Office of Natural Resources Revenue; Agency Information Collection Activities: 30 CFR Parts 1202, 1206, and 1207, Indian Oil & Gas Valuation-Comment Request, 13619-13629 [2015-05854]

Download as PDF Federal Register / Vol. 80, No. 50 / Monday, March 16, 2015 / Notices Mugu, California, for the purpose of enhancing the species’ survival. Permit No. TE–829554 Applicant: United States Geological Survey, Western Ecological Research Center, San Diego, California The applicant requests a permit amendment to take (harass by survey, capture, handle, mark, tag, and release at point of capture, collect voucher specimens, collect tissue samples and swab, conduct radio telemetry, transport, captive breed and rear, remove infertile eggs from egg masses released from captivity, and release to the wild (translocate) the mountain yellow-legged frog (southern California DPS) (Rana muscosa) in conjunction with surveys and population monitoring activities within Bear Creek, Angeles National Forest, Los Angeles County, and to take (inoculate with symbiotic bacteria) the mountain yellow-legged frog (southern California DPS) in conjunction with chytrid fungal protection throughout the range of the species in California for the purpose of enhancing the species’ survival. Permit No. TE–59158B Rmajette on DSK2VPTVN1PROD with NOTICES Applicant: Darren Newman, North Fork, California The applicant requests a permit to take (capture, collect, and collect vouchers) the Conservancy fairy shrimp (Branchinecta conservatio), longhorn fairy shrimp (Branchinecta longiantenna), San Diego fairy shrimp (Branchinecta sandiegonensis), Riverside fairy shrimp (Streptocephalus woottoni), vernal pool tadpole shrimp (Lepidurus packardi), to take (harass by survey, capture, handle and release) the Fresno kangaroo rat (Dipodomys nitratoides exilis), giant kangaroo rat (Dipodomys ingens), Morro Bay kangaroo rat (Dipodomys heermanni morroensis), Tipton kangaroo rat (Dipodomys nitratoides nitratoides), Pacific pocket mouse (Perognathus longimembris pacificus), and Buena Vista Lake ornate shrew (Sorex ornatus relictus), and to take (harass by survey, capture, handle, and release) the California tiger salamander (Santa Barbara County DPS and Sonoma County DPS) (Ambystoma californiense) in conjunction with survey activities throughout the range of the species in California for the purpose of enhancing the species’ survival. 14:09 Mar 13, 2015 Jkt 235001 Public Comments Applicant: Barbara Kus, San Diego, California Permit No. TE–045994 VerDate Sep<11>2014 13619 We invite public review and comment on each of these recovery permit applications. Comments and materials we receive will be available for public inspection, by appointment, during normal business hours at the address listed in the ADDRESSES section of this notice. Before including your address, phone number, email address, or other personal identifying information in your comment, you should be aware that your entire comment—including your personal identifying information—may be made publicly available at any time. While you can ask us in your comment to withhold your personal identifying information from public review, we cannot guarantee that we will be able to do so. The applicant requests a permit renewal to take (locate and monitor nests, capture, handle, measure, weigh, band, color-band, release, collect body and tail feathers and blood, and remove brown-headed cowbird (Molothrus ater) eggs and chicks from parasitized nests) the least Bell’s vireo (Vireo bellii pusillus), and take (harass by survey, locate and monitor nests, capture, handle, measure, weigh, band, colorband, release, collect body feathers and blood, and remove brown-headed cowbird eggs and chicks from parasitized nests) the southwestern willow flycatcher (Empidonax traillii extimus), in conjunction with population monitoring and genetic studies throughout the range of each species in California, Arizona, and New Mexico for the purpose of enhancing the species’ survival. Michael Long, Acting Regional Director, Pacific Southwest Region, Sacramento, California. [FR Doc. 2015–05900 Filed 3–13–15; 8:45 am] BILLING CODE 4310–55–P Permit No. TE–085026 Applicant: Jeff Steinman, San Francisco, California The applicant requests a permit renewal and amendment to take (locate and monitor nests and remove brownheaded cowbird (Molothrus ater) eggs and chicks from parasitized nests) the least Bell’s vireo (Vireo bellii pusillus), take (harass by survey, locate and monitor nests, and remove brownheaded cowbird eggs and chicks from parasitized nests) the southwestern willow flycatcher (Empidonax traillii extimus), and take (harass by survey) the yellow-billed cuckoo (western DPS) (Coccyzus americanus) in conjunction with survey and population monitoring throughout the range of the species in California and Arizona for the purpose of enhancing the species’ survival. Permit No. TE–027427 Applicant: Jeff A. Alvarez, Sacramento, California The applicant requests a permit amendment to take (collect soil containing federally listed fairy shrimp cysts (eggs), translocate, and inoculate cysts into restored vernal pools) the longhorn fairy shrimp (Branchinecta longiantenna) in conjunction with vernal pool restoration and population enhancement activities at the Kellogg Creek Vernal Pool Complex, Los Vaqueros Watershed, Contra Costa County, California, for the purpose of enhancing the species survival. PO 00000 Frm 00106 Fmt 4703 Sfmt 4703 DEPARTMENT OF THE INTERIOR [Docket No. ONRR–2011–0021; DS63610000 DR2PS0000.CH7000 145D0102R2] Office of Natural Resources Revenue; Agency Information Collection Activities: 30 CFR Parts 1202, 1206, and 1207, Indian Oil & Gas Valuation— Comment Request Office of Natural Resources Revenue (ONRR), Interior. ACTION: Notice of extension. AGENCY: To comply with the Paperwork Reduction Act of 1995 (PRA), ONRR is inviting comments on a collection of information requests that we will submit to the Office of Management and Budget (OMB) for review and approval. This Information Collection Request (ICR) covers the paperwork requirements in the regulations under title 30, Code of Federal Regulations (CFR), parts 1202, 1206, and 1207. Also, there are five forms associated with this information collection. SUMMARY: Submit written comments on or before May 15, 2015. ADDRESSES: You may submit comments on this ICR to ONRR by using one of the following three methods (please reference ‘‘ICR 1012–0002’’ in your comments): 1. Electronically go to https:// www.regulations.gov. In the entry titled ‘‘Enter Keyword or ID,’’ enter ‘‘ONRR– 2011–0021’’ and then click ‘‘Search.’’ DATES: E:\FR\FM\16MRN1.SGM 16MRN1 13620 Federal Register / Vol. 80, No. 50 / Monday, March 16, 2015 / Notices Follow the instructions to submit public comments. ONRR will post all comments. 2. Mail comments to Mr. Luis Aguilar, Regulatory Specialist, ONRR, P.O. Box 25165, MS 61030A, Denver, Colorado 80225–0165. 3. Hand-carry or mail comments, using an overnight courier service, to ONRR. Our courier address is Building 85, Room A–614, Denver Federal Center, West 6th Ave. and Kipling St., Denver, Colorado 80225. FOR FURTHER INFORMATION CONTACT: For any questions, contact Mr. Luis Aguilar, telephone (303) 231–3418, or email at Luis.Aguilar@onrr.gov. You may also contact Mr. Aguilar to obtain copies, at no cost, of (1) the ICR, (2) any associated forms, and (3) the regulations that require us to collect the information. SUPPLEMENTARY INFORMATION: I. Abstract The Secretary of the United States Department of the Interior is responsible for collecting royalties from lessees who produce minerals from leased 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. ONRR performs the royalty management functions for the Secretary. 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/PubLaws/ default.htm. Indian tribes and individual Indian mineral owners receive all royalties generated from their lands. Determining product valuation is essential to ensure that Indian tribes and individual Indian mineral owners receive payment on the full value of the minerals removed from their lands. Failure to collect the data described in this information collection could result in the undervaluation of leased minerals on Indian lands. Rmajette on DSK2VPTVN1PROD with NOTICES Indian Oil Regulations at 30 CFR part 1206, subpart B, govern the valuation for royalty purposes of all oil produced from Indian oil and gas leases (tribal and allotted), except leases on the Osage Indian Reservation, and are consistent with mineral leasing laws, other applicable laws, and lease terms. Generally, the regulations provide that lessees determine the value of oil based upon the higher of (1) the gross proceeds under an arm’s-length VerDate Sep<11>2014 14:09 Mar 13, 2015 Jkt 235001 contract; or (2) major portion analysis. The value determined by the lessee may be eligible for a transportation allowance. From information collected on Form ONRR–4110, Oil Transportation Allowance Report, ONRR and tribal audit personnel evaluate (1) whether lessee-reported transportation allowances are within regulatory allowance limitations and calculated in accordance with applicable regulations; and (2) whether the lessees reported and paid the proper amount of royalties. Indian Gas Regulations at 30 CFR part 1206, subpart E, govern the valuation for royalty purposes of natural gas produced from Indian oil and gas leases (tribal and allotted). The regulations apply to all gas production from Indian oil and gas leases, except leases on the Osage Indian Reservation. Most Indian leases contain the requirement to perform accounting for comparison (dual accounting) for gas produced from the lease. Lessees must elect to perform actual dual accounting as defined in 30 CFR 1206.176 or alternative dual accounting as defined in 30 CFR 1206.173. Lessees use Form ONRR–4410, Accounting for Comparison [Dual Accounting], to certify that dual accounting is not required on an Indian lease or to make an election for actual or alternative dual accounting for Indian leases. The regulations require lessees to submit Form ONRR–4411, Safety Net Report, when gas production from an Indian oil or gas lease is sold beyond the first index pricing point. The safety net calculation establishes the minimum value, for royalty purposes, of natural gas production from Indian oil and gas leases. This reporting requirement ensures that Indian lessors receive all royalties due and aids ONRR compliance efforts. From information collected on Form ONRR–4295, Gas Transportation Allowance Report, ONRR and tribal audit personnel evaluate (1) whether lessee-reported transportation allowances are within regulatory allowance limitations and calculated in accordance with applicable regulations; and (2) whether the lessees reported and paid the proper amount of royalties. From information collected on Form ONRR–4109, Gas Processing Allowance Summary Report, ONRR and tribal audit personnel evaluate (1) whether lesseereported processing allowances are within regulatory allowance limitations and calculated in accordance with applicable regulations; and (2) whether PO 00000 Frm 00107 Fmt 4703 Sfmt 4703 the lessees reported and paid the proper amount of royalties. Indian Oil and Gas Form ONRR–4393, Request to Exceed Regulatory Allowance Limitation, is used for both Federal and Indian leases. Most of the burden hours are incurred on Federal leases; therefore, the form is approved under ICR 1012–0005, pertaining to Federal oil and gas leases. However, we include a discussion of the form in this ICR, as well as the burden hours for Indian leases. To request permission to exceed a regulatory allowance limit, lessees must (1) submit a letter to ONRR explaining why a higher allowance limit is necessary; and (2) provide supporting documentation, including a completed Form ONRR– 4393. This form provides ONRR with the data necessary to make a decision whether to approve or deny the request and track deductions on royalty reports. OMB Approval ONRR will request OMB approval to continue to collect this information. If ONRR does not collect this information, this would limit the Secretary’s ability to discharge fiduciary duties and may also result in the inability to confirm the accurate royalty value. ONRR protects the proprietary information that we receive, and we do not collect items of a sensitive nature. ONRR requires lessees to respond to this ICR because the information collected is essential in order to determine when net profit share payments are due and to ensure that lessees properly value and pay royalties or net profit share payments. The requirement to respond is mandatory for Form ONRR–4410, Accounting for Comparison [Dual Accounting], and Form ONRR–4411, Safety Net Report, under certain circumstances. And, the lessees are required to submit Forms ONRR–4109, ONRR–4110, and ONRR– 4295 in order to obtain a benefit. II. Data Title: 30 CFR parts 1202, 1206, and 1207, Indian Oil and Gas Valuation. OMB Control Number: 1012–0002. Bureau Form Number: Forms ONRR– 4109, ONRR–4110, ONRR–4295, ONRR– 4410, and ONRR–4411. Frequency of Response: Annually and on occasion. Estimated Number and Description of Respondents: 148 Indian lessees. Estimated Annual Reporting and Recordkeeping ‘‘Hour’’ Burden: 2,269 hours. We have not included in our estimates certain requirements performed in the normal course of E:\FR\FM\16MRN1.SGM 16MRN1 13621 Federal Register / Vol. 80, No. 50 / Monday, March 16, 2015 / Notices business and considered usual and customary. The following chart shows the estimated burden hours by CFR section and paragraph: RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS 30 CFR Reporting and recordkeeping requirement Average number of annual responses Hour burden Annual burden hours Part 1202—ROYALTIES Subpart C—Federal and Indian Oil 1202.101 ..................... Standards for reporting and paying royalties ..................................... Oil volumes are to be reported in barrels of clean oil of 42 standard U.S. gallons (231 cubic inches each) at 60 °F. . . . Burden covered under OMB Control Number 1012–0004 (expires 12/31/2012). Burden covered under § 1210.52. Subpart J—Gas Production From Indian Leases 1202.551(b) ................ How do I determine the volume of production for which I must pay royalty if my lease is not in an approved Federal unit or communitization agreement (AFA)? (b) You and all other persons paying royalties on the lease must report and pay royalties based on your takes. . . . 1202.551(c) ................. (c) You and all other persons paying royalties on the lease may ask ONRR for permission. . . . to report entitlements . . . 1202.558(a) and (b) .... What standards do I use to report and pay royalties on gas? .......... (a) You must report gas volumes as follows: . . . ............................ (b) You must report residue gas and gas plant product volumes as follows: . . . Burden covered under OMB Control Number 1012–0004. Burden covered under § 1210.52. 1 1 1 Burden covered under OMB Control Number 1012–0004. Burden covered under § 1210.52. Part 1206—PRODUCT VALUATION Subpart B—Indian Oil Transportation allowances—general .................................................. (b)(2) Upon request of a lessee, ONRR may approve a transportation allowance deduction in excess of the limitation prescribed by paragraph (b)(1) of this section. . . . An application for exception (using Form ONRR–4393, Request to Exceed Regulatory Allowance Limitation) must contain all relevant and supporting documentation necessary for ONRR to make a determination. . . . 1206.57(a)(1)(i) ........... Determination of transportation allowances ....................................... (a) Arm’s-length transportation contracts. (1)(i) . . . The lessee shall have the burden of demonstrating that its contract is arm’s-length. AUDIT PROCESS. See note. 1206.57(a)(1)(i) ........... (a) Arm’s-length transportation contracts ........................................... (1)(i) . . . Before any deduction may be taken, the lessee must submit a completed page one of Form ONRR–4110 (and Schedule 1), Oil Transportation Allowance Report . . . Burden covered under § 1206.57(c)(1)(i) and (iii). 1206.57(a)(1)(iii) ......... (a) Arm’s-length transportation contracts ........................................... (1)(iii) . . . When ONRR determines that the value of the transportation may be unreasonable, ONRR will notify the lessee and give the lessee an opportunity to provide written information justifying the lessee’s transportation costs. AUDIT PROCESS. See note. 1206.57(a)(2)(i) ........... (a) Arm’s-length transportation contracts ........................................... (2)(i) . . . Except as provided in this paragraph, no allowance may be taken for the costs of transporting lease production which is not royalty-bearing without ONRR approval. Burden covered under § 1206.57(a)(3). 1206.57(a)(2)(ii) .......... Rmajette on DSK2VPTVN1PROD with NOTICES 1206.56(b)(2) .............. (a) Arm’s-length transportation contracts ........................................... (2)(ii) Notwithstanding the requirements of paragraph (i), the lessee may propose to ONRR a cost allocation method on the basis of the values of the products transported. . . . 20 1 20 1206.57(a)(3) .............. (a) Arm’s-length transportation contracts ........................................... (3) If an arm’s-length transportation contract includes both gaseous and liquid products, and the transportation costs attributable to each product cannot be determined from the contract, the lessee shall propose an allocation procedure to ONRR. . . . The lessee shall submit all available data to support its proposal. . . . 40 1 40 VerDate Sep<11>2014 14:09 Mar 13, 2015 Jkt 235001 PO 00000 Frm 00108 Fmt 4703 Sfmt 4703 4 E:\FR\FM\16MRN1.SGM 16MRN1 1 4 13622 Federal Register / Vol. 80, No. 50 / Monday, March 16, 2015 / Notices RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued Average number of annual responses 1206.57(b)(1) .............. (b) Non-arm’s-length or no contract ................................................... (1) . . . A transportation allowance may be claimed retroactively for a period of not more than 3 months prior to the first day of the month that Form ONRR–4110 is filed with ONRR, unless ONRR approves a longer period upon a showing of good cause by the lessee. . . . Burden covered under § 1206.57(c)(2)(i) and (iii). 1206.57(b)(1) .............. (b) Non-arm’s-length or no contract ................................................... (1) . . . When necessary or appropriate, ONRR may direct a lessee to modify its actual transportation allowance deduction. Burden covered under OMB Control Number 1012–0004. Burden covered under § 1210.52. 1206.57(b)(2)(iv) ......... (b) Non-arm’s-length or no contract ................................................... (2)(iv) . . . After a lessee has elected to use either method for a transportation system, the lessee may not later elect to change to the other alternative without approval of ONRR. 20 1 20 1206.57(b)(2)(iv)(A) .... (b) Non-arm’s-length or no contract ................................................... (2)(iv)(A) . . . After an election is made, the lessee may not change methods without ONRR approval. . . . 20 1 20 1206.57(b)(3)(i) ........... (b) Non-arm’s-length or no contract ................................................... (3)(i) . . . Except as provided in this paragraph, the lessee may not take an allowance for transporting lease production which is not royalty bearing without ONRR approval. 40 1 40 1206.57(b)(3)(ii) .......... (b) Non-arm’s-length or no contract ................................................... (3)(ii) Notwithstanding the requirements of paragraph (i), the lessee may propose to ONRR a cost allocation method on the basis of the values of the products transported. . . . 20 1 20 1206.57(b)(4) .............. (b) Non-arm’s-length or no contract ................................................... (4) Where both gaseous and liquid products are transported through the same transportation system, the lessee shall propose a cost allocation procedure to ONRR. . . . The lessee shall submit all available data to support its proposal. . . . 20 1 20 1206.57(b)(5) .............. (b) Non-arm’s-length or no contract ................................................... (5) A lessee may apply to ONRR for an exception from the requirement that it compute actual costs in accordance with paragraphs (b)(1) through (b)(4) of this section. . . . 20 1 20 1206.57(c)(1)(i) ........... (c) Reporting requirements ................................................................. (1) Arm’s-length contracts. (i) With the exception of those transportation allowances specified in paragraphs (c)(1)(v) and (c)(1)(vi) of this section, the lessee shall submit page one of the initial Form ONRR–4110 (and Schedule 1), Oil Transportation Allowance Report, prior to, or at the same time as, the transportation allowance determined, under an arm’s-length contract, is reported on Form ONRR–2014, Report of Sales and Royalty Remittance. . . . 4 1 4 1206.57(c)(1)(iii) ......... Rmajette on DSK2VPTVN1PROD with NOTICES Reporting and recordkeeping requirement (c) Reporting requirements ................................................................. (1) Arm’s-length contracts. (iii) After the initial reporting period and for succeeding reporting periods, lessees must submit page one of Form ONRR–4110 (and Schedule 1) within 3 months after the end of the calendar year, or after the applicable contract or rate terminates or is modified or amended, whichever is earlier, unless ONRR approves a longer period (during which period the lessee shall continue to use the allowance from the previous reporting period). 4 1 4 1206.57(c)(1)(iv) ......... (c) Reporting requirements ................................................................. (1) Arm’s-length contracts. (iv) ONRR may require that a lessee submit arm’s-length transportation contracts, production agreements, operating agreements, and related documents. Documents shall be submitted within a reasonable time, as determined by ONRR. VerDate Sep<11>2014 14:09 Mar 13, 2015 Jkt 235001 PO 00000 Frm 00109 Fmt 4703 Sfmt 4703 Hour burden Annual burden hours 30 CFR E:\FR\FM\16MRN1.SGM AUDIT PROCESS. See note. 16MRN1 13623 Federal Register / Vol. 80, No. 50 / Monday, March 16, 2015 / Notices RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued Average number of annual responses 1206.57(c)(2)(i) ........... (c) Reporting requirements ................................................................. (2) Non-arm’s-length or no contract. (i) With the exception of those transportation allowances specified in paragraphs (c)(2)(v), (c)(2)(vii) and (c)(2)(viii) of this section, the lessee shall submit an initial Form ONRR–4110 prior to, or at the same time as, the transportation allowance determined under a non-arm’s-length contract or no-contract situation is reported on Form ONRR–2014. . . . The initial report may be based upon estimated costs. 6 1 6 1206.57(c)(2)(iii) ......... (c) Reporting requirements ................................................................. (2) Non-arm’s-length or no contract. (iii) For calendar-year reporting periods succeeding the initial reporting period, the lessee shall submit a completed Form ONRR– 4110 containing the actual costs for the previous reporting period. If oil transportation is continuing, the lessee shall include on Form ONRR–4110 its estimated costs for the next calendar year. . . . ONRR must receive the Form ONRR–4110 within 3 months after the end of the previous reporting period, unless ONRR approves a longer period (during which period the lessee shall continue to use the allowance from the previous reporting period). 6 1 6 1206.57(c)(2)(iv) ......... (c) Reporting requirements ................................................................. (2) Non-arm’s-length or no contract. (iv) For new transportation facilities or arrangements, the lessee’s initial Form ONRR–4110 shall include estimates of the allowable oil transportation costs for the applicable period. . . . Burden covered under § 1206.57(c)(2)(i). 1206.57(c)(2)(v) .......... (c) Reporting requirements ................................................................. (2) Non-arm’s-length or no contract. (v) . . . only those allowances that have been approved by ONRR in writing . . . Burden covered under § 1206.57(c)(2)(i). 1206.57(c)(2)(vi) ......... (c) Reporting requirements ................................................................. (2) Non-arm’s-length or no contract. (vi) Upon request by ONRR, the lessee shall submit all data used to prepare its Form ONRR–4110. The data shall be provided within a reasonable period of time, as determined by ONRR. AUDIT PROCESS. See note. 1206.57(c)(4) and (e)(2). (c) Reporting requirements ................................................................. (4) Transportation allowances must be reported as a separate line item on Form ONRR–2014, . . . (e) Adjustments. (2) For lessees transporting production from Indian leases, the lessee must submit a corrected Form ONRR–2014 to reflect actual costs, . . . Burden covered under OMB Control Number 1012–0004. Burden covered under § 1210.52. 1206.59 ....................... May I ask ONRR for valuation guidance? ......................................... You may ask ONRR for guidance in determining value. You may propose a value method to ONRR. Submit all available data related to your proposal and any additional information ONRR deems necessary. . . . 1206.61(a) and (b) ...... Rmajette on DSK2VPTVN1PROD with NOTICES Reporting and recordkeeping requirement What records must I keep and produce? ........................................... (a) On request, you must make available sales, volume, and transportation data for production you sold, purchased, or obtained from the field or area. You must make this data available to ONRR, Indian representatives, or other authorized persons. (b) You must retain all data relevant to the determination of royalty value. . . . VerDate Sep<11>2014 14:09 Mar 13, 2015 Jkt 235001 PO 00000 Frm 00110 Fmt 4703 Sfmt 4703 Hour burden Annual burden hours 30 CFR E:\FR\FM\16MRN1.SGM 20 1 AUDIT PROCESS. See note. 16MRN1 20 13624 Federal Register / Vol. 80, No. 50 / Monday, March 16, 2015 / Notices RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued 30 CFR Reporting and recordkeeping requirement Average number of annual responses Hour burden Annual burden hours Part 1206—PRODUCT VALUATION Subpart E—Indian Gas How do I value gas produced from leases in an index zone? .......... (b) Valuing residue gas and gas before processing. (1)(ii) Gas production that you certify on Form ONRR–4410, . . . is not processed before it flows into a pipeline with an index but which may be processed later; . . . 4 58 232 1206.172(e)(6)(i) and (iii). (e) Determining the minimum value for royalty purposes of gas sold beyond the first index pricing point. (6)(i) You must report the safety net price for each index zone to ONRR on Form ONRR–4411, Safety Net Report, no later than June 30 following each calendar year; . . . (iii) ONRR may order you to amend your safety net price within one year from the date your Form ONRR–4411 is due or is filed, whichever is later. . . . 3 11 33 1206.172(e)(6)(ii) ........ (e) Determining the minimum value for royalty purposes of gas sold beyond the first index pricing point. (6)(ii) You must pay and report on Form ONRR–2014 additional royalties due no later than June 30 following each calendar year; . . . 1206.172(f)(1)(ii), (f)(2), and (f)(3). (f ) Excluding some or all tribal leases from valuation under this section. (1) An Indian tribe may ask ONRR to exclude some or all of its leases from valuation under this section. . . . (ii) If an Indian tribe requests exclusion from an index zone for less than all of its leases, ONRR will approve the request only if the excluded leases may be segregated into one or more groups based on separate fields within the reservation. (2) An Indian tribe may ask ONRR S to terminate exclusion of its leases from valuation under this section. . . . (3) The Indian tribe’s request to ONRR under either paragraph (f)(1) or (2) of this section must be in the form of a tribal resolution. . . . 40 1 40 1206.173(a)(1) ............ How do I calculate the alternative methodology for dual accounting? (a) Electing a dual accounting method. (1) . . . You may elect to perform the dual accounting calculation according to either § 1206.176(a) (called actual dual accounting), or paragraph (b) of this section (called the alternative methodology for dual accounting). 2 12 24 1206.173(a)(2) ............ (a) Electing a dual accounting method .............................................. (2) You must make a separate election to use the alternative methodology for dual accounting for your Indian leases in each ONRR S-designated area. . . . Burden covered under § 1206.173(a)(1). 1206.174(a)(4)(ii) ........ Rmajette on DSK2VPTVN1PROD with NOTICES 1206.172(b)(1)(ii) ........ How do I value gas production when an index-based method cannot be used? (a) Situations in which an index-based method cannot be used. (4)(ii) If the major portion value is higher, you must submit an amended Form ONRR–2014 to ONRR by the due date specified in the written notice from ONRR of the major portion value. . . . Burden covered under OMB Control Number 1012–0004. Burden covered under § 1210.52. VerDate Sep<11>2014 14:09 Mar 13, 2015 Jkt 235001 PO 00000 Frm 00111 Fmt 4703 Sfmt 4703 Burden covered under OMB Control Number 1012–0004. Burden covered under § 1210.52. E:\FR\FM\16MRN1.SGM 16MRN1 13625 Federal Register / Vol. 80, No. 50 / Monday, March 16, 2015 / Notices RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued 30 CFR Reporting and recordkeeping requirement Average number of annual responses Hour burden Annual burden hours 1206.174(b)(1)(i) and (iii); (b)(2); (d)(2). (b) Arm’s-length contracts .................................................................. (1)(i) You have the burden of demonstrating that your contract is arm’s-length. . . . (iii) . . . In these circumstances, ONRR will notify you and give you an opportunity to provide written information justifying your value. . . . (2) ONRR may require you to certify that your arm’s-length contract provisions include all of the consideration the buyer pays, either directly or indirectly, for the gas, residue gas, or gas plant product. (d) Supporting data. (2) You must make all such data available upon request to the authorized ONRR or Indian representatives, to the Office of the Inspector General of the Department, or other authorized persons. . . . AUDIT PROCESS. See note. 1206.174(d) ................ (d) Supporting data. If you determine the value of production under paragraph (c) of this section, you must retain all data relevant to determination of royalty value. Burden covered under OMB Control Number 1012–0004. 1206.174(f) ................. (f) Value guidance. You may ask ONRR for guidance in determining value. You may propose a valuation method to ONRR. Submit all available data related to your proposal and any additional information ONRR deems necessary. . . . 40 1 40 1206.175(d)(4) ............ How do I determine quantities and qualities of production for computing royalties? (d)(4) You may request ONRR approval of other methods for determining the quantity of residue gas and gas plant products allocable to each lease. . . . 20 1 20 1206.176(b) ................ How do I perform accounting for comparison? .................................. (b) If you are required to account for comparison, you may elect to use the alternative dual accounting methodology provided for in § 1206.173 instead of the provisions in paragraph (a) of this section. Burden covered under § 1206.173(a)(1). 1206.176(c) ................. (c) . . . If you do not perform dual accounting, you must certify to ONRR that gas flows into such a pipeline before it is processed. Burden covered under § 1206.172(b)(1)(ii). Transportation Allowances What general requirements regarding transportation allowances apply to me? (c)(2) If you ask ONRR, ONRR may approve a transportation allowance deduction in excess of the limitation in paragraph (c)(1) of this section. . . . (3) Your application for exception (using Form ONRR–4393, Request to Exceed Regulatory Allowance Limitation) must contain all relevant and supporting documentation necessary for ONRR to make a determination. 1206.178(a)(1)(i) ......... Rmajette on DSK2VPTVN1PROD with NOTICES 1206.177(c)(2) and (c)(3). How do I determine a transportation allowance? .............................. (a) Determining a transportation allowance under an arm’s-length contract. (1)(i) . . . You are required to submit to ONRR a copy of your arm’s-length transportation contract(s) and all subsequent amendments to the contract(s) within 2 months of the date ONRR receives your report which claims the allowance on the Form ONRR–2014. VerDate Sep<11>2014 14:09 Mar 13, 2015 Jkt 235001 PO 00000 Frm 00112 Fmt 4703 Sfmt 4703 Burden covered under § 1206.56(b)(2). E:\FR\FM\16MRN1.SGM 1 16MRN1 18 18 13626 Federal Register / Vol. 80, No. 50 / Monday, March 16, 2015 / Notices RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued Annual burden hours 1206.178(a)(1)(iii) ....... (a) Determining a transportation allowance under an arm’s-length contract. (1)(iii) If ONRR determines that the consideration paid under an arm’s-length transportation contract does not reflect the value of the transportation because of misconduct by or between the contracting parties . . . In these circumstances, ONRR will notify you and give you an opportunity to provide written information justifying your transportation costs. 1206.178(a)(2)(i) and (ii). (a) Determining a transportation allowance under an arm’s-length contract. (2)(i) . . . you cannot take an allowance for the costs of transporting lease production that is not royalty bearing without ONRR approval, or without lessor approval on tribal leases. (ii) As an alternative to paragraph (a)(2)(i) of this section, you may propose to ONRR a cost allocation method based on the values of the products transported. . . . 20 1 20 1206.178(a)(3)(i) and (ii). (a) Determining a transportation allowance under an arm’s-length contract. (3)(i) If your arm’s-length transportation contract includes both gaseous and liquid products and the transportation costs attributable to each cannot be determined from the contract, you must propose an allocation procedure to ONRR. . . . (ii) You are required to submit all relevant data to support your allocation proposal. . . . 40 1 40 1206.178(b)(1)(ii) ........ (b) Determining a transportation allowance under a non-arm’slength contract or no contract. (1)(ii) . . . You must submit the actual cost information to support the allowance to ONRR on Form ONRR–4295, Gas Transportation Allowance Report, within 3 months after the end of the 12month period to which the allowance applies. . . . 15 5 75 1206.178(b)(2)(iv) ....... (b) Determining a transportation allowance under a non-arm’slength contract or no contract. (2)(iv) You may use either depreciation with a return on undepreciated capital investment or a return on depreciable capital investment. . . . you may not later elect to change to the other alternative without ONRR approval. 20 1 20 1206.178(b)(2)(iv)(A) .. (b) Determining a transportation allowance under a non-arm’slength contract or no contract. (2)(iv)(A) . . . Once you make an election, you may not change methods without ONRR approval. . . . 20 1 20 1206.178(b)(3)(i) ......... (b) Determining a transportation allowance under a non-arm’slength contract or no contract. (3)(i) . . . Except as provided in this paragraph, you may not take an allowance for transporting a product that is not royalty bearing without ONRR approval. 40 1 40 1206.178(b)(3)(ii) ........ (b) Determining a transportation allowance under a non-arm’slength contract or no contract. (3)(ii) As an alternative to the requirements of paragraph (b)(3)(i) of this section, you may propose to ONRR a cost allocation method based on the values of the products transported. . . . 20 1 20 1206.178(b)(5) ............ Rmajette on DSK2VPTVN1PROD with NOTICES Reporting and recordkeeping requirement (b) Determining a transportation allowance under a non-arm’slength contract or no contract. (5) If you transport both gaseous and liquid products through the same transportation system, you must propose a cost allocation procedure to ONRR. . . . You are required to submit all relevant data to support your proposal. . . . 40 1 40 1206.178(d)(1) ............ (d) Reporting your transportation allowance ...................................... (1) If ONRR requests, you must submit all data used to determine your transportation allowance . . . VerDate Sep<11>2014 14:09 Mar 13, 2015 Jkt 235001 PO 00000 Frm 00113 Fmt 4703 Sfmt 4703 Hour burden Average number of annual responses 30 CFR E:\FR\FM\16MRN1.SGM AUDIT PROCESS. See note. AUDIT PROCESS. See note. 16MRN1 13627 Federal Register / Vol. 80, No. 50 / Monday, March 16, 2015 / Notices RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued 30 CFR 1206.178(d)(2), (e), and (f)(1). Reporting and recordkeeping requirement Average number of annual responses Hour burden (d) Reporting your transportation allowance ...................................... (2) You must report transportation allowances as a separate entry on Form ONRR–2014. . . . (e) Adjusting incorrect allowances. If for any month the transportation allowance you are entitled to is less than the amount you took on Form ONRR–2014, you are required to report and pay additional royalties due, plus interest computed under 30 CFR 1218.54 from the first day of the first month you deducted the improper transportation allowance until the date you pay the royalties due. . . . (f) Determining allowable costs for transportation allowances. . . . (1) Firm demand charges paid to pipelines. . . . You must modify the Form ONRR–2014 by the amount received or credited for the affected reporting period. Annual burden hours Burden covered under OMB Control Number 1012–0004. Burden covered under § 1210.52. Processing Allowances How do I determine an actual processing allowance? ...................... (a) Determining a processing allowance if you have an arm’s-length processing contract. (1)(i) . . . You have the burden of demonstrating that your contract is arm’s-length. You are required to submit to ONRR a copy of your arm’s-length contract(s) and all subsequent amendments to the contract(s) within 2 months of the date ONRR receives your first report that deducts the allowance on the Form ONRR–2014. 1206.180(a)(1)(iii) ....... (a) Determining a processing allowance if you have an arm’s-length processing contract. (1)(iii) If ONRR determines that the consideration paid under an arm’s-length processing contract does not reflect the value of the processing because of misconduct by or between the contracting parties . . . In these circumstances, ONRR will notify you and give you an opportunity to provide written information justifying your processing costs. 1206.180(a)(3) ............ (a) Determining a processing allowance if you have an arm’s-length processing contract. (3) If your arm’s-length processing contract includes more than one gas plant product and the processing costs attributable to each product cannot be determined from the contract, you must propose an allocation procedure to ONRR. . . . You are required to submit all relevant data to support your proposal. . . . 40 1 40 1206.180(b)(1)(ii) ........ (b) Determining a processing allowance if you have a non-arm’slength contract or no contract. (1)(ii) . . . You must submit the actual cost information to support the allowance to ONRR on Form ONRR–4109, Gas Processing Allowance Summary Report, within 3 months after the end of the 12-month period for which the allowance applies. . . . 20 12 1200 1206.180(b)(2)(iv) ....... (b) Determining a processing allowance if you have a non-arm’slength contract or no contract. (2)(iv) You may use either depreciation with a return on undepreciable capital investment or a return on depreciable capital investment. . . . you may not later elect to change to the other alternative without ONRR approval. 20 1 20 1206.180(b)(2)(iv) (A) Rmajette on DSK2VPTVN1PROD with NOTICES 1206.180(a)(1)(i) ......... (b) Determining a processing allowance if you have a non-arm’slength contract or no contract. (2)(iv)(A) . . . Once you make an election, you may not change methods without ONRR approval. . . . 20 1 20 1206.180(b)(3) ............ (b) Determining a processing allowance if you have a non-arm’slength contract or no contract. (3) Your processing allowance under this paragraph (b) must be determined based upon a calendar year or other period if you and ONRR agree to an alternative. 20 1 20 VerDate Sep<11>2014 14:09 Mar 13, 2015 Jkt 235001 PO 00000 Frm 00114 Fmt 4703 Sfmt 4703 E:\FR\FM\16MRN1.SGM 1 2 2 AUDIT PROCESS. See note. 16MRN1 13628 Federal Register / Vol. 80, No. 50 / Monday, March 16, 2015 / Notices RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued Hour burden Average number of annual responses Annual burden hours 30 CFR Reporting and recordkeeping requirement 1206.180(c)(1) ............ (c) Reporting your processing allowance ........................................... (1) If ONRR requests, you must submit all data used to determine your processing allowance. . . . AUDIT PROCESS. See note. 1206.180(c)(2) and (d) (c) Reporting your processing allowance ........................................... (2) You must report gas processing allowances as a separate entry on the Form ONRR–2014. . . . (d) Adjusting incorrect processing allowances. If for any month the gas processing allowance you are entitled to is less than the amount you took on Form ONRR–2014, you are required to pay additional royalties, plus interest computed under 30 CFR 1218.54 from the first day of the first month you deducted a processing allowance until the date you pay the royalties due. . . . Burden covered under OMB Control Number 1012–0004. Burden covered under § 1210.52. 1206.181(c) ................. How do I establish processing costs for dual accounting purposes when I do not process the gas? (c) A proposed comparable processing fee submitted to either the tribe and ONRR (for tribal leases) or ONRR (for allotted leases) with your supporting documentation submitted to ONRR. If ONRR does not take action on your proposal within 120 days, the proposal will be deemed to be denied and subject to appeal to the ONRR Director under 30 CFR part 1290. 40 1 40 PART 1207—SALES AGREEMENTS OR CONTRACTS GOVERNING THE DISPOSAL OF LEASE PRODUCTS Subpart A—General Provisions 1207.4(b) .................... Contracts made pursuant to old form leases ..................................... (b) The stipulation, the substance of which must be included in the contract, or be made the subject matter of a separate instrument properly identifying the leases affected thereby, is as follows . . . AUDIT PROCESS. See note. 1207.5 ......................... Contract and sales agreement retention ............................................ Copies of all sales contracts, posted price bulletins, etc., and copies of all agreements, other contracts, or other documents which are relevant to the valuation of production are to be maintained by the lessee and made available upon request during normal working hours to authorized ONRR, State or Indian representatives, other ONRR or BLM officials, auditors of the General Accounting Office, or other persons authorized to receive such documents, or shall be submitted to ONRR within a reasonable period of time, as determined by ONRR. Any oral sales arrangement negotiated by the lessee must be placed in written form and retained by the lessee. Records shall be retained in accordance with 30 CFR part 1212. AUDIT PROCESS. See note. Total Burden ........ ........................................................................................................ 148 2,269 Rmajette on DSK2VPTVN1PROD with NOTICES Note: AUDIT PROCESS—The Office of Regulatory Affairs determined that the audit process is exempt from the Paperwork Reduction Act of 1995 because ONRR staff asks non-standard questions to resolve exceptions. Estimated Annual Reporting and Recordkeeping ‘‘Non-hour’’ Cost Burden: We have identified no ‘‘nonHour’’ cost burdens. Public Disclosure Statement: The PRA (44 U.S.C. 3501 et seq.) provides that an agency may not conduct or sponsor— and a person is not required to respond to—a collection of information unless it displays a currently valid OMB control number. III. Request for 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 VerDate Sep<11>2014 14:09 Mar 13, 2015 Jkt 235001 members of the public and affected agencies concerning each proposed collection of information . . .’’ Agencies must specifically solicit comments to: (1) Evaluate whether the proposed collection of information is necessary for the agency to perform its duties, including whether the information is useful; (2) evaluate the accuracy of the agency’s estimate of the burden of the proposed collection of information; (3) enhance the quality, usefulness, and clarity of the information that ONRR collects; and (4) minimize the burden on the respondents, including the use of automated collection techniques or other forms of information technology. PO 00000 Frm 00115 Fmt 4703 Sfmt 4703 The PRA also requires agencies to estimate the total annual reporting ‘‘non-hour cost’’ burden to respondents or record-keepers resulting from the collection of information. If you have costs to generate, maintain, and disclose this information, you should comment and provide your total capital and startup cost components or annual operation, maintenance, and purchase of service components. You should describe the methods that you use to estimate (1) major cost factors, including system and technology acquisition, (2) expected useful life of capital equipment, (3) discount rate(s), and (4) the period over which you incur costs. E:\FR\FM\16MRN1.SGM 16MRN1 Federal Register / Vol. 80, No. 50 / Monday, March 16, 2015 / Notices Capital and startup costs include, among other items, computers and software that you purchase to prepare for collecting information and monitoring, sampling, and testing equipment, and record-storage facilities. Generally, your estimates should not include equipment or services purchased (i) before October 1, 1995; (ii) to comply with requirements not associated with the information collection; (iii) for reasons other than to provide information or keep records for the Federal Government; or (iv) as part of customary and usual business or private practices. We will summarize written responses to this notice and address them in our ICR submission for OMB approval, including appropriate adjustments to the estimated burden. We will provide a copy of the ICR to you, free of charge, upon request. We also will post the ICR at https://www.onrr.gov/Laws_R_D/ FRNotices/ICR0103.htm. Public Comment Policy: ONRR will post all comments, including names and addresses of respondents at https:// www.regulations.gov. Before including Personally Identifiable Information (PII), such as your address, phone number, email address, or other personal information in your comment(s), you should be aware that your entire comment (including PII) may be made available to the public at any time. While you may ask us, in your comment, to withhold PII from public view, we cannot guarantee that we will be able to do so. Dated: March 3, 2015. Gregory J. Gould, Director, Office of Natural Resources Revenue. [FR Doc. 2015–05854 Filed 3–13–15; 8:45 am] BILLING CODE 4335–30–P INTERNATIONAL TRADE COMMISSION Rmajette on DSK2VPTVN1PROD with NOTICES [Investigation No. 337–TA–893] Certain Flash Memory Chips and Products Containing the Same Commission Determination Not To Review an Initial Determination Granting a Joint Motion To Terminate the Investigation in Its Entirety Based Upon Settlement; Termination of the Investigation U.S. International Trade Commission. ACTION: Notice. AGENCY: Notice is hereby given that the U.S. International Trade Commission has determined not to SUMMARY: VerDate Sep<11>2014 14:09 Mar 13, 2015 Jkt 235001 review an initial determination (‘‘ID’’) (Order No. 78) of the presiding administrative law judge (‘‘ALJ’’) granting a joint motion by complainant and respondents to terminate the investigation in its entirety based upon settlement. FOR FURTHER INFORMATION CONTACT: Panyin A. Hughes, Office of the General Counsel, U.S. International Trade Commission, 500 E Street SW., Washington, DC 20436, telephone (202) 205–3042. Copies of non-confidential documents filed in connection with this investigation are or will be available for inspection during official business hours (8:45 a.m. to 5:15 p.m.) in the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW., Washington, DC 20436, telephone (202) 205–2000. General information concerning the Commission may also be obtained by accessing its Internet server at https://www.usitc.gov. The public record for this investigation may be viewed on the Commission’s electronic docket (EDIS) at https:// edis.usitc.gov. Hearing-impaired persons are advised that information on this matter can be obtained by contacting the Commission’s TDD terminal on (202) 205–1810. SUPPLEMENTARY INFORMATION: The Commission instituted this investigation on September 9, 2013, based on a complaint filed by Spansion, LLC of Sunnyvale, California (‘‘Spansion’’). The complaint alleged violations of section 337 of the Tariff Act of 1930, as amended, 19 U.S.C. 1337, in the importation into the United States, the sale for importation, and the sale within the United States after importation of certain flash memory chips and products containing the same by reason of infringement of certain claims of U.S. Patent Nos. 6,900,124; 7,018,922; 6,369,416; 7,151,027; 6,459,625; and 6,731,536. See 78 Fed. Reg. 55095 (Sept. 9, 2013). The notice of investigation named the following respondents: Macronix International Co, Ltd., of Hsin-chu, Taiwan; Macronix America, Inc., of Milpitas, California; Macronix Asia Limited of Kanagawa Pref., Japan; Macronix (Hong Kong) Co., Ltd., of Sha Tin, N.T., Hong Kong; Acer Inc. of New Taipei City, Taiwan; Acer America Corporation of San Jose, California; ASUSTek Computer Inc. of Taipei, Taiwan; Asus Computer International of Fremont, California; Belkin International, Inc., of Playa Vista, California; D-Link Corporation of Taipei City, Taiwan; D-Link System, Inc., of Fountain Valley, California; Netgear Inc., San Jose, California; Nintendo Co., Ltd., of Kyoto, Japan; and Nintendo of PO 00000 Frm 00116 Fmt 4703 Sfmt 4703 13629 America, Inc., of Redmond, Washington (collectively, ‘‘Respondents’’). On January 29, 2015, Spansion and Respondents filed a joint motion to terminate the investigation in its entirety based upon the execution of a settlement agreement. On February 9, 2015, the Commission investigative attorney filed a response in support of termination. No other responses to the motion were filed. On February 11, 2015, the ALJ issued the subject ID, granting the joint motion to terminate the investigation in its entirety. The ALJ found that the settlement agreement complies with the requirements of Commission Rule 210.21(b) (19 CFR 210.21(b)) and that terminating Respondents from the investigation would not be contrary to the public interest. None of the parties petitioned for review of the ID. The Commission has determined not to review the ID. The authority for the Commission’s determination is contained in section 337 of the Tariff Act of 1930, as amended (19 U.S.C. 1337), and in section 210.42 of the Commission’s Rules of Practice and Procedure (19 CFR 210.42). By order of the Commission. Issued: March 10, 2015. Lisa R. Barton, Secretary to the Commission. [FR Doc. 2015–05812 Filed 3–13–15; 8:45 am] BILLING CODE 7020–02–P INTERNATIONAL TRADE COMMISSION [Investigation No. 337–TA–948] Certain Toy Figurines and Toy Sets Containing the Same U.S. International Trade Commission. ACTION: Notice. AGENCY: Notice is hereby given that a complaint was filed with the U.S. International Trade Commission on February 6, 2015, under section 337 of the Tariff Act of 1930, as amended, 19 U.S.C. 1337, on behalf of LEGO A/S of Denmark; LEGO System A/S of Denmark; and LEGO Systems, Inc. of Enfield, Connecticut. SUPPLEMENTARY INFORMATION: Letters supplementing the complaint were filed on February 18, 2015 and March 10, 2015. The complaint, as supplemented, alleges violations of section 337 based upon the importation into the United States, the sale for importation, and the sale within the United States after importation of certain toy figurines and SUMMARY: E:\FR\FM\16MRN1.SGM 16MRN1

Agencies

DEPARTMENT OF THE INTERIOR

[Federal Register Volume 80, Number 50 (Monday, March 16, 2015)]
[Notices]
[Pages 13619-13629]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-05854]

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DEPARTMENT OF THE INTERIOR

[Docket No. ONRR-2011-0021; DS63610000 DR2PS0000.CH7000 145D0102R2]

Office of Natural Resources Revenue; Agency Information
Collection Activities: 30 CFR Parts 1202, 1206, and 1207, Indian Oil &
Gas Valuation--Comment Request

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

ACTION: Notice of extension.

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

SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), ONRR
is inviting comments on a collection of information requests that we
will submit to the Office of Management and Budget (OMB) for review and
approval. This Information Collection Request (ICR) covers the
paperwork requirements in the regulations under title 30, Code of
Federal Regulations (CFR), parts 1202, 1206, and 1207. Also, there are
five forms associated with this information collection.

DATES: Submit written comments on or before May 15, 2015.

ADDRESSES: You may submit comments on this ICR to ONRR by using one of
the following three methods (please reference ``ICR 1012-0002'' in your
comments):
1. Electronically go to https://www.regulations.gov. In the entry
titled ``Enter Keyword or ID,'' enter ``ONRR-2011-0021'' and then click
``Search.''

[[Page 13620]]

Follow the instructions to submit public comments. ONRR will post all
comments.
2. Mail comments to Mr. Luis Aguilar, Regulatory Specialist, ONRR,
P.O. Box 25165, MS 61030A, Denver, Colorado 80225-0165.
3. Hand-carry or mail comments, using an overnight courier service,
to ONRR. Our courier address is Building 85, Room A-614, Denver Federal
Center, West 6th Ave. and Kipling St., Denver, Colorado 80225.

FOR FURTHER INFORMATION CONTACT: For any questions, contact Mr. Luis
Aguilar, telephone (303) 231-3418, or email at Luis.Aguilar@onrr.gov.
You may also contact Mr. Aguilar to obtain copies, at no cost, of (1)
the ICR, (2) any associated forms, and (3) the regulations that require
us to collect the information.

SUPPLEMENTARY INFORMATION:

I. Abstract

The Secretary of the United States Department of the Interior is
responsible for collecting royalties from lessees who produce minerals
from leased 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. ONRR performs the royalty
management functions for the Secretary.
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/PubLaws/default.htm.
Indian tribes and individual Indian mineral owners receive all
royalties generated from their lands. Determining product valuation is
essential to ensure that Indian tribes and individual Indian mineral
owners receive payment on the full value of the minerals removed from
their lands. Failure to collect the data described in this information
collection could result in the undervaluation of leased minerals on
Indian lands.

Indian Oil

Regulations at 30 CFR part 1206, subpart B, govern the valuation
for royalty purposes of all oil produced from Indian oil and gas leases
(tribal and allotted), except leases on the Osage Indian Reservation,
and are consistent with mineral leasing laws, other applicable laws,
and lease terms. Generally, the regulations provide that lessees
determine the value of oil based upon the higher of (1) the gross
proceeds under an arm's-length contract; or (2) major portion analysis.
The value determined by the lessee may be eligible for a transportation
allowance.
From information collected on Form ONRR-4110, Oil Transportation
Allowance Report, ONRR and tribal audit personnel evaluate (1) whether
lessee-reported transportation allowances are within regulatory
allowance limitations and calculated in accordance with applicable
regulations; and (2) whether the lessees reported and paid the proper
amount of royalties.

Indian Gas

Regulations at 30 CFR part 1206, subpart E, govern the valuation
for royalty purposes of natural gas produced from Indian oil and gas
leases (tribal and allotted). The regulations apply to all gas
production from Indian oil and gas leases, except leases on the Osage
Indian Reservation.
Most Indian leases contain the requirement to perform accounting
for comparison (dual accounting) for gas produced from the lease.
Lessees must elect to perform actual dual accounting as defined in 30
CFR 1206.176 or alternative dual accounting as defined in 30 CFR
1206.173. Lessees use Form ONRR-4410, Accounting for Comparison [Dual
Accounting], to certify that dual accounting is not required on an
Indian lease or to make an election for actual or alternative dual
accounting for Indian leases.
The regulations require lessees to submit Form ONRR-4411, Safety
Net Report, when gas production from an Indian oil or gas lease is sold
beyond the first index pricing point. The safety net calculation
establishes the minimum value, for royalty purposes, of natural gas
production from Indian oil and gas leases. This reporting requirement
ensures that Indian lessors receive all royalties due and aids ONRR
compliance efforts.
From information collected on Form ONRR-4295, Gas Transportation
Allowance Report, ONRR and tribal audit personnel evaluate (1) whether
lessee-reported transportation allowances are within regulatory
allowance limitations and calculated in accordance with applicable
regulations; and (2) whether the lessees reported and paid the proper
amount of royalties.
From information collected on Form ONRR-4109, Gas Processing
Allowance Summary Report, ONRR and tribal audit personnel evaluate (1)
whether lessee-reported processing allowances are within regulatory
allowance limitations and calculated in accordance with applicable
regulations; and (2) whether the lessees reported and paid the proper
amount of royalties.

Indian Oil and Gas

Form ONRR-4393, Request to Exceed Regulatory Allowance Limitation,
is used for both Federal and Indian leases. Most of the burden hours
are incurred on Federal leases; therefore, the form is approved under
ICR 1012-0005, pertaining to Federal oil and gas leases. However, we
include a discussion of the form in this ICR, as well as the burden
hours for Indian leases. To request permission to exceed a regulatory
allowance limit, lessees must (1) submit a letter to ONRR explaining
why a higher allowance limit is necessary; and (2) provide supporting
documentation, including a completed Form ONRR-4393. This form provides
ONRR with the data necessary to make a decision whether to approve or
deny the request and track deductions on royalty reports.

OMB Approval

ONRR will request OMB approval to continue to collect this
information. If ONRR does not collect this information, this would
limit the Secretary's ability to discharge fiduciary duties and may
also result in the inability to confirm the accurate royalty value.
ONRR protects the proprietary information that we receive, and we do
not collect items of a sensitive nature.
ONRR requires lessees to respond to this ICR because the
information collected is essential in order to determine when net
profit share payments are due and to ensure that lessees properly value
and pay royalties or net profit share payments. The requirement to
respond is mandatory for Form ONRR-4410, Accounting for Comparison
[Dual Accounting], and Form ONRR-4411, Safety Net Report, under certain
circumstances. And, the lessees are required to submit Forms ONRR-4109,
ONRR-4110, and ONRR-4295 in order to obtain a benefit.

II. Data

Title: 30 CFR parts 1202, 1206, and 1207, Indian Oil and Gas
Valuation.
OMB Control Number: 1012-0002.
Bureau Form Number: Forms ONRR-4109, ONRR-4110, ONRR-4295, ONRR-
4410, and ONRR-4411.
Frequency of Response: Annually and on occasion.
Estimated Number and Description of Respondents: 148 Indian
lessees.
Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 2,269
hours.
We have not included in our estimates certain requirements
performed in the normal course of

[[Page 13621]]

business and considered usual and customary. The following chart shows
the estimated burden hours by CFR section and paragraph:

Respondents' Estimated Annual Burden Hours
----------------------------------------------------------------------------------------------------------------
Average number
30 CFR Reporting and recordkeeping Hour burden of annual Annual burden
requirement responses hours
----------------------------------------------------------------------------------------------------------------
Part 1202--ROYALTIES
Subpart C--Federal and Indian Oil
----------------------------------------------------------------------------------------------------------------
1202.101...................... Standards for reporting and Burden covered under OMB Control Number 1012-
paying royalties. 0004 (expires 12/31/2012). Burden covered
Oil volumes are to be reported under Sec. 1210.52.
in barrels of clean oil of 42
standard U.S. gallons (231
cubic inches each) at 60
[deg]F. . . ..
----------------------------------------------------------------------------------------------------------------
Subpart J--Gas Production From Indian Leases
----------------------------------------------------------------------------------------------------------------
1202.551(b)................... How do I determine the volume of Burden covered under OMB Control Number 1012-
production for which I must pay 0004. Burden covered under Sec. 1210.52.
royalty if my lease is not in
an approved Federal unit or
communitization agreement
(AFA)?
(b) You and all other persons
paying royalties on the lease
must report and pay royalties
based on your takes. . . ..
----------------------------------------------------------------------------------------------------------------
1202.551(c)................... (c) You and all other persons 1 1 1
paying royalties on the lease
may ask ONRR for permission. .
. . to report entitlements . .
.
----------------------------------------------------------------------------------------------------------------
1202.558(a) and (b)........... What standards do I use to Burden covered under OMB Control Number 1012-
report and pay royalties on 0004. Burden covered under Sec. 1210.52.
gas?.
(a) You must report gas volumes
as follows: . . ..
(b) You must report residue gas
and gas plant product volumes
as follows: . . ..
----------------------------------------------------------------------------------------------------------------
Part 1206--PRODUCT VALUATION
Subpart B--Indian Oil
----------------------------------------------------------------------------------------------------------------
1206.56(b)(2)................. Transportation allowances-- 4 1 4
general.
(b)(2) Upon request of a lessee,
ONRR may approve a
transportation allowance
deduction in excess of the
limitation prescribed by
paragraph (b)(1) of this
section. . . . An application
for exception (using Form ONRR-
4393, Request to Exceed
Regulatory Allowance
Limitation) must contain all
relevant and supporting
documentation necessary for
ONRR to make a determination. .
. ..
----------------------------------------------------------------------------------------------------------------
1206.57(a)(1)(i).............. Determination of transportation AUDIT PROCESS. See note.
allowances.
(a) Arm's-length transportation
contracts..
(1)(i) . . . The lessee shall
have the burden of
demonstrating that its contract
is arm's-length..
----------------------------------------------------------------------------------------------------------------
1206.57(a)(1)(i).............. (a) Arm's-length transportation Burden covered under Sec. 1206.57(c)(1)(i)
contracts. and (iii).
(1)(i) . . . Before any
deduction may be taken, the
lessee must submit a completed
page one of Form ONRR-4110 (and
Schedule 1), Oil Transportation
Allowance Report . . ..
----------------------------------------------------------------------------------------------------------------
1206.57(a)(1)(iii)............ (a) Arm's-length transportation AUDIT PROCESS. See note.
contracts.
(1)(iii) . . . When ONRR
determines that the value of
the transportation may be
unreasonable, ONRR will notify
the lessee and give the lessee
an opportunity to provide
written information justifying
the lessee's transportation
costs..
----------------------------------------------------------------------------------------------------------------
1206.57(a)(2)(i).............. (a) Arm's-length transportation Burden covered under Sec. 1206.57(a)(3).
contracts.
(2)(i) . . . Except as provided
in this paragraph, no allowance
may be taken for the costs of
transporting lease production
which is not royalty-bearing
without ONRR approval..
----------------------------------------------------------------------------------------------------------------
1206.57(a)(2)(ii)............. (a) Arm's-length transportation 20 1 20
contracts.
(2)(ii) Notwithstanding the
requirements of paragraph (i),
the lessee may propose to ONRR
a cost allocation method on the
basis of the values of the
products transported. . . ..
----------------------------------------------------------------------------------------------------------------
1206.57(a)(3)................. (a) Arm's-length transportation 40 1 40
contracts.
(3) If an arm's-length
transportation contract
includes both gaseous and
liquid products, and the
transportation costs
attributable to each product
cannot be determined from the
contract, the lessee shall
propose an allocation procedure
to ONRR. . . . The lessee shall
submit all available data to
support its proposal. . . ..
----------------------------------------------------------------------------------------------------------------

[[Page 13622]]

1206.57(b)(1)................. (b) Non-arm's-length or no Burden covered under Sec. 1206.57(c)(2)(i)
contract. and (iii).
(1) . . . A transportation
allowance may be claimed
retroactively for a period of
not more than 3 months prior to
the first day of the month that
Form ONRR-4110 is filed with
ONRR, unless ONRR approves a
longer period upon a showing of
good cause by the lessee. . . ..
----------------------------------------------------------------------------------------------------------------
1206.57(b)(1)................. (b) Non-arm's-length or no Burden covered under OMB Control Number 1012-
contract. 0004. Burden covered under Sec. 1210.52.
(1) . . . When necessary or
appropriate, ONRR may direct a
lessee to modify its actual
transportation allowance
deduction..
----------------------------------------------------------------------------------------------------------------
1206.57(b)(2)(iv)............. (b) Non-arm's-length or no 20 1 20
contract.
(2)(iv) . . . After a lessee has
elected to use either method
for a transportation system,
the lessee may not later elect
to change to the other
alternative without approval of
ONRR..
----------------------------------------------------------------------------------------------------------------
1206.57(b)(2)(iv)(A).......... (b) Non-arm's-length or no 20 1 20
contract.
(2)(iv)(A) . . . After an
election is made, the lessee
may not change methods without
ONRR approval. . . ..
----------------------------------------------------------------------------------------------------------------
1206.57(b)(3)(i).............. (b) Non-arm's-length or no 40 1 40
contract.
(3)(i) . . . Except as provided
in this paragraph, the lessee
may not take an allowance for
transporting lease production
which is not royalty bearing
without ONRR approval..
----------------------------------------------------------------------------------------------------------------
1206.57(b)(3)(ii)............. (b) Non-arm's-length or no 20 1 20
contract.
(3)(ii) Notwithstanding the
requirements of paragraph (i),
the lessee may propose to ONRR
a cost allocation method on the
basis of the values of the
products transported. . . ..
----------------------------------------------------------------------------------------------------------------
1206.57(b)(4)................. (b) Non-arm's-length or no 20 1 20
contract.
(4) Where both gaseous and
liquid products are transported
through the same transportation
system, the lessee shall
propose a cost allocation
procedure to ONRR. . . . The
lessee shall submit all
available data to support its
proposal. . . ..
----------------------------------------------------------------------------------------------------------------
1206.57(b)(5)................. (b) Non-arm's-length or no 20 1 20
contract.
(5) A lessee may apply to ONRR
for an exception from the
requirement that it compute
actual costs in accordance with
paragraphs (b)(1) through
(b)(4) of this section. . . ..
----------------------------------------------------------------------------------------------------------------
1206.57(c)(1)(i).............. (c) Reporting requirements...... 4 1 4
(1) Arm's-length contracts. (i)
With the exception of those
transportation allowances
specified in paragraphs
(c)(1)(v) and (c)(1)(vi) of
this section, the lessee shall
submit page one of the initial
Form ONRR-4110 (and Schedule
1), Oil Transportation
Allowance Report, prior to, or
at the same time as, the
transportation allowance
determined, under an arm's-
length contract, is reported on
Form ONRR-2014, Report of Sales
and Royalty Remittance. . . ..
----------------------------------------------------------------------------------------------------------------
1206.57(c)(1)(iii)............ (c) Reporting requirements...... 4 1 4
(1) Arm's-length contracts.
(iii) After the initial
reporting period and for
succeeding reporting periods,
lessees must submit page one of
Form ONRR-4110 (and Schedule 1)
within 3 months after the end
of the calendar year, or after
the applicable contract or rate
terminates or is modified or
amended, whichever is earlier,
unless ONRR approves a longer
period (during which period the
lessee shall continue to use
the allowance from the previous
reporting period)..
----------------------------------------------------------------------------------------------------------------
1206.57(c)(1)(iv)............. (c) Reporting requirements...... AUDIT PROCESS. See note.
(1) Arm's-length contracts. (iv)
ONRR may require that a lessee
submit arm's-length
transportation contracts,
production agreements,
operating agreements, and
related documents. Documents
shall be submitted within a
reasonable time, as determined
by ONRR..
----------------------------------------------------------------------------------------------------------------

[[Page 13623]]

1206.57(c)(2)(i).............. (c) Reporting requirements...... 6 1 6
(2) Non-arm's-length or no
contract..
(i) With the exception of those
transportation allowances
specified in paragraphs
(c)(2)(v), (c)(2)(vii) and
(c)(2)(viii) of this section,
the lessee shall submit an
initial Form ONRR-4110 prior
to, or at the same time as, the
transportation allowance
determined under a non-arm's-
length contract or no-contract
situation is reported on Form
ONRR-2014. . . . The initial
report may be based upon
estimated costs..
----------------------------------------------------------------------------------------------------------------
1206.57(c)(2)(iii)............ (c) Reporting requirements...... 6 1 6
(2) Non-arm's-length or no
contract..
(iii) For calendar-year
reporting periods succeeding
the initial reporting period,
the lessee shall submit a
completed Form ONRR-4110
containing the actual costs for
the previous reporting period.
If oil transportation is
continuing, the lessee shall
include on Form ONRR-4110 its
estimated costs for the next
calendar year. . . . ONRR must
receive the Form ONRR-4110
within 3 months after the end
of the previous reporting
period, unless ONRR approves a
longer period (during which
period the lessee shall
continue to use the allowance
from the previous reporting
period)..
----------------------------------------------------------------------------------------------------------------
1206.57(c)(2)(iv)............. (c) Reporting requirements...... Burden covered under Sec. 1206.57(c)(2)(i).
(2) Non-arm's-length or no
contract..
(iv) For new transportation
facilities or arrangements, the
lessee's initial Form ONRR-4110
shall include estimates of the
allowable oil transportation
costs for the applicable
period. . . ..
----------------------------------------------------------------------------------------------------------------
1206.57(c)(2)(v).............. (c) Reporting requirements...... Burden covered under Sec. 1206.57(c)(2)(i).
(2) Non-arm's-length or no
contract..
(v) . . . only those allowances
that have been approved by ONRR
in writing . . ..
----------------------------------------------------------------------------------------------------------------
1206.57(c)(2)(vi)............. (c) Reporting requirements...... AUDIT PROCESS. See note.
(2) Non-arm's-length or no
contract..
(vi) Upon request by ONRR, the
lessee shall submit all data
used to prepare its Form ONRR-
4110. The data shall be
provided within a reasonable
period of time, as determined
by ONRR..
----------------------------------------------------------------------------------------------------------------
1206.57(c)(4) and (e)(2)...... (c) Reporting requirements...... Burden covered under OMB Control Number 1012-
(4) Transportation allowances 0004. Burden covered under Sec. 1210.52.
must be reported as a separate
line item on Form ONRR-2014, .
. ..
(e) Adjustments.................
(2) For lessees transporting
production from Indian leases,
the lessee must submit a
corrected Form ONRR-2014 to
reflect actual costs, . . ..
----------------------------------------------------------------------------------------------------------------
1206.59....................... May I ask ONRR for valuation 20 1 20
guidance?.
You may ask ONRR for guidance in
determining value. You may
propose a value method to ONRR.
Submit all available data
related to your proposal and
any additional information ONRR
deems necessary. . . ..
----------------------------------------------------------------------------------------------------------------
1206.61(a) and (b)............ What records must I keep and AUDIT PROCESS. See note.
produce?.
(a) On request, you must make
available sales, volume, and
transportation data for
production you sold, purchased,
or obtained from the field or
area. You must make this data
available to ONRR, Indian
representatives, or other
authorized persons..
(b) You must retain all data
relevant to the determination
of royalty value. . . ..
----------------------------------------------------------------------------------------------------------------

[[Page 13624]]

Part 1206--PRODUCT VALUATION
Subpart E--Indian Gas
----------------------------------------------------------------------------------------------------------------
1206.172(b)(1)(ii)............ How do I value gas produced from 4 58 232
leases in an index zone?.
(b) Valuing residue gas and gas
before processing..
(1)(ii) Gas production that you
certify on Form ONRR-4410, . .
. is not processed before it
flows into a pipeline with an
index but which may be
processed later; . . ..
----------------------------------------------------------------------------------------------------------------
1206.172(e)(6)(i) and (iii)... (e) Determining the minimum 3 11 33
value for royalty purposes of
gas sold beyond the first index
pricing point.
(6)(i) You must report the
safety net price for each index
zone to ONRR on Form ONRR-4411,
Safety Net Report, no later
than June 30 following each
calendar year; . . ..
(iii) ONRR may order you to
amend your safety net price
within one year from the date
your Form ONRR-4411 is due or
is filed, whichever is later. .
. ..
----------------------------------------------------------------------------------------------------------------
1206.172(e)(6)(ii)............ (e) Determining the minimum Burden covered under OMB Control Number 1012-
value for royalty purposes of 0004. Burden covered under Sec. 1210.52.
gas sold beyond the first index
pricing point.
(6)(ii) You must pay and report
on Form ONRR-2014 additional
royalties due no later than
June 30 following each calendar
year; . . ..
----------------------------------------------------------------------------------------------------------------
1206.172(f)(1)(ii), (f)(2), (f ) Excluding some or all 40 1 40
and (f)(3). tribal leases from valuation
under this section.
(1) An Indian tribe may ask ONRR
to exclude some or all of its
leases from valuation under
this section. . . ..
(ii) If an Indian tribe requests
exclusion from an index zone
for less than all of its
leases, ONRR will approve the
request only if the excluded
leases may be segregated into
one or more groups based on
separate fields within the
reservation..
(2) An Indian tribe may ask ONRR
S to terminate exclusion of its
leases from valuation under
this section. . . ..
(3) The Indian tribe's request
to ONRR under either paragraph
(f)(1) or (2) of this section
must be in the form of a tribal
resolution. . . ..
----------------------------------------------------------------------------------------------------------------
1206.173(a)(1)................ How do I calculate the 2 12 24
alternative methodology for
dual accounting?
(a) Electing a dual accounting
method..
(1) . . . You may elect to
perform the dual accounting
calculation according to either
Sec. 1206.176(a) (called
actual dual accounting), or
paragraph (b) of this section
(called the alternative
methodology for dual
accounting)..
----------------------------------------------------------------------------------------------------------------
1206.173(a)(2)................ (a) Electing a dual accounting Burden covered under Sec. 1206.173(a)(1).
method.
(2) You must make a separate
election to use the alternative
methodology for dual accounting
for your Indian leases in each
ONRR S-designated area. . . ..
----------------------------------------------------------------------------------------------------------------
1206.174(a)(4)(ii)............ How do I value gas production Burden covered under OMB Control Number 1012-
when an index-based method 0004. Burden covered under Sec. 1210.52.
cannot be used?
(a) Situations in which an index-
based method cannot be used..
(4)(ii) If the major portion
value is higher, you must
submit an amended Form ONRR-
2014 to ONRR by the due date
specified in the written notice
from ONRR of the major portion
value. . . ..
----------------------------------------------------------------------------------------------------------------

[[Page 13625]]

1206.174(b)(1)(i) and (iii); (b) Arm's-length contracts...... AUDIT PROCESS. See note.
(b)(2); (d)(2). (1)(i) You have the burden of
demonstrating that your
contract is arm's-length. . . ..
(iii) . . . In these
circumstances, ONRR will notify
you and give you an opportunity
to provide written information
justifying your value. . . ..
(2) ONRR may require you to
certify that your arm's-length
contract provisions include all
of the consideration the buyer
pays, either directly or
indirectly, for the gas,
residue gas, or gas plant
product..
(d) Supporting data.............
(2) You must make all such data
available upon request to the
authorized ONRR or Indian
representatives, to the Office
of the Inspector General of the
Department, or other authorized
persons. . . ..
----------------------------------------------------------------------------------------------------------------
1206.174(d)................... (d) Supporting data. If you Burden covered under OMB Control Number 1012-
determine the value of 0004.
production under paragraph (c)
of this section, you must
retain all data relevant to
determination of royalty value.
----------------------------------------------------------------------------------------------------------------
1206.174(f)................... (f) Value guidance. You may ask 40 1 40
ONRR for guidance in
determining value. You may
propose a valuation method to
ONRR. Submit all available data
related to your proposal and
any additional information ONRR
deems necessary. . ..
----------------------------------------------------------------------------------------------------------------
1206.175(d)(4)................ How do I determine quantities 20 1 20
and qualities of production for
computing royalties?
(d)(4) You may request ONRR
approval of other methods for
determining the quantity of
residue gas and gas plant
products allocable to each
lease. . . ..
----------------------------------------------------------------------------------------------------------------
1206.176(b)................... How do I perform accounting for Burden covered under Sec. 1206.173(a)(1).
comparison?.
(b) If you are required to
account for comparison, you may
elect to use the alternative
dual accounting methodology
provided for in Sec. 1206.173
instead of the provisions in
paragraph (a) of this section..
----------------------------------------------------------------------------------------------------------------
1206.176(c)................... (c) . . . If you do not perform Burden covered under Sec.
dual accounting, you must 1206.172(b)(1)(ii).
certify to ONRR that gas flows
into such a pipeline before it
is processed.
----------------------------------------------------------------------------------------------------------------
Transportation Allowances
----------------------------------------------------------------------------------------------------------------
1206.177(c)(2) and (c)(3)..... What general requirements Burden covered under Sec. 1206.56(b)(2).
regarding transportation
allowances apply to me?
(c)(2) If you ask ONRR, ONRR may
approve a transportation
allowance deduction in excess
of the limitation in paragraph
(c)(1) of this section. . . ..
(3) 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..
----------------------------------------------------------------------------------------------------------------
1206.178(a)(1)(i)............. How do I determine a 1 18 18
transportation allowance?.
(a) Determining a transportation
allowance under an arm's-length
contract..
(1)(i) . . . You are required to
submit to ONRR a copy of your
arm's-length transportation
contract(s) and all subsequent
amendments to the contract(s)
within 2 months of the date
ONRR receives your report which
claims the allowance on the
Form ONRR-2014..
----------------------------------------------------------------------------------------------------------------

[[Page 13626]]

1206.178(a)(1)(iii)........... (a) Determining a transportation AUDIT PROCESS. See note.
allowance under an arm's-length
contract.
(1)(iii) If ONRR determines that
the consideration paid under an
arm's-length transportation
contract does not reflect the
value of the transportation
because of misconduct by or
between the contracting parties
. . . In these circumstances,
ONRR will notify you and give
you an opportunity to provide
written information justifying
your transportation costs..
----------------------------------------------------------------------------------------------------------------
1206.178(a)(2)(i) and (ii).... (a) Determining a transportation 20 1 20
allowance under an arm's-length
contract.
(2)(i) . . . you cannot take an
allowance for the costs of
transporting lease production
that is not royalty bearing
without ONRR approval, or
without lessor approval on
tribal leases..
(ii) As an alternative to
paragraph (a)(2)(i) of this
section, you may propose to
ONRR a cost allocation method
based on the values of the
products transported. . . ..
----------------------------------------------------------------------------------------------------------------
1206.178(a)(3)(i) and (ii).... (a) Determining a transportation 40 1 40
allowance under an arm's-length
contract.
(3)(i) If your arm's-length
transportation contract
includes both gaseous and
liquid products and the
transportation costs
attributable to each cannot be
determined from the contract,
you must propose an allocation
procedure to ONRR. . . ..
(ii) You are required to submit
all relevant data to support
your allocation proposal. . . ..
----------------------------------------------------------------------------------------------------------------
1206.178(b)(1)(ii)............ (b) Determining a transportation 15 5 75
allowance under a non-arm's-
length contract or no contract.
(1)(ii) . . . You must submit
the actual cost information to
support the allowance to ONRR
on Form ONRR-4295, Gas
Transportation Allowance
Report, within 3 months after
the end of the 12-month period
to which the allowance applies.
. . ..
----------------------------------------------------------------------------------------------------------------
1206.178(b)(2)(iv)............ (b) Determining a transportation 20 1 20
allowance under a non-arm's-
length contract or no contract.
(2)(iv) You may use either
depreciation with a return on
undepreciated capital
investment or a return on
depreciable capital investment.
. . . you may not later elect
to change to the other
alternative without ONRR
approval..
----------------------------------------------------------------------------------------------------------------
1206.178(b)(2)(iv)(A)......... (b) Determining a transportation 20 1 20
allowance under a non-arm's-
length contract or no contract.
(2)(iv)(A) . . . Once you make
an election, you may not change
methods without ONRR approval.
. . ..
----------------------------------------------------------------------------------------------------------------
1206.178(b)(3)(i)............. (b) Determining a transportation 40 1 40
allowance under a non-arm's-
length contract or no contract.
(3)(i) . . . Except as provided
in this paragraph, you may not
take an allowance for
transporting a product that is
not royalty bearing without
ONRR approval..
----------------------------------------------------------------------------------------------------------------
1206.178(b)(3)(ii)............ (b) Determining a transportation 20 1 20
allowance under a non-arm's-
length contract or no contract.
(3)(ii) As an alternative to the
requirements of paragraph
(b)(3)(i) of this section, you
may propose to ONRR a cost
allocation method based on the
values of the products
transported. . . ..
----------------------------------------------------------------------------------------------------------------
1206.178(b)(5)................ (b) Determining a transportation 40 1 40
allowance under a non-arm's-
length contract or no contract.
(5) If you transport both
gaseous and liquid products
through the same transportation
system, you must propose a cost
allocation procedure to ONRR. .
. . You are required to submit
all relevant data to support
your proposal. . . ..
----------------------------------------------------------------------------------------------------------------
1206.178(d)(1)................ (d) Reporting your AUDIT PROCESS. See note.
transportation allowance.
(1) If ONRR requests, you must
submit all data used to
determine your transportation
allowance . . ..
----------------------------------------------------------------------------------------------------------------

[[Page 13627]]

1206.178(d)(2), (e), and (d) Reporting your Burden covered under OMB Control Number 1012-
(f)(1). transportation allowance. 0004. Burden covered under Sec. 1210.52.
(2) You must report
transportation allowances as a
separate entry on Form ONRR-
2014. . . ..
(e) Adjusting incorrect
allowances. If for any month
the transportation allowance
you are entitled to is less
than the amount you took on
Form ONRR-2014, you are
required to report and pay
additional royalties due, plus
interest computed under 30 CFR
1218.54 from the first day of
the first month you deducted
the improper transportation
allowance until the date you
pay the royalties due. . . ..
(f) Determining allowable costs
for transportation allowances.
. . ..
(1) Firm demand charges paid to
pipelines. . . . You must
modify the Form ONRR-2014 by
the amount received or credited
for the affected reporting
period..
----------------------------------------------------------------------------------------------------------------
Processing Allowances
----------------------------------------------------------------------------------------------------------------
1206.180(a)(1)(i)............. How do I determine an actual 1 2 2
processing allowance?.
(a) Determining a processing
allowance if you have an arm's-
length processing contract..
(1)(i) . . . You have the burden
of demonstrating that your
contract is arm's-length. You
are required to submit to ONRR
a copy of your arm's-length
contract(s) and all subsequent
amendments to the contract(s)
within 2 months of the date
ONRR receives your first report
that deducts the allowance on
the Form ONRR-2014..
----------------------------------------------------------------------------------------------------------------
1206.180(a)(1)(iii)........... (a) Determining a processing AUDIT PROCESS. See note.
allowance if you have an arm's-
length processing contract.
(1)(iii) If ONRR determines that
the consideration paid under an
arm's-length processing
contract does not reflect the
value of the processing because
of misconduct by or between the
contracting parties . . . In
these circumstances, ONRR will
notify you and give you an
opportunity to provide written
information justifying your
processing costs..
----------------------------------------------------------------------------------------------------------------
1206.180(a)(3)................ (a) Determining a processing 40 1 40
allowance if you have an arm's-
length processing contract.
(3) If your arm's-length
processing contract includes
more than one gas plant product
and the processing costs
attributable to each product
cannot be determined from the
contract, you must propose an
allocation procedure to ONRR. .
. . You are required to submit
all relevant data to support
your proposal. . . ..
----------------------------------------------------------------------------------------------------------------
1206.180(b)(1)(ii)............ (b) Determining a processing 20 12 1200
allowance if you have a non-
arm's-length contract or no
contract.
(1)(ii) . . . You must submit
the actual cost information to
support the allowance to ONRR
on Form ONRR-4109, Gas
Processing Allowance Summary
Report, within 3 months after
the end of the 12-month period
for which the allowance
applies. . . ..
----------------------------------------------------------------------------------------------------------------
1206.180(b)(2)(iv)............ (b) Determining a processing 20 1 20
allowance if you have a non-
arm's-length contract or no
contract.
(2)(iv) You may use either
depreciation with a return on
undepreciable capital
investment or a return on
depreciable capital investment.
. . . you may not later elect
to change to the other
alternative without ONRR
approval..
----------------------------------------------------------------------------------------------------------------
1206.180(b)(2)(iv) (A)........ (b) Determining a processing 20 1 20
allowance if you have a non-
arm's-length contract or no
contract.
(2)(iv)(A) . . . Once you make
an election, you may not change
methods without ONRR approval.
. . ..
----------------------------------------------------------------------------------------------------------------
1206.180(b)(3)................ (b) Determining a processing 20 1 20
allowance if you have a non-
arm's-length contract or no
contract.
(3) Your processing allowance
under this paragraph (b) must
be determined based upon a
calendar year or other period
if you and ONRR agree to an
alternative.
----------------------------------------------------------------------------------------------------------------

[[Page 13628]]

1206.180(c)(1)................ (c) Reporting your processing AUDIT PROCESS. See note.
allowance.
(1) If ONRR requests, you must
submit all data used to
determine your processing
allowance. . . ..
----------------------------------------------------------------------------------------------------------------
1206.180(c)(2) and (d)........ (c) Reporting your processing Burden covered under OMB Control Number 1012-
allowance. 0004. Burden covered under Sec. 1210.52.
(2) You must report gas
processing allowances as a
separate entry on the Form ONRR-
2014. . . ..
(d) Adjusting incorrect
processing allowances. If for
any month the gas processing
allowance you are entitled to
is less than the amount you
took on Form ONRR-2014, you are
required to pay additional
royalties, plus interest
computed under 30 CFR 1218.54
from the first day of the first
month you deducted a processing
allowance until the date you
pay the royalties due. . . ..
----------------------------------------------------------------------------------------------------------------
1206.181(c)................... How do I establish processing 40 1 40
costs for dual accounting
purposes when I do not process
the gas?
(c) A proposed comparable
processing fee submitted to
either the tribe and ONRR (for
tribal leases) or ONRR (for
allotted leases) with your
supporting documentation
submitted to ONRR. If ONRR does
not take action on your
proposal within 120 days, the
proposal will be deemed to be
denied and subject to appeal to
the ONRR Director under 30 CFR
part 1290..
----------------------------------------------------------------------------------------------------------------
PART 1207--SALES AGREEMENTS OR CONTRACTS GOVERNING THE DISPOSAL OF LEASE PRODUCTS
Subpart A--General Provisions
----------------------------------------------------------------------------------------------------------------
1207.4(b)..................... Contracts made pursuant to old AUDIT PROCESS. See note.
form leases.
(b) The stipulation, the
substance of which must be
included in the contract, or be
made the subject matter of a
separate instrument properly
identifying the leases affected
thereby, is as follows . . ..
----------------------------------------------------------------------------------------------------------------
1207.5........................ Contract and sales agreement AUDIT PROCESS. See note.
retention.
Copies of all sales contracts,
posted price bulletins, etc.,
and copies of all agreements,
other contracts, or other
documents which are relevant to
the valuation of production are
to be maintained by the lessee
and made available upon request
during normal working hours to
authorized ONRR, State or
Indian representatives, other
ONRR or BLM officials, auditors
of the General Accounting
Office, or other persons
authorized to receive such
documents, or shall be
submitted to ONRR within a
reasonable period of time, as
determined by ONRR. Any oral
sales arrangement negotiated by
the lessee must be placed in
written form and retained by
the lessee. Records shall be
retained in accordance with 30
CFR part 1212..
----------------------------------------------------------------------------------------------------------------
Total Burden.............. ................................ .............. 148 2,269
----------------------------------------------------------------------------------------------------------------
Note: AUDIT PROCESS--The Office of Regulatory Affairs determined that the audit process is exempt from the
Paperwork Reduction Act of 1995 because ONRR staff asks non-standard questions to resolve exceptions.

Estimated Annual Reporting and Recordkeeping ``Non-hour'' Cost
Burden: We have identified no ``non-Hour'' cost burdens.
Public Disclosure Statement: The PRA (44 U.S.C. 3501 et seq.)
provides that an agency may not conduct or sponsor--and a person is not
required to respond to--a collection of information unless it displays
a currently valid OMB control number.

III. Request for 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: (1) Evaluate whether the proposed
collection of information is necessary for the agency to perform its
duties, including whether the information is useful; (2) evaluate the
accuracy of the agency's estimate of the burden of the proposed
collection of information; (3) enhance the quality, usefulness, and
clarity of the information that ONRR collects; and (4) minimize the
burden on the respondents, including the use of automated collection
techniques or other forms of information technology.
The PRA also requires agencies to estimate the total annual
reporting ``non-hour cost'' burden to respondents or record-keepers
resulting from the collection of information. If you have costs to
generate, maintain, and disclose this information, you should comment
and provide your total capital and startup cost components or annual
operation, maintenance, and purchase of service components. You should
describe the methods that you use to estimate (1) major cost factors,
including system and technology acquisition, (2) expected useful life
of capital equipment, (3) discount rate(s), and (4) the period over
which you incur costs.

[[Page 13629]]

Capital and startup costs include, among other items, computers and
software that you purchase to prepare for collecting information and
monitoring, sampling, and testing equipment, and record-storage
facilities. Generally, your estimates should not include equipment or
services purchased (i) before October 1, 1995; (ii) to comply with
requirements not associated with the information collection; (iii) for
reasons other than to provide information or keep records for the
Federal Government; or (iv) as part of customary and usual business or
private practices.
We will summarize written responses to this notice and address them
in our ICR submission for OMB approval, including appropriate
adjustments to the estimated burden. We will provide a copy of the ICR
to you, free of charge, upon request. We also will post the ICR at
https://www.onrr.gov/Laws_R_D/FRNotices/ICR0103.htm.
Public Comment Policy: ONRR will post all comments, including names
and addresses of respondents at https://www.regulations.gov. Before
including Personally Identifiable Information (PII), such as your
address, phone number, email address, or other personal information in
your comment(s), you should be aware that your entire comment
(including PII) may be made available to the public at any time. While
you may ask us, in your comment, to withhold PII from public view, we
cannot guarantee that we will be able to do so.

Dated: March 3, 2015.
Gregory J. Gould,
Director, Office of Natural Resources Revenue.
[FR Doc. 2015-05854 Filed 3-13-15; 8:45 am]
BILLING CODE 4335-30-P

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