1010-0136 30-day FR notice

0136 30-day 9-3-10.pdf

30 CFR Parts 202, 204, 206, and 210, Federal Oil and Gas Valuation

1010-0136 30-day FR notice

OMB: 1010-0136

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54164

Federal Register / Vol. 75, No. 171 / Friday, September 3, 2010 / Notices

The Secretary of the Interior
(Secretary), after consultation with the
General Services Administration, has
reestablished the charter for the Lake
Champlain Sea Lamprey Control
Alternatives Workgroup (Workgroup)
for 2 years. The Workgroup provides an
opportunity for stakeholders to give
policy and technical advice on efforts to
develop and implement sea lamprey
control techniques alternative to
lampricides in Lake Champlain.
FOR FURTHER INFORMATION CONTACT:
Dave Tilton, Fish and Wildlife Service,
Western New England Complex, 11
Lincoln Street, Essex Junction, VT
05452; 802–872–0629, extension 12.
SUPPLEMENTARY INFORMATION: The
Workgroup conducts its operations in
accordance with the provisions of the
Federal Advisory Committee Act (5
U.S.C. Appendix). It reports to the
Secretary through the Fish and Wildlife
Service and Lake Champlain Fish and
Wildlife Management Cooperative and
functions solely as an advisory body.
The Workgroup provides
recommendations and advice to the
Cooperative on:
• Feasible and appropriate sea
lamprey management methods
alternative to lampricides;
• Funding priorities for research and/
or demonstration projects;
• Facilitating coordinated research
between Lake Champlain and the Great
Lakes; and
• Development of requests for
proposals, project proposals, and
research efforts affecting the Lake
Champlain Basin.
The Workgroup consists of no more
than 25 members and alternates
appointed by the Secretary for 3-year
terms. Up to five of the members may
be special Government employees,
selected for their scientific expertise. In
addition, up to 20 members of the
Workgroup will represent those with an
interest in and a commitment to the
Lake Champlain Basin’s natural
resources and its environmental quality.
The States of Vermont and New York
will each have a representative on the
Workgroup. Other members will be
selected from, but not limited to, the
following interest groups:
(1) Recreational and charter
fishermen, (2) sportfishing
organizations, (3) environmental
organizations, (4) general public
residing within the Lake Champlain
area, and (5) academic research and
educational personnel. These members
must be senior-level representatives
with knowledge about fishery
restoration objectives within the Lake
Champlain Basin, including sea lamprey

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control, and must have the ability to
represent their designated
constituencies.
We have filed a copy of the Working
Group’s charter with the Committee
Management Secretariat, General
Services Administration; Committee on
Environment and Public Works, United
States Senate; Committee on Natural
Resources, United States House of
Representatives; and the Library of
Congress.
The Certification for reestablishment
is published below.
Certification
I hereby certify that the Lake
Champlain Sea Lamprey Control
Alternatives Workgroup is necessary
and is in the public interest in
connection with the performance of
duties pursuant to the Department of the
Interior’s authority under the Lake
Champlain Basin Program (33 U.S.C.
1270) and the Anadromous Fish
Conservation Act (16 U.S.C. 757a–757g).
Dated: August 19, 2010.
Ken Salazar,
Secretary of the Interior.
[FR Doc. 2010–22059 Filed 9–2–10; 8:45 am]
BILLING CODE 4310–55–P

DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management,
Regulation, and Enforcement
[Docket No. MMS–2008–MRM–0031]

Agency Information Collection
Activities: Submitted for Office of
Management and Budget Review;
Comment Request
Bureau of Ocean Energy
Management, Regulation, and
Enforcement (BOEM), Interior.
ACTION: Notice of an extension of a
currently approved information
collection (OMB Control Number 1010–
0136).
AGENCY:

To comply with the
Paperwork Reduction Act of 1995
(PRA), we are notifying the public that
we have submitted to the Office of
Management and Budget (OMB) an
information collection request (ICR) to
renew approval of the paperwork
requirements in 30 CFR parts 202, 204,
206, and 210. This notice also provides
the public a second opportunity to
comment on the paperwork burden of
these regulatory requirements. We
consolidated this ICR and ICR 1010–
0090, Stripper Royalty Rate Reduction
Notification, in order to facilitate
program wide review of Federal oil and
gas valuation. The new title of this ICR

SUMMARY:

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is ‘‘30 CFR Parts 202, 204, 206, and 210,
Federal Oil and Gas Valuation.’’
DATES: Submit written comments on or
before October 4, 2010.
ADDRESSES: Submit written comments
by either FAX (202) 395–6566 or e-mail
([email protected]) directly to
the Office of Information and Regulatory
Affairs, OMB, Attention: Desk Officer
for the Department of the Interior (OMB
Control Number 1010–0136).
Please also submit a copy of your
comments on this ICR to BOEM by any
of the following methods. Please use
‘‘ICR 1010–0136’’ as an identifier in your
comment.
• Electronically go to http://
www.regulations.gov. In the entry titled
‘‘Enter Keyword or ID,’’ enter MMS–
2008–MRM–0031, and then click
search. Follow the instructions to
submit public comments. The BOEM
will post all comments.
• Mail comments to Hyla Hurst,
Regulatory Specialist, Bureau of Ocean
Energy Management, Regulation, and
Enforcement, Minerals Revenue
Management, P.O. Box 25165, MS
61013B, Denver, Colorado 80225. Please
reference ICR 1010–0136 in your
comments.
• Hand-carry comments or use an
overnight courier service. Our courier
address is Building 85, Room A–614,
Denver Federal Center, West 6th Ave.
and Kipling St., Denver, Colorado
80225. Please reference ICR 1010–0136
in your comments.
FOR FURTHER INFORMATION CONTACT: Hyla
Hurst, telephone (303) 231–3495, or
e-mail [email protected]. You may
also contact Hyla Hurst to obtain copies,
at no cost, of (1) the ICR, (2) any
associated forms, and (3) the regulations
that require the subject collection of
information.
SUPPLEMENTARY INFORMATION:
Title: 30 CFR Parts 202, 204, 206, and
210, Federal Oil and Gas Valuation.
OMB Control Number: 1010–0136.
Bureau Form Number: Forms MMS–
4377 and MMS–4393.
Abstract: The Secretary of the U.S.
Department of the Interior is responsible
for mineral resource development on
Federal and Indian lands and the Outer
Continental Shelf (OCS). The Secretary
is required by various laws to manage
mineral resource production from
Federal and Indian lands and the OCS,
collect the royalties and other mineral
revenues due, and distribute the funds
collected 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.boemre.gov/Laws_R_D/
PublicLawsAMR.htm.

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Federal Register / Vol. 75, No. 171 / Friday, September 3, 2010 / Notices
I. General Information
When a company or an individual
enters into a lease to explore, develop,
produce, and dispose of minerals from
Federal or Indian lands, that company
or individual agrees to pay the lessor a
share in an amount or value of
production from the leased lands. The
lessee is required to report various kinds
of information to the lessor relative to
the disposition of the leased minerals.
Such information is generally available
within the records of the lessee or others
involved in developing, transporting,
processing, purchasing, or selling of
such minerals.
II. Information Collections
We use the information collected in
this ICR to ensure that royalty is
accurately valued and appropriately
paid on oil and gas produced from
Federal onshore and offshore leases.
Please refer to the burden hour table for
all reporting requirements and
associated burden hours. All data
submitted is subject to subsequent audit
and adjustment.
A. Federal Oil and Gas Valuation
Regulations
The valuation regulations at 30 CFR
part 206, subparts C and D, mandate
that companies collect and/or submit
information used to value their Federal
oil and gas, including (1) transportation
and processing allowances; and (2)
regulatory allowance limitation
information. Companies report certain
data on Form MMS–2014, Report of
Sales and Royalty Remittance (OMB
Control Number 1010–0139). The
information requested is the minimum
necessary to carry out our mission and
places the least possible burden on
respondents. If BOEM does not collect
this information, both Federal and state
governments may incur a loss of
royalties.

Transportation and Processing
Regulatory Allowance Limits
Lessees may deduct the reasonable,
actual costs of transportation and
processing from Federal royalties. These
allowances are reported on Form MMS–
2014.
Request To Exceed Regulatory
Allowance Limitation, Form MMS–4393
Lessees may request to exceed
regulatory limitations. Upon proper
application from the lessee, BOEM may
approve an oil or gas transportation
allowance in excess of 50 percent or a
gas processing allowance in excess of
662⁄3; percent on Federal leases. Form
MMS–4393 is used for both Federal and
Indian leases to request to exceed
allowance limitations. This ICR covers
only Federal leases; therefore we have
not included burden hours for Form
MMS–4393 for Indian leases in this ICR.
Burden hours for Form MMS–4393 for
Indian leases are included in OMB
Control Number 1010–0103.
B. Accounting and Auditing Relief for
Marginal Properties
In 2004, we amended our regulations
to comply with section 7 of the Federal
Oil and Gas Royalty Simplification and
Fairness Act of 1996. The regulations
provide guidance for lessees and
designees seeking accounting and
auditing relief for qualifying Federal
marginal properties. Under the
regulations, both BOEM and the state
concerned must approve any relief
granted for a marginal property.
C. Stripper Oil Royalty Rate Reduction
Program
Under 43 CFR 3103.4–2, the Stripper
Oil Royalty Rate Reduction Program
(Stripper Oil Program) was established
by the Bureau of Land Management
(BLM), the surface management agency
for Federal onshore leases. The Minerals
Revenue Management (MRM), who
administered the Stripper Oil Program
for BLM, approved royalty rate
reductions for operators of stripper oil

54165

properties for applicable sales periods
from October 1, 1992, through January
31, 2006. Effective February 1, 2006, the
reduced royalty rates under this
program were terminated. This change
is not currently reflected in the CFR;
however, BLM is processing a final rule
to remove this citation from the
regulations.
For production through January 31,
2006, reporters used Form MMS–4377,
Stripper Royalty Rate Reduction
Notification, to notify MRM of royalty
rate changes. Although the royalty rate
reductions were terminated, MRM
continues to verify previously submitted
notifications and may require the
operator to submit an amended Form
MMS–4377.
III. OMB Approval
We are requesting OMB approval to
continue to collect this information. Not
collecting this information would limit
the Secretary’s ability to discharge his/
her duties and may also result in loss of
royalty payments. Proprietary
information submitted to BOEM under
this collection is protected, and no
items of a sensitive nature are included
in this information collection.
For information collections relating to
valuation requirements, responses are
mandatory. For the remaining
information collections in this ICR,
responses are required to obtain a
benefit.
Frequency: Annually and on occasion.
Estimated Number and Description of
Respondents: 120 Federal lessees/
designees and 7 states for Federal oil
and gas valuation; and 150 lessees/
lessors for the Stripper Oil Program.
Estimated Annual Reporting and
Recordkeeping ‘‘Hour’’ Burden: 9,378
hours.
We have not included in our
estimates certain requirements
performed in the normal course of
business and considered usual and
customary. The following chart shows
the estimated burden hours by CFR
section and paragraph:

RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS

srobinson on DSKHWCL6B1PROD with NOTICES

30 CFR 202, 204, 206, and
210

Reporting and recordkeeping requirement

Hour burden

Average number
of annual
responses

Annual burden
hours

PART 202—ROYALTIES
Subpart C—Federal and Indian Oil
202.101 ...............................

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

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Federal Register / Vol. 75, No. 171 / Friday, September 3, 2010 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued

30 CFR 202, 204, 206, and
210

Reporting and recordkeeping requirement

Average number
of annual
responses

Hour burden

Annual burden
hours

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

202.152(a)(1) If you are responsible for reporting production or royalties you must:
(i) Report gas volumes and British thermal unit (Btu)
heating values, if applicable, under the same degree
of water saturation;
(ii) Report gas volumes in units of 1,000 cubic feet
(mcf); and
(iii) Report gas volumes and Btu heating value at a
standard pressure base of 14.73 pounds per square
inch absolute (psia) and a standard temperature
base of 60 °F * * *.
(b) Residue gas and gas plant product volumes shall
be reported as specified in this paragraph * * *.

Burden covered under OMB Control Number 1010–
0139.

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PART 204—ALTERNATIVES FOR MARGINAL PROPERTIES
Subpart C—Accounting and Auditing Relief
204.202(b)(1) ......................

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

204.202(b)(2) and (b)(3) .....

204.202(b)(2) Submit your royalty report and payment
* * * by the end of February of the year following
the calendar year for which you reported annually
* * *. If you have an estimated payment on file, you
must submit your royalty report and payment by the
end of March of the year following the calendar year
for which you reported annually;
(3) Use the sales month prior to the month that you
submit your annual report and payment * * * for the
entire previous calendar year’s production for which
you are paying annually * * *.

Burden covered under OMB Control Number 1010–
0139.

204.202(b)(4), (b)(5), (c),
(d)(1), (d)(2), (e)(1), and
(e)(2).

204.202(b) To use the cumulative royalty reports and
payments relief option, you must * * *
(4) Report one line of cumulative royalty information on
Form MMS–2014 for the calendar year * * * and
(5) Report allowances on Form MMS–2014 on the
same annual basis as the royalties for your marginal
property production.
(c) If you do not pay your royalty by the date due in
paragraph (b) of this section, you will owe late payment interest * * * from the date your payment was
due under this section until the date MMS receives it
* * *.
(d) If you take relief you are not qualified for, you may
be liable for civil penalties.
Also you must:
(1) Pay MMS late payment interest determined under
30 CFR 218.54 * * *
(2) Amend your Form MMS–2014 * * *
(e) If you dispose of your ownership interest in a marginal property for which you have taken relief * * *
you must:
(1) Report and pay royalties for the portion of the calendar year for which you had an ownership interest;
and
(2) Make the report and payment by the end of the
month after you dispose of the ownership interest in
the marginal property. If you do not report and pay
timely, you will owe interest * * * from the date the
payment was due * * *.

Burden covered under OMB Control Number 1010–
0139.

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54167

Federal Register / Vol. 75, No. 171 / Friday, September 3, 2010 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Average number
of annual
responses

30 CFR 202, 204, 206, and
210

Reporting and recordkeeping requirement

204.203(b), 204.205(a) and
(b), and 204.206(a)(3)(i)
and (b)(1).

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

200

1

200

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

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

40

7

280

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

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

6

1

6

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

204.210(c) * * * the volumes on which you report and
pay royalty * * * must be amended to reflect all volumes produced on or allocated to your lease under
the nonqualifying agreement as modified by BLM
* * *. Report and pay royalties for your production
using the procedures in § 204.202(b).
(d) If you owe additional royalties based on the retroactive agreement approval and do not pay your royalty by the date due in § 204.202(b), you will owe
late payment interest determined under 30 CFR
218.54 from the date your payment was due under
§ 204.202(b)(2) until the date MMS receives it.

Burden covered under OMB Control Number 1010–
0139.

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

204.214(b) If you pay minimum royalty on production
from a marginal property during a calendar year for
which you are taking cumulative royalty reports and
payment relief, and:
(1) The annual payment you owe under this subpart is
greater than the minimum royalty you paid, you must
pay the difference between the minimum royalty you
paid and your annual payment due under this subpart; or
(2) The annual payment you owe under this subpart is
less than the minimum royalty you paid, you are not
entitled to a credit because you must pay at least
the minimum royalty amount on your lease each
year.

Burden covered under OMB Control Number 1010–
0139.

Hour burden

Accounting and Auditing Relief Subtotal ..................................................................................................

Annual burden
hours

10

PART 206—PRODUCT VALUATION
Subpart C—Federal Oil

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

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

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AUDIT PROCESS. See note.

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Federal Register / Vol. 75, No. 171 / Friday, September 3, 2010 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued

srobinson on DSKHWCL6B1PROD with NOTICES

30 CFR 202, 204, 206, and
210

Reporting and recordkeeping requirement

Average number
of annual
responses

Hour burden

Annual burden
hours

206.103(a)(1), (a)(2), and
(a)(3).

206.103 This section explains how to value oil that you
may not value under § 206.102 or that you elect
under § 206.102(d) to value under this section. First
determine whether paragraph (a), (b), or (c) of this
section applies to production from your lease, or
whether you may apply paragraph (d) or (e) with
MMS approval.
(a) Production from leases in California or Alaska.
Value is the average of the daily mean ANS spot
prices published in any MMS-approved publication
during the trading month most concurrent with the
production month * * *.
(1) To calculate the daily mean spot price * * *
(2) Use only the days * * *
(3) You must adjust the value * * *

45

5

225

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

206.103(a)(4) After you select an MMS-approved publication, you may not select a different publication
more often than once every 2 years, * * *

8

2

16

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

206.103(b) Production from leases in the Rocky Mountain Region. * * * (1) If you have an MMS-approved
tendering program, you must value oil * * *

400

2

800

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

206.103(b)(1)(ii) If you do not have an MMS-approved
tendering program, you may elect to value your oil
under either paragraph (b)(2) or (b)(3) of this section
* * *.

400

2

800

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

206.103(b)(4) If you demonstrate to MMS’s satisfaction
that paragraphs (b)(1) through (b)(3) of this section
result in an unreasonable value for your production
as a result of circumstances regarding that production, the MMS Director may establish an alternative
valuation method.

400

2

800

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

206.103(c) Production from leases not located in California, Alaska or the Rocky Mountain Region. (1)
Value is the NYMEX price, plus the roll, adjusted for
applicable location and quality differentials and
transportation costs under § 206.112.

50

10

500

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

206.103(e) Production delivered to your refinery and
the NYMEX price or ANS spot price is an unreasonable value.
(1) * * * you may apply to the MMS Director to establish a value representing the market at the refinery if:
* * *
(2) You must provide adequate documentation and evidence demonstrating the market value at the refinery
* * *.

330

2

660

206.105 ...............................

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

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

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

40

10

400

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

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

8

2

16

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Federal Register / Vol. 75, No. 171 / Friday, September 3, 2010 / Notices

srobinson on DSKHWCL6B1PROD with NOTICES

RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Average number
of annual
responses

30 CFR 202, 204, 206, and
210

Reporting and recordkeeping requirement

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

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

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

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

20

2

40

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

206.110(e) If your arm’s-length transportation contract
includes both gaseous and liquid products, and the
transportation costs attributable to each product cannot be determined from the contract, then you must
propose an allocation procedure to MMS.

20

1

20

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

206.110(e)(1) * * * If MMS rejects your cost allocation,
you must amend your Form MMS–2014 * * *
(2) You must submit your initial proposal, including all
available data, within 3 months after first claiming
the allocated deductions on Form MMS–2014.

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

206.110(g) If your arm’s-length sales contract includes
a provision reducing the contract price by a transportation factor, * * *
(2) You must obtain MMS approval before claiming a
transportation factor in excess of 50 percent of the
base price of the product.

5

1

5

206.111(g) ...........................

206.111(g) To compute depreciation, you may elect to
use either * * *. After you make an election, you
may not change methods without MMS approval
* * *.

30

1

30

206.111(k)(2) ......................

206.111(k)(2) You may propose to MMS a cost allocation method on the basis of the values * * *.

30

1

30

206.111(l)(1) and (l)(3) .......

206.111(l)(1) Where you transport both gaseous and
liquid products through the same transportation system, you must propose a cost allocation procedure
to MMS * * *.
(3) You must submit your initial proposal, including all
available data, within 3 months after first claiming
the allocated deductions on Form MMS–2014.

20

1

20

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

206.111(l)(2) * * * If MMS rejects your cost allocation,
you must amend your Form MMS–2104 for the
months that you used the rejected method and pay
any additional royalty and interest due.

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

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

80

1

80

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

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

20

2

40

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Hour burden

Annual burden
hours

AUDIT PROCESS. See note.

Burden covered under OMB Control Number 1010–
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Federal Register / Vol. 75, No. 171 / Friday, September 3, 2010 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Average number
of annual
responses

30 CFR 202, 204, 206, and
210

Reporting and recordkeeping requirement

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

206.112(a)(3) If you transport or exchange at arm’s
length (or both transport and exchange) at least 20
percent, but not all, of your oil produced from the
lease to a market center, determine the adjustment
between the lease and the market center for the oil
that is not transported or exchanged (or both transported and exchanged) to or through a market center as follows: * * *
(4) If you transport or exchange (or both transport and
exchange) less than 20 percent of your crude oil
produced from the lease between the lease and a
market center, you must propose to MMS an adjustment between the lease and the market center for
the portion of the oil that you do not transport or exchange (or both transport and exchange) to a market center * * *. If MMS prescribes a different adjustment * * *. You must pay any additional royalties owed * * * plus the late payment interest from
the original royalty due date, or you may report a
credit * * *.

80

4

320

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

206.112(b)(3) * * * you may propose an alternative
differential to MMS * * *. If MMS prescribes a different differential * * *. You must pay any additional
royalties owed * * * plus the late payment interest
from the original royalty due date, or you may report
a credit * * *

80

4

320

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

206.112(c)(2) * * * If quality bank adjustments do not
incorporate or provide for adjustments for sulfur content, you may make sulfur adjustments, based on
the quality of the representative crude oil at the market center, of 5.0 cents per one-tenth percent difference in sulfur content, unless MMS approves a
higher adjustment.

80

2

160

206.114 ...............................

206.114 You or your affiliate must use a separate
entry on Form MMS–2014 to notify MMS of an allowance based on transportation costs you or your
affiliate incur.

Burden covered under OMB Control Number 1010–
0139.

MMS may require you or your affiliate to submit arm’slength transportation contracts, production agreements, operating agreements, and related documents * * *.

AUDIT PROCESS. See note.

206.115(a) ...........................

206.115(a) You or your affiliate must use a separate
entry on Form MMS–2014 to notify MMS of an allowance based on transportation costs you or your
affiliate incur.

Burden covered under OMB Control Number 1010–
0139.

206.115(c) ...........................

206.115(c) MMS may require you or your affiliate to
submit all data used to calculate the allowance deduction * * *.

AUDIT PROCESS. See note.

Hour burden

Annual burden
hours

srobinson on DSKHWCL6B1PROD with NOTICES

Subpart D—Federal Gas
206.152 (b)(1)(i) and
(b)(1)(iii).

206.152(b)(1)(i) * * * The lessee shall have the burden of demonstrating that its contract is arm’s-length
* * *. (iii) * * * When MMS determines that the
value may be unreasonable, MMS will notify the lessee and give the lessee an opportunity to provide
written information justifying the lessee’s value.

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

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

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Federal Register / Vol. 75, No. 171 / Friday, September 3, 2010 / Notices

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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Average number
of annual
responses

30 CFR 202, 204, 206, and
210

Reporting and recordkeeping requirement

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

206.152(b)(3) MMS may require a lessee to certify that
its arm’s-length contract provisions include all of the
consideration to be paid by the buyer, either directly
or indirectly, for the gas.

AUDIT PROCESS. See note.

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

206.152(e)(1) Where the value is determined pursuant
to paragraph (c) of this section, the lessee shall retain all data relevant to the determination of royalty
value * * *.

Burden covered under OMB Control Number 1010–
0139.

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

206.152(e)(2) Any Federal lessee will make available
upon request to the authorized MMS or State representatives, to the Office of the Inspector General
of the department of the Interior, or other person authorized to receive such information, arm’s-length
sales and volume data for like-quality production
sold, purchased or otherwise obtained by the lessee
from the field or area or from nearby fields or areas.

AUDIT PROCESS. See note.

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

206.152(e)(3) A lessee shall notify MMS if it has determined value pursuant to paragraph (c)(2) or (c)(3) of
this section * * *.

10

10

100

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

206.152(g) The lessee may request a value determination from MMS * * *. The lessee shall submit all
available data relevant to its proposal * * *.

40

5

200

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

206.153(b)(1)(i) * * * The lessee shall have the burden of demonstrating that its contract is arm’s-length
* * *.
(iii) * * * When MMS determines that the value may
be unreasonable, MMS will notify the lessee and
give the lessee an opportunity to provide written information justifying the lessee’s value.

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

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

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

206.153(b)(3) MMS may require a lessee to certify that
its arm’s-length contract provisions include all of the
consideration to be paid by the buyer, either directly
or indirectly, for the residue gas or gas plant product.

AUDIT PROCESS. See note.

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

206.153(e)(1) Where the value is determined pursuant
to paragraph (c) of this section, the lessee shall retain all data relevant to the determination of royalty
value * * *.

Burden covered under OMB Control Number 1010–
0139.

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

206.153(e)(2) Any Federal lessee will make available
upon request to the authorized MMS or State representatives, to the Office of the Inspector General
of the Department of the Interior, or other persons
authorized to receive such information, arm’s-length
sales and volume data for like-quality residue gas
and gas plant products sold, purchased or otherwise
obtained by the lessee from the same processing
plant or from nearby processing plants.

AUDIT PROCESS. See note.

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

206.153(e)(2) A lessee shall notify MMS if it has determined any value pursuant to paragraph (c)(2) or
(c)(3) of this section * * *.

10

2

20

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

206.153(g) The lessee may request a value determination from MMS * * *. The lessee shall submit all
available data relevant to its proposal * * *.

80

15

1,200

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hours

AUDIT PROCESS. See note.

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srobinson on DSKHWCL6B1PROD with NOTICES

RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Average number
of annual
responses

30 CFR 202, 204, 206, and
210

Reporting and recordkeeping requirement

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

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

40

1

40

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

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

40

3

120

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

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

AUDIT PROCESS. See note.

The lessee must claim a transportation allowance by
reporting it on a separate line entry on the Form
MMS–2014.

Burden covered under OMB Control Number 1010–
0139.

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

206.157(a)(1)(iii) * * * When MMS determines that the
value of the transportation may be unreasonable,
MMS will notify the lessee and give the lessee an
opportunity to provide written information justifying
the lessee’s transportation costs.

AUDIT PROCESS. See note.

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

206.157(a)(2)(ii) * * * the lessee may propose to MMS
a cost allocation method on the basis of the values
of the products transported * * *.

40

1

40

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

206.157(a)(3) If an arm’s-length transportation contract
includes both gaseous and liquid products and the
transportation costs attributable to each cannot be
determined from the contract, the lessee shall propose an allocation procedure to MMS * * *. The lessee shall submit all relevant data to support its proposal * * *.

40

1

40

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

206.157(a)(5) * * * The transportation factor may not
exceed 50 percent of the base price of the product
without MMS approval.

10

3

30

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

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

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

206.157(b)(2)(iv) * * * After a lessee has elected to
use either method for a transportation system, the
lessee may not later elect to change to the other alternative without approval of the MMS.
(A) * * * After an election is made, the lessee may not
change methods without MMS approval * * *.

100

1

100

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

206.157(b)(3)(i) * * * Except as provided in this paragraph, the lessee may not take an allowance for
transporting a product which is not royalty bearing
without MMS approval.

100

1

100

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

206.157(b)(3)(ii) * * * the lessee may propose to the
MMS a cost allocation method on the basis of the
values of the products transported * * *.

100

1

100

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hours

Burden covered under OMB Control Number 1010–
0139.

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Federal Register / Vol. 75, No. 171 / Friday, September 3, 2010 / Notices

srobinson on DSKHWCL6B1PROD with NOTICES

RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Average number
of annual
responses

30 CFR 202, 204, 206, and
210

Reporting and recordkeeping requirement

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

206.157(b)(4) Where both gaseous and liquid products
are transported through the same transportation system, the lessee shall propose a cost allocation procedure to MMS * * *. The lessee shall submit all
relevant data to support its proposal * * *.

100

1

100

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

206.157(b)(5) You may apply for an exception from the
requirement to compute actual costs under paragraphs (b)(1) through (b)(4) of this section.

100

1

100

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

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

Burden covered under OMB Control Number 1010–
0139.

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

206.157(c)(1)(ii) The MMS may require you to submit
arm’s-length transportation contracts, production
agreements, operating agreements, and related documents * * *.

AUDIT PROCESS. See note.

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

206.157(c)(2) Non-arm’s-length or no contract. (i) You
must use a separate entry on Form MMS–2014 to
notify MMS of a transportation allowance.

Burden covered under OMB Control Number 1010–
0139.

206.157(c)(2)(iii) ..................

206.157(c)(2)(iii) The MMS may require you to submit
all data used to calculate the allowance deduction
* * *.

AUDIT PROCESS. See note.

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

206.157(e) Adjustments. (2) For lessees transporting
production from onshore Federal leases, the lessee
must submit a corrected Form MMS–2014 to reflect
actual costs, together with any payment, in accordance with instructions provided by MMS.
(3) For lessees transporting gas production from
leases on the OCS, if the lessee’s estimated transportation allowance exceeds the allowance based on
actual costs, the lessee must submit a corrected
Form MMS–2014 to reflect actual costs, together
with its payments, in accordance with instructions
provided by MMS * * *.
(f) Allowable costs in determining transportation allowances. * * * (1) Firm demand charges paid to pipelines. * * * if you receive a payment or credit from
the pipeline for penalty refunds, rate case refunds,
or other reasons, you must reduce the firm demand
charge claimed on the Form MMS–2014 by the
amount of that payment. You must modify Form
MMS–2014 by the amount received or credited for
the affected reporting period and pay any resulting
royalty and late payment interest due;

Burden covered under OMB Control Number 1010–
0139.

206.158(c)(3) ......................

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

80

8

640

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

206.158(d)(2)(i) If the lessee incurs extraordinary costs
for processing gas production from a gas production
operation, it may apply to MMS for an allowance for
those costs * * *.

80

1

80

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

206.158(d)(2)(ii) * * * to retain the authority to deduct
the allowance the lessee must report the deduction
to MMS in a form and manner prescribed by MMS.

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hours

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Federal Register / Vol. 75, No. 171 / Friday, September 3, 2010 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued

30 CFR 202, 204, 206, and
210
206.159(a)(1)(i) ...................

Reporting and recordkeeping requirement

Average number
of annual
responses

Hour burden

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

Annual burden
hours

AUDIT PROCESS. See note.

(1)(i) * * *The lessee shall have the burden of demonstrating that its contract is arm’s-length * * *.
The lessee must claim a processing allowance by reporting it on a separate line entry on the Form
MMS–2014.

Burden covered under OMB Control Number 1010–
0139.

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

206.159(a)(1)(iii) * * * When MMS determines that the
value of the processing may be unreasonable, MMS
will notify the lessee and give the lessee an opportunity to provide written information justifying the lessee’s processing costs.

AUDIT PROCESS. See note.

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

206.159(a)(3) If an arm’s-length processing contract includes more than one gas plant product and the
processing costs attributable to each product cannot
be determined from the contract, the lessee shall
propose an allocation procedure to MMS * * *. The
lessee shall submit all relevant data to support its
proposal * * *.

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

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

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

206.159(b)(2)(iv) * * * When a lessee has elected to
use either method for a processing plant, the lessee
may not later elect to change to the alternative without approval of the MMS.
(A) * * * After an election is made, the lessee may not
change methods without MMS approval * * *

100

1

100

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

206.159(b)(4) A lessee may apply to MMS for an exception from the requirements that it compute actual
costs in accordance with paragraphs (b)(1) through
(b)(3) of this section * * *.

100

1

100

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

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

Burden covered under OMB Control Number 1010–
0139.

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

206.159(c)(1)(ii) The MMS may require that a lessee
submit arm’s-length processing contracts and related
documents * * *.

AUDIT PROCESS. See note.

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

206.159(c)(2) Non-arm’s-length or no contract.

20

1

20

Burden covered under OMB Control Number 1010–
0139.

Burden covered under OMB Control Number 1010–
0139.

srobinson on DSKHWCL6B1PROD with NOTICES

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

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

206.159(e)(2) and (e)(3) .....

206.159(e) Adjustments.

AUDIT PROCESS. See note.

Burden covered under OMB Control Number 1010–
0139.

(2) For lessees processing production from onshore
Federal leases, the lessee must submit a corrected
Form MMS–2014 to reflect actual costs, together
with any payment, in accordance with instructions
provided by MMS.

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54175

Federal Register / Vol. 75, No. 171 / Friday, September 3, 2010 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
30 CFR 202, 204, 206, and
210

Reporting and recordkeeping requirement

Average number
of annual
responses

Hour burden

Annual burden
hours

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

117

8,672

1.2

150

180

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

277

9,378

PART 210—FORMS AND REPORTS
Subpart D—Special-Purpose Forms and Reports—Oil, Gas, and Geothermal
210.155(a) ...........................

210.155(a) General. Operators who have been granted
a reduced royalty rate by the Bureau of Land Management (BLM) * * * must submit Form MMS–4377,
Stripper Royalty Rate Reduction Notification, under
43 CFR * * *
NOTE: BLM terminated the benefits of this program
and is processing a final rule to remove this program
from the regulations.

srobinson on DSKHWCL6B1PROD with NOTICES

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

Estimated Annual Reporting and
Recordkeeping ‘‘Non-hour’’ Cost Burden:
We have identified no ‘‘non-hour’’ cost
burden associated with the collection of
information.
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: Section 3506(c)(2)(A) of
the PRA 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
automated collection techniques or
other forms of information technology.
To comply with the public
consultation process, we published a
notice in the Federal Register on April
12, 2010 (75 FR 18525), announcing that

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we would submit this ICR to OMB for
approval. The notice provided the
required 60-day comment period. We
received no comments in response to
the notice.
If you wish to comment in response
to this notice, you may send your
comments to the offices listed under the
ADDRESSES section of this notice. The
OMB has up to 60 days to approve or
disapprove the information collection
but may respond after 30 days.
Therefore, to ensure maximum
consideration, OMB should receive
public comments by October 4, 2010.
Public Comment Policy: We will post
all comments in response to this notice
at http://www.mrm.boemre.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.
BOEM Information Collection
Clearance Officer: Arlene Bajusz (703)
787–1025.

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Dated: August 26, 2010.
Gregory J. Gould,
Associate Director for Minerals Revenue
Management.
[FR Doc. 2010–22049 Filed 9–2–10; 8:45 am]
BILLING CODE 4310–MR–W–P

DEPARTMENT OF THE INTERIOR
Bureau of Land Management
[F–14881–B and F–14881–D; LLAK965000–
L14100000–KC0000–P]

Alaska Native Claims Selection
Bureau of Land Management,
Interior.
ACTION: Notice of decision approving
lands for conveyance.
AGENCY:

As required by 43 CFR
2650.7(d), notice is hereby given that
the Bureau of Land Management (BLM)
will issue an appealable decision
approving the conveyance of surface
estate for certain lands to Koyuk Native
Corporation, pursuant to the Alaska
Native Claims Settlement Act. The
subsurface estate in these lands will be
conveyed to Bering Straits Native
Corporation when the surface estate is
conveyed to Koyuk Native Corporation.
The lands are in the vicinity of Koyuk,
Alaska, and are located in:

SUMMARY:

Kateel River Meridian, Alaska
T. 8 S., R. 11 W.,
Sec. 3.

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File TitleDocument
SubjectExtracted Pages
AuthorU.S. Government Printing Office
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File Created2010-09-03

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