0010 Supporting Statement_082213cc

0010 Supporting Statement_082213cc.pdf

Solid Minerals and Geothermal Collections

OMB: 1012-0010

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Supporting Statement A
Solid Minerals and Geothermal Collections–
30 CFR Parts 1202, 1206, 1210, 1212, 1217, and 1218,
OMB Control Number 1012-0010
Terms of Clearance: None.
General Instructions
A completed Supporting Statement A must accompany each request for approval of a collection
of information. The Supporting Statement must be prepared in the format described below, and
must contain the information specified below. If an item is not applicable, provide a brief
explanation. The Office of Management and Budget (OMB) reserves the right to require the
submission of additional information with respect to any request for approval.
Specific Instructions
A. Justification
1. Explain the circumstances that make the collection of information necessary. Identify any
legal or administrative requirements that necessitate the collection.
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). The
Secretary’s responsibility, according to various laws, is to (1) manage mineral resource
production from Federal and Indian lands and the OCS, (2) collect the royalties and other
mineral revenues due, and (3) distribute the funds collected under those laws.
The Secretary also has a trust responsibility to manage Indian lands and seek advice and
information from Indian beneficiaries. The Office of Natural Resources Revenue (ONRR),
formerly Minerals Management Service (MMS), performs the minerals revenue management
functions for the Secretary and assists the Secretary in carrying out the Department’s trust
responsibility for Indian lands.
When a company or an individual enters into a lease to explore, develop, produce, and dispose of
minerals from Federal or Indian lands, that company or individual agrees to pay the lessor a
share in a value of production from the leased lands. The information collected includes data
necessary to ensure that royalties are valued correctly and distributed and disbursed
appropriately.

The information collections that we cover in this information collection request (ICR) are found
in the following parts of title 30 of the Code of Federal Regulations (CFR):







Part 1202, subpart H
Part 1206, subparts F, H, J
Part 1210. Subparts E and H
Part 1212, subpart E and H
Part 1217, subparts E, F, and G
Part 1218, subpart E and F

We have posted the laws, listed below, pertaining to mineral leases on Federal and Indian lands
and the OCS at http://www.onrr.gov/Laws_R_D/PublicLawsAMR.htm.
1.
2.
3.
4.
5.

25 U.S.C. 396d, Chapter 12—Lease, Sale, or Surrender of Allotted or Unallotted Lands
25 U.S.C. 2103, Chapter 23—Development of Tribal Mineral Resources
30 U.S.C. 189, Chapter 3A—Leases and Prospecting Permits
30 U.S.C. 359, Chapter 7—Lease of Mineral Deposits within Acquired Lands
30 U.S.C. 1001, 1002, Chapter 23—Geothermal Steam and Associated Geothermal
Resources
6. 43 U.S.C. 1334, Chapter 29—Submerged Lands, Subchapter III—Outer Continental
Shelf Lands Act
7. Energy Policy Act of 2005
8. Mineral Leasing Act of 1920
2. Indicate how, by whom, and for what purpose the information is to be used. Except for a
new collection, indicate the actual use the agency has made of the information received
from the current collection. Be specific. If this collection is a form or a questionnaire,
every question needs to be justified.
ONRR, acting for the Secretary, uses the information that we collect to ensure that lessees
accurately value and appropriately pay royalties based on the correct product valuation. ONRR
and other Federal Government agencies, including the Bureau of Safety and Environmental
Enforcement, Bureau of Land Management (BLM), Bureau of Indian Affairs (BIA), and State
and Tribal governmental entities, use the information for audit purposes and for evaluating the
reasonableness of product valuation or allowance claims that lessees submit. These bureaus and
other governmental entities use this data to conduct production verification; ensure lease
diligence; and monitor plant efficiencies, maximum recovery, and secondary product inventories.
Determining the appropriate product value or allowance rate directly affects the royalties and
other mineral revenues due. Failure to collect such data would prevent the Secretary from
fulfilling statutory and trust responsibilities. All data reported is subject to subsequent audit and
adjustment.
Some reporting requirements alert ONRR to possible problems at the beginning of the
compliance process, which allows the Solid Minerals and Geothermal group under Audit and
Compliance Management (ACM) and State and Tribal audit offices to provide resolution within
three years: this is part of ONRR’s compliance strategy. Other reporting requirements enable
2

ONRR to timely and accurately collect, account for, and disburse mineral revenues.
This information collection request provides for the collection of solid minerals royalty and
production information on the forms listed below, and other associated data formats, i.e., sales
summaries, facility data, sales contracts and amendments, and payment information. This ICR
also includes some information collections for geothermal resources, such as the burden hours
for valuation requests related to geothermal leases. Geothermal reporters primarily report
information on Form ONRR-2014, Report of Sales and Royalty Remittance, which is covered in
OMB Control Number 1012-0004.
Solid Minerals
Producers of coal and other solid minerals from any Federal or Indian lease must submit
Form ONRR-4430, Solid Minerals Production and Royalty Report, and other associated data
formats. These companies also report certain data on Form ONRR-2014, Report of Sales and
Royalty Remittance (OMB Control Number 1012-0004). Producers of coal from any Indian
lease must also submit Form ONRR-4292, Coal Washing Allowance Report, and Form ONRR4293, Coal Transportation Allowance Report, if they wish to claim allowances on Form ONRR4430. The information that ONRR requests is the minimum necessary to carry out our mission
and places the least possible burden on respondents. We discuss the forms and associated data
formats below. Please refer to the burden chart in Item 12 for all reporting requirements and
associated burden hours.


Form ONRR-4430, Solid Minerals Production and Royalty Report—Producers of coal
and other solid minerals from Federal and Indian leases file electronically this form monthly.
The form contains basic lease-level volume and valuation information. ONRR uses the
collected data from this form in the following manner:
o ONRR (1) matches the royalty payment check or electronic funds transfer to Form
ONRR-4430; (2) maintains lease accounts of payments; and (3) ensures the distribution
of data and disbursement of monies to States, American Indians, and the United States
Treasury.
o ONRR monitors Federal and non-Federal lease production from mines, which is essential
for the compliance process. Furthermore, ONRR uses the allocation of production to
ensure that commingled Federal and non-Federal mineral production volumes and values
summarized under one product category are allocated properly back to the lease where
the raw minerals were mined.
o ONRR makes production quantities, sales quantities, and inventory data available to
BLM for production verification and lease diligence requirements.
o ONRR also provides production and sales data to BIA and State and Tribal audit offices
for their mineral studies and audits.
o ONRR collects basic lease-level volume and valuation information on Form ONRR-4430
3

to begin compliance review activities. In addition, ONRR compares this reported data
against information from the facility data, the contracts and contract amendments, and the
sales summaries to identify and resolve value, volume, and royalty rate compliance
issues.


Associated Data Formats—Along with Form ONRR-4430, producers may also submit the
following:
Contracts and Contract Amendments—Coal and metal producers submit sales contracts,
agreements, and contract amendments semiannually. Sodium, potassium, phosphate, and
other solid mineral producers with leases containing ad valorem royalty terms submit the
required documents, only if ONRR specifically requests them. ONRR uses the collected data
from these contracts in the following manner:
o Contracts identify issues related to value and may include information on sales to
affiliated companies or identify monies or other items considered as payments for
production that is royalty bearing.
o ONRR extracts data affecting royalty payments from the contracts and amendments that
respondents submit. ONRR uses contracts to establish sales arrangements and the
relationships each contract has to the total mine production, sales, and subsequent royalty
payments. From contracts, ONRR obtains purchaser names, volumes, periods, prices,
built-in adjustments or escalation features, quality requirements, related considerations
that ONRR may consider a component of gross proceeds, service value in kind,
transportation arrangements, measurement points, price components, and other
information that may affect value for royalty purposes. Sales arrangements can provide
information regarding the interrelationships between companies, that is, whether the
producer’s sale is truly at arm's length. ONRR determines value for royalty purposes by
methodologies dependent on the arm’s-length or non-arm’s-length status of the sale.
o An arm’s-length contract is a contract or an agreement that was arrived at in the
marketplace between independent, nonaffiliated persons with opposing economic
interests regarding that contract. The regulations further provide that we normally accept
the gross proceeds accruing to the lessee according to their arm’s-length contract as being
representative of value for ad valorem leases (see 30 CFR 1206.456(b)(1)).
Sales Summaries—Companies submit required data by internally generated documents
from their records. Companies also provide ONRR with information on purchasers of lease
production. This information includes quality and quantities of production sold and total
purchaser payments that producer receives. Producers of coal and other solid minerals from
Federal and Indian leases must submit sales summaries at the same time with Form ONRR4430. ONRR uses the data collected from the sales summaries in the following manner:

o ONRR compares the sales summary purchaser information to sales information on Form
ONRR-4430 and facility data. ONRR looks for comparable sales volume and gross
proceeds. We also compare sales summary purchaser information that the company
submits to sales contract terms. Our analysis ensures compliance with contract
specifications such as price and quality.
o ONRR analyzes sales summary information designed to ensure that companies are
applying proper valuation methodology. For example, an atypical pricing may indicate a
contract buyout or buydown, which would require further consideration.
o ONRR also uses sales summaries to identify the arm’s-length relationship between the
purchaser and seller. Regulations at 30 CFR 1206.257 provide for valuation standards
based on this relationship.
Facility Data—Operators of wash plants, refining, ore concentration, or other processing
facilities for any coal, sodium, potassium, metals, or other solid minerals submit facility data
information for the months that they process or carry an inventory. Companies submit the
required data from internally generated documents from their own records. ONRR collects
facility data from the company and uses the data in the following manner:
o Allowance Monitoring—Under certain lease terms, ONRR permits lessees to deduct the
costs of processing that enhance the value of the mineral production. ONRR monitors
such costs, which are included in the facility data, to ensure that the allowance deductions
are reasonable and consistent with regulatory standards.
o Allocation of Production—ONRR monitors raw production input and finished product
output to ensure commingled Federal and non-Federal mineral production is allocated
properly back to the lease where the raw minerals were mined.
o BLM Product Verification—BLM uses the facility data to verify production during
regular inspections of facilities. They also use the data to ensure lease diligence and to
monitor plant efficiencies, maximum recovery, and secondary product inventories. We
also make facility data available to BIA and to State and Tribal audit offices for their
mineral studies and audits.
Additional Documents or Evidence—ONRR requests detailed statements, documents, or
other evidence supporting our ACM and State and Tribal audit offices’ responsibilities under
Federal and Indian lease terms. Spot sale invoices, weigh tickets, laboratory quality reports,
transportation contracts, and service contracts are all examples of additional documents that
we might request. The information that we collect might further define a cost or verify a
claim that the producer made.
Payment Information—Under 30 CFR 1210.205, ONRR collects payment information
data to use in the financial management process in the following manner:
o For each royalty payment document (Electronic Funds Transfer or hard-copy check)

associated with Form ONRR-4430, the lessee must annotate with their customer
identification and customer document identification numbers. This requirement helps
ONRR link the payment to the appropriate reporting so that ONRR can timely disburse
funds to the correct recipients.
o For each rental payment document not reported on Form ONRR-4430, the lessee must
include the ONRR Courtesy Notice, when provided, or annotate the payment document
with the customer identification number and ONRR-assigned lease number. This
requirement helps ONRR link payments with Form ONRR-4430 submittals.


Allowance Reports—Producers on Indian leases also report allowances claimed on
Form ONRR-4430. ONRR may grant an allowance to compensate lessees for the reasonable
actual cost of washing the portion of the coal on which royalty is due. Also, when the sales
point is not in the immediate vicinity of a lease or mine area, ONRR may grant an allowance
to compensate the lessee for the reasonable, actual cost of transporting the royalty portion of
the coal to a sales point not on the lease or mine area.
When the lessee washes or transports the Indian royalty coal under a non-arm’s-length
contract, ONRR is required to obtain cost data. We use this cost data to accurately determine
if the lessee correctly computed the coal value and the gross proceeds for royalty calculation
purposes.
Lessees complete the following forms when reporting or requesting a washing or
transportation allowance:
Form ONRR-4292, Coal Washing Allowance Report—Regulations at 30 CFR 1206.457
and 1206.458 provide that, when determining coal value for royalty purposes, a lessee may
take a deduction for the reasonable actual costs incurred to wash the coal.
o For washing costs that a lessee incurs under an arm’s-length contract, the lessee’s
allowance is the reasonable costs incurred for washing the coal under that contract.
ONRR’s approval is not required to take the allowance. However, the Indian lessee
must submit page 1 of Form ONRR-4292 not later than the same month that the
lessee first reported the washing allowance on Form ONRR-4430, estimating the tons
of coal washed, rate per ton, and allowance to be taken during the allowance period.
o The coal washing allowance is effective for a 12-month period or until the washing
contract terminates, whichever comes first, at which time the lessee must resubmit
page 1 of Form ONRR-4292 and report actual tons washed, rate per ton, and
allowance taken during the period. Information that ONRR requires includes the
lessee’s name and address, payor and product codes as reported on Form ONRR4430, estimated or actual production, and the allowance claimed.
o If the lessee has a non-arm’s-length washing contract or has no contract, ONRR base
the washing allowance on the lessee’s reasonable, actual costs. ONRR’s approval is
not required to take the allowance. However, the Indian lessee must submit a
6

completed Form ONRR-4292 to provide estimated washing costs the same month the
washing allowance is reported on Form ONRR-4430. The allowance is effective for
a 12-month period, at the end of which the lessee must resubmit a completed Form
ONRR-4292 with actual washing costs. ONRR must receive the form within 90 days
after the end of the previous reporting period, unless ONRR approves a longer period.
Thus, lessee uses Form ONRR-4292 to report both an estimated allowance to be used
for a new 12-month period and an actual allowance rate based on the lessee’s portion
of the actual plant operating, maintenance, and overhead expenditures for the prior
12-month reporting period.
Form ONRR-4293, Coal Transportation Allowance Report—Regulations at
30 CFR 1206.460 and 1206.461 provide that, where the royalty value of the coal has been
determined at a point remote from the lease or the mine, ONRR will allow a deduction for
the reasonable, actual costs incurred to transport the coal to a sales point or to a washing
facility remote from the mine area or lease.
o As with the washing allowance, ONRR’s approval is not required to deduct
transportation costs; however, under arm’s-length contracts, an Indian lessee must
submit page 1 of Form ONRR-4293 with estimated costs no later than the same
month the allowance is reported on Form ONRR-4430. Under non-arm’s-length
contracts or no contracts, the lessee must submit the completed form providing
estimated transportation, operating, maintenance, and overhead expenses.
o The transportation allowance is effective for a 12-month period or until the
transportation contract terminates. After the initial reporting period, the lessee must
resubmit Form ONRR-4293 in its entirety for non-arm’s-length contracts, or page 1
of the form for arm’s-length contracts, providing actual costs incurred during the
previous reporting period. ONRR must receive the form within 90 days after the end
of the previous reporting period, unless we approve a longer period.
o Reporting of transportation allowances may be straightforward and simple or may be
quite complex. In some cases, lessees may transport coal from point-to-point using a
single mode of transportation such as truck, rail system, conveyor belt, pipeline,
slurry-line, barge, or ship. In other instances, lessees may transport coal over several
segments of a route using multiple transport methods during the same trip. Reporting
can be further complicated through the use of combinations of lessee-owned transport
systems and other systems under non-arm’s-length contracts and/or arm’s-length
contracts, or both. Lessees must consider each segment separately and evaluate each
one for the reasonableness of cost.
Geothermal Resources
This ICR also covers some of the information collections for geothermal resources, which
ONRR groups by usage (electrical generation, direct use, and byproduct recovery), and by
disposition of the resources (arm’s-length (unaffiliated) contract sales, non-arm’s-length contract
sales, and no contract sales) within each use group. ONRR relies primarily on data that payors
7

report on Form ONRR-2014 for the majority of our business processes, including geothermal
information. In addition to using the data to account for royalties that payors report, ONRR uses
the data for monthly distribution of mineral revenues and audit and compliance reviews.
3. Describe whether, and to what extent, the collection of information involves the use of
automated, electronic, mechanical, or other technological collection techniques or other
forms of information technology, e.g., permitting electronic submission of responses, and
the basis for the decision for adopting this means of collection. Also describe any
consideration of using information technology to reduce burden and specifically how this
collection meets GPEA requirements.
ONRR provides software enabling reporters to complete Form ONRR-4430 and submit
encrypted and authenticated reports over the Internet. Reporters may submit all other data,
including the facility data, contract and subsequent amendments, and sales summaries to ONRR
as attachments to email messages. We encourage electronic submission; however, we permit
hardcopy submissions. We estimate 95 percent of respondents submit Form ONRR-4430
electronically.
The allowance Forms ONRR-4292 and ONRR-4293 are not automated because we receive only
a few submissions each year. Designing a computer system to process such a limited number of
forms is not cost effective for either the respondent or the Federal Government. We have these
available at http://www.onrr.gov/FM/Forms/AFSSol_Min.htm. ONRR accepts submission of
allowance forms as an email attachment. We estimate 50 percent of respondents may submit
allowance forms electronically (we have only one to three respondents annually).
ONRR collects most geothermal information electronically on Form ONRR-2014, and we cover
the burden hours under OMB Control Number 1012-0004. However, the estimated burden hours
for geothermal resources in this ICR include industry’s written submissions to ONRR requesting
approvals or clarifications of valuation reporting specifications. We estimate 50 percent of
respondents may submit these requests electronically.
4. Describe efforts to identify duplication. Show specifically why any similar information
already available cannot be used or modified for use for the purposes described in Item 2
above.
This information is not available from any other source, nor is there any other Government
agency currently collecting similar information for other purposes that could serve our needs.
ONRR shares the information we collect with BLM and BIA offices, as agreed in the
Memorandum of Understanding (MOU), which effectively avoids duplication of regulations and
reporting requirements. ONRR and BLM coordinate to identify information that each agency
collects. We consult with various BLM offices to ensure that the reporter’s burden is minimized
and not duplicated.
In most cases, the geothermal information that we collect is unique and site-specific to each
operation. ONRR found that no other Federal or State agency collects the same or similar

information. In fact, ONRR and BLM make every effort to avoid duplication of information
collection. For example, BLM is responsible for collecting geothermal production data and for
sharing that data with ONRR. Conversely, ONRR collects geothermal royalty data and shares
that information with BLM.
5. If the collection of information impacts small businesses or other small entities, describe
any methods used to minimize burden.
ONRR determined that this collection of information has an insignificant economic effect on
small entities. However, this collection does impact small entities. ONRR carefully analyzed its
requirements to ensure that the information requested is the minimum necessary and places the
least possible burden on industry. ONRR has a long-standing policy to restrict the amount of
information collected to the minimum necessary to accomplish our mission and fulfill our
responsibilities.
Respondents, including small businesses or other small entities, have the flexibility to submit
information to us electronically or in hardcopy. ONRR works directly with small companies that
report by hardcopy to establish accounts and provide reporting guidance.
ONRR provides toll-free telephone assistance and training free of charge to companies in
various geographic areas; onsite instruction as needed to give firsthand explanations of reporting
requirements; and also individual instructions on how to report this information to ONRR. We
encourage all solid minerals reporters to contact us to better familiarize themselves with the
reporting requirements.
6. Describe the consequence to Federal program or policy activities if the collection is not
conducted or is conducted less frequently, as well as any technical or legal obstacles to
reducing burden.
Collecting this information allows ONRR to fulfill its mission in a timely manner. The
collection of facility data, contracts and contract amendments, and sales summaries from
respondents is necessary for our compliance process. Through analysis of this information,
ONRR determines whether the lessee properly valued the products for royalty purposes.
Particularly of interest are provisions for compensation that might be overlooked as a portion of
gross proceeds. Without the ability to review this information, ONRR could not ensure proper
product valuation.
Our goal is to disburse 98 percent of mineral revenues to recipients by the end of the month
following the month of receipt, as stipulated in ONRR regulations. This information collection
allows ONRR to perform financial and accounting activities to meet this goal. The Federal
Government must pay interest on any late disbursements.
Our goal also is to complete all compliance work, including audits, within 3 years from the date
the royalty payment was received or due, whichever is sooner. ONRR performs compliance
activities to meet this mandate, using the information collected. ACM expertise relies on the

premise of receiving relevant data on time. In other words, ACM cannot resolve compliance
issues in contemporaneous fashion unless they can identify issues early in the royalty cycle.
Royalty valuation issues may include, but are not limited to, the sale of production to affiliated
companies, improper deductions from proceeds that a lessee receives, and other issues such as
reviewing compensation that a lessee receives for a wide variety of reasons, i.e., breach of
contract. ONRR must review the lessee’s normal business arrangements and evaluate those
arrangements. ONRR uses sales contracts and other market data to establish an expected basis
for evaluation of the reasonableness of the reported royalty payment.
ACM experts target royalty exceptions for resolution through ACM’s process of establishing
expected payments versus actual payments and collecting the supporting data. Companies have
commented that they benefit from a shortened compliance time period. Companies agreed that
records necessary to resolve compliance issues identified in the near term are more easily
recovered. Moreover, personnel associated with the business arrangement under review are
likely still in the employ of the company. If the issue is resolved in the Federal Government’s
favor, less late-payment interest is due from the company.
7. Explain any special circumstances that would cause an information collection to be
conducted in a manner:
*

requiring respondents to report information to the agency more often than quarterly.

Title 30 CFR parts 1202, 1206, 1210, 1212, 1217, and 1218 and most leases require that
respondents submit monthly royalty and production reports for solid minerals and geothermal
resources. Therefore, ONRR needs to collect the information monthly to verify the monthly
royalty payments.
Respondents must submit (1) Form ONRR-4292 annually if claiming a coal washing allowance
(§1206.458) and (2) Form ONRR-4293 occasionally if claiming a coal transportation allowance
(§1206.461). However, respondents may submit allowance forms more often than quarterly if
coal washing or coal transportation costs increase or decrease sufficiently to require a
recalculation of the unit cost.
For a value determination of any geothermal resources (§1206.364), respondents must submit to
ONRR, on occasion and as necessary, their relevant documents and a list of all involved leases,
all respective owners of interest, and all operators.
*

requiring respondents to prepare a written response to a collection of information in
fewer than 30 days after receipt of it.

Not applicable in this collection.
*

requiring respondents to submit more than an original and two copies of any
document.

Not applicable in this collection.
*

requiring respondents to retain records, other than health, medical, government
contract, grant-in-aid, or tax records, for more than three years.

Title 30 CFR 1212.200 and 1212.351 require solid minerals and geothermal leaseholders to
maintain records for 6 years or for longer periods, if notified in writing, when an audit or
investigation is underway. The leaseholders must maintain records until ONRR releases them by
a written notice.
Under 30 U.S.C. 1713(b), the leaseholders must maintain Indian oil and gas records for 6 years
after the records are generated unless the Secretary notifies them that they must maintain these
such records for a longer period due to an ongoing audit or investigation.
*

in connection with a statistical survey, that is not designed to produce valid and
reliable results, that can be generalized to the universe of study.

Not applicable in this collection.
*

requiring the use of a statistical data classification that OMB has not reviewed and
approved;

There are no special circumstances with respect to 5 CFR 1320.5(d)(2)(vi), as the collection is
not a statistical survey and does not use statistical data classification
*

that includes a pledge of confidentiality that is not supported by authority established
in statute or regulation, that is not supported by disclosure and data security policies
that are consistent with the pledge, or which unnecessarily impedes sharing of data
with other agencies for compatible confidential use.

There are no special circumstances with respect to 5 CFR 1320.5(d)(2)(vii) as this collection
does not include a pledge of confidentiality not supported by statute or regulation.
*

requiring respondents to submit proprietary trade secrets, or other confidential
information, unless the agency can demonstrate that it has instituted procedures to
protect the information's confidentiality to the extent permitted by law.

Respondents are required to provide confidential/proprietary information to ONRR on
Form ONRR-4430, including facility data, contract and subsequent amendments, and sales
summaries; and on Forms ONRR-4292 and ONRR-4293 for allowance reporting. However,
regulations at 30 CFR 1210.206 provide that proprietary trade secrets or other confidential
information submitted under part 1210 shall not be available for public inspection or made
public or disclosed without the consent of the lessee, except as otherwise provided by law or
regulation. Standard agency procedures provide strict security measures to control the use,
storage, and access to such information. We protect the collected information under standards
identified in Item 10 below.

8. If applicable, provide a copy and identify the date and page number of publication in the
Federal Register of the agency's notice, required by 5 CFR 1320.8(d), soliciting comments
on the information collection prior to submission to OMB. Summarize public comments
received in response to that notice and in response to the PRA statement associated with
the collection over the past 3 years, and describe actions taken by the agency in response to
these comments. Specifically, address comments received on cost and hour burden.
Describe efforts to consult with persons outside the agency to obtain their views on the
availability of data, frequency of collection, the clarity of instructions and recordkeeping,
disclosure, or reporting format (if any), and on the data elements to be recorded, disclosed,
or reported. [Please list the names, titles, addresses, and phone numbers of persons
contacted.]
Consultation with representatives of those from whom information is to be obtained or
those who must compile records should occur at least once every three years—even if the
collection of information activity is the same as in prior periods. There may be
circumstances that may preclude consultation in a specific situation. These circumstances
should be explained.
As required in 5 CFR 1320.8(d), ONRR published a 60-day review and comment notice in the
Federal Register on February 11, 2013 (78 FR 9732). We didn’t received any comments in
response to this Federal Register notice via www.regulations.gov. On, March 18, 2013, we
emailed the following industry personnel below, and they submitted the following comments:
Tammy Okray
Alpha Wyoming Land Company, LLC
391 Inverness Parkway, Suite 333
Englewood, Colorado 80112
[email protected] 303-687-3224
Comment: “I have no comment.”
Connie McNaney
Westmoreland Resources
P.O. Box 449
Hardin, Montana 59034
[email protected] 406-342-4500
Comment: “No comment.”
Jeff Potter
PacifiCorp
1407 W. North Temple Drive
Salt Lake City, Utah 84116
[email protected]
Comment:

Federal Coal

Citation 30 CFR
1206
253‐257
262
264
1210
202
203

Descrip

Hour
Burden

Ave # annual
responses

Annual
Burden

Production valuation &
records
Report transportation
allowance
Propose value

0.2
2

12
1

2.4
2
0

Submit sales
summaries
Submit sales contracts

0.3
0.5

12
1

3.6
0.5

Hour
Burden

Ave # annual
responses

Annual
Burden

Geothermal
Citation 30 CFR
1206
356

Descrip
Other method
valuation

ONRR Response: The burden hours listed in the table are within a reasonable range, which is an
average for the industry.
Renee Goodnick
Peabody Energy
701 Market Street, Suite700
Saint Louis, Missouri 63101
[email protected]
314-342-7958
First Comment: “The biggest issue I have is the reporting of the washplant allowance. The instruction
(sic) are vague.”
ONRR Response: We’ve written the instructions for Form ONRR-4292 in plain language with specific
guidance for each field and column. Additionally, we offer one-on-one assistance to all reporters.
Second Comment: “The P&R provides a summary report when it is first submitted, but when
volume/value adjustments are submitted there is no summary feature to use as a balance check. This
means I have to manually add all the contracts to make sure I have not made a keying error.”
ONRR Response: P&R functionality does not include a summary feature for volume/value adjustments.
Implementing this type of functionality is cost-prohibitive and requires a major upgrade to the application.

ONRR accepts comments at any time on the information collection and the burden. We continue
to meet with respondents, collectively and individually, to discuss requirements and
implementation strategies. We also assist respondents in preparing required forms and data by
telephone, in person, or through training that is free of charge.
9. Explain any decision to provide any payment or gift to respondents, other than
remuneration of contractors or grantees.

We will not provide any payment or gift to respondents in this collection.
10. Describe any assurance of confidentiality provided to respondents and the basis for the
assurance in statute, regulation, or agency policy.
Commercial or financial information that lessees provide to ONRR, relative to minerals they
removed from Federal and Indian leases, may be proprietary. The Federal Oil and Gas Royalty
Management Act of 1982, as amended (30 U.S.C. 1733), the Freedom of Information Act (5
U.S.C. 552 (b)(4)) and its implementing regulations (43 CFR 2), and ONRR regulations at 30
CFR 1210.206, as discussed in Item 7(h) above, established standards to protect trade secrets and
proprietary and other information. In addition, the Indian Mineral Development Act of 1982
(25 U.S.C. 2103) provides that the Department shall hold as privileged and proprietary
information all information in its possession related to Indian minerals agreement the Act covers.
Strict security measures at ONRR control storage of and access to proprietary information.
11. Provide additional justification for any questions of a sensitive nature, such as sexual
behavior and attitudes, religious beliefs, and other matters that are commonly considered
private. This justification should include the reasons why the agency considers the
questions necessary, the specific uses to be made of the information, the explanation to be
given to persons from whom the information is requested, and any steps to be taken to
obtain their consent.
This collection does not include sensitive or private questions.
12. Provide estimates of the hour burden of the collection of information. The statement
should:
*

Indicate the number of respondents, frequency of response, annual hour burden, and
an explanation of how the burden was estimated. Unless directed to do so, agencies
should not conduct special surveys to obtain information on which to base hour
burden estimates. Consultation with a sample (fewer than 10) of potential respondents
is desirable. If the hour burden on respondents is expected to vary widely because of
differences in activity, size, or complexity, show the range of estimated hour burden,
and explain the reasons for the variance. Generally, estimates should not include
burden hours for customary and usual business practices.

We estimate approximately 100 Federal and Indian reporters who may submit the required
information monthly, annually, and on occasion (see charts below for breakout of data by form
and by information collection). Based on current data, we estimate the average number of
annual responses is 9,434, and the annual reporting burden to industry is 3,434 hours, including
recordkeeping. The burden estimates include the time for reviewing instructions; searching
existing data sources; gathering and maintaining the data needed; and completing and reviewing
the collection of information. We have not included in our estimates certain requirements
performed in the normal course of business and considered usual and customary.

If this request for approval covers more than one form, provide separate hour burden
estimates for each form and aggregate the hour burdens.
Form Number

ONRR-4292,
Coal Washing

Reference
30 CFR
1206.458(a)(1), (b)(2)(iv), &
(b)(2)(iv)(A)

ONRR-4293,
Coal Transportation

1206.461(a)(1), (b)(2)(iv),
(b)(2)(iv)(A), & (b)(3)

ONRR-4430, P&R

1206.257(f) & (i); 1206.264;
1206.265; 1206.456(d)(1),
(f), & (i); 1206.463;
1206.464; 1210.201(a)(1);
1210.203(a); 1218.201(b), &
1218.203(b)

Annual
Responses
3

Annual
Burden Hours
4

3,126

1,332

Provide estimates of annualized cost to respondents for the hour burdens for
collections of information, identifying and using appropriate wage rate categories.
The cost of contracting out or paying outside parties for information collection
activities should not be included here. Instead, this cost should be included under
“Annual Cost to Federal Government.”
Summary of Information Collections
Information Collections
(and 30 CFR References*)
1. Reporting Formats:
 Form ONRR-4430, Solid
Minerals Production and
Royalty Report,
 Associated Data (sales
summary, facility data)
(1206.257, 1206.259, 1206.262,
1206.264, 1206.265, 1206.456,
1206.463, 1206.464; 1210.201,
1210.202, 1210.203, 1210.204;
1218.201 [1206.457, 1206.460];
1218.203)
2. Allowance Forms:
 Form ONRR-4292, Coal
Washing Allowance Report
(1206.458)
 Form ONRR-4293, Coal
Transportation Allowance
Report
(1206.461)
3. Geothermal Resources
(1206.353, 1206.354, 1206.356,
1206.359, 1206.364; 1210.352;
1218.306)
4. Recordkeeping

Number
of Annual
Responses
4,499

Annual
Burden
Hours
2,007

Annual
Cost
1
($52/hr)
$104,364

Annually

$208

On
occasion

$260

Mandatory

On
occasion

$3,224

Mandatory

4,880

1,356

$70,512

Requirement to
Respond
Mandatory

Required
to obtain a
benefit

Frequency
of
Response
Monthly

(1206.253, 1206.254, 1206.257;
1212.200)

requested

TOTAL
9,434
3,434 $178,568
ONRR base cost estimates on the expectation that an accountant will perform all work. See
calculations for hourly costs for industry accountants below.
*See chart below for complete listing of citations for this ICR.
1

We expect that an industry accountant, in the metropolitan area, will perform all work. We
estimate the total annual reporting burden is 3,434 hours. We used Bureau of Labor Statistics
(BLS) National Occupational Employment and Wage Estimates (available at
http://www.bls.gov/bls/wages.htm) to estimate the hourly cost for industry accountants in a
metropolitan area. We used a multiplier of 1.4 (based on BLS news release available at
http://www.bls.gov/ect) for benefits. We estimate the hourly labor cost factor is $52, which we
calculated as follows:
$37.43 [mean hourly wage] x 1.4 [benefits cost factor] = $52.402 [rounded to $52]
We estimate the total annual cost to industry is $178,568, as follows:
3,434 hours [reporting hours] x $52 [for industry accountants] = $178,568
There are no additional recordkeeping costs. The following chart shows the estimated burden
hours by CFR section and paragraph.
Respondents’ Estimated Annual Burden Hours
Citation
30 CFR

1202.351
(b)(3)
1202.353
(a), (b),
(c), and
(d)
1202.353
(e)

1206.253
(c);
1206.254;
and
1206.257
(d)(1)

Reporting and Recordkeeping
Requirement

Hour
Burden

Average No.
Annual
Responses

Annual
Burden
Hours

Part 1202—Royalties
Subpart H—Geothermal Resources
Pay royalties on used, sold, or otherwise
Hour burden covered under
finally disposed of byproducts.
OMB Control Number 1012-0004.
Report on Form ONRR-2014, royalties or
Hour burden covered under
direct use fee due for geothermal resources, OMB Control Number 1012-0004.
byproduct quantity, and commercially
See §1210.52.
demineralized water quantity.
Maintain quality measurements for audits.
AUDIT PROCESS
See Note.
Part 1206—Product Valuation
Subpart F—Federal Coal
Maintain accurate records for Federal lease
0.4166
816
340
coal and all data relevant to the royalty
value determination. Report the coal
quantity information on appropriate forms
under 30 CFR part 1210.

Average No.
Annual
Responses
AUDIT PROCESS
See Note.

Reporting and Recordkeeping
Requirement

1206.257
(b)(1),
(b)(3),
(b)(4), and
(d)(2)

Demonstrate and certify your arm’s-length
contract provisions including all
consideration paid by buyer, directly or
indirectly, for coal production. Provide
written information of reported arm’s-length
coal sales value and quantity data.

1206.257
(d)(3)

Submit a one-time notification when first
reporting royalties on Form ONRR-4430
and for a change in method.
Submit all available data relevant to the
value determination proposal.

Write and sign contract revisions or
amendments by all parties to an arm'slength contract, and retroactively apply
revisions or amendments to royalty value for
a period not to exceed two years.
Demonstrate that your contract is arm’slength. Provide written information justifying
the lessee's washing costs.
Report actual washing allowance on
Form ONRR-4430 for arm’s-length sales.

0.34

0.75

240

0.75

1206.257
(f)
1206.257
(i)

1206.259
(a)(1) and
(a)(3)
1206.259
(a)(1)
1206.259
(b)(1)
1206.259
(b)(2)(iv)
1206.259
(b)(2)(iv)
(A)
1206.259
(c)(1)(ii)
and
(c)(2)(iii)
1206.262
(a)(1)
1206.262
(a)(1) and
(a)(3)
1206.262
(b)(1)
1206.262
(b)(2)(iv)
1206.262
(b)(2)(iv)
(A)
1206.262
(b)(3)

Report actual washing allowance on
Form ONRR-4430 for non-arm’s-length or
no contract sales.
Report washing allowance on Form ONRR4430 after lessee elects either method for a
wash plant.
Report washing allowance on Form ONRR4430 for depreciation—use either straightline, or a unit of production method.
Submit arm’s-length and non-arm’s-length
washing contracts and related documents to
ONRR.
Report transportation allowance on
Form ONRR-4430.
Demonstrate that your contract is arm’slength. Provide written information justifying
your transportation costs when ONRR
determines the costs are unreasonable.
Report actual transportation allowance on
Form ONRR-4430 for non-arm’s-length or
no contract sales.
Report transportation allowance on Form
ONRR-4430 after lessee elects either
method for a transportation system.
Report transportation allowance on Form
ONRR-4430 for depreciation—use either
straight-line, or a unit of production method.
Apply to ONRR for exception from the
requirement of computing actual costs.

Hour
Burden

Annual
Burden
Hours

Citation
30 CFR

AUDIT PROCESS
See Note.

0.333
AUDIT PROCESS
See Note.

Citation
30 CFR
1206.262
(c)(1)(ii)
and
(c)(2)(iii)
1206.264

1206.265

1206.352
(b)(1)(ii)

1206.353
(c)(2)(i)
(A),
(d)(9), and
(e)(4)

1206.353
(g)
1206.353
(h)(1) and
(m)(2)

1206.353
(n)

1206.354
(b)(1)(ii)
1206.354
(c)(2)(i)
(A),
(d)(9), and
(e)(4)

1206.354
(g)

Reporting and Recordkeeping
Requirement

Average No.
Annual
Responses
AUDIT PROCESS
See Note.
Hour
Burden

Annual
Burden
Hours

Submit all arm’s-length transportation
contracts, production agreements, operating
agreements, and related documents to
ONRR.
Propose the value of coal for royalty
1
1
1
purposes to ONRR for an ad valorem
Federal coal lease.
Notify ONRR if, prior to use, sale, or other
1
1
1
disposition, you enhanced the value of coal.
Subpart H—Geothermal Resources
Determine the royalty on produced
Hour burden covered under
geothermal resources, used in your power
OMB Control Number 1012-0004.
plant for generation and sale of electricity,
for Class I leases, as approved by ONRR.
Include a return on capital you invested
AUDIT PROCESS
when the purchase of real estate for
See Note.
transmission facilities is necessary.
Allowable operating and maintenance
expenses include other directly allocable
and attributable operating and maintenance
expenses that you can document.
Request change to other depreciation
1
1
1
alternative method with ONRR approval.
Use a straight-line depreciation method, but Hour burden covered under
not below salvage value, for equipment.
OMB Control Number 1012-0004.
Amend your prior estimated Form ONRR2014 reports to reflect actual transmission
cost deductions, and pay any additional
royalties due plus interest.
Submit all arm’s-length transmission
contracts, production and operating
agreements and related documents, and
other data for calculating the deduction.
Redetermine your generating cost rate
annually and request ONRR approval to use
a different deduction period.
Include a return on capital you invested
when the purchase of real estate for a
power plant site is necessary. Allowable
operating and maintenance expenses
include other directly allocable and
attributable operating and maintenance
expenses that you can document.
Request change to other depreciation
alternative method with ONRR approval.

AUDIT PROCESS
See Note.

Citation
30 CFR

Reporting and Recordkeeping
Requirement

1206.354
(h) and
(m)(2)

Use a straight-line depreciation method, but
not below the salvage value, for equipment.

1206.354
(n)

1206.356
(a)(1) and
(a)(2)

1206.356
(a)(3)
1206.356
(b)(3)

1206.356
(c)
1206.357
(b)(3); and
1206.358
(d)

1206.358

Amend your prior estimated Form ONRR2014 reports to reflect actual generating
cost deductions and pay any additional
royalties due plus interest.
Submit all arm’s-length power plant
contracts, production and operating
agreements and related documents, and
other data for calculating the deduction.
Determine the royalty on produced
significant geothermal resource quantities,
for Class I leases, with the weighted
average of the arm’s-length gross proceeds
used to operate the same direct-use facility;
For Class I leases, the efficiency factor of
the alternative energy source will be 0.7 for
coal and 0.8 for oil, natural gas, and other
fuels derived from oil and natural gas, or an
efficiency factor proposed by the lessee and
approved by ONRR.
For Class I leases, a royalty determined by
any other reasonable method approved by
ONRR.
Provide ONRR data showing the
geothermal production amount, in pounds or
gallons of geothermal fluid, to input into the
fee schedule for Class III leases.
ONRR will determine fees on a case-bycase basis for geothermal resources other
than hot water.
Determine the royalty due on byproducts by
any other reasonable valuation method
approved by ONRR.
Use a discrete field on Form ONRR-2014 to
notify ONRR of a transportation allowance.
Submit arm’s-length transportation contracts

Average No. Annual
Annual
Burden
Responses
Hours
Hour burden covered under
OMB Control Number 1012-0004.
Hour
Burden

AUDIT PROCESS
See Note.

Hour burden covered under
OMB Control Number 1012-0004.

AUDIT PROCESS

Citation
30 CFR

Reporting and Recordkeeping
Requirement

1206.359
(g)

The lessee may not later elect to change to
the other alternative without ONRR approval
to compute costs associated with capital
investment.
You must use a straight-line depreciation
method based on the life of either
equipment, or geothermal project.

1206.359
(h)(1) and
(l)(2)

1206.360
(a)(1),
(a)(2), and
(b);
1206.361
(a)(1)

1206.361
(a)(2)

1206.361
(b), (c),
and (d)

1206.361
(f)(2)
1206.364
(a)(1)
1206.364
(c)(2)

1206.364
(d)(2)
1206.366

You must amend your prior Form ONRR2014 reports to reflect actual byproduct
transportation cost deductions and pay any
additional royalties due plus interest.
Retain all data relevant to the royalty value,
or fee you paid. Show how you calculated
then submit all data to ONRR upon request.
ONRR may review and audit your data and
will direct you to use a different measure, if
royalty value, gross proceeds, or fee is
inconsistent with subpart.
Pay either royalties or fees due plus interest
if ONRR directs you to use a different
royalty value, measure of gross proceeds,
or fee.
ONRR may require you to: increase the
gross proceeds to reflect any additional
consideration; use another valuation
method; provide written information
justifying your gross proceeds; demonstrate
that your contract is arm’s length; and certify
that the provisions in your sales contract
include all of the consideration the buyer
paid you.
Write and sign contract revisions or
amendments by all parties to the contract.
Request a value determination from ONRR
in writing.
Make any adjustments in royalty payments,
if you owe additional royalties, and pay the
royalties owed plus interest after the
Assistant Secretary issues a determination.
You may appeal an order requiring you to
pay royalty under the determination.
State, tribal, or local government lessee
must pay a nominal fee, if uses a
geothermal resource.

Hour
Burden

Average No.
Annual
Responses

Annual
Burden
Hours

Hour burden covered under
OMB Control Number 1012-0004.

AUDIT PROCESS
See Note.

Hour burden covered under
OMB Control Number 1012-0004.

AUDIT PROCESS
See Note.

AUDIT PROCESS
See Note.
12

Hour burden covered under
OMB Control Number 1012-0004.

Hour burden covered under
OMB Control Number 1012-0006.
Hour burden covered under
OMB Control Number 1012-0004.

Citation
30 CFR
1206.456
(b)(1),
(b)(3), and
(b)(4)

1206.456
(d)(1);
1206.452
(c);
1206.453

1206.456
(d)(2)

1206.456
(d)(3)

1206.456
(f)

1206.456
(i)
1206.458
(a)(1),
(b)(1),
(c)(1)(i),
(c)(1)(iii),
(c)(2)(i),
and
(c)(2)(iii)

1206.458
(a)(3)

Reporting and Recordkeeping
Requirement

Hour
Burden

Average No.
Annual
Responses

Subpart J—Indian Coal
Demonstrate that your contract is arm’sAUDIT PROCESS
length. Provide written information justifying
See Note.
the reported coal value. And certify that your
arm’s-length contract provisions include all
direct or indirect consideration paid by buyer
for the coal production.
Retain all data relevant to the determination
0.42
of royalty value to which individual Indian
lease coal should be allocated. Report coal
quantity information on Form ONRR-4430,
Solid Minerals Production and Royalty
Report, as required under 30 CFR
part 1210.
An Indian lessee will make available arm’sAUDIT PROCESS
length sales and sales quantity data for like- See Note.
quality coal sold, purchased, or otherwise
obtained from the area when requested by
an authorized ONRR or Indian
representative, or the Inspector General of
the Department of the Interior or other
persons authorized to receive such
information,.
Notify ONRR by letter identifying the
1
valuation method used and procedure
followed. This is a one-time notification due
no later than the month the lessee first
report royalties on the Form ONRR-4430.
Propose a value determination method to
1
ONRR; submit all available data relevant to
method; and use that method until ONRR
decides.
Write and sign contract revisions or
1
amendments by all parties to an arm'slength contract.
Deduct the reasonable actual coal washing
2
allowance costs incurred under an arm’slength contract, and allowance based upon
their reasonable actual costs under a nonarm’s-length or no contract, after submitting
a completed page one of Form ONRR4292, Coal Washing Allowance Report,
containing the actual costs for the previous
reporting period, within 3 months after the
end of the calendar year after the initial and
for succeeding reporting periods, and report
deduction on Form ONRR-4430 for an
arm’s-length, or a non-arm’s-length, or no
contract.
Provide written information justifying your
AUDIT PROCESS
washing costs when ONRR determines your See Note.
washing value unreasonable.

Annual
Burden
Hours

Citation
30 CFR

Reporting and Recordkeeping
Requirement

1206.458
(b)(2)(iv)

The lessee may not later elect to change to
the other alternative without ONRR
approval.
Elect either a straight-line depreciation
method based on the life of equipment or
reserves, or a unit of production method.
Submit arm’s-length washing contracts and
all related data used on Form ONRR-4292.

1206.458
(b)(2)(iv)
(A)
1206.458
(c)(1)(iv)
and
(c)(2)(vi)
1206.461
(a)(1),
(b)(1),
(c)(1)(i),
(c)(1)(iii),
(c)(2)(i),
and
(c)(2)(iii)

1206.461
(a)(3)

1206.461
(b)(2)(iv)
1206.461
(b)(2)(iv)
(A)
1206.461
(b)(3)
1206.461
(c)(1)(iv)
and
(c)(2)(vi)
1206.463

1206.464

Submit a completed page one of Form
ONRR-4293, Coal Transportation
Allowance Report, of reasonable, actual
transportation allowance costs incurred by
the lessee for transporting the coal under an
arm’s-length contract, in which you may
claim a transportation allowance
retroactively for a period of not more than 3
months prior to the first day of the month
that you filed the form with ONRR, unless
ONRR approves a longer period upon a
showing of good cause by the lessee.
Submit also a completed Form ONRR-4293
based upon the lessee’s reasonable actual
costs under a non-arm’s-length or no
contract. (Emphasis added.)
Provide written information justifying your
transportation costs when ONRR
determines your transportation value
unreasonable.
Submit completed Form ONRR-4293 after a
lessee has elected to use either method for
a transportation system.
Submit completed Form ONRR-4293 to
compute depreciation for election to use
either a straight-line depreciation, or unit-ofproduction method.
Submit completed Form ONRR-4293 for
exception from the requirement of
computing actual costs.
Submit arm’s-length transportation
contracts, production and operating
agreements, and related documents used
on Form ONRR-4293.
Propose the value of coal for royalty
purposes to ONRR for an ad valorem
Federal coal lease.
Notify ONRR if, prior to use, sale, or other
disposition, you enhance the value of coal.

Average No.
Annual
Responses
1

Annual
Burden
Hours
1

Hour
Burden

AUDIT PROCESS
See Note.

Citation
30 CFR

1210.201
(a)(1);
1206.259
(c)(1)(i),
(c)(2),
(e)(2);
1206.262
(c)(1),
(c)(2)(i),
(e)(2);
1206.458
(c)(4),
(e)(2);
1206.461
(c)(4),
(e)(2)
1210.202
(a)(1) and
(c)(1)
1210.203
(a)

1210.204
(a)(1)

1210.205
(a) and (b)

1210.351
1210.352
1210.353

1212.200
(a)

Reporting and Recordkeeping
Requirement

Hour
Burden

Part 1210—Forms and Reports
Subpart E—Solid Minerals, General
Submit a completed Form ONRR-4430.
0.75
Report washing and transportation
allowances as a separate line on
Form ONRR-4430 for arm’s-length, nonarm’s-length, or no contract sales, unless
ONRR approves a different reporting
procedure. Submit also a corrected Form
ONRR-4430 to reflect actual costs, together
with any payment, in accordance with
instructions provided by ONRR.

Average No.
Annual
Responses

Annual
Burden
Hours

1,668

1,251

Submit sales summaries via electronic mail
0.50
900
450
where possible for all coal and other solid
minerals produced from Federal and Indian
leases and for any remote storage site.
Submit sales contracts, agreements, and
1
30
30
contract amendments for sale of all coal and
other solid minerals produced from Federal
and Indian leases with ad valorem royalty
terms.
Submit facility data if you operate a wash
0.5
130
65
plant, refining, ore concentration, or other
processing facility for any coal, sodium,
potassium, metals, or other solid minerals
produced from Federal or Indian leases with
ad valorem royalty terms.
Submit detailed statements, documents, or
AUDIT PROCESS
other evidence necessary to verify
See Note.
compliance, as requested.
Subpart H—Geothermal Resources
Maintain geothermal records on microfilm,
Hour burden covered under
microfiche, or other recorded media.
OMB Control Number 1012-0004.
Submit additional geothermal information on
1
1
1
special forms or reports.
Submit completed Form ONRR-2014
Hour burden covered under
monthly once sales or utilization of
OMB Control Number 1012-0004.
geothermal production occur.
Part 1212—Records and Forms Maintenance
Subpart E—Solid Minerals—General
Maintain all records pertaining to Federal
0.25
4,064
1,016
and Indian solid minerals leases for 6 years
after records are generated unless the
record holder is notified, in writing.

Citation
30 CFR
1212.351
(a) and
(b)

Reporting and Recordkeeping
Requirement

Hour
Burden

Average No.
Annual
Responses

Annual
Burden
Hours

Subpart H—Geothermal Resources
Retain accurate and complete records
Hour burden covered under
necessary to demonstrate that payments of
OMB Control Numbers 1012-0004
royalties, rentals, and other amounts due
(for Forms ONRR-2014 and ONRRunder Federal geothermal leases are in
4054).
compliance with laws, lease terms,
regulations, and orders.
Maintain all records pertaining to Federal
geothermal leases for 6 years after the
records are generated unless the
recordholder is notified in writing.

1217.200

1217.250

1217.300

1218.201
(b);
1206.457
(b);
1206.460
(d)

1218.203
(a) and (b)

Part 1217—Audits and Inspections
Subpart E—Coal
Furnish, free of charge, duplicate copies of
AUDIT PROCESS
audit reports that express opinions on such
See Note.
compliance with Federal lease terms
relating to Federal royalties as directed by
the Director for the Office of Natural
Resources Revenue.
Subpart F—Other Solid Minerals
Furnish, free of charge, duplicate copies of
AUDIT PROCESS
annual or other audits of your books.
See Note.
Subpart G—Geothermal Resources
The Secretary, or his/her authorized
AUDIT PROCESS
representative, will initiate and conduct
See Note.
audits or reviews that relate to compliance
with applicable regulations.
PART 1218—COLLECTION OF MONIES AND PROVISION
FOR GEOTHERMAL CREDITS AND INCENTIVES
Subpart E—Solid Minerals—General
You must tender all payments under
0.0055
1,368
§1218.51 except for Form ONRR-4430
payments, include both your customer
identification and your customer document
identification numbers on your payment
document, and you shall be liable for any
additional royalties, plus interest, if
improperly determined a washing or
transportation allowance.
Recoup an overpayment on Indian mineral
1
1
leases through a recoupment on
Form ONRR-4430 against the current
month’s royalties and submit the tribe’s
written permission to ONRR.
Subpart F—Geothermal Resources

Citation
30 CFR
1218.300;
1218.301;
1218.304;
1218.305
(a)

1218.306
(a)(2)
1218.306
(b)

Reporting and Recordkeeping
Requirement

Average No. Annual
Annual
Burden
Responses
Hours
Hour burden covered under
OMB Control Number 1012-0004.
Hour
Burden

Submit all rental and deferred bonus
payments when due and pay in value all
royalties due determined by ONRR.
The payor shall tender all payments.
Pay the direct use fees in addition to the
annual rental due.
Pay advanced royalties, under
43 CFR 3212.15(a)(1) to retain your lease,
that equal to the average monthly royalty
you paid under 30 CFR part 1206,
subpart H.
You may receive a credit against royalties if
4
1
4
ONRR approves in advance your contract.
Pay in money any royalty amount that is not Hour burden covered under
offset by the credit allowed under this
OMB Control Number 1012-0004.
section.
9,434
3,434
TOTAL BURDEN

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.

13. Provide an estimate of the total annual non-hour cost burden to respondents or
recordkeepers resulting from the collection of information. (Do not include the cost of any
hour burden already reflected in Item 12.)
*

The cost estimate should be split into two components: (a) a total capital and start-up
cost component (annualized over its expected useful life) and (b) a total operation and
maintenance and purchase of services component. The estimates should take into
account costs associated with generating, maintaining, and disclosing or providing the
information (including filing fees paid for form processing). Include descriptions of
methods used to estimate major cost factors including system and technology
acquisition, expected useful life of capital equipment, the discount rate(s), and the time
period over which costs will be incurred. Capital and start-up costs include, among
other items, preparations for collecting information such as purchasing computers and
software; monitoring, sampling, drilling and testing equipment; and record storage
facilities.
If cost estimates are expected to vary widely, agencies should present ranges of cost
burdens and explain the reasons for the variance. The cost of purchasing or
contracting out information collection services should be a part of this cost burden
estimate. In developing cost burden estimates, agencies may consult with a sample of
respondents (fewer than 10), utilize the 60-day pre-OMB submission public comment
process and use existing economic or regulatory impact analysis associated with the
rulemaking containing the information collection, as appropriate.

Generally, estimates should not include purchases of equipment or services, or
portions thereof, made: (1) prior to October 1, 1995, (2) to achieve regulatory
compliance with requirements not associated with the information collection, (3) for
25

reasons other than to provide information or keep records for the government, or (4) as
part of customary and usual business or private practices.
We have identified no “non-hour” cost burdens for this collection of information.
14. Provide estimates of annualized cost to the Federal Government. Also, provide a
description of the method used to estimate cost, which should include quantification of
hours, operational expenses (such as equipment, overhead, printing, and support staff),
and any other expense that would not have been incurred without this collection of
information.
We estimate the annualized cost to the Federal Government is $206,040 [$60 per hour x 3,434
hours = $206,040].
We estimate approximately 100 respondents annually. We estimate that the total annual
reporting burden for industry is 3,434 hours, and that the Federal Government will require 1 hour
of a Government accountant’s time for each burden hour for industry to complete all data
gathering requirements and to analyze Forms ONRR-4430, ONRR-4292, and ONRR-4293,
occasional notifications, letter proposals, award claim filings, and other related information.
We expect that a Government accountant will perform the work at the United States General
Schedule, Grade 12, Step 5, pay scale for the Denver, Colorado area. We used a multiplier of
1.5 (based on BLS news release available at http://www.bls.gov/ect) for benefits. We estimate
the hourly labor cost is $60 ($40.10 per hour x 1.5 benefit cost factor = $60.15, rounded to $60).
15. Explain the reasons for any program changes or adjustments in hour or cost burden.
The current OMB-approved inventory is 3,509 annual burden hours. Our current estimate of the
burden hours is 3,434, resulting in a total adjustment decrease of 75 hours. There is no program
change for this ICR.
There is a total adjustment (adj) decrease of 75 hours, as follows:
+71 [adj increase hours] + -146 [adj decrease hours] = -75
We analyzed our current data and found an increase in the time that industry takes to complete
the requirements for (1) Form ONRR-4430 reporting and (2) recordkeeping and valuation
determinations of Geothermal Resources. We also found a decrease in industry’s time to
complete requirements for (1) Sales Summary and Facility Data reporting and (2) contract
revisions and amendments for Geothermal Resources. We base these accurate estimates on
industry’s established history of compliance and on our ongoing contact and interaction with
companies to resolve questions as they arise.

Citation
30 CFR part 1206
1206.257(d)(3)
1206.257(f)
1206.257(i)
1206.259(b)(2)(iv)
1206.259(b)(2)(iv)(A)
1206.262(b)(2)(iv)
1206.262(b)(2)(iv)(A)
1206.262(b)(3)
1206.356(a)(3)
1206.361(f)(2)
1206.364(a)(1)
1210.202(a)(1) & (c)(1)
1210.204(a)(1)
Total

Adjustment
Increase(+)/Decrease(-)
Of Burden Hours
+4
+5
+4
+2
+2
+2
+2
+2
+39
-1
+9
-120
-25
-75

16. For collections of information whose results will be published, outline plans for tabulation
and publication. Address any complex analytical techniques that will be used. Provide the
time schedule for the entire project, including beginning and ending dates of the collection
of information, completion of report, publication dates, and other actions.
ONRR publishes annually the aggregated production and royalty data, for the benefit of the
public, industry, States and Indian Tribes, and other interested parties. ONRR does not release
any sensitive, confidential, or proprietary data.
17. If seeking approval not to display the expiration date for OMB approval of the information
collection, explain the reasons that display would be inappropriate.
ONRR will display the OMB approval expiration date on Forms ONRR-4430, ONRR-4292, and
ONRR-4293.
18. Explain each exception to the topics of the certification statement identified in
"Certification for Paperwork Reduction Act Submissions."
To the extent that the topics apply to this collection of information, we are not making any
exceptions to the “Certification for Paperwork Reduction Act Submissions.”

File Type	application/pdf
File Title	Microsoft Word - 0010 Supporting Statement_082213cc.doc
Author	southala
File Modified	2013-08-22
File Created	2013-08-22