0139 60-day FRN

Federal Register / Vol. 73, No. 220 / Thursday, November 13, 2008 / Notices
DEPARTMENT OF THE INTERIOR
Minerals Management Service
[Docket No. MMS–2008 MRM–0039]

Agency Information Collection
Activities: Proposed Collection,
Comment Request
Minerals Management Service
(MMS), Interior.
ACTION: Notice of a revision of a
currently approved information
collection (OMB Control Number 1010–
0139).

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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 onshore and offshore
royalty and production reporting on oil,
gas, and geothermal leases on Federal
and Indian lands. We changed the title
of this ICR to reflect current regulatory
actions. The new title of this ICR is ‘‘30
CFR Parts 210 and 212, Royalty and
Production Reporting.’’
Publication of the final rule, RIN
1010–AD20, Reporting Amendments, on
March 26, 2008 (73 FR 15885), changed
a number of citations, primarily under
30 CFR part 210. The final rule removed
30 CFR part 216 and replaced part 210
in its entirety. In this revision, we also
consolidated the following ICRs to allow
programwide review of both aspects of
reporting—remittance of royalties and
production accounting on oil, gas, and
geothermal leases:
• 1010–0139, previously titled ‘‘30
CFR Part 210—Forms and Reports and
Part 216—Production Accounting;’’ and
• 1010–0140, previously titled ‘‘30
CFR Part 210—Forms and Reports.’’
DATES: Submit written comments on or
before January 9, 2009.
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–0039’’ 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

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Management Service, Minerals Revenue
Management, P.O. Box 25165, MS
302B2, Denver, Colorado 80225. Please
reference ICR 1010–0139 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 St., Denver, Colorado
80225. Please reference ICR 1010–0139
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 210 and 212,
Royalty and Production Reporting.’’
OMB Control Number: 1010–0139.
Bureau Form Number: Forms MMS–
2014, MMS–4054, and MMS–4058.
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). The Secretary
is required by various laws to manage
mineral resource production from
Federal and Indian leases, collect the
royalties and other mineral revenues
due, and distribute the funds in
accordance with applicable laws. Public
laws pertaining to mineral leases on
Federal and Indian lands are posted on
our Web site at http://
www.mrm.mms.gov/Laws_R_D/
PublicLawsAMR.htm.
The Secretary also has a trust
responsibility to manage Indian lands
and seek advice and information from
Indian beneficiaries. The MMS performs
the minerals revenue management
functions and assists the Secretary in
carrying out the Department’s trust
responsibility for Indian lands.
General Information
The MMS financial accounting system
is an integrated computer system that
includes payment and sales volumes
and values, as reported by payors.
Production and royalty volumes are
compared to verify that proper royalties
are received for the minerals produced.
Additionally, the data is shared
electronically with the MMS Offshore
and Energy and Minerals Management
program, Bureau of Land Management,
Bureau of Indian Affairs, and tribal and
state governments so they can perform
their lease management responsibilities.
The MMS uses the information
collected in this ICR to ensure that

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royalty is appropriately paid, based on
accurate production accounting on oil,
gas, and geothermal resources produced
from Federal and Indian leases. The
requirement to report accurately and
timely is mandatory.
Royalty Reporting
The regulations require that lessees
report and remit royalties on oil, gas,
and geothermal resources produced
from leases on Federal and Indian lands.
The following form is used for royalty
reporting:
Form MMS–2014, Report of Sales and
Royalty Remittance, is submitted
monthly to report royalties on oil, gas,
and geothermal leases, certain rents, and
other lease-related transactions (e.g.,
transportation and processing
allowances, lease adjustments, and
quality and location differentials).
Production Accounting
The MMS financial accounting system
includes production reports submitted
by lease/agreement operators and is
designed to track minerals produced
from Federal and Indian lands from the
point of production to the point of
disposition, or royalty determination,
and/or point of sale. The following
forms are used for production
accounting and reporting:
Form MMS–4054, Oil and Gas
Operations Report (OGOR), is submitted
monthly for all production reporting for
Outer Continental Shelf, Federal, and
Indian lands. Production information is
compared with sales and royalty data
submitted on Form MMS–2014 to
ensure proper royalties are paid on the
oil and gas production reported to
MMS. The MMS uses the information
from Parts A, B, and C of the OGOR to
track all oil and gas from the point of
production to the point of first sale or
other disposition.
Form MMS–4058, Production
Allocation Schedule Report (PASR), is
submitted monthly by operators of the
facilities and measurement points where
production from an offshore lease or
metering point is commingled with
production from other sources before it
is measured for royalty determination.
The MMS uses the data to determine
whether sales reported by the lessee are
reasonable.
OMB Approval
We will request 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

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Federal Register / Vol. 73, No. 220 / Thursday, November 13, 2008 / Notices

items of a sensitive nature are included
in this information collection.
Responses are mandatory.
Frequency: Monthly.
Estimated Number and Description of
Respondents: 4,570 oil, gas, and
geothermal reporters.
Estimated Annual Reporting and
Recordkeeping ‘‘Hour’’ Burden: 236,421

requirement at § 216.30, which changed
the burden by 1 hour.
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:

hours. Our estimate of the number of
respondents and the time required to
complete the forms has not changed.
However, the citations changed when
the final rule, RIN 1010–AD20,
Reporting Amendments, published on
March 26, 2008. The final rule removed
30 CFR part 216 and replaced part 210
in its entirety and also removed the

RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS
30 CFR Part 210

Reporting and recordkeeping requirement

Average
number of
annual
responses

Hour burden

Annual burden
hours

30 CFR 210—FORMS AND REPORTS
Subpart B—Royalty Reports—Oil, Gas, and Geothermal Resources
210.52(a) and (b);
210.53(a) and
(b); 210.54(a)
and (b).

210.52

What royalty reports must I submit? .............................................

Electronic*
(approximately 99 percent)

0.05 ..............
(3 minutes) ...
You must submit a completed Form MMS–2014, Report of Sales and
Royalty Remittance, to MMS with:
(a) All royalty payments; and .......................................................................
(b) Rents on nonproducing leases, where specified in the lease ...............

3,103,265

155,163

Manual*
(approximately 1 percent)

0.1167 ..........
(7 minutes) ...

31,346

3,658

210.53 When are my royalty reports and payments due?
(a) Completed Forms MMS–2014 for royalty payments and the associated payments are due by the end of the month following the production month (see also § 218.50).
(b) Completed Forms MMS–2014 for rental payments, where applicable,
and the associated payments are due as specified by the lease terms
(see also § 218.50).
210.54 Must I submit this royalty report electronically?
(a) You must submit Form MMS–2014 electronically unless you qualify
for an exception under § 210.55(a).
(b) You must use one of the following electronic media types, unless
MMS instructs you differently:
*

*

*

*

*

Subtotal for Royalty Reporting ...............................................................................................

*
......................

*
3,134,611

158,821

Subpart C—Production Reports—Oil and Gas

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210.102(a)(1)(i)
and (ii), (a)(2)(i)
and (ii).

210.102

What production reports must I submit? .....................................

Burden hours covered under 210.104(a) and
(b).

(a) Form MMS–4054, Oil and Gas Operations Report. If you operate a
Federal or Indian onshore or OCS oil and gas lease or federally approved unit or communitization agreement that contains one or more
wells that are not permanently plugged or abandoned, you must submit
Form MMS–4054 to MMS:
(1) You must submit Form MMS–4054 for each well for each calendar
month, beginning with the month in which you complete drilling, unless:
(i) You have only test production from a drilling well; or
(ii) The MMS tells you in writing to report differently.
(2) You must continue reporting until:
(i) The Bureau of Land Management (BLM) or MMS approves all wells
as permanently plugged or abandoned or the lease or unit or
communitization agreement is terminated; and
(ii) You dispose of all inventory.

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Federal Register / Vol. 73, No. 220 / Thursday, November 13, 2008 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
30 CFR Part 210

Reporting and recordkeeping requirement

Average
number of
annual
responses

Hour burden

Annual burden
hours

210.102(b)(1),
(b)(2)(i)–(vi).

(b) Form MMS–4058, Production Allocation Schedule Report. If you operate an offshore facility measurement point (FMP) handling production
from a Federal oil and gas lease or federally approved unit agreement
that is commingled (with approval) with production from any other
source prior to measurement for royalty determination, you must file
Form MMS–4058.
(1) You must submit Form MMS–4058 for each calendar month beginning with the month in which you first handle production covered by
this section.
(2) Form MMS–4058 is not required whenever all of the following conditions are met:
(i) All leases involved are Federal leases;
(ii) All leases have the same fixed royalty rate;
(iii) All leases are operated by the same operator;
(iv) The facility measurement device is operated by the same person as
the leases/agreements;
(v) Production has not been previously measured for royalty determination; and
(vi) The production is not subsequently commingled and measured for
royalty determination at an FMP for which Form MMS–4058 is required
under this part

Burden hours covered under 210.104(a) and
(b).

210.103 (a) and
(b).

210.103

Burden hours covered under 210.104(a) and
(b).

When are my production reports due? .......................................

(a) The MMS must receive your completed Forms MMS–4054 and
MMS–4058 by the 15th day of the second month following the month
for which you are reporting.
(b) A report is considered received when it is delivered to MMS by 4 p.m.
mountain time at the addresses specified in § 210.105. Reports received after 4 p.m. mountain time are considered received the following business day.
210.104 (a) and
(b).

210.104

Must I submit these production reports electronically? ..............

(a) You must submit Forms MMS–4054 and MMS–4058 electronically
unless you qualify for an exception under § 210.105.

Electronic*
(approximately 97 percent)
0.25 ..............
(15 minutes)

(b) You must use one of the following electronic media types, unless
MMS instructs you differently:

301,280

Manual*
(approximately 3 percent)
0.25 ..............
(15 minutes)

*

*

*

*

75,320

*

9,120

*

2,280

*

Subpart D—Special-Purpose Forms and Reports—
Oil, Gas, and Geothermal Resources
210.155 ...............

210.155 What reports must I submit for Federal onshore stripper oil
properties?
(a) General. Operators who have been granted a reduced royalty rate by
the Bureau of Land Management (BLM) under 43 CFR 3103.4–2 must
submit Form MMS–4377, Stripper Royalty Rate Reduction Notification,
under 43 CFR 3103.4–2(b)(3).

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*

*

*

*

Burden covered under OMB Control Number
1010–0090 (expires December 31, 2010).

*

Subtotal for Production Reporting ..........................................................................................

*
......................

*
310,400

77,600

PART 212—RECORDS AND FILES MAINTENANCE
Subpart B—Oil, Gas and OCS Sulphur—General
212.50 .................

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212.50

Required recordkeeping and reports ............................................

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Burden hours covered under 210.54(a) and (b);
and 210.104(a) and (b).

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Federal Register / Vol. 73, No. 220 / Thursday, November 13, 2008 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued

30 CFR Part 210

Reporting and recordkeeping requirement

Hour burden

Average
number of
annual
responses

Annual burden
hours

All records pertaining to offshore and onshore Federal and Indian oil and
gas leases shall be maintained by a lessee, operator, revenue payor,
or other person for 6 years after the records are generated unless the
recordholder is notified, in writing, that records must be maintained for
a longer period * * *.
[In accordance with 30 U.S.C. 1724(f), Federal oil and gas records must
be maintained for 7 years from the date the obligation became due.]
212.51(a) and (b)

(a) Records. Each lessee, operator, revenue payor, or other person shall
make and retain accurate and complete records necessary to demonstrate that payments of rentals, royalties, net profit shares, and other
payments related to offshore and onshore Federal and Indian oil and
gas leases are in compliance with lease terms, regulations, and orders
* * *.
(b) Period for keeping records. Lessees, operators, revenue payors, or
other persons required to keep records under this section shall maintain and preserve them for 6 years from the day on which the relevant
transaction recorded occurred unless the Secretary notifies the record
holder of an audit or investigation involving the records and that they
must be maintained for a longer period * * *.
[In accordance with 30 U.S.C. 1724(f), Federal oil and gas records must
be maintained for 7 years from the date the obligation became due.]

Total for Royalty and Production Reporting ...........................................................................

Burden hours covered under 210.54(a) and (b);
and 210.104(a) and (b).

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

3,445,011

236,421

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*Note: Each line of data is considered one response/report.

Estimated Annual Reporting and
Recordkeeping ‘‘Non-Hour’’ Cost
Burden:
Reporters require access to the
Internet through a subscription to an
Internet provider service. The annual
subscription is estimated at $240 per
reporter.
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
60-day notice in the Federal Register
* * * and otherwise consult with
members of the public and affected
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
information to be collected; and (d)
minimize the burden on the
respondents, including the use of

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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,

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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 on our Web site 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
post all comments, including names and
addresses of respondents, at http://
www.regulations.gov. 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.
Dated: November 6, 2008.
Jennifer L. Goldblatt,
Acting Associate Director for Minerals
Revenue Management.
[FR Doc. E8–26890 Filed 11–12–08; 8:45 am]
BILLING CODE 4310–MR–P

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