Published 60-day FR notice 1014-0005

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Federal Register / Vol. 80, No. 99 / Friday, May 22, 2015 / Notices

any necessary adjustments to the burden
in our submission to OMB.
Public Comment Procedures: Before
including your address, phone number,
email address, or other personal
identifying information in your
comment, you should be aware that
your entire comment—including your
personal identifying information—may
be made publicly available at any time.
While you can ask us in your comment
to withhold your personal identifying
information from public review, we
cannot guarantee that we will be able to
do so.
Dated: May 14, 2015.
Douglas W. Morris,
Chief, Office of Offshore Regulatory Programs.
[FR Doc. 2015–12302 Filed 5–21–15; 8:45 am]
BILLING CODE 4310–VH–P

DEPARTMENT OF THE INTERIOR
Bureau of Safety and Environmental
Enforcement (BSEE)
[Docket ID BSEE–2015–0008; OMB Control
Number 1014–0005; 15XE1700DX
EEEE500000 EX1SF0000.DAQ000]

Information Collection Activities: Relief
or Reduction in Royalty Rates;
Proposed Collection; Comment
Request
ACTION:

60-Day notice.

To comply with the
Paperwork Reduction Act of 1995
(PRA), BSEE is inviting comments on a
collection of information that we will
submit to the Office of Management and
Budget (OMB) for review and approval.
The information collection request (ICR)
concerns a renewal to the paperwork
requirements in the regulations under
Relief or Reduction in Royalty Rates.
DATES: You must submit comments by
July 21, 2015.
ADDRESSES: You may submit comments
by either of the following methods listed
below.
• Electronically go to http://
www.regulations.gov. In the Search box,
enter BSEE–2015–0008 then click
search. Follow the instructions to
submit public comments and view all
related materials. We will post all
comments.
• Email [email protected].
Mail or hand-carry comments to the
Department of the Interior; Bureau of
Safety and Environmental Enforcement;
Regulations and Standards Branch;
ATTN: Cheryl Blundon; 45600
Woodland Road, Sterling, VA 20166.
Please reference ICR 1014–0005 in your
comment and include your name and
return address.

asabaliauskas on DSK5VPTVN1PROD with NOTICES

SUMMARY:

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FOR FURTHER INFORMATION CONTACT:

Cheryl Blundon, Regulations and
Standards Branch at (703) 787–1607 to
request additional information about
this ICR.
SUPPLEMENTARY INFORMATION:
Title: 30 CFR part 203, Relief or
Reduction in Royalty Rates.
OMB Control Number: 1014–0005.
Abstract: The Outer Continental Shelf
(OCS) Lands Act, 43 U.S.C. 1337, as
amended by the OCS Deep Water
Royalty Relief Act (DWRRA), Public
Law 104–58 and the Energy Policy Act
of 2005, Public Law 109–058, gives the
Secretary of the Interior (Secretary) the
authority to reduce or eliminate royalty
or any net profit share specified in OCS
oil and gas leases to promote increased
production. The DWRRA also
authorized the Secretary to suspend
royalties when necessary to promote
development or recovery of marginal
resources on producing or nonproducing leases in the Gulf of Mexico
(GOM) west of 87 degrees, 30 minutes
West longitude.
Section 302 of the DWRRA provides
that new production from a lease in
existence on November 28, 1995, in a
water depth of at least 200 meters, and
in the GOM west of 87 degrees, 30
minutes West longitude qualifies for
royalty suspension in certain situations.
To grant a royalty suspension, the
Secretary must determine that the new
production or development would not
be economic in the absence of royalty
relief. The Secretary must then
determine the volume of production on
which no royalty would be due in order
to make the new production from the
lease economically viable. This
determination is done on a case-by-case
basis. Production from leases in the
same water depth and area issued after
November 28, 2000, also can qualify for
royalty suspension in addition to any
that may be included in their lease
terms.
In addition, Federal policy and statute
require us to recover the cost of services
that confer special benefits to
identifiable non-Federal recipients. The
Independent Offices Appropriation Act
(31 U.S.C. 9701), Office of Management
and Budget (OMB) Circular A–25, and
the Omnibus Appropriations Bill (Pub.
L. 104–134, 110 Stat. 1321, April 26,
1996) authorize the Bureau of Safety
and Environmental Enforcement (BSEE)
to collect these fees to reimburse us for
the cost to process applications or
assessments.
Regulations at 30 CFR part 203
implement these statutes and policy and
require respondents to pay a fee to
request royalty relief. The OMB

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approved the information collection
burden under this collection 1014–0005.
Section 203.3(a) states that, ‘‘We will
specify the necessary fees for each of the
types of royalty-relief applications and
possible BSEE audits in a Notice to
Lessees. We will periodically update the
fees to reflect changes in costs, as well
as provide other information necessary
to administer royalty relief.’’
This authority and responsibility are
among those delegated BSEE. The
regulations at 30 CFR part 203, are the
subject of this collection. This request
also covers the related Notices to
Lessees and Operators (NTLs) that BSEE
issues to clarify, supplement, or provide
additional guidance on some aspects
We use the information to make
decisions on the economic viability of
leases requesting a suspension or
elimination of royalty or net profit
share. These decisions have enormous
monetary impact on both the lessee and
the Federal Government. Royalty relief
can lead to increased production of
natural gas and oil, creating profits for
lessees, and royalty and tax revenues for
the Federal Government that they might
not otherwise receive. We could not
make an informed decision without the
collection of information required by 30
CFR part 203.
No questions of a sensitive nature are
asked. BSEE will protect information
from respondents considered
proprietary under the Freedom of
Information Act (5 U.S.C. 552) and
DOI’s implementing regulations (43 CFR
2) and under regulations at 30 CFR
203.61, How do I assess my chances for
getting relief? and 30 CFR 250.197, Data
and information to be made available to
the public or for limited inspection.
Responses are mandatory or are
required to obtain or retain a benefit.
Frequency: On occasion or as a result
of situations encountered depending
upon the requirements.
Description of Respondents: Potential
respondents comprise Federal oil, gas,
or sulphur lessees and/or operators.
Estimated Reporting and
Recordkeeping Hour Burden: The
currently approved annual reporting
burden for this collection is 23,329
hours and $117,441 non-hour cost
burdens. In this submission, we are
requesting a total of 724 burden hours
and $27,950 non-hour cost burdens. The
following chart details the individual
components and respective hour burden
estimates of this ICR. In calculating the
burdens, we assumed that respondents
perform certain requirements in the
normal course of their activities. We
consider these to be usual and
customary and took that into account in
estimating the burden.

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29741

Federal Register / Vol. 80, No. 99 / Friday, May 22, 2015 / Notices
Application/audit fees (rounded)
Citation 30 CFR 203
and related NTL(s)

2; 3; 4; 70 ..................

Reporting or recordkeeping requirement +

Average number of
annual responses

Hour burden

These sections contain general references to submitting reports, applications, requests, copies, demonstrating qualifications, for BSEE approval—burdens covered under specific requirements.

Annual
burden
hours
(rounded)
0

Royalty Relief for Ultra-Deep Gas Wells and Deep Gas Wells on Shallow Water Leases
31(c) ...........................
35(a); 44(a); 47 ..........
35(c), (d); 44(b), (d),
(e).
35(d); 44(e) ................
41(d) ...........................
35(a); 44(a); 47(a) .....
35(c), (d); 44(b), (d),
(e).

46 ...............................

Request a refund of or recoup royalties from qualified ultra-deep wells.
Notify BSEE of intent to begin drilling and depth of
target.
Notify BSEE that production has begun, request
confirmation of the size of RSV—provide any/all
supporting documentation.
Request to extend the deadline for beginning production with required supporting documentation.
Request a refund of or recoup royalties from qualified wells >200 meters but <400 meters.
Notify BSEE of intent to begin drilling ........................
Notify BSEE that production has begun, request
confirmation of the size of RSV, provide any/all
supporting documentation (i.e., request to extend
deadline, credible activity schedule, etc).
Provide data from well to confirm and attest well
drilled was an unsuccessful certified well with supporting documentation and request supplement
(RSS).

1 .......................................

1 request ...................

1

1 .......................................

2 notifications ............

2

2 .......................................

2 notifications ............

4

4 .......................................

1 request ...................

4

1 .......................................

1 request ...................

1

1 .......................................
2 .......................................

2 notifications ............
2 notifications ............

2
4

8 .......................................

1 response ................

8

49(b) ...........................

Notify BSEE or decision to exercise option to replace one set of deep gas royalty suspension
terms for another set of such terms.

BSEE SOL requires that this reg text stay for legacy purposes
only. Last time any respondent could use was 2004; hence,
no burden.

Subtotal ...............

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

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

8 responses ...............

20

1 application every 10
years.

10

End of Life and Special Royalty Relief *
51; 83; 84; NTL ..........

Application—leases that generate earnings that cannot sustain continued production (end-of-life
lease); required supporting documentation; include
payment confirmation receipt.

100 ...................................

application 1/10 × $8,000 = $800 *
audit 1/10 × $12,500 = $1,250.
52 ...............................
55 ...............................
80; NTL ......................

Demonstrate ability to qualify/requalify for royalty relief or to re-qualify.
Renounce relief arrangement (end-of-life) (seldom, if
ever will be used; minimal burden to prepare letter).
Application—apart from formal programs for royalty
relief for marginal producing lease (Special Case
Relief); required supporting documentation; include payment confirmation receipt.

1 .......................................

1 response ................

1

1 .......................................

1 letter every 10
years.

1

250 ...................................

1 application every 10
years.

25

application 1/10 × $8,000 ** = $ 800.
audit 1/10 × $12,500 = $1,250.

asabaliauskas on DSK5VPTVN1PROD with NOTICES

80; NTL ......................

Application—apart from formal programs for royalty
relief for marginal expansion project or marginal
non-producing lease (Special Case Relief); required supporting documentation; include payment
confirmation receipt.

1,000 ................................

1 application every 10
years.

100

application 1/10 × $19,500 ** = $ 1,950.
audit 1/10 × $18,750 = $1,875.
Subtotal ...............

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

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

2 responses (rounded).
$7,925 fees

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137

29742

Federal Register / Vol. 80, No. 99 / Friday, May 22, 2015 / Notices
Application/audit fees (rounded)

Citation 30 CFR 203
and related NTL(s)

Reporting or recordkeeping requirement +

Average number of
annual responses

Hour burden

Annual
burden
hours
(rounded)

CPA Report
81; 83–90; 63 .............

Required reports; extension justification ....................

Burden included with applications.

0

1 CPA report × $45,000/10 each report = $4,500.
Subtotal ...............

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

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

1 response ................

$4,500

1 application every 10
years.

90

Deep Water Royalty Relief Act (DWRAA)
61; 62; 64; 65; 71; 83;
85–89;.
NTL ............................

Application—preview assessment (seldom if ever will
be used as applicants generally opt for binding determination by BSEE instead) and required supporting documentation; include payment confirmation receipt.

900 ...................................

application 1/10 × $28,500 = $2,850.
62; 64; 65; 71; 83;
85–89; NTL.

Application—leases in designated areas of GOM
deep water acquired in lease sale before 11/28/95
or after 11/28/00 and are producing (deep water
expansion project); required supporting documentation; include payment confirmation receipt.

2,000 ................................

1 application every 10
years.

200

application 1/10 x $19,500 = $1,950.
62; 64; 65; 203.71;
81; 83; 85–89; NTL.

Application—leases in designated areas of deep
water GOM, acquired in lease sale before 11/28/
95 or after 11/28/00 that have not produced (preact or post-2000 deep water leases); required supporting documentation; include payment confirmation receipt.

2,000 ................................

1 application every 10
years.

200

application 1/10 × $34,000 = $3,400 *
audit 1/10 × $37,500 = $3,750.
69; NTL ......................

Application—short form to add or assign pre-Act
lease and required supporting documentation; include payment confirmation receipt.

40 .....................................

1 application every 10
years.

4

application 1/10 × $1,000 = $100.
70; 81; 90; 76(c), (e);
NTL.

Submit post-production development report; extension justification. # Reserve right to audit (1 audit
every 6 years) after production starts to confirm
cost estimates of the application; include payment
confirmation receipt.

50 .....................................

1 report * every 10
years.

5

#1 audit 1/10 x $18,750 = $1,875.
74; 75; 76(d); NTL .....

Redetermination and required supporting documentation; include payment confirmation receipt.

500 ...................................

1 redetermination
every 10 years.

50

asabaliauskas on DSK5VPTVN1PROD with NOTICES

application 1/10 × $16,000 = $1,600 *
77 ...............................

Renounce relief arrangement (deep water) (seldom,
if ever will be used; minimal burden to prepare letter).

79 ...............................

Request reconsideration of BSEE field designation ..

79(c); 76(b) ................

Request extension of deadline to start construction ..

81; 83–90 ...................

Required reports; extension justification ....................

Subtotal ...............

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

1 .......................................

1 letter every 10
years.

This was a regulatory requirement for leases
issued prior to 1995.
2 .......................................

1 request every 10
years.

Burden included with applications.
..........................................

3 responses ...............
$15,525 fees

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1

0
1
0
551

29743

Federal Register / Vol. 80, No. 99 / Friday, May 22, 2015 / Notices
Application/audit fees (rounded)
Citation 30 CFR 203
and related NTL(s)

Reporting or recordkeeping requirement +
Hour burden

Average number of
annual responses

Annual
burden
hours
(rounded)

Recordkeeping
81(d) ...........................

Retain supporting cost records for post-production
development/fabrication reports (records retained
as usual/customary business practice; minimal
burden to make available at BSEE request).

8 .......................................

2 recordkeepers ........

16

Subtotal ...............

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

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

2 recordkeepers ........

16

Total Annual Burden.

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

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

16 Responses ...........

724

$27,950 Fees

asabaliauskas on DSK5VPTVN1PROD with NOTICES

+ In the future, BSEE may require electronic filing of some submissions.
* CPA certification expense burden also imposed on applicant.
** These applications currently do not have a set fee since they are done on a case-by-case basis.
Note: Applications include numerous items such as: transmittal letters, letters of request, modifications to applications, reapplications, etc.

Estimated Reporting and
Recordkeeping Non-Hour Cost Burden:
We have identified several non-hour
cost burdens for this collection. Under
§ 203.3, we charge lessees (respondents)
applying for royalty relief an amount
that covers the cost of processing their
applications and auditing financial data
when necessary to determine the
proposed development’s economic
situation. As discussed in section A.1,
these fees may be revised as necessary
to recover our costs in processing
royalty relief applications.
This submission includes these audits
and their associated fees. Since there
have been no applications approved in
the last 14 years under our formal
programs for deepwater royalty relief or
end of life, so their estimated number of
submittals is one every 10 years; but we
include the audit and their respective
fees due to the potential situation
arising.
We estimate this cost burden to be
approximately $23,450 annually. Refer
to the chart in Section A.12 of this
supporting statement for a breakdown.
Under § 203.81, a report prepared by
an independent certified public
accountant (CPA) must accompany the
application and post-production report
(expansion project, short form, and
preview assessment applications are
excluded). The OCS Lands Act
applications will require this report
only once; the DWRRA applications will
require this report at two stages—with
the application and post-production
development report for successful
applicants. We estimate an average cost
for a report is $45,000 and that one CPA
certification, during the information
collection extension period, will be
necessary if the applications are

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approved. This annual cost burden is
$45,000/10 years = $4,500.
Therefore, the total of the two burdens
under Section A.13 (a) and (b) is
estimated at $27,950. We have not
identified any other non-hour cost
burdens associated with this collection
of information.
Public Disclosure Statement: The PRA
(44 U.S.C. 3501, et seq.) provides that an
agency may not conduct or sponsor a
collection of information unless it
displays a currently valid OMB control
number. Until OMB approves a
collection of information, you are not
obligated to respond.
Comments: Before submitting an ICR
to OMB, PRA section 3506(c)(2)(A)
requires each agency ‘‘. . . to provide
notice . . . and otherwise consult with
members of the public and affected
agencies concerning each proposed
collection of information . . .’’.
Agencies must specifically solicit
comments to: (a) Evaluate whether the
collection is necessary or useful; (b)
evaluate the accuracy of the burden of
the proposed collection of information;
(c) enhance the quality, usefulness, and
clarity of the information to be
collected; and (d) minimize the burden
on the respondents, including the use of
technology.
Agencies must also estimate the nonhour paperwork cost burdens to
respondents or recordkeepers resulting
from the collection of information.
Therefore, if you have other than hour
burden costs to generate, maintain, and
disclose this information, you should
comment and provide your total capital
and startup cost components or annual
operation, maintenance, and purchase
of service components. For further
information on this burden, refer to 5

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CFR 1320.3(b)(1) and (2), or contact the
Bureau representative listed previously
in this notice.
We will summarize written responses
to this notice and address them in our
submission for OMB approval. As a
result of your comments, we will make
any necessary adjustments to the burden
in our submission to OMB.
Public Comment Procedures: Before
including your address, phone number,
email address, or other personal
identifying information in your
comment, you should be aware that
your entire comment—including your
personal identifying information—may
be made publicly available at any time.
While you can ask us in your comment
to withhold your personal identifying
information from public review, we
cannot guarantee that we will be able to
do so.
Dated: May 14, 2015.
Douglas W. Morris,
Chief, Office of Offshore Regulatory Programs.
[FR Doc. 2015–12304 Filed 5–21–15; 8:45 am]
BILLING CODE 4310–VH–P

DEPARTMENT OF THE INTERIOR
Bureau of Safety and Environmental
Enforcement
[Docket ID BSEE–2015–0007; OMB Control
Number 1014–0013; 15XE1700DX
EEEE500000 EX1SF0000.DAQ000]

Information Collection Activities:
Global Positioning Systems (GPS) for
Mobile Offshore Drilling Units (MODUs)
NTL; Proposed Collection; Comment
Request
ACTION:

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60-Day notice.

22MYN1