Agency Information Collection Activities; Submission to the Office of Management and Budget for Review and Approval; Suspensions Pending Appeal and Bonding, 42426-42428 [2020-15124]

Agencies

• DEPARTMENT OF THE INTERIOR
• Office of Natural Resources Revenue

[Federal Register Volume 85, Number 135 (Tuesday, July 14, 2020)]
[Notices]
[Pages 42426-42428]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-15124]


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DEPARTMENT OF THE INTERIOR

Office of Natural Resources Revenue

[Docket No. ONRR-2011-0008; DS63644000 DR2000000.CH7000 190D1113RT; OMB 
Control Number 1012-0006]


Agency Information Collection Activities; Submission to the 
Office of Management and Budget for Review and Approval; Suspensions 
Pending Appeal and Bonding

AGENCY: 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 (PRA), 
the Office of Natural Resources Revenue (ONRR) is proposing to renew an 
information collection. Through this Information Collection Request 
renewal (ICR), ONRR seeks renewed authority to collect information 
related to the paperwork requirements necessary to

[[Page 42427]]

post a surety or bond, or demonstrate financial solvency.

DATES: Submit written comments on or before August 13, 2020.

ADDRESSES: Written comments and recommendations for the proposed 
information collection should be sent within 30 days of publication of 
this notice to www.reginfo.gov/public/do/PRAMain. You may find this 
particular information collection by selecting ``Currently under 30-day 
Review--Open for Public Comments'' or by using the search function. 
Please provide a copy of your comments to Mr. Luis Aguilar, Regulatory 
Specialist, ONRR, Building 85, MS 64400B, Denver Federal Center, West 
6th Ave. and Kipling St., Denver, Colorado 80225, or by email to 
[email protected]. Please reference OMB Control Number 1012-0006 in 
the subject line of your comments.

FOR FURTHER INFORMATION CONTACT: To request additional information 
about this ICR, contact Kimberly Werner, Financial Services, ONRR, at 
(303) 231-3801, 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 PRA and 5 CFR 
1320.8(d)(1), ONRR is providing the general public and other Federal 
agencies with an opportunity to comment on new, proposed, revised, and 
continuing collections of information. This helps ONRR assess the 
impact of the 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. A Federal Register notice with a 60-day public 
comment period soliciting comments on this collection of information 
was published on March 25, 2020 (85 FR 16954). ONRR did not receive any 
comments.
    As part of our continuing effort to reduce paperwork and respondent 
burdens, ONRR is again soliciting comments from the public and other 
Federal agencies on the proposed ICR described below. ONRR is 
especially interested in public comments addressing the following:
    (1) Whether or not the collection of information is necessary for 
the proper performance of the functions of the agency, including 
whether or not the information will have practical utility;
    (2) The accuracy of ONRR's estimate of the burden for this 
collection of information, including the validity of the methodology 
and assumptions used;
    (3) Ways to enhance the quality, utility, and clarity of the 
information to be collected; and
    (4) How might the agency minimize the burden of the collection of 
information on those who are to respond, including through the use of 
appropriate automated, electronic, mechanical, or other technological 
collection techniques or other forms of information technology, (for 
example, permitting electronic submission of response).
    Comments that you submit in response to this notice are a matter of 
public record. Before including your address, phone number, email 
address, or other personal identifying information in your comment, you 
should be aware that your entire comment--including your personal 
identifying information--may be made publicly available at any time. 
While you can ask in your comment to withhold your personal identifying 
information from public review, ONRR cannot guarantee that it will be 
able to do so.
    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 carry out a comprehensive 
inspection, collection, and fiscal and production accounting and 
auditing system that provides the capability to: (1) Accurately 
determine mineral royalties, interest, and other payments owed, (2) 
collect and account for such amounts in a timely manner, and (3) 
disburse the funds collected.
    The Secretary also has a trust responsibility to seek advice and 
information from Indian beneficiaries. ONRR performs the minerals 
revenue management functions for the Secretary and assists the 
Secretary in carrying out the Department's trust responsibility for 
Indian lands.
    The laws pertaining to mineral leases on Federal and Indian lands 
are posted at https://www.onrr.gov/Laws_R_D/PubLaws/default.htm.
    (a) General Information: When a company or an individual enters 
into a lease to explore, develop, produce, and dispose of minerals from 
Federal or Indian lands, that company or individual agrees to pay the 
lessor a share in an amount or value of production from the leased 
lands. The lessee or its designee must report various kinds of 
information to the lessor relative to the disposition of the leased 
minerals. Such information is generally available within the records of 
the lessee or others involved in developing, transporting, processing, 
purchasing, or selling such minerals.
    If ONRR determines that a lessee did not properly report or pay, it 
may issue orders, notices of noncompliance, and civil penalty notices 
to compel corrective reporting, payment, or both. Lessees have a right 
to appeal ONRR's determinations.
    (b) Information Collections: Regulations under 30 CFR part 1243 
govern the submission of appropriate surety instruments to suspend 
compliance with orders or decisions and to stay the accrual of civil 
penalties (if the Office of Hearings and Appeals grants a lessee's 
petition to stay accrual of civil penalties) pending administrative 
appeal for Federal and Indian leases. For Federal oil and gas leases, 
under 30 U.S.C. 1724(l) and its implementing regulations under 30 CFR 
part 1243, an appellant requesting a suspension without providing a 
surety must submit information to demonstrate financial solvency. This 
ICR covers the burden hours associated with submitting financial 
statements and surety instruments required to stay an ONRR order, 
decision, or accrual of civil penalties.
    (c) Stay of Payment Pending Appeal: Title 30 CFR 1243.1 states that 
lessees or recipients of ONRR orders may suspend compliance with an 
order if they appeal under 30 CFR part 1290. Pending appeal, ONRR may 
suspend the payment requirement if the appellant submits a formal 
agreement of payment in the case of default, such as a bond or other 
surety. For Federal oil and gas leases only, the appellant may 
alternatively demonstrate financial solvency. If the Office of Hearings 
and Appeals grants a lessee's, or other recipient of a notice of 
noncompliance or civil penalty notice, request to stay the accrual of 
civil penalties under 30 CFR 1241.55(b)(2) and 1241.63(b)(2), the 
lessee or other recipient must post a bond or other surety. For Federal 
oil and gas leases only, the appellant may alternatively demonstrate 
financial solvency.
    ONRR accepts the following surety types: form ONRR-4435, 
Administrative Appeal Bond; form ONRR-4436, Letter of Credit; form 
ONRR-4437, Assignment of Certificate of Deposit; Self-bonding; and U.S. 
Treasury Securities.
    When an appellant selects one of the surety types and puts it in 
place, the appellant must maintain the surety until the appeal's 
completion. If the appeal is decided in favor of the appellant, ONRR 
will return the surety to the appellant. If the appeal is decided in 
favor of ONRR, then ONRR will take action to collect the total amount 
due or draw

[[Page 42428]]

down on the surety. ONRR will draw down on a surety if the appellant 
fails to comply with requirements relating to the amount due, 
timeframe, or surety submission or resubmission. Whenever ONRR draws 
down on a surety, it reduces the total amount due, which is defined as 
the unpaid principal plus the interest accrued to the projected receipt 
date of the surety payment. Appellants may refer to the Surety 
Instrument Posting Instructions, available on our website at https://www.onrr.gov/compliance/appeals.htm.
    (d) Forms and Other Surety Types: An appellant may file the 
following forms and surety types:
    (1) Form ONRR-4435 Administrative Appeal Bond--An appellant may 
file form ONRR-4435, Administrative Appeal Bond, which ONRR uses to 
secure the financial interests of the public and Indian lessors during 
the entire administrative and judicial appeal processes. Under 30 CFR 
1243.4, an appellant is required to submit its contact and surety 
amount information on the bond to obtain the benefit of suspension of 
an obligation to comply with an order. The bond must be issued by a 
qualified surety company that the U.S. Department of the Treasury 
approves (see Department of the Treasury Circular No. 570, revised 
periodically in the Federal Register). ONRR's Director, or the 
delegated bond-approving officer, maintains the bonds in a secure 
facility. After an appeal's conclusion, ONRR may release and return the 
bond to the appellant or collect payment on the bond. If collection is 
necessary for a remaining balance, ONRR will issue a demand for payment 
to the surety company with a notice to the appellant. ONRR will also 
include all interest accrued on the affected receivable.
    (2) Form ONRR-4436 Letter of Credit--An appellant may choose to 
file form ONRR-4436, Letter of Credit, with no modifications. 
Requirements under 30 CFR 1243.4 continue to apply. ONRR's Director, or 
the delegated bond-approving officer, maintains the Letter of Credit 
(LOC) in a secure facility. The appellant is responsible for verifying 
that the bank provides a current Fitch rating to ONRR. After the 
appeal's conclusion, ONRR may release and return the LOC to the 
appellant or collect payment on the LOC. If collection is necessary for 
a remaining balance, ONRR will issue a demand for payment that includes 
the principal amount, plus the interest assessed on the receivable, to 
the bank with a notice to the appellant.
    (3) Form ONRR-4437 Assignment of Certificate of Deposit--An 
appellant may choose to secure a debt by requesting to use a 
Certificate of Deposit (CD) from a bank with the required minimum 
rating and submitting form ONRR-4437, Assignment of Certificate of 
Deposit. Requirements under 30 CFR 1243.4 continue to apply. The 
appellant must file the request with ONRR prior to the invoice due 
date. ONRR will accept a book-entry CD that explicitly assigns the CD 
to ONRR's Director. If collection of the CD is necessary for an unpaid 
balance, ONRR will return unused CD funds to the appellant after total 
settlement of the appealed issues, including applicable interest 
charges.
    (4) Self-bonding--For Federal oil and gas leases, regulations under 
30 CFR 1243.201 provide that no surety instrument is required when a 
person representing the appellant periodically demonstrates, to ONRR's 
satisfaction, that the guarantor or appellant is financially solvent or 
otherwise able to pay the obligation. The appellant must submit a 
written request to ``self-bond'' every time a new appeal is filed. To 
evaluate the financial solvency and exemption from requirements of an 
appellant to maintain a surety related to an appeal, ONRR requires the 
appellant to submit a consolidated balance sheet, subject to annual 
audit. In some cases, ONRR also requires copies of the most recent tax 
returns (up to three years) filed by the appellant.
    In addition, an appellant must annually submit financial 
statements, subject to annual audit, to support its net worth. ONRR 
uses the consolidated balance sheet or business information supplied to 
evaluate the financial solvency of a lessee, designee, or payor seeking 
a stay of payment obligation pending review. If the appellant does not 
have a consolidated balance sheet documenting its net worth, or if it 
does not meet the $300 million net worth requirement, ONRR selects a 
business information or credit reporting service to provide information 
concerning the appellant's financial solvency. ONRR charges the 
appellant a $50 fee each time it reviews data from a business 
information or credit reporting service. The fee covers ONRR's cost to 
determine an appellant's financial solvency.
    (5) U.S. Treasury Securities--An appellant may choose to secure its 
debts by requesting to use a U.S. Treasury Security (TS). The appellant 
must file the letter of request with ONRR prior to the invoice due 
date. The TS must be a U.S. Treasury note or bond with maturity equal 
to or greater than one year. The TS must equal 120 percent of the 
appealed amount plus 1 year of estimated interest (necessary to protect 
ONRR against interest rate fluctuations). ONRR only accepts book-entry 
TS.
    Title of Collection: Suspensions Pending Appeal and Bonding.
    OMB Control Number: 1012-0006.
    Form Number: Forms ONRR-4435, ONRR-4436, and ONRR-4437.
    Type of Review: Extension of a currently approved collection.
    Respondents/Affected Public: Businesses.
    Total Estimated Number of Annual Respondents: 105 Federal or Indian 
appellants.
    Total Estimated Number of Annual Responses: 105.
    Estimated Completion Time per Response: 2 hours.
    Total Estimated Number of Annual Burden Hours: 210.
    Respondent's Obligation: Mandatory.
    Frequency of Collection: Annual and on occasion.
    Total Estimated Annual Nonhour Burden Cost: There are no additional 
recordkeeping costs associated with this information collection. 
However, ONRR estimates 5 appellants per year will pay a $50 fee to 
obtain credit data from a business information or credit reporting 
service, which is a total ``non-hour'' cost burden of $250 per year (5 
appellants per year x $50 = $250).
    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.).

Kimbra G. Davis,
Director, Office of Natural Resources Revenue.
[FR Doc. 2020-15124 Filed 7-13-20; 8:45 am]
BILLING CODE 4335-30-P