Supporting Statement 2011

20

SUPPORTING STATEMENT FOR PAPERWORK REDUCTION ACT SUBMISSION

OMB CONTROL NUMBER 1004-0137

ONSHORE OIL AND GAS OPERATIONS (43 CFR PART 3160)

Forms 3160-3, 3160-4, and 3160-5

Terms of Clearance: None.

SECTION A

JUSTIFICATION

1. Explain the circumstances that make the collection of information necessary. Identify any legal or administrative requirements that necessitate the collection. Attach a copy of the appropriate section of each statute and regulation mandating or authorizing the collection of information.

The Bureau of Land Management (BLM) has the following authorities for collecting the required information from those who wish to participate in the exploration, development, production, and utilization of oil and gas operations on BLM-managed public lands:

1. The Mineral Leasing Act of 1920 (30 U.S.C. 181 et seq.);

2. The Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1701 et seq.);

3. The Act of August 7, 1947 (Mineral Leasing Act of Acquired Lands) (30 U.S.C. 351‑359);

4. The National Environmental Policy Act of 1969; and

5. The regulations at 43 CFR part 3160.

2. Explain how, by whom, how frequently, and for what purpose the information is used. Except for a new collection, indicate the actual use the agency has made of the information received from the current collection. [Be specific. If this collection is a form or a questionnaire, every question needs to be justified.]

The BLM needs the required information in order to approve and regulate oil and gas operations on public lands.

Requirements for Operating Rights Owners and Operators 43 CFR Subpart 3162

The respondent must comply with the applicable laws and regulations, lease terms, onshore oil and gas orders, notices, and instructions. The BLM needs this information to approve oil and gas operations.

Application for Permit to Drill or Re-enter (43 CFR 3162.3-1) Form 3160-3

Under 43 CFR 3162.3-1, the respondent must file with the BLM Form 3160-3, Application for Permit to Drill, and the required information under this subpart to obtain approval of operations on BLM-managed lands. The BLM needs this information to approve the application.

Specific information we request on Form 3160-3:

(Item 1) Identify the type of work anticipated and provide production and zonal information. We require this information to manage reservoir management, royalty compliance, and operational aspects of the application for permit to drill.

(Items 2-3) Identify the operator and where the operator can be reached. We require this information to contact operator concerning the operations.

(Items 4-13) Identify specifically the proposed surface and bottom-hole locations of the proposed action. The BLM needs this information to determine whether the operator is complying with the provisions of the regulations in this subpart.

(Item 14) Identify the location of the operation. The BLM needs this information to locate the operation and industry personnel.

(Items 15-19) Identify the spacing orders. The BLM needs this information, and state agencies also require the same information, to determine if spacing orders are implemented.

(Item 20) Identify the bond number that covers the operations. The BLM needs this information to determine if we have proper bond coverage for the identified operations.

(Items 21-23) Identify technical information such as permit approval, evaluation, and subsequent on-the-ground review and inspection after actual drilling begins. The prospective production of resources must be included. The BLM needs this information to approve the individual operation.

(Item 24) Provide the additional information as part of the application:

-Certified well plat.

-Drilling plans.

-Surface use plan.

-Evidence of bond coverage.

-Operator certification.

-Diagrams.

-Maps.

-Contingency plans.

The BLM needs this information to approve the individual operation.

Well Completion or Recompletion Report and Log (43 CFR 3162.4-1) Form 3160-4

Under 43 CFR 3162.4-1, the respondent must file with the BLM Form 3160-4, Well Completion or Re-completion Report and Log, to obtain approval of operations on BLM-managed lands. The BLM needs this information to approve the individual operation.

Specific information we request on Form 3160-4:

(Item 1) Identify the type of well and completion for field map purposes and royalty consideration. The BLM needs this information to identify the type of well and completion for field map purposes and royalty consideration for the individual operation.

(Items 2-3) Identify the operator, address, and telephone number. The BLM needs this information to identify the operator of the individual operation.

(Item 4) Identify surface and subsurface location of well for inspection and reservoir management purposes. The BLM needs this information to identify surface and subsurface location of well for inspection and reservoir management purposes for the individual operation.

(Item 5) Identify the lease serial number. The BLM needs this information to identify the lease serial number of the individual operation.

(Item 6) Identify the BIA identifier if the action is on Indian land. The BLM needs this information to identify if the individual operation is on Indian land.

(Item7) Identify the unit or CA agreement name and number. The BLM needs this information to identify if the individual operation is within a unit or CA agreement.

(Item 8) Identify the lease name and well number. The BLM needs this information to identify the lease name and well number of the individual operation.

(Item 9) Identify the API well number. The BLM needs this information to identify the API well number of the individual operation.

(Item 10) Identify the field and pool or exploratory. The BLM needs this information to identify the field and pool or exploratory of the individual operation.

(Item 11) Identify the section, township, range, and meridian (on block and survey or area). The BLM needs this information to identify the location of the individual operation.

(Item 12) Identify the county or parish. The BLM needs this information to identify the county or parish of the individual operation.

(Item 13) Identify the state. The BLM needs this information to identify the state of the individual operation.

(Item 14) Identify the date spudded. The BLM needs this information to identify the date the individual operation was spudded.

(Item 15) Identify the date T.D. reached. The BLM needs this information to identify the date T.D. was reached for the individual operation.

(Item 16) Identify the date completed. The BLM needs this information to identify the date the individual operation was completed.

(Item 17) Identify the elevations. The BLM needs this information to identify the elevations of the individual operation.

(Item 18) Identify the total depth. The BLM needs this information to identify the total depth of the individual operation.

(Item 19) Identify the plug back. The BLM needs this information to identify the plug back of the individual operation.

(Item 20) Identify the depth bridge plug set. The BLM needs this information to identify the depth bridge plug set for the individual operation.

(Item 21) Identify the type of electric and other mechanical logs run (submit copy of each). The BLM needs this information to identify the type of electric and other mechanical logs runs for the individual operation.

(Item 22) Identify whether the well cored, DST run, and directional survey (submit a copy of each report or analysis). The BLM needs this information to identify whether the well cored, DST run, and directional survey was completed for the individual operation.

(Item 23) Identify the casing and liner record. The BLM needs this information to identify the casing and liner record for the individual operation.

(Item 24) Identify the tubing record. The BLM needs this information to identify the tubing record for the individual operation.

(Item 25) Identify the producing intervals. The BLM needs this information to identify the producing intervals for the individual operation.

(Item 26) Identify the perforation record. The BLM needs this information to identify the perforation record for the individual operation.

(Item 27) Identify the acid, fracture, treatment, cement squeeze, etc. The BLM needs this information to identify the acid, fracture, treatment, cement squeeze, etc. for the individual operation.

(Item 28) Identify the production intervals. The BLM needs this information to identify the production intervals for the individual operation.

(Item 29) Identify the disposition of gas. The BLM needs this information to identify the disposition of gas for the individual operation.

(Item 30) Identify the summary of porous zones (include aquifers). The BLM needs this information to identify the summary of porous zones for the individual operation.

(Item 31) Identify the formation log markers. The BLM needs this information to identify the formation log markers for the individual operation.

(Item 32) Identify any additional remarks (including plugging procedures). The BLM needs this information to identify any additional remarks about the individual operation.

(Item 33) Identify the enclosed attachments with the application. The BLM needs this information to identify any enclosed attachments with the application concerning the individual operation.

Sundry Notices and Reports on Wells (43 CFR 3162.3-2) Form 3160-5

Under 43 CFR 3162.3-2, the respondent must file with the BLM Form 3160-5, Sundry Notices and Reports on Wells, and the required information under this subpart to obtain approval of operations on BLM-managed lands. The BLM needs this information to approve the application.

Specific information we request on Form 3160-5:

(Item 1) Identify the type of well. The BLM needs this information to identify the type of well for the individual operation.

(Items 2-3) Identify the name of the operator, address, and telephone number. The BLM needs this information to identify the operator of the individual operation.

(Item 4) Identify the location of well. The BLM needs this information to identify the location of the well for the individual operation.

(Item 5) Identify the lease serial number. The BLM needs this information to identify the lease serial number of the individual operation.

(Item 6) Identify the BIA identifier if the action is on Indian land. The BLM needs this information to identify if the individual operation is on Indian land.

(Item7) Identify the unit or CA agreement name and number. The BLM needs this information to identify if the individual operation is within a unit or CA agreement.

(Item 8) Identify the well name and number. The BLM needs this information to identify the well name and number of the individual operation.

(Item 9) Identify the API well number. The BLM needs this information to identify the API well number of the individual operation.

(Item 10) Identify the field and pool or exploratory area. The BLM needs this information to identify the field and pool or exploratory area of the individual operation.

(Item 11) Identify the county or parish. The BLM needs this information to identify the county or parish of the individual operation.

(Item 12) Identify the appropriate notice, report, or other data. The BLM needs this information to identify the appropriate notice, report, or other data on the individual operation.

Plan for Well Abandonment (43 CFR 3162.3-4)

An operator must have in place a plan for well abandonment for each newly completed or recompleted well in which oil or gas is not encountered in paying quantities or which, after being completed as a producing well, is demonstrated to the satisfaction of the BLM to be no longer capable of producing oil or gas in paying quantities.

Schematic / Facilities Diagrams (43 CFR 3162.4-1(a) and 3162.7-5(d)(1))

Under 43 CFR 3162.4-1(a), an operator must keep accurate and complete records with respect to all lease operations including but not limited to production facilities and equipment, drilling, producing, redrilling, deepening, repairing, plugging back, and abandonment operations, and other matters pertaining to operations. With respect to production facilities and equipment, the record shall include schematic diagrams as required by applicable orders and notices.

Under 43 CFR 3162.7-5(d)(1), facility diagrams are required for all facilities which are used in storing oil/condensate produced from, or allocated to, Federal or Indian lands. Facility diagrams shall be filed within 60 days after new measurement facilities are installed or existing facilities are modified or following the inclusion of the facility into a federally supervised unit or communitization agreement.

Drilling Tests, Logs, and Surveys (43 CFR 3162.4-2(a))

Under 43 CFR 3162.4-2(a), during the drilling and completion of a well, the operator must, when required by the BLM, conduct tests, run logs, and make other surveys reasonably necessary to determine the presence, quantity, and quality of oil, gas, other minerals, or the presence or quality of water; to determine the amount and/or direction of deviation of any well from the vertical; and to determine the relevant characteristics of the oil and gas reservoirs penetrated.

Disposal of Produced Water (43 CFR 3162.5-1(b), 3164.1, and Onshore Oil and Gas Order No. 7)

Under 43 CFR 3164.1, the BLM has the authority to issue Onshore Oil and Gas Orders and Notices to Lessees. Onshore Oil and Gas Order No. 7, Disposal of Produced Water, prohibits the disposal of produced water unless and until approval is obtained from the BLM. Operators are encouraged to contact the appropriate authorized officer before filing an application for disposal of produced water so that the operator may be apprised of any existing agreements outlining cooperative procedures between the Bureau of Land Management and either the State/Indian Tribe or the Environmental Protection Agency concerning Underground Injection Control permits for injection wells, and of any potentially significant adverse effects on surface and/or subsurface resources. The approval of the Environmental Protection Agency or a State/Tribe shall not be considered as granting approval to dispose of produced water from leased Federal or Indian lands until and unless BLM approval is obtained.

Report of Spills, Discharges, or Other Undesirable Events (43 CFR 3162.5-1(c))

Under 43 CFR 3162.5-1(c), each operator of a Federal or Indian lease must report all spills or leakages of oil, gas, produced water, toxic liquids, or waste materials, blowouts, fire, personal injuries, and fatalities.

Contingency Plan (43 CFR 3162.5-1(d))

Under 43 CFR 3162.5-1(d), when reasonably required by the BLM, an operator must submit a contingency plan describing procedures to be implemented to protect life, property, and the environment.

Direction Drilling (43 CFR 3162.5-2(b))

Under 43 CFR 3162.5-2(b), an operator must seek written approval from the BLM before conducting drilling operations in a manner so that the completed well does not deviate significantly from the vertical. Any well which so deviates without prior written approval must be reported promptly to the BLM. In these cases, a directional survey is required.

Well Markers (43 CFR 3162.6)

Under 43 CFR 3162.6, every well within a Federal or Indian lease or supervised agreement generally must have a well identification sign. Only when specifically approved by the BLM may the sign display only a unique well name and number. Otherwise, the sign must include the well number, the name of the operator, the lease serial number, and the surveyed location. All facilities at which Federal or Indian oil is stored must be clearly identified with a sign that contains the name of the operator, the lease serial number or communitization or unit agreement identification number, as appropriate, and in public land states, the quarter-quarter section, township, and range. All abandoned wells must be marked with a permanent monument. The requirement for a permanent monument may be waived in writing by the BLM.

Gas Flaring (43 CFR 3162.7-1(d), 3164.1, and Notice to Lessees 4A

Under 43 CFR 3164.1, the BLM has the authority to issue Onshore Oil and Gas Orders and Notices to Lessees. Notice to Lessees 4A, Royalty or Compensation for Oil and Gas Lost, provides that, in general, gas well gas may not be flared or vented, and oil well gas

oil well gas may not be vented or flared unless approved in writing by the BLM. The BLM may approve an application for the venting or flaring of oil well gas if justified either by the submittal of (1) an evaluation report supported by engineering, geologic, and economic data which demonstrates to the satisfaction of the Supervisor that the expenditures necessary to market or beneficially use such gas are not economically justified and that conservation of the gas, if required, would lead to the premature abandonment of recoverable oil reserves and ultimately to a greater loss of equivalent energy than would be recovered if the venting or flaring were permitted to continue or (2) an action plan that will eliminate venting or flaring of the gas within 1 year from the date of application.

Applications to flare gas must include all appropriate engineering, geologic, and economic data in support of the applicant's determination that conservation of the gas is not viable from an economic standpoint and, if approval is not granted to continue the venting or flaring of the gas, that it will result in the premature abandonment of oil production and/or the curtailment of lease development. The information provided must include the applicant's estimates of the volumes of oil and gas that would be produced to the economic limit if the application to vent or flare were approved and the volumes of the oil and gas that would be produced if the applicant was required to market or beneficially use the gas.

Records for Seals (43 CFR 3162.7-5(b))

Under 43 CFR 3162.7-5(b), each operator of a Federal or Indian lease must:

• For a minimum of 6 years, maintain a record of seal numbers used and document on which valves or connections they were used as well as when they were installed and removed. The site facility diagram(s) shall show which valves will be sealed in which position during both the production and sales phases of operation.

• With reasonable frequency, inspect all leases to determine production volumes and determine that the minimum site security standards are being met. The operator shall retain records of such inspections and measurements for 6 years from generation. Such records and measurements shall be available to the BLM or authorized representative upon request.

• Report theft or mishandling of oil from a Federal or Indian lease shall be reported to the authorized officer as soon as discovered, but not later than the next business day. Said report shall include an estimate of the volume of oil involved. Operators also are expected to report such thefts promptly to local law enforcement agencies and internal company security.

Site Security (43 CFR 3162.7-5(c))

Under 43 CFR 3162.7-5(c), site security plans are required for all facilities that are subject to the regulations at 43 CFR part 3160. At an operator’s option, a single plan may include all of the operator’s leases, unit and communitized areas, within a single BLM district, provided the plan clearly identifies each lease, unit, or communitized area included within the scope of the plan and the extent to which the plan is applicable to each lease, unit, or communitized area so identified. The operator must retain the plan but notify the BLM of its completion and which leases, unit and communitized areas are involved. Such notification must include the location and normal business hours of the office where the plan will be maintained. Upon request, all plans must be made available to the BLM. The plan must include the frequency and method of the operator’s inspection and production volume recordation. The BLM may, upon examination, require adjustment of the method or frequency of inspection.

Prepare Run Tickets (43 CFR 3162.7-2, 3164.1, and Onshore Order No. 4

Under 43 CFR 3164.1, the BLM has the authority to issue Onshore Oil and Gas Orders and Notices to Lessees. Onshore Oil and Gas Order No. 4, Measurement of Oil, establishes requirements and minimum standards for the measurement of oil, and provides standard operating practices for lease oil storage and handling facilities, by the methods authorized in 43 CFR 3162.7-2, i.e., measurement by tank gauging, positive displacement metering, or other methods acceptable to the authorized officer. The Onshore Order also establishes abatement periods for corrective action when noncompliance with the minimum standards is detected. Proper reports of oil measurement ensure that the Federal Government and Indian mineral owners receive the royalties due, as specified in the governing oil and gas leases. The information required under Onshore Order No. 4 includes test data, meter reports, charts/recordings, and similar records.

Relief, Conflicts, and Appeals 43 CFR Subpart 3165

Under 43 CFR 3165.1, an application for relief from either the operating or the producing requirements of a lease, or both, must be filed with the BLM, and shall include a full statement of the circumstances that render such relief necessary. An application for a suspension or operations or production, or both, must be filed with the BLM before the expiration date of the lease; must be executed by all operating rights owners or, in the case of a Federal unit approved under 43 CFR part 3180, by the unit operator on behalf of the committed tracts or by all operating rights owners of such tracts; and must include a full statement of the circumstances that make such relief necessary.

Under 43 CFR 3165.3(b), any adversely affected party may request administrative review of a notice of violation or assessment or an instruction, order, or decision of the BLM issued under the regulations in 43 CFR part 3160. Such a request may be submitted to the appropriate State Director, either with or without an oral presentation. Such request, including all supporting documentation, must be filed in writing with the appropriate State Director within 20 business days of the date of receipt of the notice of violation or assessment or an instruction, order, or decision.

3. Describe whether, and to what extent, the collection of information involves the use of automated, electronic, mechanical, or other technological techniques or other forms of information technology (e.g., permitting electronic submission of responses), and the basis for the decision for adopting this means of collection. Also describe any consideration of using information technology to reduce burden [and specifically how this collection meets GPEA requirements.].

In accordance with the Government Paperwork Elimination Act (GPEA), the public can fill out and download forms. They cannot submit the forms to BLM electronically at this time.

4. Describe efforts to identify duplication. Show specifically why any similar information already available cannot be used or modified for use for the purposes described in Item 2 above.

No duplication of information occurs in the information we collect. The requested information is unique to the operator/operating rights owner and the lease and is not available from any other data source. No similar information is available or able to be modified. The information is required to receive a benefit.

5. If the collection of information impacts small businesses or other small entities describe any methods used to minimize burden.

The BLM is not required to collection information on whether the respondents qualify as small businesses or small entities. Based on the previous submission, consultation with industry professionals, and agency research, the BLM estimates that 16,293 respondents may qualify as a small business. The information we require from all respondents is limited to the minimum necessary to authorize and regulate oil and gas operations on public lands.

6. Describe the consequence to the Federal program or policy activities if the collection is not conducted or is conducted less frequently, as well as any technical or legal obstacles to reducing the burden.

If we did not collect the information, or collected it less frequently, oil and gas leasing activities and operations could not occur on Federal or Indian leases in compliance with pertinent statutes.

7. Explain any special circumstances that would cause an information collection to be conducted in a manner:

* requiring respondents to report information to the agency more often than quarterly;

* requiring respondents to prepare a written response to a collection of information in fewer than 30 days after receipt of it;

* requiring respondents to submit more than an original and two copies of any document;

* requiring respondents to retain records, other than health, medical, government contract, grant-in-aid, or tax records, for more than three years;

* in connection with a statistical survey, that is not designed to produce valid and reliable results that can be generalized to the universe of study;

* requiring the use of a statistical data classification that has not been reviewed and approved by OMB;

* that includes a pledge of confidentiality that is not supported by authority established in statute or regulation, that is not supported by disclosure and data security policies that are consistent with the pledge, or which unnecessarily impedes sharing of data with other agencies for compatible confidential use; or

* requiring respondents to submit proprietary trade secrets, or other confidential information unless the agency can demonstrate that it has instituted procedures to protect the information's confidentiality to the extent permitted by law.

There are no special circumstances that require the collection to be conducted in a manner inconsistent with the guidelines in 5 CFR 1320.5.

8. If applicable, provide a copy and identify the date and page number of publication in the Federal Register of the agency's notice, required by 5 CFR 1320.8(d), soliciting comments on the information collection prior to submission to OMB. Summarize public comments received in response to that notice [and in response to the PRA statement associated with the collection over the past three years] and describe actions taken by the agency in response to these comments. Specifically address comments received on cost and hour burden.

Describe efforts to consult with persons outside the agency to obtain their views on the availability of data, frequency of collection, the clarity of instructions and recordkeeping, disclosure, or reporting format (if any), and on the data elements to be recorded, disclosed, or reported. [Please list the names, titles, addresses, and phone numbers of persons contacted.]

Consultation with representatives of those from whom information is to be obtained or those who must compile records should occur at least once every 3 years — even if the collection of information activity is the same as in prior periods. There may be circumstances that may preclude consultation in a specific situation. These circumstances should be explained.

As required in 5 CFR 1320.8(d), the BLM published the 60-day notice in the Federal Register on February 3, 2010 (75 FR 5624) soliciting comments from the public and other interested parties. The comment period closed on April 5, 2010. The BLM did not receive any comments from the public in response to this notice.

During the approval period, we consulted with the following respondents to solicit comments on the burden hour and cost estimates, availability of data, frequency of collection, and clarity of instructions:

Mark Goldberg

Land Administrator

Davis Petroleum Corp.

555 17the St., Suite 1400

Denver, CO 80203

303-629-8902

Mr. Franklin C. Snyder

Manager, Onshore Exploration

ConocoPhillips Alaska Inc.

P.O. Box 100360

Anchorage, Alaska 99510

(907) 265-1138

Mike Dimond

Resource Administrator

Benson Montin-Greer Drilling Corp.

4900 College Blvd.

Farmington, NM 87402

505-325-8874

Genny Van Ness

Operations Manager

J-W Operating Co.

15508 Wright Brothers Dr.

Addison, TX 75001

972-233-8191

All the respondents surveyed responded that this information collection is straightforward and clear as to instructions and reasonable as to information requirements. None expressed complaints or problems as to data elements required, frequency, or format.

9. Explain any decision to provide any payment or gift to respondents, other than remuneration of contractors and grantees.

We do not provide payments or gifts to the respondents.

10. Describe any assurance of confidentiality provided to respondents and the basis for the assurance in statute, regulation, or agency policy.

We protect the respondent’s confidentiality to the extent consistent with the Freedom of Information Act (5 U.S.C. 552).

Under the privacy provisions of the E-Government Act of 2002, individuals/respondents were informed as to whether or not providing the information is mandatory to obtain a benefit.

11. Provide additional justification for any questions of a sensitive nature, such as sexual behavior and attitudes, religious beliefs, or other matters that are commonly considered private. The justification should include the reasons why the agency considers the questions necessary, the specific uses to be made of the information, the explanation to be given to persons from when the information is requested, and any steps to be taken to obtain their consent.

We do not require respondents to answer questions of a sensitive nature.

12. Provide estimates of the hour burden of the collection of information. The statement should:

Indicate the number of respondents, frequency of response, annual hour burden, and an explanation of how the burden was estimated. Unless directed to do so, agencies should not conduct special surveys to obtain information on which to base hour burden estimates. Consultation with a sample (fewer than 10) of potential respondents is desirable. If the hour burden on respondents is expected to vary widely because of differences in activity, size, or complexity, show the range of estimated hour burden, and explain the reasons for the variance. Generally, estimates should not include burden hours for customary and usual business practices.

If this request for approval covers more than one form, provide separate hour burden estimates for each form and aggregate the hour burdens.

Provide estimates of annualized cost to respondents for the hour burdens for collections of information, identifying and using appropriate wage rate categories. The cost of contracting out or paying outside parties for information collection activities should not be included here. Instead, this cost should be included in Item 14.

As shown at Table 12-1, below, the weighted average respondent hourly cost is $58.92. This cost was determined using national Bureau of Labor Statistics data at: http://www.bls.gov/oes/current/oes_nat.htm. The benefits multiplier of 1.4 is supported by information in Table A of Bureau of Labor Statistics News Release USDL 10-0774, June 9, 2010, at http://www.bls.gov/news.release/ecec.nr0.htm.

Table 12-1 — Estimated Weighted Average Hourly Costs

A. Position	B. Mean Hourly Pay Rate	C. Hourly Rate with Benefits (B x 1.4)	D. Percent of Collection Time	E. Weighted Average Hourly Cost (C x D)
General Office Clerk (43-9061)	$13.32	$18.65	10%	$1.87
Engineer (17-2199)	$43.56	$60.98	80%	$48.78
Engineering Manager (11-9041)	$59.04	$82.66	10%	$8.27
Totals			100%	$58.92

Estimated Hour and Cost Burdens: Hour and cost burdens to respondents include time spent for researching, preparing, and submitting information. The weighted average hourly wage associated with these information collections is shown at Table 12-1, above. The BLM’s estimate of the time it takes a respondent to supply the information was verified by consultations with several respondents (see Item 8, above).

The frequency of response for each of the information collections is “on occasion.” As shown below, the total number of responses is 232,180, the total hour burden is 895,640 hours, and the dollar equivalent of the hour burden is $52,771,108.

Table 12-2 — Estimated Hour and Cost Burdens

A. Type of Response	B. Number of Responses	C. Hours Per Response	D. Total Hours	E. Total Wage Cost (D x $58.92)
Application for Permit to Drill or Re-enter (43 CFR 3162.3-1) Form 3160-3	5,000	80	400,000	$23,568,000
Well Completion or Recompletion Report and Log (43 CFR 3162.4-1) Form 3160-4	5,000	4	20,000	$1,178,400
Sundry Notices and Reports on Wells (43 CFR 3162.3-2) Form 3160-5	34,000	8	272,000	$16.026,240
Plan for Well Abandonment (43 CFR 3162.3-4)	1,500	8	12,000	$707,040
Schematic / Facility Diagrams (43 CFR 3162.4-1(a) and 3162.7-5(d)(1))	1,000	8	8,000	$471,360
Drilling Tests, Logs, and Surveys (43 CFR 3162.4-2(a))	100	8	800	$47,136
Disposal of Produced Water (43 CFR 3162.5-1(b), 3164.1, and Onshore Oil and Gas Order No. 7)	1,500	8	12,000	$707,040
Report of Spills, Discharges, or Other Undesirable Events (43 CFR 3162.5-1(c))	200	8	1,600	$94,272
Contingency Plan (43 CFR 3162.5-1(d))	50	32	1,600	$94,272
Direction Drilling (43 CFR 3162.5-2(b))	165	8	1,320	$77,774.40
Well Markers (43 CFR 3162.6)	1,000	8	8,000	$471,360
Gas Flaring (43 CFR 3162.7-1(d), 3164.1, and Notice to Lessees 4A)	100	16	1,600	$94,272
Records for Seals (43 CFR 3162.7-5(b))	90,000	0.75	67,500	$3,977,100
Site Security (43 CFR 3162.7-5(c))	2,415	8	19,320	$1,138,334
Prepare Run Tickets (43 CFR 3162.7-2, 3164.1, and Onshore Oil and Gas Order No. 4)	90,000	0.75	67,500	$3,977,100
Application for Suspension or Other Relief (43 CFR 3165.1)	100	16	1,600	$94,272
State Director Review (43 CFR 3165.3(b))	50	16	800	$47,136
Totals	232,180		895,640	$52,771,108

13. Provide an estimate of the total annual [non-hour] cost burden to respondents or recordkeepers resulting from the collection of information. (Do not include the cost of any hour burden shown in Items 12 and 14).

The cost estimate should be split into two components: (a) a total capital and start-up cost component (annualized over its expected useful life) and (b) a total operation and maintenance and purchase of services component. The estimates should take into account costs associated with generating, maintaining, and disclosing or providing the information [including filing fees paid]. Include descriptions of methods used to estimate major cost factors including system and technology acquisition, expected useful life of capital equipment, the discount rate(s), and the time period over which costs will be incurred. Capital and start-up costs include, among other items, preparations for collecting information such as purchasing computers and software; monitoring, sampling, drilling and testing equipment; and record storage facilities.

If cost estimates are expected to vary widely, agencies should present ranges of cost burdens and explain the reasons for the variance. The cost of purchasing or contracting out information collection services should be a part of this cost burden estimate. In developing cost burden estimates, agencies may consult with a sample of respondents (fewer than 10), utilize the 60-day pre-OMB submission public comment process and use existing economic or regulatory impact analysis associated with the rulemaking containing the information collection, as appropriate.

Generally, estimates should not include purchases of equipment or services, or portions thereof, made: (1) prior to October 1, 1995, (2) to achieve regulatory compliance with requirements not associated with the information collection, (3) for reasons other than to provide information or keep records for the Government, or (4) as part of customary and usual business or private practices.

There are no capital and start-up costs involved with this information collection -- respondents are not required to purchase additional computer hardware or software to comply with these information collection requirements. The Fiscal Year 2010 Interior appropriations law (Public

Law No. 111-88) directs the BLM to charge a $6,500 processing fee for Form 3160-3, Application for Permit to Drill or Re-Enter. We estimate that 5,000 of these applications are filed annually. The total estimated non-hour cost burden is $32,500,000.

14. Provide estimates of annualized cost to the Federal Government. Also, provide a description of the method used to estimate cost, which should include quantification of hours, operational expenses (such as equipment, overhead, printing, and support staff), and any other expense that would not have been incurred without this collection of information. Agencies also may aggregate cost estimates from Items 12, 13, and 14 in a single table.

Table 14-1 — Weighted Average Federal Wage Cost

The hourly cost to the Federal Government is based on the U.S. Office of Personnel Management Salary Table 2010-RUS located at http://www.opm.gov/oca/10tables/html/RUS_h.asp. The benefits multiplier of 1.5 is implied by information in Table A of Bureau of Labor Statistics News Release USDL 10-0774, June 9, 2010, at http://www.bls.gov/news.release/ecec.nr0.htm.

Position	Pay Grade	Hourly Pay Rate ($/hour)	Hourly Rate with Benefits (x 1.5)	Percent of Collection Time	Weighted Avg. ($/hour)
Clerical	GS-5, step 5	$17.00	$25.50	10%	$2.55
Professional	GS-9, step 5	$25.77	$38.66	80%	$30.93
Managerial	GS-13, step 5	$44.43	$66.65	10%	$6.67
Weighted Average Hourly Pay Rate ($/hour): $40.15

The Table below shows the annualized Federal costs for each collection. The estimated time spent to process the information collections is based on the BLM's experience. The weighted average hourly wage associated with these information collections is shown at Table 14-1, above.

Table 14-2 — Estimated Annual Cost to the Government

A. Type of Response	B. Number of Responses	C. Hours Per Response	D. Total Hours (B x C)	E. Total Wage Cost (D x $40.15)
Application for Permit to Drill or Re-enter (43 CFR 3162.3-1) Form 3160-3	5,000	16	80,000	$3,212,000
Well Completion or Recompletion Report and Log (43 CFR 3162.4-1) Form 3160-4	5,000	1	5,000	$200,750
Sundry Notices and Reports on Wells (43 CFR 3162.3-2) Form 3160-5	34,000	1	34,000	$1,365,100
Plan for Well Abandonment (43 CFR 3162.3-4)	1,500	1	1,500	$60,225
Schematic / Facility Diagrams (43 CFR 3162.4-1(a) and 3162.7-5(d)(1))	1,000	3	3,000	$120,450
Drilling Tests, Logs, and Surveys (43 CFR 3162.4-2(a))	100	1	100	$4,015
Disposal of Produced Water (43 CFR 3162.5-1(b), 3164.1, and Onshore Oil and Gas Order No. 7)	1,500	1	1,500	$60,225
Report of Spills, Discharges, or Other Undesirable Events (43 CFR 3162.5-1(c))	200	1	200	$8,030
Contingency Plan (43 CFR 3162.5-1(d))	50	2	100	$4,015
Direction Drilling (43 CFR 3162.5-2(b))	165	1	165	$6,625
Well Markers (43 CFR 3162.6)	1,000	8	8,000	$321,200
Gas Flaring (43 CFR 3162.7-1(d), 3164.1, and Notice to Lessees 4A)	100	2	200	$8,030
Records for Seals (43 CFR 3162.7-5(b))	90,000	0.25	22,500	$903,375
Site Security (43 CFR 3162.7-5(c))	2,415	1	2,415	$96,962
Prepare Run Tickets (43 CFR 3162.7-2, 3164.1, and Onshore Oil and Gas Order No. 4)	90,000	0.25	22,500	$903,375
Application for Suspension or Other Relief (43 CFR 3165.1)	100	4	400	$16,060
State Director Review (43 CFR 3165.3(b))	50	16	800	$32,120
Totals	232,180		182,380	$7,322,557

15. Explain the reasons for any program changes or adjustments.

Program changes:

• The 2007 renewal request mistakenly analyzed the Well Spacing Program and Drilling Plans collections separately from the Application for Permit to Drill or Re-enter. All 3 collections are authorized by the same regulation (43 CFR 3162.3-1). We therefore removed the Well Spacing Program and Drilling Plans from this ICR, and included the burdens of all 3 collections in our analysis of the burdens of the Application for Permit to Drill or Re-enter. This program change resulted in an increase in the estimated number of hours per response (from 8 to 80 hours annually) for Application for Permit to Drill or Re-enter.

• Congress has enacted legislation (Public Law Nos. 111-88 and 112-10), directing the BLM to charge a $6,500 processing fee for each Application for Permit to Drill or Re-enter (Form 3160-3). This program change resulted in an increase in the estimated non-hour cost to respondents from $0 to $32,500,000 annually.

• The 2007 renewal request mistakenly analyzed the collection called Plug and Abandon for Water Injection separately from the collection called Plug and Abandon for Water for Water Source. Both of these collections are authorized by the same regulation (43 CFR 3162.3-4). We therefore removed Plug and Abandon for Water Injection from this ICR, and included the burdens of both collections under the heading, “Plan for Well Abandonment (43 CFR 3162.3-4).” This program change resulted in an increase in the estimated number of responses (from 1,200 to 1,500 annually) and an increase in the estimated number of burden hours (from 9,600 hours to 12,000 hours annually).

• The 2007 renewal request mistakenly included an analysis of the information collection requirements at 43 CFR 3162.4-3 (Monthly Report of Operations). The Bureau of Ocean Energy, Regulation and Enforcement (formerly the Minerals Management Service) now collects information from respondents either on that Bureau’s Form 3160, Monthly Report of Operations, or that Bureau’s Form 4054, Oil & Gas Operations Report. Because the Bureau of Land Management no longer collects the information, the information collection requirements at 43 CFR 3162.4-3, and associated burdens, have been removed from this request for renewal.

• The 2007 renewal request mistakenly included a separate analysis of the information collection requirements at 43 CFR 3162.7-1 for Approval and Reporting of Oil in Pits. These requirements are included in the Sundry Notices and Reports on Wells, Form 3160-5, under 43 CFR 3162.4-1, and their burdens are fully analyzed under that heading.

Adjustments:

• We adjusted the estimated number of responses annually for the following collections:

Schematic / Facility Diagrams (43 CFR 3162.4-1(a) and 3162.7-5(d)(1)) — decreased from 2,350 to 1,000;

Drilling Tests, Logs, and Surveys (43 CFR 3162.4-2(a)) — decreased from 330 to 100; and

Well Markers (43 CFR 3162.6) — increased from 300 to 1,000.

• We adjusted the estimated number of burden hours per response (and therefore the total estimated burden hours) for the following collections:

Records for Seals (43 CFR 3162.7-5(b)) — decreased hours per response from 8 hours to 45 minutes, and decreased total burden hours from 720,000 hours to 67,500 hours; and

Prepare Run Tickets (43 CFR 3162.7-2, 3164.1, and Onshore Oil and Gas Order No. 4) — decreased hours per response from 8 hours to 45 minutes, and decreased total burden hours from 720,000 hours to 67,500 hours.

• We adjusted both the estimated number of responses annually, and the estimated number of burden hours per response (and therefore the total estimated burden hours) for the following collections:

Gas Flaring (43 CFR 3162.7-1(d), 3164.1, and Notice to Lessees 4A) — decreased the number of responses from 400 to 100. Increased the number of burden hours per response from 8 to 16, and decreased the total burden hours from 3,200 to 1,600.

State Director Review (43 CFR 3165.3(b)) — increased the number of responses from 10 to 50, increased the number of burden hours per response from 8 to 16, and increased the total burden hours from 80 to 800.

16. For collections of information whose results will be published, outline plans for tabulation and publication. Address any complex analytical techniques that will be used. Provide the time schedule for the entire project, including beginning and ending dates of the collection of information, completion of report, publication dates, and other actions.

The BLM will not publish the results of this collection.

17. If seeking approval to not display the expiration date for OMB approval of the information collection, explain the reasons that display would be inappropriate.

The BLM will display the expiration date of the OMB approval on the forms included in this information collection.

18. Explain each exception to the certification statement identified in “Certification for Paperwork Reduction Act Submissions.”

There are no exceptions to the certification statement.