In accordance with 5 CFR 1320, OMB is withholding approval at this time. Prior to publication of the final rule, the agency must submit to OMB a summary of all comments related to the information collection contained in the proposed rule and the agency response. The agency should clearly indicate any changes made to the information collection as a result of these comments.
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ONRR proposes to amend the regulations to provide guidance to lessees and designees for the purposes of reporting royalties on the required volume allocations of Federal oil and gas production.
On August 13, 1996, Congress enacted the Federal Oil and Gas Royalty Simplification and Fairness Act (RSFA), Pub. L. 104-185, as corrected by Pub. L. 104-200-Sept. 22, 1996. The RSFA amends portions of the Federal Oil and Gas Royalty Management Act of 1982 (FOGRMA), 30 U.S.C. 1701 et seq.
The proposed rule, RIN 1012-AA02, would (1) remove Federal leases from 30 CFR 1202.100(e)(2); (2) establish a new part 1205 containing new information collections; and
(3) make a technical amendment to the table at 30 CFR 1210.10 by adding the OMB control number for the new information collection request (ICR).
This new ICR would collect information necessary to implement section 6(d) of RSFA and change the way all lessees and designees report and pay on the required volume allocations of Federal oil and gas production. Section 6(d) of RSFA requires lessees or designees of a 100-percent Federal unit or communitization agreement to report on the basis of takes (based on the actual volume of production sold by, or on behalf of, the lessee).
It also requires a lessee or designee of a mixed unit or communitization agreement to report on the basis of entitlements (based on the volume of oil and gas produced from such agreement and allocated to the lease in accordance with the terms of the agreement.
Further, it allows a lessee to submit a request for an alternative method of royalty reporting and payment for units or communitization agreements, provided that all lessees contractually agree to such method and as long as such alternative method does not reduce the amount of the royalty obligation to the Federal Government.
Finally, section 6(d) provides for a marginal property reporting exception that would allow lessees to report and pay on their take volume each month and adjust to their entitled volume after the end of the calendar year rather than reporting and paying based on their entitled volume each month.
US Code:
30 USC 189
Name of Law: Public Lands
US Code:
30 USC 359
Name of Law: Acquired Lands
US Code:
30 USC 192
Name of Law: The Mineral Leasing Act of 1920, Section 36, as amended
US Code:
43 USC 1353
Name of Law: Outer Continental Shelf Lands Act of 1953, Section 27, as amended
US Code:
30 USC 1701 et. seq.--Jan 12, 1983
Name of Law: Federal Oil and Gas Royalty Management Act
PL:
Pub.L. 104 - 185 Aug. 13, 1996
Name of Law: Royalty Simplification and Fairness Act
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
30 CFR 1210.10.pdf
Termination of alternative method of reporting and payment