Agency Information Collection Activities: Indian Oil and Gas Valuation, 30 CFR Parts 1202, 1206, and 1207, 20708-20709 [2021-08153]

Agencies

• DEPARTMENT OF THE INTERIOR
• Office of Natural Resources Revenue

[Federal Register Volume 86, Number 75 (Wednesday, April 21, 2021)]
[Notices]
[Pages 20708-20709]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-08153]


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DEPARTMENT OF THE INTERIOR

Office of Natural Resources Revenue

[Docket No. ONRR-2011-0021; DS63644000 DR2000000.CH7000212D1113RT; OMB 
Control Number 1012-0002]


Agency Information Collection Activities: Indian Oil and Gas 
Valuation, 30 CFR Parts 1202, 1206, and 1207

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

ACTION: Notice of information collection; request for comment.

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SUMMARY: In accordance the Paperwork Reduction Act of 1995 (``PRA''), 
ONRR is proposing to renew an information collection. Currently, this 
information collection is authorized by the Office of Management and 
Budget (``OMB'') under OMB Control Number 1012-0002, which expires on 
February 28, 2022. This Information Collection Request (``ICR'') 
pertains to the valuation of oil and gas produced from leases on Indian 
lands, Indian oil and gas royalties, and required recordkeeping for oil 
and gas valuation and royalties for Indian Tribes and allottees. ONRR 
uses forms ONRR-4109, ONRR-4110, ONRR-4295, ONRR-4393, ONRR-4410, and 
ONRR-4411 as part of these information collection requirements.

DATES: Interested persons are invited to submit comments on or before 
June 21, 2021.

ADDRESSES: All comment submissions must (1) reference ``OMB Control 
Number 1012-0002'' in the subject line; (2) be sent to ONRR before the 
close of the comment period listed under DATES; and (3) be sent through 
one of the following two methods:
     Electronically via the Federal eRulemaking Portal: Please 
visit https://www.regulations.gov. In the Search Box, enter the Docket 
ID Number for this ICR renewal (``ONRR-2011-0021'') and click 
``search'' to view the publications associated with the docket folder. 
Locate the document with an open comment period and click the ``Comment 
Now!'' button. Follow the prompts to submit your comment prior to the 
close of the comment period.
     Email Submissions: Please submit your comments to 
[email protected] with the OMB Control Number (``OMB 
Control Number 1012-0002'') listed in the subject line of your email. 
Email submissions must be postmarked on or before the close of the 
comment period.
    Docket: To access the docket folder to view the ICR Federal 
Register publications, go to https://www.regulations.gov and search 
``ONRR-2011-0021'' to view renewal notices recently published in the 
Federal Register, publications associated with prior renewals, and 
applicable public comments received for this ICR. ONRR will make the 
comments submitted in response to this notice available for public 
viewing at https://www.regulations.gov.
    OMB ICR Data: You may also view information collection review data 
for this ICR, including past OMB approvals, at https://www.reginfo.gov/public/do/PRASearch. Under the ``OMB Control Number'' heading enter 
``1012-0002'' and click the ``Search'' button located at the bottom of 
the page. To view the ICR renewal or OMB approval status, click on the 
most recent entry. On the ``View ICR--OIRA Conclusion'' page, check the 
box next to ``All'' to display all available ICR information provided 
by OMB.

FOR FURTHER INFORMATION CONTACT: To request additional information 
about this ICR, please contact Mr. Glen Reese, Reference & Reporting 
Management, ONRR, by telephone (303) 231-3160, or by email to 
[email protected]. Individuals who are hearing or speech impaired may 
call the Federal Relay Service at 1-800-877-8339 for TTY assistance.

SUPPLEMENTARY INFORMATION: Pursuant to the PRA, 44 U.S.C. 3501, et 
seq., and 5 CFR 1320.5, all information collections, as defined in 5 
CFR 1320.3, require approval by OMB. ONRR may not conduct or sponsor, 
and you are not required to respond to, a collection of information 
unless it displays a currently valid OMB control number. As part of 
ONRR's continuing effort to reduce paperwork and respondent burdens, 
ONRR is inviting the public and other Federal agencies to comment on 
new, proposed, revised, and continuing collections of information in 
accordance with the PRA and 5 CFR 1320.8(d)(1). This helps ONRR to 
assess the impact of its information collection requirements and 
minimize the public's reporting burden. It also helps the public 
understand ONRR's information collection requirements and provide the 
requested data in the desired format.
    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, e.g., 
permitting electronic submission of response.
    Comments that you submit in response to this notice are a matter of 
public record. ONRR will include or summarize each comment in its 
request to OMB to approve this ICR. 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 ONRR in your comment to 
withhold your personal identifying information from public

[[Page 20709]]

review, ONRR cannot guarantee that it will be able to do so.
    Abstract: The Secretary of the United States Department of the 
Interior (``Secretary'') is responsible for mineral resource 
development on Federal and Indian lands and the Outer Continental 
Shelf. Laws pertaining to Federal and Indian mineral leases are posted 
at https://www.onrr.gov/Laws_R_D/PubLaws/index.htm. Pursuant to the 
Federal Oil and Gas Royalty Management Act of 1982 (``FOGRMA'') and 
other laws, the Secretary's responsibilities include maintaining a 
comprehensive inspection, collection, and fiscal and production 
accounting and auditing system that: (1) Accurately determines mineral 
royalties, interest, and other payments owed, (2) collects and accounts 
for such amounts in a timely manner, and (3) disburses the funds 
collected. See 30 U.S.C. 1701 and 1711. ONRR performs these royalty and 
revenue management responsibilities for the Secretary. See Secretarial 
Order No. 3306.
    (a) General Information: The information collections that ONRR 
covers in this ICR are found at 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 allottees receive all royalties generated from their lands. 
Determining product valuation is essential to ensure that Indian Tribes 
and allottees receive payment on the full value of the minerals removed 
from their lands.
    (b) Information Collections: This ICR covers the paperwork 
requirements under 30 CFR parts 1202, 1206, and 1207 as follows:
    (1) Indian Oil--Regulations at 30 CFR part 1206, subpart B, govern 
the valuation of oil produced from Indian oil and gas leases for 
royalty purposes, and are consistent with mineral leasing and other 
applicable laws. Generally, these regulations provide that a lessee 
must determine the value of oil based upon the higher of (1) the gross 
proceeds under an arm's-length contract; or (2) a major-portion 
analysis. In some situations, ONRR's regulations require reporting 
using form ONRR-4110, Oil Transportation Allowance Report, as part of 
these ICR requirements.
    ONRR and Tribal audit personnel use the information collected on 
form ONRR-4110 to evaluate (1) whether lessee-reported transportation 
allowances are within regulatory allowance limitations and calculated 
accurately under applicable regulations; and (2) whether the lessee has 
reported and paid the proper royalty amount. A lessee must use form 
ONRR-4110 when its transportation allowance includes costs incurred 
under non-arm's-length or no-contract transportation situations.
    (2) Indian Gas--Regulations at 30 CFR part 1206, subpart E, govern 
the valuation of natural gas produced from Indian oil and gas leases 
for royalty purposes. ONRR's regulations require reporting using ONRR 
forms ONRR-4109, ONRR-4295, ONRR-4410, and ONRR-4411 as part of these 
ICR requirements as follows:
    (a) ONRR and Tribal audit personnel use the information collected 
on form ONRR-4109, Gas Processing Allowance Summary Report, to evaluate 
(1) whether lessee-reported processing allowances are within regulatory 
allowance limitations and calculated under applicable regulations; and 
(2) whether a lessee has reported and paid the proper royalty amount.
    (b) ONRR and Tribal audit personnel use the information collected 
on form ONRR-4295, Gas Transportation Allowance Report, to evaluate (1) 
whether lessee-reported transportation allowances are within regulatory 
allowance limitations and calculated under applicable regulations; and 
(2) whether a lessee has reported and paid the proper royalty amount.
    (c) A lessee must use form ONRR-4410, Accounting for Comparison 
[Dual Accounting], to certify when dual accounting is not required on 
an Indian lease (part A) or to make an election for actual or 
alternative dual accounting for an Indian lease (part B). Most Indian 
leases contain the requirement to perform accounting for comparison 
(dual accounting) for gas produced from the lease. Therefore, a lessee 
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.
    (d) A lessee uses form ONRR-4411, Safety Net Report, when it sells 
gas production from an Indian oil or gas lease in an ONRR-designated 
index zone beyond the first index pricing point. The safety net 
calculation establishes the minimum value of natural gas production 
from Indian oil and gas leases for royalty purposes. This reporting 
requirement ensures that Indian lessors receive all royalties due and 
supports ONRR's compliance activities.
    (3) Indian Oil and Gas--Regulations at 30 CFR 1206.56(b)(2) and 
1206.177(c)(2) and (c)(3) provide that a lessee must submit a form 
ONRR-4393, Request to Exceed Regulatory Allowance Limitation, as part 
of a valid request to exceed the regulatory allowance limit of 50 
percent of royalty value for transportation allowances. OMB approved 
the form ONRR-4393 under OMB Control Number 1012-0005, which otherwise 
pertains to Federal oil and gas leases. This form provides ONRR with 
the necessary data to make a decision on whether to approve or deny the 
request.
    The requirement to report is mandatory for form ONRR-4410 and, 
under certain circumstances, form ONRR-4411. To obtain certain 
benefits, a lessee must file forms ONRR-4109, ONRR-4110, ONRR-4295, and 
ONRR-4393.
    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-
4393, ONRR-4410, and ONRR-4411.
    Type of Review: Extension of a currently approved collection.
    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: Annual and on occasion.
    Total Estimated Annual Non-Hour Burden Cost: ONRR identified no 
``non-hour cost'' burden associated with this collection of 
information.
    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 PRA (44 U.S.C. 3501, et seq.).

Kimbra G. Davis,
Director for Office of Natural Resources Revenue.
[FR Doc. 2021-08153 Filed 4-20-21; 8:45 am]
BILLING CODE 4335-30-P