published 30-Day FRN

Federal Register / Vol. 78, No. 231 / Monday, December 2, 2013 / Notices
Persons interested in reviewing
environmental documents for the
proposals listed above or obtaining
information about the SEAs and FONSIs
prepared by the Gulf of Mexico OCS
Region are encouraged to contact BOEM
at the address or telephone listed in the
FOR FURTHER INFORMATION CONTACT

section.
Dated: November 4, 2013.
John L. Rodi,
Regional Director, Gulf of Mexico OCS Region.

FOR FURTHER INFORMATION CONTACT:

[FR Doc. 2013–28728 Filed 11–29–13; 8:45 am]
BILLING CODE 4310–MR–P

DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue
[Docket No. ONRR–2012–0006; DS63610300
DR2PS0000.CH7000 134D0102R2]

Agency Information Collection
Activities: Submitted for Office of
Management and Budget Review;
Comment Request
Office of the Secretary, Office
of Natural Resources Revenue (ONRR).
ACTION: Notice of a revision of currently
approved information collection (OMB
Control Number 1012–0005).
AGENCY:

To comply with the
Paperwork Reduction Act of 1995
(PRA), the Office of Natural Resources
Revenue (ONRR) is notifying the public
that we have submitted to the Office of
Management and Budget (OMB) an
information collection request (ICR) to
renew approval of the paperwork
requirements in the regulations under
title 30, Code of Federal Regulations
(CFR), parts 1202, 1204, and 1206. 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 also includes Form
ONRR–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 ‘‘Federal Oil and Gas
Valuation—30 CFR Parts 1202, 1204,
and 1206.’’
DATES: OMB has up to 60 days to
approve or disapprove the information
collection request but may respond after
30 days; therefore, you should submit
your public comments to OMB by
January 2, 2014 for the assurance of
consideration.
ADDRESSES: Submit comments to the
Office of Information and Regulatory

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SUMMARY:

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Affairs, Office of Management and
Budget, Attention: Desk Officer for the
Department of the Interior (1012–0005),
by telefax at (202) 395–5806 or via email
to [email protected].
Also, please send a copy of your
comments to Armand Southall,
Regulatory Specialist, Office of Natural
Resources Revenue, P.O. Box 25165, MS
61030A, Denver, Colorado 80225. Please
reference ‘‘ICR 1012–0005’’ in your
comments.
Armand Southall, Regulatory Specialist,
email [email protected]. You
may also contact Mr. Southall to obtain
copies, at no cost, of (1) The ICR, (2) any
associated form, and (3) the regulations
that require us to collect the
information. To see a copy of the entire
ICR submitted to OMB, go to http://
www.reginfo.gov/public/PRAMain and
select ‘‘Information Collection Review,’’
then select ‘‘Department of the Interior’’
in the drop-down box under ‘‘Currently
Under Review.’’
SUPPLEMENTARY INFORMATION:
Title: Federal Oil and Gas Valuation—
30 CFR Parts 1202, 1204, and 1206.
OMB Control Number: 1012–0005.
Bureau Form Number: Form ONRR–
4393.
Abstract: 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. 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 title 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
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

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or individual agrees to pay the lessor a
share in a value of production from the
leased lands. The lessee, or designee,
must 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.
A. 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.
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 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 662⁄3
percent on Federal leases. Lessees must
complete and submit Form ONRR–4393,
including a letter and supporting
documentation, for both Federal and

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Federal Register / Vol. 78, No. 231 / Monday, December 2, 2013 / Notices

Indian leases to request to exceed
allowance limitations. This ICR covers
only Federal leases; therefore, we have
not included burden hours of Form
ONRR–4393 for Indian leases in this
ICR. We include burden hours of Form
ONRR–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. 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 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
ONRR–4377 through December 31,
2013. However, 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 in this ICR.
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) the request to exceed
regulatory allowance limitation 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
valuing Federal oil and gas, including
(a) transportation and processing
allowances and (b) the request to exceed
regulatory allowance limit information
[Form ONRR–4393]. ONRR also requires
that lessees submit the allowance
information and form to obtain benefits
for claiming allowances on Form
ONRR–2014. In addition, ONRR
requires lessees to respond to
information collections in regards to
requesting approval for accounting and
auditing relief.
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:

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
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

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1202.152(a) and (b) ................

Standards for reporting and paying royalties on gas ......

Burden covered under OMB Control 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 °F . . .
(b) Residue gas and gas plant product volumes shall be reported as specified in this paragraph. . . .

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Federal Register / Vol. 78, No. 231 / Monday, December 2, 2013 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
30 CFR 1202, 1204, and 1206

Reporting and recordkeeping requirement

Average
number of
annual
responses

Hour burden

Annual
burden
hours

PART 1204—ALTERNATIVES FOR MARGINAL PROPERTIES
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. . . .
(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.

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

emcdonald on DSK67QTVN1PROD with NOTICES

1204.203(b), 1204.205(a) and
(b), and 1204.206(a)(3)(i)
and (b)(1).
1204.208 (c)(1), (d)(1), and (e)

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

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Burden covered under OMB Control Number
1012–0004.

Burden covered under OMB Control Number
1012–0004.

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

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Federal Register / Vol. 78, No. 231 / Monday, December 2, 2013 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued

30 CFR 1202, 1204, and 1206

Reporting and recordkeeping requirement

Average
number of
annual
responses

Hour burden

Annual
burden
hours

(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?

Burden covered under OMB Control Number
1012–0004.

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

Is minimum royalty due on a property for which I took
relief?

Burden covered under OMB Control Number
1012–0004.

(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.
Accounting and Auditing Relief Subtotal ...............................................................................

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

10

526

45

5

225

8

2

16

Part 1206—Product Valuation
Subpart C—Federal Oil
1206.102(e)(1) ........................

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

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

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How do I calculate royalty value for oil that I or my affiliate sell(s) under an arm’s-length contract?

AUDIT PROCESS. See note.

(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 sold under an arm’slength 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 ONRR-approved publication, you
may not select a different publication more often than
once every 2 years, . . .

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Federal Register / Vol. 78, No. 231 / Monday, December 2, 2013 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
30 CFR 1202, 1204, and 1206

Reporting and recordkeeping requirement

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 . . .
(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: . . .

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) ........................

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

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

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

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

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

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What records must I keep to support my calculations of
value under this subpart?

How do I determine a transportation allowance under
an arm’s-length transportation contract?

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800

400

2

800

400

2

800

50

10

500

330

2

660

40

10

400

8

2

16

20

2

40

20

1

20

Burden covered under OMB Control Number
1012–0004.

(2) You must submit your initial proposal, including all available data, within 3 months after first claiming the allocated deductions on Form ONRR–2014.
(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.

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AUDIT PROCESS. See note.

(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 . . .

Annual
burden
hours

Burden covered under OMB Control Number
1012–0004.

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. . . . Your
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 . . .

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Federal Register / Vol. 78, No. 231 / Monday, December 2, 2013 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued

30 CFR 1202, 1204, and 1206

Reporting and recordkeeping requirement

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 . . .
(k)(2) You may propose to ONRR a cost allocation method
on the basis of the values . . .
(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 ONRR–2014.

1206.111(k)(2) ........................
1206.111(l)(1) and (l)(3) .........

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

(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.

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.
(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.
(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 onetenth percent difference in sulfur content, unless ONRR
approves a higher adjustment.
What are my reporting requirements under an arm’slength transportation contract?

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

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

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

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

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Hour burden

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

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

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Average
number of
annual
responses

Annual
burden
hours

30

1

30

30

1

30

20

1

20

Burden covered under OMB Control Number
1012–0004.

80

1

80

20

2

40

80

4

320

80

4

320

80

2

160

Burden covered under OMB Control Number
1012–0004.
AUDIT PROCESS. See note.

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Federal Register / Vol. 78, No. 231 / Monday, December 2, 2013 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
30 CFR 1202, 1204, and 1206

Reporting and recordkeeping requirement

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

What are my reporting requirements under a non-arm’slength transportation arrangement?

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

Hour burden

(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 your affiliate to submit all
data used to calculate the allowance deduction. . . .

Average
number of
annual
responses

Annual
burden
hours

Burden covered under OMB Control Number
1012–0004.

AUDIT PROCESS. See note.

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

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

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

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

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

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

AUDIT PROCESS. See note.

(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;
(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
gas.
(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’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.

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

(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. . . .

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

Valuation standards—processed gas.

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

1206.153(b)(3) ........................
emcdonald on DSK67QTVN1PROD with NOTICES

Valuation standards—unprocessed gas.

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

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80

Burden covered under OMB Control Number
1012–0004.
AUDIT PROCESS. See note.

Frm 00046

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10

10

100

40

5

200

1

80

AUDIT PROCESS. See note.

(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 . . .

PO 00000

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AUDIT PROCESS. See note.

(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;

Jkt 232001

1

Sfmt 4703

80

AUDIT PROCESS. See note.

Burden covered under OMB Control Number
1012–0004.

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72106

Federal Register / Vol. 78, No. 231 / Monday, December 2, 2013 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued

30 CFR 1202, 1204, and 1206

Reporting and recordkeeping requirement

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.

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
. . .
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 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.
. . .

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

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

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

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

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

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

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

emcdonald on DSK67QTVN1PROD with NOTICES

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

Hour burden

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.

(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 ONRR–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. . . .
(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.

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

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Annual
burden
hours

AUDIT PROCESS. See note.

10

2

20

80

15

1,200

40

1

40

40

3

120

AUDIT PROCESS. See note.

Burden covered under OMB Control Number
1012–0004.
AUDIT PROCESS. See note.

(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.

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

Average
number of
annual
responses

40

1

40

40

1

40

10

3

30

Burden covered under OMB Control Number
1012–0004.

E:\FR\FM\02DEN1.SGM

100

1

100

100

1

100

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Federal Register / Vol. 78, No. 231 / Monday, December 2, 2013 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
30 CFR 1202, 1204, and 1206

Reporting and recordkeeping requirement

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. . . .
(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.

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

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

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

emcdonald on DSK67QTVN1PROD with NOTICES

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

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

VerDate Mar<15>2010

20:41 Nov 29, 2013

Hour burden

Average
number of
annual
responses

Annual
burden
hours

100

1

100

100

1

100

100

1

100

(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 ONRR–2014 to notify ONRR of a
transportation allowance.
(c)(2)(iii) ONRR may require you to submit all data used to
calculate the allowance deduction. . . .

Burden covered under OMB Control Number
1012–0004.

(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

Burden covered under OMB Control Number
1012–0004.

AUDIT PROCESS. See note.

Burden covered under OMB Control Number
1012–0004.
AUDIT PROCESS. See note.

(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.
(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’s-length. . . .
The lessee must claim a processing allowance by reporting
it on a separate line entry on the Form ONRR–2014.

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80

8

640

80

1

80

Burden covered under OMB Control Number
1012–0004.

AUDIT PROCESS. See note.

Burden covered under OMB Control Number
1012–0004.

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72108

Federal Register / Vol. 78, No. 231 / Monday, December 2, 2013 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued

30 CFR 1202, 1204, and 1206

Reporting and recordkeeping requirement

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.

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 ONRR–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 . . .
(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.
. . .

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) .......

Hour burden

(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’slength 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
. . .

Annual
burden
hours

AUDIT PROCESS. See note.

20

1

20

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

Average
number of
annual
responses

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

117

8,672

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 identified no ‘‘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

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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

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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)

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Federal Register / Vol. 78, No. 231 / Monday, December 2, 2013 / Notices
minimize the burden on the
respondents, including the use of
automated collection techniques or
other forms of information technology.
To comply with the public
consultation process, we published a
notice in the Federal Register on March
7, 2013 (78 FR 14824), announcing that
we would submit this ICR to OMB for
approval. The notice provided the
required 60-day comment period. We
received no unsolicited comments in
response to the notice.
If you wish to comment in response
to this notice, you may send your
comments to the offices listed under the
ADDRESSES section of this notice. OMB
has up to 60 days to approve or
disapprove the information collection,
but they may respond after 30 days.
Therefore, in order to ensure maximum
consideration, OMB should receive
public comments by January 2, 2014.
Public Comment Policy: We will post
all comments, including names and
addresses of respondents, at http://
www.regulations.gov. Before including
your address, phone number, email
address, or other personal identifying
information in your comment, you
should be aware that we may make your
entire comment—including your
personal identifying information—
publicly available at any time. While
you can ask us in your comment to
withhold from public view your
personal identifying information, we
cannot guarantee that we will be able to
do so.
Office of the Secretary, Information
Collection Clearance Officer: David
Alspach (202) 219–8526.
Dated: November 1, 2013.
Gregory J. Gould,
Director, Office of Natural Resources
Revenue.
[FR Doc. 2013–27084 Filed 11–29–13; 8:45 am]
BILLING CODE 4310–T2–P

DEPARTMENT OF THE INTERIOR
Bureau of Reclamation
[G63–0982–9832–100–96–76, 84–55000]

Quarterly Status Report of Water
Service, Repayment, and Other WaterRelated Contract Actions
Bureau of Reclamation,
Interior.
ACTION: Notice.

emcdonald on DSK67QTVN1PROD with NOTICES

AGENCY:

Notice is hereby given of
contractual actions that have been
proposed to the Bureau of Reclamation
(Reclamation) and are new, modified,
discontinued, or completed since the
last publication of this notice. This

SUMMARY:

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20:41 Nov 29, 2013

Jkt 232001

notice is one of a variety of means used
to inform the public about proposed
contractual actions for capital recovery
and management of project resources
and facilities consistent with section 9(f)
of the Reclamation Project Act of 1939.
Additional announcements of
individual contract actions may be
published in the Federal Register and in
newspapers of general circulation in the
areas determined by Reclamation to be
affected by the proposed action.
ADDRESSES: The identity of the
approving officer and other information
pertaining to a specific contract
proposal may be obtained by calling or
writing the appropriate regional office at
the address and telephone number given
for each region in the SUPPLEMENTARY
INFORMATION section.
FOR FURTHER INFORMATION CONTACT:
Michelle Kelly, Water and
Environmental Resources Division,
Bureau of Reclamation, P.O. Box 25007,
Denver, Colorado 80225–0007;
telephone 303–445–2888.
SUPPLEMENTARY INFORMATION: Consistent
with section 9(f) of the Reclamation
Project Act of 1939, and the rules and
regulations published in 52 FR 11954,
April 13, 1987 (43 CFR 426.22),
Reclamation will publish notice of
proposed or amendatory contract
actions for any contract for the delivery
of project water for authorized uses in
newspapers of general circulation in the
affected area at least 60 days prior to
contract execution. Please use the first
quarter notice, 78 FR 21969, dated April
12, 2013, as a reference.
Announcements may be in the form of
news releases, legal notices, official
letters, memorandums, or other forms of
written material. Meetings, workshops,
and/or hearings may also be used, as
appropriate, to provide local publicity.
The public participation procedures do
not apply to proposed contracts for the
sale of surplus or interim irrigation
water for a term of 1 year or less. Either
of the contracting parties may invite the
public to observe contract proceedings.
All public participation procedures will
be coordinated with those involved in
complying with the National
Environmental Policy Act. Pursuant to
the ‘‘Final Revised Public Participation
Procedures’’ for water resource-related
contract negotiations, published in 47
FR 7763, February 22, 1982, a tabulation
is provided of all proposed contractual
actions in each of the five Reclamation
regions. When contract negotiations are
completed, and prior to execution, each
proposed contract form must be
approved by the Secretary of the
Interior, or pursuant to delegated or
redelegated authority, the Commissioner

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72109

of Reclamation or one of the regional
directors. In some instances,
congressional review and approval of a
report, water rate, or other terms and
conditions of the contract may be
involved.
Public participation in and receipt of
comments on contract proposals will be
facilitated by adherence to the following
procedures:
1. Only persons authorized to act on
behalf of the contracting entities may
negotiate the terms and conditions of a
specific contract proposal.
2. Advance notice of meetings or
hearings will be furnished to those
parties that have made a timely written
request for such notice to the
appropriate regional or project office of
Reclamation.
3. Written correspondence regarding
proposed contracts may be made
available to the general public pursuant
to the terms and procedures of the
Freedom of Information Act, as
amended.
4. Written comments on a proposed
contract or contract action must be
submitted to the appropriate regional
officials at the locations and within the
time limits set forth in the advance
public notices.
5. All written comments received and
testimony presented at any public
hearings will be reviewed and
summarized by the appropriate regional
office for use by the contract approving
authority.
6. Copies of specific proposed
contracts may be obtained from the
appropriate regional director or his or
her designated public contact as they
become available for review and
comment.
7. In the event modifications are made
in the form of a proposed contract, the
appropriate regional director shall
determine whether republication of the
notice and/or extension of the comment
period is necessary.
Factors considered in making such a
determination shall include, but are not
limited to, (i) the significance of the
modification, and (ii) the degree of
public interest which has been
expressed over the course of the
negotiations. At a minimum, the
regional director will furnish revised
contracts to all parties who requested
the contract in response to the initial
public notice.
Definitions of Abbreviations Used in the
Reports
ARRA American Recovery and
Reinvestment Act of 2009
BCP Boulder Canyon Project
Reclamation Bureau of Reclamation
CAP Central Arizona Project

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