30-Day FRN

0002_30-Day_77FR43355_072412.pdf

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

30-Day FRN

OMB: 1012-0002

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Federal Register / Vol. 77, No. 142 / Tuesday, July 24, 2012 / Notices
MISSOURI

TENNESSEE

Jasper County

Overton County
American Legion Bohannon Post #4, 121 S.
Church St., Livingston, 12000489

Joplin Furniture Company Building, (Historic
Resources of Joplin, Missouri) 702–708
Main St., Joplin, 12000473
St. Louis County

Walworth County
Elkhorn Band Shell, Sunset Park, bounded by
Devendorf, W. Centralia, & Park Sts.,
Elkhorn, 12000490
Elkhorn Municipal Building, 9 S. Broad St.,
Elkhorn, 12000491
A request for removal has been made for
the following property:

North Taylor Avenue Historic District,
(Kirkwood MPS) Roughly bounded by
Manchester Rd., E. Adams, & N. Taylor
Aves., Kirkwood, 12000474
NEW YORK
Erie County
American Grain Complex, (Buffalo Grain and
Materials Elevator MPS) 87 Childs St.,
Buffalo, 12000475
Buffalo Meter Company Building, 2917 Main
St., Buffalo, 12000476
Essex County

SOUTH DAKOTA

[FR Doc. 2012–17965 Filed 7–23–12; 8:45 am]

[FR Doc. 2012–17971 Filed 7–23–12; 8:45 am]

DEPARTMENT OF THE INTERIOR

Big Moose Community Chapel, 1544 Big
Moose Rd., Eagle Bay, 12000478

Bureau of Ocean Energy Management
(BOEM)

Kings County

Notice of Availability of the Proposed
Notice of Sale for Outer Continental
Shelf (OCS) Oil and Gas Lease Sale
229 in the Western Planning Area
(WPA) in the Gulf of Mexico

Wallabout Industrial Historic District,
Clinton, Flushing, Grand, Park,
Washington, & Waverly Aves., Hall, &
Ryerson Sts., Brooklyn, 12000479
Onondaga County
St. Patrick’s Church Complex, 216 N. Lowell
Ave., Syracuse, 12000480
Schoharie County
First Presbyterian Church of Jefferson,
Creamery St. at Park Ave., Jefferson,
12000481

Bureau of Ocean Energy
Management, Interior.
ACTION: Notice of Availability of the
Proposed Notice of Sale for Proposed
Sale 229.
AGENCY:

BOEM announces the
availability of the Proposed Notice of
Sale (NOS) for proposed Sale 229 in the
WPA. This sale will be the first under
the Proposed Final OCS Oil and Gas
Leasing Program for 2012–2012. With
regard to oil and gas leasing on the OCS,
the Secretary of the Interior, pursuant to
section 19 of the OCS Lands Act,
provides the affected states the
opportunity to review the proposed
NOS. The proposed NOS sets forth the
proposed terms and conditions of the
sale, including minimum bids, royalty
rates, and rentals.
DATES: Affected states may comment on
the size, timing, and location of
proposed Sale 229 within 60 days
following their receipt of the proposed
NOS. The final NOS will be published
in the Federal Register at least 30 days
prior to the date of bid opening. Bid
opening is currently scheduled for
November 28, 2012.
SUPPLEMENTARY INFORMATION: This
Notice is published pursuant to 30 CFR
556.29(c) as a matter of information to
the public. The proposed NOS for Sale
229 and a ‘‘Proposed Notice of Sale
SUMMARY:

Tioga County
Beecher, James C., House, 560 5th Ave.,
Owego, 12000482
OREGON
Coos County
Marshfield I.O.O.F. Cemetery, 750 Ingersoll
Rd., Coos Bay, 12000483
Morrow County
Hardman I.O.O.F. Lodge Hall, 51186 OR 207,
Hardman, 12000484
SOUTH DAKOTA
Hughes County
Pringle House, 102 N. Jefferson, Pierre,
12000485
Jones County
Weigandt Barn, 27285 Silver Valley Rd.,
Murdo, 12000486
Pennington County
Chapel in the Hills, 3788 Chapel Ln., Rapid
City, 12000487
Golden Summit Mine Foreman’s Cabin,
24085 Palmer Gulch Rd., Hill City,
12000488

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BILLING CODE 4310–MR–P

Office of Natural Resources Revenue
DEPARTMENT OF THE INTERIOR

21:06 Jul 23, 2012

Dated: July 13, 2012.
Tommy P. Beaudreau,
Director, Bureau of Ocean Energy
Management.

Coddington County
Appleby Atlas Elevator, 6 mi. S of jct. of US
212 and I 29, Watertown, 90000957

Herkimer County

VerDate Mar<15>2010

Package’’ containing essential
information for potential bidders may be
obtained from the Public Information
Unit, Gulf of Mexico Region, Bureau of
Ocean Energy Management, 1201
Elmwood Park Boulevard, New Orleans,
Louisiana 70123–2394. Telephone: (504)
736–2519.
Agency Contact: Donna Dixon,
Leasing Division Chief, Donna.Dixon@
boem.gov.

BILLING CODE 4312–51–P

VERGENNES (canal boat), Address
Restricted, Westport, 12000477

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WISCONSIN

43355

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[Docket No. ONRR–2011–0021]

Agency Information Collection
Activities: Submitted for Office of
Management and Budget Review,
Comment Request
Office of Natural Resources
Revenue, Interior.
ACTION: Notice of an extension of a
currently approved information
collection (OMB Control Number 1012–
0002).
AGENCY:

To comply with the
Paperwork Reduction Act of 1995
(PRA), the Office of Natural Resources
Revenue (ONRR) is notifying the public
that we have submitted to the Office of
Management and Budget (OMB) an
information collection request (ICR) to
renew approval of the paperwork
requirements in the regulations under
30 CFR parts 1202, 1206, and 1207. This
notice also provides the public with a
second opportunity to comment on the
paperwork burden of these regulatory
requirements.

SUMMARY:

Submit written comments on or
before August 23, 2012.
ADDRESSES: Submit written comments
by either FAX (202) 395–5806 or email
([email protected]) directly to
the Office of Information and Regulatory
Affairs, OMB, Attention: Desk Officer
for the Department of the Interior (OMB
Control Number 1012–0002).
You may submit a copy of your
comments to ONRR by one of the
following methods (please use ‘‘ICR
1012–0002’’ as an identifier in your
comments):
• Electronically, go to http://
www.regulations.gov. In the ‘‘Search’’
box, enter ‘‘ONRR–2011–0021,’’ then
click ‘‘Search.’’ Follow the instructions
DATES:

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Federal Register / Vol. 77, No. 142 / Tuesday, July 24, 2012 / Notices

to submit public comments. ONRR will
post all comments.
• Mail comments to Armand
Southall, Regulatory Specialist, ONRR,
P.O. Box 25165, MS 64000A, Denver,
Colorado 80225–0165.
• Hand-carry comments, or use an
overnight courier service, to the Office
of Natural Resources Revenue, Building
85, Room A–614, Denver Federal
Center, West 6th Ave. and Kipling St.,
Denver, Colorado 80225.
FOR FURTHER INFORMATION CONTACT:
Armand Southall at (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 us to collect the
information. You may also review the
information collection request online at
http://www.reginfo.gov/public/do/
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.

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Note: 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 United
States Department of the Interior is
responsible for mineral resource
development on Federal and Indian
lands and the Outer Continental Shelf
(OCS). Various laws require the
Secretary to manage mineral resource
production from Federal and Indian
lands and the OCS, collect the royalties
and other mineral revenues due, and
distribute the collected funds in
accordance with applicable laws. The
Secretary also has a trust responsibility
to manage Indian lands and seek advice
and information from Indian
beneficiaries. ONRR performs the
minerals revenue management functions
for the Secretary and assists the
Secretary in carrying out the
Department’s trust responsibility for
Indian lands. Public laws pertaining to
mineral leases on Federal and Indian
lands are available at http://www.onrr.
gov/Laws_R_D/PublicLawsAMR.htm.
Information collections that we cover
in this ICR are available at 30 CFR part
1202, subparts C and J, which pertain to
royalties; part 1206, subparts B and E,
which govern the valuation of produced
oil and gas from leases on Indian lands;
and part 1207, which pertains to
recordkeeping. Indian Tribes and
individual Indian mineral owners
receive all royalties that generate from

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21:06 Jul 23, 2012

Jkt 226001

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 that lessees
remove from their lands. Failure to
collect the data that we describe in this
ICR could result in the undervaluation
of leased minerals on Indian lands. All
reported data is subject to subsequent
audit and adjustment.
Indian Oil
Regulations at 30 CFR part 1206,
subpart B, govern the valuation, for
royalty purposes, of all oil that Indian
oil and gas leases (tribal and allotted)
produce, 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 that a lessee determines 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 that
Indian oil and gas leases (tribal and
allotted) produce. 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
produced gas from the lease. Lessees
must elect to perform actual dual
accounting, as we define in 30 CFR
1206.176, or alternative dual
accounting, as we define in 30 CFR
1206.173. Lessees use Form MMS–4410,
Accounting for Comparison [Dual
Accounting], to certify that dual
accounting is not an ONRR requirement
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 they sell gas production
from an Indian oil or gas lease beyond
the first index pricing point. The safety

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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 royalty.
Indian Oil and Gas
Lessees must use Form MMS–4393,
Request to Exceed Regulatory
Allowance Limitation, for both Federal
and Indian leases. Most of the burden
hours occur on Federal leases; therefore,
this is an ONRR-approved form under
ICR 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 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.
Summary
We are requesting 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
that it receives and does not collect
items of a sensitive nature. The
requirement to report is mandatory for
Form MMS–4410, Accounting for
Comparison [Dual Accounting], and for
Form MMS–4411, Safety Net Report,
under certain circumstances. For all
other forms in this collection, the

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Federal Register / Vol. 77, No. 142 / Tuesday, July 24, 2012 / Notices
requirement to report is mandatory 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: 2,269
hours.
We have not included in our
estimates certain requirements that
occur in the normal course of business

and that we consider usual and
customary. The following chart shows
the estimated burden hours by CFR
section and paragraph:

RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS
30 CFR

Reporting and recordkeeping requirement

Average
number of
annual
responses

Hour burden

Annual
burden hours

PART 1202—ROYALTIES
Subpart C—Federal and Indian Oil
1202.101 .................................

Standards for reporting and paying royalties .........................

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

Oil volumes are to be reported in barrels of clean oil of 42
standard U.S. gallons (231 cubic inches each) at 60 °F
* * *.
Subpart J—Gas Production From Indian Leases
1202.551(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 * * *.

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:

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

1

1

1

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

Part 1206—PRODUCT VALUATION
Subpart B—Indian Oil

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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 * * *.

4

1

4

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.

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Federal Register / Vol. 77, No. 142 / Tuesday, July 24, 2012 / Notices

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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Annual
burden hours

Reporting and recordkeeping requirement

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.

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.

20

1

20

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

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Hour burden

Average
number of
annual
responses

30 CFR

Burden covered under § 1206.57(a)(3).

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Federal Register / Vol. 77, No. 142 / Tuesday, July 24, 2012 / Notices

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

Reporting and recordkeeping requirement

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.

AUDIT PROCESS. See note.

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.

6

1

6

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).

6

1

6

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.

AUDIT PROCESS. See note.

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Hour burden

Annual
burden hours

30 CFR

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Federal Register / Vol. 77, No. 142 / Tuesday, July 24, 2012 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
30 CFR

Reporting and recordkeeping requirement

Average
number of
annual
responses

Hour burden

Annual
burden hours

(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..
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 * * *.

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 * * *.

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

20

1

20

AUDIT PROCESS. See note.

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PART 1206—PRODUCT VALUATION
Subpart E—Indian Gas
1206.172(b)(1)(ii) ....................

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; * * *

4

58

232

1206.172(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 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 * * *.

3

11

33

1206.172(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 * * *.

1206.172(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 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 * * *.

40

1

40

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

How do I calculate the alternative methodology for dual accounting?

2

12

24

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Federal Register / Vol. 77, No. 142 / Tuesday, July 24, 2012 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
30 CFR

Reporting and recordkeeping requirement

Hour burden

Average
number of
annual
responses

Annual
burden hours

sroberts on DSK5SPTVN1PROD with NOTICES

(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 ..................................
(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 * * *.

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

1206.174(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 ONRR by the due date
specified in the written notice from ONRR of the major
portion value * * *.

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

1206.174(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, 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 * * *.

AUDIT PROCESS. See note.

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.

Burden covered under OMB Control Number
1012–0004.

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
* * *.

40

1

40

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 * * *.

20

1

20

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).

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

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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 * * *.

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Federal Register / Vol. 77, No. 142 / Tuesday, July 24, 2012 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
30 CFR

Reporting and recordkeeping requirement

Average
number of
annual
responses

Hour burden

Annual
burden hours

sroberts on DSK5SPTVN1PROD with NOTICES

(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’slength 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.

1

18

18

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

(a) Determining a transportation allowance under an arm’slength 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.

AUDIT PROCESS. See note.

1206.178(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 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 * * *.

20

1

20

1206.178(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
ONRR * * *.
(ii) You are required to submit all relevant data to support
your allocation proposal * * *.

40

1

40

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

(b) Determining a transportation allowance under a nonarm’s-length 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 * * *.

15

5

75

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

(b) Determining a transportation allowance under a nonarm’s-length 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.

20

1

20

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

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

20

1

20

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

(b) Determining a transportation allowance under a nonarm’s-length contract or no contract.

40

1

40

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Federal Register / Vol. 77, No. 142 / Tuesday, July 24, 2012 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
30 CFR

Reporting and recordkeeping requirement

Average
number of
annual
responses

Hour burden

Annual
burden hours

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

(b) Determining a transportation allowance under a nonarm’s-length 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 * * *.

20

1

20

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

(b) Determining a transportation allowance under a nonarm’s-length 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 * * *.

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. .........................

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

(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.

sroberts on DSK5SPTVN1PROD with NOTICES

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.

1

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.

AUDIT PROCESS. See note.

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

(a) Determining a processing allowance if you have an
arm’s-length processing contract.

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Federal Register / Vol. 77, No. 142 / Tuesday, July 24, 2012 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
30 CFR

Reporting and recordkeeping requirement

Hour burden

Average
number of
annual
responses

Annual
burden hours

(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 * * *.
1206.180(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 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 * * *.

100

12

1,200

1206.180(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 ONRR approval.

20

1

20

1206.180(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 ONRR approval * * *.

20

1

20

1206.180(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 ONRR agree to an alternative.

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 ...............................

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

(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 * * *.

sroberts on DSK5SPTVN1PROD with NOTICES

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
1207.4(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.

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

Contract and sales agreement retention ................................

AUDIT PROCESS. See note.

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Federal Register / Vol. 77, No. 142 / Tuesday, July 24, 2012 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
30 CFR

Reporting and recordkeeping requirement

Hour burden

Average
number of
annual
responses

Annual
burden hours

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

.................................................................................................

........................

148

2,269

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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 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 does not have 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 in order 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 that the agency collects;
and (d) minimize the burden on the
respondents, including the use of
automated collection techniques or
other forms of information technology.
To comply with the public
consultation process, ONRR published a
notice in the Federal Register on
December 8, 2011 (76 FR 76746),
announcing that we would submit this
ICR to OMB for approval. (We published
an additional notice in the Federal
Register on December 15, 2011 (76 FR
78033) correcting the response date for
comments.) The notice provided the

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21:06 Jul 23, 2012

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required 60-day comment period. We
received no comments in response to
the notice.
If you wish to comment in response
to this notice, you may send your
comments to the offices that we listed
under the ADDRESSES section of this
notice. OMB has up to 60 days to
approve or disapprove the information
collection, but they may respond after
30 days. Therefore, to ensure maximum
consideration, OMB should receive
public comments by August 23, 2012.
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, you
should be aware that we may make your
entire comment—including your
personal identifying information—
publicly available at any time. While
you can ask us, in your comment, to
withhold your personal identifying
information from public view, we
cannot guarantee that we will be able to
do so.
Office of the Secretary, Information
Collection Clearance Officer: Laura
Dorey (202) 208–2654.
Dated: July 17, 2012.
Gregory J. Gould,
Director, Office of Natural Resources
Revenue.
[FR Doc. 2012–18079 Filed 7–23–12; 8:45 am]
BILLING CODE 4310–T2–P

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DEPARTMENT OF JUSTICE
Office of Justice Programs
[OMB Number 1121–0184]

Agency Information Collection
Activities: Proposed Collection;
Comments Requested; Reinstatement,
With Change, of Previously Approved
Collection for Which Approval Has
Expired: School Crime Supplement
(SCS) to the National Crime
Victimization Survey
60-day Notice of Information
Collection Under Review.

ACTION:

The Department of Justice (DOJ),
Office of Justice Programs, Bureau of
Justice Statistics will be submitting the
following information collection request
to the Office of Management and Budget
(OMB) for review and approval in
accordance with the Paperwork
Reduction Act of 1995. The proposed
information collection is published to
obtain comments from the public and
affected agencies. Comments are
encouraged and will be accepted for
‘‘sixty days’’ until September 24, 2012.
This process is conducted in accordance
with 5 CFR 1320.10.
If you have comments especially on
the estimated public burden or
associated response time, suggestions,
or need a copy of the proposed
information collection instrument with
instructions or additional information,
please contact Jennifer Truman,
Statistician, Bureau of Justice Statistics,
Office of Justice Programs, Department
of Justice, 810 7th Street NW.,
Washington, DC 20531, or facsimile
(202) 307–1463.

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