Agency Information Collection Activities: Suspensions Pending Appeal and Bonding, 3430-3433 [2023-01009]

Agencies

• DEPARTMENT OF THE INTERIOR
• Office of Natural Resources Revenue

[Federal Register Volume 88, Number 12 (Thursday, January 19, 2023)]
[Notices]
[Pages 3430-3433]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-01009]


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DEPARTMENT OF THE INTERIOR

Office of Natural Resources Revenue

[Docket No. ONRR-2011-0008; DS63644000 DRT000000.CH7000 234D1113RT; OMB 
Control Number 1012-0006]


Agency Information Collection Activities: 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 revise a currently approved information collection to 
expand its scope to include

[[Page 3431]]

the mineral estate underlying Osage County, Oklahoma (``Osage Mineral 
Estate''). Through this revision, ONRR seeks authority to collect 
information related to the paperwork requirements under the Bureau of 
Indian Affairs' (``BIA'') proposed regulations to post a surety or 
bond, or demonstrate financial solvency. ONRR uses forms ONRR-4435, 
ONRR-4436, and ONRR-4437 as part of these information collection 
requirements.

DATES: Submit written comments on or before March 20, 2023.

ADDRESSES: All comment submissions must (1) reference ``OMB Control 
Number 1012-0006'' in the subject line; (2) be sent to ONRR before the 
close of the comment period listed under DATES; and (3) be sent using 
the following method:
    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-2011-0008'') 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.
    Docket: To access the docket folder to view the ICR Federal 
Register publications, go to https://www.regulations.gov and search 
``ONRR-2011-0008'' 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: OMB also maintains information on ICR renewals and 
approvals. You may access this information at https://www.reginfo.gov/public/do/PRASearch. Please use the following instructions: Under the 
``OMB Control Number'' heading enter ``1012-0006'' and click the 
``Search'' button located at the bottom of the page. To view the ICR 
renewal or OMB approval status, click on the latest entry (based on the 
most recent date). 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 Kimberly Werner, Financial Services, 
ONRR, by telephone at (303) 231-3801 or email to 
[email protected]. Individuals in the United States who are 
deaf, deafblind, hard of hearing, or have a speech disability may dial 
711 (TTY, TDD, or TeleBraille) to access telecommunications relay 
services. Individuals outside the United States should use the relay 
services offered within their country to make international calls to 
the point-of-contact in the United States.

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 the collection of information is necessary for the 
proper performance of the functions of the agency, including whether 
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 review, ONRR 
cannot guarantee that it will be able to do so.
    Abstract: (a) General Information: The Federal Oil and Gas Royalty 
Management Act of 1982 (``FOGRMA'') directs the Secretary of the 
Interior (``Secretary'') to ``establish a comprehensive inspection, 
collection and fiscal and production accounting and auditing system to 
provide the capability to accurately determine oil and gas royalties, 
interest, fines, penalties, fees, deposits, and other payments owed, 
and to collect and account for such amounts in a timely manner.'' 30 
U.S.C. 1711. ONRR performs these and other mineral revenue management 
responsibilities for the Secretary. See U.S. Department of the Interior 
Departmental Manual, 112 DM 34.1 (Sept. 9, 2020). FOGRMA and ONRR's 
regulations at 30 CFR Chapter XII do not apply to the Osage Mineral 
Estate.
    The Osage Mineral Estate is held in trust by the United States for 
the benefit of the Osage Nation. See Osage Allotment Act of June 28, 
1906, Public Law 59-321, Sec.  3, 34 Stat. 539, as amended. BIA's 
regulations at 25 CFR part 226 contain requirements specific to the 
Osage Mineral Estate, and, historically, BIA has performed compliance 
activities related to those requirements. In conjunction with this ICR, 
BIA has published a proposed rule in the Federal Register on January 
13, 2023 (88 FR 2430) that would require a lessee of the Osage Mineral 
Estate to submit to ONRR certain forms already authorized in this ICR 
for Federal and non-Osage Indian lands. Accordingly, this ICR revision 
adds information collections specific to oil and gas royalty and 
production reporting for the Osage Mineral Estate.
    For Federal lands only, Section 4(l), ``Stay of Payment Obligation 
Pending Review,'' of the Federal Oil and Gas Royalty Simplification and 
Fairness Act of 1996 (``RSFA'') requires ONRR to evaluate any person, 
ordered by the Secretary or a delegated State to pay any obligation 
(other than an assessment) subject to RSFA, to determine whether that 
person is entitled to a stay of the order without bond or other surety 
instrument, pending an administrative or judicial proceeding, based on 
the financial solvency of that person.
    Regulations under 30 CFR part 1243 and proposed regulations under 
25 CFR part 226, subpart O, govern the suspension of orders or 
decisions pending administrative appeal for Federal and Indian leases. 
For Federal

[[Page 3432]]

leases, these regulations allow an appellant to submit information 
demonstrating financial solvency in lieu of providing a surety. For 
appellants who are not financially solvent or for appeals involving 
Indian leases, ONRR requires appellants to post a surety instrument to 
secure the financial interest of the public and Indian lessors during 
the entire administrative or judicial appeal process.
    BIA has published a proposed rule in the Federal Register on 
January 13, 2023 (88 FR 2430) that would require lessees of the Osage 
Mineral Estate to submit the forms authorized by this ICR to ONRR. 
Accordingly, this ICR revision adds information collections specific to 
posting an ONRR-specified surety instrument under 30 CFR part 1243 
subpart B within the time period that ONRR prescribes to secure the 
financial interest of the Osage Mineral Estate.
    This ICR remains unchanged in its application and effect as to all 
leases previously subject to the information collections described 
below, which includes all Federal leases onshore and offshore and all 
Indian leases held in trust by the United States, except for the Osage 
Mineral Estate.
    If ONRR determines that a lessee did not properly report, pay, or 
both, 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 and 
proposed regulations under 25 CFR part 226, subpart O, govern the 
submission of appropriate surety instruments to suspend compliance with 
an order or decision, 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 as follows:
    (1) 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, the appellant may alternatively 
demonstrate financial solvency. If the Office of Hearings and Appeals 
grants a recipient of a notice of noncompliance or civil penalty 
notice's request to stay the accrual of civil penalties under 30 CFR 
1241.55(b)(2) and 1241.63(b)(2), recipient must post a bond or other 
surety. For Federal oil and gas leases, the appellant may alternatively 
demonstrate financial solvency.
    ONRR accepts the following surety types:
    (i) Form ONRR-4435, Administrative Appeal Bond;
    (ii) Form ONRR-4436, Letter of Credit;
    (iii) Form ONRR-4437, Assignment of Certificate of Deposit;
    (iv) Self-bonding (Federal leases only); and
    (v) 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 
resolution. 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 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.
    (2) Forms and Other Surety Types:
    A. 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 and proposed regulations at 25 CFR 226.179, 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.
    B. 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 and proposed regulations at 25 CFR 
226.179 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 resolution, 
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.
    C. 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 and proposed regulations at 
25 CFR 226.179 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.
    D. Self-Bonding (Federal leases only, not applicable to Indian or 
the Osage Mineral Estate leases): 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 the satisfaction of ONRR, 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 appellants to maintain a 
surety related to an appeal, ONRR requires appellants to submit a 
consolidated balance sheet, subject to annual audit. In some cases, 
ONRR also requires copies of the most

[[Page 3433]]

recent tax returns (up to three years) filed by the appellant.
    In addition, an appellant must annually submit financial 
statements, subject to 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 will select 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.
    E. 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 Collections: Suspensions Pending Appeal and Bonding.
    OMB Control Number: 1012-0006.
    Form Numbers: ONRR-4435, ONRR-4436, and ONRR-4437.
    Type of Review: Revision to a currently approved collection.
    Respondents/Affected Public: Businesses.
    Total Estimated Number of Annual Respondents: 107 appellants.
    Total Estimated Number of Annual Responses: 107.
    Estimated Completion Time per Response: The time per response is 
120 mins. The average completion time is calculated by first 
multiplying the estimated annual burden hours (214 burden hours) by 60 
to obtain the total annual burden minutes. Then the total annual burden 
minutes (12,840) is divided by the estimated annual responses (107).
    Total Estimated Number of Annual Burden Hours: 214 hours.
    Respondent's Obligation: Mandatory.
    Frequency of Collection: Annually and on occasion.
    Total Estimated Annual Non-Hour Burden Cost: ONRR identified no 
``non-hour cost'' burden associated with this collection of 
information.
    Estimated Annual Reporting and Recordkeeping ``Non-Hour'' Cost 
Burden: 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 PRA (44 U.S.C. 3501, et seq.).

Howard Cantor,
Acting Director, Office of Natural Resources Revenue.
[FR Doc. 2023-01009 Filed 1-18-23; 8:45 am]
BILLING CODE 4335-30-P