Supporting Statement 2014

Supporting Statement 2014.doc

Onshore Oil and Gas Operations (43 CFR part 3160)

OMB: 1004-0137

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Supporting Statement A


ONSHORE OIL AND GAS OPERATIONS (43 CFR PART 3160)


OMB Control Number 1004-0137


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. When the question “Does this ICR contain surveys, censuses, or employ statistical methods?” is checked "Yes," then a Supporting Statement B must be completed. OMB reserves the right to require the submission of additional information with respect to any request for approval.


Specific Instructions


Justification


1. Explain the circumstances that make the collection of information necessary. Identify any legal or administrative requirements that necessitate the collection.


The Bureau of Land Management (BLM) has the following authorities for collecting the required information from those who wish to participate in the exploration, development, production, and utilization of oil and gas operations on BLM-managed public lands:


  1. The Mineral Leasing Act of 1920 (30 U.S.C. 181 et seq.);

  2. The Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1701 et seq.);

  3. The Act of August 7, 1947 (Mineral Leasing Act of Acquired Lands) (30 U.S.C. 351‑359);

  4. The National Environmental Policy Act of 1969; and

  5. The regulations at 43 CFR part 3160.

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.


The BLM needs the required information in order to approve and regulate oil and gas operations on public lands.


Requirements for Operating Rights Owners and Operators

43 CFR Subpart 3162


The respondent must comply with the applicable laws and regulations, lease terms, onshore oil and gas orders, notices, and instructions. The BLM needs this information to approve oil and gas operations.


Application for Permit to Drill or Re-enter

43 CFR 3162.3-1

Form 3160-3


Under 43 CFR 3162.3-1, the respondent must file with the BLM Form 3160-3, Application for Permit to Drill, and the required information under this subpart to obtain approval of operations on BLM-managed lands. The BLM needs this information to approve the application.


Specific information we request on Form 3160-3:


(Item 1) Identify the type of work anticipated and provide production and zonal information. We require this information to manage reservoir management, royalty compliance, and operational aspects of the application for permit to drill.


(Items 2-3) Identify the operator and where the operator can be reached. We require this information to contact operator concerning the operations.


(Items 4-13) Identify specifically the proposed surface and bottom-hole locations of the proposed action. The BLM needs this information to determine whether the operator is complying with the provisions of the regulations in this subpart.


(Item 14) Identify the location of the operation. The BLM needs this information to locate the operation and industry personnel.


(Items 15-19) Identify the spacing orders. The BLM needs this information, and state agencies also require the same information, to determine if spacing orders are implemented.


(Item 20) Identify the bond number that covers the operations. The BLM needs this information to determine if we have proper bond coverage for the identified operations.


(Items 21-23) Identify technical information such as permit approval, evaluation, and subsequent on-the-ground review and inspection after actual drilling begins. The prospective production of resources must be included. The BLM needs this information to approve the individual operation.


(Item 24) Provide the additional information as part of the application:


-Certified well plat.

-Drilling plans.

-Surface use plan.

-Evidence of bond coverage.

-Operator certification.

-Diagrams.

-Maps.

-Contingency plans.


The BLM needs this information to approve the individual operation.


Well Completion or Recompletion Report and Log

43 CFR 3162.4-

Form 3160-4


Under 43 CFR 3162.4-1, the respondent must file with the BLM Form 3160-4, Well Completion or Re-completion Report and Log, to obtain approval of operations on BLM-managed lands. The BLM needs this information to approve the individual operation.


Specific information we request on Form 3160-4:

(Item 1) Identify the type of well and completion for field map purposes and royalty consideration. The BLM needs this information to identify the type of well and completion for field map purposes and royalty consideration for the individual operation.


(Items 2-3) Identify the operator, address, and telephone number. The BLM needs this information to identify the operator of the individual operation.


(Item 4) Identify surface and subsurface location of well for inspection and reservoir management purposes. The BLM needs this information to identify surface and subsurface location of well for inspection and reservoir management purposes for the individual operation.


(Item 5) Identify the lease serial number. The BLM needs this information to identify the lease serial number of the individual operation.


(Item 6) Identify the BIA identifier if the action is on Indian land. The BLM needs this information to identify if the individual operation is on Indian land.


(Item7) Identify the unit or CA agreement name and number. The BLM needs this information to identify if the individual operation is within a unit or CA agreement.


(Item 8) Identify the lease name and well number. The BLM needs this information to identify the lease name and well number of the individual operation.


(Item 9) Identify the API well number. The BLM needs this information to identify the API well number of the individual operation.


(Item 10) Identify the field and pool or exploratory. The BLM needs this information to identify the field and pool or exploratory of the individual operation.


(Item 11) Identify the section, township, range, and meridian (on block and survey or area). The BLM needs this information to identify the location of the individual operation.


(Item 12) Identify the county or parish. The BLM needs this information to identify the county or parish of the individual operation.


(Item 13) Identify the state. The BLM needs this information to identify the state of the individual operation.


(Item 14) Identify the date spudded. The BLM needs this information to identify the date the individual operation was spudded.


(Item 15) Identify the date T.D. reached. The BLM needs this information to identify the date T.D. was reached for the individual operation.


(Item 16) Identify the date completed. The BLM needs this information to identify the date the individual operation was completed.


(Item 17) Identify the elevations. The BLM needs this information to identify the elevations of the individual operation.


(Item 18) Identify the total depth. The BLM needs this information to identify the total depth of the individual operation.


(Item 19) Identify the plug back. The BLM needs this information to identify the plug back of the individual operation.


(Item 20) Identify the depth bridge plug set. The BLM needs this information to identify the depth bridge plug set for the individual operation.


(Item 21) Identify the type of electric and other mechanical logs run (submit copy of each). The BLM needs this information to identify the type of electric and other mechanical logs runs for the individual operation.


(Item 22) Identify whether the well cored, DST run, and directional survey (submit a copy of each report or analysis). The BLM needs this information to identify whether the well cored, DST run, and directional survey was completed for the individual operation.


(Item 23) Identify the casing and liner record. The BLM needs this information to identify the casing and liner record for the individual operation.


(Item 24) Identify the tubing record. The BLM needs this information to identify the tubing record for the individual operation.


(Item 25) Identify the producing intervals. The BLM needs this information to identify the producing intervals for the individual operation.


(Item 26) Identify the perforation record. The BLM needs this information to identify the perforation record for the individual operation.


(Item 27) Identify the acid, fracture, treatment, cement squeeze, etc. The BLM needs this information to identify the acid, fracture, treatment, cement squeeze, etc. for the individual operation.


(Item 28) Identify the production intervals. The BLM needs this information to identify the production intervals for the individual operation.


(Item 29) Identify the disposition of gas. The BLM needs this information to identify the disposition of gas for the individual operation.

(Item 30) Identify the summary of porous zones (include aquifers). The BLM needs this information to identify the summary of porous zones for the individual operation.


(Item 31) Identify the formation log markers. The BLM needs this information to identify the formation log markers for the individual operation.


(Item 32) Identify any additional remarks (including plugging procedures). The BLM needs this information to identify any additional remarks about the individual operation.


(Item 33) Identify the enclosed attachments with the application. The BLM needs this information to identify any enclosed attachments with the application concerning the individual operation.

Sundry Notices and Reports on Wells

43 CFR 3162.3-2

Form 3160-5


Under 43 CFR 3162.3-2, the respondent must file with the BLM Form 3160-5, Sundry Notices and Reports on Wells, and the required information under this subpart to obtain approval of operations on BLM-managed lands. The BLM needs this information to approve the application.


Specific information we request on Form 3160-5:


(Item 1) Identify the type of well. The BLM needs this information to identify the type of well for the individual operation.


(Items 2-3) Identify the name of the operator, address, and telephone number. The BLM needs this information to identify the operator of the individual operation.


(Item 4) Identify the location of well. The BLM needs this information to identify the location of the well for the individual operation.


(Item 5) Identify the lease serial number. The BLM needs this information to identify the lease serial number of the individual operation.


(Item 6) Identify the BIA identifier if the action is on Indian trust land. The BLM needs this information to identify if the individual operation is on Indian trust land.


(Item7) Identify the unit or CA agreement name and number. The BLM needs this information to identify if the individual operation is within a unit or CA agreement.


(Item 8) Identify the well name and number. The BLM needs this information to identify the well name and number of the individual operation.


(Item 9) Identify the API well number. The BLM needs this information to identify the API well number of the individual operation.


(Item 10) Identify the field and pool or exploratory area. The BLM needs this information to identify the field and pool or exploratory area of the individual operation.


(Item 11) Identify the county or parish. The BLM needs this information to identify the county or parish of the individual operation.


(Item 12) Identify the appropriate notice, report, or other data. The BLM needs this information to identify the appropriate notice, report, or other data on the individual operation.

Plan for Well Abandonment

43 CFR 3162.3-4


An operator must have in place a plan for well abandonment for each newly completed or recompleted well in which oil or gas is not encountered in paying quantities or which, after being completed as a producing well, is demonstrated to the satisfaction of the BLM to be no longer capable of producing oil or gas in paying quantities.


Schematic / Facilities Diagrams

43 CFR 3162.4-1(a) and 3162.7-5(d)(1))


Under 43 CFR 3162.4-1(a), an operator must keep accurate and complete records with respect to all lease operations including but not limited to production facilities and equipment, drilling, producing, redrilling, deepening, repairing, plugging back, and abandonment operations, and other matters pertaining to operations. With respect to production facilities and equipment, the record shall include schematic diagrams as required by applicable orders and notices.


Under 43 CFR 3162.7-5(d)(1), facility diagrams are required for all facilities which are used in storing oil/condensate produced from, or allocated to, Federal or Indian trust lands. Facility diagrams shall be filed within 60 days after new measurement facilities are installed or existing facilities are modified or following the inclusion of the facility into a federally supervised unit or communitization agreement.


Drilling Tests, Logs, and Surveys

43 CFR 3162.4-2(a)


Under 43 CFR 3162.4-2(a), during the drilling and completion of a well, the operator must, when required by the BLM, conduct tests, run logs, and make other surveys reasonably necessary to determine the presence, quantity, and quality of oil, gas, other minerals, or the presence or quality of water; to determine the amount and/or direction of deviation of any well from the vertical; and to determine the relevant characteristics of the oil and gas reservoirs penetrated.


Disposal of Produced Water

43 CFR 3162.5-1(b), 3164.1 and

Onshore Oil and Gas Order No. 7


Under 43 CFR 3164.1, the BLM has the authority to issue Onshore Oil and Gas Orders and Notices to Lessees. Onshore Oil and Gas Order No. 7, Disposal of Produced Water, prohibits the disposal of produced water unless and until approval is obtained from the BLM. Operators are encouraged to contact the appropriate authorized officer before filing an application for disposal of produced water so that the operator may be apprised of any existing agreements outlining cooperative procedures between the Bureau of Land Management and either the State/Indian trust Tribe or the Environmental Protection Agency concerning Underground Injection Control permits for injection wells, and of any potentially significant adverse effects on surface and/or subsurface resources. The approval of the Environmental Protection Agency or a State/ trust Tribe shall not be considered as granting approval to dispose of produced water from leased Federal or Indian trust lands until and unless BLM approval is obtained.


Report of Spills, Discharges, or Other Undesirable Events

43 CFR 3162.5-1(c))

Under 43 CFR 3162.5-1(c), each operator of a Federal or Indian trust lease must report all spills or leakages of oil, gas, produced water, toxic liquids, or waste materials, blowouts, fire, personal injuries, and fatalities.

Contingency Plan

43 CFR 3162.5-1(d)


Under 43 CFR 3162.5-1(d), when reasonably required by the BLM, an operator must submit a contingency plan describing procedures to be implemented to protect life, property, and the environment.


Direction Drilling

43 CFR 3162.5-2(b)


Under 43 CFR 3162.5-2(b), an operator must seek written approval from the BLM before conducting drilling operations in a manner so that the completed well does not deviate significantly from the vertical. Any well which so deviates without prior written approval must be reported promptly to the BLM. In these cases, a directional survey is required.


Well Markers

43 CFR 3162.6


Under 43 CFR 3162.6, every well within a Federal or Indian trust lease or supervised agreement generally must have a well identification sign. Only when specifically approved by the BLM may the sign display only a unique well name and API number. Otherwise, the sign must include the well number, the name of the operator, the lease serial number, and the surveyed location. All facilities at which Federal or Indian trust oil is stored must be clearly identified with a sign that contains the name of the operator, the lease serial number or communitization or unit agreement identification number, as appropriate, and in public land states, the quarter-quarter section, township, and range. All abandoned wells must be marked with a permanent monument. The requirement for a permanent monument may be waived in writing by the BLM.


Gas Flaring

43 CFR 3162.7-1(d), 3164.1, Onshore Oil and Gas Order No. 9, and

Notice to Lessees 4A


Under 43 CFR 3164.1, the BLM has the authority to issue Onshore Oil and Gas Orders and Notices to Lessees. Notice to Lessees 4A, Royalty or Compensation for Oil and Gas Lost, provides that, in general, gas well gas may not be flared or vented, and

oil well gas may not be vented or flared unless approved in writing by the BLM. The BLM may approve an application for the venting or flaring of oil well gas if justified either by the submittal of (1) an evaluation report supported by engineering, geologic, and economic data which demonstrates to the satisfaction of the Supervisor that the expenditures necessary to market or beneficially use such gas are not economically justified and that conservation of the gas, if required, would lead to the premature abandonment of recoverable oil reserves and ultimately to a greater loss of equivalent energy than would be recovered if the venting or flaring were permitted to continue or (2) an action plan that will eliminate venting or flaring of the gas within 1 year from the date of application.

Applications to flare gas must include all appropriate engineering, geologic, and economic data in support of the applicant's determination that conservation of the gas is not viable from an economic standpoint and, if approval is not granted to continue the venting or flaring of the gas, that it will result in the premature abandonment of oil production and/or the curtailment of lease development. The information provided must include the applicant's estimates of the volumes of oil and gas that would be produced to the economic limit if the application to vent or flare were approved and the volumes of the oil and gas that would be produced if the applicant was required to market or beneficially use the gas.


Records for Seals

43 CFR 3162.7-5(b


Under 43 CFR 3162.7-5(b), each operator of a Federal or Indian trust lease must:

  • For a minimum of 6 years, maintain a record of seal numbers used and document on which valves or connections they were used as well as when they were installed and removed. The site facility diagram(s) shall show which valves will be sealed in which position during both the production and sales phases of operation.

  • With reasonable frequency, inspect all leases to determine production volumes and determine that the minimum site security standards are being met. The operator shall retain records of such inspections and measurements for 6 years from generation. Such records and measurements shall be available to the BLM or authorized representative upon request.

  • Report theft or mishandling of oil from a Federal or Indian trust lease shall be reported to the authorized officer as soon as discovered, but not later than the next business day. Said report shall include an estimate of the volume of oil involved. Operators also are expected to report such thefts promptly to local law enforcement agencies and internal company security.


Site Security

43 CFR 3162.7-5(c) and

Onshore Oil and Gas Order No. 9


Under 43 CFR 3162.7-5(c), site security plans are required for all facilities that are subject to the regulations at 43 CFR part 3160. At an operator’s option, a single plan may include all of the operator’s leases, unit and communitized areas, within a single BLM district, provided the plan clearly identifies each lease, unit, or communitized area included within the scope of the plan and the extent to which the plan is applicable to each lease, unit, or communitized area so identified. The operator must retain the plan but notify the BLM of its completion and which leases, unit and communitized areas are involved. Such notification must include the location and normal business hours of the office where the plan will be maintained. Upon request, all plans must be made available to the BLM. The plan must include the frequency and method of the operator’s inspection and production volume recordation. The BLM may, upon examination, require adjustment of the method or frequency of inspection.


Prepare Run Tickets

43 CFR 3162.7-2, 3164.1, and

Onshore Oil and Gas Order No. 4


Under 43 CFR 3164.1, the BLM has the authority to issue Onshore Oil and Gas Orders and Notices to Lessees. Onshore Oil and Gas Order No. 4, Measurement of Oil, establishes requirements and minimum standards for the measurement of oil, and provides standard operating practices for lease oil storage and handling facilities, by the methods authorized in 43 CFR 3162.7-2, i.e., measurement by tank gauging, positive displacement metering, or other methods acceptable to the authorized officer. The Onshore Order also establishes abatement periods for corrective action when noncompliance with the minimum standards is detected. Proper reports of oil measurement ensure that the Federal Government and Indian mineral owners receive the royalties due, as specified in the governing oil and gas leases. The information required under Onshore Order No. 4 includes test data, meter reports, charts/recordings, and similar records.


Relief, Conflicts, and Appeals

43 CFR Subpart 3165


Under 43 CFR 3165.1, an application for relief from either the operating or the producing requirements of a lease, or both, must be filed with the BLM, and shall include a full statement of the circumstances that render such relief necessary. An application for a suspension or operations or production, or both, must be filed with the BLM before the expiration date of the lease; must be executed by all operating rights owners or, in the case of a Federal unit approved under 43 CFR part 3180, by the unit operator on behalf of the committed tracts or by all operating rights owners of such tracts; and must include a full statement of the circumstances that make such relief necessary.


Under 43 CFR 3165.3(b), any adversely affected party may request administrative review of a notice of violation or assessment or an instruction, order, or decision of the BLM issued under the regulations in 43 CFR part 3160. Such a request may be submitted to the appropriate State Director, either with or without an oral presentation. Such request, including all supporting documentation, must be filed in writing with the appropriate State Director within 20 business days of the date of receipt of the notice of violation or assessment or an instruction, order, or decision.

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.


The forms for this collection are electronically available to the public in fillable, printable format at: http://www.blm.gov/noc/st/en/business/eForms/3000-3999.html. A respondent who chooses to submit one of these forms electronically may do so by scanning and then emailing it to the appropriate BLM office.


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.


No duplication of information occurs in the information we collect. The requested information is unique to the operator/operating rights owner and the lease and is not available from any other data source. No similar information is available or able to be modified. The information is required to receive a benefit.


5. If the collection of information impacts small businesses or other small entities, describe any methods used to minimize burden.


The BLM is not required to collection information on whether the respondents qualify as small businesses or small entities. The information we require from all respondents is limited to the minimum necessary to authorize and regulate oil and gas operations on public lands.


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.


If we did not collect the information, or collected it less frequently, oil and gas leasing activities and operations could not occur on Federal or Indian trust leases in compliance with pertinent statutes.


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;

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

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

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

* 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;

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

* 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; or

* 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 that require the collection to be conducted in a manner inconsistent with the guidelines in 5 CFR 1320.5.


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 actions taken by the agency in response to these comments. Specifically address comments received on cost and hour burden.


Describe efforts to consult with persons outside the agency to obtain their views on the availability of data, frequency of collection, the clarity of instructions and recordkeeping, disclosure, or reporting format (if any), and on the data elements to be recorded, disclosed, or reported.


Consultation with representatives of those from whom information is to be obtained or those who must compile records should occur at least once every three years — even if the collection of information activity is the same as in prior periods. There may be circumstances that may preclude consultation in a specific situation. These circumstances should be explained.


On June 11, 2014, the BLM published the required 60-day notice in the Federal Register (79 FR 33592), and the comment period ended on August 11, 2014. The BLM received one public comment. The comment was a general invective about the Federal government, the Department of the Interior, the BLM, and Federal employees. It did not address, and was not germane to, this information collection. Therefore, we have not changed the collection in response to the comment.


During the approval period, the BLM consulted with the following respondents to solicit comments on the burden hour and cost estimates, availability of data, frequency of collection, clarity of instructions; recordkeeping, disclosure and on the data elements to be recorded, disclosed, or reported. The information is provided for each applicant, so the frequency of collection is determined by the number and frequency of the respondent’s applications. The burden estimates in Question 12 reflect their input in these consultations.


Judy Leno

Anadarko Petroleum Corporation

Granite Tower

1099 18th Street, Suite 1800

Denver, CO 80202

(720) 929-6000

[email protected]



Kyle Arthur

Chesapeake Energy Corporation

Regulatory Affairs Group

P.O. Box 18496

Oklahoma City, OK 73154-0496

(405) 925-2052

[email protected]



Ruth Ann Alford

Southwestern Energy Corporation (SEECO)

2350 North Sam Houston Parkway, East, Suite 125

Houston, TX 77032

[email protected]

1-866-322-0801


9. Explain any decision to provide any payment or gift to respondents, other than remuneration of contractors or grantees.


We do not provide payments or gifts to the respondents.


10. Describe any assurance of confidentiality provided to respondents and the basis for the assurance in statute, regulation, or agency policy.


We protect the respondent’s confidentiality to the extent consistent with the Freedom of Information Act (5 U.S.C. 552).


Under the privacy provisions of the E-Government Act of 2002, individuals/respondents were informed as to whether or not providing the information is mandatory to obtain a benefit.


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.


We do not require respondents to answer questions of a sensitive nature.


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.

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

* 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.


As shown at Table 12-1, below, the weighted average respondent hourly cost is $61.20. This cost was determined using national Bureau of Labor Statistics data at http://www.bls.gov/oes/current/oes_nat.htm. The benefits multiplier of 1.4 is supported by information at http://www.bls.gov/news.release/ecec.nr0.htm.


Table 12-1 — Estimated Weighted Average Hourly Costs


A.

Position

B.

Mean Hourly Pay Rate

C.

Hourly Rate with Benefits

(Column B x 1.4)

D.

Percent of Collection Time

E.

Weighted Average Hourly Cost

(Column C x Column D)

General Office Clerk

(43-9061)

$14.07

$19.70

10%

$1.97

Engineer

(17-2199)

$44.87

$62.82

80%

$50.26

Engineering Manager

(11-9041)

$64.06

$89.68

10%

$8.97

Totals



100%

$61.20


Estimated Hour and Cost Burdens: Hour and cost burdens to respondents include time spent for researching, preparing, and submitting information. The weighted average hourly wage associated with these information collections is shown at Table 12-1, above. The BLM’s estimate of the time it takes a respondent to supply the information was verified by consultations with several respondents (see Item 8, above).


The frequency of response for each of the information collections is “on occasion.”



Table 12-2 — Estimated Hour and Cost Burdens


A.

Type of Response

B.

Number of Responses

C.

Hours Per Response

D.

Total Hours

(Column B x Column C)

E.

Total Wage Cost (Column D x $61.20)

Application for Permit to Drill or Re-enter

(43 CFR 3162.3-1)

Form 3160-3

5,000

80

400,000

$24,480,000

Well Completion or Recompletion Report and Log

(43 CFR 3162.4-1)

Form 3160-4

5,000

4

20,000

$1,224,000

Sundry Notices and Reports on Wells

(43 CFR 3162.3-2)

Form 3160-5

35,000

8

280,000

$17,136,000

Plan for Well Abandonment

(43 CFR 3162.3-4)

1,500

8

12,000

$734,400

Schematic / Facility Diagrams

(43 CFR 3162.4-1(a) and 3162.7-5(d)(1))

1,000

8

8,000

$489,000

Drilling Tests, Logs, and Surveys
(43 CFR 3162.4-2(a))

110

8

880

$53,856

Disposal of Produced Water

(43 CFR 3162.5-1(b), 3164.1, and Onshore Oil and Gas Order No. 7)

1,500

8

12,000

$734,400

Report of Spills, Discharges, or Other Undesirable Events

(43 CFR 3162.5-1(c))

215

8

1,720

$105,264

Contingency Plan

(43 CFR 3162.5-1(d))

52

32

1,664

$101,837

Horizontal and Directional Drilling

(43 CFR 3162.5-2(b))

2,100

8

16,800

$1,028,160

Well Markers

(43 CFR 3162.6)

1,000

8

8,000

$489,600

Gas Flaring

(43 CFR 3162.7-1(d), 3164.1, and Notice to Lessees 4A)

120

16

1,920

$117,504

Records for Seals

(43 CFR 3162.7-5(b))

90,000

0.75

67,500

$4,131,000

Site Security

(43 CFR 3162.7-5(c))

2,500

8

20,000

$1,224,000

Prepare Run Tickets

(43 CFR 3162.7-2, 3164.1, and Onshore Oil and Gas Order No. 4)

90,000

0.75

67,500

$4,131,000

Application for Suspension or Other Relief

(43 CFR 3165.1)

100

16

1,600

$97,920

State Director Review

(43 CFR 3165.3(b))

55

16

880

$53,856

Totals

235,252


920,464

$56,331,797



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

* The cost estimate should be split into two components: (a) a total capital and start-up cost component (annualized over its expected useful life) and (b) a total operation and maintenance and purchase of services component. The estimates should take into account costs associated with generating, maintaining, and disclosing or providing the information (including filing fees paid for form processing). Include descriptions of methods used to estimate major cost factors including system and technology acquisition, expected useful life of capital equipment, the discount rate(s), and the time period over which costs will be incurred. Capital and start-up costs include, among other items, preparations for collecting information such as purchasing computers and software; monitoring, sampling, drilling and testing equipment; and record storage facilities.

* If cost estimates are expected to vary widely, agencies should present ranges of cost burdens and explain the reasons for the variance. The cost of purchasing or contracting out information collection services should be a part of this cost burden estimate. In developing cost burden estimates, agencies may consult with a sample of respondents (fewer than 10), utilize the 60-day pre-OMB submission public comment process and use existing economic or regulatory impact analysis associated with the rulemaking containing the information collection, as appropriate.

* Generally, estimates should not include purchases of equipment or services, or portions thereof, made: (1) prior to October 1, 1995, (2) to achieve regulatory compliance with requirements not associated with the information collection, (3) for reasons other than to provide information or keep records for the government, or (4) as part of customary and usual business or private practices.


No capital and start-up costs are involved with this information collection -- respondents are not required to purchase additional computer hardware or software to comply with these information collection requirements. The Fiscal Year 2014 Interior appropriations law (section 1010 (a) of Public Law No. 96-487) directs the BLM to charge a $6,500 processing fee for Form 3160-3, Application for Permit to Drill or Re-Enter. We estimate that 5,000 of these applications are filed annually. The total estimated non-hour cost burden is $32,500,000.



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.


The hourly cost to the Federal Government is based on the U.S. Office of Personnel Management Salary Table at http://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/#url=2014. The benefits multiplier of 1.5 is implied by information at http://www.bls.gov/news.release/ecec.nr0.htm.

Table 14-1 — Weighted Average Federal Wage Cost


A.

Position

B.

Pay Grade

C.

Hourly Pay Rate ($/hour)

D.

Hourly Rate with Benefits (Column C x 1.5)

E.

Percent of Collection Time

F.

Weighted Avg. ($/hour)

(Column D x Column E)

Clerical

GS-5, step 5

$15.05

$22.58

10%

$2.26

Professional

GS-9, step 5

$22.80

$34.20

80%

$27.36

Managerial

GS-13, step 5

$39.31

$58.97

10%

$5.90

Weighted Average Hourly Pay Rate ($/hour): $35.52


The Table below shows the annualized Federal costs for each collection. The estimated time spent to process the information collections is based on the BLM's experience. The weighted average hourly wage associated with these information collections is shown at Table 14-1, above.

Table 14-2 — Estimated Annual Cost to the Government


A.

Type of Response

B.

Number of Responses

C.

Hours Per Response

D.

Total Hours

(Column B x Column C)

E.

Total Wage Cost

(Column D x $35.52)

Application for Permit to Drill or Re-enter

(43 CFR 3162.3-1)

Form 3160-3

5,000

16

80,000

$2,841,600

Well Completion or Recompletion Report and Log

(43 CFR 3162.4-1)

Form 3160-4

5,000

1

5,000

$177,600

Sundry Notices and Reports on Wells

(43 CFR 3162.3-2)

Form 3160-5

35,000

1

35,000

$1,243,200

Plan for Well Abandonment

(43 CFR 3162.3-4)

1,500

1

1,500

$53,280

Schematic / Facility Diagrams

(43 CFR 3162.4-1(a) and 3162.7-5(d)(1))

1,000

3

3,000

$106,650

Drilling Tests, Logs, and Surveys
(43 CFR 3162.4-2(a))

110

1

110

$3,907

Disposal of Produced Water

(43 CFR 3162.5-1(b), 3164.1, and Onshore Oil and Gas Order No. 7)

1,500

1

1,500

$53,280

Report of Spills, Discharges, or Other Undesirable Events

(43 CFR 3162.5-1(c))

215

1

215

$7,637

Contingency Plan

(43 CFR 3162.5-1(d))

52

2

104

$3,695

Horizontal and Directional Drilling

(43 CFR 3162.5-2(b))

2,100

1

2,100

$74,592

Well Markers

(43 CFR 3162.6)

1,000

8

8,000

$284,160

Gas Flaring

(43 CFR 3162.7-1(d), 3164.1, and Notice to Lessees 4A)

120

2

240

$8,525

Records for Seals

(43 CFR 3162.7-5(b))

90,000

0.25

22,500

$799,200

Site Security

(43 CFR 3162.7-5(c))

2,500

1

2,500

$88,800

Prepare Run Tickets

(43 CFR 3162.7-2, 3164.1, and Onshore Oil and Gas Order No. 4)

90,000

0.25

22,500

$799,200

Application for Suspension or Other Relief

(43 CFR 3165.1)

100

4

400

$14,208

State Director Review

(43 CFR 3165.3(b))

55

16

880

$31,257

Totals

235,252


185,549

$6,590,701


15. Explain the reasons for any program changes or adjustments in hour or cost burden.

There are no program changes. We have adjusted the estimated overall number of responses upward as follows:


A.

Type of Response

B.

Requested Responses

C.

Approved Responses

D.

Difference Between Requested and Approved Responses

Application for Permit to Drill or Re-enter

(43 CFR 3162.3-1)

5,000

5,000

0

Well Completion or Recompletion Report and Log (43 CFR 3162.4-1)

Form 3160-4

5,000

5,000

0

Sundry Notices and Reports on Wells (43 CFR 3162.3-2)

Form 3160-5

35,000

34,000

+1,000

Plan for Well Abandonment

(43 CFR 3162.3-4)

1,500

1,500

0

Schematic/Facility Diagrams (43 CFR 3162.4-1(a) and 3162.7-5(d)(1))

1,000

1,000

0

Drilling Tests, Logs, and Surveys (43 CFR 3162.4-2(a))

110

100

+10

Report of Spills, Discharges, or Other Undesirable Events

(43 CFR 3162.5-1(c))

215

200

+15

Contingency Plan

(43 CFR 3162.5-1(d))

52

50

+2

Horizontal and Directional Drilling

(43 CFR 3162.5-2(b))

2,100

165

+1,935

Well Markers

(43 CFR 3162.6)

1,000

1,000

0

Gas Flaring

(43 CFR 3162.7-1(d), 3164.1, and Notice to Lessees 4A)

120

100

+20

Records for Seals

(43 CFR 3162.7-5(b))

90,000

90,000

0

Site Security

(43 CFR 3162.7-5(c))

2,500

2,415

+85

Prepare Run Tickets

(43 CFR 3162.7-2, 3164.1, and Onshore Oil and Gas Order No.4)

90,000

90,000

0

Application for Suspension or Other Relief

(43 CFR 3165.1)

100

100

0

State Director Review

(43 CFR 3165.3(b))

55

50

+5

Totals:

235,252

232,180

+3,072


We have adjusted the overall estimate of burden upward as follows:


A.

Type of Response

B.

Requested Time Burden

C.

Approved Time Burden

D.

Difference Between Requested and Approved Time Burden

Application for Permit to Drill or Re-enter

(43 CFR 3162.3-1)

400,000

400,000

0

Well Completion or Recompletion Report and Log (43 CFR 3162.4-1)

Form 3160-4

20,000

20,000

0

Sundry Notices and Reports on Wells (43 CFR 3162.3-2)

Form 3160-5

280,000

272,000

+8,000

Plan for Well Abandonment

(43 CFR 3162.3-4)

12,000

12,000

0

Schematic/Facility Diagrams (43 CFR 3162.4-1(a) and 3162.7-5(d)(1))

8,000

8,000

0

Drilling Tests, Logs, and Surveys (43 CFR 3162.4-2(a))

880

800

+80

Disposal of Produced Water (43 CFR 3162.5-1(b), 3164.1 and Onshore Oil and Gas No. 7

12,000

12,000

0

Report of Spills, Discharges, or Other Undesirable Events

(43 CFR 3162.5-1(c))

1,720

1,600

+120

Contingency Plan

(43 CFR 3162.5-1(d))

1,664

1,600

+64

Horizontal and Directional Drilling

(43 CFR 3162.5-2(b))

16,800

1,320

+15,480

Well Markers

(43 CFR 3162.6)

8,000

8,000

0

Gas Flaring

(43 CFR 3162.7-1(d), 3164.1, and Notice to Lessees 4A)

1,920

1,600

+320

Records for Seals

(43 CFR 3162.7-5(b))

67,500

67,500

0

Site Security

(43 CFR 3162.7-5(c))

20,000

19,320

+680

Prepare Run Tickets

(43 CFR 3162.7-2, 3164.1, and Onshore Oil and Gas Order No.4)

67,500

67,500

0

Application for Suspension or Other Relief

(43 CFR 3165.1)

1,600

1,600

0

State Director Review

(43 CFR 3165.3(b))

880

800

+80

Totals:

920,464

895,640

+24,824

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.


The BLM will not publish the results of this collection.


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.


The BLM will display the expiration date of the OMB approval on the forms included in this information collection.


18. Explain each exception to the topics of the certification statement identified in "Certification for Paperwork Reduction Act Submissions."


There are no exceptions to the certification statement.

File Typeapplication/msword
File TitleSUPPORTING STATEMENT FOR OMB CONTROL NUMBER 1004-0034, OIL AND GAS LEASE TRANSFERS BY ASSIGNMENTS OR OPERATING RIGHTS (SUBLEASE)
Authorbgamble
Last Modified BySonneman, Jean E
File Modified2014-10-09
File Created2014-10-09

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