Agency Information Collection Activities: Submission to the Office of Management and Budget for Review and Approval; Federal Oil and Gas Valuation, 5033-5034 [2020-01360]

Agencies

• DEPARTMENT OF THE INTERIOR
• Office of Natural Resources Revenue

[Federal Register Volume 85, Number 18 (Tuesday, January 28, 2020)]
[Notices]
[Pages 5033-5034]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-01360]


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DEPARTMENT OF THE INTERIOR

Office of Natural Resources Revenue

[Docket No. ONRR-2012-0006; DS63644000 DRT000000.CH7000 201D1113RT; OMB 
Control Number 1012-0005]


Agency Information Collection Activities: Submission to the 
Office of Management and Budget for Review and Approval; Federal Oil 
and Gas Valuation

AGENCY: Office of the Secretary, Office of Natural Resources Revenue, 
Interior.

ACTION: Notice of information collection; request for comment.

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SUMMARY: In accordance with the Paperwork Reduction Act of 1995, we, 
the Office of Natural Resources Revenue (ONRR) are proposing to renew 
an information collection. ONRR seeks renewed authority to collect 
information pertaining to the Federal oil and gas valuation 
regulations, which include transportation and processing regulatory 
allowance limits, and the accounting and auditing relief for marginal 
properties. Also, for certain time periods, there is one form (ONRR-
4393 (Request to Exceed Regulatory Allowance Limitation)) associated 
with this information collection.

DATES: Interested persons are invited to submit comments on or before 
February 27, 2020.

ADDRESSES: Send written comments on this information collection request 
(ICR) to the Office of Management and Budget's Desk Officer for the 
Department of the Interior by email to [email protected]; or 
via facsimile to (202) 395-5806. Please provide a copy of your comments 
to Mr. Luis Aguilar, Regulatory Specialist, ONRR, P.O. Box 25165, MS 
64400B, Denver, Colorado 80225-0165, or by email to 
[email protected]. Please reference ``OMB Control Number 1012-
0005'' in the subject line of your comments.

FOR FURTHER INFORMATION CONTACT: Mr. Peter Christnacht, Royalty 
Valuation, ONRR, telephone at (303) 231-3651, or email to 
[email protected]. You may also view the ICR at https://www.reginfo.gov/public/do/PRAMain.

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 published a Federal Register notice, with a 60-day public 
comment period soliciting comments on this collection of information on 
September 23, 2019 (84 FR 49760). During the 60-day period, we 
specifically reached out to five companies impacted by this ICR to 
request input. In response to the outreach, we received three 
responsive comments.
    The first comment we received stated:
    I have read this notice and agree with the burden hours.
    The second comment we received stated:
    We have read this notice and agree with the burden hours.
    The third comment we received stated:
    We do not disagree with the burden hours, and do not have anything 
further to add.
    Once again, we are soliciting comments on this proposed ICR that is 
described below. We are especially interested in public comment 
addressing the following issues mentioned in the Office of Management 
and Budget (OMB) regulations at 5 CFR 1320.8(d)(1): (1) Is the 
collection necessary to execute ONRR's proper functions; (2) will this 
information be processed and used in a timely manner; (3) is the 
estimate of burden hours accurate; (4) how might ONRR enhance the 
quality, usefulness, and clarity of the information 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. Before including your Personally Identifiable 
Information (PII), such as your address, phone number, email address, 
or other PII 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 can 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 this ICR at https://www.onrr.gov/Laws_R_D/FRNotices/ICR0136.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 (1) manage mineral resources 
production from Federal and Indian lands and the OCS; (2) collect the 
royalties and other mineral revenues due; and (3) distribute the funds 
collected. We have posted the laws pertaining to mineral leases on 
Federal and Indian lands and the OCS at https://www.onrr.gov/Laws_R_D/PubLaws/index.htm.
    The Secretary also has a 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.

General Information

    When a company or an individual enters into a lease to explore, 
develop, produce, and dispose of minerals from Federal or Indian lands, 
that company or individual agrees to pay the lessor a share of the 
value of production from the leased lands. The lessee, or their 
designee, must report various kinds of information, related to the 
disposition of the leased minerals, to the lessor. Such information is 
generally available within the records of the lessee or others involved 
in developing, transporting, processing, purchasing, or selling such 
minerals.
    You can find the information collections covered in this ICR at 
title 30 of the Code of Federal Regulations (CFR) parts:

[[Page 5034]]

     1202, subparts C and D, which pertain to Federal oil and 
gas royalties.
     1204, subpart C, which pertains to accounting and auditing 
relief for marginal properties.
     1206, subparts C and D, which pertain to Federal oil and 
gas product valuation.

Information Collections

    ONRR, acting for the Secretary, uses the information we collect to 
ensure that lessees accurately value and appropriately pay all 
royalties based on the oil and gas produced from Federal onshore and 
offshore leases. ONRR and other Federal government entities, including 
the Bureau of Land Management and the State governmental entities, use 
the information for audit purposes and for evaluating the 
reasonableness of product valuation or allowance claims that lessees 
submit. Please refer to the Data section for the estimated total burden 
hours.

A. Federal Oil and Gas Valuation Regulations

    The valuation regulations at 30 CFR part 1206, subparts C and D, 
mandate that lessees collect and submit information used to value their 
Federal oil and gas, including (1) transportation and processing 
allowances and (2) regulatory allowance limit information. Lessees 
report certain data on the Report of Sales and Royalty Remittance (form 
ONRR-2014, OMB Control Number 1012-0004-Royalty and Production 
Reporting). The information that we request is the minimum necessary to 
carry out our mission and places the least possible burden on 
respondents. If ONRR does not collect this information, both Federal 
and State governments may incur a loss of royalties.
    Transportation and Processing Regulatory Allowance Limits: Lessees 
may deduct the reasonable, actual costs of transportation and 
processing from Federal royalties. The lessees report these allowances 
on form ONRR-2014. For oil and gas, regulations establish the allowable 
limit on transportation allowance deductions at 50 percent of the value 
of the oil or gas. For gas only, regulations establish the allowable 
limit on processing allowance deductions at 66\2/3\ percent of the 
value of each gas plant product.
    Request to Exceed Regulatory Allowance Limitation, form ONRR-4393: 
For certain time periods, lessees may request to exceed the regulatory 
limits for a transportation allowance, processing allowance, or both. 
Upon proper application from the lessee, ONRR may approve oil or gas 
transportation allowances in excess of 50 percent or gas processing 
allowances in excess of 66\2/3\ percent on Federal leases. Lessees must 
complete and submit form ONRR-4393, including a letter and supporting 
documentation, for both Federal and Indian leases to request to exceed 
allowance limitations. This ICR covers only Federal leases; therefore, 
we have not included burden hours of form ONRR-4393 for Indian leases 
in this ICR. We include burden hours for Indian oil and gas leases in 
OMB Control Number 1012-0002.

B. Accounting and Auditing Relief for Marginal Properties

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

OMB Approval

    We will request OMB approval to continue to collect, from 
companies, lessees, and designees, information used (1) to value their 
Federal oil and gas, including transportation and processing 
allowances, and (2) to request accounting and auditing relief approval 
for qualifying Federal marginal properties. Not collecting this 
information will limit the Secretary's ability to discharge fiduciary 
duties and may also result in the loss of royalty payments. We protect 
the proprietary information that we receive and do not collect items of 
a sensitive nature.
    ONRR requires that lessees respond to information collections 
relating to valuing Federal oil and gas, including (a) transportation 
and processing allowances and (b) the request to exceed regulatory 
allowance limit information (form ONRR-4393). ONRR also requires that 
lessees submit the allowance information to obtain benefits for 
claiming allowances on form ONRR-2014. In addition, ONRR requires 
lessees to respond to information collections in regard to requesting 
approval for accounting and auditing relief.

Data

    Title of Collection: Federal Oil and Gas Valuation--30 CFR parts 
1202, 1204 and 1206.
    OMB Control Number: 1012-0005.
    Form Number: ONRR-4393.
    Type of Review: Extension of a currently approved collection.
    Respondents/Affected Public: Businesses.
    Total Estimated Number of Annual Respondents: 120 Federal lessees/
designees and 7 States for Federal oil and gas.
    Total Estimated Number of Annual Responses: 143.
    Estimated Completion Time per Response: The average completion time 
is 70.06 hours per response. The average completion time calculated by 
dividing the total estimated burden hours (10,018) by the estimated 
annual responses (143).
    Total Estimated Number of Annual Burden Hours: 10,018 hours.
    Respondent's Obligation: Submission of lessees' information used 
for valuing Federal oil and gas, including transportation and 
processing allowances, to ONRR is mandatory. Lessees and designees 
requesting accounting and auditing relief for qualifying Federal 
marginal properties is required to obtain or retain a benefit.
    Frequency of Collection: Annually and on occasion.
    Total Estimated Annual Nonhour Burden Cost: We have identified no 
``nonhour'' cost burden associated with this collection of information.
    We have not included in our estimates certain requirements that 
companies perform in the normal course of business and that ONRR 
considers usual and customary.
    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.

    Authority:  Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et 
seq).

Gregory J. Gould,
Director, Office of Natural Resources Revenue.
[FR Doc. 2020-01360 Filed 1-27-20; 8:45 am]
 BILLING CODE 4335-30-P