Agency Information Collection Activities: Submitted for Office of Management and Budget Review; Comment Request, 72099-72109 [2013-27084]
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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
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SUMMARY:
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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 https://
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 https://
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
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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
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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
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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. . . .
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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).
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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) .............................
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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?
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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) ........................
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1206.103(a)(1), (a)(2), and
(a)(3).
1206.103(a)(4) ........................
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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, . . .
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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?
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1206.110(g)(2) ........................
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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) .......
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number of
annual
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Hour burden
Burden covered under OMB Control Number
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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) ........................
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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 . . .
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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.
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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) ........................
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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.
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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
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PO 00000
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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
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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
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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.
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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.
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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
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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
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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)
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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 https://
www.regulations.gov. Before including
your address, phone number, email
address, or other personal identifying
information in your comment, you
should be aware that we may make your
entire comment—including your
personal identifying information—
publicly available at any time. While
you can ask us in your comment to
withhold 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
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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
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]]>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]
-----------------------------------------------------------------------
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
https://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 https://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 https://www.regulations.gov. Before
including your address, phone number, email address, or other personal
identifying information in your comment, you should be aware that we
may make your entire comment--including your personal identifying
information--publicly available at any time. While you can ask us in
your comment to withhold 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
