Agency Information Collection Activities: Indian Oil and Gas Valuation, 32141-32150 [2018-14854]
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Federal Register / Vol. 83, No. 133 / Wednesday, July 11, 2018 / Notices
DEPARTMENT OF THE INTERIOR
Bureau of Land Management
[LLWY–957000–18–L13100000–PP0000]
Filing of Plats of Survey, Wyoming
AGENCY:
Bureau of Land Management,
Interior.
Notice of official filing.
ACTION:
The Bureau of Land
Management (BLM) is scheduled to file
plats of survey 30 calendar days from
the date of this publication in the BLM
Wyoming State Office, Cheyenne,
Wyoming. The surveys, which were
executed at the request of the BLM,
Bureau of Reclamation, and the U. S.
Forest Service, are necessary for the
management of these lands.
DATES: Protests must be received by the
BLM by August 10, 2018.
ADDRESSES: You may submit written
protests to the Wyoming State Director
at WY957, Bureau of Land Management,
5353 Yellowstone Road, Cheyenne,
Wyoming 82003.
FOR FURTHER INFORMATION CONTACT:
Sonja Sparks, BLM Wyoming Chief
Cadastral Surveyor at 307–775–6225 or
s75spark@blm.gov. Persons who use a
telecommunications device for the deaf
may call the Federal Relay Service at 1–
800–877–8339 to contact this office
during normal business hours. The
Service is available 24 hours a day, 7
days a week, to leave a message or
question with this office. You will
receive a reply during normal business
hours.
SUPPLEMENTARY INFORMATION: The lands
surveyed are: The plat and field notes
representing the dependent resurvey of
a portion of the west boundary and
portions of the subdivisional lines, and
the survey of the subdivision of sections
8 and 18, Township 18 North, Range
105 West, Sixth Principal Meridian,
Wyoming, Group No. 964, was accepted
July 2, 2018.
The plat and field notes representing
the dependent resurvey of a portion of
the subdivisional lines, the retracement
of the westerly right-of-way of Wyoming
State Highway No. 371 in sections 33
and 34, and the metes-and-bounds
survey of Parcel A, section 34,
Township 21 North, Range 102 West,
Sixth Principal Meridian, Wyoming,
Group No. 969, was accepted July 2,
2018.
The plat and field notes representing
the dependent resurvey of a portion of
the east boundary and portions of the
subdivisional lines, and the survey of
the subdivision of section 13, Township
14 North, Range 78 West, Sixth
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SUMMARY:
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Principal Meridian, Wyoming, Group
No. 970, was accepted July 2, 2018.
The plat and field notes representing
the dependent resurvey of a portion of
the east boundary and a portion of the
subdivisional lines, Township 33 North,
Range 69 West, Sixth Principal
Meridian, Wyoming, Group No. 972,
was accepted July 2, 2018.
The plat and field notes representing
the dependent resurvey of a portion of
Homestead Entry Survey No. 196, a
portion of the subdivisional lines and
the subdivision of section 18, and the
survey of the subdivision of section 18
and the meanders of the Gros Ventre
River, and the metes-and-bounds survey
of Tract 38, Township 42 North, Range
113 West, Sixth Principal Meridian,
Wyoming, Group No. 975, was accepted
July 2, 2018.
The plat and field notes representing
the dependent resurvey of portions of
the subdivisional lines, and the survey
of the subdivision of section 20,
Township 3 North, Range 2 West, of the
Wind River Meridian, Wyoming, Group
No. 976, was accepted July 2, 2018.
The plat and field notes representing
the dependent resurvey of portions of
the subdivisional lines and the survey of
the subdivision of section 20, Township
33 North, Range 68 West, Sixth
Principal Meridian, Wyoming, Group
No. 980, was accepted July 2, 2018.
A person or party who wishes to
protest one or more plats of survey
identified above must file a written
notice of protest within 30 calendar
days from the date of this publication
with the Wyoming State Director at the
above address. Any notice of protest
received after the scheduled date of
official filing will be untimely and will
not be considered. A written statement
of reasons in support of a protest, if not
filed with the notice of protest, must be
filed with the State Director within 30
calendar days after the notice of protest
is filed. If a notice of protest against a
plat of survey is received prior to the
scheduled date of official filing, the
official filing of the plat of survey
identified in the notice of protest will be
stayed pending consideration of the
protest. A plat of survey will not be
officially filed until the next business
day following dismissal or resolution of
all protests of the plat.
Before including your address, phone
number, email address, or other
personal identifying information in your
protest, you should be aware that your
entire protest—including your personal
identifying information—may be made
publicly available at any time. While
you can ask us to withhold your
personal identifying information from
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32141
public review, we cannot guarantee that
we will be able to do so.
Copies of the preceding described
plats and field notes are available to the
public at a cost of $4.20 per plat and
$.13 per page of field notes.
Dated: July 5, 2018.
Sonja S. Sparks,
Chief Cadastral Surveyor, Division of Support
Services.
[FR Doc. 2018–14808 Filed 7–10–18; 8:45 am]
BILLING CODE 4310–22–P
DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue
[Docket No. ONRR–2011–0021; DS63644000
DR2000000.CH7000 189D0102R2; OMB
Control Number 1012–0002]
Agency Information Collection
Activities: Indian Oil and Gas Valuation
Office of Natural Resources
Revenue, Interior.
ACTION: Notice of information collection;
request for comment.
AGENCY:
In accordance with the
Paperwork Reduction Act of 1995
(PRA), we, the Office of Natural
Resources Revenue (ONRR), are
proposing to renew an information
collection with revisions.
DATES: You must submit your written
comments on or before September 10,
2018.
SUMMARY:
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.’’
Follow the instructions to submit public
comments. ONRR will post all
comments.
2. Mail comments to Mr. Armand
Southall, Regulatory Specialist, ONRR,
P.O. Box 25165, MS 64400B, Denver,
Colorado 80225–0165.
3. Hand-carry or mail comments,
using an overnight courier service, to
ONRR. Our courier address is Building
85, Entrance N–1, Denver Federal
Center, West 6th Ave. and Kipling St.,
Denver, Colorado 80225.
FOR FURTHER INFORMATION CONTACT: For
any technical questions, contact Ms.
LeeAnn Martin, telephone (303) 231–
3313, or email to LeeAnn.Martin@
onrr.gov. For any other questions about
this ICR, contact Mr. Armand Southall,
telephone (303) 231–3221, or email to
Armand.Southall@onrr.gov. You may
ADDRESSES:
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Federal Register / Vol. 83, No. 133 / Wednesday, July 11, 2018 / Notices
also contact Mr. Southall to obtain
copies, at no cost, of (1) the ICR, (2) any
associated forms, and (3) the regulations
that require us to collect the
information.
In
accordance with the Paperwork
Reduction Act of 1995, we provide the
general public and other Federal
agencies with an opportunity to
comment on new, proposed, revised,
and continuing collections of
information. This helps us assess the
impact of our information collection
requirements and minimize the public’s
reporting burden. It also helps the
public understand our information
collection requirements and provide the
requested data in the desired format.
We are soliciting comments on the
proposed ICR that is described below.
This ICR covers six ONRR forms. We are
especially interested in public comment
addressing the following issues: (1) Is
the collection necessary to the proper
functions of ONRR; (2) will this
information be processed and used in a
timely manner; (3) is the estimate of
burden accurate; (4) how might ONRR
enhance the quality, utility, and clarity
of the information to be collected; and
(5) how might ONRR minimize the
burden of this collection on the
respondents, including through the use
of information technology.
Comments that you submit in
response to this notice are a matter of
public record. ONRR will post all
comments, including names and
addresses of respondents at https://
www.regulations.gov. We will include
or summarize each comment in our
request to Office of Management and
Budget (OMB) to approve this ICR.
Before including Personally Identifiable
Information (PII), such as your address,
phone number, email address, or other
personal identifying 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 your PII from
public view, we cannot guarantee that
we will be able to do so. We also will
post the ICR at https://www.onrr.gov/
Laws_R_D/FRNotices/ICR0103.htm.
Abstract: The Secretary of the United
States Department of the Interior is
responsible for mineral resource
development on Federal and Indian
lands and the Outer Continental Shelf
(OCS). Under various laws, the
Secretary’s responsibility is to manage
mineral resources production on
Federal and Indian lands and the OCS,
collect royalties due, and distribute the
funds collected. The Secretary also has
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SUPPLEMENTARY INFORMATION:
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trust responsibility to manage Indian
lands and seek advice and information
from Indian beneficiaries. ONRR
performs the mineral revenue
management functions for the Secretary
and assists the Secretary in carrying out
the Department’s trust responsibility for
Indian lands. Public laws pertaining to
mineral leases on Federal and Indian
lands are available at https://
www.onrr.gov/Laws_R_D/PubLaws/
index.htm.
Information collections that we cover
in this ICR involve six forms, forms
ONRR–4109, 4110, 4295, 4393, 4410,
and 4411. References to these forms are
identified in: 30 CFR part 1202, subparts
C and J, which pertain to Indian oil and
gas royalties; part 1206, subparts B and
E, which govern the valuation of oil and
gas produced from leases on Indian
lands; and part 1207, which pertains to
recordkeeping. 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 that we
describe in this ICR could result in the
undervaluation of leased minerals on
Indian lands. All data reported is
subject to subsequent audit and
adjustment.
Indian Oil
Regulations at 30 CFR part 1206,
subpart B, govern the valuation for
royalty purposes of oil produced from
Indian oil and gas leases (Tribal and
allotted), and are consistent with
mineral leasing laws, other applicable
laws, and lease terms. Generally, these
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. These
regulations require reporting on one
form that is the subject of this ICR, form
ONRR–4110.
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
under applicable regulations; and (2)
whether the lessees reported and paid
the proper amount of royalties. Lessees
must use form ONRR–4110 for both
non-arm’s-length contract or no contract
situations.
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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). These regulations
require reporting on four forms that are
the subject of this ICR, forms ONRR–
4109, 4295, 4410, and 4411:
• 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 under
applicable regulations; and (2) whether
the lessees reported and paid the proper
amount of royalties.
• 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
under applicable regulations; and (2)
whether the lessees reported and paid
the proper amount of royalties.
• 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. Most Indian leases contain the
requirement to perform accounting for
comparison (dual accounting) for gas
produced from the lease. Therefore,
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–4411,
Safety Net Report, when they sell gas
production from an Indian oil or gas
lease beyond the first index pricing
point. The safety net calculation
establishes the minimum value, for
royalty purposes, of natural gas
production from Indian oil and gas
leases. This reporting requirement
ensures that Indian lessors receive all
royalties due and aids ONRR
compliance efforts.
Indian Oil and Gas
Regulations at 30 CFR 1206.56(b)(2)
and 1206.177(c)(2) and (c)(3) govern the
valuation for royalty purposes of oil and
gas produced from Indian oil and gas
leases (Tribal and allotted), and are
consistent with mineral leasing laws,
other applicable laws, and lease terms.
These regulations require reporting on
one form that is the subject of this ICR,
form ONRR–4393.
Lessees must submit form ONRR–
4393, Request to Exceed Regulatory
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Allowance Limitation, for both Federal
and Indian leases to request to exceed
the regulatory allowance limitation.
Most of the burden hours are incurred
on Federal leases; therefore, OMB
approved the form under OMB Control
Number 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.
Revisions to ICR
This is an ICR with revisions because
it takes into account the final rule
published May 1, 2015, which amended
ONRR’s Indian oil valuation regulations
(80 FR 24794). This ICR requires minor
revisions to note changes to its authority
when the final rule amended 30 CFR
part 1206, subpart B. The two changes
relevant to this ICR are that the
amendment: (1) Eliminated the form
ONRR–4110 filing requirements for
arm’s-length transportation allowance;
and (2) eliminated the pre-filing of form
ONRR–4110 prior to claiming a nonarm’s-length transportation allowance.
The final rule noted that OMB approved
Safety Net Report, under certain
circumstances. The lessees are required
to report on forms ONRR–4109, ONRR–
4110, ONRR–4295, and ONRR–4393 in
order to obtain a benefit.
Title of Collection: Indian Oil and Gas
Valuation, 30 CFR parts 1202, 1206, and
1207.
OMB Control Number: 1012–0002.
Bureau Form Number: Forms ONRR–
4109, ONRR–4110, ONRR–4295, ONRR–
4410, and ONRR–4411.
Type of Review: Extension of a
currently approved collection, with
revisions.
Respondents/Affected Public:
Businesses.
Total Estimated Number of Annual
Respondents: 149 Indian lessees.
Total Estimated Number of Annual
Responses: 149.
Estimated Completion Time per
Response: 8.85 hours.
Total Estimated Number of Annual
Burden Hours: 1,319 hours.
Respondent’s Obligation: Required to
obtain or retain a benefit.
Frequency of Collection: Annually
and on occasion.
Total Estimated Annual Nonhour
Burden Cost: None.
We have not included in our
estimates certain requirements
performed in the normal course of
business and considered usual and
customary. The following chart shows
the estimated burden hours by CFR
section and paragraph:
a total of 220 burden hours for lessees
to file their forms ONRR–4110 under
OMB Control Number 1012–0002. It
also noted that ‘‘there will be no
additional burden hours because this
rule will insignificantly reduce the
burden hours associated with the Oil
Transportation Allowance Report.’’
Under the revised Indian oil valuation
regulations, rather than submitting
estimated transportation cost
information on the form and then
following up with actual cost
information at the end of the reporting
cycle, lessees need only provide actual
cost information. Also, Indian lessees
that have arm’s-length transportation
costs are no longer required to submit
form ONRR–4110 to report these costs,
but will, instead, submit copies of the
actual contracts to ONRR.
OMB Approval
We are requesting OMB’s approval to
continue to collect this information,
with revisions. Not collecting this
information would limit the Secretary’s
ability to discharge fiduciary duties and
may also result in the inability to
confirm the accurate royalty value to
Indian Tribes and individual Indian
mineral owners. ONRR protects the
proprietary information that it receives
and does not collect items of a sensitive
nature. The requirement to report is
mandatory for form ONRR–4410,
Accounting for Comparison [Dual
Accounting], and for form ONRR–4411,
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS
30 CFR
Average
number of
annual
responses
Hour
burden
Reporting and recordkeeping requirement
Annual
burden
hours
Part 1202—ROYALTIES
Subpart C—Federal and Indian Oil
1202.101 .....................
Standards for reporting and paying royalties. Report oil volumes in
barrels of clean oil of 42 standard U.S. gallons (231 cubic inches
each) at 60 °F.
Burden covered under § 1210.52 in OMB Control
Number 1012–0004.
Subpart J—Gas Production From Indian Leases
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) .................
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1202.551(b) ................
You and all other persons paying royalties on the lease may ask
ONRR for permission to report and pay royalties based on your
entitlements. * * *.
1202.558(a) and (b) ....
What standards do I use to report and pay royalties on gas? (a)
You must report gas volumes * * * (b) You must report residue
gas and gas plant product volumes. * * *.
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Burden covered under § 1210.52 in OMB Control
Number 1012–0004.
1
1
1
Burden covered under § 1210.52 in OMB Control
Number 1012–0004.
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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
30 CFR
Average
number of
annual
responses
Hour
burden
Reporting and recordkeeping requirement
Annual
burden
hours
Part 1206—PRODUCT VALUATION
Subpart B—Indian Oil
What general transportation allowance requirements apply to me?
* * * (2) Upon your request, 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), (2), and
(3).
How do I determine a transportation allowance if I have an arm’slength transportation contract? Arm’s-length transportation. (a)(1)
* * * You have the burden of demonstrating that your contract is
arm’s-length. (2) You must 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 that
ONRR receives your report, which claims the allowance on form
ONRR–2014. (3) * * * 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)(4)(i) ...........
* * * Except as provided in this paragraph, you may not take an allowance for the costs of transporting lease production, which is
not royalty-bearing, without ONRR’s approval.
Burden covered under § 1206.57(a)(5).
1206.57(a)(4)(ii) ..........
Notwithstanding the requirements of paragraph (a)(4)(i) of this section, you may propose to ONRR a cost allocation method on the
basis of the values of the products transported. * * *.
20
1
20
1206.57(a)(5) ..............
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, you must
propose an allocation procedure to ONRR. * * *.
40
1
40
1206.57(a)(5)(ii) ..........
You must submit to ONRR all available data to support your proposal.
1206.57(a)(5)(iii) .........
You must submit your initial proposal within 3 months after the last
day of the month for which you request a transportation allowance, whichever is later (unless ONRR approves a longer period).
1206.57(b)(1) ..............
Reporting requirements. If ONRR requests, you must submit all
data used to determine your transportation allowance. * * *.
AUDIT PROCESS. See note.
1206.57(b)(2) ..............
You must report transportation allowances as a separate entry on
Form ONRR–2014. * * *.
Burden covered under § 1210.52 in OMB Control
Number 1012–0004.
1206.58(a)(1) ..............
How do I determine a transportation allowance if I have a nonarm’s-length transportation contract or have no contract? Nonarm’s-length or no contract. If you have a non-arm’s-length transportation contract or no contract, including those situations where
you or your affiliate perform(s) transportation services for you, the
transportation allowance is based on your reasonable, actual
costs.
AUDIT PROCESS. See note.
1206.58(a)(2) ..............
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1206.56(b)(2) ..............
You must submit the actual cost information to support the allowance to ONRR on Form ONRR–4110, Oil Transportation Allowance Report, within 3 months after the end of the calendar year
to which the allowance applies. * * *.
6
1
6
1206.58(a)(3)(iv) .........
* * * After you have elected to use either method for a transportation system, you may not later elect to change to the other alternative without approval of ONRR.
20
1
20
1206.58(a)(3)(iv)(A) ....
* * * After you make an election, you may not change methods
without ONRR’s approval. * * *.
20
1
20
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AUDIT PROCESS. See note.
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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Average
number of
annual
responses
Hour
burden
Annual
burden
hours
Reporting and recordkeeping requirement
1206.58(a)(4)(i) ...........
* * * Except as provided in this paragraph (a)(4)(i), you may not
take an allowance for transporting lease production that is not
royalty bearing without ONRR’s approval.
40
1
40
1206.58(a)(4)(ii) ..........
Notwithstanding the requirements of paragraph (a)(4)(i) of this section, you may propose to ONRR a cost allocation method on the
basis of the values of the products transported. * * *.
20
1
20
1206.58(a)(5)(ii) and
(iii).
(ii) Where both gaseous and liquid products are transported
through the same transportation system, you must propose a
cost allocation procedure to ONRR. * * * (iii) You must submit to
ONRR all available data to support your proposal. * * * You
must submit your initial proposal within 3 months after the last
day of the month for which you request a transportation allowance (unless ONRR approves a longer period).
20
1
20
1206.58(a)(6) ..............
You may apply to ONRR for an exception from the requirement that
you compute actual costs under paragraphs (a)(1) through (5) of
this section.
20
1
20
1206.58(b)(1) ..............
Reporting requirements. If ONRR requests, you must submit all
data used to determine your transportation allowance, You must
provide the data within a reasonable period of time that ONRR
will determine.
4
1
4
1206.58(b)(2) ..............
You must report transportation allowances as a separate entry on
Form ONRR–2014. * * *.
4
1
4
1206.58(b)(3) ..............
ONRR may require you to submit all of the data that you used to
prepare your Form ONRR–4110. You must submit the data within a reasonable period of time that ONRR determines.
12
1
12
1206.59(a) ..................
What interest applies if I improperly report a transportation allowance? If you deduct a transportation allowance on Form ONRR–
2014 without complying with the requirements of §§ 1206.56 and
1206.57 or § 1206.58, you must pay additional royalties due plus
late payment interest calculated under § 1218.54 of this chapter.
Burden covered under § 1210.52 in OMB Control
Number 1012–0004.
1206.60(a) ..................
What reporting adjustments must I make for transportation allowances? If your actual transportation allowance is less than the
amount that you claimed on Form ONRR–2014 for each month
during the allowance reporting period, you must pay additional
royalties due, plus late payment interest calculated under
§ 1218.54 of this chapter.
Burden covered under § 1210.52 in OMB Control
Number 1012–0004.
1206.60(c) ...................
If you make an adjustment under paragraph (a) or (b) of this section, then you must submit a corrected Form ONRR–2014 to reflect actual costs, together with any payment, using instructions
that ONRR provides.
Burden covered under § 1210.52 in OMB Control
Number 1012–0004.
1206.61(a)(2) ..............
How will ONRR determine if my royalty payments are correct?
* * * If ONRR directs you to use a different royalty value, you
must pay any additional royalties due plus late payment interest
calculated under § 1218.54 of this chapter.
Burden covered under § 1210.52 in OMB Control
Number 1012–0004.
1206.62(a) ..................
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30 CFR
How do I request a value determination? You may request a value
determination from ONRR regarding any oil produced. Your request must include: (1) Be in writing. (2) Identify specifically all
leases involved, all interest owners of those leases, the designee(s), and the operator(s) for those leases. (3) Completely explain all relevant facts. * * * (4) Include copies of all relevant
documents. (5) Provide your analysis of the issue(s) * * * (6)
Suggest your proposed valuation method.
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1206.62(c)(2) ..............
After the Assistant Secretary [for Indian Affairs] issues a value determination, you must make any adjustments to royalty payments
that follow from the determination, and, if you owe additional royalties, you must pay the additional royalties due plus late payment interest calculated under § 1218.54 of this chapter.
Burden covered under § 1210.52 in OMB Control
Number 1012–0004.
1206.64 .......................
What records must I keep to support my calculations of value under
this subpart? If you determine the value of your oil under this
subpart, you must retain all data relevant to the determination of
royalty value. * * *.
AUDIT PROCESS. See note.
Part 1206—PRODUCT VALUATION
Subpart E—Indian Gas
How do I value gas produced from leases in an index zone? (b)
Valuing residue gas and gas before processing. (1)(ii) Gas production that you certify on Form ONRR–4410, Certification for
Not Performing Accounting for comparison (Dual Accounting), 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) ........
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 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) ............
You must make a separate election to use the alternative methodology for dual accounting for your Indian leases in each ONRRdesignated area. * * *.
Burden covered under § 1206.173(a)(1).
1206.174(a)(4)(ii) ........
daltland on DSKBBV9HB2PROD 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 § 1210.52 in OMB Control
Number 1012–0004.
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1206.174(b)(1)(i) and
(iii); (b)(2); (d)(2).
(b) Arm’s-length contracts. * * * (1) The value of gas, residue gas,
or any gas plant product you sell under an arm’s-length contract
is the gross proceeds accruing to you or your affiliates * * * (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) ................
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.
AUDIT PROCESS. See note.
1206.174(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? * * * 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) .................
* * * 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) .........
How do I determine a transportation allowance? (a) Determining a
transportation allowance under an arm’s-length contract. (1) This
paragraph explains how to determine your allowance if you have
an arm’s-length transportation contract. (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.
1206.178(a)(1)(iii) .......
daltland on DSKBBV9HB2PROD with NOTICES
1206.177(c)(2) and
(c)(3).
If ONRR determines that the consideration paid under an arm’slength 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. * * *.
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(a)(2)(i) * * * [Y]ou 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).
(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 12-month period to which the allowance applies. * * *.
15
5
75
1206.178(b)(2)(iv) .......
You may use either depreciation with a return on undepreciated
capital investment or a return on depreciable capital investment.
After you have elected to use either method for a transportation
system, you may not later elect to change to the other alternative
without ONRR approval.
20
1
20
1206.178(b)(2)(iv)(A) ..
* * * Once you make an election, you may not change methods
without ONRR approval.
20
1
20
1206.178(b)(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) ........
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) ............
If you transport both gaseous and liquid products through the same
transportation system, you must propose a cost allocation procedure to ONRR. * * * You are required to submit all relevant data
to support your proposal. * * *.
40
1
40
1206.178(d)(1) ............
(d) Reporting your transportation allowance.(1) If ONRR requests,
you must submit all data used to determine your transportation
allowance. * * *.
AUDIT PROCESS. See note.
1206.178(d)(2), (e),
and (f)(1).
daltland on DSKBBV9HB2PROD with NOTICES
1206.178(a)(2)(i) and
(ii).
(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 § 1218.54 of this chapter 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. * * *.
Burden covered under § 1210.52 in OMB Control
Number 1012–0004.
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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) .......
If ONRR determines that the consideration paid under an arm’slength 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) ............
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
240
1206.180(b)(2)(iv) .......
You may use either depreciation with a return on undepreciable
capital investment or a return on depreciable capital investment.
After you elect to use either method for a processing plant, you
may not later elect to change to the other alternative without
ONRR approval. * * *.
20
1
20
1206.180(b)(2)(iv)(A) ..
* * * Once you make an election, you may not change methods
without ONRR approval. * * *.
20
1
20
1206.180(b)(3) ............
Your processing allowance under this paragraph (b) must be determined based upon a calendar year or other period if you and
ONRR agree to an alternative.
20
1
20
1206.180(c)(1) ............
(c) Reporting your processing allowance. (1) If ONRR requests, you
must submit all data used to determine your processing allowance. * * *.
AUDIT PROCESS. See note.
1206.180(c)(2) and (d)
(c)(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 § 1218.54 of this chapter from the
first day of the first month you deducted a processing allowance
until the date you pay the royalties due. * * *.
Burden covered under § 1210.52 in OMB Control
Number 1012–0004.
1206.181(c) .................
daltland on DSKBBV9HB2PROD with NOTICES
1206.180(a)(1)(i) .........
How do I establish processing costs for dual accounting purposes
when I do not process the gas? * * * 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.
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Hour
burden
Reporting and recordkeeping requirement
Average
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responses
Annual
burden
hours
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. * * * 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 ........
.............................................................................................................
........................
149
1,319
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.
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.
The authority for this action is the
Paperwork Reduction Act of 1995 (44
U.S.C. 3501 et seq.).
polytetrafluoroethylene resin from
India, provided for in subheadings
3904.61.00 and 3904.69.50 of the
Harmonized Tariff Schedule of the
United States, that have been found by
the U.S. Department of Commerce
(‘‘Commerce’’) to be subsidized by the
government of India.2 3
Gregory J. Gould,
Director for Office of Natural Resources
Revenue.
Background
The Commission, pursuant to section
705(b) of the Act (19 U.S.C. 1671d(b)),
instituted this investigation effective
September 28, 2017, following receipt of
a petition filed with the Commission
and Commerce by The Chemours
Company FC LLC, Wilmington,
Delaware. The final phase of the
investigation was scheduled by the
Commission following notification of a
preliminary determination by
Commerce that imports of
polytetrafluoroethylene resin from India
were being subsidized within the
meaning of section 703(b) of the Act (19
U.S.C. 1671b(b)). Notice of the
scheduling of the final phase of the
Commission’s investigation and of a
public hearing to be held in connection
therewith was given by posting copies
of the notice in the Office of the
Secretary, U.S. International Trade
Commission, Washington, DC, and by
publishing the notice in the Federal
Register on March 23, 2018 (83 FR
[FR Doc. 2018–14854 Filed 7–10–18; 8:45 am]
BILLING CODE 4335–30–P
INTERNATIONAL TRADE
COMMISSION
[Investigation No. 701–TA–588 (Final)]
daltland on DSKBBV9HB2PROD with NOTICES
Polytetrafluoroethylene Resin From
India
Determination
On the basis of the record 1 developed
in the subject investigation, the United
States International Trade Commission
(‘‘Commission’’) determines, pursuant
to the Tariff Act of 1930 (‘‘the Act’’),
that an industry in the United States is
not materially injured or threatened
with material injury, and the
establishment of an industry in the
United States is not materially retarded
by reason of imports of
1 The record is defined in sec. 207.2(f) of the
Commission’s Rules of Practice and Procedure (19
CFR 207.2(f)).
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Kearns did not participated in
this investigation.
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3 Commissioner
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12815). The hearing was held in
Washington, DC, on May 17, 2018, and
all persons who requested the
opportunity were permitted to appear in
person or by counsel.
The Commission made this
determination pursuant to section
705(b) of the Act (19 U.S.C. 1671d(b)).
It completed and filed its determination
in this investigation on July 6, 2018. The
views of the Commission are contained
in USITC Publication 4801 (July 2018),
entitled Polytetrafluoroethylene Resin
from India: Investigation No. 701–TA–
588 (Final).
By order of the Commission.
Issued: July 6, 2018.
Lisa Barton,
Secretary to the Commission.
[FR Doc. 2018–14842 Filed 7–10–18; 8:45 am]
BILLING CODE 7020–02–P
DEPARTMENT OF JUSTICE
Notice of Lodging of Proposed
Consent Decree Under the Clean Air
Act
On July 2, 2018, the Department of
Justice lodged a proposed Consent
Decree with the United States District
Court for the Western District of
Missouri in the lawsuit entitled United
States v. MFA Incorporated, and MFA
Enterprises, Inc., Civil Action No.: 2:18–
cv–04133–WJE.
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]]>Agencies
[Federal Register Volume 83, Number 133 (Wednesday, July 11, 2018)]
[Notices]
[Pages 32141-32150]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-14854]
-----------------------------------------------------------------------
DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue
[Docket No. ONRR-2011-0021; DS63644000 DR2000000.CH7000 189D0102R2; OMB
Control Number 1012-0002]
Agency Information Collection Activities: Indian Oil and Gas
Valuation
AGENCY: Office of Natural Resources Revenue, Interior.
ACTION: Notice of information collection; request for comment.
-----------------------------------------------------------------------
SUMMARY: In accordance with the Paperwork Reduction Act of 1995 (PRA),
we, the Office of Natural Resources Revenue (ONRR), are proposing to
renew an information collection with revisions.
DATES: You must submit your written comments on or before September 10,
2018.
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.'' Follow the instructions to submit public comments. ONRR
will post all comments.
2. Mail comments to Mr. Armand Southall, Regulatory Specialist,
ONRR, P.O. Box 25165, MS 64400B, Denver, Colorado 80225-0165.
3. Hand-carry or mail comments, using an overnight courier service,
to ONRR. Our courier address is Building 85, Entrance N-1, Denver
Federal Center, West 6th Ave. and Kipling St., Denver, Colorado 80225.
FOR FURTHER INFORMATION CONTACT: For any technical questions, contact
Ms. LeeAnn Martin, telephone (303) 231-3313, or email to
[email protected]. For any other questions about this ICR, contact
Mr. Armand Southall, telephone (303) 231-3221, or email to
[email protected]. You may
[[Page 32142]]
also contact Mr. Southall to obtain copies, at no cost, of (1) the ICR,
(2) any associated forms, and (3) the regulations that require us to
collect the information.
SUPPLEMENTARY INFORMATION: In accordance with the Paperwork Reduction
Act of 1995, we provide the general public and other Federal agencies
with an opportunity to comment on new, proposed, revised, and
continuing collections of information. This helps us assess the impact
of our information collection requirements and minimize the public's
reporting burden. It also helps the public understand our information
collection requirements and provide the requested data in the desired
format.
We are soliciting comments on the proposed ICR that is described
below. This ICR covers six ONRR forms. We are especially interested in
public comment addressing the following issues: (1) Is the collection
necessary to the proper functions of ONRR; (2) will this information be
processed and used in a timely manner; (3) is the estimate of burden
accurate; (4) how might ONRR enhance the quality, utility, and clarity
of the information to be collected; and (5) how might ONRR minimize the
burden of this collection on the respondents, including through the use
of information technology.
Comments that you submit in response to this notice are a matter of
public record. ONRR will post all comments, including names and
addresses of respondents at https://www.regulations.gov. We will
include or summarize each comment in our request to Office of
Management and Budget (OMB) to approve this ICR. Before including
Personally Identifiable Information (PII), such as your address, phone
number, email address, or other personal identifying 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 your PII from public view,
we cannot guarantee that we will be able to do so. We also will post
the ICR at https://www.onrr.gov/Laws_R_D/FRNotices/ICR0103.htm.
Abstract: The Secretary of the United States Department of the
Interior is responsible for mineral resource development on Federal and
Indian lands and the Outer Continental Shelf (OCS). Under various laws,
the Secretary's responsibility is to manage mineral resources
production on Federal and Indian lands and the OCS, collect royalties
due, and distribute the funds collected. The Secretary also has trust
responsibility to manage Indian lands and seek advice and information
from Indian beneficiaries. ONRR performs the mineral revenue management
functions for the Secretary and assists the Secretary in carrying out
the Department's trust responsibility for Indian lands. Public laws
pertaining to mineral leases on Federal and Indian lands are available
at https://www.onrr.gov/Laws_R_D/PubLaws/index.htm.
Information collections that we cover in this ICR involve six
forms, forms ONRR-4109, 4110, 4295, 4393, 4410, and 4411. References to
these forms are identified in: 30 CFR part 1202, subparts C and J,
which pertain to Indian oil and gas royalties; part 1206, subparts B
and E, which govern the valuation of oil and gas produced from leases
on Indian lands; and part 1207, which pertains to recordkeeping. 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 that we describe in this ICR could
result in the undervaluation of leased minerals on Indian lands. All
data reported is subject to subsequent audit and adjustment.
Indian Oil
Regulations at 30 CFR part 1206, subpart B, govern the valuation
for royalty purposes of oil produced from Indian oil and gas leases
(Tribal and allotted), and are consistent with mineral leasing laws,
other applicable laws, and lease terms. Generally, these 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. These regulations require reporting on one form that
is the subject of this ICR, form ONRR-4110.
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 under applicable regulations; and
(2) whether the lessees reported and paid the proper amount of
royalties. Lessees must use form ONRR-4110 for both non-arm's-length
contract or no contract situations.
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). These regulations require reporting on
four forms that are the subject of this ICR, forms ONRR-4109, 4295,
4410, and 4411:
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 under applicable
regulations; and (2) whether the lessees reported and paid the proper
amount of royalties.
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 under applicable
regulations; and (2) whether the lessees reported and paid the proper
amount of royalties.
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. Most Indian leases contain the
requirement to perform accounting for comparison (dual accounting) for
gas produced from the lease. Therefore, 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-4411, Safety Net Report, when they
sell gas production from an Indian oil or gas lease beyond the first
index pricing point. The safety net calculation establishes the minimum
value, for royalty purposes, of natural gas production from Indian oil
and gas leases. This reporting requirement ensures that Indian lessors
receive all royalties due and aids ONRR compliance efforts.
Indian Oil and Gas
Regulations at 30 CFR 1206.56(b)(2) and 1206.177(c)(2) and (c)(3)
govern the valuation for royalty purposes of oil and gas produced from
Indian oil and gas leases (Tribal and allotted), and are consistent
with mineral leasing laws, other applicable laws, and lease terms.
These regulations require reporting on one form that is the subject of
this ICR, form ONRR-4393.
Lessees must submit form ONRR-4393, Request to Exceed Regulatory
[[Page 32143]]
Allowance Limitation, for both Federal and Indian leases to request to
exceed the regulatory allowance limitation. Most of the burden hours
are incurred on Federal leases; therefore, OMB approved the form under
OMB Control Number 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.
Revisions to ICR
This is an ICR with revisions because it takes into account the
final rule published May 1, 2015, which amended ONRR's Indian oil
valuation regulations (80 FR 24794). This ICR requires minor revisions
to note changes to its authority when the final rule amended 30 CFR
part 1206, subpart B. The two changes relevant to this ICR are that the
amendment: (1) Eliminated the form ONRR-4110 filing requirements for
arm's-length transportation allowance; and (2) eliminated the pre-
filing of form ONRR-4110 prior to claiming a non-arm's-length
transportation allowance. The final rule noted that OMB approved a
total of 220 burden hours for lessees to file their forms ONRR-4110
under OMB Control Number 1012-0002. It also noted that ``there will be
no additional burden hours because this rule will insignificantly
reduce the burden hours associated with the Oil Transportation
Allowance Report.'' Under the revised Indian oil valuation regulations,
rather than submitting estimated transportation cost information on the
form and then following up with actual cost information at the end of
the reporting cycle, lessees need only provide actual cost information.
Also, Indian lessees that have arm's-length transportation costs are no
longer required to submit form ONRR-4110 to report these costs, but
will, instead, submit copies of the actual contracts to ONRR.
OMB Approval
We are requesting OMB's approval to continue to collect this
information, with revisions. Not collecting this information would
limit the Secretary's ability to discharge fiduciary duties and may
also result in the inability to confirm the accurate royalty value to
Indian Tribes and individual Indian mineral owners. ONRR protects the
proprietary information that it receives and does not collect items of
a sensitive nature. The requirement to report is mandatory for form
ONRR-4410, Accounting for Comparison [Dual Accounting], and for form
ONRR-4411, Safety Net Report, under certain circumstances. The lessees
are required to report on forms ONRR-4109, ONRR-4110, ONRR-4295, and
ONRR-4393 in order to obtain a benefit.
Title of Collection: Indian Oil and Gas Valuation, 30 CFR parts
1202, 1206, and 1207.
OMB Control Number: 1012-0002.
Bureau Form Number: Forms ONRR-4109, ONRR-4110, ONRR-4295, ONRR-
4410, and ONRR-4411.
Type of Review: Extension of a currently approved collection, with
revisions.
Respondents/Affected Public: Businesses.
Total Estimated Number of Annual Respondents: 149 Indian lessees.
Total Estimated Number of Annual Responses: 149.
Estimated Completion Time per Response: 8.85 hours.
Total Estimated Number of Annual Burden Hours: 1,319 hours.
Respondent's Obligation: Required to obtain or retain a benefit.
Frequency of Collection: Annually and on occasion.
Total Estimated Annual Nonhour Burden Cost: None.
We have not included in our estimates certain requirements
performed in the normal course of business and considered usual and
customary. The following chart shows the estimated burden hours by CFR
section and paragraph:
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 Sec. 1210.52 in OMB
paying royalties. Report oil Control Number 1012-0004.
volumes 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 Sec. 1210.52 in OMB
production for which I must pay Control Number 1012-0004.
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)................... You and all other persons paying 1 1 1
royalties on the lease may ask
ONRR for permission to report
and pay royalties based on your
entitlements. * * *.
----------------------------------------------------------------------------------------------------------------
1202.558(a) and (b)........... What standards do I use to Burden covered under Sec. 1210.52 in OMB
report and pay royalties on Control Number 1012-0004.
gas? (a) You must report gas
volumes * * * (b) You must
report residue gas and gas
plant product volumes. * * *.
----------------------------------------------------------------------------------------------------------------
[[Page 32144]]
Part 1206--PRODUCT VALUATION
Subpart B--Indian Oil
----------------------------------------------------------------------------------------------------------------
1206.56(b)(2)................. What general transportation 4 1 4
allowance requirements apply to
me? * * * (2) Upon your
request, 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), (2), and (3)... How do I determine a AUDIT PROCESS. See note.
transportation allowance if I
have an arm's-length
transportation contract? Arm's-
length transportation. (a)(1) *
* * You have the burden of
demonstrating that your
contract is arm's-length. (2)
You must 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 that ONRR receives
your report, which claims the
allowance on form ONRR-2014.
(3) * * * 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)(4)(i).............. * * * Except as provided in this Burden covered under Sec. 1206.57(a)(5).
paragraph, you may not take an
allowance for the costs of
transporting lease production,
which is not royalty-bearing,
without ONRR's approval.
----------------------------------------------------------------------------------------------------------------
1206.57(a)(4)(ii)............. Notwithstanding the requirements 20 1 20
of paragraph (a)(4)(i) of this
section, you may propose to
ONRR a cost allocation method
on the basis of the values of
the products transported. * * *.
----------------------------------------------------------------------------------------------------------------
1206.57(a)(5)................. If an arm's-length 40 1 40
transportation contract
includes both gaseous and
liquid products, and the
transportation costs
attributable to each product
cannot be determined from the
contract, you must propose an
allocation procedure to ONRR. *
* *.
----------------------------------------------------------------------------------------------------------------
1206.57(a)(5)(ii)............. You must submit to ONRR all AUDIT PROCESS. See note.
available data to support your
proposal.
----------------------------------------------------------------------------------------------------------------
1206.57(a)(5)(iii)............ You must submit your initial 4 1 4
proposal within 3 months after
the last day of the month for
which you request a
transportation allowance,
whichever is later (unless ONRR
approves a longer period).
----------------------------------------------------------------------------------------------------------------
1206.57(b)(1)................. Reporting requirements. If ONRR AUDIT PROCESS. See note.
requests, you must submit all
data used to determine your
transportation allowance. * * *.
----------------------------------------------------------------------------------------------------------------
1206.57(b)(2)................. You must report transportation Burden covered under Sec. 1210.52 in OMB
allowances as a separate entry Control Number 1012-0004.
on Form ONRR-2014. * * *.
----------------------------------------------------------------------------------------------------------------
1206.58(a)(1)................. How do I determine a AUDIT PROCESS. See note.
transportation allowance if I
have a non-arm's-length
transportation contract or have
no contract? Non-arm's-length
or no contract. If you have a
non-arm's-length transportation
contract or no contract,
including those situations
where you or your affiliate
perform(s) transportation
services for you, the
transportation allowance is
based on your reasonable,
actual costs.
----------------------------------------------------------------------------------------------------------------
1206.58(a)(2)................. You must submit the actual cost 6 1 6
information to support the
allowance to ONRR on Form ONRR-
4110, Oil Transportation
Allowance Report, within 3
months after the end of the
calendar year to which the
allowance applies. * * *.
----------------------------------------------------------------------------------------------------------------
1206.58(a)(3)(iv)............. * * * After you have elected to 20 1 20
use either method for a
transportation system, you may
not later elect to change to
the other alternative without
approval of ONRR.
----------------------------------------------------------------------------------------------------------------
1206.58(a)(3)(iv)(A).......... * * * After you make an 20 1 20
election, you may not change
methods without ONRR's
approval. * * *.
----------------------------------------------------------------------------------------------------------------
[[Page 32145]]
1206.58(a)(4)(i).............. * * * Except as provided in this 40 1 40
paragraph (a)(4)(i), you may
not take an allowance for
transporting lease production
that is not royalty bearing
without ONRR's approval.
----------------------------------------------------------------------------------------------------------------
1206.58(a)(4)(ii)............. Notwithstanding the requirements 20 1 20
of paragraph (a)(4)(i) of this
section, you may propose to
ONRR a cost allocation method
on the basis of the values of
the products transported. * * *.
----------------------------------------------------------------------------------------------------------------
1206.58(a)(5)(ii) and (iii)... (ii) Where both gaseous and 20 1 20
liquid products are transported
through the same transportation
system, you must propose a cost
allocation procedure to ONRR. *
* * (iii) You must submit to
ONRR all available data to
support your proposal. * * *
You must submit your initial
proposal within 3 months after
the last day of the month for
which you request a
transportation allowance
(unless ONRR approves a longer
period).
----------------------------------------------------------------------------------------------------------------
1206.58(a)(6)................. You may apply to ONRR for an 20 1 20
exception from the requirement
that you compute actual costs
under paragraphs (a)(1) through
(5) of this section.
----------------------------------------------------------------------------------------------------------------
1206.58(b)(1)................. Reporting requirements. If ONRR 4 1 4
requests, you must submit all
data used to determine your
transportation allowance, You
must provide the data within a
reasonable period of time that
ONRR will determine.
----------------------------------------------------------------------------------------------------------------
1206.58(b)(2)................. You must report transportation 4 1 4
allowances as a separate entry
on Form ONRR-2014. * * *.
----------------------------------------------------------------------------------------------------------------
1206.58(b)(3)................. ONRR may require you to submit 12 1 12
all of the data that you used
to prepare your Form ONRR-4110.
You must submit the data within
a reasonable period of time
that ONRR determines.
----------------------------------------------------------------------------------------------------------------
1206.59(a).................... What interest applies if I Burden covered under Sec. 1210.52 in OMB
improperly report a Control Number 1012-0004.
transportation allowance? If
you deduct a transportation
allowance on Form ONRR-2014
without complying with the
requirements of Sec. Sec.
1206.56 and 1206.57 or Sec.
1206.58, you must pay
additional royalties due plus
late payment interest
calculated under Sec. 1218.54
of this chapter.
----------------------------------------------------------------------------------------------------------------
1206.60(a).................... What reporting adjustments must Burden covered under Sec. 1210.52 in OMB
I make for transportation Control Number 1012-0004.
allowances? If your actual
transportation allowance is
less than the amount that you
claimed on Form ONRR-2014 for
each month during the allowance
reporting period, you must pay
additional royalties due, plus
late payment interest
calculated under Sec. 1218.54
of this chapter.
----------------------------------------------------------------------------------------------------------------
1206.60(c).................... If you make an adjustment under Burden covered under Sec. 1210.52 in OMB
paragraph (a) or (b) of this Control Number 1012-0004.
section, then you must submit a
corrected Form ONRR-2014 to
reflect actual costs, together
with any payment, using
instructions that ONRR provides.
----------------------------------------------------------------------------------------------------------------
1206.61(a)(2)................. How will ONRR determine if my Burden covered under Sec. 1210.52 in OMB
royalty payments are correct? * Control Number 1012-0004.
* * If ONRR directs you to use
a different royalty value, you
must pay any additional
royalties due plus late payment
interest calculated under Sec.
1218.54 of this chapter.
----------------------------------------------------------------------------------------------------------------
1206.62(a).................... How do I request a value 20 1 20
determination? You may request
a value determination from ONRR
regarding any oil produced.
Your request must include: (1)
Be in writing. (2) Identify
specifically all leases
involved, all interest owners
of those leases, the
designee(s), and the
operator(s) for those leases.
(3) Completely explain all
relevant facts. * * * (4)
Include copies of all relevant
documents. (5) Provide your
analysis of the issue(s) * * *
(6) Suggest your proposed
valuation method.
----------------------------------------------------------------------------------------------------------------
[[Page 32146]]
1206.62(c)(2)................. After the Assistant Secretary Burden covered under Sec. 1210.52 in OMB
[for Indian Affairs] issues a Control Number 1012-0004.
value determination, you must
make any adjustments to royalty
payments that follow from the
determination, and, if you owe
additional royalties, you must
pay the additional royalties
due plus late payment interest
calculated under Sec. 1218.54
of this chapter.
----------------------------------------------------------------------------------------------------------------
1206.64....................... What records must I keep to AUDIT PROCESS. See note.
support my calculations of
value under this subpart? If
you determine the value of your
oil under this subpart, you
must retain all data relevant
to the determination of royalty
value. * * *.
----------------------------------------------------------------------------------------------------------------
Part 1206--PRODUCT VALUATION
Subpart E--Indian Gas
----------------------------------------------------------------------------------------------------------------
1206.172(b)(1)(ii)............ How do I value gas produced 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, Certification
for Not Performing Accounting
for comparison (Dual
Accounting), 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)............ You must pay and report on Form Burden covered under Sec. 1210.52 in OMB
ONRR-2014 additional royalties Control Number 1012-0004.
due no later than June 30
following each calendar year; *
* *.
----------------------------------------------------------------------------------------------------------------
1206.172(f)(1)(ii), (f)(2), (f) Excluding some or all tribal 40 1 40
and (f)(3). 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 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)................ You must make a separate Burden covered under Sec. 1206.173(a)(1).
election to use the alternative
methodology for dual accounting
for your Indian leases in each
ONRR-designated area. * * *.
----------------------------------------------------------------------------------------------------------------
1206.174(a)(4)(ii)............ How do I value gas production Burden covered under Sec. 1210.52 in OMB
when an index-based method Control Number 1012-0004.
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 32147]]
1206.174(b)(1)(i) and (iii); (b) Arm's-length contracts. * * AUDIT PROCESS. See note.
(b)(2); (d)(2). * (1) The value of gas, residue
gas, or any gas plant product
you sell under an arm's-length
contract is the gross proceeds
accruing to you or your
affiliates * * * (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)................... Supporting data. If you AUDIT PROCESS. See note.
determine the value of
production under paragraph (c)
of this section, you must
retain all data relevant to
determination of royalty value.
----------------------------------------------------------------------------------------------------------------
1206.174(f)................... Value guidance. You may ask ONRR 40 1 40
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? * * * 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)................... * * * If you do not perform dual Burden covered under Sec.
accounting, you must certify to 1206.172(b)(1)(ii).
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) This paragraph
explains how to determine your
allowance if you have an arm's-
length transportation contract.
(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.
----------------------------------------------------------------------------------------------------------------
1206.178(a)(1)(iii)........... If ONRR determines that the AUDIT PROCESS. See note.
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. * *
*.
----------------------------------------------------------------------------------------------------------------
[[Page 32148]]
1206.178(a)(2)(i) and (ii).... (a)(2)(i) * * * [Y]ou cannot 20 1 20
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).... (3)(i) If your arm's-length 40 1 40
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)............ You may use either depreciation 20 1 20
with a return on undepreciated
capital investment or a return
on depreciable capital
investment. After you have
elected to use either method
for a transportation system,
you may not later elect to
change to the other alternative
without ONRR approval.
----------------------------------------------------------------------------------------------------------------
1206.178(b)(2)(iv)(A)......... * * * Once you make an election, 20 1 20
you may not change methods
without ONRR approval.
----------------------------------------------------------------------------------------------------------------
1206.178(b)(3)(i)............. * * * Except as provided in this 40 1 40
paragraph, you may not take an
allowance for transporting a
product that is not royalty
bearing without ONRR approval.
----------------------------------------------------------------------------------------------------------------
1206.178(b)(3)(ii)............ As an alternative to the 20 1 20
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)................ If you transport both gaseous 40 1 40
and liquid products through the
same transportation system, you
must propose a cost allocation
procedure to ONRR. * * * You
are required to submit all
relevant data to support your
proposal. * * *.
----------------------------------------------------------------------------------------------------------------
1206.178(d)(1)................ (d) Reporting your AUDIT PROCESS. See note.
transportation allowance.(1) If
ONRR requests, you must submit
all data used to determine your
transportation allowance. * * *.
----------------------------------------------------------------------------------------------------------------
1206.178(d)(2), (e), and (d) Reporting your Burden covered under Sec. 1210.52 in OMB
(f)(1). transportation allowance. (2) Control Number 1012-0004.
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 Sec. 1218.54
of this chapter 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. * * *.
----------------------------------------------------------------------------------------------------------------
[[Page 32149]]
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)........... If ONRR determines that the AUDIT PROCESS. See note.
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)................ If your arm's-length processing 40 1 40
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 12 240
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)............ You may use either depreciation 20 1 20
with a return on undepreciable
capital investment or a return
on depreciable capital
investment. After you elect to
use either method for a
processing plant, you may not
later elect to change to the
other alternative without ONRR
approval. * * *.
----------------------------------------------------------------------------------------------------------------
1206.180(b)(2)(iv)(A)......... * * * Once you make an election, 20 1 20
you may not change methods
without ONRR approval. * * *.
----------------------------------------------------------------------------------------------------------------
1206.180(b)(3)................ Your processing allowance under 20 1 20
this paragraph (b) must be
determined based upon a
calendar year or other period
if you and ONRR agree to an
alternative.
----------------------------------------------------------------------------------------------------------------
1206.180(c)(1)................ (c) Reporting your 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)(2) You must report gas Burden covered under Sec. 1210.52 in OMB
processing allowances as a Control Number 1012-0004.
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 Sec. 1218.54
of this chapter 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? * * * 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.
----------------------------------------------------------------------------------------------------------------
[[Page 32150]]
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. * * * 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.............. ................................ .............. 149 1,319
----------------------------------------------------------------------------------------------------------------
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.
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.
The authority for this action is the Paperwork Reduction Act of
1995 (44 U.S.C. 3501 et seq.).
Gregory J. Gould,
Director for Office of Natural Resources Revenue.
[FR Doc. 2018-14854 Filed 7-10-18; 8:45 am]
BILLING CODE 4335-30-P
