Part A-SSEIA28_2009_-FINAL

Supporting Statement for the
Financial Reporting System, Form EIA-28
(OMB Number 1905-0149)
Background
The Energy Information Administration (EIA) is requesting Office of Management and Budget (OMB)
approval for revisions to the Energy Information Administration's (EIA's) Financial Reporting System
(FRS), Form EIA-28 (OMB No. 1905-0149), as well as a three-year extension of the Form EIA-28.
Form EIA-28 is used to collect data from 27 major energy producers.
U.S. major energy companies report financial and operating information to the FRS survey each year on
a consolidated corporate level, by individual lines of business, by major functions within each line of
business, and by various geographic regions. From this information, EIA produces the annual
publication Performance Profiles of Major Energy Producers. The data are also used for analyses and
inquiries concerning earnings, profitability, investments, production and refining costs, reserve growth,
and other issues related to the financial performance of major energy producers.
EIA is proposing to add foreign refining and processing cost data. Cost data are vital for understanding
refining margins and providing insight into the profitability of these operations. EIA is also proposing to
separate liquefied natural gas from other natural gas processing as these operations are very different.
EIA is proposing to add a line under refinery inputs, which will help to distinguish inputs to distillation
from other refinery inputs.
EIA is also proposing to reduce the scope of the data collected in the downstream natural gas and
electric power sections of the Form EIA–28. Transmission and distribution will be combined as these
data have often been withheld due to insufficient response. Some of the intra-segment detail for
transmission and distribution will be eliminated for property, plant, and equipment reported on Schedule
5120. Some other details such as daily natural gas storage levels, purchases of fuel by type for power
generation, power sales by type of user, and capacity and generation by type will be eliminated. The
reductions will allow for more streamlined processing of the data and more effective use of resources,
including providing more focus on information about profits, profitability, investment, and operating
costs in these lines of business. Reducing the scope of the survey will also reduce the reporting burden
on the survey respondents.
The information collection proposed in this supporting statement has been reviewed in light of
applicable information quality guidelines. It has been determined that the information will be collected,
maintained and used in a manner consistent with the OMB, DOE, and EIA information quality
guidelines.

A. Justification
1.

Legal Authority for the Form EIA-28 Collection
a.

Section 13(b) of the Federal Energy Administration Act of l974, as amended, P.L. 93-275

(FEA Act) (15 U.S.C. 772(b)), states:
"All persons owning or operating facilities or business premises who are engaged in any
phase of energy supply or major energy consumption shall make available to the
[Secretary] such information and periodic reports, records, documents, and other data
relating to the purposes of this Act, including full identification of all data and
projections as to source, time and methodology of development, as the [Secretary] may
prescribe by regulation or order as necessary or appropriate for the proper exercise of
functions under this Act."
b. The functions of the FEA Act are set forth in Section 5(b) of the Act (15 U.S.C. 764(b)),
which states that the Secretary shall, to the extent he is authorized by Section 5(a) of the FEA
Act:
"... (2) assess the adequacy of energy resources to meet demands in the immediate and
longer range future for all sectors of the economy and for the general public;...
(5) promote stability in energy prices to the consumer, promote free and open
competition in all aspects of the energy field, prevent unreasonable profits within the
various segments of the energy industry, and promote free enterprise;…
(9) collect, evaluate, assemble, and analyze energy information on reserves, production,
demand, and related economic data; ...."
c.

As the authority for invoking Section 5(b) above, subsection 5(a) of the FEA Act of l974
(15 U.S.C. 764 (a)) states:
"Subject to the provisions and procedures set forth in this Act, the [Secretary] shall be
responsible for such actions as are taken to assure that adequate provision is made to
meet the energy needs of the Nation. To that end, he shall make such plans and direct
and conduct such programs related to the production, conservation, use, control,
distribution, rationing, and allocation of all forms of energy as are appropriate in
connection with only those authorities or functions...
(3) otherwise specifically vested in the [Secretary] by the Congress."

d.

Authority for invoking Section 5(a) of the FEA Act, is provided in turn by Section 205(h)
of the DOE Organization Act, P.L. 95-9l, as amended (42 U.S.C. 7135). Key excerpts
appear below.
Section 205(h)(1)(A):
“…The Administrator shall identify and designate “major energy-producing companies”
which alone or with their affiliates are involved in one or more lines of commerce in the
energy industry so that the energy information collected from such major energyproducing companies shall provide a statistically accurate profile (emphasis added) of
each line of commerce in the energy industry in the United States.”

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Section 205(h)(2):
"The Administrator [of the Energy Information Administration of the Department of
Energy] shall develop and make effective for use during the second full calendar year
following the date of enactment of this Act the format for an energy-producing company
financial report. Such report shall be designed to allow comparison on a uniform and
standardized basis among energy-producing companies and shall permit for the energyrelated activities of such companies—

(A)

an evaluation of company revenues, profits, cash flow, and investments in total,
for the energy-related lines of commerce in which such company is engaged and
for all significant energy-related functions within such company;

(B)

an analysis of the competitive structure of sectors and functional groupings within
the energy industry;

(C)

the segregation of energy information, including financial information, describing
company operations by energy source, and geographic area;

(D)

the determination of costs associated with exploration, development, production,
processing, transportation, and marketing and other significant energy-related
functions within such company; and

(E)

such other analyses or evaluations as the Administrator finds is necessary to
achieve the purposes of this Act."

Section 205(h)(4):
"The Administrator shall require each major energy-producing company to file with the
Administrator an energy-producing company financial report on at least an annual basis
..."
Section 205(h)(6)(A):
"...'energy-producing company' means a person engaged in:
(i)

ownership or control of mineral fuel resources or nonmineral energy resources;

(ii)

exploration for, or development of, mineral fuel resources;

(iii)

extraction of mineral fuel or nonmineral energy resources;

(iv)

refining, milling, or otherwise processing mineral fuels or nonmineral energy
resources;

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(v)

storage of mineral fuels or nonmineral energy resources;

(vi)

the generation, transmission, or storage of electrical energy;

(vii)

transportation of mineral fuels or nonmineral energy resources by any means
whatever; or

(viii) wholesale or retail distribution of mineral fuels, nonmineral energy resources or
electrical energy"
2.

The Uses of Data
The FRS program provides data to evaluate the competitive environment within which energy
products are supplied and developed and to analyze the nature of institutional arrangements as
they relate to energy resource development, supply, and distribution. The FRS report, entitled
Performance Profiles of Major Energy Producers (Profiles), has been published for each of the
reporting years l977 through 2007. A multi-year report utilizing FRS data for the 1974-1980
period, entitled Energy Company Development Patterns in the Postembargo Era, was published
in October 1982. The Profiles report for 2008 will be published in December 2009. The
standardized reporting requirements of the FRS program allow for comparison on a uniform
basis among energy-producing companies in the Profiles report, and also permit the report to
address energy industry questions of competition, energy supply and development, investment
and profits by lines of business and petroleum segments, and profits and investment by
geographic divisions.
Competition

Competition issues are addressed in several ways. For example, data on horizontal
diversification are elicited in response to questions such as:
What patterns of diversification are evident? How significant is the extent of major
energy company involvement in various non-petroleum energy sectors? How do trends
in diversification relate to line-of-business profitability? Are trends among various size
classes of firms similar or disparate? What have been the effects of major mergers?
Is the rate of diversification associated with firm size, profitability, or degree of attained
integration?
Another aspect of competitive concern relates to vertical integration and the capacity of
integrated firms to foreclose or impair the competitive viability of unintegrated firms. The FRS
provides data relating to questions such as:
Are changes associated with size or profitability? How extensive are changes caused by
mergers and acquisitions? Are company patterns of profitability and development
parallel or diverse? How has company restructuring affected patterns of integration?
Energy Supply and Development

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The FRS permits analysis of energy supply and development by addressing questions such as:
What costs are associated with which development results? In what way are petroleum
exploration and development costs associated with reserve accretions? What has been
the role of mergers and acquisitions on resource development costs and performance?
What is the balance between foreign and domestic development? How do investment
and production rates of development compare among alternative fuel sources? Do rates
of development differ among firms? Are differences in rates of development associated
with firm size, profitability, or diversification? How are new investments financed?
Profits and Investment
Information on comparative profitability and investment patterns by major function affects the
assessment of patterns of new investment. With respect to energy development the FRS
monitors and analyzes policy initiatives and programs and explores issues such as:
Relationship between capital markets and investment strategies; the interplay between
mergers, restructuring, and investment patterns; the effects of Federal tax policies as they
impact patterns of investment; and the effects of governmental efforts associated with the
encouragement of development of petroleum resources.

3.

Improved Information Technology
Since 1984, EIA has accepted computer-generated forms in lieu of hard copy forms for Form
EIA-28. In addition, beginning with the 1986 reporting year, EIA developed (and provided to
the FRS respondents) personal computer software to use for data entry and electronic submission
of the survey form. The software system also allows them to perform all of EIA's automated edit
and audit checks at their own location prior to submitting their Form EIA-28. The software was
updated to a Windows-based system beginning with the 2000 reporting year. All of the
respondents use this software for submitting the form, and the entire submission process has
been more timely and less burdensome on them. There are fewer submission errors, and less
time required for desk audits and for follow-up comment letters.

4.

Availability of Similar Data
Other EIA programs collect data that are similar to some of the operating data collected by Form
EIA-28. However, these data are collected in a way that is not suitable for FRS purposes. In
order to use data from another EIA reporting program, the data would have to meet three
important tests. It would have to be:


Collected on an ownership basis (rather than an operator basis);



Reported in total for all of a respondent's affiliates; and



Collected at a level of detail and using definitions appropriate to FRS needs.

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In the domestic refining area, EIA collects data on an operational or custodial basis on Form
EIA-810 (refinery inputs and outputs). The FRS collects refinery inputs, outputs, and capacity
for domestic and foreign operations on an ownership basis. EIA-810 data are operating data that
would include oil run by one company for another company, under a processing or exchange
agreement, or by one company for a third company which is not a refiner (or maybe not a
processing company at all). Comparisons of equity versus operating data (both inputs and
outputs) indicate an expected wide divergence in numbers.
The FRS collects refined product sales volume and revenue by class of trade for three primary
products. The EIA-782A also collects refined product sales, and the EIA-782C collects data on
the first sale of refined products delivered in a State for consumption. The EIA-782C makes no
distinction by class of trade. The EIA-782A uses classes of trade that are more aggregated than
on EIA-28. The FRS collects sales data for commercial sales direct to end users, companyowned and operated outlets, lessee and open dealer outlets, and wholesalers. The EIA-782A
combines the latter two categories. Analyses of financial performance in refining/marketing
have found that shifts between these latter channels of distribution had noticeable profitability
consequences among the FRS companies.
In the domestic electricity area, EIA currently collects data on an operator basis on Forms EIA412, EIA-423, EIA-860, EIA-861 and EIA-906. The proposed FRS data collection includes
similar information, but on an ownership basis. Operation and ownership differ, resulting in a
divergence between company-based information and operator-based information.
The proposed FRS data collection also includes information that is not collected on the other
EIA forms. Without the proposed FRS data collection, certain analyses of financial performance
in electricity could not be performed. For example, the current EIA forms do not collect
information on total operating costs. Without these costs, the operating return on investment in
electricity, a key financial indicator, cannot be determined.
Analysis of Similar Existing Information
Existing Federal data collection programs that collect information that might be similar to that
collected by the FRS were carefully reviewed. In addition, the types of financial information
made publicly available for the large energy companies were reviewed. These reviews indicate
that the information collected from these other data collections is not sufficient from the
standpoint of the FRS' need for one or more of the following reasons:


Data reporting conventions are not consistent from company to company and,
therefore, data are not comparable.



Company definitions of business segments are not consistent from company to
company and are changed over time resulting in lack of data comparability and
precluding accurate statistical aggregation.



Data are not available on a company-by-company basis.



Data do not form part of an ownership-based cash flow, cost, or investment
picture.
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5.



Data do not have a consistent frame of reference and, therefore, are not
comparable.



Reporting cycles are not compatible or appropriate.



Data are not collected in sufficient detail to allow for the analyses specified under
Section 205(h) of the DOE Organization Act (P.L. 95-91).

Collection of Information from Small Businesses
No small businesses are surveyed using Form EIA-28.

6.

Consequence of Less Frequent Report
As noted under the section above, entitled "Legal Requirements," Section 205(h)(4) of the DOE
Organization Act (P.L. 95-91) specifically requires "... an energy-producing company financial
report on at least an annual basis ...." Data for intervals longer than annual would be inconsistent
with legal requirements.

7.

Special Circumstances
No special circumstances apply.

8.

Public Consultations

EIA filed a notice of request for comments in the Federal Register on April 7, 2009 (Vol. 74, No. 65,
pages 15716-15717). Five responses were received during the public comment period that ended on
June 8th, 2009. Four comments were from companies that are required to file the Form EIA-28 survey.
One of these companies commented that they had no problem with the proposed changes. The fifth
comment was from a Federal Government agency that is a user of the data.
These comments, and EIA’s responses, are as follows:
Comment:
The Bureau of Economic Analysis (BEA) strongly supports the continued collection of data by
the Energy Information Administration on EIA Form 28, Financial Reporting System. The data
collected on this form are crucial to key components of BEA’s economic statistics.
BEA uses data from this form to prepare the national income and product accounts and gross
domestic product (GDP) by industry. Information on depreciation, depletion and amortization
(DD&A), and pretax income from schedules 5120 and 5210 are used to transform the companybased estimates of these measures to an establishment basis which in turn are used in the
estimates of GDP by industry (the items used are listed in the attachment).
Information on dry hole expenses from schedule 5131 are used to prepare estimates of the profits
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before tax components of national income. For the annual I-O accounts, the data are used to
estimate output for the mining industries. In addition, the establishment-based information on
expenditures for property, plant, and equipment are used to allocate Internal Revenue Service
company-based data, which provides a way to check the level of BEA's establishment-based
estimates of nonresidential fixed assets by industry.
EIA Response:
The only change that may affect the Bureau of Economic Analysis is that DD&A will only be
available for natural gas transmission as a whole, not the natural gas transmission pipeline
segment.

Comment:
Schedule 5211 - Requires data collection from all foreign downstream affiliates. Since the
schedule has different categories than normally used internally, affiliates will have to categorize
their expense data.
Schedule 5212 - Requires data collection from all foreign petroleum affiliates. This is a very
involved and difficult schedule to complete for domestic operations. To compile a worldwide
summary of purchases and sales will be a significant effort.
Schedule 5711 - Requires data collection from foreign downstream natural gas affiliates. The
effort to obtain the data is probably modest.
The proposed additional detail of purchase and sales by product and the additional detail of
expense by type for foreign operations imposes a significant burden of data collection from
many affiliates around the globe representing diverse operations. When aggregated for EIA-28
reporting, the summarized data will provide no insight into foreign operations beyond a general
sense of magnitude of U.S. versus Non-U.S. operations. However, within the EIA-28, as well as
in published data in the 10-K and annual reports, there is already geographical data on financial
results, production, product sales, average prices, refinery operations, etc. that provide a much
better picture of U.S. versus Non-U.S. operations than the proposed new collections. We do not
believe additional aggregations of details of very diverse foreign operations is meaningful data.
Nor do we believe that this type of aggregated foreign data is necessary to the Department of
Energy mission regarding domestic energy policy.
EIA Response:
The proposed additional detail of expense data for foreign operations is rarely published in the
10-K and annual reports and the purchase and sales data are not provided on a consistent basis.
The proposed data will provide insight into refining costs, a very important piece of refinery
operations, and provide important information beyond the “3-2-1 crack spread” type of margins
that are presented in industry trade press. Having this data on Form EIA-28 will allow EIA to
develop a foreign equivalent to the gross margin, refinery costs, and net margin data that are
currently published for domestic refining/marketing operations. Petroleum markets are
worldwide, interconnected markets. Having a more complete understanding of foreign
operations will contribute to analysis of the domestic petroleum industry.
Comment:
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Although a better understanding of significant changes in PP&E and Investment balances is a
reasonable objective, adding new "Other" columns to Schedule 5120 without specific
instructions of what you want to see detailed does not appear to accomplish anything. (We
inquired about instructions and were told by Mr. Neal Davis that there were no instructions as
yet, but that the purpose of the columns was to account for all changes such that within-yearchanges would sum with the beginning balance to equal the ending balance.) Since the "Other"
columns are just the mathematical difference in the existing columns, they do not provide any
new information. To have any additional understanding of changes in the ending balances,
certain items would need to be broken out of the "Other" column.
As we have explained previously, the differences in ending balances could be made up of many
factors such as proceeds and gain/loss on dispositions, change in investment allowances, foreign
exchange translation effects, valuation adjustments, asset retirement obligations, capitalized
interest, change in investment balance from net of equity company earnings and dividends,
amortization of discount or premium on investments, transfers between segments, etc. It would
not seem practical to attempt to detail everything. Since we currently do not require affiliates to
do detailed reconciliations by segment, we will have to set up a collection to obtain whatever
information is required. We need to know specifically what change categories we need to request
affiliates to provide. Within the tight reporting deadline, we don't have time to collect "Other"
and then try to identify and recycle questions to affiliates on large changes. And we can't
accurately total a change category on an ad hoc basis. Without clear definitions of what to detail
out of "Other" we can't define our collection and you will not get consistent information from
reporting companies.
EIA Response:
The purpose of the “Other” columns is to reduce reporting errors. Even though survey
respondents have been instructed not to do so, we have discovered reclassifications and revisions
in the Additions to PP&E column during our review process. The “Other” columns will provide
a place for survey respondents to include these items and not corrupt the “Additions” columns,
which are very important as indicators of capital expenditures. The survey respondents will be
given detailed instructions on what to include in these columns.
Comment:
Schedule 5120, Property, Plant and Equipment and Investments & Advances to Unconsolidated
Affiliates – The other column is a welcome change to balance the numbers. This is a good
modification.
EIA Response:
The “Other” columns should help to reduce reporting errors as indicated above.
Comment:
We collect information from many reporting units worldwide in order to complete the EIA-28.
We use data that is collected from affiliates for the 10K in our year-end reporting process as
much as possible. For data required for the EIA-28 but not needed for the 10K, we have a
supplemental reporting by affiliates which we receive in late April (after tax reporting, local
government reporting, and first quarter reporting requirements are met). As it is, we need an
extension to complete the EIA-28. The proposed additional reporting will make it even more
difficult to complete the EIA-28 in a timely manner. The burden of the new information falls
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most heavily on foreign affiliates which make up the greater number of our reporting units. The
new reporting requirements are real increased demands. In most cases, the reporting deletions
provide no offset because we had nothing to report on the deleted lines to start with.
Our company’s Consolidated Financial Statements are the basis of EIA 28 data. These
statements are not final until the end of March. Due to the amount of data we are unable to meet
the May 1st due date. We would like to see the due date moved to June 1st, this would give the
businesses units additional time to review their data prior to submission and possibly reduce the
amount of questions/clarification requests we receive each year.
Depending on the workload of our governmental reporting focal point, there is a possibility that
the timing of the EIA-28 could conflict with the preparation of other quarterly reports. This year
we actually incurred costs for a contractor working on the quarterly reports so that the focal
point could devote all attention to the preparation of the EIA-28. The due date of June 1st
suggested above would mitigate this additional cost.
EIA Response:
EIA typically provides extensions to about half of the survey respondents. Since the other half
of the survey respondents are able to meet the May 1 deadline, that allows us to start processing
and reviewing data. EIA performs an extensive review of the Form EIA-28 data and uncovers
numerous reporting errors during this process. The May 1 deadline helps us balance the need for
reviewing the data and the need for timely reporting of the survey results to better serve our
customers. A June 1 deadline would cause significant delay in the release of the Form EIA-28
data. We receive many requests for the data to be released sooner than our current schedule
allows.
Comment:
For a number of schedules, the EIA-28 report is similar to the 10K filed with the SEC. We
recognize that consistent data formats in the EIA-28 facilitate industry comparability. But
wherever possible, to avoid duplicate reporting and so the Energy Information Administration
obtains the most timely information, the 10K data should be used and not duplicated in the EIA28 submission.
EIA Response:
Form EIA-28 requires respondents to report a consistent set of lines of business and geographic
regions, which is not the case with the SEC 10-K report. EIA also provides respondents with
software that allows them to electronically file and allows for easy loading into the database.
Data from the 10-K would have to be collected and typed into the database, which could lead to
data entry errors. Further, having a complete set of data on one survey form allows for edit
checks and other comparability tests that would not be possible if data were collected from more
than one source.
Comment:
One issue currently under consideration by the SEC is to include Canadian tar sands with
conventional oil production operations for reporting in the 10K in some format. Tar sands are
currently reported in the Other Energy segment for the EIA-28. It would make sense to have
consistency on segment reporting for the 10K and the EIA-28. We would hope that the Energy
Information Administration is keeping abreast of this issue and will provide guidance for the
10

EIA-28 regarding tar sands in a timely manner.
EIA Response:
We plan to maintain consistency with the SEC on the oil sands issue and to include those
operations with conventional oil production once that change is made.
Comment:
Schedule 5120 - Requires data collection from all affiliates worldwide. Lines 64 and 68 should
be combined to be consistent with Schedule 5710 segmentation; otherwise there is not a one to
one match on depreciation.
EIA Response:
Line 68.10 on Schedule 5120 is the sum of lines 64 and 68.
Comment:
Schedule 5210 - Requires data collection from worldwide petroleum affiliates. There is probably
very limited hedging and derivatives activity to report for our company.
EIA Response:
The only change to Schedule 5210 is the addition of the hedging/derivatives line, which will
make Schedule 5210 consistent with Schedule 5710 and Schedule 5810 and will allow this data
to be reported separately from the “other revenue” line.
Comment:
Schedule 5210, Consolidating Statement of Income, Pages 1 and 2, line 03.50, Operating
Revenues: Hedging/Derivatives – We do not record hedging or derivative activity as revenue.
Instead, the gain or loss related to hedging or derivatives is either recorded in cost of sales or in
other income and expense.
EIA Response:
Many respondents handle internal data differently. The Form EIA-28 requires consistent
reporting by all respondents.
Comment:
Schedule 5242 - Requires data collection from refineries. The data is probably available with a
modest effort and will provide a more complete summary of refinery inputs and outputs.
EIA Response:
The changes to Schedule 5242 will help clarify refinery inputs and provide a line for reporting
refinery consumption of refinery output.
Comment:
Schedule 5246 - We already collect data on the production of crude oil versus NGL.
EIA Response:
Separating crude oil and NGL production will help our review of natural gas processing and
should not be difficult for respondents.

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Comment:
Schedule 5710 - Requires modification in the collection of data. Breaking out LNG operations
from gas plant operations appears reasonable. We would have to understand the purchase and
sales rules between production, gas processing and LNG operations to fully evaluate the
complexity that may be involved.
EIA Response:
The purchase and sales rules are included in the instructions.
Comment:
Schedule 5741 - Collection of Schedule 5741 data is not a major effort.
EIA Response:
The proposed changes to Schedule 5741 will help clarify some reporting issues.
Comment:
EIA-28 information is not used for the performance of our business, management reporting or
any other statistical agency. It does not have practical utility in our organization other than
submission to DOE. Based on this fact, we’d like to note:
•
any additional schedules/lines of data require additional manual collection of data and
consolidation and input
•
any reduction in schedules and scope of the report do indeed reduce our manual effort
and are welcomed
EIA Response:
EIA receives many requests for Form EIA-28 data from Congressional staff, other government
agencies, energy and investment analysts, academics, students, and the general public. We are
proposing some additional reporting requirements but we are also reducing the reporting
requirements on several schedules.
Comment:
We currently utilize control totals, variance analysis and other tools to monitor the quality of our
data submitted. For the 2009 submission, our focal point has flagged historically complicated
schedules and will review with each contributor to ensure the submissions are correct.
EIA Response:
EIA conducts an extensive review of the Form EIA-28 data and works with respondents to
ensure that data quality is maintained.
Comment:
The instructions and definitions are clear and sufficient.
EIA Response:
We often review and update the instructions and definitions.
Comment:
We think that 500 hours is a fair estimate for the reporting burden of this survey. Depending on
the amount of questions the EIA has there may actually be even more time allocated for the
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collection and the submission of the report.
EIA Response:
Respondents that have more than one line of business usually require more time to complete the
survey. Our aim is to collect important, relevant data and to streamline the survey where
possible.
Comment:
The ability to populate the data in the EIA reporting tool by importing the schedules from an
excel spreadsheet format would save time for respondents by not having to manually populate
every schedule into the EIA reporting tool. The collection and the manipulation of the data is an
extremely manual process.
EIA Response:
EIA provides respondents with software that allows them to do some data edits and to print the
survey once they have entered the data. We are exploring ways of improving this process.
Resource constraints limit some of the changes that we would like to make.

9.

Payments or Gifts
No payments or gifts will be provided to respondents.

10.

Provisions Regarding Confidentiality of Information
The information provided will be used for statistical purposes only. In accordance with the
Confidential Information Protection provisions of Title V, Subtitle A of Public Law 107-347 and
other applicable Federal laws, responses will be kept confidential and will not be disclosed in
identifiable form to anyone other than employees or agents without the consent of the reporting
company. By law, every EIA employee, as well as every agent, is subject to a jail term, a fine of
up to $250,000, or both if he or she discloses ANY identifiable information about the reporting
company.

11.

Justification for Sensitive Questions
There are no sensitive questions on Form EIA-28.

12.

Estimate of Reporting Burden
The proposed average annual burden is 16,327 hours. The average burden per response is 605
hours for the 27 respondents (up from 26 respondents in 2006). The total estimated annual
burden for the first year is 19,127 hours (14,927 plus 4,200 hours required to modify information
systems in the first year). The second and third years have an estimated annual burden of 14,927
hours. See section 15 for additional details.

13.

Capital and/or Startup Costs

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There are no capital and/or startup cost components or operations and maintenance associated
with this data collection. The information is maintained in the normal course of business.
Therefore, other than the cost of burden hours, there are no additional costs for generating,
maintaining and providing the information provided in Item 12 above. The cost to respondents is
estimated to be 16,327 hours x $62.50/hour = $1,020,438. (An average cost per hour of $62.50 is
used because that is the average loaded (salary plus benefits) cost for an EIA employee. EIA
assumes that the survey respondent workforce completing surveys for EIA is comparable with
the EIA workforce.)
14.

Annualized Cost to the Federal Government
The estimated cost of the Financial Reporting System (FRS) information collection, processing,
analysis, and reporting program for the 2009 reporting year is estimated to be $578,000. The
composition of this 2009 reporting year Form EIA-28 cost is as follows:
Estimated Costs by Budget Categories:
Personnel (2.1 FTE)
Contracts
Collection costs

$273,000
300,000
5,000

Total Costs by Budget Categories:

$578,000

Estimated Costs by Functional Categories:
a.
b.

Development and Maintenance Costs
Collection Costs:
 Printing
 Mailing costs
Total collection costs

c.
d.
e.

$

Processing Costs
Analysis Costs
Publication Costs

1,500
3,500
$ 5,000
$285,000
245,000
3,000

Total Costs by Functional Categories:
15.

$ 40,000

$578,000

Summary of Changes in Burden
The EIA estimates an annual increase of 1,741 hours. EIA proposes an increase of burden hours
per response from 561 hours per response (15,147 total hours) in the previous ICR, to 605 hours
per response (16,327 total hours) in the proposed ICR. The average burden per response is
estimated to increase due to the one-time modification in information collection systems (this,
despite the 63-element decrease in the size of the form) because only 19 of the respondents are
currently engaged in the downstream natural gas line of business and 8 respondents are engaged
in the electric power line of business. The total increase of 1,741 hours (16,327 – 14,586) is due
to both agency discretion (program change) and adjustments. Adjustments consist of one
additional company being added to the sample (561 hours) and program changes:
14

Program changes result in a 1,180 hour increase due to the following:
 1,400 additional hours to modify information collection systems,
 60 additional hours to collect and report domestic and foreign LNG data,
 420 additional hours to collect and report foreign refining operational cost data,
 380 fewer hours due to a 9-percent reduction in downstream natural gas data collected and
reported, and
 320 fewer hours due to a 65-percent reduction of electric power data collected and reported.

Category
Current Burden
Adjustments:
Number of respondents
increasing to 27
Current Total
Program Changes:
Additions:
Modification of Information
Systems (1st Year only)

Hours Per Number of
2nd and 3rd Annual
Response Respondents
1st Year total Year total
Average
561
26
14586
14586
14586
0
0
0
561

1

561
15147

561
15147

200

21

4200

0

LNG Operations

10

6

60

60

Foreign Refining Operations

35

12

420

420

0

0

Reductions:
Downstream Natural Gas

20

-19

-380

-380

Electric Power

40

-8

-320

-320

19127

14927

Total

16.

561
15147

1400
60
420
0
-380
-320
16327

Schedule
The filing due date for 2009 data will be May 1, 2010. It should be noted, however, that a twoweek extension of this filing date is permitted by the Form EIA-28 Instructions if respondents
require more time and request such an extension. Historically, it has been EIA's policy to
approve such filing extension requests.
Publication of the Profiles report is scheduled for December 2010 for the 2009 reporting year
data. Similar schedules will be followed for reporting years 2010 and 2011.

17.

Valid OMB Number
As required, the following statement will appear at the top of the first page of the survey form:
“You are not required to respond to any Federally sponsored collection of information unless it
displays a valid OMB number.” The OMB number and expiration date will be displayed on
Form EIA-28.

18.

Exceptions
There are no exceptions to the Certification for Paperwork Reduction Act submissions on OMB
15

Form 83-1.

16