Form ONRR-4393 Request to Exceed Regulatory Allowance Limitation

Request to Exceed

OMB Control Number 1012-0002

Regulatory Allowance Limitation

OMB Approval Expires 09/30/2015

U.S. Department of the Interior
Office of Natural Resources Revenue

Form ONRR-4393
1 ONRR USE

PROJECT NO.________________________________

RECEIPT DATE (MM/DD/CCYY) _______/_______/________UPDATE: ADD / CHANGE / DEACTIVATE (circle one)
DECISION DATE (MM/DD/CCYY)_______/_______/________APPROVED / DENIED / BOTH (circle one)
PROJECT COMMENTS:______________________________________________________________________

2 PAYOR CODE:__________________________

5 PAYOR NAME:

3 REPORTING PERIOD
6 PAYOR ADDRESS:
FROM:______________TO:________________
4 REQUEST TO EXCEED ALLOWANCE
LIMIT FOR (CIRCLE ONE)

7 PAYOR CONTACT:

Oil Transportation (Federal)
Oil Transportation (Indian)
Gas Transportation (Federal)
Gas Transportation (Indian)
Gas Processing (Federal)

ONRR USE 11
9
10
Line A/D
No.

8 TELEPHONE:

12
Lease Number

Agreement Number

13

14
SALES
PROD
TYPE
CODE
CODE

15
A/C/D

ONRR USE
16
LINE COMMENTS

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Paperwork Reduction Act of 1995 (PRA) Statement: The PRA (44 U.S.C. 3501 et seq. ) requires us to inform you that we collect this information to ensure that royalties are paid properly. The
ONRR uses the information to determine whether the lessee qualifies for an exception to the allowance limitation regulations at 30 CFR part 206. Responses are required to obtain a benefit.
Proprietary information is protected in accordance with standards established by the Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1733), the Freedom of Information Act (5
U.S.C. 552(b)(4)), and the Deparment regulations (43 CFR 2). An Agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a
currently valid OMB Control Number. Annual public reporting burden for this form is estimated to average 4 hours per response, including the time for reviewing instructions, gathering and maintaining
data, and completeing and reviewing the form. Direct comments regarding the burden estimate or any other aspect of this form to Office of Natural Resources Revenue,
Attention: Rules & Regs Team, P.O. Box 25165, MS 61030A, Denver, CO 80225-0165

Form ONRR-4393 (revised 9/2015)

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Request to Exceed Regulatory Allowance Limitation
Form ONRR-4393
General Instructions
The Form ONRR-4393 is used by the reporter to ensure that ONRR receives the lease data required to
make a decision on the request to exceed the regulatory allowance limitations by including the lease
number, the agreement number (if applicable), the product code, and the sales type code for the product
being processed or transported.
Transportation Allowance
In accordance with 30 CFR 1206.109 for Federal oil, §1206.156 for Federal gas, §1206.56 for Indian oil,
and §1206.177 for Indian gas, your transportation allowance deduction at the sales type code level may
not exceed 50 percent of the value of the oil, unprocessed gas, residue gas or gas plant product. Upon
request of a lessee, ONRR may approve a transportation allowance deduction in excess of the limitations.
To receive this approval, the lessee must demonstrate that the transportation costs incurred in excess of
the limitations were reasonable, actual, and necessary. Under no circumstances may an allowance reduce
the value for royalty purposes under any individual contractual arrangement to zero. 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.
Processing Allowance
In accordance with §1206.158 for Federal gas, the processing allowance deduction on the basis of an
individual contractual arrangement may not exceed 66 2/3 percent of the value of each gas plant product,
(such a value to be reduced first for any transportation allowances related to postprocessing transportation
authorized by §206.156). Upon request of a lessee, ONRR may approve a processing allowance in excess
of the regulatory allowance limitation. The lessee must demonstrate that the processing costs incurred in
excess of the regulatory allowance limitation were reasonable, actual and necessary. 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. Please note that
lessee’s on Indian lands are not allowed to exceed the regulatory processing allowance limit of 66 2/3
percent.
Mail Form ONRR-4393 to:
Office of Natural Resources Revenue
Minerals Reveneue Management
Royalty Valuation
PO Box 25165, MS 63120B
Denver, CO 80225-0165

Form ONRR-4393 (revised 9/2015)

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Request to Exceed Regulatory Allowance Limitation
Form ONRR-4393
Line-by-Line Instructions
1. For ONRR use only.
2. Enter the payor code used to report royalties and allowance deductions on Form ONRR-2014.
3. Enter the reporting period “From” and “To” dates in which the allowance reported on the Form
ONRR-2014 may exceed the regulatory allowance limitations. Note: If the lessee anticipates
exceeding the regulatory limit for only certain months of the year, the lessee may submit a
request with reporting period that cover the entire year. The reporting period will begin the first
day of the calendar year or when the transportation or processing contract begins, is modified or
amended, and will end the last day of the calendar year or when the transportation or processing
contract or rate terminates, is modified or amended whichever is earlier.
4. Circle the type of allowance for which you are requesting an exception to the regulatory
limitations. Note: Only one type of allowance may be circled per form. Therefore, if the lessee
is requesting to exceed the 50 percent regulatory allowance limitation for gas transportation and
also requesting to exceed the 66 2/3 percent regulatory allowance limitation for Federal gas
processing then the lessee must submit two separate Forms ONRR-4393.
5. Enter the payor name used to report royalties and transportation/processing deductions on Form
ONRR-2014.
6. Enter the payor address used to report royalties and transportation/processing deductions on Form
ONRR-2014.
7. Enter the payor contact name of the person who completed the Form ONRR-4393.
8. Enter the telephone number of the payor contact listed above.
9. For ONRR use only. (Note: If the number of lease number/agreement number/product code/sales
type code combinations being listed exceeds the number of lines on the Form ONRR-4393, use
additional Forms ONRR-4393.)
10. For ONRR use only.
11. Enter the same lease number as reported on Form ONRR-2014.
12. Enter the same agreement number as reported on Form ONRR-2014.
13. Enter the same product code as reported on Form ONRR-2014.
14. Enter the same sales type code reported on Form ONRR-2014.
15. For ONRR use only.
16. For ONRR use only.

Form ONRR-4393 (revised 9/2015)

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