0005_ss_102113

Supporting Statement A
Federal Oil and Gas Valuation–
30 CFR Parts 1202, 1204, and 1206
OMB Control Number 1012-0005

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
overseeing mineral resource development on Federal and Indian lands and the Outer
Continental Shelf (OCS). The Secretary’s responsibility, under various laws, is 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.
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 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. The information that we collect
includes data necessary to ensure that royalties are valued correctly. 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, subparts C and D
Part 1204, subpart C
Part 1206, subparts C and D

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:
•
•
•
•
•
•

Public Law 97-451—Jan. 12, 1983 Federal Oil and Gas Royalty Management Act
of 1982 (FOGRMA)
Public Law 104-185—Aug. 13, 1996 (Federal Oil and Gas Royalty Simplification
and Fairness Act of 1996 [RSFA]), as corrected by Public Law 104-200—Sept.
22, 1996
The Mineral Leasing Act of 1920, Section 36, as amended (30 U.S.C. 192)
Outer Continental Shelf Lands Act of 1953, Section 27, as amended (43 U.S.C.
1353)
30 U.S.C. 189 pertaining to Public Lands
30 U.S.C. 359 pertaining to Acquired Lands

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 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 in Item 12 for all reporting requirements and
associated burden hours. All data submitted is subject to subsequent audit and
adjustment.
Federal Oil and Gas Valuation Regulations
The valuation regulations at 30 CFR part 1206, subparts C and D, mandate that lessees
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. Lessees report certain data on Form ONRR-2014, Report of Sales and
Royalty Remittance (OMB Control Number 1012-0004). 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 ONRR-2014.
Regulatory Allowance Limit for Transportation: Under certain circumstances,
regulations authorize lessees to deduct from royalty payments the reasonable, actual costs
of transporting the royalty portion of produced oil and gas from the lease to a processing
or sales point not in the immediate lease area. For oil and gas, regulations establish the
allowable limit on transportation allowance deductions at 50 percent of the value of the

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oil or gas.
Regulatory Allowance Limit for Processing: When gas is processed for the recovery
of gas plant products, lessees may claim a processing allowance. Regulations establish
the allowable limit on processing allowance deductions at 66⅔ percent of the value of
each gas plant product.
Request to Exceed Regulatory Allowance Limitation, Form ONRR-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 66⅔ percent on Federal leases. To request permission
to exceed a regulatory allowance limit, lessees must complete and submit Form ONRR4393, including a letter and supporting documentation, to ONRR explaining why a higher
allowance limit is necessary. On Form ONRR-4393, lessees must provide us with the
data necessary to identify the properties and time periods for which the lessee is
requesting to exceed the regulatory limits. ONRR verifies that these costs actually
exceed regulatory allowance limits. Lessees report supporting information on Form
ONRR-4393 for both Federal and Indian leases. We include burden hours for completion
of Form ONRR-4393 for Indian leases in OMB Control Number 1012-0002, Indian Oil
and Gas Valuation.
Accounting and Auditing Relief for Marginal Properties
In 2004, we amended our regulations to comply with RSFA section 7. The regulations
provide guidance for lessees and designees seeking accounting and auditing relief for
qualifying Federal marginal properties. There are two types of relief: (1) cumulative
royalty reports and payments relief, and (2) other relief. Under 30 CFR 1204.202, ONRR
requires notification from lessees who request to take the cumulative royalty reporting
and payment relief option. Under 30 CFR 1204.203, ONRR also requires a relief request
from lessees who want to obtain any other type of accounting and auditing relief. The
regulations require lessees who choose to obtain relief to supply this information, in order
to obtain these benefits.
A State may decide in advance if it will allow either one or both relief options for each
particular year and must notify the ONRR Director, in writing, of its decision. If a State
does not notify ONRR, in writing, then ONRR will deem that the State has decided not to
allow either or both relief options. After consulting with the State concerned, ONRR will
approve, deny, or modify requests, in writing. Under the regulations, both ONRR and the
State concerned must approve any accounting and auditing relief granted for a marginal
property. Therefore, ONRR and the State concerned must determine that the relief is in
the best interest of the Federal Government and the State.
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

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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. On October 6, 2010, BLM published a final rule (75 FR 61624) that removed
this citation from their regulations. This change is not currently reflected in title 30 CFR,
chapter XII.
For production through January 31, 2006, lessees submitted Form ONRR-4377, Stripper
Royalty Rate Reduction Notification, to notify ONRR of royalty rate changes. Although
BLM terminated the royalty rate reductions, ONRR will continue verifying previously
submitted notifications and may require the operator to submit an amended Form ONRR4377 through December 31, 2013. However, effective January 1, 2014, ONRR will
discontinue the information collection requirements of the Stripper Oil Program in this
ICR.
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.
Our Government Paperwork Elimination Act Plan indicates that we evaluate such
transactions for electronic submission. We offer an electronic copy of Form ONRR-4393
on our website at http://www.onrr.gov/FM/Forms/AFSoil_Gas.htm; lessees may complete
forms and submit electronically as an email attachment. We have a reasonable
expectation that 10 percent may use the email option in the future.
For accounting and auditing relief, we will accept responses by electronic mail and
expect to receive, on an average, 50 percent of the responses electronically. Submission
by electronic mail is the most efficient and immediate means for submission of the
notification or relief request. The information requested of the lessee in its notification or
relief request is the minimum information necessary to efficiently process the lessee’s
notification or request for accounting and auditing relief.
Since BLM terminated the stripper oil royalty rate reduction program, ONRR will not
develop further capability for electronic submissions. Operators may submit an amended
Form ONRR-4377 to ONRR via email. ONRR will complete verifying previously
submitted notifications through December 31, 2013, and effective January 1, 2014,
ONRR will discontinue the information collection requirements of the Stripper Oil
royalty rate reductions in this ICR.

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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 Federal
Government agency currently collecting similar information for other purposes that could
serve our needs. We ensure that the lessee’s burden is minimized and not duplicated.
The valuation and allowance information that we collect is unique and specific to valuing
and paying royalties derived from oil and gas from Federal leases. The marginal property
accounting and auditing relief program is also unique; the lessee’s decision to participate
in the relief comes only from the lessee or designee. ONRR makes every effort to avoid
duplication of the information collection.
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 businesses or other small entities as potential respondents. However, this
collection, which includes 30 CFR parts 1202, 1204, and 1206 regulatory requirements,
does impact small entities. ONRR carefully analyzed its valuation, allowances, and
marginal property relief requirements to ensure that the information we request is the
minimum necessary and places the least possible burden on industry. ONRR has a longstanding policy to restrict the amount of information that we collect to the minimum
necessary to efficiently (1) accomplish our mission and (2) fulfill our responsibilities.
ONRR also determined that this collection of information has no special reporting
provisions on small businesses or other small entities differently than larger entities.
However, small businesses would likely have less information to report than a larger
entity would. Respondents, including small businesses or other small entities, have the
flexibility to submit information to us electronically or in hardcopy.
ONRR provides toll-free telephone assistance and periodic training free of charge to all
respondents in various geographic areas, to assist them in complying with valuation,
reporting, and marginal property relief requirements. We encourage all respondents to
contact us to better familiarize themselves with the reporting requirements. We also
maintain ongoing contact with respondents to resolve questions as they arise. Both
industry and the Federal Government benefit from this exchange of information.
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 necessary information allows ONRR to fulfill its mission in a timely
manner. In this ICR, there are no technical obstacles to reduce the burden; however, the
legal obstacles are substantive.

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The information that we collect provides a critical link to establishing the proper value of
oil and gas from Federal lands. If ONRR does not collect the valuation and allowances
information, this would limit the Secretary’s ability to discharge fiduciary duties. We
also could not accomplish our mandated mission, which may result in a loss of royalties
for both Federal and State governments. The request to exceed a regulatory allowance
limit is voluntary and results in a benefit to the lessee.
If ONRR does not receive the information concerning marginal property relief, the
lessees and its designees cannot obtain the accounting and auditing relief that RSFA
section 7 offers. Wells on marginal properties may be prematurely abandoned, resulting
in a permanent loss of royalty revenues to the Federal Government and the State
concerned, as well as a loss of production revenues to the lessee or designee.
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.

This item is not applicable in this collection because (1) the lessees will notify ONRR
occasionally, when needed, concerning the allowance request; and (2) the States will
notify ONRR annually of their intent to allow or not allow one or both of the relief
options. The Federal lessees and designees will file a one-time notification or request for
relief with ONRR, and then again only if any changes occur.
•

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

According to 30 CFR 1204.208(c), State(s) will notify ONRR if the former will or will
not allow one or both of the relief options within 30 days after October 1st for the next
calendar year.
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requiring respondents to submit more than an original and two copies of any
document.

There are no special circumstances with respect to 5 CFR 1320.5(d)(2)(iii).
•

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

RSFA section 4(f) requires that Federal oil and gas lessees maintain records for seven
years after the obligation becomes due.
•

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.

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There are no special circumstances with respect to 5 CFR 1320.5(d)(2)(v).
•

requiring the use of 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 this
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.

There are no special circumstances with respect to 5 CFR 1320.5(d)(2)(viii) as this
collection does not require proprietary, trade secret, or other confidential information not
protected by agency procedures. We protect this information under the 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 three years, and describe the
agency’s actions taken 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 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

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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 notice in the Federal
Register on March 7, 2013 (78 FR 14824). We did not receive any comments in response
to the Federal Register notice from www.regulations.gov.
ONRR maintains regular, ongoing contact with lessees and States concerned regarding
Federal properties. We also provide toll-free telephone assistance and encourage
customer feedback as we answer questions regarding valuation, allowances, and
accounting and auditing relief requirements and other concerns related to qualified
Federal properties. In addition, we explain in the Paperwork Reduction Act (PRA)
statement on Form ONRR-4393 that we accept comments on the information collected
and the burden estimate at any time. In this statement, we also display the OMB control
number and provide the address to send comments to ONRR.
Program staff made a sincere effort to elicit meaningful feedback from lessees and
State(s) concerned. They contacted the lessees and State(s) concerned, listed below,
regarding the 60-day Federal Register notice and the burden hour estimates. They also
sent copies of the notice via electronic mail soliciting comments from the lessees and
State(s) concerned listed below.
Contacts made / comments received:
On March 13, 2013, ONRR emailed the following industry and State personnel and
received comments. Some of the industry personnel agreed with our burden estimates,
and others had no comments. Below are other comments that we received.
Morris Miller, Accounting Supervisor
WPX Energy
[email protected]
Steve Dilsaver, Administrator
Department of Audit, Mineral Audit Division
Herschler Building, 3rd Floor East Wing
122 West 25th Street
Cheyenne, WY 82002
[email protected]
Pam Williams
Regulatory Compliance Liaison
Shell Exploration & Production Company
EP Americas
Woodcreek C-234D, P.O. Box 576, Houston, TX 77001-0576
[email protected]

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Roger Good
IBM Business Consulting Services
[email protected]
Lisa J. Crothers
Director, Upstream Financial Services
ConocoPhillips
[email protected]
Greg Morby, Production Services Manager
Chevron North America Exploration and Production Company
1400 Smith, 49-084, Houston, TX 77002
713-372-1671
[email protected]
Specific Comments:
From Greg Morby’s email dated May 6, 2013:

[A]fter receiving some of your clarifications and feedback ,most of the Hour Burden estimates we
found to be either appropriate or in many cases not applicable (at least in recent memories of
several of us).
One estimate we feel is to low is the following. We would suggest doubling to 80 hours (and this
could go even higher when follow up questions from ONRR are brought into the approval
process).
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. . . .

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120

ONRR Response: ONRR appreciates the commenter's input regarding burden hours for
requests for approval for transportation allowances in excess of previously described
limitations. At this time, ONRR has only received one comment regarding a change to
this measure of burden hours. Other interviewees either found the hours appropriate or
had no comment. Therefore ONRR will not change the chart at this time but will
continue to monitor and consider any future comments regarding 30 CFR 1206.156(c)(3)
burden hours.
9. Explain any decision to provide any payment or gift to respondents, other than
remuneration of contractors or grantees.
ONRR will not provide any payment or gift to respondents in this collection.

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10. Describe any assurance of confidentiality provided to respondents and the basis for
the assurance in statute, regulation, or agency policy.
Companies may provide proprietary commercial or financial information, relating to
minerals they removed from Federal and Indian leases, to ONRR. The FOGRMA, as
amended (30 U.S.C. 1733), the Freedom of Information Act (5 U.S.C. 552 (b)(4)), and its
implementing regulations establish standards to protect trade secrets and other proprietary
information. In addition, ONRR has strict security measures in place for 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 information 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.

For Federal oil and gas valuation requirements, we estimate approximately 120 Federal
lessees/designees and 7 States concerned who may submit the required information
annually and on occasion. We estimated the average number of responses that ONRR
will receive is 127 per year, and the total reporting burden to both lessees and States
concerned is 9,198 hours per year. 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. The States concerned
require an annual in-depth analysis to inform ONRR of their decision to participate or not
participate in the accounting and auditing relief.

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•

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

Summary of Information Collections
Information Collections
Oil and Gas Valuation
(Parts 1202 and 1206)
Request to Exceed
Regulatory Allowance
Limitation
(Form MMS-4393)
(Sections 1206.109,
1206.156, and
1206.158(c)(3))
Accounting and Auditing
Relief for Marginal
Properties—Industry
(Sections
1204.202(b)(1),
1204.203(b),
1204.205(a) & (b), and
1204.206(a)(3)(i) &
(b)(1))
Accounting and Auditing
Relief for Marginal
Properties—States
(Section 1204.208(c)(1),
(d)(1), & (e))

Requirement
to Respond
Mandatory

Frequency
of
Response
On
occasion

Annual
Burden
Hours

Annual
Cost
($52/hr)

104

7,896

$410,592

Required to
obtain a
benefit

On
occasion

13

776

$40,352

Required to
obtain a
benefit

Annually

3

246

$12,792

Required to
obtain a
benefit

Annually

7

280

$14,560

127

9,198

$478,296

TOTAL

•

Number of
Annual
Responses

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.

We based our cost estimates for industry and States on the expectation that an accountant
will perform all requirements. We estimate the total annual reporting burden is 9,198
hours. Based on a cost factor of $52 per hour for industry and State accountants, we
estimate the total annual cost to industry and States is $478,296 ($52 x 9,198 hours =
$478,296).
We used tables from the Bureau of Labor Statistics (BLS) to estimate the hourly cost for
accountants in a metropolitan area. These statistics are located at
http://www.bls.gov/bls/wages.htm. We estimated the hourly labor cost at $52, calculated
as follows:
$37.43 hourly mean wage x 1.4 benefit cost factor = $52.402 rounded to $52.

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There are no additional recordkeeping costs. We have not included in our estimates
certain requirements performed in the normal course of business and considered usual
and customary. The following table shows the estimated burden hours by CFR section
and paragraph:
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS
30 CFR
1202,1204,
and 1206

Reporting and Recordkeeping
Requirement

Hour
Burden

Average
Number of
Annual
Responses

Annual
Burden
Hours

PART 1202—ROYALTIES
1202.101

1202.152(a)
and (b)

Subpart C—Federal and Indian Oil
Standards for reporting and
Burden covered under OMB Control
paying royalties.
Number 1012-0004.
Oil volumes are to be reported
in barrels of clean oil of 42
standard U.S. gallons
(231 cubic inches each) at
60 ºF. . . .
Subpart D—Federal Gas
Standards for reporting and
Burden covered under OMB Control
paying royalties on gas.
Number 1012-0004.
(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 ºF . . .
(b) Residue gas and gas plant
product volumes shall be
reported as specified in this
paragraph. . . .

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PART 1204—ALTERNATIVES FOR MARGINAL PROPERTIES
1204.202(b)(1)

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

Subpart C—Accounting and Auditing Relief
What is the cumulative
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1
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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. . . .
(b)(2) Submit your royalty
Burden covered under OMB Control
report and payment . . . by the
Number 1012-0004.
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. . . .

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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 ONRR-2014 for the
calendar year . . . And
(5) Report allowances on Form
ONRR-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 ONRR-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. . . .

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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Burden covered under OMB Control
Number 1012-0004.

200

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200

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

1204.209(b)

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...
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. . .

15

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7

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6

1

6

1204.210(c)
and (d)

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

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.
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.

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16

10

526

1206.102(e)(1)

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

1206.103(a)(4)

1206.103(b)(1)

Part 1206—Product Valuation
Subpart C—Federal Oil
How do I calculate royalty
AUDIT PROCESS. See note.
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.
How do I value oil that is not
45
5
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...
(a)(4) After you select an
8
2
ONRR-approved publication,
you may not select a different
publication more often than
once every 2 years, . . .
(b) Production from leases in
400
2
the Rocky Mountain Region. . . .
(1) If you have an ONRRapproved tendering program,
you must value oil . . .

17

225

16

800

1206.103(b)(1)
(ii)

1206.103(b)(4)

1206.103(c)(1)

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

1206.105

1206.107(a)

1206.109(c)(2)

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

18

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2

800

400

2

800

50

10

500

330

2

660

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40

10

400

8

2

16

1206.110(a)

1206.110
(d)(3)

1206.110(e)

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

1206.110
(g)(2)

. . . Your application for
exception (using Form ONRR4393, Request to Exceed
Regulatory Allowance
Limitation) must contain all
relevant and supporting
documentation necessary for
ONRR to make a determination
...
How do I determine a
transportation allowance
under an arm's-length
transportation contract?
(a) . . . You must be able to
demonstrate that your or your
affiliate’s contract is at arm’s
length. . . .
(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 . . .
(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.
(e)(1) . . . If ONRR rejects your
cost allocation, you must amend
your Form ONRR-2014 . . .
(2) You must submit your initial
proposal, including all available
data, within 3 months after first
claiming the allocated
deductions on Form ONRR2014.
(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.

19

AUDIT PROCESS. See note.

20

2

40

20

1

20

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5

1206.111(g)

1206.111(k)(2)

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

1206.111(l)(2)

1206.112
(a)(1)(ii)

1206.112
(a)(1)(ii)

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

30

1

30

30

1

30

(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 ONRR2014.
(l)(2) . . . If ONRR rejects your
cost allocation, you must amend
your Form ONRR-2104 for the
months that you used the
rejected method and pay any
additional royalty and interest
due.
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....
(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

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40

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

1206.112
(b)(3)

1206.112(c)(2)

(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...
(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 . . .
(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.

21

80

4

320

80

4

320

80

2

160

1206.114

1206.115(a)

1206.115(c)

1206.152
(b)(1)(i) and
(b)(1)(iii)

1206.152
(b)(2)

1206.152
(b)(3)

What are my reporting
requirements under an arm'slength transportation
contract?
You or your affiliate must use a
Burden covered under OMB Control
separate entry on Form ONRR- Number 1012-0004.
2014 to notify ONRR of an
allowance based on
transportation costs you or your
affiliate incur.
ONRR may require you or your
AUDIT PROCESS. See note.
affiliate to submit arm’s-length
transportation contracts,
production agreements,
operating agreements, and
related documents. . . .
What are my reporting
Burden covered under OMB Control
requirements under a nonNumber 1012-0004.
arm's-length transportation
arrangement?
(a) You or your affiliate must
use a separate entry on Form
ONRR-2014 to notify ONRR of
an allowance based on
transportation costs you or your
affiliate incur.
(c) ONRR may require you or
AUDIT PROCESS. See note.
your affiliate to submit all data
used to calculate the allowance
deduction. . . .
Subpart D—Federal Gas
Valuation standards-AUDIT PROCESS. See note.
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.
(b)(2) . . . The lessee must
80
1
80
request a value determination in
accordance with paragraph (g)
of this section for gas sold
pursuant to a warranty
contract;...
(b)(3) ONRR may require a
AUDIT PROCESS. See note.
lessee to certify that its arm’slength contract provisions
include all of the consideration
to be paid by the buyer, either
directly or indirectly, for the gas.

22

1206.152
(e)(1)

1206.152
(e)(2)

1206.152
(e)(3)

1206.152(g)

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

1206.153
(b)(2)

(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. . . .
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’slength 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.
(e)(3) A lessee shall notify
ONRR if it has determined value
pursuant to paragraph (c)(2) or
(c)(3) of this section. . . .
(g) The lessee may request a
value determination from
ONRR. . . . The lessee shall
submit all available data
relevant to its proposal. . . .
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.
(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;...

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10

10

100

40

5

200

AUDIT PROCESS. See note.

80

1

80

1206.153
(b)(3)

1206.153
(e)(1)

1206.153
(e)(2)

1206.153
(e)(3)

1206.153(g)

1206.154(c)(4)

1206.156(c)(3)

(b)(3) ONRR may require a
lessee to certify that its arm’slength 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.
(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. . . .
(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’slength 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.
(e)(2) A lessee shall notify
ONRR if it has determined any
value pursuant to paragraph
(c)(2) or (c)(3) of this section. . .
206.153(g) The lessee may
request a value determination
from ONRR. . . The lessee shall
submit all available data
relevant to its proposal. . . .
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. . . .
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

24

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10

2

20

80

15

1,200

40

1

40

40

3

120

1206.157
(a)(1)(i).

1206.157
(a)(1)(iii)

1206.157
(a)(2)(ii)

1206.157
(a)(3)

1206.157
(a)(5)

1206.157
(b)(1)

this section. . . . An application
for exception (using Form
ONRR-4393, Request to
Exceed Regulatory Allowance
Limitation) must contain all
relevant and supporting
documentation necessary for
ONRR to make a
determination. . . .
Determination of
transportation allowances.
(a) Arm’s-length transportation
contracts. (1)(i) . . . The lessee
shall have the burden of
demonstrating that its contract
is arm’s-length. . . .
The lessee must claim a
transportation allowance by
reporting it on a separate line
entry on the Form ONRR-2014.
(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.
(a)(2)(ii) . . . the lessee may
propose to ONRR a cost
allocation method on the basis
of the values of the products
transported. . . .
(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. . . .
(a)(5) . . . The transportation
factor may not exceed 50
percent of the base price of the
product without ONRR
approval.
(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 ONRR2014...

25

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40

1

40

40

1

40

10

3

30

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

1206.157
(b)(3)(i)

1206.157
(b)(3)(ii)

1206.157
(b)(4)

1206.157
(b)(5)

1206.157
(c)(1)(i)

1206.157
(c)(1)(ii)

1206.157
(c)(2)(i)

1206.157
(c)(2)(iii)

(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. . . .
(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.
(b)(3)(ii) . . . the lessee may
propose to the ONRR a cost
allocation method on the basis
of the values of the products
transported. . . .
(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. . . .
(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.
(c) Reporting Requirements. (1)
Arm’s-length contracts. (i) You
must use a separate entry on
Form ONRR-2014 to notify
ONRR of a transportation
allowance.
(c)(1)(ii) ONRR may require you
to submit arm’s-length
transportation contracts,
production agreements,
operating agreements, and
related documents. . . .
(c)(2) Non-arm’s-length or no
contract. (i) You must use a
separate entry on Form ONRR2014 to notify ONRR of a
transportation allowance.
(c)(2)(iii) ONRR may require
you to submit all data used to
calculate the allowance
deduction. . . .

26

100

1

100

100

1

100

100

1

100

100

1

100

100

1

100

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

1206.158(c)(3)

(e) Adjustments. (2) For lessees
transporting production from
onshore Federal leases, the
lessee must submit a corrected
Form ONRR-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
ONRR-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 ONRR-2014 by the
amount of that payment. You
must modify Form ONRR-2014
by the amount received or
credited for the affected
reporting period and pay any
resulting royalty and late
payment interest due;…
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 ONRR-4393,
Request to Exceed Regulatory
Allowance Limitation) shall
contain all relevant and
supporting documentation for
ONRR to make a
determination....

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1206.158
(d)(2)(i)

1206.158
(d)(2)(ii)

1206.159
(a)(1)(i)

1206.159
(a)(1)(iii)

1206.159
(a)(3)

1206.159
(b)(1)

(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. . .
(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.
Determination of processing
allowances.
(a) Arm’s-length processing
contracts.
(1)(i). . .The lessee shall have
the burden of demonstrating
that its contract is arm’slength. . . .
The lessee must claim a
processing allowance by
reporting it on a separate line
entry on the Form ONRR-2014.
(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.
(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. . . .
(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 ONRR-2014.
...

28

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1

80

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

1206.159
(b)(4)

1206.159
(c)(1)(i)

1206.159
(c)(1)(ii)

1206.159
(c)(2)(i)

1206.159
(c)(2)(iii)

1206.159
(e)(2) and
(e)(3)

(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 . . .
(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. . . .
(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 ONRR-2014.
(c)(1)(ii) ONRR may require that
a lessee submit arm’s-length
processing contracts and
related documents. . . .
(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 ONRR-2014.
(c)(2)(iii) Upon request by
ONRR, the lessee shall submit
all data used to prepare the
allowance deduction. . . .
(e) Adjustments…(2) For
lessees processing production
from onshore Federal leases,
the lessee must submit a
corrected Form ONRR-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 ONRR-2014 to
reflect actual costs, together
with its payment, in accordance
with instructions provided by
ONRR . . .

29

100

1

100

100

1

100

Burden covered under OMB Control
Number 1012-0004.

AUDIT PROCESS. See note.

Burden covered under OMB Control
Number 1012-0004.

AUDIT PROCESS. See note.

Burden covered under OMB Control
Number 1012-0004.

Oil and Gas Valuation Subtotal
TOTAL

117
127

8,672
9,198

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 Items 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 burden 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 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.

30

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.
To analyze, review, and process the information, the Federal Government spends an
average of 1 hour for each hour spent by respondents. The total estimated Federal
Government time burden is 9,198 hours. The total estimated burden to the Federal
Government is based on time needed to complete all data gathering requirements and to
analyze Form ONRR-4393. Employees who perform these tasks are paid under the
United States Office of Personnel Management General Schedule, which is located at
http://www.archive.opm.gov/oca/12tables/html/den_h.asp. Based on the Grade 12, Step
5, pay scale for a Federal Government accountant in the Denver, Colorado, area, the
estimated hourly labor cost is $60 ($40.10 per hour x 1.5 benefit cost factor = $60.15,
rounded to $60). The total annual estimated cost burden on the Federal Government is
$551,880 (9,198 hrs x 1 hr = 9,198 hrs x $60 per hour = $551,880).
15. Explain the reasons for any program changes or adjustments in hour or cost
burden.
(a) Annual Hour Burden.
Currently
Approved OMB
Burden Hour
Inventory

Program Change
Estimated
Burden Hours

9,378

<180>

Adjustment
Change Estimated
Burden Hours

Total
Estimated
Burden Hour
9,198

There is a program change decrease of 180 hours as a result of discontinuing the
stripper oil royalty rate reduction requirements in 30 CFR 1210.155.
(b) Annual Cost Burden.
There is no cost burden for this collection.
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 will not publish the data.

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17. If seeking approval to not 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 Form ONRR-4393.
ONRR will display the expiration date of OMB’s approval on any correspondence that
we send to lessees or designees concerning this information collection.
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.”

32