0136 60-Day Federal Register Notice

Federal Register / Vol. 73, No. 159 / Friday, August 15, 2008 / Notices
right-of-way, WYW–38612, issued to Big
Horn County for road purposes; and
right-of-way, WYW–128844, issued to
Big Horn County for road purposes; and
right-of-way, WYW–165789, issued to
PacifiCorp for a powerline; a right-ofway, WYW–044411, issued to
PacifiCorp for a powerline; a right-ofway, WYW–138721,issued to TCT West
for a buried cable; a right-of-way,
WYW–112026, issued to WAPA for a
powerline; a right-of-way, WYW–94163,
issued to PacifiCorp for a powerline;
and a right-of-way, WYW–0313050,
issued to Qwest for a telephone line.
Specific covenants required by the
Federal Aviation Administration will
also be included in the conveyance and
are available by contacting the office
listed below.
The conveyance is consistent with the
Cody Resource Management Plan. The
land is not required for any other
Federal purpose.
Upon publication of this notice in the
Federal Register, the above described
land will be segregated from all forms of
appropriation under the public land
laws, including the general mining laws,
except applications for airport purposes
and leasing under the mineral leasing
laws.
For a period of 45 days from the date
of publication of this notice in the
Federal Register, interested parties may
submit comments to the BLM, Branch of
Fluid Mineral Operations, Lands, &
Appraisal, (Attn: Janelle Wrigley),
Wyoming State Office, P.O. Box 1828,
Cheyenne, Wyoming 82003. Only
written comments submitted by postal
service or overnight mail to the
Wyoming State Office will be
considered properly filed. Electronic
mail, facsimile or telephone comments
will not be considered properly filed.
Any adverse comments will be
evaluated by the State Director, who
may sustain, vacate, or modify this
realty action. In the absence of any
objection, this proposed realty action
will become final.
Dated: July 25, 2008.
Tamara J. Gertsch,
Realty Officer.
[FR Doc. E8–18901 Filed 8–14–08; 8:45 am]

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BILLING CODE 4310–22–P

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DEPARTMENT OF THE INTERIOR
Minerals Management Service
[Docket No. MMS–2008–MRM–0031]

Agency Information Collection
Activities: Proposed Collection,
Comment Request
Minerals Management Service
(MMS), Interior.
ACTION: Notice of an extension of a
currently approved information
collection (OMB Control Number 1010–
0136).
AGENCY:

SUMMARY: To comply with the
Paperwork Reduction Act of 1995
(PRA), we are inviting comments on a
collection of information that we will
submit to the Office of Management and
Budget (OMB) for review and approval.
This information collection request
(ICR) pertains to valuation of oil and gas
produced from Federal onshore and
offshore leases. We changed the title of
this ICR to meet OMB requirements and
to reflect the consolidation of two ICRs
relating to Federal oil and gas valuation.
The new title of this ICR is ‘‘30 CFR
Parts 202, 204, and 206, Federal Oil and
Gas Valuation.’’ In this extension, we
are consolidating the following ICRs,
which allows programwide review of
Federal oil and gas leases:
• 1010–0136, previously titled ‘‘30
CFR Part 202—Royalties, Subpart C—
Federal and Indian Oil and Subpart D—
Federal Gas; and Part 206—Product
Valuation, Subpart C—Federal Oil and
Subpart D—Federal Gas;’’ and
• 1010–0155, previously titled ‘‘30
CFR Part 204—Alternatives for Marginal
Properties, Subpart C—Accounting and
Auditing Relief.’’
DATES: Submit written comments on or
before October 14, 2008.
ADDRESSES: You may submit comments
by the following methods:
• Electronically go to http://
www.regulations.gov. In the ‘‘Comment
or Submission’’ column, enter ‘‘MMS–
2008–MRM–0031’’ to view supporting
and related materials for this ICR. Click
on ‘‘Send a comment or submission’’
link to submit public comments.
Information on using Regulations.gov,
including instructions for accessing
documents, submitting comments, and
viewing the docket after the close of the
comment period, is available through
the site’s ‘‘User Tips’’ link. All
comments submitted will be posted to
the docket.
• Mail comments to Hyla Hurst,
Regulatory Specialist, Minerals
Management Service, Minerals Revenue
Management, P.O. Box 25165, MS

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302B2, Denver, Colorado 80225. Please
reference ICR 1010–0136 in your
comments.
• Hand-carry comments or use an
overnight courier service. Our courier
address is Building 85, Room A–614,
Denver Federal Center, West 6th Ave.
and Kipling Blvd., Denver, Colorado
80225. Please reference ICR 1010–0136
in your comments.
FOR FURTHER INFORMATION CONTACT: Hyla
Hurst, telephone (303) 231–3495, or email [email protected]. You may also
contact Hyla Hurst to obtain copies, at
no cost, of (1) the ICR, (2) any associated
forms, and (3) the regulations that
require the subject collection of
information.
SUPPLEMENTARY INFORMATION:

Title: 30 CFR Parts 202, 204, and 206,
Federal Oil and Gas Valuation.
OMB Control Number: 1010–0136.
Bureau Form Number: Form MMS–
4393.
Abstract: The Secretary of the U.S.
Department of the Interior is responsible
for mineral resource development on
Federal and Indian lands and the Outer
Continental Shelf (OCS). Under the
Mineral Leasing Act (30 U.S.C. 1923),
the Indian Mineral Development Act of
1982 (25 U.S.C. 2103), and the Outer
Continental Shelf Lands Act (43 U.S.C.
1353), the Secretary is responsible for
managing the production of minerals
from Federal and Indian lands and the
OCS, collecting royalties and other
mineral revenues from lessees who
produce minerals, and distributing the
funds collected in accordance with
applicable laws. The MMS performs the
mineral revenue management functions
for the Secretary. Applicable public
laws pertaining to mineral leases on
Federal and Indian lands are located at
http://www.mrm.mms.gov/Laws_R_D/
PublicLawsAMR.htm.
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 is required to 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 of
such minerals.
We use the information collected in
this ICR to ensure that royalty is
accurately valued and appropriately
paid on oil and gas produced from

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Federal Register / Vol. 73, No. 159 / Friday, August 15, 2008 / Notices

Federal onshore and offshore leases.
Please refer to the chart for all reporting
requirements and associated burden
hours. All data submitted is subject to
subsequent audit and adjustment.
Valuation Regulations
The valuation regulations at 30 CFR
part 206, subparts C and D, require
companies to collect and/or submit
information used to value their Federal
oil and gas, including transportation
and processing allowance limit
information. This is accomplished on
Form MMS–2014, Report of Sales and
Royalty Remittance (OMB Control
Number 1010–0140, expires November
30, 2009). The information requested is
the minimum necessary to carry out our
mission and places the least possible
burden on respondents. If the
information is not collected, a loss of
royalties may result for both Federal and
state governments.
Transportation and Processing
Regulatory Allowance Limits
The reasonable, actual costs of
transportation and processing may be
deducted from Federal royalties.
Regulatory Allowance Limit for
Transportation
Under certain circumstances, lessees
are authorized to deduct from royalty
payments the reasonable, actual costs of
transporting the royalty portion of
produced oil and gas from the lease to
a processing or sales point not in the
immediate lease area. For oil and gas,
regulations establish the allowable limit
on transportation allowance deductions
at 50 percent of the value of the oil or
gas at the point of sale.

Regulatory Allowance Limit for
Processing
When gas is processed for the
recovery of gas plant products, lessees
may claim a processing allowance.
Regulations establish the allowable limit
on processing allowance deductions at
662⁄3 percent of the value of each gas
plant product.

A state may decide in advance if it
will allow either or both relief options
for each particular year. After consulting
with the state concerned, we will
approve, deny, or modify requests in
writing. Under the regulations, both
MMS and the state concerned must
approve any accounting and auditing
relief granted for a marginal property.

Request to Exceed Regulatory
Allowance Limitation, Form MMS–4393
Lessees may request to exceed
regulatory limitations. Upon proper
application from the lessee, we may
approve an oil or gas transportation
allowance in excess of 50 percent or a
gas processing allowance in excess of
662⁄3 percent on Federal leases. To
request permission to exceed a
regulatory allowance limit, lessees must
submit a letter to MMS explaining why
a higher allowance limit is necessary
and provide supporting documentation,
including a completed Form MMS–
4393. This form provides us with the
data necessary to identify the properties
and time periods for which the lessee is
requesting to exceed the regulatory
limits.

OMB Approval

Accounting and Auditing Relief for
Marginal Properties
We amended our regulations in 2004
to provide guidance to lessees and
designees seeking accounting and
auditing relief for Federal marginal
properties. There are two types of relief:
(1) cumulative royalty reports and
payments relief; and (2) other relief.
Under 30 CFR 204.202, MMS requires
notification from lessees who request to
take the cumulative royalty reporting
and payment relief option. Under 30
CFR 204.203, MMS requires a relief
request from lessees who want to obtain
any other type of accounting and
auditing relief.

We are requesting OMB approval to
continue to collect this information. Not
collecting this information would limit
the Secretary’s ability to discharge his/
her duties and may also result in loss of
royalty payments. Proprietary
information submitted to MMS under
this collection is protected, and no
items of a sensitive nature are included
in this information collection.
For information collections relating to
valuation requirements, responses are
mandatory. For the remaining
information collections in this ICR,
responses are voluntary; only those
lessees who request approval to exceed
the regulatory limits on transportation
and processing allowances or to obtain
the benefits of accounting and auditing
relief for marginal properties must
supply this information.
Frequency of Response: Annually and
on occasion.
Estimated Number and Description of
Respondents: 102 Federal lessees/
designees and 4 states.
Estimated Annual Reporting and
Recordkeeping ‘‘Hour’’ Burden: 21,055
hours.
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
Citation 30 CFR 202 and 206

Reporting and recordkeeping requirement

Hour burden

Average
number of
annual
responses

Annual
burden
hours

PART 202S—ROYALTIES
Subpart C—Federal and Indian Oil
§ 202.101

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202.101 ...................................

Standards for reporting and paying royalties.

202.101 Oil volumes are to be reported in barrels of clean
oil of 42 standard U.S. gallons (231 cubic inches each) at
60 °F, * * *.

Burden covered under OMB Control Number
1010–0140 (expires 11/30/2009).

Subpart D—Federal Gas
§ 202.152
202.152(a) and (b) ..................

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Standards for reporting and paying royalties on gas.

202.152(a)(1) If you are responsible for reporting production or royalties you must:

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Federal Register / Vol. 73, No. 159 / Friday, August 15, 2008 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Citation 30 CFR 202 and 206

Reporting and recordkeeping requirement

Hour burden

Average
number of
annual
responses

Annual
burden
hours

(i) Report gas volumes and British thermal unit (Btu) heating
values, if applicable, under the same degree of water
saturation;
(ii) Report gas volumes in units of 1,000 cubic feet (mcf);
and
(iii) Report gas volumes and Btu heating value at a standard pressure base of 14.73 pounds per square inch absolute (psia) and a standard temperature base of 60 °F.
* * *
(b) Residue gas and gas plant product volumes shall be reported as specified in this paragraph. * * *
PART 204—ALTERNATIVES FOR MARGINAL PROPERTIES
Subpart C—Accounting and Auditing Relief
§ 204.202

What is the cumulative royalty reports and payments relief option?

204.202(b)(1) ..........................

204.202(b) To use the cumulative royalty reports and payments relief option, you must do all of the following:
(1) Notify MMS in writing by January 31 of the calendar
year for which you begin taking your relief. * * *

204.202(b)(2) ..........................

204.202(b)(2) Submit your royalty report and payment
* * *by the end of February of the year following the calendar year for which you reported annually. * * * If you
have an estimated payment on file, you must submit your
royalty report and payment by the end of March of the
year following the calendar year for which you reported
annually;

40

1

40

Burden covered under OMB Control Number
1010–0140.

(3) Use the sales month prior to the month that you submit
your annual report and payment * * * for the entire previous calendar year’s production for which you are paying
annually. * * *
204.202(b)(4), (b)(5), (c),
(d)(1), (d)(2), (e)(1), and
(e)(2).

204.202(b) To use the cumulative royalty reports and payments relief option, you must * * *

Burden covered under OMB Control Number
1010–0140.

(4) Report one line of cumulative royalty information on
Form MMS–2014 for the calendar year * * * and
(5) Report allowances on Form MMS–2014 on the same
annual basis as the royalties for your marginal property
production.
(c) If you do not pay your royalty by the date due in paragraph (b) of this section, you will owe late payment interest * * * from the date your payment was due under this
section until the date MMS receives it. * * *
(e) If you dispose of your ownership interest in a marginal
property for which you have taken relief * * * you must:
(1) Report and pay royalties for the portion of the calendar
year for which you had an ownership interest; and
(2) Make the report and payment by the end of the month
after you dispose of the ownership interest in the marginal property. If you do not report and pay timely, you
will owe interest * * * from the date the payment was
due. * * *
§ 204.203

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204.203(b) ...............................

204.203(b) You must request approval from MMS * * *
before taking relief under this option.
§ 204.205

204.205(a) and (b) ..................

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What is the other relief option?

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How do I obtain accounting and auditing relief?

204.205(a) To take cumulative reports and payments relief
under § 204.202, you must notify MMS in writing by January 31 of the calendar year for which you begin taking
your relief. * * *

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Federal Register / Vol. 73, No. 159 / Friday, August 15, 2008 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued

Citation 30 CFR 202 and 206

Reporting and recordkeeping requirement

Average
number of
annual
responses

Hour burden

Annual
burden
hours

(b) To obtain other relief under § 204.203, you must file a
written request for relief with MMS. * * *
§ 204.206
204.206(a)(3)(i) and (b)(1) ......

What will MMS do when it receives my request for other relief?

204.206 When MMS receives your request for other relief
under § 204.205(b), it will notify you in writing as follows:

Burden covered under § 204.203(b).

(a) If your request for relief is complete, MMS may either
approve, deny, or modify your request in writing after consultation with any State. * * *
(3) If MMS modifies your relief request, MMS will notify you
of the modifications.
(i) You have 60 days from your receipt of MMS’s notice to
either accept or reject any modification(s) in writing. * * *
(b) If your request for relief is not complete, MMS will notify
you in writing. * * *
(1) You must submit the missing information within 60 days
of your receipt of MMS’s notice. * * *
§ 204.208

May a State decide that it will or will not allow one or both of the relief options under this subpart?

204.208(c)(1) and (d)(1) .........

204.208(c) If a State decides * * * that it will or will not
allow one or both of the relief options * * * within 30
days * * * the State must:
(1) Notify the Associate Director for Minerals Revenue Management, MMS, in writing, of its intent to allow or not
allow one or both of the relief options. * * *
(d) If a State decides in advance * * * that it will not allow
one or both of the relief options * * * the State must:
(1) Notify the Associate Director for Minerals Revenue Management, MMS, in writing, of its intent to allow one or
both of the relief options. * * *

§ 204.209
204.209(b) ...............................

4

160

1

6

What if a property ceases to qualify for relief obtained under this subpart?

204.209(b) If a property is no longer eligible for relief * * *
the relief for the property terminates as of December 31
of that calendar year. You must notify MMS in writing by
December 31 that the relief for the property has terminated. * * *
§ 204.210

204.210(c) and (d) ..................

40

6

What if a property is approved as part of a nonqualifying agreement?

204.210(c) * * * the volumes on which you report and pay
royalty * * * must be amended to reflect all volumes produced on or allocated to your lease under the nonqualifying agreement as modified by BLM. * * * Report and
pay royalties for your production using the procedures in
§ 204.202(b).

Burden covered under OMB Control Number
1010–0140.

(d) If you owe additional royalties based on the retroactive
agreement approval and do not pay your royalty by the
date due in § 204.202(b), you will owe late payment interest determined under 30 CFR 218.54 from the date your
payment was due under § 204.202(b)(2) until the date
MMS receives it.
§ 204.214(b)

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204.214(b)(1) and (b)(2) .........

Is minimum royalty due on a property for which I took relief?

204.214(b) If you pay minimum royalty on production from
a marginal property during a calendar year for which you
are taking cumulative royalty reports and payment relief,
and:

Burden covered under OMB Control Number
1010–0140.

(1) The annual payment you owe under this subpart is
greater than the minimum royalty you paid, you must pay
the difference between the minimum royalty you paid and
your annual payment due under this subpart; or

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Federal Register / Vol. 73, No. 159 / Friday, August 15, 2008 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Citation 30 CFR 202 and 206

Reporting and recordkeeping requirement

Average
number of
annual
responses

Hour burden

Annual
burden
hours

(2) The annual payment you owe under this subpart is less
than the minimum royalty you paid, you are not entitled to
a credit because you must pay at least the minimum royalty amount on your lease each year.
PART 206—PRODUCT VALUATION
Subpart C—Federal Oil
§ 206.102

How do I calculate royalty value for oil that I or my affiliate sell(s) under an arm’s-length contract?

206.102(e)(1) ..........................

206.102(e) If you value oil under paragraph (a) of this section: (1) MMS may require you to certify that your or your
affiliate’s arm’s-length contract provisions include all of
the consideration the buyer must pay, either directly or indirectly, for the oil.
§ 206.103

206.103(a) ...............................

206.103(a)(4) ..........................

206.103(b)(1) ..........................

206.103(b)(1)(ii) ......................

206.103(b)(4) ..........................

206.103(c)(1) ..........................

206.103(e)(1) and (2) .............

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How do I value oil that is not sold under an arm’s-length contract?

206.103 This section explains how to value oil that you
may not value under § 206.102 or that elect under
§ 206.102(d) to value under this section. First determine
whether paragraph (a), (b), or (c) of this section applies to
production from your lease, or whether you may apply
paragraph (d) or (e) with MMS approval.
(a) Production from leases in California or Alaska. Value is
the average of the daily mean ANS spot prices published
in any MMS-approved publication during the trading
month most concurrent with the production month. * * *
(1) To calculate the daily mean spot price. * * *
(2) Use only the days. * * *
(3) You must adjust the value. * * *
206.103(a)(4) After you select an MMS-approved publication, you may not select a different publication more often
than once every 2 years, * * *.
206.103(b) Production from leases in the Rocky Mountain
Region. * * * (1) If you have an MMS-approved tendering
program, you must value oil. * * *
206.103(b)(1)(ii) If you do not have an MMS-approved tendering program, you may elect to value your oil under either paragraph (b)(2) or (b)(3) of this section. * * *
206.103(b)(4) If you demonstrate to MMS’s satisfaction
that paragraphs (b)(1) through (b)(3) of this section result
in an unreasonable value for your production as a result
of circumstances regarding that production, the MMS Director may establish an alternative valuation method.
206.103(c) Production from leases not located in California, Alaska or the Rocky Mountain Region. (1) Value is
the NYMEX price, plus the roll, adjusted for applicable location and quality differentials and transportation costs
under § 206.112.
206.103(e) Production delivered to your refinery and the
NYMEX price or ANS spot price is an unreasonable
value.
(1) * * * you may apply to the MMS Director to establish a
value representing the market at the refinery if: * * *.
(2) You must provide adequate documentation and evidence demonstrating the market value at the refinery.
* * *

§ 206.105
206.105 ...................................

AUDIT PROCESS. See note.

45

5

225

8

2

16

400

2

800

400

2

800

400

2

800

50

10

500

330

2

660

What records must I keep to support my calculations of value under this subpart?

206.105 If you determine the value of your oil under this
subpart, you must retain all data relevant to the determination of royalty value. * * *

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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued

Citation 30 CFR 202 and 206

Reporting and recordkeeping requirement

§ 206.107
206.107(a) ...............................

206.109(c)(2) ..........................

§ 206.110

206.110(d) If your arm’s-length transportation contract includes more than one liquid product, and the transportation costs attributable to each product cannot be determined. * * *
(3) You may propose to MMS a cost allocation method.
* * *
206.110(e) If your 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, then you must propose an allocation procedure to MMS.

§ 206.111

2,640

1

8

330

2

660

330

1

330

8

206.110(e)(1) * * * If MMS rejects your cost allocation,
you must amend your Form MMS–2014 * * *

AUDIT PROCESS. See note.

Burden covered under OMB Control Number
1010–0140.

(2) You must submit your initial proposal, including all available data, within 3 months after first claiming the allocated deductions on Form MMS–2014.
206.110(g) If your arm’s-length sales includes a provision
reducing the contract price by a transportation factor,
* * *
(2) You must obtain MMS approval before claiming a transportation factor in excess of 50 percent of the base price
of the product.

330

1

330

How do I determine a transportation allowance if I do not have an arm’s-length transportation contract or arm’s-length tariff?

206.111(g) ...............................
206.111(k)(2) ..........................
206.111(l)(1) ...........................

206.111(l)(2) ...........................

206.111(l)(3) ...........................

§ 206.112

8

How do I determine a transportation allowance under an arm’s-length transportation contract?

206.110(d)(3) ..........................

206.110(g)(2) ..........................

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206.109(c) Limits on transportation allowances. (2) You
may ask MMS to approve a transportation allowance in
excess of the limitation in paragraph (c)(1) of this section.
* * * Your application for exception (using Form MMS–
4393, Request to Exceed Regulatory Allowance Limitation) must contain all relevant and supporting documentation necessary for MMS to make a determination. * * *

206.110(a) * * * You must be able to demonstrate that
you or your affiliate’s contract is at arm’s length. * * *

206.110(e)(1) and (2) .............

330

When may I take a transportation allowance in determining value?

206.110(a) ...............................

206.110(e) ...............................

Annual
burden
hours

How do I request a value determination?

206.107(a) You may request a value determination from
MMS. * * *
§ 206.109

Average
number of
annual
responses

Hour burden

206.111(g) To compute depreciation, you may elect to use
either * * * After you make an election, you may not
change methods without MMS approval. * * *
206.111(k)(2) You may propose to MMS a cost allocation
method on the basis of the values * * *
206.111(l)(1) Where you transport both gaseous and liquid
products through the same transportation system, you
must propose a cost allocation procedure to MMS.
206.111(l)(2) * * * If MMS rejects your cost allocation, you
must amend your Form MMS–2104 for the months that
you used the rejected method and pay any additional royalty and interest due.
206.111(l)(3) You must submit your initial proposal, including all available data, within 3 months after first claiming
the allocated deductions on Form MMS–2014.

330

1

330

330

1

330

330

1

330

Burden covered under OMB Control Number
1010–0140.
Burden covered under § 206.111(l)(1).

What adjustments and transportation allowances apply when I value oil production from my lease using NYMEX prices or ANS spot
prices?

206.112(a)(1)(ii) ......................

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206.112(a)(1)(ii) * * * under an exchange agreement that
is not at arm’s length, you must obtain approval from
MMS for a location and quality differential. * * *

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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued

Annual
burden
hours

Reporting and recordkeeping requirement

206.112(a)(1)(ii) ......................

206.112(a)(1)(ii) * * * If MMS prescribes a different differential, you must apply. * * * You must pay any additional royalties owed * * * plus the late payment interest
from the original royalty due date, or you may report a
credit. * * *

330

2

660

206.112(a)(3) and (4) .............

206.112(a)(3) If you transport or exchange at arm’s length
(or both transport and exchange) at least 20 percent, but
not all, of your oil produced from the lease to a market
center, determine the adjustment between the lease and
the market center for the oil that is not transported or exchanged (or both transported and exchanged) to or
through a market center as follows: * * *.
(4) If you transport or exchange (or both transport and exchange) less than 20 percent of your crude oil produced
from the lease between the lease and a market center,
you must propose to MMS an adjustment between the
lease and the market center for the portion of the oil that
you do not transport or exchange (or both transport and
exchange) to a market center. * * * If MMS prescribes a
different adjustment. * * * You must pay any additional
royalties owed * * * plus the late payment interest from
the original royalty due date, or you may report a credit.
* * *
206.112(b)(3) * * * you may propose an alternative differential to MMS. * * * If MMS prescribes a different differential * * *. You must pay any additional royalties
owed * * * plus the late payment interest from the original royalty due date, or you may report a credit. * * *
206.112(c)(2) * * * If quality bank adjustments do not incorporate or provide for adjustments for sulfur content,
you may make sulfur adjustments, based on the quality of
the representative crude oil at the market center, of 5.0
cents per one-tenth percent difference in sulfur content,
unless MMS approves a higher adjustment.

330

4

1,320

330

4

1,320

330

2

660

206.112(b)(3) ..........................

206.112(c)(2) ..........................

§ 206.114
206.114 ...................................
206.114 ...................................

§ 206.115
206.115(a) ...............................
206.115(c) ...............................

Hour burden

Average
number of
annual
responses

Citation 30 CFR 202 and 206

What are my reporting requirements under an arm’s-length transportation contract?

206.114 You or your affiliate must use a separate entry on
Form MMS–2014 to notify MMS of an allowance based
on transportation costs you or your affiliate incur.
206.114 MMS may require you or your affiliate to submit
arm’s-length transportation contracts, production agreements, operating agreements, and related documents.

Burden covered under OMB Control Number
1010–0140.
AUDIT PROCESS. See note.

What are my reporting requirements under a non-arm’s-length transportation arrangement?
206.115(a) You or your affiliate must use a separate entry
on Form MMS–2014 to notify MMS of an allowance
based on transportation costs you or your affiliate incur.
206.115(c) MMS may require you or your affiliate to submit all data used to calculate the allowance deduction.
* * *

Burden covered under OMB Control Number
1010–0140.
AUDIT PROCESS. See note.

Subpart D—Federal Gas
§ 206.152

mstockstill on PROD1PC66 with NOTICES

206.152(b)(1)(i) and (iii) ..........

206.152(b)(2) ..........................

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Valuation standards-unprocessed gas.

206.152(b)(1)(i) * * * The lessee shall have the burden of
demonstrating that its contract is arm’s-length. * * *

AUDIT PROCESS. See note.

(iii) * * * When MMS determines that the value may be unreasonable, MMS will notify the lessee and give the lessee an opportunity to provide written information justifying
the lessee’s value.
206.152(b)(2) * * * The lessee must request a value determination in accordance with paragraph (g) of this section for gas sold pursuant to a warranty contract; * * *.

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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued

Citation 30 CFR 202 and 206

Reporting and recordkeeping requirement

206.152(b)(3) ..........................

206.152(b)(3) MMS may require a lessee to certify that its
arm’s-length contract provisions include all of the consideration to be paid by the buyer, either directly or indirectly, for the gas.
206.152(e)(1) Where the value is determined pursuant to
paragraph (c) of this section, the lessee shall retain all
data relevant to the determination of royalty value. * * *
206.152(e)(2) Any Federal lessee will make available upon
request to the authorized MMS or State representatives,
to the Office of the Inspector General of the Department
of the Interior, or other person authorized to receive such
information, arm’s-length sales and volume data for likequality production sold, purchased or otherwise obtained
by the lessee from the field or area or from nearby fields
or areas.

206.152(e)(1) ..........................

206.152(e)(2) ..........................

206.152(e)(3) ..........................

206.152(g) ...............................

206.153(b)(2) * * * The lessee must request a value determination in accordance with paragraph (g) of this section for gas sold pursuant to a warranty contract; * * *.

206.153(b)(3) ..........................

206.153(b)(3) MMS may require a lessee to certify that its
arm’s-length contract provisions include all of the consideration to be paid by the buyer, either directly or indirectly, for the residue gas or gas plant product.
206.153(e)(1) Where the value is determined pursuant to
paragraph (c) of this section, the lessee shall retain all
data relevant to the determination of royalty value. * * *
206.153(e)(2) Any Federal lessee will make available upon
request to the authorized MMS or State representatives,
to the Office of the Inspector General of the Department
of the Interior, or other persons authorized to receive
such information, arm’s-length sales and volume data for
like-quality residue gas and gas plant products sold, purchased or otherwise obtained by the lessee from the
same processing plant or from nearby processing plants.

206.153(e)(3) ..........................

206.153(g) ...............................

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AUDIT PROCESS. See note.

330

2

660

330

6

1,980

1

330

AUDIT PROCESS. See note.

330

AUDIT PROCESS. See note.

Burden covered under OMB Control Number
1010–0140.
AUDIT PROCESS. See note.

206.153(e)(2) A lessee shall notify MMS if it has determined any value pursuant to paragraph (c)(2) or (c)(3) of
this section. * * *
206.153(g) The lessee may request a value determination
from MMS. * * * The lessee shall submit all available
data relevant to its proposal. * * *
§ 206.154

206.154(c)(4) ..........................

Burden covered under OMB Control Number
1010–0140.

206.153(b)(1)(i) * * * The lessee shall have the burden of
demonstrating that its contract is arm’s-length. * * *

206.153(b)(2) ..........................

206.153(e)(2) ..........................

Annual
burden
hours

Valuation standards—processed gas.

(iii) * * * When MMS determines that the value may be unreasonable, MMS will notify the lessee and give the lessee an opportunity to provide written information justifying
the lessee’s value.

206.153(e)(1) ..........................

Average
number of
annual
responses

AUDIT PROCESS. See note.

206.152(e)(3) A lessee shall notify MMS if it has determined value pursuant to paragraph (c)(2) or (c)(3) of this
section. * * *
206.152(g) The lessee may request a value determination
from MMS. * * * The lessee shall submit all available
data relevant to its proposal. * * *
§ 206.153

206.153(b)(1)(i) and (iii) ..........

Hour burden

2

660

330

4

1,320

1

330

Determination of quantities and qualities for computing royalties.

206.154(c)(4) * * * A lessee may request MMS approval
of other methods for determining the quantity of residue
gas and gas plant products allocable to each lease. * * *

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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Citation 30 CFR 202 and 206

Reporting and recordkeeping requirement

§ 206.156
206.156(c)(3) ..........................

206.157(a)(1)(i) .......................

206.157(a)(1)(i) .......................

206.157(a)(1)(iii) .....................

206.157(a)(2)(ii) ......................

206.157(a)(3) ..........................

206.157(a)(5) ..........................

206.157(b)(2)(iv) After a lessee has elected to use either
method for a transportation system, the lessee may not
later elect to change to the other alternative without approval of the MMS.
(A) After an election is made, the lessee may not change
methods without MMS approval. * * *
206.157(b)(3)(i) * * * Except as provided in this paragraph, the lessee may not take an allowance for transporting a product which is not royalty bearing without
MMS approval.
206.157(b)(3)(ii) * * * the lessee may propose to the
MMS a cost allocation method on the basis of the values
of the products transported. * * *
206.157(b)(4) Where both gaseous and liquid products are
transported through the same transportation system, the
lessee shall propose a cost allocation procedure to MMS.
* * * The lessee shall submit all relevant data to support
its proposal. * * *
206.157(b)(5) You may apply for an exception from the requirement to compute actual costs under paragraphs
(b)(1) through (b)(4) of this section.

206.157(b)(5) ..........................

206.157(c)(1)(i) .......................

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206.157(c) Reporting Requirements. (1) Arm’s-length contracts. (i) You must use a separate entry on Form MMS–
2014 to notify MMS of a transportation allowance.

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24

AUDIT PROCESS. See note.

Burden covered under OMB Control Number
1010–0140.
AUDIT PROCESS. See note.

206.157(a)(2)(ii) * * * the lessee may propose to MMS a
cost allocation method on the basis of the values of the
products transported. * * *
206.157(a)(3) If an arm’s-length transportation contract includes both gaseous and liquid products and the transportation costs attributable to each cannot be determined
from the contract, the lessee shall propose an allocation
procedure to MMS. * * * The lessee shall submit all relevant data to support its proposal. * * *
206.157(a)(5) * * * The transportation factor may not exceed 50 percent of the base price of the product without
MMS approval.

206.157(b)(2)(iv) and
(b)(2)(iv)(A).

206.157(b)(4) ..........................

mstockstill on PROD1PC66 with NOTICES

206.157(a) Arm’s-length transportation contracts. (1)(i)
* * * The lessee shall have the burden of demonstrating
that its contract is arm’s-length. * * *
206.157(a)(1)(i) * * * The lessee must claim a transportation allowance by reporting it on a separate line entry
on the Form MMS–2014.
206.157(a)(1)(iii) * * * When MMS determines that the
value of the transportation may be unreasonable, MMS
will notify the lessee and give the lessee an opportunity to
provide written information justifying the lessee’s transportation costs.

206.157(b) Non-arm’s-length or no contract. (1) The lessee must claim a transportation allowance by reporting it
on a separate line entry on the Form MMS–2014. * * *

206.157(b)(3)(ii) ......................

8

Determination of transportation allowances.

206.157(b)(1) ..........................

206.157(b)(3)(i) .......................

Annual
burden
hours

Transportation allowances-general.

206.156(c)(3) Upon request of a lessee, MMS may approve a transportation allowance deduction in excess of
the limitation prescribed by paragraphs (c)(1) and (c)(2) of
this section. * * * An application for exception (using
Form MMS–4393, Request to Exceed Regulatory Allowance Limitation) shall contain all relevant and supporting
documentation necessary for MMS to make a determination. * * *
§ 206.157

Average
number of
annual
responses

Hour burden

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330

1

330

330

1

330

100

1

100

Burden covered under OMB Control Number
1010–0140.
100

1

100

100

1

100

100

1

100

100

1

100

100

1

100

Burden covered under OMB Control Number
1010–0140.

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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued

Citation 30 CFR 202 and 206

Reporting and recordkeeping requirement

206.157(c)(1)(ii) ......................

206.157(c)(1)(ii) The MMS may require you to submit
arm’s-length transportation contracts, production agreements, operating agreements, and related documents.
* * *
206.157(c)(2) Non-arm’s-length or no contract. (i) You
must use a separate entry on Form MMS–2014 to notify
MMS of a transportation allowance.
206.157(c)(2)(iii) The MMS may require you to submit all
data used to calculate the allowance deduction. * * *
206.157(e) Adjustments. (2) For lessees transporting production from onshore Federal leases, the lessee must
submit a corrected Form MMS–2014 to reflect actual
costs, together with any payment, in accordance with instructions provided by MMS.

206.157(c)(2)(i) .......................

206.157(c)(2)(iii) ......................
206.157(e)(2), (e)(3), and
(f)(1).

Average
number of
annual
responses

Hour burden

Annual
burden
hours

AUDIT PROCESS. See note.

Burden covered under OMB Control Number
1010–0140.
AUDIT PROCESS. See note.
Burden covered under OMB Control Number
1010–0140.

(3) For lessees transporting gas production from leases on
the OCS, if the lessee’s estimated transportation allowance exceeds the allowance based on actual costs, the
lessee must submit a corrected Form MMS–2014 to reflect actual costs, together with its payments, in accordance with instructions provided by MMS. * * *
(f) Allowable costs in determining transportation allowances.
* * * (1) Firm demand charges paid to pipelines * * * if
you receive a payment or credit from the pipeline for penalty refunds, rate case refunds, or other reasons, you
must reduce the firm demand charge claimed on the
Form MMS–2014 by the amount of that payment. You
must modify Form MMS–2014 by the amount received or
credited for the affected reporting period and pay any resulting royalty and late payment interest due;
§ 206.158
206.158(c)(3) ..........................

206.158(d)(2)(i) .......................

206.158(d)(2)(ii) ......................

206.158(c)(3) Upon request of a lessee, MMS may approve a processing allowance in excess of the limitation
prescribed by paragraph (c)(2) of this section. * * * An
application for exception (using Form MMS–4393, Request to Exceed Regulatory Allowance Limitation) shall
contain all relevant and supporting documentation for
MMS to make a determination. * * *
206.158(d)(2)(i) If the lessee incurs extraordinary costs for
processing gas production from a gas production operation, it may apply to MMS for an allowance for those
costs. * * *
206.158(d)(2)(ii) * * * to retain the authority to deduct the
allowance the lessee must report the deduction to MMS
in a form and manner prescribed by MMS.
§ 206.159

206.159(a)(1)(i) .......................

Processing allowances—general.
8

12

96

40

2

80

Burden covered under OMB Control Number
1010–0140.

Determination of processing allowances.

206.159(a) Arm’s-length processing contracts.

AUDIT PROCESS. See note.

(1)(i) * * * The lessee shall have the burden of demonstrating that its contract is arm’s-length. * * *
206.159(a)(1)(i) .......................

mstockstill on PROD1PC66 with NOTICES

206.159(a)(1)(iii) .....................

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206.159(a)(1)(i) * * * The lessee must claim a processing
allowance by reporting it on a separate line entry on the
Form MMS–2014.
206.159(a)(1)(iii) * * * When MMS determines that the
value of the processing may be unreasonable, MMS will
notify the lessee and give the lessee an opportunity to
provide written information justifying the lessee’s processing costs.

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AUDIT PROCESS. See note.

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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Citation 30 CFR 202 and 206

Reporting and recordkeeping requirement

206.159(a)(3) ..........................

206.159(a)(3) If an 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, the lessee shall propose an allocation procedure to MMS. * * * The lessee shall submit
all relevant data to support its proposal. * * *

206.159(b)(1) ..........................

206.159(b) Non-arm’s-length or no contract. (1) * * * The
lessee must claim a processing allowance by reflecting it
as a separate line entry on the Form MMS–2014. * * *

206.159(b)(2)(iv) and
(b)(2)(iv)(A).

206.159(b)(2)(iv) * * * When a lessee has elected to use
either method for a processing plant, the lessee may not
later elect to change to the alternative without approval of
the MMS.
(A) * * * After an election is made, the lessee may not
change methods without MMS approval. * * *
206.159(b)(4) A lessee may apply to MMS for an exception from the requirements that it compute actual costs in
accordance with paragraphs (b)(1) through (b)(3) of this
section. * * *

206.159(b)(4) ..........................

Hour burden

Average
number of
annual
responses

330

Annual
burden
hours
1

330

Burden covered under OMB Control Number
1010–0140.
100

1

100

100

1

100

206.159(c)(1)(i) .......................

206.159(c) Reporting requirements—(1) Arm’s-length contracts. (i) The lessee must notify MMS of an allowance
based on incurred costs by using a separate line entry on
the Form MMS–2014.

Burden covered under OMB Control Number
1010–0140.

206.159(c)(1)(ii) ......................

206.159(c)(1)(ii) The MMS may require that a lessee submit arm’s-length processing contracts and related documents. * * *
206.159(c)(2) Non-arm’s-length or no contract.

AUDIT PROCESS. See note.

206.159(c)(2)(i) .......................

Burden covered under OMB Control Number
1010–0140.

(i) The lessee must notify MMS of an allowance based on
incurred costs by using a separate line entry on the Form
MMS–2014.
206.159(c)(2)(iii) ......................
206.159(e)(2) and (3) .............

206.159(c)(2)(iii) Upon request by MMS, the lessee shall
submit all data used to prepare the allowance deduction.
* * *
206.159(e) Adjustments.

AUDIT PROCESS. See note.
Burden covered under OMB Control Number
1010–0140.

(2) For lessees processing production from onshore Federal
leases, the lessee must submit a corrected Form MMS–
2014 to reflect actual costs, together with any payment, in
accordance with instructions provided by MMS.
(3) For lessees processing gas production from leases on
the OCS, if the lessee’s estimated processing allowance
exceeds the allowance based on actual costs, the lessee
must submit a corrected Form MMS–2014 to reflect actual costs, together with its payment, in accordance with
instructions provided by MMS. * * *

mstockstill on PROD1PC66 with NOTICES

Total .................................

............................................................................................

Note: AUDIT PROCESS—The Office of
Regulatory Affairs determined that the audit
process is exempt from the Paperwork
Reduction Act of 1995 because MMS staff
asks non-standard questions to resolve
exceptions.

Estimated Annual Reporting and
Recordkeeping ‘‘Non-hour Cost’’
Burden: We have identified no ‘‘nonhour cost’’ burden associated with the
collection of information.
VerDate Aug<31>2005

20:07 Aug 14, 2008

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Public Disclosure Statement: The PRA
(44 U.S.C. 3501 et seq.) provides that 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.
Comments: Before submitting an ICR
to OMB, PRA Section 3506(c)(2)(A)
requires each agency ‘‘* * * to provide
notice * * * and otherwise consult
with members of the public and affected

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106

21,055

agencies concerning each proposed
collection of information * * *.’’
Agencies must specifically solicit
comments to: (a) Evaluate whether the
proposed collection of information is
necessary for the agency to perform its
duties, including whether the
information is useful; (b) evaluate the
accuracy of the agency’s estimate of the
burden of the proposed collection of
information; (c) enhance the quality,
usefulness, and clarity of the

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information to be collected; and (d)
minimize the burden on the
respondents, including the use of
automated collection techniques or
other forms of information technology.
The PRA also requires agencies to
estimate the total annual reporting
‘‘non-hour cost’’ burden to respondents
or recordkeepers resulting from the
collection of information. If you have
costs to generate, maintain, and disclose
this information, you should comment
and provide your total capital and
startup cost components or annual
operation, maintenance, and purchase
of service components. You should
describe the methods you use to
estimate major cost factors, including
system and technology acquisition,
expected useful life of capital
equipment, discount rate(s), and the
period over which you incur costs.
Capital and startup costs include,
among other items, computers and
software you purchase to prepare for
collecting information; monitoring,
sampling, and testing equipment; and
record storage facilities. Generally, your
estimates should not include equipment
or services purchased: (i) Before October
1, 1995; (ii) to comply with
requirements not associated with the
information collection; (iii) for reasons
other than to provide information or
keep records for the Government; or (iv)
as part of customary and usual business
or private practices.
We will summarize written responses
to this notice and address them in our
ICR submission for OMB approval,
including appropriate adjustments to
the estimated burden. We will provide
a copy of the ICR to you without charge
upon request. The ICR also will be
posted at http://www.mrm.mms.gov/
Laws_R_D/FRNotices/FRInfColl.htm.
Public Comment Policy: We will post
all comments in response to this notice
at http://www.mrm.mms.gov/Laws_R_D/
FRNotices/FRInfColl.htm. We also will
make copies of the comments available
for public view, including names and
addresses of respondents, during regular
business hours at our offices in
Lakewood, Colorado. Before including
your address, phone number, e-mail
address, or other personal identifying
information in your comment, be
advised that your entire comment—
including your personal identifying
information—may be made publicly
available at any time. While you can ask
us in your comment to withhold from
public view your personal identifying
information, we cannot guarantee that
we will be able to do so.
MMS Information Collection
Clearance Officer: Arlene Bajusz, (202)
208–7744.

VerDate Aug<31>2005

20:07 Aug 14, 2008

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Dated: August 11, 2008.
Gregory J. Gould,
Associate Director for Minerals Revenue
Management.
[FR Doc. E8–18963 Filed 8–14–08; 8:45 am]
BILLING CODE 4310–MR–P

DEPARTMENT OF JUSTICE
Notice of Lodging Consent Decree
Under the Clean Air Act
Pursuant to 28 CFR 50.7, notice is
hereby given that, on August 12, 2008,
a proposed Consent Decree in United
States v. Salt River Project Agricultural
Improvement and Power District
[‘‘SRP’’], Civil Action No. 2:08-cv-1479JAT (D. Ariz.), was lodged with the
United States District Court for the
District of Arizona. The Consent Decree
addresses alleged violations of the Clean
Air Act, 42 U.S.C. 7401–7671 et seq.,
and state and federal implementing
regulations, which occurred at Units 1
and 2 of the Coronado Generating
Station, a coal-fired power plant owned
and operated by SRP in St. Johns,
Arizona. The alleged violations arise
from the construction of modifications
to the power plant without obtaining
appropriate permits under the
Prevention of Significant Deterioration
provisions of the Clean Air Act, 42
U.S.C. 7475, and Title V of the Act, 42
U.S.C. 7661 et seq., and without
installing and applying best available
control technology at the plant to
control emissions of various air
pollutants.
The proposed Consent Decree would
resolve the claims alleged in the
Complaint filed in this matter in
exchange for SRP’s commitment to
perform injunctive relief including: (1)
Installation of appropriate pollution
control technology to control emissions
of nitrogen oxides (NOX), sulfur dioxide
(SO2), and particulate matter (PM)—
including flue gas desulfurization
devices to control SO2 on Units 1 and
2 at the Coronado Station and
installation of selective catalytic
reduction to control NOX on one of the
two units; (2) meet specified emission
rates or removal efficiencies for SO2,
NOX, and PM; (3) comply with a plantwide emissions cap for NOX; and (4)
perform $4 million worth of projects to
mitigate the alleged effects of its past
violations. The proposed Consent
Decree also requires SRP to pay a
$950,000 civil penalty.
The Department of Justice will receive
comments relating to the proposed
Consent Decree for period of thirty (30)
days from the date of this publication.
Comments should be addressed to the

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Assistant Attorney General,
Environment and Natural Resources
Division, and mailed either
electronically to [email protected] or in hard copy to
the United States Department of Justice,
P.O. Box 7611, Ben Franklin Station,
Washington, DC 20044–7611.
Comments should refer to United States
v. Salt River Project Agricultural
Improvement and Power District, Civil
Action No. 2:08-cv-1479-JAT (D.Ariz.)
and D.J. Ref. No. 90–5–2–1–09174.
The Consent Decree may be examined
at: (1) The offices of the United States
Attorney, Two Renaissance Square, 40
N. Central Avenue, Suite 1200, Phoenix,
AZ 85004–4408; and (2) the offices of
the U.S. Environmental Protection
Agency, Region 9, 75 Hawthorne St.,
San Francisco, CA 94105. During the
public comment period, the Consent
Decree may also be examined on the
following Web site: http://
www.usdoj.gov/enrd/Consent_
Decrees.html. A copy of the Consent
Decree may also be obtained by mail
from the Department of Justice Consent
Decree Library, P.O. Box 7611,
Washington, DC 20044–7611 or by
faxing or e-mailing a request to Tonia
Fleetwood ([email protected]),
fax no. (202) 514–0097, phone
confirmation number (202) 514–1547. In
requesting a copy from the Consent
Decree Library, please enclose a check
in the amount of $18.00 (72 pages at 25
cents per page reproduction costs)
payable to the U.S. Treasury.
Maureen M. Katz,
Assistant Chief, Environmental Enforcement
Section, Environment and Natural Resources
Division.
[FR Doc. E8–18925 Filed 8–14–08; 8:45 am]
BILLING CODE 4410–15–P

DEPARTMENT OF LABOR
Mine Safety and Health Administration
Petition for Modification
Mine Safety and Health
Administration, Labor.
ACTION: Notice of petition for
modification of existing mandatory
safety standard.
AGENCY:

SUMMARY: Section 101(c) of the Federal
Mine Safety and Health Act of 1977 and
30 CFR Part 44 govern the application,
processing, and disposition of petitions
for modification. This notice is a
summary of a petition for modification
filed by the party listed below to modify
the application of the existing
mandatory safety standard published in

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15AUN1