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Federal Register / Vol. 78, No. 45 / Thursday, March 7, 2013 / Notices

Number of
respondents

Activity

Number of
annual
responses

Completion
time per
response
(hours)

Total annual
burden hours*

Estimated
nonhour
burden cost

Form 10–356A (short) ..................................................
Recordkeeping
Large Concessions .......................................................

350

350

4

1,400

0

150

150

800

120,000

0

Small Concessions .......................................................
Totals .....................................................................

350
1,352

350
1,352

50
1,376

17,500
159,982

0
$425,000

* Rounded.

III. Comments

Dated: March 1, 2013.
Madonna L. Baucum,
Information Collection Clearance Officer,
National Park Service.

SUMMARY: To comply with the
Paperwork Reduction Act of 1995
(PRA), we are inviting comments on a
collection of information requests that
we will submit to the Office of
Management and Budget (OMB) for
review and approval. OMB formerly
approved this information collection
request (ICR) under OMB Control
Number 1010–0136. Subsequently, on
March 6, 2012, OMB approved a new
series number for ONRR and
renumbered our ICRs. This ICR covers
the paperwork requirements in the
regulations under title 30, Code of
Federal Regulations (CFR), parts 1202,
1204, and 1206 (previously 30 CFR parts
202, 204, and 206). Also, this ICR
pertains to (1) Federal oil and gas
valuation regulations, which include
transportation and processing regulatory
allowance limits; and (2) accounting
and auditing relief for marginal
properties. This ICR includes Form
MMS–4393, Request to Exceed
Regulatory Allowance Limitation.
Effective January 1, 2014, ONRR will
discontinue the information collection
requirements of the Stripper Oil royalty
rate reductions in this ICR. The revised
title of this ICR is ‘‘30 CFR Parts 1202,
1204, and 1206, Federal Oil and Gas
Valuation.’’

[FR Doc. 2013–05276 Filed 3–6–13; 8:45 am]

DATES:

BILLING CODE 4312–EH–P

DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue
[Docket No. ONRR–2012–0006]
emcdonald on DSK67QTVN1PROD with NOTICES

Notice of an extension of a
currently approved information
collection (OMB Control Number 1012–
0005).

ACTION:

We invite comments concerning this
information collection on:
• Whether or not the collection of
information is necessary, including
whether or not the information will
have practical utility;
• The accuracy of our estimate of the
burden for this collection of
information;
• Ways to enhance the quality, utility,
and clarity of the information to be
collected; and
• Ways to minimize the burden of the
collection of information on
respondents.
Comments that you submit in
response to this notice are a matter of
public record. We will include or
summarize each comment in our request
to OMB to approve this IC. Before
including your address, phone number,
email address, or other personal
identifying information in your
comment, you should be aware that
your entire comment, including your
personal identifying information, may
be made publicly available at any time.
While you can ask us in your comment
to withhold your personal identifying
information from public review, we
cannot guarantee that we will be able to
do so.

Agency Information Collection
Activities: Submitted for Office of
Management and Budget Review;
Comment Request
Office of the Secretary, Office
of Natural Resources Revenue (ONRR),
Interior.

AGENCY:

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Submit written comments on or
before May 6, 2013.
ADDRESSES: Submit written comments
on this ICR to ONRR by any of the
following methods (please use ‘‘ICR
1012–0005’’ as an identifier in your
comment):
• Electronically, go to http://
www.regulations.gov. In the entry titled
‘‘Enter Keyword or ID,’’ enter ‘‘ONRR–
2012–0006’’ and then click ‘‘Search.’’
Follow the instructions to submit public
comments. ONRR will review all
comments.
• Mail comments to Armand
Southall, Regulatory Specialist, Office of
Natural Resources Revenue, P.O. Box

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25165, MS 61030A, Denver, Colorado
80225.
• Hand-carry comments, or use an
overnight courier service, to ONRR. Our
courier address is Building 85, Room A–
614, Denver Federal Center, West 6th
Ave. and Kipling St., Denver, Colorado
80225.
FOR FURTHER INFORMATION CONTACT:
Armand Southall, telephone (303) 231–
3221, or email
[email protected]. You may
also contact Mr. Southall to obtain
copies, at no cost, of (1) The ICR, (2) any
associated forms, and (3) the regulations
that require the subject collection of
information. You may also review the
information collection online at http://
www.reginfo.gov/public/PRAMain.
SUPPLEMENTARY INFORMATION:
Title: 30 CFR Parts 1202, 1204, and
1206, Federal Oil and Gas Valuation.
OMB Control Number: 1012–0005.
Bureau Form Number: Form MMS–
4393.
Note: ONRR will publish a rule updating
our form numbers to Form ONRR–4393.

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). The Secretary is required, by
various laws, to manage mineral
resource production from Federal and
Indian lands and the OCS, collect the
royalties and other mineral revenues
due, and distribute the funds collected
under those laws. We have posted those
laws pertaining to mineral leases on
Federal and Indian lands and the OCS
at http://www.onrr.gov/Laws_R_D/
PublicLawsAMR.htm.
Effective October 1, 2010, ONRR
reorganized and transferred our
regulations from chapter II to chapter
XII in 30 CFR, resulting in a change to
our citations. You can find the
information collections covered in this
ICR at 30 CFR part 1202, subparts C and
D, which pertain to Federal oil and gas
royalties; part 1204, subpart C, which
pertains to accounting and auditing
relief for marginal properties; and part

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Federal Register / Vol. 78, No. 45 / Thursday, March 7, 2013 / Notices
1206, subparts C and D, which pertain
to Federal oil and gas product valuation.
I. General Information
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 an amount or value of
production from the leased lands. The
mineral lease laws require the lessee, or
his designee, to report various kinds of
information to the lessor relative to the
disposition of the leased minerals. Such
information is generally available
within the records of the lessee or others
involved in developing, transporting,
processing, purchasing, or selling of
such minerals.
II. Information Collections
ONRR uses the information that we
collect in this ICR to ensure that lessees
accurately value and appropriately pay
royalties on oil and gas produced from
Federal onshore and offshore leases.
Please refer to the chart for all reporting
requirements and associated burden
hours. All data submitted is subject to
subsequent audit and adjustment.

emcdonald on DSK67QTVN1PROD with NOTICES

A. Federal Oil and Gas Valuation
Regulations
The valuation regulations at 30 CFR
part 1206, subparts C and D, mandate
that companies collect and/or submit
information used to value their Federal
oil and gas, including (1) transportation
and processing allowances and (2)
regulatory allowance limit information.
Companies report certain data on Form
MMS–2014, Report of Sales and Royalty
Remittance (OMB Control Number
1012–0004, formerly 1010–0139). The
information that we request is the
minimum necessary to carry out our
mission and places the least possible
burden on respondents. If ONRR does
not collect this information, both
Federal and State governments may
incur a loss of royalties.
Transportation and Processing
Regulatory Allowance Limits: Lessees
may deduct the reasonable, actual costs
of transportation and processing from
Federal royalties. The lessees report
these allowances on Form MMS–2014.

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For oil and gas, regulations establish the
allowable limit on transportation
allowance deductions at 50 percent of
the value of the oil or gas. For gas only,
regulations establish the allowable limit
on processing allowance deductions at
662⁄3 percent of the value of each gas
plant product.
Request to Exceed Regulatory
Allowance Limitation, Form MMS–
4393: Lessees may request to exceed
regulatory limitations. Upon proper
application from the lessee, ONRR may
approve oil or gas transportation
allowance in excess of 50 percent or gas
processing allowance in excess of 662⁄3
percent on Federal leases. Lessees use
Form MMS–4393 for both Federal and
Indian leases to request to exceed
allowance limitations. This ICR covers
only Federal leases; therefore, we have
not included burden hours of Form
MMS–4393 for Indian leases in this ICR.
We include burden hours for Form
MMS–4393 for Indian leases in OMB
Control Number 1012–0002.
B. Accounting and Auditing Relief for
Marginal Properties
In 2004, we amended our regulations
to comply with section 7 of the Federal
Oil and Gas Royalty Simplification and
Fairness Act of 1996. The regulations
provide guidance for lessees and
designees seeking accounting and
auditing relief for qualifying Federal
marginal properties. Under the
regulations, both ONRR and the State
concerned must approve any relief
granted for a marginal property.
C. Stripper Oil Royalty Rate Reduction
Program
Under 43 CFR 3103.4–2, the Bureau of
Land Management (BLM), the surface
management agency for Federal onshore
leases, established the Stripper Oil
Royalty Rate Reduction Program
(Stripper Oil Program). ONRR, who
administered the Stripper Oil Program
for BLM, approved royalty rate
reductions for operators of stripper oil
properties for applicable sales periods
from October 1, 1992, through January
31, 2006. Effective February 1, 2006,
BLM terminated the reduced royalty
rates under this program. This change is
not currently reflected in title 30 CFR,

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14825

chapter XII; however, on October 6,
2010, BLM published a final rule (75 FR
61624) that removed this citation from
their regulations.
For production through January 31,
2006, reporters used Form MMS–4377,
Stripper Royalty Rate Reduction
Notification, to notify ONRR of royalty
rate changes. Although BLM terminated
the royalty rate reductions, ONRR
continues to verify previously submitted
notifications and may require the
operator to submit an amended Form
MMS–4377 through December 31, 2013.
Effective January 1, 2014, ONRR will
discontinue the Stripper Oil Program;
therefore, ONRR will not request OMB
approval for the Stripper Oil
information collection requirements.
III. OMB Approval
We will request OMB approval to
continue to collect, from companies
and/or lessees and designees,
information used (1) to value their
Federal oil and gas, including (a)
transportation and processing
allowances and (b) regulatory allowance
limit information and (2) to request
accounting and auditing relief approval
for qualifying Federal marginal
properties. If ONRR does not collect this
information, this would limit the
Secretary’s ability to discharge fiduciary
duties and may also result in loss of
royalty payments. ONRR protects the
proprietary information that we receive,
and we do not collect items of a
sensitive nature.
ONRR requires lessees to respond to
information collections relating to
valuation requirements.
Frequency: Annually and on occasion.
Estimated Number and Description of
Respondents: 120 Federal lessees/
designees and 7 States for Federal oil
and gas.
Estimated Annual Reporting and
Recordkeeping ‘‘Hour’’ Burden: 9,198
hours.
We have not included in our
estimates certain requirements
performed in the normal course of
business and considered as usual and
customary. We display the estimated
annual burden hours by CFR section
and paragraph in the following chart:

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14826

Federal Register / Vol. 78, No. 45 / Thursday, March 7, 2013 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS

30 CFR 1202,
1204, 1206, and 1210

Reporting and recordkeeping requirement

Hour burden

Average number of annual
responses

Annual burden
hours

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

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

Burden covered under OMB Control Number
1012–0004.

Subpart D—Federal Gas
1202.152(a) and (b) ....

Standards for reporting and paying royalties on gas.
(a)(1) If you are responsible for reporting production or royalties
you must:
(i) Report gas volumes and British thermal unit (Btu) heating values, if applicable, under the same degree of water saturation;
(ii) Report gas volumes in units of 1,000 cubic feet (mcf); and
(iii) Report gas volumes and Btu heating value at a standard pressure base of 14.73 pounds per square inch absolute (psia) and a
standard temperature base of 60 °F.
(b) Residue gas and gas plant product volumes shall be reported
as specified in this paragraph.

Burden covered under OMB Control Number
1012–0004.

PART 1204—ALTERNATIVES FOR MARGINAL PROPERTIES

emcdonald on DSK67QTVN1PROD with NOTICES

Subpart C—Accounting and Auditing Relief
1204.202(b)(1) ............

What is the cumulative royalty reports and payments relief option?
(b) To use the cumulative royalty reports and payments relief option, you must do all of the following:
(1) Notify ONRR in writing by January 31 of the calendar year for
which you begin taking your relief.

1204.202(b)(2) and
(b)(3).

(b)(2) Submit your royalty report and payment by the end of February of the year following the calendar year for which you reported annually. If you have an estimated payment on file, you
must submit your royalty report and payment by the end of
March of the year following the calendar year for which you reported annually; (3) Use the sales month prior to the month that
you submit your annual report and payment for the entire previous calendar year’s production for which you are paying annually.

Burden covered under OMB Control Number
1012–0004.

1204.202(b)(4), (b)(5),
(c), (d)(1), (d)(2),
(e)(1), and (e)(2).

(b)(4) Report one line of cumulative royalty information on Form
MMS–2014 for the calendar year; and
(5) Report allowances on Form MMS–2014 on the same annual
basis as the royalties for your marginal property production.
(c) If you do not pay your royalty by the date due in paragraph (b)
of this section, you will owe late payment interest from the date
your payment was due under this section until the date ONRR
receives it.
(d) If you take relief you are not qualified for, you may be liable for
civil penalties.
Also you must: (1) Pay ONRR late payment interest determined
under 30 CFR 1218.54 (2) Amend your Form MMS–2014.
(e) If you dispose of your ownership interest in a marginal property
for which you have taken relief you must:
(1) Report and pay royalties for the portion of the calendar year for
which you had an ownership interest; and
(2) Make the report and payment by the end of the month after you
dispose of the ownership interest in the marginal property. If you
do not report and pay timely, you will owe interest from the date
the payment was due.

Burden covered under OMB Control Number
1012–0004.

1204.203(b),
1204.205(a) and (b),
and
1204.206(a)(3)(i)
and (b)(1).

What is the other relief option?
(b) You must request approval from ONRR before taking relief
under this option.

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14827

Federal Register / Vol. 78, No. 45 / Thursday, March 7, 2013 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Average number of annual
responses

Annual burden
hours

40

7

280

6

1

6

30 CFR 1202,
1204, 1206, and 1210

Reporting and recordkeeping requirement

1204.208 (c)(1), (d)(1),
and (e).

May a State decide that it will or will not allow one or both of the
relief options under this subpart?
(c) If a State decides that it will or will not allow one or both of the
relief options within 30 days the State must: (1) Notify the Director for Office of Natural Resources Revenue, in writing, of its intent to allow or not allow one or both of the relief options.
(d) If a State decides in advance that it will not allow one or both of
the relief options the State must: (1) Notify the Director for Office
of Natural Resources Revenue, in writing, of its intent to allow
one or both of the relief options.
(e) If a State does not notify ONRR the State will be deemed to
have decided not to allow either of the relief options.

1204.209(b) ................

What if a property ceases to qualify for relief obtained under this
subpart?
(b) If a property is no longer eligible for relief the relief for the property terminates as of December 31 of that calendar year. You
must notify ONRR in writing by December 31 that the relief for
the property has terminated.

1204.210(c) and (d) ....

What if a property is approved as part of a nonqualifying agreement?
(c) the volumes on which you report and pay royalty must be
amended to reflect all volumes produced on or allocated to your
lease under the nonqualifying agreement as modified by BLM.
Report and pay royalties for your production using the procedures in § 1204.202(b).
(d) If you owe additional royalties based on the retroactive agreement approval and do not pay your royalty by the date due in
§ 1204.202(b), you will owe late payment interest determined
under § 1218.54 from the date your payment was due under
§ 1204.202(b)(2) until the date ONRR receives it.

Burden covered under OMB Control Number
1012–0004.

1204.214(b)(1) and
(b)(2).

Is minimum royalty due on a property for which I took relief?
(b) If you pay minimum royalty on production from a marginal property during a calendar year for which you are taking cumulative
royalty reports and payment relief, and:
(1) The annual payment you owe under this subpart is greater than
the minimum royalty you paid, you must pay the difference between the minimum royalty you paid and your annual payment
due under this subpart; or
(2) The annual payment you owe under this subpart is less than
the minimum royalty you paid, you are not entitled to a credit because you must pay at least the minimum royalty amount on your
lease each year.

Burden covered under OMB Control Number
1012–0004.

Hour burden

Accounting and Auditing Relief Subtotal

10

Part 1206—Product Valuation
Subpart C—Federal Oil

emcdonald on DSK67QTVN1PROD with NOTICES

1206.102(e)(1) ............

VerDate Mar<15>2010

How do I calculate royalty value for oil that I or my affiliate sell(s)
under an arm’s-length contract?
(e) If you value oil under paragraph (a) of this section: (1) ONRR
may require you to certify that your or your affiliate’s arm’s-length
contract provisions include all of the consideration the buyer must
pay, either directly or indirectly, for the oil.

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

Annual burden
hours

45

5

225

(a)(4) After you select an ONRR-approved publication, you may not
select a different publication more often than once every 2 years,

8

2

16

1206.103(b)(1) ............

(b) Production from leases in the Rocky Mountain Region.
(1) If you have an ONRR-approved tendering program, you must
value oil.

400

2

800

1206.103(b)(1)(ii) ........

(b)(1)(ii) If you do not have an ONRR-approved tendering program,
you may elect to value your oil under either paragraph (b)(2) or
(b)(3) of this section.

400

2

800

1206.103(b)(4) ............

(4) If you demonstrate to ONRR’s satisfaction that paragraphs
(b)(1) through (b)(3) of this section result in an unreasonable
value for your production as a result of circumstances regarding
that production, the ONRR Director may establish an alternative
valuation method.

400

2

800

1206.103(c)(1) ............

(c) Production from leases not located in California, Alaska or the
Rocky Mountain Region. (1) Value is the NYMEX price, plus the
roll, adjusted for applicable location and quality differentials and
transportation costs under § 1206.112.

50

10

500

1206.103(e)(1) and
(e)(2).

(e) Production delivered to your refinery and the NYMEX price or
ANS spot price is an unreasonable value. (1) . . . you may apply
to the ONRR Director to establish a value (2) You must provide
adequate documentation and evidence demonstrating the market
value at the refinery. representing the market at the refinery if:

330

2

660

1206.105 .....................

What records must I keep to support my calculations of value under
this subpart?
If you determine the value of your oil under this subpart, you must
retain all data relevant to the determination of royalty value.

1206.107(a) ................

How do I request a value determination?
(a) You may request a value determination from ONRR.

1206.109(c)(2) ............

When may I take a transportation allowance in determining value?
(c) Limits on transportation allowances. (2) You may ask ONRR to
approve a transportation allowance in excess of the limitation in
paragraph (c)(1) of this section. . . . 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.

1206.110(a) ................

How do I determine a transportation allowance under an arm’slength transportation contract?
(a) . . . You must be able to demonstrate that your or your affiliate’s contract is at arm’s length.

1206.110(d)(3) ............

(d) If your arm’s-length transportation contract includes more than
one liquid product, and the transportation costs attributable to
each product cannot be determined.
(3) You may propose to ONRR a cost allocation method.

30 CFR 1202,
1204, 1206, and 1210

Reporting and recordkeeping requirement

1206.103(a)(1), (a)(2),
and (a)(3).

How do I value oil that is not sold under an arm’s-length contract?
This section explains how to value oil that you may not value under
§ 1206.102 or that you elect under § 1206.102(d) to value under
this section. First determine whether paragraph (a), (b), or (c) of
this section applies to production from your lease, or whether you
may apply paragraph (d) or (e) with ONRR approval.
(a) Production from leases in California or Alaska. Value is the average of the daily mean ANS spot prices published in any
ONRR-approved publication during the trading month most concurrent with the production month.
(1) To calculate the daily mean spot price.
(2) Use only the days.
(3) You must adjust the value.

1206.103(a)(4) ............

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40

10

400

8

2

16

AUDIT PROCESS. See note.

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emcdonald on DSK67QTVN1PROD with NOTICES

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

Annual burden
hours

1

20

30 CFR 1202,
1204, 1206, and 1210

Reporting and recordkeeping requirement

1206.110(e) ................

(e) If your 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, then
you must propose an allocation procedure to ONRR.

1206.110(e)(1) and
(e)(2).

(e)(1) . . . If ONRR rejects your cost allocation, you must amend
your Form MMS–2014.
(2) You must submit your initial proposal, including all available
data, within 3 months after first claiming the allocated deductions
on Form MMS–2014.

1206.110(g)(2) ............

(g) If your arm’s-length sales contract includes a provision reducing
the contract price by a transportation factor,
(2) You must obtain ONRR approval before claiming a transportation factor in excess of 50 percent of the base price of the
product.

5

1

5

1206.111(g) ................

How do I determine a transportation allowance if I do not have an
arm’s-length transportation contract or arm’s-length tariff?
(g) To compute depreciation, you may elect to use either . . . After
you make an election, you may not change methods without
ONRR approval.

30

1

30

1206.111(k)(2) ............

(k)(2) You may propose to ONRR a cost allocation method on the
basis of the values.

30

1

30

1206.111(l)(1) and
(l)(3).

(l)(1) Where you transport both gaseous and liquid products
through the same transportation system, you must propose a
cost allocation procedure to ONRR. . . .
(3) You must submit your initial proposal, including all available
data, within 3 months after first claiming the allocated deductions
on Form MMS–2014.

20

1

20

1206.111(l)(2) .............

(l)(2) . . . If ONRR rejects your cost allocation, you must amend
your Form MMS–2104 for the months that you used the rejected
method and pay any additional royalty and interest due.

1206.112(a)(1)(ii) ........

What adjustments and transportation allowances apply when I
value oil production from my lease using NYMEX prices or ANS
spot prices?
(a)(1)(ii) . . . under an exchange agreement that is not at arm’s
length, you must obtain approval from ONRR for a location and
quality differential.

80

1

80

1206.112(a)(1)(ii) ........

(a)(1)(ii) . . . If ONRR prescribes a different differential, you must
apply. . . . You must pay any additional royalties owed . . . plus
the late payment interest from the original royalty due date, or
you may report a credit.

20

2

40

1206.112(a)(3) and
(a)(4).

(a)(3) If you transport or exchange at arm’s length (or both transport and exchange) at least 20 percent, but not all, of your oil
produced from the lease to a market center, determine the adjustment between the lease and the market center for the oil that
is not transported or exchanged (or both transported and exchanged) to or through a market center as follows:
(4) If you transport or exchange (or both transport and exchange)
less than 20 percent of your crude oil produced from the lease
between the lease and a market center, you must propose to
ONRR an adjustment between the lease and the market center
for the portion of the oil that you do not transport or exchange (or
both transport and exchange) to a market center. . . . If ONRR
prescribes a different adjustment. . . . You must pay any additional royalties owed . . . plus the late payment interest from the
original royalty due date, or you may report a credit.

80

4

320

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20

Burden covered under OMB Control Number
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Burden covered under OMB Control Number
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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued

30 CFR 1202,
1204, 1206, and 1210

Reporting and recordkeeping requirement

1206.112(b)(3) ............

(b)(3) . . . you may propose an alternative differential to ONRR.
. . . If ONRR prescribes a different differential. . . . You must
pay any additional royalties owed . . . plus the late payment interest from the original royalty due date, or you may report a
credit.

1206.112(c)(2) ............

(c)(2) . . . If quality bank adjustments do not incorporate or provide
for adjustments for sulfur content, you may make sulfur adjustments, based on the quality of the representative crude oil at the
market center, of 5.0 cents per one-tenth percent difference in
sulfur content, unless ONRR approves a higher adjustment.

1206.114 .....................

What are my reporting requirements under an arm’s-length transportation contract?

Average number of annual
responses

Annual burden
hours

80

4

320

80

2

160

Hour burden

You or your affiliate must use a separate entry on Form MMS–2014
to notify ONRR of an allowance based on transportation costs
you or your affiliate incur.

Burden covered under OMB Control Number
1012–0004.

ONRR may require you or your affiliate to submit arm’s-length
transportation contracts, production agreements, operating agreements, and related documents.

AUDIT PROCESS. See note.

1206.115(a) ................

What are my reporting requirements under a non-arm’s-length
transportation arrangement?
(a) You or your affiliate must use a separate entry on Form MMS–
2014 to notify ONRR of an allowance based on transportation
costs you or your affiliate incur.

Burden covered under OMB Control Number
1012–0004.

1206.115(c) .................

(c) ONRR may require you or your affiliate to submit all data used
to calculate the allowance deduction.

AUDIT PROCESS. See note.

emcdonald on DSK67QTVN1PROD with NOTICES

Subpart D—Federal Gas
1206.152(b)(1)(i) and
(b)(1)(iii).

Valuation standards—unprocessed gas.
(b)(1)(i) . . . The lessee shall have the burden of demonstrating
that its contract is arm’s-length. . . . (iii) . . . When ONRR determines that the value may be unreasonable, ONRR will notify the
lessee and give the lessee an opportunity to provide written information justifying the lessee’s value.

1206.152(b)(2) ............

(b)(2) . . . The lessee must request a value determination in accordance with paragraph (g) of this section for gas sold pursuant
to a warranty contract;

1206.152(b)(3) ............

(b)(3) ONRR may require a lessee to certify that its arm’s-length
contract provisions include all of the consideration to be paid by
the buyer, either directly or indirectly, for the gas.

AUDIT PROCESS. See note.

1206.152(e)(1) ............

(e)(1) Where the value is determined pursuant to paragraph (c) of
this section, the lessee shall retain all data relevant to the determination of royalty value.

Burden covered under OMB Control Number
1012–0004.

1206.152(e)(2) ............

206.152(e)(2) Any Federal lessee will make available upon request
to the authorized ONRR or State representatives, to the Office of
the Inspector General of the department of the Interior, or other
person authorized to receive such information, arm’s-length sales
and volume data for like-quality production sold, purchased or
otherwise obtained by the lessee from the field or area or from
nearby fields or areas.

AUDIT PROCESS. See note.

1206.152(e)(3) ............

(e)(3) A lessee shall notify ONRR if it has determined value pursuant to paragraph (c)(2) or (c)(3) of this section.

10

10

100

1206.152(g) ................

(g) The lessee may request a value determination from ONRR.
. . . The lessee shall submit all available data relevant to its proposal.

40

5

200

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80

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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued

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30 CFR 1202,
1204, 1206, and 1210

Reporting and recordkeeping requirement

Hour burden

Average number of annual
responses

Annual burden
hours

1206.153(b)(1)(i) and
(b)(1)(iii).

Valuation standards—processed gas.
(b)(1)(i) . . . The lessee shall have the burden of demonstrating
that its contract is arm’s-length.
(iii) . . . When ONRR determines that the value may be unreasonable, ONRR will notify the lessee and give the lessee an opportunity to provide written information justifying the lessee’s value.

AUDIT PROCESS. See note.

1206.153(b)(2) ............

(b)(2) . . . The lessee must request a value determination in accordance with paragraph (g) of this section for gas sold pursuant
to a warranty contract;

1206.153(b)(3) ............

(b)(3) ONRR may require a lessee to certify that its arm’s-length
contract provisions include all of the consideration to be paid by
the buyer, either directly or indirectly, for the residue gas or gas
plant product.

AUDIT PROCESS. See note.

1206.153(e)(1) ............

(e)(1) Where the value is determined pursuant to paragraph (c) of
this section, the lessee shall retain all data relevant to the determination of royalty value.

Burden covered under OMB Control Number
1012–0004.

1206.153(e)(2) ............

(e)(2) Any Federal lessee will make available upon request to the
authorized ONRR or State representatives, to the Office of the
Inspector General of the Department of the Interior, or other persons authorized to receive such information, arm’s-length sales
and volume data for like-quality residue gas and gas plant products sold, purchased or otherwise obtained by the lessee from
the same processing plant or from nearby processing plants.

AUDIT PROCESS. See note.

1206.153(e)(3) ............

(e)(2) A lessee shall notify ONRR if it has determined any value
pursuant to paragraph (c)(2) or (c)(3) of this section.

10

2

20

1206.153(g) ................

206.153(g) The lessee may request a value determination from
ONRR. . . . The lessee shall submit all available data relevant to
its proposal.

80

15

1,200

1206.154(c)(4) ............

Determination of quantities and qualities for computing royalties.
(c)(4) . . . A lessee may request ONRR approval of other methods
for determining the quantity of residue gas and gas plant products allocable to each lease.

40

1

40

1206.156(c)(3) ............

Transportation allowances—general.
(c)(3) Upon request of a lessee, ONRR may approve a transportation allowance deduction in excess of the limitation prescribed
by paragraphs (c)(1) and (c)(2) 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.

40

3

120

1206.157(a)(1)(i) .........

Determination of transportation allowances.

80

1

80

(a) Arm’s-length transportation contracts. (1)(i) . . . The lessee
shall have the burden of demonstrating that its contract is arm’slength.

AUDIT PROCESS. See note.

The lessee must claim a transportation allowance by reporting it on
a separate line entry on the Form MMS–2014.

Burden covered under OMB Control Number
1012–0004.

1206.157(a)(1)(iii) .......

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

AUDIT PROCESS. See note.

1206.157(a)(2)(ii) ........

(a)(2)(ii) . . . the lessee may propose to ONRR a cost allocation
method on the basis of the values of the products transported.

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

Annual burden
hours

40

1

40

10

3

30

30 CFR 1202,
1204, 1206, and 1210

Reporting and recordkeeping requirement

1206.157(a)(3) ............

(a)(3) If an arm’s-length transportation contract includes both gaseous and liquid products and the transportation costs attributable
to each cannot be determined from the contract, the lessee shall
propose an allocation procedure to ONRR. . . . The lessee shall
submit all relevant data to support its proposal.

1206.157(a)(5) ............

(a)(5) . . . The transportation factor may not exceed 50 percent of
the base price of the product without ONRR approval.

1206.157(b)(1) ............

(b) Non-arm’s-length or no contract. (1) The lessee must claim a
transportation allowance by reporting it on a separate line entry
on the Form MMS–2014.

1206.157(b)(2)(iv) and
(b)(2)(iv)(A).

(b)(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 the ONRR.
(A) . . . After an election is made, the lessee may not change
methods without ONRR approval.

100

1

100

1206.157(b)(3)(i) .........

(b)(3)(i) . . . Except as provided in this paragraph, the lessee may
not take an allowance for transporting a product which is not royalty bearing without ONRR approval.

100

1

100

1206.157(b)(3)(ii) ........

(b)(3)(ii) . . . the lessee may propose to the ONRR a cost allocation method on the basis of the values of the products transported.

100

1

100

1206.157(b)(4) ............

(b)(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 relevant data to support its proposal.

100

1

100

1206.157(b)(5) ............

(b)(5) You may apply for an exception from the requirement to
compute actual costs under paragraphs (b)(1) through (b)(4) of
this section.

100

1

100

1206.157(c)(1)(i) .........

(c) Reporting Requirements. (1) Arm’s-length contracts. (i) You
must use a separate entry on Form MMS–2014 to notify ONRR
of a transportation allowance.

Burden covered under OMB Control Number
1012–0004.

1206.157(c)(1)(ii) ........

(c)(1)(ii) ONRR may require you to submit arm’s-length transportation contracts, production agreements, operating agreements,
and related documents.

AUDIT PROCESS. See note.

1206.157(c)(2)(i) .........

(c)(2) Non-arm’s-length or no contract. (i) You must use a separate
entry on Form MMS–2014 to notify ONRR of a transportation allowance.

Burden covered under OMB Control Number
1012–0004.

1206.157(c)(2)(iii) .......

(c)(2)(iii) ONRR may require you to submit all data used to calculate the allowance deduction.

AUDIT PROCESS. See note.

1206.157(e)(2), (e)(3),
and (f)(1).

(e) Adjustments. (2) For lessees transporting production from onshore Federal leases, the lessee must submit a corrected Form
MMS–2014 to reflect actual costs, together with any payment, in
accordance with instructions provided by ONRR. (3) For lessees
transporting gas production from leases on the OCS, if the lessee’s estimated transportation allowance exceeds the allowance
based on actual costs, the lessee must submit a corrected Form
MMS–2014 to reflect actual costs, together with its payments, in
accordance with instructions provided by ONRR.
(f) Allowable costs in determining transportation allowances. . . .
(1) Firm demand charges paid to pipelines. . . . if you receive a
payment or credit from the pipeline for penalty refunds, rate case
refunds, or other reasons, you must reduce the firm demand
charge claimed on the Form MMS–2014 by the amount of that
payment. You must modify Form MMS–2014 by the amount received or credited for the affected reporting period and pay any
resulting royalty and late payment interest due;

Burden covered under OMB Control Number
1012–0004.

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emcdonald on DSK67QTVN1PROD with NOTICES

RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
30 CFR 1202,
1204, 1206, and 1210

Reporting and recordkeeping requirement

1206.158(c)(3) ............

Processing allowances—general.
(c)(3) Upon request of a lessee, ONRR may approve a processing
allowance in excess of the limitation prescribed by paragraph
(c)(2) of this section. . . . An application for exception (using
Form MMS–4393, Request to Exceed Regulatory Allowance Limitation) shall contain all relevant and supporting documentation
for ONRR to make a determination.

1206.158(d)(2)(i) .........

(d)(2)(i) If the lessee incurs extraordinary costs for processing gas
production from a gas production operation, it may apply to
ONRR for an allowance for those costs.

1206.158(d)(2)(ii) ........

(d)(2)(ii) . . . to retain the authority to deduct the allowance the lessee must report the deduction to ONRR in a form and manner
prescribed by ONRR.

1206.159(a)(1)(i) .........

Determination of processing allowances.

Average number of annual
responses

Annual burden
hours

80

8

640

80

1

80

Hour burden

Burden covered under OMB Control Number
1012–0004.

(a) Arm’s-length processing contracts.
(1)(i). . .The lessee shall have the burden of demonstrating that its
contract is arm’s-length.

AUDIT PROCESS. See note.

The lessee must claim a processing allowance by reporting it on a
separate line entry on the Form MMS–2014.

Burden covered under OMB Control Number
1012–0004.

1206.159(a)(1)(iii) .......

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

AUDIT PROCESS. See note.

1206.159(a)(3) ............

(a)(3) If an 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, the lessee
shall propose an allocation procedure to ONRR. . . . The lessee
shall submit all relevant data to support its proposal.

1206.159(b)(1) ............

(b) Non-arm’s-length or no contract. (1). . . The lessee must claim
a processing allowance by reflecting it as a separate line entry
on the Form MMS–2014.

1206.159(b)(2)(iv) and
(b)(2)(iv)(A).

(b)(2)(iv) . . . When a lessee has elected to use either method for
a processing plant, the lessee may not later elect to change to
the alternative without approval of the ONRR.
(A) . . . After an election is made, the lessee may not change
methods without ONRR approval.

100

1

100

1206.159(b)(4) ............

(b)(4) A lessee may apply to ONRR for an exception from the requirements that it compute actual costs in accordance with paragraphs (b)(1) through (b)(3) of this section.

100

1

100

1206.159(c)(1)(i) .........

(c) Reporting requirements—(1) Arm’s-length contracts. (i) The lessee must notify ONRR of an allowance based on incurred costs
by using a separate line entry on the Form MMS–2014.

Burden covered under OMB Control Number
1012–0004.

1206.159(c)(1)(ii) ........

(c)(1)(ii) ONRR may require that a lessee submit arm’s-length processing contracts and related documents.

AUDIT PROCESS. See note.

1206.159(c)(2)(i) .........

(c)(2) Non-arm’s-length or no contract. (i) The lessee must notify
ONRR of an allowance based on incurred costs by using a separate line entry on the Form MMS–2014.

Burden covered under OMB Control Number
1012–0004.

1206.159(c)(2)(iii) .......

(c)(2)(iii) Upon request by ONRR, the lessee shall submit all data
used to prepare the allowance deduction.

AUDIT PROCESS. See note.

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1

20

Burden covered under OMB Control Number
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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued

30 CFR 1202,
1204, 1206, and 1210
1206.159(e)(2) and
(e)(3).

Reporting and recordkeeping requirement

Hour burden

(e) Adjustments . . . (2) For lessees processing production from
onshore Federal leases, the lessee must submit a corrected
Form MMS–2014 to reflect actual costs, together with any payment, in accordance with instructions provided by ONRR. (3) For
lessees processing gas production from leases on the OCS, if
the lessee’s estimated processing allowance exceeds the allowance based on actual costs, the lessee must submit a corrected
Form MMS–2014 to reflect actual costs, together with its payment, in accordance with instructions provided by ONRR.

Average number of annual
responses

Annual burden
hours

Burden covered under OMB Control Number
1012–0004.

Oil and Gas Valuation Subtotal

117

8,672

TOTAL

127

9,198

emcdonald on DSK67QTVN1PROD with NOTICES

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

Estimated Annual Reporting and
Recordkeeping ‘‘Non-hour’’ Cost
Burden: We have not identified a ‘‘nonhour’’ cost burden associated with the
collection of information.
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: Section 3506(c)(2)(A) of
the PRA requires each agency to ‘‘* * *
provide 60-day notice in the Federal
Register * * * and otherwise consult
with members of the public and affected
agencies concerning each proposed
collection of information * * *.’’
Agencies must specifically solicit
comments to (a) Evaluate whether the
proposed collection of information is
necessary for the agency to perform its
duties, including whether the
information is useful; (b) evaluate the
accuracy of the agency’s estimate of the
burden of the proposed collection of
information; (c) enhance the quality,
usefulness, and clarity of the
information that ONRR collects; and (d)
minimize the burden on the
respondents, including the use of
automated collection techniques or
other forms of information technology.
The PRA also requires agencies to
estimate the total annual reporting
‘‘non-hour cost’’ burden to respondents
or recordkeepers resulting from the
collection of information. If you have
costs to generate, maintain, and disclose
this information, you should comment
and provide your total capital and
startup cost components or annual
operation, maintenance, and purchase
of service components. You should
describe the methods that you use to
estimate (1) Major cost factors,

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including system and technology
acquisition, (2) expected useful life of
capital equipment, (3) discount rate(s),
and (4) the period over which you incur
costs. Capital and startup costs include,
among other items, computers and
software that you purchase to prepare
for collecting information and
monitoring, sampling, and testing
equipment, and record storage facilities.
Generally, your estimates should not
include equipment or services
purchased (i) Before October 1, 1995; (ii)
to comply with requirements not
associated with the information
collection; (iii) for reasons other than to
provide information or keep records for
the Federal Government; or (iv) as part
of customary and usual business, or
private practices.
We will summarize written responses
to this notice and address them in our
ICR submission for OMB approval,
including appropriate adjustments to
the estimated burden. We will provide
a copy of the ICR to you, without
charge, upon request. We also will post
the ICR at http://www.onrr.gov/
Laws_R_D/FRNotices/FRInfColl.htm.
Public Comment Policy: We will post
all comments, including names and
addresses of respondents, at http://
www.regulations.gov. Before including
your address, phone number, email
address, or other personal identifying
information in your comment, you
should be aware that your entire
comment—including your personal
identifying information—may be made
publicly available at any time. While
you can ask us, in your comment, to
withhold your personal identifying
information from public view, we
cannot guarantee that we will be able to
do so.

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Office of the Secretary, Information
Collection Clearance Officer: David
Alspach (202) 219–8526.
Dated: February 26, 2013.
Gregory J. Gould,
Director, Office of Natural Resources
Revenue.
[FR Doc. 2013–05286 Filed 3–6–13; 8:45 am]
BILLING CODE 4310–T2–P

DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue
[Docket No. ONRR–2011–0012]

Major Portion Prices and Due Date for
Additional Royalty Payments on Indian
Gas Production in Designated Areas
Not Associated With an Index Zone
Office of the Secretary, Office
of Natural Resources Revenue (ONRR),
Interior.
ACTION: Notice.
AGENCY:

SUMMARY: Final regulations for valuing
gas produced from Indian leases,
published August 10, 1999, require the
Office of Natural Resources Revenue
(ONRR) to determine major portion
prices and notify industry by publishing
the prices in the Federal Register. The
regulations also require ONRR to
publish a due date for industry to pay
additional royalties based on the major
portion prices. This notice provides
major portion prices for the 12 months
of calendar year 2011.
DATES: The due date to pay additional
royalties based on the major portion
prices is May 6, 2013.
FOR FURTHER INFORMATION CONTACT: John
Barder, Supervisory Manager, Team B,
Western Audit and Compliance, ONRR;
telephone (303) 231–3702; email John.
[email protected]; or Mike Curry,

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