources Revenue [Docket No. ONRR–2012–0006; DS63610300 DR2PS0000.CH7000 134D0102R2] Agency Information Collection Activities: Submitted for Office of Management and Budget Review; Comment Request Office of the Secretary, Office of Natural Resources Revenue (ONRR). ACTION: Notice of a revision of currently approved information collection (OMB Control Number 1012–0005). 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 title 30, Code of Federal Regulations (CFR), parts 1202, 1204, and 1206. This ICR pertains to (1) Federal oil and gas valuation regulations, which include transportation and processing regulatory allowance limits; and (2) accounting and auditing relief for marginal properties. This ICR also includes Form ONRR–4393, Request to Exceed Regulatory Allowance Limitation. Effective January 1, 2014, ONRR will discontinue the information collection requirements of the Stripper Oil royalty rate reductions in this ICR. The revised title of this ICR is ‘‘Federal Oil and Gas Valuation—30 CFR Parts 1202, 1204, and 1206.’’ DATES: OMB has up to 60 days to approve or disapprove the information collection request but may respond after 30 days; therefore, you should submit your public comments to OMB by January 2, 2014 for the assurance of consideration. ADDRESSES: Submit comments to the Office of Information and Regulatory emcdonald on DSK67QTVN1PROD with NOTICES SUMMARY: VerDate Mar<15>2010 20:41 Nov 29, 2013 Jkt 232001 Affairs, Office of Management and Budget, Attention: Desk Officer for the Department of the Interior (1012–0005), by telefax at (202) 395–5806 or via email to OIRA_Submission@omb.eop.gov. Also, please send a copy of your comments to Armand Southall, Regulatory Specialist, Office of Natural Resources Revenue, P.O. Box 25165, MS 61030A, Denver, Colorado 80225. Please reference ‘‘ICR 1012–0005’’ in your comments. Armand Southall, Regulatory Specialist, email Armand.Southall@onrr.gov. You may also contact Mr. Southall to obtain copies, at no cost, of (1) The ICR, (2) any associated form, and (3) the regulations that require us to collect the information. To see a copy of the entire ICR submitted to OMB, go to http:// www.reginfo.gov/public/PRAMain and select ‘‘Information Collection Review,’’ then select ‘‘Department of the Interior’’ in the drop-down box under ‘‘Currently Under Review.’’ SUPPLEMENTARY INFORMATION: Title: Federal Oil and Gas Valuation— 30 CFR Parts 1202, 1204, and 1206. OMB Control Number: 1012–0005. Bureau Form Number: Form ONRR– 4393. Abstract: The Secretary of the United States Department of the Interior is responsible for overseeing mineral resource development on Federal and Indian lands and the Outer Continental Shelf (OCS). The Secretary’s responsibility, under various laws, is to manage mineral resource production from Federal and Indian lands and the OCS, collect the royalties and other mineral revenues due, and distribute the funds collected under those laws. We have posted those laws pertaining to mineral leases on Federal and Indian lands and the OCS at http:// www.onrr.gov/Laws_R_D/ PublicLawsAMR.htm. Effective October 1, 2010, ONRR reorganized and transferred our regulations from chapter II to chapter XII in title 30 CFR, resulting in a change to our citations. You can find the information collections covered in this ICR at 30 CFR part 1202, subparts C and D, which pertain to Federal oil and gas royalties; part 1204, subpart C, which pertains to accounting and auditing relief for marginal properties; and part 1206, subparts C and D, which pertain to Federal oil and gas product valuation. I. General Information When a company or an individual enters into a lease to explore, develop, produce, and dispose of minerals from Federal or Indian lands, that company PO 00000 Frm 00040 Fmt 4703 Sfmt 4703 72099 or individual agrees to pay the lessor a share in a value of production from the leased lands. The lessee, or designee, must report various kinds of information to the lessor relative to the disposition of the leased minerals. Such information is generally available within the records of the lessee or others involved in developing, transporting, processing, purchasing, or selling of such minerals. II. Information Collections ONRR uses the information that we collect in this ICR to ensure that lessees accurately value and appropriately pay royalties on oil and gas produced from Federal onshore and offshore leases. Please refer to the chart for all reporting requirements and associated burden hours. All data submitted is subject to subsequent audit and adjustment. A. Federal Oil and Gas Valuation Regulations The valuation regulations at 30 CFR part 1206, subparts C and D, mandate that lessees collect and/or submit information used to value their Federal oil and gas, including (1) transportation and processing allowances and (2) regulatory allowance limit information. Lessees report certain data on Form ONRR–2014, Report of Sales and Royalty Remittance (OMB Control Number 1012–0004). The information that we request is the minimum necessary to carry out our mission and places the least possible burden on respondents. If ONRR does not collect this information, both Federal and State governments may incur a loss of royalties. Transportation and Processing Regulatory Allowance Limits: Lessees may deduct the reasonable, actual costs of transportation and processing from Federal royalties. The lessees report these allowances on Form ONRR–2014. For oil and gas, regulations establish the allowable limit on transportation allowance deductions at 50 percent of the value of the oil or gas. For gas only, regulations establish the allowable limit on processing allowance deductions at 662⁄3 percent of the value of each gas plant product. Request to Exceed Regulatory Allowance Limitation, Form ONRR– 4393: Lessees may request to exceed regulatory limitations. Upon proper application from the lessee, ONRR may approve oil or gas transportation allowance in excess of 50 percent or gas processing allowance in excess of 662⁄3 percent on Federal leases. Lessees must complete and submit Form ONRR–4393, including a letter and supporting documentation, for both Federal and E:\FR\FM\02DEN1.SGM 02DEN1 72100 Federal Register / Vol. 78, No. 231 / Monday, December 2, 2013 / Notices Indian leases to request to exceed allowance limitations. This ICR covers only Federal leases; therefore, we have not included burden hours of Form ONRR–4393 for Indian leases in this ICR. We include burden hours of Form ONRR–4393 for Indian leases in OMB Control Number 1012–0002. B. Accounting and Auditing Relief for Marginal Properties In 2004, we amended our regulations to comply with section 7 of the Federal Oil and Gas Royalty Simplification and Fairness Act of 1996. The regulations provide guidance for lessees and designees seeking accounting and auditing relief for qualifying Federal marginal properties. Under the regulations, both ONRR and the State concerned must approve any relief granted for a marginal property. C. Stripper Oil Royalty Rate Reduction Program Under 43 CFR 3103.4–2, the Bureau of Land Management (BLM), the surface management agency for Federal onshore leases, established the Stripper Oil Royalty Rate Reduction Program (Stripper Oil Program). ONRR, who administered the Stripper Oil Program for BLM, approved royalty rate reductions for operators of stripper oil properties for applicable sales periods from October 1, 1992, through January 31, 2006. Effective February 1, 2006, BLM terminated the reduced royalty rates under this program. On October 6, 2010, BLM published a final rule (75 FR 61624) that removed this citation from their regulations. This change is not currently reflected in title 30 CFR, chapter XII. For production through January 31, 2006, lessees submitted Form MMS– 4377, Stripper Royalty Rate Reduction Notification, to notify ONRR of royalty rate changes. Although BLM terminated the royalty rate reductions, ONRR continues to verify previously submitted notifications and may require the operator to submit an amended Form ONRR–4377 through December 31, 2013. However, effective January 1, 2014, ONRR will discontinue the Stripper Oil Program; therefore, ONRR will not request OMB approval for the Stripper Oil information collection requirements in this ICR. III. OMB Approval We will request OMB approval to continue to collect, from companies and/or lessees and designees, information used (1) to value their Federal oil and gas, including (a) transportation and processing allowances and (b) the request to exceed regulatory allowance limitation and (2) to request accounting and auditing relief approval for qualifying Federal marginal properties. If ONRR does not collect this information, this would limit the Secretary’s ability to discharge fiduciary duties and may also result in loss of royalty payments. ONRR protects the proprietary information that we receive, and we do not collect items of a sensitive nature. ONRR requires lessees to respond to information collections relating to valuing Federal oil and gas, including (a) transportation and processing allowances and (b) the request to exceed regulatory allowance limit information [Form ONRR–4393]. ONRR also requires that lessees submit the allowance information and form to obtain benefits for claiming allowances on Form ONRR–2014. In addition, ONRR requires lessees to respond to information collections in regards to requesting approval for accounting and auditing relief. Frequency: Annually and on occasion. Estimated Number and Description of Respondents: 120 Federal lessees/ designees and 7 States for Federal oil and gas. Estimated Annual Reporting and Recordkeeping ‘‘Hour’’ Burden: 9,198 hours. We have not included in our estimates certain requirements performed in the normal course of business and considered as usual and customary. We display the estimated annual burden hours by CFR section and paragraph in the following chart: RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS 30 CFR 1202, 1204, and 1206 Reporting and recordkeeping requirement Hour burden Average number of annual responses Annual burden hours PART 1202—ROYALTIES Subpart C—Federal and Indian Oil 1202.101 ................................. Standards for reporting and paying royalties. Oil volumes are to be reported in barrels of clean oil of 42 standard U.S. gallons (231 cubic inches each) at 60 °F. . . . Burden covered under OMB Control Number 1012–0004. Subpart D—Federal Gas emcdonald on DSK67QTVN1PROD with NOTICES 1202.152(a) and (b) ................ Standards for reporting and paying royalties on gas ...... Burden covered under OMB Control Number 1012–0004. (a)(1) If you are responsible for reporting production or royalties you must: (i) Report gas volumes and British thermal unit (Btu) heating values, if applicable, under the same degree of water saturation; (ii) Report gas volumes in units of 1,000 cubic feet (mcf); and (iii) Report gas volumes and Btu heating value at a standard pressure base of 14.73 pounds per square inch absolute (psia) and a standard temperature base of 60 °F . . . (b) Residue gas and gas plant product volumes shall be reported as specified in this paragraph. . . . VerDate Mar<15>2010 20:41 Nov 29, 2013 Jkt 232001 PO 00000 Frm 00041 Fmt 4703 Sfmt 4703 E:\FR\FM\02DEN1.SGM 02DEN1 72101 Federal Register / Vol. 78, No. 231 / Monday, December 2, 2013 / Notices RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued 30 CFR 1202, 1204, and 1206 Reporting and recordkeeping requirement Average number of annual responses Hour burden Annual burden hours PART 1204—ALTERNATIVES FOR MARGINAL PROPERTIES Subpart C—Accounting and Auditing Relief 1204.202(b)(1) ........................ What is the cumulative royalty reports and payments relief option? (b) To use the cumulative royalty reports and payments relief option, you must do all of the following: (1) Notify ONRR in writing by January 31 of the calendar year for which you begin taking your relief. . . . 1204.202(b)(2) and (b)(3) ....... (b)(2) Submit your royalty report and payment . . . by the end of February of the year following the calendar year for which you reported annually. . . . If you have an estimated payment on file, you must submit your royalty report and payment by the end of March of the year following the calendar year for which you reported annually; (3) Use the sales month prior to the month that you submit your annual report and payment . . . for the entire previous calendar year’s production for which you are paying annually. . . . (b)(4) Report one line of cumulative royalty information on Form ONRR–2014 for the calendar year . . . And (5) Report allowances on Form ONRR–2014 on the same annual basis as the royalties for your marginal property production. 1204.202(b)(4), (b)(5), (c), (d)(1), (d)(2), (e)(1), and (e)(2). emcdonald on DSK67QTVN1PROD with NOTICES 1204.203(b), 1204.205(a) and (b), and 1204.206(a)(3)(i) and (b)(1). 1204.208 (c)(1), (d)(1), and (e) 1204.209(b) ............................. VerDate Mar<15>2010 20:41 Nov 29, 2013 40 PO 00000 Frm 00042 Fmt 4703 Sfmt 4703 40 Burden covered under OMB Control Number 1012–0004. Burden covered under OMB Control Number 1012–0004. (c) If you do not pay your royalty by the date due in paragraph (b) of this section, you will owe late payment interest . . . from the date your payment was due under this section until the date ONRR receives it. . . . (d) If you take relief you are not qualified for, you may be liable for civil penalties. Also you must: (1) Pay ONRR late payment interest determined under 30 CFR 1218.54 . . .(2) Amend your Form ONRR–2014 . . . (e) If you dispose of your ownership interest in a marginal property for which you have taken relief . . . you must: (1) Report and pay royalties for the portion of the calendar year for which you had an ownership interest; and (2) Make the report and payment by the end of the month after you dispose of the ownership interest in the marginal property. If you do not report and pay timely, you will owe interest . . . from the date the payment was due. . . . What is the other relief option? .......................................... (b) You must request approval from ONRR . . . before taking relief under this option. May a State decide that it will or will not allow one or both of the relief options under this subpart? (c) If a State decides . . . that it will or will not allow one or both of the relief options . . . within 30 days . . . the State must: (1) Notify the Director for Office of Natural Resources Revenue, in writing, of its intent to allow or not allow one or both of the relief options . . . (d) If a State decides in advance . . . that it will not allow one or both of the relief options . . . the State must: (1) Notify the Director for Office of Natural Resources Revenue, in writing, of its intent to allow one or both of the relief options . . . (e) If a State does not notify ONRR . . . the State will be deemed to have decided not to allow either of the relief options. . . What if a property ceases to qualify for relief obtained under this subpart? Jkt 232001 1 E:\FR\FM\02DEN1.SGM 200 1 200 40 7 280 6 1 6 02DEN1 72102 Federal Register / Vol. 78, No. 231 / Monday, December 2, 2013 / Notices RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued 30 CFR 1202, 1204, and 1206 Reporting and recordkeeping requirement Average number of annual responses Hour burden Annual burden hours (b) If a property is no longer eligible for relief . . . the relief for the property terminates as of December 31 of that calendar year. You must notify ONRR in writing by December 31 that the relief for the property has terminated. . . 1204.210(c) and (d) ................ What if a property is approved as part of a nonqualifying agreement? Burden covered under OMB Control Number 1012–0004. (c) . . . the volumes on which you report and pay royalty . . . must be amended to reflect all volumes produced on or allocated to your lease under the nonqualifying agreement as modified by BLM. . . . Report and pay royalties for your production using the procedures in § 1204.202(b). (d) If you owe additional royalties based on the retroactive agreement approval and do not pay your royalty by the date due in § 1204.202(b), you will owe late payment interest determined under § 1218.54 from the date your payment was due under § 1204.202(b)(2) until the date ONRR receives it. 1204.214(b)(1) and (b)(2) ....... Is minimum royalty due on a property for which I took relief? Burden covered under OMB Control Number 1012–0004. (b) If you pay minimum royalty on production from a marginal property during a calendar year for which you are taking cumulative royalty reports and payment relief, and: (1) The annual payment you owe under this subpart is greater than the minimum royalty you paid, you must pay the difference between the minimum royalty you paid and your annual payment due under this subpart; or (2) The annual payment you owe under this subpart is less than the minimum royalty you paid, you are not entitled to a credit because you must pay at least the minimum royalty amount on your lease each year. Accounting and Auditing Relief Subtotal ............................................................................... ........................ 10 526 45 5 225 8 2 16 Part 1206—Product Valuation Subpart C—Federal Oil 1206.102(e)(1) ........................ emcdonald on DSK67QTVN1PROD with NOTICES 1206.103(a)(1), (a)(2), and (a)(3). 1206.103(a)(4) ........................ VerDate Mar<15>2010 20:41 Nov 29, 2013 How do I calculate royalty value for oil that I or my affiliate sell(s) under an arm’s-length contract? AUDIT PROCESS. See note. (e) If you value oil under paragraph (a) of this section: (1) ONRR may require you to certify that your or your affiliate’s arm’s-length contract provisions include all of the consideration the buyer must pay, either directly or indirectly, for the oil. How do I value oil that is not sold under an arm’slength contract? This section explains how to value oil that you may not value under § 1206.102 or that you elect under § 1206.102(d) to value under this section. First determine whether paragraph (a), (b), or (c) of this section applies to production from your lease, or whether you may apply paragraph (d) or (e) with ONRR approval. (a) Production from leases in California or Alaska. Value is the average of the daily mean ANS spot prices published in any ONRR-approved publication during the trading month most concurrent with the production month. . . . (1) To calculate the daily mean spot price . . . (2) Use only the days . . . (3) You must adjust the value. (a)(4) After you select an ONRR-approved publication, you may not select a different publication more often than once every 2 years, . . . Jkt 232001 PO 00000 Frm 00043 Fmt 4703 Sfmt 4703 E:\FR\FM\02DEN1.SGM 02DEN1 72103 Federal Register / Vol. 78, No. 231 / Monday, December 2, 2013 / Notices RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued 30 CFR 1202, 1204, and 1206 Reporting and recordkeeping requirement 1206.103(b)(1) ........................ (b) Production from leases in the Rocky Mountain Region. . . . (1) If you have an ONRR-approved tendering program, you must value oil . . . (b)(1)(ii) If you do not have an ONRR-approved tendering program, you may elect to value your oil under either paragraph (b)(2) or (b)(3) of this section. (4) If you demonstrate to ONRR’s satisfaction that paragraphs (b)(1) through (b)(3) of this section result in an unreasonable value for your production as a result of circumstances regarding that production, the ONRR Director may establish an alternative valuation method. (c) Production from leases not located in California, Alaska or the Rocky Mountain Region. (1) Value is the NYMEX price, plus the roll, adjusted for applicable location and quality differentials and transportation costs under § 1206.112. (e) Production delivered to your refinery and the NYMEX price or ANS spot price is an unreasonable value. (1) . . . you may apply to the ONRR Director to establish a value (2) You must provide adequate documentation and evidence demonstrating the market value at the refinery. . . . representing the market at the refinery if: . . . 1206.103(b)(1)(ii) .................... 1206.103(b)(4) ........................ 1206.103(c)(1) ........................ 1206.103(e)(1) and (e)(2) ....... 1206.105 ................................. 1206.107(a) ............................. 1206.109(c)(2) ........................ 1206.110(a) ............................. 1206.110(d)(3) ........................ 1206.110(e) ............................. What records must I keep to support my calculations of value under this subpart? How do I determine a transportation allowance under an arm’s-length transportation contract? emcdonald on DSK67QTVN1PROD with NOTICES 1206.110(g)(2) ........................ Jkt 232001 PO 00000 Frm 00044 Fmt 4703 Sfmt 4703 800 2 800 400 2 800 50 10 500 330 2 660 Burden covered under OMB Control Number 1012–0004. 40 10 400 8 2 16 20 2 40 20 1 20 AUDIT PROCESS. See note. (2) You must submit your initial proposal, including all available data, within 3 months after first claiming the allocated deductions on Form ONRR–2014. (g) If your arm’s-length sales contract includes a provision reducing the contract price by a transportation factor, . . . (2) You must obtain ONRR approval before claiming a transportation factor in excess of 50 percent of the base price of the product. 20:41 Nov 29, 2013 2 400 (a) . . . You must be able to demonstrate that your or your affiliate’s contract is at arm’s length . . . (d) If your arm’s-length transportation contract includes more than one liquid product, and the transportation costs attributable to each product cannot be determined . . . (3) You may propose to ONRR a cost allocation method . . . (e) If your arm’s-length transportation contract includes both gaseous and liquid products, and the transportation costs attributable to each product cannot be determined from the contract, then you must propose an allocation procedure to ONRR. (e)(1) . . . If ONRR rejects your cost allocation, you must amend your Form ONRR–2014 . . . Annual burden hours 400 If you determine the value of your oil under this subpart, you must retain all data relevant to the determination of royalty value . . . How do I request a value determination? ......................... (a) You may request a value determination from ONRR . . . When may I take a transportation allowance in determining value? (c) Limits on transportation allowances. (2) You may ask ONRR to approve a transportation allowance in excess of the limitation in paragraph (c)(1) of this section. . . . Your application for exception (using Form ONRR–4393, Request to Exceed Regulatory Allowance Limitation) must contain all relevant and supporting documentation necessary for ONRR to make a determination . . . 1206.110(e)(1) and (e)(2) ....... VerDate Mar<15>2010 Average number of annual responses Hour burden Burden covered under OMB Control Number 1012–0004. E:\FR\FM\02DEN1.SGM 5 02DEN1 1 5 72104 Federal Register / Vol. 78, No. 231 / Monday, December 2, 2013 / Notices RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued 30 CFR 1202, 1204, and 1206 Reporting and recordkeeping requirement 1206.111(g) ............................. How do I determine a transportation allowance if I do not have an arm’s-length transportation contract or arm’s-length tariff? (g) To compute depreciation, you may elect to use either . . . After you make an election, you may not change methods without ONRR approval . . . (k)(2) You may propose to ONRR a cost allocation method on the basis of the values . . . (l)(1) Where you transport both gaseous and liquid products through the same transportation system, you must propose a cost allocation procedure to ONRR . . . (3) You must submit your initial proposal, including all available data, within 3 months after first claiming the allocated deductions on Form ONRR–2014. 1206.111(k)(2) ........................ 1206.111(l)(1) and (l)(3) ......... Hour burden 1206.111(l)(2) ......................... (l)(2) . . . If ONRR rejects your cost allocation, you must amend your Form ONRR–2104 for the months that you used the rejected method and pay any additional royalty and interest due. 1206.112(a)(1)(ii) .................... 1206.112(a)(3) and (a)(4) ....... 1206.112(b)(3) ........................ emcdonald on DSK67QTVN1PROD with NOTICES 1206.112(c)(2) ........................ 1206.114 ................................. You or your affiliate must use a separate entry on Form ONRR–2014 to notify ONRR of an allowance based on transportation costs you or your affiliate incur. ONRR may require you or your affiliate to submit arm’slength transportation contracts, production agreements, operating agreements, and related documents . . . VerDate Mar<15>2010 20:41 Nov 29, 2013 Jkt 232001 PO 00000 Frm 00045 Fmt 4703 Sfmt 4703 Annual burden hours 30 1 30 30 1 30 20 What adjustments and transportation allowances apply when I value oil production from my lease using NYMEX prices or ANS spot prices? (a)(1)(ii) . . . under an exchange agreement that is not at arm’s length, you must obtain approval from ONRR for a location and quality differential. (a)(1)(ii) . . . If ONRR prescribes a different differential, you must apply . . . You must pay any additional royalties owed . . . plus the late payment interest from the original royalty due date, or you may report a credit. (a)(3) If you transport or exchange at arm’s length (or both transport and exchange) at least 20 percent, but not all, of your oil produced from the lease to a market center, determine the adjustment between the lease and the market center for the oil that is not transported or exchanged (or both transported and exchanged) to or through a market center as follows: . . . (4) If you transport or exchange (or both transport and exchange) less than 20 percent of your crude oil produced from the lease between the lease and a market center, you must propose to ONRR an adjustment between the lease and the market center for the portion of the oil that you do not transport or exchange (or both transport and exchange) to a market center. . . . If ONRR prescribes a different adjustment. . . . You must pay any additional royalties owed . . . plus the late payment interest from the original royalty due date, or you may report a credit. (b)(3) . . . you may propose an alternative differential to ONRR. . . . If ONRR prescribes a different differential. . . . You must pay any additional royalties owed . . . plus the late payment interest from the original royalty due date, or you may report a credit . . . (c)(2) . . . If quality bank adjustments do not incorporate or provide for adjustments for sulfur content, you may make sulfur adjustments, based on the quality of the representative crude oil at the market center, of 5.0 cents per onetenth percent difference in sulfur content, unless ONRR approves a higher adjustment. What are my reporting requirements under an arm’slength transportation contract? 1206.112(a)(1)(ii) .................... Average number of annual responses 1 20 Burden covered under OMB Control Number 1012–0004. 80 1 80 20 2 40 80 4 320 80 4 320 80 2 160 Burden covered under OMB Control Number 1012–0004. AUDIT PROCESS. See note. E:\FR\FM\02DEN1.SGM 02DEN1 72105 Federal Register / Vol. 78, No. 231 / Monday, December 2, 2013 / Notices RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued 30 CFR 1202, 1204, and 1206 Reporting and recordkeeping requirement 1206.115(a) ............................. What are my reporting requirements under a non-arm’slength transportation arrangement? 1206.115(c) ............................. Hour burden (a) You or your affiliate must use a separate entry on Form ONRR–2014 to notify ONRR of an allowance based on transportation costs you or your affiliate incur. (c) ONRR may require you or your affiliate to submit all data used to calculate the allowance deduction. . . . Average number of annual responses Annual burden hours Burden covered under OMB Control Number 1012–0004. AUDIT PROCESS. See note. Subpart D—Federal Gas 1206.152(b)(1)(i) and (b)(1)(iii) 1206.152(b)(2) ........................ 1206.152(b)(3) ........................ 1206.152(e)(1) ........................ 1206.152(e)(2) ........................ 1206.152(e)(3) ........................ Valuation standards—unprocessed gas. AUDIT PROCESS. See note. (b)(1)(i) . . . The lessee shall have the burden of demonstrating that its contract is arm’s-length. . . . (iii) . . . When ONRR determines that the value may be unreasonable, ONRR will notify the lessee and give the lessee an opportunity to provide written information justifying the lessee’s value. (b)(2) . . . The lessee must request a value determination in accordance with paragraph (g) of this section for gas sold pursuant to a warranty contract; (b)(3) ONRR may require a lessee to certify that its arm’slength contract provisions include all of the consideration to be paid by the buyer, either directly or indirectly, for the gas. (e)(1) Where the value is determined pursuant to paragraph (c) of this section, the lessee shall retain all data relevant to the determination of royalty value . . . Any Federal lessee will make available upon request to the authorized ONRR or State representatives, to the Office of the Inspector General of the department of the Interior, or other person authorized to receive such information, arm’s-length sales and volume data for like-quality production sold, purchased or otherwise obtained by the lessee from the field or area or from nearby fields or areas. 1206.152(g) ............................. Valuation standards—processed gas. 1206.153(b)(2) ........................ emcdonald on DSK67QTVN1PROD with NOTICES 1206.153(b)(3) ........................ 1206.153(e)(1) ........................ VerDate Mar<15>2010 20:41 Nov 29, 2013 AUDIT PROCESS. See note. 10 Frm 00046 Fmt 4703 10 100 40 5 200 1 80 AUDIT PROCESS. See note. (b)(3) ONRR may require a lessee to certify that its arm’slength contract provisions include all of the consideration to be paid by the buyer, either directly or indirectly, for the residue gas or gas plant product. (e)(1) Where the value is determined pursuant to paragraph (c) of this section, the lessee shall retain all data relevant to the determination of royalty value . . . PO 00000 80 Burden covered under OMB Control Number 1012–0004. (b)(1)(i) . . . The lessee shall have the burden of demonstrating that its contract is arm’s-length. . . . (iii) . . . When ONRR determines that the value may be unreasonable, ONRR will notify the lessee and give the lessee an opportunity to provide written information justifying the lessee’s value. (b)(2) . . . The lessee must request a value determination in accordance with paragraph (g) of this section for gas sold pursuant to a warranty contract; Jkt 232001 1 AUDIT PROCESS. See note. (e)(3) A lessee shall notify ONRR if it has determined value pursuant to paragraph (c)(2) or (c)(3) of this section . . . (g) The lessee may request a value determination from ONRR. . . . The lessee shall submit all available data relevant to its proposal. . . . 1206.153(b)(1)(i) and (b)(1)(iii) 80 Sfmt 4703 80 AUDIT PROCESS. See note. Burden covered under OMB Control Number 1012–0004. E:\FR\FM\02DEN1.SGM 02DEN1 72106 Federal Register / Vol. 78, No. 231 / Monday, December 2, 2013 / Notices RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued 30 CFR 1202, 1204, and 1206 Reporting and recordkeeping requirement 1206.153(e)(2) ........................ (e)(2) Any Federal lessee will make available upon request to the authorized ONRR or State representatives, to the Office of the Inspector General of the Department of the Interior, or other persons authorized to receive such information, arm’s-length sales and volume data for like-quality residue gas and gas plant products sold, purchased or otherwise obtained by the lessee from the same processing plant or from nearby processing plants. 1206.153(e)(3) ........................ (e)(2) A lessee shall notify ONRR if it has determined any value pursuant to paragraph (c)(2) or (c)(3) of this section . . . 206.153(g) The lessee may request a value determination from ONRR. . . The lessee shall submit all available data relevant to its proposal. . . . Determination of quantities and qualities for computing royalties. (c)(4) . . . A lessee may request ONRR approval of other methods for determining the quantity of residue gas and gas plant products allocable to each lease. . . . Transportation allowances—general. (c)(3) Upon request of a lessee, ONRR may approve a transportation allowance deduction in excess of the limitation prescribed by paragraphs (c)(1) and (c)(2) of this section. . . . An application for exception (using Form ONRR–4393, Request to Exceed Regulatory Allowance Limitation) must contain all relevant and supporting documentation necessary for ONRR to make a determination. . . . 1206.153(g) ............................. 1206.154(c)(4) ........................ 1206.156(c)(3) ........................ 1206.157(a)(1)(i). .................... 1206.157(a)(1)(iii) ................... 1206.157(a)(2)(ii) .................... 1206.157(a)(3) ........................ 1206.157(a)(5) ........................ Hour burden 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. . . . The lessee must claim a transportation allowance by reporting it on a separate line entry on the Form ONRR–2014. (a)(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. emcdonald on DSK67QTVN1PROD with NOTICES (b) Non-arm’s-length or no contract. (1) The lessee must claim a transportation allowance by reporting it on a separate line entry on the Form ONRR–2014. 1206.157 ................................. (b)(2)(iv) and (b)(2)(iv)(A) ....... 10 VerDate Mar<15>2010 20:41 Nov 29, 2013 Jkt 232001 PO 00000 Frm 00047 Fmt 4703 Sfmt 4703 2 20 80 15 1,200 40 1 40 40 3 120 AUDIT PROCESS. See note. Burden covered under OMB Control Number 1012–0004. AUDIT PROCESS. See note. 40 1 40 40 1 40 10 (b)(2)(iv) . . . After a lessee has elected to use either method for a transportation system, the lessee may not later elect to change to the other alternative without approval of the ONRR. (A) . . . After an election is made, the lessee may not change methods without ONRR approval. . . . (b)(3)(i) . . . Except as provided in this paragraph, the lessee may not take an allowance for transporting a product which is not royalty bearing without ONRR approval. 1206.157(b)(3)(i) ..................... Annual burden hours AUDIT PROCESS. See note. (a)(2)(ii) . . . the lessee may propose to ONRR a cost allocation method on the basis of the values of the products transported. . . . (a)(3) If an arm’s-length transportation contract includes both gaseous and liquid products and the transportation costs attributable to each cannot be determined from the contract, the lessee shall propose an allocation procedure to ONRR. . . . The lessee shall submit all relevant data to support its proposal. . . . (a)(5) . . . The transportation factor may not exceed 50 percent of the base price of the product without ONRR approval. 1206.157(b)(1) ........................ Average number of annual responses 3 30 Burden covered under OMB Control Number 1012–0004. E:\FR\FM\02DEN1.SGM 100 1 100 100 1 100 02DEN1 72107 Federal Register / Vol. 78, No. 231 / Monday, December 2, 2013 / Notices RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued 30 CFR 1202, 1204, and 1206 Reporting and recordkeeping requirement 1206.157(b)(3)(ii) .................... (b)(3)(ii) . . . the lessee may propose to the ONRR a cost allocation method on the basis of the values of the products transported. . . . (b)(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 relevant data to support its proposal. . . . (b)(5) You may apply for an exception from the requirement to compute actual costs under paragraphs (b)(1) through (b)(4) of this section. 1206.157(b)(4) ........................ 1206.157(b)(5) ........................ 1206.157(c)(1)(i) ..................... 1206.157(c)(1)(ii) .................... 1206.157(c)(2)(i) ..................... 1206.157(c)(2)(iii) .................... 1206.157(e)(2), (e)(3), and (f)(1). 1206.158(c)(3) ........................ 1206.158(d)(2)(i) ..................... emcdonald on DSK67QTVN1PROD with NOTICES 1206.158(d)(2)(ii) .................... 1206.159(a)(1)(i) ..................... VerDate Mar<15>2010 20:41 Nov 29, 2013 Hour burden Average number of annual responses Annual burden hours 100 1 100 100 1 100 100 1 100 (c) Reporting Requirements. (1) Arm’s-length contracts. (i) You must use a separate entry on Form ONRR–2014 to notify ONRR of a transportation allowance. (c)(1)(ii) ONRR may require you to submit arm’s-length transportation contracts, production agreements, operating agreements, and related documents. . . . (c)(2) Non-arm’s-length or no contract. (i) You must use a separate entry on Form ONRR–2014 to notify ONRR of a transportation allowance. (c)(2)(iii) ONRR may require you to submit all data used to calculate the allowance deduction. . . . Burden covered under OMB Control Number 1012–0004. (e) Adjustments. (2) For lessees transporting production from onshore Federal leases, the lessee must submit a corrected Form ONRR–2014 to reflect actual costs, together with any payment, in accordance with instructions provided by ONRR. (3) For lessees transporting gas production from leases on the OCS, if the lessee’s estimated transportation allowance exceeds the allowance based on actual costs, the lessee must submit a corrected Form ONRR–2014 to reflect actual costs, together with its payments, in accordance with instructions provided by ONRR Burden covered under OMB Control Number 1012–0004. AUDIT PROCESS. See note. Burden covered under OMB Control Number 1012–0004. AUDIT PROCESS. See note. (f) Allowable costs in determining transportation allowances. . . . (1) Firm demand charges paid to pipelines. . . . if you receive a payment or credit from the pipeline for penalty refunds, rate case refunds, or other reasons, you must reduce the firm demand charge claimed on the Form ONRR–2014 by the amount of that payment. You must modify Form ONRR–2014 by the amount received or credited for the affected reporting period and pay any resulting royalty and late payment interest due; Processing allowances—general ....................................... (c)(3) Upon request of a lessee, ONRR may approve a processing allowance in excess of the limitation prescribed by paragraph (c)(2) of this section. . . . An application for exception (using Form ONRR–4393, Request to Exceed Regulatory Allowance Limitation) shall contain all relevant and supporting documentation for ONRR to make a determination. (d)(2)(i) If the lessee incurs extraordinary costs for processing gas production from a gas production operation, it may apply to ONRR for an allowance for those costs. . . (d)(2)(ii) . . . to retain the authority to deduct the allowance the lessee must report the deduction to ONRR in a form and manner prescribed by ONRR. Determination of processing allowances .......................... (a) Arm’s-length processing contracts ................................... (1)(i) . . . The lessee shall have the burden of demonstrating that its contract is arm’s-length. . . . The lessee must claim a processing allowance by reporting it on a separate line entry on the Form ONRR–2014. Jkt 232001 PO 00000 Frm 00048 Fmt 4703 Sfmt 4703 80 8 640 80 1 80 Burden covered under OMB Control Number 1012–0004. AUDIT PROCESS. See note. Burden covered under OMB Control Number 1012–0004. E:\FR\FM\02DEN1.SGM 02DEN1 72108 Federal Register / Vol. 78, No. 231 / Monday, December 2, 2013 / Notices RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued 30 CFR 1202, 1204, and 1206 Reporting and recordkeeping requirement 1206.159(a)(1)(iii) ................... (a)(1)(iii) . . . When ONRR determines that the value of the processing may be unreasonable, ONRR will notify the lessee and give the lessee an opportunity to provide written information justifying the lessee’s processing costs. 1206.159(a)(3) ........................ (a)(3) If an arm’s-length processing contract includes more than one gas plant product and the processing costs attributable to each product cannot be determined from the contract, the lessee shall propose an allocation procedure to ONRR. . . The lessee shall submit all relevant data to support its proposal. . . . 1206.159(b)(1) ........................ (b) Non-arm’s-length or no contract. (1). . . The lessee must claim a processing allowance by reflecting it as a separate line entry on the Form ONRR–2014. . . . 1206.159(b)(2)(iv) and (b)(2)(iv)(A). (b)(2)(iv) . . . When a lessee has elected to use either method for a processing plant, the lessee may not later elect to change to the alternative without approval of the ONRR. (A) . . . After an election is made, the lessee may not change methods without ONRR approval . . . (b)(4) A lessee may apply to ONRR for an exception from the requirements that it compute actual costs in accordance with paragraphs (b)(1) through (b)(3) of this section. . . . 1206.159(b)(4) ........................ 1206.159(c)(1)(i) ..................... 1206.159(c)(1)(ii) .................... 1206.159(c)(2)(i) ..................... 1206.159(c)(2)(iii) .................... 1206.159(e)(2) and (e)(3) ....... Hour burden (c) Reporting requirements—(1) Arm’s-length contracts. (i) The lessee must notify ONRR of an allowance based on incurred costs by using a separate line entry on the Form ONRR–2014. (c)(1)(ii) ONRR may require that a lessee submit arm’slength processing contracts and related documents. . . . (c)(2) Non-arm’s-length or no contract. (i) The lessee must notify ONRR of an allowance based on incurred costs by using a separate line entry on the Form ONRR–2014. (c)(2)(iii) Upon request by ONRR, the lessee shall submit all data used to prepare the allowance deduction. . . . (e) Adjustments . . . (2) For lessees processing production from onshore Federal leases, the lessee must submit a corrected Form ONRR–2014 to reflect actual costs, together with any payment, in accordance with instructions provided by ONRR. (3) For lessees processing gas production from leases on the OCS, if the lessee’s estimated processing allowance exceeds the allowance based on actual costs, the lessee must submit a corrected Form ONRR–2014 to reflect actual costs, together with its payment, in accordance with instructions provided by ONRR . . . Annual burden hours AUDIT PROCESS. See note. 20 1 20 Burden covered under OMB Control Number 1012–0004. 100 1 100 100 1 100 Burden covered under OMB Control Number 1012–0004. AUDIT PROCESS. See note. Burden covered under OMB Control Number 1012–0004. AUDIT PROCESS. See note. Burden covered under OMB Control Number 1012–0004. Oil and Gas Valuation Subtotal TOTAL ............................. Average number of annual responses 117 127 ............................................................................................ 8,672 9,198 emcdonald on DSK67QTVN1PROD 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 burden associated with the collection of information. 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 VerDate Mar<15>2010 20:41 Nov 29, 2013 Jkt 232001 displays a currently valid OMB control number. Comments: Section 3506(c)(2)(A) of the PRA 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 PO 00000 Frm 00049 Fmt 4703 Sfmt 4703 comments to (a) Evaluate whether the proposed collection of information is necessary for the agency to perform its duties, including whether the information is useful; (b) evaluate the accuracy of the agency’s estimate of the burden of the proposed collection of information; (c) enhance the quality, usefulness, and clarity of the information that ONRR collects; and (d) E:\FR\FM\02DEN1.SGM 02DEN1 Federal Register / Vol. 78, No. 231 / Monday, December 2, 2013 / Notices 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, we published a notice in the Federal Register on March 7, 2013 (78 FR 14824), announcing that we would submit this ICR to OMB for approval. The notice provided the required 60-day comment period. We received no unsolicited comments in response to the notice. If you wish to comment in response to this notice, you may send your comments to the offices 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, in order to ensure maximum consideration, OMB should receive public comments by January 2, 2014. Public Comment Policy: We will post all comments, including names and addresses of respondents, at http:// www.regulations.gov. Before including your address, phone number, 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 from public view your personal identifying information, we cannot guarantee that we will be able to do so. Office of the Secretary, Information Collection Clearance Officer: David Alspach (202) 219–8526. Dated: November 1, 2013. Gregory J. Gould, Director, Office of Natural Resources Revenue. [FR Doc. 2013–27084 Filed 11–29–13; 8:45 am] BILLING CODE 4310–T2–P DEPARTMENT OF THE INTERIOR Bureau of Reclamation [G63–0982–9832–100–96–76, 84–55000] Quarterly Status Report of Water Service, Repayment, and Other WaterRelated Contract Actions Bureau of Reclamation, Interior. ACTION: Notice. emcdonald on DSK67QTVN1PROD with NOTICES AGENCY: Notice is hereby given of contractual actions that have been proposed to the Bureau of Reclamation (Reclamation) and are new, modified, discontinued, or completed since the last publication of this notice. This SUMMARY: VerDate Mar<15>2010 20:41 Nov 29, 2013 Jkt 232001 notice is one of a variety of means used to inform the public about proposed contractual actions for capital recovery and management of project resources and facilities consistent with section 9(f) of the Reclamation Project Act of 1939. Additional announcements of individual contract actions may be published in the Federal Register and in newspapers of general circulation in the areas determined by Reclamation to be affected by the proposed action. ADDRESSES: The identity of the approving officer and other information pertaining to a specific contract proposal may be obtained by calling or writing the appropriate regional office at the address and telephone number given for each region in the SUPPLEMENTARY INFORMATION section. FOR FURTHER INFORMATION CONTACT: Michelle Kelly, Water and Environmental Resources Division, Bureau of Reclamation, P.O. Box 25007, Denver, Colorado 80225–0007; telephone 303–445–2888. SUPPLEMENTARY INFORMATION: Consistent with section 9(f) of the Reclamation Project Act of 1939, and the rules and regulations published in 52 FR 11954, April 13, 1987 (43 CFR 426.22), Reclamation will publish notice of proposed or amendatory contract actions for any contract for the delivery of project water for authorized uses in newspapers of general circulation in the affected area at least 60 days prior to contract execution. Please use the first quarter notice, 78 FR 21969, dated April 12, 2013, as a reference. Announcements may be in the form of news releases, legal notices, official letters, memorandums, or other forms of written material. Meetings, workshops, and/or hearings may also be used, as appropriate, to provide local publicity. The public participation procedures do not apply to proposed contracts for the sale of surplus or interim irrigation water for a term of 1 year or less. Either of the contracting parties may invite the public to observe contract proceedings. All public participation procedures will be coordinated with those involved in complying with the National Environmental Policy Act. Pursuant to the ‘‘Final Revised Public Participation Procedures’’ for water resource-related contract negotiations, published in 47 FR 7763, February 22, 1982, a tabulation is provided of all proposed contractual actions in each of the five Reclamation regions. When contract negotiations are completed, and prior to execution, each proposed contract form must be approved by the Secretary of the Interior, or pursuant to delegated or redelegated authority, the Commissioner PO 00000 Frm 00050 Fmt 4703 Sfmt 4703 72109 of Reclamation or one of the regional directors. In some instances, congressional review and approval of a report, water rate, or other terms and conditions of the contract may be involved. Public participation in and receipt of comments on contract proposals will be facilitated by adherence to the following procedures: 1. Only persons authorized to act on behalf of the contracting entities may negotiate the terms and conditions of a specific contract proposal. 2. Advance notice of meetings or hearings will be furnished to those parties that have made a timely written request for such notice to the appropriate regional or project office of Reclamation. 3. Written correspondence regarding proposed contracts may be made available to the general public pursuant to the terms and procedures of the Freedom of Information Act, as amended. 4. Written comments on a proposed contract or contract action must be submitted to the appropriate regional officials at the locations and within the time limits set forth in the advance public notices. 5. All written comments received and testimony presented at any public hearings will be reviewed and summarized by the appropriate regional office for use by the contract approving authority. 6. Copies of specific proposed contracts may be obtained from the appropriate regional director or his or her designated public contact as they become available for review and comment. 7. In the event modifications are made in the form of a proposed contract, the appropriate regional director shall determine whether republication of the notice and/or extension of the comment period is necessary. Factors considered in making such a determination shall include, but are not limited to, (i) the significance of the modification, and (ii) the degree of public interest which has been expressed over the course of the negotiations. At a minimum, the regional director will furnish revised contracts to all parties who requested the contract in response to the initial public notice. Definitions of Abbreviations Used in the Reports ARRA American Recovery and Reinvestment Act of 2009 BCP Boulder Canyon Project Reclamation Bureau of Reclamation CAP Central Arizona Project E:\FR\FM\02DEN1.SGM 02DEN1

Agencies

[Federal Register Volume 78, Number 231 (Monday, December 2, 2013)]
[Notices]
[Pages 72099-72109]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-27084]


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DEPARTMENT OF THE INTERIOR

Office of Natural Resources Revenue

[Docket No. ONRR-2012-0006; DS63610300 DR2PS0000.CH7000 134D0102R2]


Agency Information Collection Activities: Submitted for Office of 
Management and Budget Review; Comment Request

AGENCY: Office of the Secretary, Office of Natural Resources Revenue 
(ONRR).

ACTION: Notice of a revision of currently approved information 
collection (OMB Control Number 1012-0005).

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

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 title 30, Code of Federal 
Regulations (CFR), parts 1202, 1204, and 1206. This ICR pertains to (1) 
Federal oil and gas valuation regulations, which include transportation 
and processing regulatory allowance limits; and (2) accounting and 
auditing relief for marginal properties. This ICR also includes Form 
ONRR-4393, Request to Exceed Regulatory Allowance Limitation. Effective 
January 1, 2014, ONRR will discontinue the information collection 
requirements of the Stripper Oil royalty rate reductions in this ICR. 
The revised title of this ICR is ``Federal Oil and Gas Valuation--30 
CFR Parts 1202, 1204, and 1206.''

DATES: OMB has up to 60 days to approve or disapprove the information 
collection request but may respond after 30 days; therefore, you should 
submit your public comments to OMB by January 2, 2014 for the assurance 
of consideration.

ADDRESSES: Submit comments to the Office of Information and Regulatory 
Affairs, Office of Management and Budget, Attention: Desk Officer for 
the Department of the Interior (1012-0005), by telefax at (202) 395-
5806 or via email to OIRA_Submission@omb.eop.gov. Also, please send a 
copy of your comments to Armand Southall, Regulatory Specialist, Office 
of Natural Resources Revenue, P.O. Box 25165, MS 61030A, Denver, 
Colorado 80225. Please reference ``ICR 1012-0005'' in your comments.

FOR FURTHER INFORMATION CONTACT: Armand Southall, Regulatory 
Specialist, email Armand.Southall@onrr.gov. You may also contact Mr. 
Southall to obtain copies, at no cost, of (1) The ICR, (2) any 
associated form, and (3) the regulations that require us to collect the 
information. To see a copy of the entire ICR submitted to OMB, go to 
http://www.reginfo.gov/public/PRAMain and select ``Information 
Collection Review,'' then select ``Department of the Interior'' in the 
drop-down box under ``Currently Under Review.''

SUPPLEMENTARY INFORMATION:
    Title: Federal Oil and Gas Valuation--30 CFR Parts 1202, 1204, and 
1206.
    OMB Control Number: 1012-0005.
    Bureau Form Number: Form ONRR-4393.
    Abstract: The Secretary of the United States Department of the 
Interior is responsible for overseeing mineral resource development on 
Federal and Indian lands and the Outer Continental Shelf (OCS). The 
Secretary's responsibility, under various laws, is to manage mineral 
resource production from Federal and Indian lands and the OCS, collect 
the royalties and other mineral revenues due, and distribute the funds 
collected under those laws. We have posted those laws pertaining to 
mineral leases on Federal and Indian lands and the OCS at http://www.onrr.gov/Laws_R_D/PublicLawsAMR.htm.
    Effective October 1, 2010, ONRR reorganized and transferred our 
regulations from chapter II to chapter XII in title 30 CFR, resulting 
in a change to our citations. You can find the information collections 
covered in this ICR at 30 CFR part 1202, subparts C and D, which 
pertain to Federal oil and gas royalties; part 1204, subpart C, which 
pertains to accounting and auditing relief for marginal properties; and 
part 1206, subparts C and D, which pertain to Federal oil and gas 
product valuation.

I. General Information

    When a company or an individual enters into a lease to explore, 
develop, produce, and dispose of minerals from Federal or Indian lands, 
that company or individual agrees to pay the lessor a share in a value 
of production from the leased lands. The lessee, or designee, must 
report various kinds of information to the lessor relative to the 
disposition of the leased minerals. Such information is generally 
available within the records of the lessee or others involved in 
developing, transporting, processing, purchasing, or selling of such 
minerals.

II. Information Collections

    ONRR uses the information that we collect in this ICR to ensure 
that lessees accurately value and appropriately pay royalties on oil 
and gas produced from Federal onshore and offshore leases. Please refer 
to the chart for all reporting requirements and associated burden 
hours. All data submitted is subject to subsequent audit and 
adjustment.

A. Federal Oil and Gas Valuation Regulations

    The valuation regulations at 30 CFR part 1206, subparts C and D, 
mandate that lessees collect and/or submit information used to value 
their Federal oil and gas, including (1) transportation and processing 
allowances and (2) regulatory allowance limit information. Lessees 
report certain data on Form ONRR-2014, Report of Sales and Royalty 
Remittance (OMB Control Number 1012-0004). The information that we 
request is the minimum necessary to carry out our mission and places 
the least possible burden on respondents. If ONRR does not collect this 
information, both Federal and State governments may incur a loss of 
royalties.
    Transportation and Processing Regulatory Allowance Limits: Lessees 
may deduct the reasonable, actual costs of transportation and 
processing from Federal royalties. The lessees report these allowances 
on Form ONRR-2014. For oil and gas, regulations establish the allowable 
limit on transportation allowance deductions at 50 percent of the value 
of the oil or gas. For gas only, regulations establish the allowable 
limit on processing allowance deductions at 66\2/3\ percent of the 
value of each gas plant product.
    Request to Exceed Regulatory Allowance Limitation, Form ONRR-4393: 
Lessees may request to exceed regulatory limitations. Upon proper 
application from the lessee, ONRR may approve oil or gas transportation 
allowance in excess of 50 percent or gas processing allowance in excess 
of 66\2/3\ percent on Federal leases. Lessees must complete and submit 
Form ONRR-4393, including a letter and supporting documentation, for 
both Federal and

[[Page 72100]]

Indian leases to request to exceed allowance limitations. This ICR 
covers only Federal leases; therefore, we have not included burden 
hours of Form ONRR-4393 for Indian leases in this ICR. We include 
burden hours of Form ONRR-4393 for Indian leases in OMB Control Number 
1012-0002.

B. Accounting and Auditing Relief for Marginal Properties

    In 2004, we amended our regulations to comply with section 7 of the 
Federal Oil and Gas Royalty Simplification and Fairness Act of 1996. 
The regulations provide guidance for lessees and designees seeking 
accounting and auditing relief for qualifying Federal marginal 
properties. Under the regulations, both ONRR and the State concerned 
must approve any relief granted for a marginal property.

C. Stripper Oil Royalty Rate Reduction Program

    Under 43 CFR 3103.4-2, the Bureau of Land Management (BLM), the 
surface management agency for Federal onshore leases, established the 
Stripper Oil Royalty Rate Reduction Program (Stripper Oil Program). 
ONRR, who administered the Stripper Oil Program for BLM, approved 
royalty rate reductions for operators of stripper oil properties for 
applicable sales periods from October 1, 1992, through January 31, 
2006. Effective February 1, 2006, BLM terminated the reduced royalty 
rates under this program. On October 6, 2010, BLM published a final 
rule (75 FR 61624) that removed this citation from their regulations. 
This change is not currently reflected in title 30 CFR, chapter XII.
    For production through January 31, 2006, lessees submitted Form 
MMS-4377, Stripper Royalty Rate Reduction Notification, to notify ONRR 
of royalty rate changes. Although BLM terminated the royalty rate 
reductions, ONRR continues to verify previously submitted notifications 
and may require the operator to submit an amended Form ONRR-4377 
through December 31, 2013. However, effective January 1, 2014, ONRR 
will discontinue the Stripper Oil Program; therefore, ONRR will not 
request OMB approval for the Stripper Oil information collection 
requirements in this ICR.

III. OMB Approval

    We will request OMB approval to continue to collect, from companies 
and/or lessees and designees, information used (1) to value their 
Federal oil and gas, including (a) transportation and processing 
allowances and (b) the request to exceed regulatory allowance 
limitation and (2) to request accounting and auditing relief approval 
for qualifying Federal marginal properties. If ONRR does not collect 
this information, this would limit the Secretary's ability to discharge 
fiduciary duties and may also result in loss of royalty payments. ONRR 
protects the proprietary information that we receive, and we do not 
collect items of a sensitive nature.
    ONRR requires lessees to respond to information collections 
relating to valuing Federal oil and gas, including (a) transportation 
and processing allowances and (b) the request to exceed regulatory 
allowance limit information [Form ONRR-4393]. ONRR also requires that 
lessees submit the allowance information and form to obtain benefits 
for claiming allowances on Form ONRR-2014. In addition, ONRR requires 
lessees to respond to information collections in regards to requesting 
approval for accounting and auditing relief.
    Frequency: Annually and on occasion.
    Estimated Number and Description of Respondents: 120 Federal 
lessees/designees and 7 States for Federal oil and gas.
    Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 9,198 
hours.
    We have not included in our estimates certain requirements 
performed in the normal course of business and considered as usual and 
customary. We display the estimated annual burden hours by CFR section 
and paragraph in the following chart:

                                                       Respondents' Estimated Annual Burden Hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                              Average
                                                                                                                             number of    Annual  burden
         30 CFR 1202, 1204, and 1206                    Reporting and recordkeeping requirement             Hour burden       annual           hours
                                                                                                                             responses
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                  PART 1202--ROYALTIES
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Subpart C--Federal and Indian Oil
--------------------------------------------------------------------------------------------------------------------------------------------------------
1202.101.....................................  Standards for reporting and paying royalties. Oil volumes  Burden covered under OMB Control Number 1012-
                                                are to be reported in barrels of clean oil of 42          0004.
                                                standard U.S. gallons (231 cubic inches each) at 60
                                                [deg]F. . . .
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                 Subpart D--Federal Gas
--------------------------------------------------------------------------------------------------------------------------------------------------------
1202.152(a) and (b)..........................  Standards for reporting and paying royalties on gas......  Burden covered under OMB Control Number 1012-
                                                                                                          0004.
                                                                                                         -----------------------------------------------
                                               (a)(1) If you are responsible for reporting production or
                                                royalties you must:
                                               (i) Report gas volumes and British thermal unit (Btu)
                                                heating values, if applicable, under the same degree of
                                                water saturation;
                                               (ii) Report gas volumes in units of 1,000 cubic feet
                                                (mcf); and
                                               (iii) Report gas volumes and Btu heating value at a
                                                standard pressure base of 14.73 pounds per square inch
                                                absolute (psia) and a standard temperature base of 60
                                                [deg]F . . .
                                               (b) Residue gas and gas plant product volumes shall be
                                                reported as specified in this paragraph. . . .
--------------------------------------------------------------------------------------------------------------------------------------------------------

[[Page 72101]]

 
                                                     PART 1204--ALTERNATIVES FOR MARGINAL PROPERTIES
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                        Subpart C--Accounting and Auditing Relief
--------------------------------------------------------------------------------------------------------------------------------------------------------
1204.202(b)(1)...............................  What is the cumulative royalty reports and payments                    40               1              40
                                                relief option?
                                               (b) To use the cumulative royalty reports and payments
                                                relief option, you must do all of the following:
                                               (1) Notify ONRR in writing by January 31 of the calendar
                                                year for which you begin taking your relief. . . ..
                                                                                                         -----------------------------------------------
1204.202(b)(2) and (b)(3)....................  (b)(2) Submit your royalty report and payment . . . by     Burden covered under OMB Control Number 1012-
                                                the end of February of the year following the calendar    0004.
                                                year for which you reported annually. . . . If you have
                                                an estimated payment on file, you must submit your
                                                royalty report and payment by the end of March of the
                                                year following the calendar year for which you reported
                                                annually; (3) Use the sales month prior to the month
                                                that you submit your annual report and payment . . . for
                                                the entire previous calendar year's production for which
                                                you are paying annually. . . .
1204.202(b)(4), (b)(5), (c), (d)(1), (d)(2),   (b)(4) Report one line of cumulative royalty information   Burden covered under OMB Control Number 1012-
 (e)(1), and (e)(2).                            on Form ONRR-2014 for the calendar year . . . And         0004.
                                               (5) Report allowances on Form ONRR-2014 on the same
                                                annual basis as the royalties for your marginal property
                                                production..
                                                                                                         -----------------------------------------------
                                               (c) If you do not pay your royalty by the date due in
                                                paragraph (b) of this section, you will owe late payment
                                                interest . . . from the date your payment was due under
                                                this section until the date ONRR receives it. . . .
                                               (d) If you take relief you are not qualified for, you may
                                                be liable for civil penalties.
                                               Also you must: (1) Pay ONRR late payment interest
                                                determined under 30 CFR 1218.54 . . .(2) Amend your Form
                                                ONRR-2014 . . ..
                                               (e) If you dispose of your ownership interest in a
                                                marginal property for which you have taken relief . . .
                                                you must:
                                               (1) Report and pay royalties for the portion of the
                                                calendar year for which you had an ownership interest;
                                                and
                                               (2) Make the report and payment by the end of the month
                                                after you dispose of the ownership interest in the
                                                marginal property. If you do not report and pay timely,
                                                you will owe interest . . . from the date the payment
                                                was due. . . .
1204.203(b), 1204.205(a) and (b), and          What is the other relief option?.........................             200               1             200
 1204.206(a)(3)(i) and (b)(1).                 (b) You must request approval from ONRR . . . before
                                                taking relief under this option..
1204.208 (c)(1), (d)(1), and (e).............  May a State decide that it will or will not allow one or               40               7             280
                                                both of the relief options under this subpart?
                                               (c) If a State decides . . . that it will or will not
                                                allow one or both of the relief options . . . within 30
                                                days . . . the State must: (1) Notify the Director for
                                                Office of Natural Resources Revenue, in writing, of its
                                                intent to allow or not allow one or both of the relief
                                                options . . .
                                               (d) If a State decides in advance . . . that it will not
                                                allow one or both of the relief options . . . the State
                                                must: (1) Notify the Director for Office of Natural
                                                Resources Revenue, in writing, of its intent to allow
                                                one or both of the relief options . . .
                                               (e) If a State does not notify ONRR . . . the State will
                                                be deemed to have decided not to allow either of the
                                                relief options. . ..
1204.209(b)..................................  What if a property ceases to qualify for relief obtained                6               1               6
                                                under this subpart?

[[Page 72102]]

 
                                               (b) If a property is no longer eligible for relief . . .
                                                the relief for the property terminates as of December 31
                                                of that calendar year. You must notify ONRR in writing
                                                by December 31 that the relief for the property has
                                                terminated. . .
                                                                                                         -----------------------------------------------
1204.210(c) and (d)..........................  What if a property is approved as part of a nonqualifying  Burden covered under OMB Control Number 1012-
                                                agreement?                                                0004.
                                                                                                         -----------------------------------------------
                                               (c) . . . the volumes on which you report and pay royalty
                                                . . . must be amended to reflect all volumes produced on
                                                or allocated to your lease under the nonqualifying
                                                agreement as modified by BLM. . . . Report and pay
                                                royalties for your production using the procedures in
                                                Sec.   1204.202(b).
                                               (d) If you owe additional royalties based on the
                                                retroactive agreement approval and do not pay your
                                                royalty by the date due in Sec.   1204.202(b), you will
                                                owe late payment interest determined under Sec.
                                                1218.54 from the date your payment was due under Sec.
                                                1204.202(b)(2) until the date ONRR receives it.
                                                                                                         -----------------------------------------------
1204.214(b)(1) and (b)(2)....................  Is minimum royalty due on a property for which I took      Burden covered under OMB Control Number 1012-
                                                relief?                                                   0004.
                                                                                                         -----------------------------------------------
                                               (b) If you pay minimum royalty on production from a
                                                marginal property during a calendar year for which you
                                                are taking cumulative royalty reports and payment
                                                relief, and:
                                               (1) The annual payment you owe under this subpart is
                                                greater than the minimum royalty you paid, you must pay
                                                the difference between the minimum royalty you paid and
                                                your annual payment due under this subpart; or
                                               (2) The annual payment you owe under this subpart is less
                                                than the minimum royalty you paid, you are not entitled
                                                to a credit because you must pay at least the minimum
                                                royalty amount on your lease each year.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Accounting and Auditing Relief Subtotal.................................................................  ..............              10             526
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              Part 1206--Product Valuation
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                 Subpart C--Federal Oil
--------------------------------------------------------------------------------------------------------------------------------------------------------
1206.102(e)(1)...............................  How do I calculate royalty value for oil that I or my      AUDIT PROCESS. See note.
                                                affiliate sell(s) under an arm's-length contract?
                                                                                                         -----------------------------------------------
                                               (e) If you value oil under paragraph (a) of this section:
                                                (1) ONRR may require you to certify that your or your
                                                affiliate's arm's-length contract provisions include all
                                                of the consideration the buyer must pay, either directly
                                                or indirectly, for the oil.
1206.103(a)(1), (a)(2), and (a)(3)...........  How do I value oil that is not sold under an arm's-length              45               5             225
                                                contract?
                                               This section explains how to value oil that you may not
                                                value under Sec.   1206.102 or that you elect under Sec.
                                                  1206.102(d) to value under this section. First
                                                determine whether paragraph (a), (b), or (c) of this
                                                section applies to production from your lease, or
                                                whether you may apply paragraph (d) or (e) with ONRR
                                                approval.
                                               (a) Production from leases in California or Alaska. Value
                                                is the average of the daily mean ANS spot prices
                                                published in any ONRR-approved publication during the
                                                trading month most concurrent with the production month.
                                                . . .
                                               (1) To calculate the daily mean spot price . . .
                                               (2) Use only the days . . .
                                               (3) You must adjust the value.
1206.103(a)(4)...............................  (a)(4) After you select an ONRR-approved publication, you               8               2              16
                                                may not select a different publication more often than
                                                once every 2 years, . . .

[[Page 72103]]

 
1206.103(b)(1)...............................  (b) Production from leases in the Rocky Mountain Region.              400               2             800
                                                . . . (1) If you have an ONRR-approved tendering
                                                program, you must value oil . . .
1206.103(b)(1)(ii)...........................  (b)(1)(ii) If you do not have an ONRR-approved tendering              400               2             800
                                                program, you may elect to value your oil under either
                                                paragraph (b)(2) or (b)(3) of this section.
1206.103(b)(4)...............................  (4) If you demonstrate to ONRR's satisfaction that                    400               2             800
                                                paragraphs (b)(1) through (b)(3) of this section result
                                                in an unreasonable value for your production as a result
                                                of circumstances regarding that production, the ONRR
                                                Director may establish an alternative valuation method.
1206.103(c)(1)...............................  (c) Production from leases not located in California,                  50              10             500
                                                Alaska or the Rocky Mountain Region. (1) Value is the
                                                NYMEX price, plus the roll, adjusted for applicable
                                                location and quality differentials and transportation
                                                costs under Sec.   1206.112.
1206.103(e)(1) and (e)(2)....................  (e) Production delivered to your refinery and the NYMEX               330               2             660
                                                price or ANS spot price is an unreasonable value. (1) .
                                                . . you may apply to the ONRR Director to establish a
                                                value (2) You must provide adequate documentation and
                                                evidence demonstrating the market value at the refinery.
                                                . . . representing the market at the refinery if: . . .
                                                                                                         -----------------------------------------------
1206.105.....................................  What records must I keep to support my calculations of     Burden covered under OMB Control Number 1012-
                                                value under this subpart?                                 0004.
                                                                                                         -----------------------------------------------
                                               If you determine the value of your oil under this
                                                subpart, you must retain all data relevant to the
                                                determination of royalty value . . .
1206.107(a)..................................  How do I request a value determination?..................              40              10             400
                                               (a) You may request a value determination from ONRR . . .
1206.109(c)(2)...............................  When may I take a transportation allowance in determining               8               2              16
                                                value?
                                               (c) Limits on transportation allowances. (2) You may ask
                                                ONRR to approve a transportation allowance in excess of
                                                the limitation in paragraph (c)(1) of this section. . .
                                                . Your application for exception (using Form ONRR-4393,
                                                Request to Exceed Regulatory Allowance Limitation) must
                                                contain all relevant and supporting documentation
                                                necessary for ONRR to make a determination . . .
                                                                                                         -----------------------------------------------
1206.110(a)..................................  How do I determine a transportation allowance under an     AUDIT PROCESS. See note.
                                                arm's-length transportation contract?
                                                                                                         -----------------------------------------------
                                               (a) . . . You must be able to demonstrate that your or
                                                your affiliate's contract is at arm's length . . .
1206.110(d)(3)...............................  (d) If your arm's-length transportation contract includes              20               2              40
                                                more than one liquid product, and the transportation
                                                costs attributable to each product cannot be determined
                                                . . .
                                               (3) You may propose to ONRR a cost allocation method . .
                                                ..
1206.110(e)..................................  (e) If your arm's-length transportation contract includes              20               1              20
                                                both gaseous and liquid products, and the transportation
                                                costs attributable to each product cannot be determined
                                                from the contract, then you must propose an allocation
                                                procedure to ONRR.
                                                                                                         -----------------------------------------------
1206.110(e)(1) and (e)(2)....................  (e)(1) . . . If ONRR rejects your cost allocation, you     Burden covered under OMB Control Number 1012-
                                                must amend your Form ONRR-2014 . . .                      0004.
                                                                                                         -----------------------------------------------
                                               (2) You must submit your initial proposal, including all
                                                available data, within 3 months after first claiming the
                                                allocated deductions on Form ONRR-2014.
1206.110(g)(2)...............................  (g) If your arm's-length sales contract includes a                      5               1               5
                                                provision reducing the contract price by a
                                                transportation factor, . . .
                                               (2) You must obtain ONRR approval before claiming a
                                                transportation factor in excess of 50 percent of the
                                                base price of the product.

[[Page 72104]]

 
1206.111(g)..................................  How do I determine a transportation allowance if I do not              30               1              30
                                                have an arm's-length transportation contract or arm's-
                                                length tariff?
                                               (g) To compute depreciation, you may elect to use either
                                                . . . After you make an election, you may not change
                                                methods without ONRR approval . . .
1206.111(k)(2)...............................  (k)(2) You may propose to ONRR a cost allocation method                30               1              30
                                                on the basis of the values . . .
1206.111(l)(1) and (l)(3)....................  (l)(1) Where you transport both gaseous and liquid                     20               1              20
                                                products through the same transportation system, you
                                                must propose a cost allocation procedure to ONRR . . .
                                               (3) You must submit your initial proposal, including all
                                                available data, within 3 months after first claiming the
                                                allocated deductions on Form ONRR-2014..
                                                                                                         -----------------------------------------------
1206.111(l)(2)...............................  (l)(2) . . . If ONRR rejects your cost allocation, you     Burden covered under OMB Control Number 1012-
                                                must amend your Form ONRR-2104 for the months that you    0004.
                                                used the rejected method and pay any additional royalty
                                                and interest due.
                                                                                                         -----------------------------------------------
1206.112(a)(1)(ii)...........................  What adjustments and transportation allowances apply when              80               1              80
                                                I value oil production from my lease using NYMEX prices
                                                or ANS spot prices?
                                               (a)(1)(ii) . . . under an exchange agreement that is not
                                                at arm's length, you must obtain approval from ONRR for
                                                a location and quality differential.
1206.112(a)(1)(ii)...........................  (a)(1)(ii) . . . If ONRR prescribes a different                        20               2              40
                                                differential, you must apply . . . You must pay any
                                                additional royalties owed . . . plus the late payment
                                                interest from the original royalty due date, or you may
                                                report a credit.
1206.112(a)(3) and (a)(4)....................  (a)(3) If you transport or exchange at arm's length (or                80               4             320
                                                both transport and exchange) at least 20 percent, but
                                                not all, of your oil produced from the lease to a market
                                                center, determine the adjustment between the lease and
                                                the market center for the oil that is not transported or
                                                exchanged (or both transported and exchanged) to or
                                                through a market center as follows: . . .
                                               (4) If you transport or exchange (or both transport and
                                                exchange) less than 20 percent of your crude oil
                                                produced from the lease between the lease and a market
                                                center, you must propose to ONRR an adjustment between
                                                the lease and the market center for the portion of the
                                                oil that you do not transport or exchange (or both
                                                transport and exchange) to a market center. . . . If
                                                ONRR prescribes a different adjustment. . . . You must
                                                pay any additional royalties owed . . . plus the late
                                                payment interest from the original royalty due date, or
                                                you may report a credit..
1206.112(b)(3)...............................  (b)(3) . . . you may propose an alternative differential               80               4             320
                                                to ONRR. . . . If ONRR prescribes a different
                                                differential. . . . You must pay any additional
                                                royalties owed . . . plus the late payment interest from
                                                the original royalty due date, or you may report a
                                                credit . . .
1206.112(c)(2)...............................  (c)(2) . . . If quality bank adjustments do not                        80               2             160
                                                incorporate or provide for adjustments for sulfur
                                                content, you may make sulfur adjustments, based on the
                                                quality of the representative crude oil at the market
                                                center, of 5.0 cents per one-tenth percent difference in
                                                sulfur content, unless ONRR approves a higher
                                                adjustment.
1206.114.....................................  What are my reporting requirements under an arm's-length
                                                transportation contract?
                                                                                                         -----------------------------------------------
                                               You or your affiliate must use a separate entry on Form    Burden covered under OMB Control Number 1012-
                                                ONRR-2014 to notify ONRR of an allowance based on         0004.
                                                transportation costs you or your affiliate incur.
                                               ONRR may require you or your affiliate to submit arm's-    AUDIT PROCESS. See note.
                                                length transportation contracts, production agreements,
                                                operating agreements, and related documents . . .

[[Page 72105]]

 
1206.115(a)..................................  What are my reporting requirements under a non-arm's-      Burden covered under OMB Control Number 1012-
                                                length transportation arrangement?                        0004.
                                                                                                         -----------------------------------------------
                                               (a) You or your affiliate must use a separate entry on
                                                Form ONRR-2014 to notify ONRR of an allowance based on
                                                transportation costs you or your affiliate incur.
1206.115(c)..................................  (c) ONRR may require you or your affiliate to submit all   AUDIT PROCESS. See note.
                                                data used to calculate the allowance deduction. . . .
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                 Subpart D--Federal Gas
--------------------------------------------------------------------------------------------------------------------------------------------------------
1206.152(b)(1)(i) and (b)(1)(iii)............  Valuation standards--unprocessed gas.                      AUDIT PROCESS. See note.
                                                                                                         -----------------------------------------------
                                               (b)(1)(i) . . . The lessee shall have the burden of
                                                demonstrating that its contract is arm's-length. . . .
                                                (iii) . . . When ONRR determines that the value may be
                                                unreasonable, ONRR will notify the lessee and give the
                                                lessee an opportunity to provide written information
                                                justifying the lessee's value.
1206.152(b)(2)...............................  (b)(2) . . . The lessee must request a value                           80               1              80
                                                determination in accordance with paragraph (g) of this
                                                section for gas sold pursuant to a warranty contract;
                                                                                                         -----------------------------------------------
1206.152(b)(3)...............................  (b)(3) ONRR may require a lessee to certify that its       AUDIT PROCESS. See note.
                                                arm's-length contract provisions include all of the
                                                consideration to be paid by the buyer, either directly
                                                or indirectly, for the gas.
1206.152(e)(1)...............................  (e)(1) Where the value is determined pursuant to           Burden covered under OMB Control Number 1012-
                                                paragraph (c) of this section, the lessee shall retain    0004.
                                                all data relevant to the determination of royalty value
                                                . . .
1206.152(e)(2)...............................  Any Federal lessee will make available upon request to     AUDIT PROCESS. See note.
                                                the authorized ONRR or State representatives, to the
                                                Office of the Inspector General of the department of the
                                                Interior, or other person authorized to receive such
                                                information, arm's-length sales and volume data for like-
                                                quality production sold, purchased or otherwise obtained
                                                by the lessee from the field or area or from nearby
                                                fields or areas.
                                                                                                         -----------------------------------------------
1206.152(e)(3)...............................  (e)(3) A lessee shall notify ONRR if it has determined                 10              10             100
                                                value pursuant to paragraph (c)(2) or (c)(3) of this
                                                section . . .
1206.152(g)..................................  (g) The lessee may request a value determination from                  40               5             200
                                                ONRR. . . . The lessee shall submit all available data
                                                relevant to its proposal. . . .
                                                                                                         -----------------------------------------------
1206.153(b)(1)(i) and (b)(1)(iii)............  Valuation standards--processed gas.                        AUDIT PROCESS. See note.
                                                                                                         -----------------------------------------------
                                               (b)(1)(i) . . . The lessee shall have the burden of
                                                demonstrating that its contract is arm's-length. . . .
                                               (iii) . . . When ONRR determines that the value may be
                                                unreasonable, ONRR will notify the lessee and give the
                                                lessee an opportunity to provide written information
                                                justifying the lessee's value.
1206.153(b)(2)...............................  (b)(2) . . . The lessee must request a value                           80               1              80
                                                determination in accordance with paragraph (g) of this
                                                section for gas sold pursuant to a warranty contract;
                                                                                                         -----------------------------------------------
1206.153(b)(3)...............................  (b)(3) ONRR may require a lessee to certify that its       AUDIT PROCESS. See note.
                                                arm's-length contract provisions include all of the
                                                consideration to be paid by the buyer, either directly
                                                or indirectly, for the residue gas or gas plant product.
1206.153(e)(1)...............................  (e)(1) Where the value is determined pursuant to           Burden covered under OMB Control Number 1012-
                                                paragraph (c) of this section, the lessee shall retain    0004.
                                                all data relevant to the determination of royalty value
                                                . . .

[[Page 72106]]

 
1206.153(e)(2)...............................  (e)(2) Any Federal lessee will make available upon         AUDIT PROCESS. See note.
                                                request to the authorized ONRR or State representatives,
                                                to the Office of the Inspector General of the Department
                                                of the Interior, or other persons authorized to receive
                                                such information, arm's-length sales and volume data for
                                                like-quality residue gas and gas plant products sold,
                                                purchased or otherwise obtained by the lessee from the
                                                same processing plant or from nearby processing plants.
                                                                                                         -----------------------------------------------
1206.153(e)(3)...............................  (e)(2) A lessee shall notify ONRR if it has determined                 10               2              20
                                                any value pursuant to paragraph (c)(2) or (c)(3) of this
                                                section . . .
1206.153(g)..................................  206.153(g) The lessee may request a value determination                80              15           1,200
                                                from ONRR. . . The lessee shall submit all available
                                                data relevant to its proposal. . . .
1206.154(c)(4)...............................  Determination of quantities and qualities for computing                40               1              40
                                                royalties.
                                               (c)(4) . . . A lessee may request ONRR approval of other
                                                methods for determining the quantity of residue gas and
                                                gas plant products allocable to each lease. . . ..
1206.156(c)(3)...............................  Transportation allowances--general.                                    40               3             120
                                               (c)(3) Upon request of a lessee, ONRR may approve a
                                                transportation allowance deduction in excess of the
                                                limitation prescribed by paragraphs (c)(1) and (c)(2) of
                                                this section. . . . An application for exception (using
                                                Form ONRR-4393, Request to Exceed Regulatory Allowance
                                                Limitation) must contain all relevant and supporting
                                                documentation necessary for ONRR to make a
                                                determination. . . .
                                                                                                         -----------------------------------------------
1206.157(a)(1)(i)............................  Determination of transportation allowances                 AUDIT PROCESS. See note.
                                               (a) Arm's-length transportation contracts. (1)(i) . . .
                                                The lessee shall have the burden of demonstrating that
                                                its contract is arm's-length. . . .
                                               The lessee must claim a transportation allowance by        Burden covered under OMB Control Number 1012-
                                                reporting it on a separate line entry on the Form ONRR-   0004.
                                                2014.
1206.157(a)(1)(iii)..........................  (a)(1)(iii) . . . When ONRR determines that the value of   AUDIT PROCESS. See note.
                                                the transportation may be unreasonable, ONRR will notify
                                                the lessee and give the lessee an opportunity to provide
                                                written information justifying the lessee's
                                                transportation costs.
                                                                                                         -----------------------------------------------
1206.157(a)(2)(ii)...........................  (a)(2)(ii) . . . the lessee may propose to ONRR a cost                 40               1              40
                                                allocation method on the basis of the values of the
                                                products transported. . . .
1206.157(a)(3)...............................  (a)(3) If an arm's-length transportation contract                      40               1              40
                                                includes both gaseous and liquid products and the
                                                transportation costs attributable to each cannot be
                                                determined from the contract, the lessee shall propose
                                                an allocation procedure to ONRR. . . . The lessee shall
                                                submit all relevant data to support its proposal. . . .
1206.157(a)(5)...............................  (a)(5) . . . The transportation factor may not exceed 50               10               3              30
                                                percent of the base price of the product without ONRR
                                                approval.
                                                                                                         -----------------------------------------------
1206.157(b)(1)...............................  (b) Non-arm's-length or no contract. (1) The lessee must   Burden covered under OMB Control Number 1012-
                                                claim a transportation allowance by reporting it on a     0004.
                                                separate line entry on the Form ONRR-2014.
                                                                                                         -----------------------------------------------
1206.157.....................................  (b)(2)(iv) . . . After a lessee has elected to use either             100               1             100
(b)(2)(iv) and (b)(2)(iv)(A).................   method for a transportation system, the lessee may not
                                                later elect to change to the other alternative without
                                                approval of the ONRR.
                                               (A) . . . After an election is made, the lessee may not
                                                change methods without ONRR approval. . . ..
1206.157(b)(3)(i)............................  (b)(3)(i) . . . Except as provided in this paragraph, the             100               1             100
                                                lessee may not take an allowance for transporting a
                                                product which is not royalty bearing without ONRR
                                                approval.

[[Page 72107]]

 
1206.157(b)(3)(ii)...........................  (b)(3)(ii) . . . the lessee may propose to the ONRR a                 100               1             100
                                                cost allocation method on the basis of the values of the
                                                products transported. . . .
1206.157(b)(4)...............................  (b)(4) Where both gaseous and liquid products are                     100               1             100
                                                transported through the same transportation system, the
                                                lessee shall propose a cost allocation procedure to
                                                ONRR. . . . The lessee shall submit all relevant data to
                                                support its proposal. . . .
1206.157(b)(5)...............................  (b)(5) You may apply for an exception from the                        100               1             100
                                                requirement to compute actual costs under paragraphs
                                                (b)(1) through (b)(4) of this section.
                                                                                                         -----------------------------------------------
1206.157(c)(1)(i)............................  (c) Reporting Requirements. (1) Arm's-length contracts.    Burden covered under OMB Control Number 1012-
                                                (i) You must use a separate entry on Form ONRR-2014 to    0004.
                                                notify ONRR of a transportation allowance.
1206.157(c)(1)(ii)...........................  (c)(1)(ii) ONRR may require you to submit arm's-length     AUDIT PROCESS. See note.
                                                transportation contracts, production agreements,
                                                operating agreements, and related documents. . . .
1206.157(c)(2)(i)............................  (c)(2) Non-arm's-length or no contract. (i) You must use   Burden covered under OMB Control Number 1012-
                                                a separate entry on Form ONRR-2014 to notify ONRR of a    0004.
                                                transportation allowance.
1206.157(c)(2)(iii)..........................  (c)(2)(iii) ONRR may require you to submit all data used   AUDIT PROCESS. See note.
                                                to calculate the allowance deduction. . . .
                                                                                                         -----------------------------------------------
1206.157(e)(2), (e)(3), and (f)(1)...........  (e) Adjustments. (2) For lessees transporting production   Burden covered under OMB Control Number 1012-
                                                from onshore Federal leases, the lessee must submit a     0004.
                                                corrected Form ONRR-2014 to reflect actual costs,
                                                together with any payment, in accordance with
                                                instructions provided by ONRR. (3) For lessees
                                                transporting gas production from leases on the OCS, if
                                                the lessee's estimated transportation allowance exceeds
                                                the allowance based on actual costs, the lessee must
                                                submit a corrected Form ONRR-2014 to reflect actual
                                                costs, together with its payments, in accordance with
                                                instructions provided by ONRR
                                                                                                         -----------------------------------------------
                                               (f) Allowable costs in determining transportation
                                                allowances. . . . (1) Firm demand charges paid to
                                                pipelines. . . . if you receive a payment or credit from
                                                the pipeline for penalty refunds, rate case refunds, or
                                                other reasons, you must reduce the firm demand charge
                                                claimed on the Form ONRR-2014 by the amount of that
                                                payment. You must modify Form ONRR-2014 by the amount
                                                received or credited for the affected reporting period
                                                and pay any resulting royalty and late payment interest
                                                due;
1206.158(c)(3)...............................  Processing allowances--general...........................              80               8             640
                                               (c)(3) Upon request of a lessee, ONRR may approve a
                                                processing allowance in excess of the limitation
                                                prescribed by paragraph (c)(2) of this section. . . . An
                                                application for exception (using Form ONRR-4393, Request
                                                to Exceed Regulatory Allowance Limitation) shall contain
                                                all relevant and supporting documentation for ONRR to
                                                make a determination.
1206.158(d)(2)(i)............................  (d)(2)(i) If the lessee incurs extraordinary costs for                 80               1              80
                                                processing gas production from a gas production
                                                operation, it may apply to ONRR for an allowance for
                                                those costs. . .
                                                                                                         -----------------------------------------------
1206.158(d)(2)(ii)...........................  (d)(2)(ii) . . . to retain the authority to deduct the     Burden covered under OMB Control Number 1012-
                                                allowance the lessee must report the deduction to ONRR    0004.
                                                in a form and manner prescribed by ONRR.
1206.159(a)(1)(i)............................  Determination of processing allowances...................
                                               (a) Arm's-length processing contracts....................  AUDIT PROCESS. See note.
                                               (1)(i) . . . The lessee shall have the burden of
                                                demonstrating that its contract is arm's-length. . . .
                                               The lessee must claim a processing allowance by reporting  Burden covered under OMB Control Number 1012-
                                                it on a separate line entry on the Form ONRR-2014.        0004.

[[Page 72108]]

 
1206.159(a)(1)(iii)..........................  (a)(1)(iii) . . . When ONRR determines that the value of   AUDIT PROCESS. See note.
                                                the processing may be unreasonable, ONRR will notify the
                                                lessee and give the lessee an opportunity to provide
                                                written information justifying the lessee's processing
                                                costs.
                                                                                                         -----------------------------------------------
1206.159(a)(3)...............................  (a)(3) If an arm's-length processing contract includes                 20               1              20
                                                more than one gas plant product and the processing costs
                                                attributable to each product cannot be determined from
                                                the contract, the lessee shall propose an allocation
                                                procedure to ONRR. . . The lessee shall submit all
                                                relevant data to support its proposal. . . .
                                                                                                         -----------------------------------------------
1206.159(b)(1)...............................  (b) Non-arm's-length or no contract. (1). . . The lessee   Burden covered under OMB Control Number 1012-
                                                must claim a processing allowance by reflecting it as a   0004.
                                                separate line entry on the Form ONRR-2014. . . .
                                                                                                         -----------------------------------------------
1206.159(b)(2)(iv) and (b)(2)(iv)(A).........  (b)(2)(iv) . . . When a lessee has elected to use either              100               1             100
                                                method for a processing plant, the lessee may not later
                                                elect to change to the alternative without approval of
                                                the ONRR.
                                               (A) . . . After an election is made, the lessee may not
                                                change methods without ONRR approval . . ..
1206.159(b)(4)...............................  (b)(4) A lessee may apply to ONRR for an exception from               100               1             100
                                                the requirements that it compute actual costs in
                                                accordance with paragraphs (b)(1) through (b)(3) of this
                                                section. . . .
                                                                                                         -----------------------------------------------
1206.159(c)(1)(i)............................  (c) Reporting requirements--(1) Arm's-length contracts.    Burden covered under OMB Control Number 1012-
                                                (i) The lessee must notify ONRR of an allowance based on  0004.
                                                incurred costs by using a separate line entry on the
                                                Form ONRR-2014.
1206.159(c)(1)(ii)...........................  (c)(1)(ii) ONRR may require that a lessee submit arm's-    AUDIT PROCESS. See note.
                                                length processing contracts and related documents. . . .
1206.159(c)(2)(i)............................  (c)(2) Non-arm's-length or no contract. (i) The lessee     Burden covered under OMB Control Number 1012-
                                                must notify ONRR of an allowance based on incurred costs  0004.
                                                by using a separate line entry on the Form ONRR-2014.
1206.159(c)(2)(iii)..........................  (c)(2)(iii) Upon request by ONRR, the lessee shall submit  AUDIT PROCESS. See note.
                                                all data used to prepare the allowance deduction. . . .
1206.159(e)(2) and (e)(3)....................  (e) Adjustments . . . (2) For lessees processing           Burden covered under OMB Control Number 1012-
                                                production from onshore Federal leases, the lessee must   0004.
                                                submit a corrected Form ONRR-2014 to reflect actual
                                                costs, together with any payment, in accordance with
                                                instructions provided by ONRR. (3) For lessees
                                                processing gas production from leases on the OCS, if the
                                                lessee's estimated processing allowance exceeds the
                                                allowance based on actual costs, the lessee must submit
                                                a corrected Form ONRR-2014 to reflect actual costs,
                                                together with its payment, in accordance with
                                                instructions provided by ONRR . . .
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                             Oil and Gas Valuation Subtotal                                                          117           8,672
--------------------------------------------------------------------------------------------------------------------------------------------------------
    TOTAL....................................  .........................................................  ..............             127           9,198
--------------------------------------------------------------------------------------------------------------------------------------------------------
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 burden associated with 
the collection of information.
    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: Section 3506(c)(2)(A) of the PRA requires each agency to 
``* * * provide 60-day notice in the Federal Register * * * and 
otherwise consult with members of the public and affected agencies 
concerning each proposed collection of information * * *.'' Agencies 
must specifically solicit comments to (a) Evaluate whether the proposed 
collection of information is necessary for the agency to perform its 
duties, including whether the information is useful; (b) evaluate the 
accuracy of the agency's estimate of the burden of the proposed 
collection of information; (c) enhance the quality, usefulness, and 
clarity of the information that ONRR collects; and (d)

[[Page 72109]]

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, we published a 
notice in the Federal Register on March 7, 2013 (78 FR 14824), 
announcing that we would submit this ICR to OMB for approval. The 
notice provided the required 60-day comment period. We received no 
unsolicited comments in response to the notice.
    If you wish to comment in response to this notice, you may send 
your comments to the offices 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, in order to 
ensure maximum consideration, OMB should receive public comments by 
January 2, 2014.
    Public Comment Policy: We will post all comments, including names 
and addresses of respondents, at http://www.regulations.gov. Before 
including your address, phone number, 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 from public view your personal identifying 
information, we cannot guarantee that we will be able to do so.
    Office of the Secretary, Information Collection Clearance Officer: 
David Alspach (202) 219-8526.

    Dated: November 1, 2013.
Gregory J. Gould,
Director, Office of Natural Resources Revenue.
[FR Doc. 2013-27084 Filed 11-29-13; 8:45 am]
BILLING CODE 4310-T2-P