60-day FRN

Federal Register / Vol. 73, No. 149 / Friday, August 1, 2008 / Notices
conveyance of mineral interests, and
payment of publication costs to the Las
Vegas Field Office. The purchaser must
remit the remainder of the purchase
price within 180 days from the date of
receiving the sale offer to the Las Vegas
Field Office. Payments must be received
by certified check, postal money order,
bank draft, or cashier’s check payable to
the U.S. Department of the InteriorBLM. Failure to meet conditions
established for this sale will void the
sale and any monies received will be
forfeited. Arrangements for electronic
fund transfer to BLM for the balance due
shall be made a minimum of two weeks
prior to the date you wish to make
payment.
The BLM may accept or reject any or
all offers to purchase any parcel, or may
withdraw any parcel of land or interest
therein from sale, if, in the opinion of
the authorized officer, consummation of
the sale would not be fully consistent
with FLPMA or other applicable laws or
is determined not to be in the public
interest.
The parcel of land will not be offered
for sale prior to 60 days from the date
of publication of this notice. Only
written comments submitted by postal
service or overnight mail will be
considered as properly filed. Electronic
mail, facsimile, or telephone comments
will not be considered.
Before including your address, phone
number, e-mail address, or other
personal identifying information in your
comment, you should be aware 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 your personal identifying
information from public review, we
cannot guarantee that we will be able to
do so.
Any adverse comments regarding the
proposed sale will be reviewed by the
BLM Nevada State Director, who may
sustain, vacate, or modify this realty
action and issue a final determination.
In the absence of timely filed objections,
this realty action will become the final
determination of the Department of the
Interior.

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Authority: 43 CFR part 2711.
Dated: July 14, 2008.
Mary Jo Rugwell,
Manager, Las Vegas Field Office.
[FR Doc. E8–17615 Filed 7–31–08; 8:45 am]
BILLING CODE 4310–HC–P

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DEPARTMENT OF THE INTERIOR
Minerals Management Service
[Docket No. MMS–2008–MRM–0029]

Agency Information Collection
Activities: Proposed Collection,
Comment Request
Minerals Management Service
(MMS), Interior.
ACTION: Notice of an extension of a
currently approved information
collection (OMB Control Number 1010–
0103).
AGENCY:

SUMMARY: To comply with the
Paperwork Reduction Act of 1995
(PRA), we are inviting comments on a
collection of information that we will
submit to the Office of Management and
Budget (OMB) for review and approval.
We changed the title of this information
collection request (ICR) to meet OMB
requirements. The new title of this ICR
is ‘‘30 CFR Parts 202, 206, and 207,
Indian Oil and Gas Valuation.’’
DATES: Submit written comments on or
before September 2, 2008.
ADDRESSES: You may submit comments
by the following methods:
• Electronically go to http://
www.regulations.gov. In the ‘‘Comment
or Submission’’ column, enter ‘‘MMS–
2008–MRM–0029’’ to view supporting
and related materials for this ICR. Click
on ‘‘Send a comment or submission’’
link to submit public comments.
Information on using Regulations.gov,
including instructions for accessing
documents, submitting comments, and
viewing the docket after the close of the
comment period, is available through
the site’s ‘‘User Tips’’ link. All
comments submitted will be posted to
the docket.
• Mail comments to Hyla Hurst,
Regulatory Specialist, Minerals
Management Service, Minerals Revenue
Management, P.O. Box 25165, MS
302B2, Denver, Colorado 80225. Please
reference ICR 1010–0103 in your
comments.
• Hand-carry comments or use an
overnight courier service. Our courier
address is Building 85, Room A–614,
Denver Federal Center, West 6th Ave.
and Kipling Blvd., Denver, Colorado
80225. Please reference ICR 1010–0103
in your comments.
FOR FURTHER INFORMATION CONTACT: Hyla
Hurst, telephone (303) 231–3495, or email [email protected]. You may
also contact Hyla Hurst to obtain copies,
at no cost, of (1) The ICR, (2) any
associated forms, and (3) the regulations
that require the subject collection of
information.

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SUPPLEMENTARY INFORMATION:

Title: 30 CFR Parts 202, 206, and 207,
Indian Oil and Gas Valuation.
OMB Control Number: 1010–0103.
Bureau Form Number: Forms MMS–
4109, MMS–4110, MMS–4295, MMS–
4410, and MMS–4411.
Abstract: The Secretary of the U.S.
Department of the Interior (Secretary) is
responsible for matters relevant to
mineral resource development on
Federal and Indian lands and the Outer
Continental Shelf (OCS). Under the
Mineral Leasing Act (30 U.S.C. 1923),
the Indian Mineral Development Act of
1982 (25 U.S.C. 2103), and the Outer
Continental Shelf Lands Act (43 U.S.C.
1353), the Secretary is responsible for
(1) Managing the production of minerals
from Federal and Indian lands and the
OCS; (2) collecting royalties and other
mineral revenues from lessees who
produce minerals; and (3) distributing
the funds collected in accordance with
applicable laws. The Secretary also has
a trust responsibility to manage Indian
lands and seek advice and information
from Indian beneficiaries. The MMS
performs the minerals revenue
management functions and assists the
Secretary in carrying out the
Department’s trust responsibility for
Indian lands. Applicable laws
pertaining to mineral royalties are
located on our Web site at http://
www.mrm.mms.gov/Laws_R_D/
PublicLawsAMR.htm.
Regulations at 30 CFR part 202,
subparts C and J, pertain to royalties;
part 206, subparts B and E, govern the
valuation of oil and gas produced from
leases on Indian lands; and part 207
pertains to recordkeeping. Indian tribes
and individual Indian mineral owners
receive all royalties generated from their
lands. Determining product valuation is
essential to ensure that Indian tribes and
individual Indian mineral owners
receive payment on the full value of the
minerals removed from their lands.
Failure to collect the data described in
this information collection could result
in the undervaluation of leased minerals
on Indian lands. All data reported is
subject to subsequent audit and
adjustment.
Indian Oil
The regulations apply to all oil
production from Indian oil and gas
leases, except leases on the Osage
Indian Reservation. The regulations
provide that lessees determine the value
of oil based on the higher of: (1) The
gross proceeds under an arm’s-length
contract, or (2) major portion analysis.
These oil valuation methods are eligible
for applicable transportation
allowances. From information collected

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on Form MMS–4110, Oil Transportation
Allowance Report, MMS verifies
transportation allowances during the
product valuation verification to
determine if the lessee reported and
paid the proper royalty amount. The
MMS and tribal personnel evaluate
whether the transportation allowances
reported and claimed by lessees are
within regulatory allowance limitations.
Indian Gas
The regulations apply to all gas
production from Indian oil and gas
leases, except leases on the Osage
Indian Reservation. Most Indian leases
contain the requirement to perform
accounting for comparison (dual
accounting) for gas produced from the
lease. Lessees must elect to perform
actual dual accounting as defined in 30
CFR 206.176 or alternative dual
accounting as defined in 30 CFR
206.173. Lessees use Form MMS–4410,
Accounting for Comparison [Dual
Accounting], to certify that dual
accounting is not required on an Indian
lease or to make an election for actual
or alternative dual accounting for Indian
leases.
The regulations require lessees to
submit Form MMS–4411, Safety Net
Report, when gas production from an
Indian oil or gas lease is sold beyond the
first index pricing point. The safety net
calculation establishes the minimum
value, for royalty purposes, of natural
gas production from Indian oil and gas

4393. This form provides MMS with the
data necessary to make a decision
whether to approve or deny the request
and track deductions on royalty reports.

leases. This reporting requirement
ensures that Indian lessors receive all
royalties due and aids MMS compliance
efforts.
The MMS and tribal personnel use the
information collected on Form MMS–
4295, Gas Transportation Allowance
Report, to evaluate whether
transportation allowances reported
under a non-arm’s-length contract or no
contract are reasonable, and actual costs
are within regulatory allowance
limitations.
The MMS and tribal personnel use the
information collected on Form MMS–
4109, Gas Processing Allowance
Summary Report, to evaluate whether
processing allowances reported under a
non-arm’s-length contract or no contract
are reasonable, and actual costs are
within regulatory allowance limitations.

Summary
The MMS is requesting OMB’s
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 to Indian tribes and
individual Indian mineral owners.
Proprietary information submitted to
MMS under this collection is protected,
and no items of a sensitive nature are
collected. The requirement to respond is
mandatory for Form MMS–4411, Safety
Net Report, when certain circumstances
exist. For all other forms in this
collection, the requirement to respond is
voluntary; i.e., a response is required to
obtain a benefit.
Frequency of Response: Annually and
on occasion.
Estimated Number and Description of
Respondents: 302 Indian lessees.
Estimated Annual Reporting and
Recordkeeping ‘‘Hour’’ Burden: 1,074
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:

Indian Oil and Gas
Form MMS–4393, Request to Exceed
Regulatory Allowance Limitation, is
used for both Federal and Indian leases.
Most of the burden hours are incurred
on Federal leases; therefore, the form is
approved under ICR 1010–0136,
pertaining to Federal oil and gas leases.
However, we include a discussion of the
form in this ICR, as well as the burden
hours for Indian leases. To request
permission to exceed a regulatory
allowance limit, lessees must submit a
letter to MMS explaining why a higher
allowance limit is necessary and
provide supporting documentation,
including a completed Form MMS–

RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS
30 CFR

Reporting and recordkeeping requirement

Average number of annual
responses

Hour burden

Annual burden
hours

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

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

Burden covered under OMB Control Number
1010–0140 (expires 11/30/2009). Burden
covered under § 210.52.

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Subpart J—Gas Production From Indian Leases
202.551(b) ..........................

How do I determine the volume of production for which I
must pay royalty if my lease is not in an approved Federal unit or communitization agreement (AFA)?
(b) You and all other persons paying royalties on the lease
must report and pay royalties based on your takes. * * *

202.551(c) ...........................

(c) You and all other persons paying royalties on the lease
may ask MMS for permission * * *

202.558(a) and (b) ..............

What standards do I use to report and pay royalties on
gas?
(a) You must report gas volumes as follows: * * *
(b) You must report residue gas and gas plant product volumes as follows: * * *

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1

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Hour burden

Average number of annual
responses

Annual burden
hours

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206—PRODUCT VALUATION
Subpart B—Indian Oil
206.56(b)(2) ........................

Transportation allowances—general.
(b)(2) Upon request of a lessee, MMS may approve a transportation allowance deduction in excess of the limitation prescribed by paragraph (b)(1) 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. * * *

Burden covered under OMB Control Number
1010–0136 (expires 06/30/2009).

206.57(a)(1)(i) .....................

Determination of transportation allowances.
(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.

206.57(a)(1)(i) .....................

(a) Arm’s-length transportation contracts.
(1)(i) * * * Before any deduction may be taken, the lessee
must submit a completed page one of Form MMS–4110
(and Schedule 1), Oil Transportation Allowance Report * * *

Burden covered under § 206.57(c)(1)(i) and (iii).

206.57(a)(1)(iii) ...................

(a) Arm’s-length transportation contracts.
(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.

206.57(a)(2)(i) .....................

(a) Arm’s-length transportation contracts.
(2)(i) * * * Except as provided in this paragraph, no allowance
may be taken for the costs of transporting lease production
which is not royalty-bearing without MMS approval.

Burden covered under § 206.57(a)(3).

206.57(a)(2)(ii) ....................

(a) Arm’s-length transportation contracts.
(2)(ii) Notwithstanding the requirements of paragraph (i), the
lessee may propose to MMS a cost allocation method on
the basis of the values of the products transported. * * *

20

1

20

206.57(a)(3) ........................

(a) Arm’s-length transportation contracts.
(3) If an 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, the lessee shall propose an allocation procedure to
MMS. * * * The lessee shall submit all available data to
support its proposal. * * *

40

1

40

206.57(b)(1) ........................

(b) Non-arm’s-length or no contract.
(1) * * * A transportation allowance may be claimed retroactively for a period of not more than 3 months prior to the
first day of the month that Form MMS–4110 is filed with
MMS, unless MMS approves a longer period upon a showing of good cause by the lessee. * * *

Burden covered under § 206.57(c)(2)(i), and
(c)(2)(iii).

206.57(b)(1) ........................

(b) Non-arm’s-length or no contract.
(1) * * * When necessary or appropriate, MMS may direct a
lessee to modify its actual transportation allowance deduction.

Burden covered under OMB Control Number
1010–0140. Burden covered under § 210.52.

206.57(b)(2)(iv) ...................

(b) Non-arm’s-length or no contract.
(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 MMS.

20

1

20

206.57(b)(2)(iv)(A) ..............

(b) Non-arm’s-length or no contract.
(2)(iv)(A) * * * After an election is made, the lessee may not
change methods without MMS approval. * * *

20

1

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

Annual burden
hours

40

1

40

(b) Non-arm’s-length or no contract.
(3)(ii) Notwithstanding the requirements of paragraph (i), the
lessee may propose to MMS a cost allocation method on
the basis of the values of the products transported. * * *

20

1

20

206.57(b)(4) ........................

(b) Non-arm’s-length or no contract.
(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 available data to support its proposal.
* * *

20

1

20

206.57(b)(5) ........................

(b) Non-arm’s-length or no contract.
(5) A lessee may apply to MMS for an exception from the requirement that it compute actual costs in accordance with
paragraphs (b)(1) through (b)(4) of this section. * * *

20

1

20

206.57(c)(1)(i) .....................

(c) Reporting requirements.
(1) Arm’s-length contracts. (i) With the exception of those
transportation allowances specified in paragraphs (c)(1)(v)
and (c)(1)(vi) of this section, the lessee shall submit page
one of the initial Form MMS–4110 (and Schedule 1), Oil
Transportation Allowance Report, prior to, or at the same
time as, the transportation allowance determined, under an
arm’s-length contract, is reported on Form MMS–2014, Report of Sales and Royalty Remittance. * * *

4

4

16

206.57(c)(1)(iii) ....................

(c) Reporting requirements.
(1) Arm’s-length contracts. (iii) After the initial reporting period
and for succeeding reporting periods, lessees must submit
page one of Form MMS–4110 (and Schedule 1) within 3
months after the end of the calendar year, or after the applicable contract or rate terminates or is modified or amended,
whichever is earlier, unless MMS approves a longer period
(during which period the lessee shall continue to use the allowance from the previous reporting period).

4

4

16

206.57(c)(1)(iv) ...................

(c) Reporting requirements.
(1) Arm’s-length contracts. (iv) MMS may require that a lessee
submit arm’s-length transportation contracts, production
agreements, operating agreements, and related documents.
Documents shall be submitted within a reasonable time, as
determined by MMS.

AUDIT PROCESS. See note.

206.57(c)(2)(i) .....................

(c) Reporting requirements.
(2) Non-arm’s-length or no contract.
(i) With the exception of those transportation allowances specified in paragraphs (c)(2)(v), (c)(2)(vii) and (c)(2)(viii) of this
section, the lessee shall submit an initial Form MMS–4110
prior to, or at the same time as, the transportation allowance
determined under a non-arm’s-length contract or no-contract
situation is reported on Form MMS–2014. * * * The initial
report may be based upon estimated costs.

6

1

6

30 CFR

Reporting and recordkeeping requirement

206.57(b)(3)(i) .....................

(b) Non-arm’s-length or no contract.
(3)(i) * * * Except as provided in this paragraph, the lessee
may not take an allowance for transporting lease production
which is not royalty bearing without MMS approval.

206.57(b)(3)(ii) ....................

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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Hour burden

Average number of annual
responses

Annual burden
hours

3

18

30 CFR

Reporting and recordkeeping requirement

206.57(c)(2)(iii) ....................

(c) Reporting requirements.
(2) Non-arm’s-length or no contract.
(iii) For calendar-year reporting periods succeeding the initial
reporting period, the lessee shall submit a completed Form
MMS–4110 containing the actual costs for the previous reporting period. If oil transportation is continuing, the lessee
shall include on Form MMS–4110 its estimated costs for the
next calendar year. * * * MMS must receive the Form
MMS–4110 within 3 months after the end of the previous reporting period, unless MMS approves a longer period (during which period the lessee shall continue to use the allowance from the previous reporting period).

206.57(c)(2)(iv) ...................

(c) Reporting requirements.
(2) Non-arm’s-length or no contract.
(iv) For new transportation facilities or arrangements, the lessee’s initial Form MMS–4110 shall include estimates of the
allowable oil transportation costs for the applicable period.
* * *

Burden covered under § 206.57(c)(2)(i).

206.57(c)(2)(v) ....................

(c) Reporting requirements.
(2) Non-arm’s-length or no contract.
(v) * * * only those allowances that have been approved by
MMS in writing * * *

Burden covered under § 206.57(c)(2)(i).

206.57(c)(2)(vi) ...................

(c) Reporting requirements.
(2) Non-arm’s-length or no contract.
(vi) Upon request by MMS, the lessee shall submit all data
used to prepare its Form MMS–4110. The data shall be provided within a reasonable period of time, as determined by
MMS.

AUDIT PROCESS. See note.

206.57(c)(4) and (e)(2) .......

(c) Reporting requirements.
(4) Transportation allowances must be reported as a separate
line item on Form MMS–2014 * * *
(e) Adjustments.
(2) For lessees transporting production from Indian leases, the
lessee must submit a corrected Form MMS–2014 to reflect
actual costs * * *

Burden covered under OMB Control Number
1010–0140. Burden covered under § 210.52.

206.59 .................................

May I ask MMS for valuation guidance?
You may ask MMS for guidance in determining value. You
may propose a value method to MMS. Submit all available
data related to your proposal and any additional information
MMS deems necessary. * * *

206.61(a) and (b) ................

What records must I keep and produce?
(a) On request, you must make available sales, volume, and
transportation data for production you sold, purchased, or
obtained from the field or area. You must make this data
available to MMS, Indian representatives, or other authorized persons.
(b) You must retain all data relevant to the determination of
royalty value. * * *

6

20

1

20

25

100

AUDIT PROCESS. See note.

206—PRODUCT VALUATION
Subpart E—Indian Gas

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206.172(b)(1)(ii) ..................

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How do I value gas produced from leases in an index
zone?
(b) Valuing residue gas and gas before processing.
(1)(ii) Gas production that you certify on Form MMS–4410
* * * is not processed before it flows into a pipeline with an
index but which may be processed later * * *

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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Annual burden
hours

10

30

Reporting and recordkeeping requirement

206.172(e)(6)(i) and (iii) ......

(e) Determining the minimum value for royalty purposes of gas
sold beyond the first index pricing point.
(6)(i) You must report the safety net price for each index zone
to MMS on Form MMS–4411, Safety Net Report, no later
than June 30 following each calendar year; * * *
(iii) MMS may order you to amend your safety net price within
one year from the date your Form MMS–4411 is due or is
filed, whichever is later. * * *

206.172(e)(6)(ii) ..................

(e) Determining the minimum value for royalty purposes of gas
sold beyond the first index pricing point.
(6)(ii) You must pay and report on Form MMS–2014 additional
royalties due no later than June 30 following each calendar
year * * *

206.172(f)(1)(ii), (f)(2), and
(f)(3).

(f) Excluding some or all tribal leases from valuation under this
section.
(1) An Indian tribe may ask MMS to exclude some or all of its
leases from valuation under this section. * * *
(ii) If an Indian tribe requests exclusion from an index zone for
less than all of its leases, MMS will approve the request
only if the excluded leases may be segregated into one or
more groups based on separate fields within the reservation.
(2) An Indian tribe may ask MMS to terminate exclusion of its
leases from valuation under this section. * * *
(3) The Indian tribe’s request to MMS under either paragraph
(f)(1) or (2) of this section must be in the form of a tribal
resolution. * * *

40

1

40

206.173(a)(1) ......................

How do I calculate the alternative methodology for dual
accounting?
(a) Electing a dual accounting method.
(1) * * * You may elect to perform the dual accounting calculation according to either 206.176(a) (called actual dual
accounting), or paragraph (b) of this section (called the alternative methodology for dual accounting).

2

19

38

206.173(a)(2) ......................

(a) Electing a dual accounting method.
(2) You must make a separate election to use the alternative
methodology for dual accounting for your Indian leases in
each MMS-designated area. * * *

Burden covered under § 206.173(a)(1).

206.174(a)(4)(ii) ..................

How do I value gas production when an index-based
method cannot be used?
(a) Situations in which an index-based method cannot be
used.
(4)(ii) If the major portion value is higher, you must submit an
amended Form MMS–2014 to MMS by the due date specified in the written notice from MMS of the major portion
value. * * *

Burden covered under OMB Control Number
1010–0140. Burden covered under § 210.52.

206.174(b)(1)(i) and (iii);
(b)(2); (d)(2).

(b) Arm’s-length contracts.
(1)(i) You have the burden of demonstrating that your contract
is arm’s-length. * * *
(iii) * * * In these circumstances, MMS will notify you and give
you an opportunity to provide written information justifying
your value. * * *
(2) MMS may require you to certify that your arm’s-length contract provisions include all of the consideration the buyer
pays, either directly or indirectly, for the gas, residue gas, or
gas plant product.
(d) Supporting data.
(2) You must make all such data available upon request to the
authorized MMS or Indian representatives, to the Office of
the Inspector General of the Department, or other authorized persons. * * *

AUDIT PROCESS. See note.

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

Hour burden

Annual burden
hours

30 CFR

Reporting and recordkeeping requirement

206.174(d) ..........................

(d) Supporting data. If you determine the value of production
under paragraph (c) of this section, you must retain all data
relevant to determination of royalty value.

206.174(f) ...........................

(f) Value guidance. You may ask MMS for guidance in determining value. You may propose a valuation method to
MMS. Submit all available data related to your proposal and
any additional information MMS deems necessary. * * *

40

1

40

206.175(d)(4) ......................

How do I determine quantities and qualities of production
for computing royalties?
(d)(4) You may request MMS approval of other methods for
determining the quantity of residue gas and gas plant products allocable to each lease. * * *

20

1

20

206.176(b) ..........................

How do I perform accounting for comparison?
(b) If you are required to account for comparison, you may
elect to use the alternative dual accounting methodology
provided for in § 206.173 instead of the provisions in paragraph (a) of this section.

Burden covered under § 206.173(a)(1).

206.176(c) ...........................

(c) * * * If you do not perform dual accounting, you must certify to MMS that gas flows into such a pipeline before it is
processed.

Burden covered under § 206.172(b)(1)(ii).

Burden covered under OMB Control Number
1010–0140.

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Transportation Allowances
206.177(c)(2) and (c)(3) .....

What general requirements regarding transportation allowances apply to me?
(c)(2) If you ask MMS, MMS may approve a transportation allowance deduction in excess of the limitation in paragraph
(c)(1) of this section. * * *
(3) 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.

4

1

4

206.178(a)(1)(i) ...................

How do I determine a transportation allowance?
(a) Determining a transportation allowance under an arm’slength contract.
(1)(i) * * * You are required to submit to MMS a copy of your
arm’s-length transportation contract(s) and all subsequent
amendments to the contract(s) within 2 months of the date
MMS receives your report which claims the allowance on
the Form MMS–2014.

1

25

25

206.178(a)(1)(iii) .................

(a) Determining a transportation allowance under an arm’slength contract.
(1)(iii) If MMS determines that the consideration paid under an
arm’s-length transportation contract does not reflect the
value of the transportation because of misconduct by or between the contracting parties * * * In these circumstances,
MMS will notify you and give you an opportunity to provide
written information justifying your transportation costs.

AUDIT PROCESS. See note.

206.178(a)(2)(i) and (ii) .......

(a) Determining a transportation allowance under an arm’slength contract.
(2)(i) * * * you cannot take an allowance for the costs of
transporting lease production that is not royalty bearing without MMS approval, or without lessor approval on tribal
leases.
(ii) As an alternative to paragraph (a)(2)(i) of this section, you
may propose to MMS a cost allocation method based on the
values of the products transported. * * *

1

20

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

Annual burden
hours

40

1

40

(b) Determining a transportation allowance under a non-arm’slength contract or no contract.
(1)(ii) * * * You must submit the actual cost information to
support the allowance to MMS on Form MMS–4295, Gas
Transportation Allowance Report, within 3 months after the
end of the 12-month period to which the allowance applies.
* * *

15

3

45

206.178(b)(2)(iv) .................

(b) Determining a transportation allowance under a non-arm’slength contract or no contract.
(2)(iv) You may use either depreciation with a return on
undepreciated capital investment or a return on depreciable
capital investment. * * * you may not later elect to change
to the other alternative without MMS approval.

20

1

20

206.178(b)(2)(iv)(A) ............

(b) Determining a transportation allowance under a non-arm’slength contract or no contract.
(2)(iv)(A) * * * Once you make an election, you may not
change methods without MMS approval. * * *

20

1

20

206.178(b)(3)(i) ...................

(b) Determining a transportation allowance under a non-arm’slength contract or no contract.
(3)(i) * * * Except as provided in this paragraph, you may not
take an allowance for transporting a product that is not royalty bearing without MMS approval.

40

1

40

206.178(b)(3)(ii) ..................

(b) Determining a transportation allowance under a non-arm’slength contract or no contract.
(3)(ii) As an alternative to the requirements of paragraph
(b)(3)(i) of this section, you may propose to MMS a cost allocation method based on the values of the products transported. * * *

20

1

20

206.178(b)(5) ......................

(b) Determining a transportation allowance under a non-arm’slength contract or no contract.
(5) If you transport both gaseous and liquid products through
the same transportation system, you must propose a cost
allocation procedure to MMS. * * * You are required to submit all relevant data to support your proposal. * * *

40

1

40

206.178(d)(1) ......................

(d) Reporting your transportation allowance.
(1) If MMS requests, you must submit all data used to determine your transportation allowance * * *

AUDIT PROCESS. See note.

206.178(d)(2), (e), and (f)(1)

(d) Reporting your transportation allowance.
(2) You must report transportation allowances as a separate
entry on Form MMS–2014. * * *
(e) Adjusting incorrect allowances. If for any month the transportation allowance you are entitled to is less than the
amount you took on Form MMS–2014, you are required to
report and pay additional royalties due, plus interest computed under 30 CFR 218.54 from the first day of the first
month you deducted the improper transportation allowance
until the date you pay the royalties due. * * *
(f) Determining allowable costs for transportation allowances.
* * *
(1) Firm demand charges paid to pipelines. * * * You must
modify the Form MMS–2014 by the amount received or
credited for the affected reporting period.

Burden covered under OMB Control Number
1010–0140. Burden covered under § 210.52.

30 CFR

Reporting and recordkeeping requirement

206.178(a)(3)(i) and (ii) .......

(a) Determining a transportation allowance under an arm’slength contract.
(3)(i) If your arm’s-length transportation contract includes both
gaseous and liquid products and the transportation costs attributable to each cannot be determined from the contract,
you must propose an allocation procedure to MMS. * * *
(ii) You are required to submit all relevant data to support your
allocation proposal. * * *

206.178(b)(1)(ii) ..................

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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
30 CFR

Reporting and recordkeeping requirement

Hour burden

Average number of annual
responses

Annual burden
hours

15

15

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Processing Allowances
206.180(a)(1)(i) ...................

How do I determine an actual processing allowance?
(a) Determining a processing allowance if you have an arm’slength processing contract.
(1)(i) * * * You have the burden of demonstrating that your
contract is arm’s-length. You are required to submit to MMS
a copy of your arm’s-length contract(s) and all subsequent
amendments to the contract(s) within 2 months of the date
MMS receives your first report that deducts the allowance
on the Form MMS–2014.

1

206.180(a)(1)(iii) .................

(a) Determining a processing allowance if you have an arm’slength processing contract.
(1)(iii) If MMS determines that the consideration paid under an
arm’s-length processing contract does not reflect the value
of the processing because of misconduct by or between the
contracting parties * * * In these circumstances, MMS will
notify you and give you an opportunity to provide written information justifying your processing costs.

AUDIT PROCESS. See note.

206.180(a)(3) ......................

(a) Determining a processing allowance if you have an arm’slength processing contract.
(3) If your 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,
you must propose an allocation procedure to MMS. * * *
You are required to submit all relevant data to support your
proposal. * * *

40

1

40

206.180(b)(1)(ii) ..................

(b) Determining a processing allowance if you have a nonarm’s-length contract or no contract.
(1)(ii) * * * You must submit the actual cost information to
support the allowance to MMS on Form MMS–4109, Gas
Processing Allowance Summary Report, within 3 months
after the end of the 12-month period for which the allowance
applies. * * *

20

5

100

206.180(b)(2)(iv) .................

(b) Determining a processing allowance if you have a nonarm’s-length contract or no contract.
(2)(iv) You may use either depreciation with a return on
undepreciable capital investment or a return on depreciable
capital investment.* * * you may not later elect to change to
the other alternative without MMS approval.

20

1

20

206.180(b)(2)(iv)(A) ............

(b) Determining a processing allowance if you have a nonarm’s-length contract or no contract.
(2)(iv)(A) * * * Once you make an election, you may not
change methods without MMS approval. * * *

20

1

20

206.180(b)(3) ......................

(b) Determining a processing allowance if you have a nonarm’s-length contract or no contract.
(3) Your processing allowance under this paragraph (b) must
be determined based upon a calendar year or other period if
you and MMS agree to an alternative.

20

1

20

206.180(c)(1) ......................

(c) Reporting your processing allowance.
(1) If MMS requests, you must submit all data used to determine your processing allowance. * * *

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AUDIT PROCESS. See note.

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Federal Register / Vol. 73, No. 149 / Friday, August 1, 2008 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
30 CFR

Reporting and recordkeeping requirement

Hour burden

206.180(c)(2) and (d) ..........

(c) Reporting your processing allowance.
(2) You must report gas processing allowances as a separate
entry on the Form MMS–2014. * * *
(d) Adjusting incorrect processing allowances. If for any month
the gas processing allowance you are entitled to is less than
the amount you took on Form MMS–2014, you are required
to pay additional royalties, plus interest computed under 30
CFR 218.54 from the first day of the first month you deducted a processing allowance until the date you pay the
royalties due. * * *

206.181(c) ...........................

How do I establish processing costs for dual accounting
purposes when I do not process the gas?
(c) A proposed comparable processing fee submitted to either
the tribe and MMS (for tribal leases) or MMS (for allotted
leases) with your supporting documentation submitted to
MMS. If MMS does not take action on your proposal within
120 days, the proposal will be deemed to be denied and
subject to appeal to the MMS Director under 30 CFR part
290.

Average number of annual
responses

Annual burden
hours

Burden covered under OMB Control Number
1010–0140. Burden covered under § 210.52.

40

1

40

140

1,074

207—SALES AGREEMENTS OR CONTRACTS GOVERNING THE DISPOSAL OF LEASE PRODUCTS
Subpart A—General Provisions
207.4(b) ...............................

Contracts made pursuant to old form leases.
(b) The stipulation, the substance of which must be included in
the contract, or be made the subject matter of a separate instrument properly identifying the leases affected thereby, is
as follows: * * *

AUDIT PROCESS. See note.

207.5 ...................................

Contract and sales agreement retention.
Copies of all sales contracts, posted price bulletins, etc., and
copies of all agreements, other contracts, or other documents which are relevant to the valuation of production are
to be maintained by the lessee and made available upon request during normal working hours to authorized MMS,
State or Indian representatives, other MMS or BLM officials,
auditors of the General Accounting Office, or other persons
authorized to receive such documents, or shall be submitted
to MMS within a reasonable period of time, as determined
by MMS. Any oral sales arrangement negotiated by the lessee must be placed in written form and retained by the lessee. Records shall be retained in accordance with 30 CFR
part 212.

AUDIT PROCESS. See note.

Total Burden ...................................................................................................................................................

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

Estimated Annual Reporting and
Recordkeeping ‘‘Non-hour’’ Cost
Burden: We have identified no ‘‘nonhour’’ cost burdens.
Public Disclosure Statement: The PRA
(44 U.S.C. 3501 et seq.) provides that an
agency may not conduct or sponsor, and
a person is not required to respond to,
a collection of information unless it
displays a currently valid OMB control
number.
Comments: Before submitting an ICR
to OMB, PRA Section 3506(c)(2)(A)
requires each agency ‘‘* * * to provide
notice * * * and otherwise consult
with members of the public and affected
agencies concerning each proposed

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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.

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The PRA also requires agencies to
estimate the total annual reporting
‘‘non-hour cost’’ burden to respondents
or recordkeepers resulting from the
collection of information. If you have
costs to generate, maintain, and disclose
this information, you should comment
and provide your total capital and
startup cost components or annual
operation, maintenance, and purchase
of service components. You should
describe the methods you use to
estimate major cost factors, including
system and technology acquisition,
expected useful life of capital
equipment, discount rate(s), and the
period over which you incur costs.

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Federal Register / Vol. 73, No. 149 / Friday, August 1, 2008 / Notices
Capital and startup costs include,
among other items, computers and
software you purchase to prepare for
collecting information; monitoring,
sampling, and testing equipment; and
record storage facilities. Generally, your
estimates should not include equipment
or services purchased: (i) Before October
1, 1995; (ii) to comply with
requirements not associated with the
information collection; (iii) for reasons
other than to provide information or
keep records for the Government; or (iv)
as part of customary and usual business
or private practices.
We will summarize written responses
to this notice and address them in our
ICR submission for OMB approval,
including appropriate adjustments to
the estimated burden. We will provide
a copy of the ICR to you without charge
upon request. The ICR also will be
posted at http://www.mrm.mms.gov/
Laws_R_D/FRNotices/FRInfColl.htm.
Public Comment Policy: We will post
all comments in response to this notice
at http://www.mrm.mms.gov/Laws_R_D/
FRNotices/FRInfColl.htm. We also will
make copies of the comments available
for public view, including names and
addresses of respondents, during regular
business hours at our offices in
Lakewood, Colorado. Before including
your address, phone number, e-mail
address, or other personal identifying
information in your comment, be
advised that your entire comment—
including your personal identifying
information—may be made publicly
available at any time. While you can ask
us in your comment to withhold from
public view your personal identifying
information, we cannot guarantee that
we will be able to do so.
MMS Information Collection
Clearance Officer: Arlene Bajusz (202)
208–7744.
Dated: July 21, 2008.
Richard J. Adamski,
Acting Associate Director for Minerals
Revenue Management.
[FR Doc. E8–17730 Filed 7–31–08; 8:45 am]
BILLING CODE 4310–MR–P

DEPARTMENT OF THE INTERIOR

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Minerals Management Service
Request for Comments on the
Preparation of a 5-Year Outer
Continental Shelf (OCS) Oil and Gas
Leasing Program
Minerals Management Service
(MMS), Interior.

AGENCY:
ACTION:

Request for Comments.

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SUMMARY: Section 18 of the OCS Lands
Act (43 U.S.C. 1344) requires the
Department of the Interior to solicit
information from interested and affected
parties during the preparation of a 5year OCS oil and gas leasing program.
The current 5-year program covers the
period July 2007 to June 30, 2012. The
Department’s MMS is soliciting
information on whether to begin a new
Program for mid-2010 to mid-2015
(approximate dates) to succeed the
current one.
Section 18 requires completion of a
multi-step process of public
consultation and analysis before the
Secretary of the Interior may approve a
new 5-Year Program. The section 18
process includes the following required
steps: This initial solicitation of
comments; development of a draft
proposed program, a proposed program,
a proposed final program; and
Secretarial approval. If the decision is
made to prepare a new 5-Year Program,
the MMS will also prepare appropriate
NEPA analysis documents. The public
will have opportunities to comment on
the draft proposed program, the draft
EIS or other NEPA documents, and the
proposed program. This Notice in
particular requests comments on areas
that are restricted from leasing by
Congressional Moratoria but were
removed from Presidential Withdrawal
on July 14, 2008.
DATES: The MMS must receive all
comments and information by
September 15, 2008.

Public Comment Procedure
The MMS will accept comments in
one of two formats: By mail or our
Internet commenting system. Please
submit your comments using only one
of these formats, and include full names
and addresses. Comments submitted by
other means may not be considered. We
will not consider anonymous
comments, and we will make available
for inspection in their entirety all
comments submitted by organizations
and businesses, or by individuals
identifying themselves as
representatives of organizations and
businesses.
Our practice is to make comments,
including the names and home
addresses of respondents, available for
public review. An individual
commenter may ask that we withhold
from the public record, his or her name,
home address, or both, and we will
honor such a request to the extent
allowable by law. If you submit
comments and desire that we withhold
such information, you must so state
prominently at the beginning of your
submission.

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Mail comments and
information on the program to: Ms.
Renee Orr, 5-Year Program Manager,
Minerals Management Service (MS–
4010), 381 Elden Street, Herndon,
Virginia 20170. Environmental
comments and information relevant to
oil and gas development on the OCS
should be sent to: Mr. James F. Bennett,
Chief, Branch of Environmental
Assessment, Minerals Management
Service (MS–4042), 381 Elden Street,
Herndon, Virginia 20170. If you submit
any privileged or proprietary
information to be treated as
confidential, please mark the envelope,
‘‘Contains Confidential Information’’.
Internet: The MMS will accept
comments submitted to our electronic
public comment system. (Public
Connect). This system can be accessed
at http://www.mms.gov. We also will
provide access to information
concerning the 5-Year Program at the
MMS Internet Web site (http://
www.mms.gov) and copies or summaries
of comments we receive in response to
this notice will be available in the MMS
Public Connect database.
FOR FURTHER INFORMATION CONTACT: Ms.
Renee Orr, 5-Year Program Manager, at
(703) 787–1215.
SUPPLEMENTARY INFORMATION: The MMS
requests comments from states; local
and tribal governments; American
Indian and Native Alaskan
organizations; Federal agencies;
environmental and fish and wildlife
organizations; the oil and gas industry;
other interested organizations; and other
parties on whether to begin the
preparation of a new 5-Year Program.
MMS is seeking a wide range of
information, including marine
productivity, environmental sensitivity
and resource assessment. The 5-Year
Program enables the Federal
Government, states, industry, and other
interested parties to plan for steps
proposed to lead to OCS oil and gas
lease sales. The Department will make
a decision on whether to proceed with
a specific lease sale on the schedule,
only after meeting all of the applicable
requirements of the OCS Lands Act, the
National Environmental Policy Act
(NEPA), and other statutes.
The OCS is a significant source of oil
and gas for the Nation’s energy supply.
On a per day basis, the OCS currently
produces about 1.35 million barrels of
oil and almost 8 billion cubic feet of
natural gas. This represents
approximately 27 percent of domestic
oil production and 15 percent of natural
gas production.
The MMS’s oversight and regulatory
frameworks ensure production and
ADDRESSES:

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