60 Day FRN

0002_Corrected_60-day_FRN_76 FR 78033_Dec 15 2011.pdf

30 CFR Parts 1202, 1206, and 1207, Indian Oil and Gas Valuation

60 Day FRN

OMB: 1012-0002

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Federal Register / Vol. 76, No. 241 / Thursday, December 15, 2011 / Notices
∧ Thence southerly, between sections 9 and
10, 15 and 16, 21 and 22, 27 and 28, 33 and
34, to the corner of sections 3, 4, 33 and 34,
Tps. 13 and 14 S., R. 3 W., Umiat Meridian;
∧ Thence westerly, between Tps. 13 and 14
S., to the corner of sections 4, 5, 32 and 33,
Tps. 13 and 14 S., R. 3 W., Umiat Meridian;
∧ Thence southerly, between sections 4 and
5, to the corner of sections 4, 5, 8 and 9, T.
14 S., R. 3 W., Umiat Meridian;
∧ Thence on an approximate forward
bearing of S. 45° W., to the corner of sections
7, 8, 17 and 18, T. 14 S., R. 3 W., Umiat
Meridian;
∧ Thence southerly, between sections 17
and 18, 19 and 20, to the corner of sections
19, 20, 29 and 30, T. 14 S., R. 3 W., Umiat
Meridian;
Thence easterly, between sections 20 and
29, 21 and 28, 22 and 27, 23 and 26, 24 and
25, 19 and 30, 20 and 29, to the corner of
sections 20, 21, 28 and 29, T. 14 S., R. 2 W.,
Umiat Meridian;
Thence southerly, between sections 28 and
29, 32 and 33, to the corner of sections 4, 5,
32 and 33, Tps. 14 and 15 S., R. 2 W., Umiat
Meridian;
Thence easterly, between Tps. 14 and 15
S., to the corner of Tps. 14 and 15 S., Rs. 1
and 2 W., Umiat Meridian;
Thence southerly, between Rs. 1 and 2 W.,
to the corner of sections 1, 6, 7 and 12, T.
15 S., Rs. 1 and 2 W., Umiat Meridian;
Thence easterly, between sections 6 and 7,
5 and 8, 4 and 9, 3 and 10, to the corner of
sections 2, 3, 10 and 11, T. 15 S., R. 1 W.,
Umiat Meridian;
Thence southerly, between sections 10 and
11, to the corner of sections 10, 11, 14 and
15, T. 15 S., R. 1 W., Umiat Meridian;
Thence easterly, between sections 11 and
14, 12 and 13, to the corner of sections 7, 12,
13 and 18, T. 15 S., Rs. 1 E. and 1 W., Umiat
Meridian;
Thence southerly, between Rs. 1 E. and 1
W., to the corner of sections 19, 24, 25 and
30, T. 15 S., Rs. 1 E. and 1 W., Umiat
Meridian, the place of beginning.

The effective date of this
boundary revision is November 12,
1996.

DATES:

Dated: November 15, 2011.
Sue E. Masica,
Regional Director, Alaska Region.
[FR Doc. 2011–32134 Filed 12–14–11; 8:45 am]
BILLING CODE 4310–HK–P

DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue

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[Docket No. ONRR–2011–0021]

Agency Information Collection
Activities: Proposed Collection,
Comment Request; Correction
Office of Natural Resources
Revenue (ONRR), Interior.
ACTION: Notice of an extension of a
currently approved information
collection.
AGENCY:

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16:49 Dec 14, 2011

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To comply with the
Paperwork Reduction Act of 1995
(PRA), we are inviting comments on a
collection of information requests that
we will submit to the Office of
Management and Budget (OMB) for
review and approval. The OMB formerly
approved this information collection
request (ICR) under OMB Control
Number 1010–0103. After the Secretary
of the Department of the Interior
established ONRR (the former Minerals
Revenue Management, a program under
the Minerals Management Service) on
October 1, 2010, OMB approved a new
series number for ONRR and
renumbered our ICRs. This ICR covers
the paperwork requirements in the
regulations under title 30, Code of
Federal Regulations (CFR), parts 1202,
1206, and 1207 (previously 30 CFR parts
202, 206, and 207). The revised title of
this ICR is ‘‘30 CFR Parts 1202, 1206,
and 1207, Indian Oil and Gas
Valuation.’’ There are five forms
associated with this information
collection. ONRR published this notice
on December 8th, 2011, at 76 FR 76746,
with an incorrect due date for
comments. This revised notice amends
the due date.
DATES: Submit written comments on or
before February 13, 2012.
ADDRESSES: You may submit comments
on this ICR to ONRR by any of the
following methods. Please use ‘‘ICR
1012–0002’’ as an identifier in your
comment.
• Electronically go to http://
www.regulations.gov. In the entry titled
‘‘Enter Keyword or ID,’’ enter ‘‘ONRR–
2011–0021’’ and then click ‘‘Search.’’
Follow the instructions to submit public
comments. The ONRR will post all
comments.
• Mail comments to Armand
Southall, Regulatory Specialist, Office of
Natural Resources, P.O. Box 25165, MS
64000A, Denver, Colorado 80225. Please
reference ICR 1012–0002 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 1012–0002
in your comments.
FOR FURTHER INFORMATION CONTACT:
Armand Southall, telephone (303) 231–
3221, or email
[email protected]. You may
also contact Mr. Southall 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. You may also review the
SUMMARY:

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information collection online at http://
www.reginfo.gov/public/PRAMain.
SUPPLEMENTARY INFORMATION:
Title: 30 CFR parts 1202, 1206, and
1207, Indian Oil and Gas Valuation.
OMB Control Number: 1012–0002.
Bureau Form Number: Forms MMS–
4109, MMS–4110, MMS–4295, MMS–
4410, and MMS–4411.
Note: The ONRR will publish a rule
updating our form numbers to Forms ONRR–
4109, ONRR–4110, ONRR–4295, ONRR–
4410, and ONRR–4411.

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 on Federal
and Indian lands and the OCS, collect
the royalties and other mineral revenues
due, and distribute the funds in
accordance with those laws. Applicable
laws pertaining to mineral leases on
Federal and Indian lands and the OCS
are posted on our Web site at http://
www.onrr.gov/Laws_R_D/
PublicLawsAMR.htm.
The Secretary also has a trust
responsibility to manage Indian lands
and seek advice and information from
Indian beneficiaries. The ONRR
performs the minerals revenue
management functions and assists the
Secretary in carrying out the
Department’s trust responsibility for
Indian lands. 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.
Effective October 1, 2010, ONRR
reorganized and transferred their
regulations from chapter II to chapter
XII in title 30 of the Code of Federal
Regulations (CFR), resulting in a change
in our citations. Information collections
covered in this ICR are found at 30 CFR
part 1202, subparts C and J, which
pertain to royalties; part 1206, subparts
B and E, which govern the valuation of
oil and gas produced from leases on
Indian lands; and part 1207, which
pertains to recordkeeping. All data
reported is subject to subsequent audit
and adjustment.
Indian Oil
Regulations at 30 CFR part 1206,
subpart B, govern the valuation for

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Federal Register / Vol. 76, No. 241 / Thursday, December 15, 2011 / Notices

royalty purposes of all oil produced
from Indian oil and gas leases (tribal
and allotted), except leases on the Osage
Indian Reservation, and are consistent
with mineral leasing laws, other
applicable laws, and lease terms.
Generally, the regulations provide that
lessees determine the value of oil based
upon the higher of (1) The gross
proceeds under an arm’s-length
contract; or (2) major portion analysis.
The value determined by the lessee may
be eligible for a transportation
allowance.
From information collected on Form
MMS–4110, Oil Transportation
Allowance Report, ONRR and tribal
audit personnel evaluate (1) Whether
lessee-reported transportation
allowances are within regulatory
allowance limitations and calculated in
accordance with applicable regulations;
and (2) whether the lessees reported and
paid the proper amount of royalties.
Indian Gas
Regulations at 30 CFR part 1206,
subpart E, govern the valuation for
royalty purposes of natural gas
produced from Indian oil and gas leases
(tribal and allotted). 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 1206.176 or
alternative dual accounting as defined
in 30 CFR 1206.173. 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

exceed a regulatory allowance limit,
lessees must (1) Submit a letter to ONRR
explaining why a higher allowance limit
is necessary; and (2) provide supporting
documentation, including a completed
Form MMS–4393. This form provides
ONRR with the data necessary to make
a decision whether to approve or deny
the request and track deductions on
royalty reports.

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
leases. This reporting requirement
ensures that Indian lessors receive all
royalties due and aids ONRR
compliance efforts.
From information collected on Form
MMS–4295, Gas Transportation
Allowance Report, ONRR and tribal
audit personnel evaluate (1) Whether
lessee-reported transportation
allowances are within regulatory
allowance limitations and calculated in
accordance with applicable regulations;
and (2) whether the lessees reported and
paid the proper amount of royalties.
From information collected on Form
MMS–4109, Gas Processing Allowance
Summary Report, ONRR and tribal audit
personnel evaluate (1) Whether lesseereported processing allowances are
within regulatory allowance limitations
and calculated in accordance with
applicable regulations; and (2) whether
the lessees reported and paid the proper
amount of royalties.

OMB Approval
The ONRR will request OMB’s
approval to continue to collect this
information. Not collecting this
information would limit the Secretary’s
ability to discharge fiduciary duties and
may also result in the inability to
confirm the accurate royalty value to
Indian tribes and individual Indian
mineral owners. ONRR protects
proprietary information it receives, and
does not collect items of a sensitive
nature. The requirement to respond is
mandatory for Form MMS–4410,
Accounting for Comparison [Dual
Accounting], and Form MMS–4411,
Safety Net Report, under certain
circumstances. And, the lessees are
required to submit Forms MMS–4109,
MMS–4110, and MMS–4295 in order to
obtain a benefit.
Frequency of Response: Annually and
on occasion.
Estimated Number and Description of
Respondents: 148 Indian lessees.
Estimated Annual Reporting and
Recordkeeping ‘‘Hour’’ Burden: 1,309
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,
presently 1012–0005, 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

RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS
30 CFR

Hour
burden

Reporting and recordkeeping requirement

Average
number of
annual
responses

Annual
burden
hours

Part 1202—ROYALTIES
Subpart C—Federal and Indian Oil

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1202.101 ....................

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
1012–0004 (expires 12/31/2012). Burden covered under § 1210.52.

Subpart J—Gas Production From Indian Leases
1202.551(b) ................

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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. . .

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1012–0004. Burden covered under § 1210.52.

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Federal Register / Vol. 76, No. 241 / Thursday, December 15, 2011 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Average
number of
annual
responses

Hour
burden

30 CFR

Reporting and recordkeeping requirement

1202.551(c) ................

(c) You and all other persons paying royalties on the lease may ask
ONRR for permission . . . . to report entitlements. . .

1202.558(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:. . .

1

Annual
burden
hours
1

1

Burden covered under OMB Control Number
1012–0004. Burden covered under § 1210.52.

mstockstill on DSK4VPTVN1PROD with NOTICES

Part 1206—PRODUCT VALUATION
Subpart B—Indian Oil
1206.56(b)(2) ..............

Transportation allowances—general.
(b)(2) Upon request of a lessee, ONRR 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 ONRR to make a determination. . .

1206.57(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.

1206.57(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 § 1206.57(c)(1)(i) and (iii).

1206.57(a)(1)(iii) .........

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

AUDIT PROCESS. See note.

1206.57(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 ONRR approval.

Burden covered under § 1206.57(a)(3).

1206.57(a)(2)(ii) ..........

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

20

1

20

1206.57(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 ONRR. . . . The lessee
shall submit all available data to support its proposal. . .

40

1

40

1206.57(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 ONRR, unless ONRR
approves a longer period upon a showing of good cause by the
lessee. . .

Burden covered under § 1206.57(c)(2)(i) and (iii).

1206.57(b)(1) ..............

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

Burden covered under OMB Control Number
1012–0004. Burden covered under § 1210.52.

1206.57(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 ONRR.

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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

1206.57(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 ONRR approval. . .

20

1

20

1206.57(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 ONRR approval.

40

1

40

1206.57(b)(3)(ii) ..........

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

20

1

20

1206.57(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 ONRR. . . . The lessee shall submit all available data to support its proposal. . .

20

1

20

1206.57(b)(5) ..............

(b) Non-arm’s-length or no contract.
(5) A lessee may apply to ONRR 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

1206.57(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

1

4

1206.57(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
ONRR approves a longer period (during which period the lessee
shall continue to use the allowance from the previous reporting
period).

4

1

4

1206.57(c)(1)(iv) .........

(c) Reporting requirements.
(1) Arm’s-length contracts. (iv) ONRR 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 ONRR.

1206.57(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.

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AUDIT PROCESS. See note.

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Federal Register / Vol. 76, No. 241 / Thursday, December 15, 2011 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Average
number of
annual
responses

Hour
burden

Annual
burden
hours

30 CFR

Reporting and recordkeeping requirement

1206.57(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. . . .
ONRR must receive the Form MMS–4110 within 3 months after
the end of the previous reporting period, unless ONRR approves
a longer period (during which period the lessee shall continue to
use the allowance from the previous reporting period).

1206.57(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 § 1206.57(c)(2)(i).

1206.57(c)(2)(v) ..........

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

Burden covered under § 1206.57(c)(2)(i).

1206.57(c)(2)(vi) .........

(c) Reporting requirements.
(2) Non-arm’s-length or no contract.
(vi) Upon request by ONRR, 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 ONRR.

AUDIT PROCESS. See note.

1206.57(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
1012–0004. Burden covered under § 1210.52.

1206.59 ......................

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

1206.61(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
ONRR, Indian representatives, or other authorized persons.
(b) You must retain all data relevant to the determination of royalty
value. . .

6

20

1

1

6

20

AUDIT PROCESS. See note.

Part 1206—PRODUCT VALUATION
Subpart E—Indian Gas

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1206.172(b)(1)(ii) ........

1206.172(e)(6)(i) and
(iii).

VerDate Mar<15>2010

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; . . .
(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
ONRR on Form MMS–4411, Safety Net Report, no later than
June 30 following each calendar year; . . .
(iii) ONRR 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. . .

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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Reporting and recordkeeping requirement

1206.172(e)(6)(ii) ........

(e) Determining the minimum value for royalty purposes of gas sold
beyond the first index pricing point.

1206.172(f)(1)(ii),
(f)(2), and (f)(3).

1206.173(a)(1) ............

Average
number of
annual
responses

Hour
burden

30 CFR

Annual
burden
hours

Burden covered under OMB Control Number
1012–0004. Burden covered under § 1210.52.

(6)(ii) You must pay and report on Form MMS–2014 additional royalties due no later than June 30 following each calendar
year;. . .
(f) Excluding some or all tribal leases from valuation under this section.
(1) An Indian tribe may ask ONRR 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, ONRR 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 ONRR S to terminate exclusion of its
leases from valuation under this section. . .
(3) The Indian tribe’s request to ONRR under either paragraph (f)(1)
or (2) of this section must be in the form of a tribal resolution. . .
How do I calculate the alternative methodology for dual accounting?

40

1

40

2

12

24

(a) Electing a dual accounting method.
(1) . . . You may elect to perform the dual accounting calculation
according to either § 1206.176(a) (called actual dual accounting),
or paragraph (b) of this section (called the alternative methodology for dual accounting).
1206.173(a)(2) ............

(a) Electing a dual accounting method.

Burden covered under § 1206.173(a)(1).

(2) You must make a separate election to use the alternative methodology for dual accounting for your Indian leases in each ONRR
S-designated area. . .
1206.174(a)(4)(ii) ........

How do I value gas production when an index-based method
cannot be used?

Burden covered under OMB Control Number
1012–0004. Burden covered under § 1210.52.

(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 ONRR by the due date specified in
the written notice from ONRR of the major portion value. . .
1206.174(b)(1)(i) and
(iii); (b)(2); (d)(2).

(b) Arm’s-length contracts.

AUDIT PROCESS. See note.

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(1)(i) You have the burden of demonstrating that your contract is
arm’s-length. . .
(iii) . . . In these circumstances, ONRR will notify you and give you
an opportunity to provide written information justifying your
value. . .
(2) ONRR 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 ONRR or Indian representatives, to the Office of the Inspector General of the Department, or other authorized persons. . .
1206.174(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.

1206.174(f) .................

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

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Federal Register / Vol. 76, No. 241 / Thursday, December 15, 2011 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Average
number of
annual
responses

Hour
burden

Annual
burden
hours

30 CFR

Reporting and recordkeeping requirement

1206.175(d)(4) ............

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

1206.176(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
§ 1206.173 instead of the provisions in paragraph (a) of this section.

Burden covered under § 1206.173(a)(1).

1206.176(c) ................

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

Burden covered under § 1206.172(b)(1)(ii).

20

1

20

Transportation Allowances
1206.177(c)(2) and
(c)(3).

What general requirements regarding transportation allowances apply to me?
(c)(2) If you ask ONRR, ONRR 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 ONRR to
make a determination.

1206.178(a)(1)(i) ........

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

1206.178(a)(1)(iii) .......

(a) Determining a transportation allowance under an arm’s-length
contract.
(1)(iii) If ONRR 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, ONRR will notify you
and give you an opportunity to provide written information justifying your transportation costs.

1206.178(a)(2)(i) and
(ii).

(a) Determining a transportation allowance under an arm’s-length
contract.
(2)(i) . . . you cannot take an allowance for the costs of transporting
lease production that is not royalty bearing without ONRR approval, or without lessor approval on tribal leases.
(ii) As an alternative to paragraph (a)(2)(i) of this section, you may
propose to ONRR a cost allocation method based on the values
of the products transported.
(a) Determining a transportation allowance under an arm’s-length
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 ONRR.
(ii) You are required to submit all relevant data to support your allocation proposal.
(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 ONRR on Form MMS–4295, Gas Transportation
Allowance Report, within 3 months after the end of the 12-month
period to which the allowance applies.

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1206.178(a)(3)(i) and
(ii).

1206.178(b)(1)(ii) ........

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Burden covered under § 1206.56(b)(2).

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1

18

18

AUDIT PROCESS. See note.

20

1

20

40

1

40

15

5

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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Reporting and recordkeeping requirement

1206.178(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 ONRR approval.
(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 ONRR approval.
(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 ONRR approval.
(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 ONRR a cost allocation method
based on the values of the products transported.
(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 ONRR. . . . You are required to submit all relevant
data to support your proposal.

1206.178(b)(2)(iv)(A) ..

1206.178(b)(3)(i) ........

1206.178(b)(3)(ii) ........

1206.178(b)(5) ............

Average
number of
annual
responses

Hour
burden

30 CFR

Annual
burden
hours

20

1

20

20

1

20

40

1

40

20

1

20

40

1

40

1206.178(d)(1) ............

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

AUDIT PROCESS. See note.

1206.178(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
1218.54 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
1012–0004. Burden covered under § 1210.52.

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Processing Allowances
1206.180(a)(1)(i) ........

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

1206.180(a)(1)(iii) .......

(a) Determining a processing allowance if you have an arm’s-length
processing contract.
(1)(iii) If ONRR 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, ONRR will notify you and
give you an opportunity to provide written information justifying
your processing costs.

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2

AUDIT PROCESS. See note.

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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Reporting and recordkeeping requirement

1206.180(a)(3) ............

(a) Determining a processing allowance if you have an arm’s-length
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 ONRR. . . . You are required to
submit all relevant data to support your proposal.
(b) Determining a processing allowance if you have a non-arm’slength contract or no contract.
(1)(ii) . . . You must submit the actual cost information to support
the allowance to ONRR 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.
(b) Determining a processing allowance if you have a non-arm’slength 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 ONRR approval.
(b) Determining a processing allowance if you have a non-arm’slength contract or no contract.
(2)(iv)(A) . . . Once you make an election, you may not change
methods without ONRR approval.
(b) Determining a processing allowance if you have a non-arm’slength 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
ONRR agree to an alternative.

1206.180(b)(1)(ii) ........

1206.180(b)(2)(iv) .......

1206.180(b)(2)(iv)(A) ..

1206.180(b)(3) ............

Average
number of
annual
responses

Hour
burden

30 CFR

Annual
burden
hours

40

1

40

20

12

240

20

1

20

20

1

20

20

1

20

1206.180(c)(1) ............

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

AUDIT PROCESS. See note.

1206.180(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
1218.54 from the first day of the first month you deducted a processing allowance until the date you pay the royalties due.

Burden covered under OMB Control Number
1012–0004. Burden covered under § 1210.52.

1206.181(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 ONRR (for tribal leases) or ONRR (for allotted leases)
with your supporting documentation submitted to ONRR. If ONRR
does not take action on your proposal within 120 days, the proposal will be deemed to be denied and subject to appeal to the
ONRR Director under 30 CFR part 1290.

40

1

PART 1207—SALES AGREEMENTS OR CONTRACTS GOVERNING THE DISPOSAL OF LEASE PRODUCTS
Subpart A—General Provisions

mstockstill on DSK4VPTVN1PROD with NOTICES

1207.4(b) ....................

VerDate Mar<15>2010

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.

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AUDIT PROCESS. See note.

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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Hour
burden

30 CFR

Reporting and recordkeeping requirement

1207.5 ........................

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 ONRR, State or Indian representatives,
other ONRR or BLM officials, auditors of the General Accounting
Office, or other persons authorized to receive such documents, or
shall be submitted to ONRR within a reasonable period of time,
as determined by ONRR. 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 1212.

Average
number of
annual
responses

Annual
burden
hours

AUDIT PROCESS. See note.

TOTAL BURDEN .............................................................................................................................................

148

1,309

mstockstill on DSK4VPTVN1PROD 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 ONRR 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
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.
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

VerDate Mar<15>2010

16:49 Dec 14, 2011

Jkt 226001

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.
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. We also will post the ICR
at http://www.onrr.gov/Laws_R_D/
FRNotices/FRInfColl.htm.
Public Comment Policy: We will post
all comments, including names and
addresses of respondents, at http://
www.regulations.gov. Before including
your address, phone number, email
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.

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Office of the Secretary, Information
Collection Clearance Officer: Laura
Dorey (202) 208–2654.
Dated: December 12, 2011.
Gregory J. Gould,
Director, Office of Natural Resources Revenue
[FR Doc. 2011–32158 Filed 12–14–11; 8:45 am]
BILLING CODE 4310–T2–P

INTERNATIONAL TRADE
COMMISSION
[DN 2864]

Certain Silicon Microphone Packages
and Products Containing Same
Receipt of Complaint; Solicitation of
Comments Relating to the Public
Interest
U.S. International Trade
Commission.
ACTION: Notice.
AGENCY:

Notice is hereby given that
the U.S. International Trade
Commission has received a complaint
entitled In Re Certain Silicon
Microphone Packages and Products
Containing Same, DN 2864; the
Commission is soliciting comments on
any public interest issues raised by the
complaint.
FOR FURTHER INFORMATION CONTACT:
James R. Holbein, Secretary to the
Commission, U.S. International Trade
Commission, 500 E Street SW.,
Washington, DC 20436, telephone (202)
205–2000. The public version of the
complaint can be accessed on the
Commission’s electronic docket (EDIS)
at http://edis.usitc.gov, and will be
available for inspection during official
business hours (8:45 a.m. to 5:15 p.m.)
SUMMARY:

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