30 Day Federal Register Notice - PUBLISHED

58776

Federal Register / Vol. 80, No. 189 / Wednesday, September 30, 2015 / Notices
paperwork burden of these regulatory
requirements.

Estimated Annual Nonhour Burden
Cost: $19,398,000 for consultant costs
for preparing nominations.

Dated: September 23, 2015.
Madonna L. Baucum,
Information Collection Clearance Officer,
National Park Service.

I. Abstract

BILLING CODE 4310–EH–P

DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue
[Docket No. ONRR–2011–0021; DS63610000
DR2PS0000.CH7000 156D0102R2; OMB
Control Number 1012–0002]

Agency Information Collection
Activities: Indian Oil and Gas
Valuation; Comment Request
Office of Natural Resources
Revenue, Interior.
ACTION: Notice of extension.
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
30 CFR parts 1202, 1206, and 1207. This
notice also provides the public a second
opportunity to comment on the

mstockstill on DSK4VPTVN1PROD with NOTICES

VerDate Sep<11>2014

18:27 Sep 29, 2015

Jkt 235001

You may submit your
written comments directly to the Desk
Officer for the Department of the
Interior (OMB Control Number 1012–
0002), Office of Information and
Regulatory Affairs, OMB, by email to
[email protected] or
telefax at (202) 395–5806. Please also
mail a copy of your comments to Mr.
Luis Aguilar, Regulatory Specialist,
ONRR, P.O. Box 25165, MS 61030A,
Denver, Colorado 80225–0165, or email
[email protected]. Please reference
OMB Control Number 1012–0002 in
your comments.
FOR FURTHER INFORMATION CONTACT: For
any questions, contact Mr. Luis Aguilar,
telephone (303) 231–3418, or email at
[email protected]. You may also
contact Mr. Aguilar to obtain copies
(free of charge) of (1) the ICR, (2) any
associated forms, and (3) the regulations
that require the subject collection of
information. You may also review the
information collection request online at
http://www.reginfo.gov/public/do/
PRAMain.
ADDRESSES:

SUPPLEMENTARY INFORMATION:

[FR Doc. 2015–24653 Filed 9–29–15; 8:45 am]

SUMMARY:

OMB has up to 60 days to
approve or disapprove this information
collection request but may respond after
30 days; therefore, you should submit
your public comments to OMB by
October 30, 2015, for the assurance of
consideration.

DATES:

III. Comments
We again invite comments concerning
this information collection on:
• Whether or not the collection of
information is necessary, including
whether or not the information will
have practical utility;
• The accuracy of our estimate of the
burden for this collection of
information;
• Ways to enhance the quality, utility,
and clarity of the information to be
collected; and
• Ways to minimize the burden of the
collection of information on
respondents.
Comments that you submit in
response to this notice are a matter of
public record. 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 OMB in your comment to
withhold your personal identifying
information from public review, we
cannot guarantee that it will be done.

The Secretary of the United States
Department of the Interior is responsible
for mineral resource development on
Federal and Indian lands and the Outer
Continental Shelf (OCS). Under various
laws, the Secretary’s responsibility is to
manage mineral resources production
on Federal and Indian lands and the
OCS, collect royalties due, and
distribute the funds collected under
those laws. The Secretary also has a
trust responsibility to manage Indian
lands and seek advice and information
from Indian beneficiaries. ONRR
performs the minerals revenue
management functions for the Secretary
and assists the Secretary in carrying out
the Department’s trust responsibility for
Indian lands. Public laws pertaining to
mineral leases on Federal and Indian
lands are available at http://
www.onrr.gov/Laws_R_D/PubLaws/
default.htm.
Information collections that we cover
in this ICR are found at 30 CFR part
1202, subparts C and J, which pertain to
royalties; part 1206, subparts B and E,
which govern the valuation of oil and

PO 00000

Frm 00075

Fmt 4703

Sfmt 4703

gas produced from leases on Indian
lands; and part 1207, which pertains to
recordkeeping. Indian Tribes and
individual Indian mineral owners
receive all royalties generated from their
lands. Determining product valuation is
essential to ensure that Indian Tribes
and individual Indian mineral owners
receive payment on the full value of the
minerals removed from their lands.
Failure to collect the data that we
describe in this ICR could result in the
undervaluation of leased minerals on
Indian lands. All data reported is
subject to subsequent audit and
adjustment.
Indian Oil
Regulations at 30 CFR part 1206,
subpart B, govern the valuation for
royalty purposes of all oil produced
from Indian oil and gas leases (Tribal
and allotted), except leases on the Osage
Indian Reservation, and are consistent
with mineral leasing laws, other
applicable laws, and lease terms.
Generally, these regulations provide that
lessees determine the value of oil based
upon the higher of (1) the gross
proceeds under an arm’s-length
contract; or (2) major portion analysis.
The value that a lessee determines may
be eligible for a transportation
allowance.
From information collected on Form
ONRR–4110, Oil Transportation
Allowance Report, ONRR and Tribal
audit personnel evaluate (1) whether
lessee-reported transportation
allowances are within regulatory
allowance limitations and calculated
under applicable regulations; and (2)
whether the lessees reported and paid
the proper amount of royalties. Lessees
must use Form ONRR–4110 for both
arm’s-length and non-arm’s-length
contracts.
Indian Gas
Regulations at 30 CFR part 1206,
subpart E, govern the valuation for
royalty purposes of natural gas
produced from Indian oil and gas leases
(Tribal and allotted). These regulations
apply to all gas production from Indian
oil and gas leases, except leases on the
Osage Indian Reservation.
Most Indian leases contain the
requirement to perform accounting for
comparison (dual accounting) for gas
produced from the lease. Lessees must
elect to perform actual dual accounting
as defined in 30 CFR 1206.176, or
alternative dual accounting as defined
in 30 CFR 1206.173. Lessees use Form
ONRR–4410, Accounting for
Comparison [Dual Accounting], to
certify that dual accounting is not
required on an Indian lease or to make

E:\FR\FM\30SEN1.SGM

30SEN1

58777

Federal Register / Vol. 80, No. 189 / Wednesday, September 30, 2015 / Notices
an election for actual or alternative dual
accounting for Indian leases.
The regulations require lessees to
submit Form ONRR–4411, Safety Net
Report, when they sell gas production
from an Indian oil or gas lease beyond
the first index pricing point. The safety
net calculation establishes the minimum
value, for royalty purposes, of natural
gas production from Indian oil and gas
leases. This reporting requirement
ensures that Indian lessors receive all
royalties due and aids ONRR
compliance efforts.
From information collected on Form
ONRR–4295, Gas Transportation
Allowance Report, ONRR and Tribal
audit personnel evaluate (1) whether
lessee-reported transportation
allowances are within regulatory
allowance limitations and calculated
under applicable regulations; and (2)
whether the lessees reported and paid
the proper amount of royalties.
From information collected on Form
ONRR–4109, Gas Processing Allowance
Summary Report, ONRR and Tribal
audit personnel evaluate (1) whether
lessee-reported processing allowances
are within regulatory allowance
limitations and calculated under
applicable regulations; and (2) whether
the lessees reported and paid the proper
amount of royalty.

30 CFR

Indian Oil and Gas
Lessees must submit Form ONRR–
4393, Request to Exceed Regulatory
Allowance Limitation, for both Federal
and Indian leases to request to exceed
the regulatory allowance limitation.
Most of the burden hours are incurred
on Federal leases; therefore, OMB
approved the form under OMB Control
Number 1012–0005, pertaining to
Federal oil and gas leases. However, we
include a discussion of the form in this
ICR, as well as the burden hours for
Indian leases. To request permission to
exceed a regulatory allowance limit,
lessees must (1) submit a letter to ONRR
explaining why a higher allowance limit
is necessary; and (2) provide supporting
documentation, including a completed
Form ONRR–4393. This form provides
ONRR with the data necessary to make
a decision whether to approve or deny
the request.
OMB Approval
We are requesting OMB’s approval to
continue to collect this information. Not
collecting this information would limit
the Secretary’s ability to discharge
fiduciary duties and may also result in
the inability to confirm the accurate
royalty value to Indian Tribes and
individual Indian mineral owners.
ONRR protects proprietary information

Reporting and recordkeeping requirement

that it receives and does not collect
items of a sensitive nature. The
requirement to report is mandatory for
Form ONRR–4410, Accounting for
Comparison [Dual Accounting], and for
Form ONRR–4411, Safety Net Report,
under certain circumstances. For all
other forms in this collection, the
requirement to report is required to
obtain a benefit.
II. Data
Title: 30 CFR parts 1202, 1206, and
1207, Indian Oil and Gas Valuation.
OMB Control Number: 1012–0002.
Bureau Form Number: Forms ONRR–
4109, ONRR–4110, ONRR–4295, ONRR–
4393, ONRR–4410, and ONRR–4411.
Frequency of Response: Annually and
on occasion.
Estimated Number and Description of
Respondents: 148 Indian Mineral
extractors holding leases on Indian
Lands.
Estimated Annual Reporting and
Recordkeeping ‘‘Hour’’ Burden: 2,269
hours.
We have not included in our
estimates certain requirements
performed in the normal course of
business that are considered usual and
customary. The following chart shows
the estimated burden hours by CFR
section and paragraph:
Average
number of
annual
responses

Hour burden

Annual burden
hours

PART 1202—ROYALTIES
Subpart C—Federal and Indian Oil
1202.101 .................................

Standards for reporting and paying royalties .........

Burden covered under § 1210.52 in OMB Control Number
1012–0004.

Oil volumes are to be reported in barrels of clean
oil of 42 standard U.S. gallons (231 cubic
inches each) at 60 °F. . . .

mstockstill on DSK4VPTVN1PROD with NOTICES

Subpart J—Gas Production From Indian Leases
1202.551(b) ............................

How do I determine the volume of production for
which I must pay royalty if my lease is not in an
approved Federal unit or communitization
agreement (AFA)?
(b) You and all other persons paying royalties on
the lease must report and pay royalties based
on your takes. . . .

1202.551(c) ............................

(c) You and all other persons paying royalties on
the lease may ask ONRR for permission . . . .
to report entitlements . . .

1202.558(a) and (b) ...............

What standards do I use to report and pay royalties on gas?.
(a) You must report gas volumes as follows: . . .
(b) You must report residue gas and gas plant
product volumes as follows: . . .

VerDate Sep<11>2014

18:27 Sep 29, 2015

Jkt 235001

PO 00000

Frm 00076

Fmt 4703

Sfmt 4703

Burden covered under § 1210.52 in OMB Control Number
1012–0004.

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

1

1

Burden covered under § 1210.52 in OMB Control Number
1012–0004.

E:\FR\FM\30SEN1.SGM

30SEN1

58778

Federal Register / Vol. 80, No. 189 / Wednesday, September 30, 2015 / Notices

30 CFR

Reporting and recordkeeping requirement

Average
number of
annual
responses

Hour burden

Annual burden
hours

mstockstill on DSK4VPTVN1PROD with NOTICES

PART 1206—PRODUCT VALUATION
Subpart B—Indian Oil
1206.56(b)(2) ..........................

Transportation allowances—general ......................
(b)(2) Upon request of a lessee, ONRR may approve a transportation allowance deduction in
excess of the limitation prescribed by paragraph
(b)(1) 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. . . .

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

1

4

1206.57(a)(1)(i) .......................

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.

AUDIT PROCESS. See note.

1206.57(a)(1)(i) .......................

(a) Arm’s-length transportation contracts ...............
(1)(i) . . . Before any deduction may be taken,
the lessee must submit a completed page one
of Form ONRR–4110 (and Schedule 1), Oil
Transportation Allowance Report . . .

Burden covered under § 1206.57(c)(1)(i) and (iii).

1206.57(a)(1)(iii) .....................

(a) Arm’s-length transportation contracts ...............
(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.

AUDIT PROCESS. See note.

1206.57(a)(2)(i) .......................

(a) Arm’s-length transportation contracts ...............
(2)(i) . . . Except as provided in this paragraph,
no allowance may be taken for the costs of
transporting lease production which is not royalty-bearing without ONRR approval.

Burden covered under § 1206.57(a)(3).

1206.57(a)(2)(ii) ......................

(a) Arm’s-length transportation contracts ...............
(2)(ii) Notwithstanding the requirements of paragraph (i), the lessee may propose to ONRR a
cost allocation method on the basis of the values of the products transported. . . .

20 ...................................

1

20

1206.57(a)(3) ..........................

(a) Arm’s-length transportation contracts ...............
(3) If an 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, the lessee shall propose an allocation
procedure to ONRR. . . . The lessee shall submit all available data to support its proposal.
. . .

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

1

40

1206.57(b)(1) ..........................

(b) Non-arm’s-length or no contract .......................
(1) . . . A transportation allowance may be
claimed retroactively for a period of not more
than 3 months prior to the first day of the month
that Form ONRR–4110 is filed with ONRR, unless ONRR approves a longer period upon a
showing of good cause by the lessee. . . .

Burden covered under § 1206.57(c)(2)(i) and (iii).

1206.57(b)(1) ..........................

(b) Non-arm’s-length or no contract .......................

Burden covered under § 1210.52 in OMB Control Number
1012–0004.

(1) . . . When necessary or appropriate, ONRR
may direct a lessee to modify its actual transportation allowance deduction.
1206.57(b)(2)(iv) .....................

VerDate Sep<11>2014

18:27 Sep 29, 2015

(b) Non-arm’s-length or no contract .......................

Jkt 235001

PO 00000

Frm 00077

Fmt 4703

Sfmt 4703

20 ...................................

E:\FR\FM\30SEN1.SGM

30SEN1

1

20

58779

Federal Register / Vol. 80, No. 189 / Wednesday, September 30, 2015 / Notices

30 CFR

Reporting and recordkeeping requirement

Average
number of
annual
responses

Hour burden

Annual burden
hours

mstockstill on DSK4VPTVN1PROD with NOTICES

(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 ONRR.
1206.57(b)(2)(iv)(A) ................

(b) Non-arm’s-length or no contract. ......................
(2)(iv)(A) . . . After an election is made, the lessee may not change methods without ONRR
approval. . . .

20 ...................................

1

20

1206.57(b)(3)(i) .......................

(b) Non-arm’s-length or no contract .......................
(3)(i) . . . Except as provided in this paragraph,
the lessee may not take an allowance for transporting lease production which is not royalty
bearing without ONRR approval.

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

1

40

1206.57(b)(3)(ii) ......................

(b) Non-arm’s-length or no contract .......................
(3)(ii) Notwithstanding the requirements of paragraph (i), the lessee may propose to ONRR a
cost allocation method on the basis of the values of the products transported. . . .

20 ...................................

1

20

1206.57(b)(4) ..........................

(b) Non-arm’s-length or no contract .......................
(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 available data to support its proposal.
. . .

20 ...................................

1

20

1206.57(b)(5) ..........................

(b) Non-arm’s-length or no contract .......................
(5) A lessee may apply to ONRR for an exception
from the requirement that it compute actual
costs in accordance with paragraphs (b)(1)
through (b)(4) of this section. . . .

20 ...................................

1

20

1206.57(c)(1)(i) .......................

(c) Reporting requirements ....................................
(1) Arm’s-length contracts. (i) With the exception
of those transportation allowances specified in
paragraphs (c)(1)(v) and (c)(1)(vi) of this section, the lessee shall submit page one of the
initial Form ONRR–4110 (and Schedule 1), Oil
Transportation Allowance Report, prior to, or at
the same time as, the transportation allowance
determined, under an arm’s-length contract, is
reported on Form MMS–2014, Report of Sales
and Royalty Remittance. . . .

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

1

4

1206.57(c)(1)(iii) .....................

(c) Reporting requirements ....................................
(1) Arm’s-length contracts. (iii) After the initial reporting period and for succeeding reporting periods, lessees must submit page one of Form
ONRR–4110 (and Schedule 1) within 3 months
after the end of the calendar year, or after the
applicable contract or rate terminates or is
modified or amended, whichever is earlier, unless ONRR approves a longer period (during
which period the lessee shall continue to use
the allowance from the previous reporting period).

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

1

4

1206.57(c)(1)(iv) .....................

(c) Reporting requirements ....................................
(1) Arm’s-length contracts. (iv) ONRR may require
that a lessee submit arm’s-length transportation
contracts, production agreements, operating
agreements, and related documents. Documents shall be submitted within a reasonable
time, as determined by ONRR.

1206.57(c)(2)(i) .......................

(c) Reporting requirements ....................................
(2) Non-arm’s-length or no contract.

VerDate Sep<11>2014

18:27 Sep 29, 2015

Jkt 235001

PO 00000

Frm 00078

Fmt 4703

Sfmt 4703

AUDIT PROCESS. See note.

6 .....................................

E:\FR\FM\30SEN1.SGM

30SEN1

1

6

58780

Federal Register / Vol. 80, No. 189 / Wednesday, September 30, 2015 / Notices

30 CFR

Reporting and recordkeeping requirement

Average
number of
annual
responses

Hour burden

Annual burden
hours

(i) With the exception of those transportation allowances specified in paragraphs (c)(2)(v),
(c)(2)(vii) and (c)(2)(viii) of this section, the lessee shall submit an initial Form ONRR–4110
prior to, or at the same time as, the transportation allowance determined under a non-arm’slength contract or no-contract situation is reported on Form ONRR–2014. . . . The initial
report may be based upon estimated costs.
1206.57(c)(2)(iii) .....................

(c) Reporting requirements ....................................
(2) Non-arm’s-length or no contract.
(iii) For calendar-year reporting periods succeeding the initial reporting period, the lessee
shall submit a completed Form ONRR–4110
containing the actual costs for the previous reporting period. If oil transportation is continuing,
the lessee shall include on Form ONRR–4110
its estimated costs for the next calendar year.
. . . ONRR must receive the Form ONRR–
4110 within 3 months after the end of the previous reporting period, unless ONRR approves
a longer period (during which period the lessee
shall continue to use the allowance from the
previous reporting period).

6 .....................................

1

6

1206.57(c)(2)(iv) .....................

(c) Reporting requirements ....................................
(2) Non-arm’s-length or no contract.
(iv) For new transportation facilities or arrangements, the lessee’s initial Form ONRR–4110
shall include estimates of the allowable oil
transportation costs for the applicable period. . .

Burden covered under § 1206.57(c)(2)(i).

1206.57(c)(2)(v) ......................

(c) Reporting requirements ....................................
(2) Non-arm’s-length or no contract.
(v) . . . only those allowances that have been approved by ONRR in writing . . .

Burden covered under § 1206.57(c)(2)(i).

1206.57(c)(2)(vi) .....................

(c) Reporting requirements ....................................
(2) Non-arm’s-length or no contract.
(vi) Upon request by ONRR, the lessee shall submit all data used to prepare its Form ONRR–
4110. The data shall be provided within a reasonable period of time, as determined by
ONRR.

AUDIT PROCESS. See note.

1206.57(c)(4) and (e)(2) .........

(c) Reporting requirements ....................................

Burden covered under § 1210.52 in OMB Control Number
1012–0004.

mstockstill on DSK4VPTVN1PROD with NOTICES

(4) Transportation allowances must be reported
as a separate line item on Form ONRR–2014,
. . .
(e) Adjustments.
(2) For lessees transporting production from Indian leases, the lessee must submit a corrected
Form ONRR–2014 to reflect actual costs, . . .
1206.59 ...................................

May I ask ONRR for valuation guidance? .............
You may ask ONRR for guidance in determining
value. You may propose a value method to
ONRR. Submit all available data related to your
proposal and any additional information ONRR
deems necessary. . . .

1206.61(a) and (b) .................

What records must I keep and produce? ..............
(a) On request, you must make available sales,
volume, and transportation data for production
you sold, purchased, or obtained from the field
or area. You must make this data available to
ONRR, Indian representatives, or other authorized persons.

VerDate Sep<11>2014

18:27 Sep 29, 2015

Jkt 235001

PO 00000

Frm 00079

Fmt 4703

Sfmt 4703

20 ...................................

1

AUDIT PROCESS. See note.

E:\FR\FM\30SEN1.SGM

30SEN1

20

58781

Federal Register / Vol. 80, No. 189 / Wednesday, September 30, 2015 / Notices

30 CFR

Reporting and recordkeeping requirement

Average
number of
annual
responses

Hour burden

Annual burden
hours

(b) You must retain all data relevant to the determination of royalty value. . . .

mstockstill on DSK4VPTVN1PROD with NOTICES

PART 1206—PRODUCT VALUATION
Subpart E—Indian Gas
1206.172(b)(1)(ii) ....................

How do I value gas produced from leases in an
index zone?
(b) Valuing residue gas and gas before processing.
(1)(ii) Gas production that you certify on Form
ONRR–4410, . . . is not processed before it
flows into a pipeline with an index but which
may be processed later; . . .

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

58

232

1206.172(e)(6)(i) and (iii) .......

(e) Determining the minimum value for royalty
purposes of gas sold beyond the first index
pricing point.
(6)(i) You must report the safety net price for
each index zone to ONRR on Form ONRR–
4411, Safety Net Report, no later than June 30
following each calendar year; . . .
(iii) ONRR may order you to amend your safety
net price within one year from the date your
Form ONRR–4411 is due or is filed, whichever
is later. . . .

3 .....................................

11

33

1206.172(e)(6)(ii) ....................

(e) Determining the minimum value for royalty
purposes of gas sold beyond the first index
pricing point.
(6)(ii) You must pay and report on Form ONRR–
2014 additional royalties due no later than June
30 following each calendar year; . . .

1206.172(f)(1)(ii), (f)(2), and
(f)(3).

(f) Excluding some or all tribal leases from valuation under this section.
(1) An Indian tribe may ask ONRR to exclude
some or all of its leases from valuation under
this section. . . .
(ii) If an Indian tribe requests exclusion from an
index zone for less than all of its leases, ONRR
will approve the request only if the excluded
leases may be segregated into one or more
groups based on separate fields within the reservation.
(2) An Indian tribe may ask ONRR S to terminate
exclusion of its leases from valuation under this
section. . . .
(3) The Indian tribe’s request to ONRR under either paragraph (f)(1) or (2) of this section must
be in the form of a tribal resolution. . . .

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

1

40

1206.173(a)(1) ........................

How do I calculate the alternative methodology for
dual accounting?
(a) Electing a dual accounting method.
(1) . . . You may elect to perform the dual accounting calculation according to either
§ 1206.176(a) (called actual dual accounting),
or paragraph (b) of this section (called the alternative methodology for dual accounting).

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

12

24

1206.173(a)(2) ........................

(a) Electing a dual accounting method ..................
(2) You must make a separate election to use the
alternative methodology for dual accounting for
your Indian leases in each ONRR S-designated
area. . . .

Burden covered under § 1206.173(a)(1).

1206.174(a)(4)(ii) ....................

How do I value gas production when an indexbased method cannot be used?
(a) Situations in which an index-based method
cannot be used.

Burden covered under § 1210.52 in OMB Control Number
1012–0004.

VerDate Sep<11>2014

18:27 Sep 29, 2015

Jkt 235001

PO 00000

Frm 00080

Fmt 4703

Sfmt 4703

Burden covered under § 1210.52 in OMB Control Number
1012–0004.

E:\FR\FM\30SEN1.SGM

30SEN1

58782

Federal Register / Vol. 80, No. 189 / Wednesday, September 30, 2015 / Notices

30 CFR

Reporting and recordkeeping requirement

Average
number of
annual
responses

Hour burden

Annual burden
hours

(4)(ii) If the major portion value is higher, you
must submit an amended Form ONRR–2014 to
ONRR by the due date specified in the written
notice from ONRR of the major portion value.
. . .
1206.174(b)(1)(i) and (iii);
(b)(2); (d)(2).

(b) Arm’s-length contracts ......................................

AUDIT PROCESS. See note.

(1)(i) You have the burden of demonstrating that
your contract is arm’s-length. . . .
(iii) . . . In these circumstances, ONRR will notify
you and give you an opportunity to provide written information justifying your value. . . .
(2) ONRR may require you to certify that your
arm’s-length contract provisions include all of
the consideration the buyer pays, either directly
or indirectly, for the gas, residue gas, or gas
plant product.
(d) Supporting data.
(2) You must make all such data available upon
request to the authorized ONRR or Indian representatives, to the Office of the Inspector General of the Department, or other authorized persons. . . .
1206.174(d) ............................

(d) Supporting data. If you determine the value of
production under paragraph (c) of this section,
you must retain all data relevant to determination of royalty value.

Burden covered under OMB Control Number 1012–0004.

1206.174(f) .............................

(f) Value guidance. You may ask ONRR for guidance in determining value. You may propose a
valuation method to ONRR. Submit all available
data related to your proposal and any additional
information ONRR deems necessary. . . .

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

1

40

1206.175(d)(4) ........................

How do I determine quantities and qualities of
production for computing royalties?
(d)(4) You may request ONRR approval of other
methods for determining the quantity of residue
gas and gas plant products allocable to each
lease. . . .

20 ...................................

1

20

1206.176(b) ............................

How do I perform accounting for comparison? .....
(b) If you are required to account for comparison,
you may elect to use the alternative dual accounting
methodology
provided
for
in
§ 1206.173 instead of the provisions in paragraph (a) of this section.

Burden covered under § 1206.173(a)(1).

1206.176(c) ............................

(c) . . . If you do not perform dual accounting,
you must certify to ONRR that gas flows into
such a pipeline before it is processed.

Burden covered under § 1206.172(b)(1)(ii).

mstockstill on DSK4VPTVN1PROD with NOTICES

Transportation Allowances
1206.177(c)(2) and (c)(3) .......

What general requirements regarding transportation allowances apply to me?
(c)(2) If you ask ONRR, ONRR may approve a
transportation allowance deduction in excess of
the limitation in paragraph (c)(1) of this section.
. . .
(3) 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.

1206.178(a)(1)(i) .....................

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

VerDate Sep<11>2014

18:27 Sep 29, 2015

Jkt 235001

PO 00000

Frm 00081

Fmt 4703

Sfmt 4703

Burden covered under § 1206.56(b)(2).

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

E:\FR\FM\30SEN1.SGM

30SEN1

18

18

58783

Federal Register / Vol. 80, No. 189 / Wednesday, September 30, 2015 / Notices

30 CFR

Reporting and recordkeeping requirement

Average
number of
annual
responses

Hour burden

Annual burden
hours

mstockstill on DSK4VPTVN1PROD with NOTICES

(1)(i) . . . You are required to submit to ONRR a
copy of your arm’s-length transportation contract(s) and all subsequent amendments to the
contract(s) within 2 months of the date ONRR
receives your report which claims the allowance
on the Form ONRR–2014.
1206.178(a)(1)(iii) ...................

(a) Determining a transportation allowance under
an arm’s-length contract.
(1)(iii) If ONRR determines that the consideration
paid under an arm’s-length transportation contract does not reflect the value of the transportation because of misconduct by or between the
contracting parties . . . In these circumstances,
ONRR will notify you and give you an opportunity to provide written information justifying
your transportation costs.

1206.178(a)(2)(i) and (ii) ........

(a) Determining a transportation allowance under
an arm’s-length contract.
(2)(i) . . . you cannot take an allowance for the
costs of transporting lease production that is
not royalty bearing without ONRR approval, or
without lessor approval on tribal leases.
(ii) As an alternative to paragraph (a)(2)(i) of this
section, you may propose to ONRR a cost allocation method based on the values of the products transported. . . .

20 ...................................

1

20

1206.178(a)(3)(i) and (ii) ........

(a) Determining a transportation allowance under
an arm’s-length contract.
(3)(i) If your arm’s-length transportation contract
includes both gaseous and liquid products and
the transportation costs attributable to each
cannot be determined from the contract, you
must propose an allocation procedure to
ONRR. . . .
(ii) You are required to submit all relevant data to
support your allocation proposal. . . .

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

1

40

1206.178(b)(1)(ii) ....................

(b) Determining a transportation allowance under
a non-arm’s-length contract or no contract.
(1)(ii) . . . You must submit the actual cost information to support the allowance to ONRR on
Form ONRR–4295, Gas Transportation Allowance Report, within 3 months after the end of
the 12-month period to which the allowance applies. . . .

15 ...................................

5

75

1206.178(b)(2)(iv) ...................

(b) Determining a transportation allowance under
a non-arm’s-length contract or no contract.
(2)(iv) You may use either depreciation with a return on undepreciated capital investment or a
return on depreciable capital investment. . . .
you may not later elect to change to the other
alternative without ONRR approval.

20 ...................................

1

20

1206.178(b)(2)(iv)(A) ..............

(b) Determining a transportation allowance under
a non-arm’s-length contract or no contract.
(2)(iv)(A) . . . Once you make an election, you
may not change methods without ONRR approval. . . .

20 ...................................

1

20

1206.178(b)(3)(i) .....................

(b) Determining a transportation allowance under
a non-arm’s-length contract or no contract.
(3)(i) . . . Except as provided in this paragraph,
you may not take an allowance for transporting
a product that is not royalty bearing without
ONRR approval.

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

1

40

VerDate Sep<11>2014

18:27 Sep 29, 2015

Jkt 235001

PO 00000

Frm 00082

Fmt 4703

Sfmt 4703

AUDIT PROCESS. See note.

E:\FR\FM\30SEN1.SGM

30SEN1

58784

Federal Register / Vol. 80, No. 189 / Wednesday, September 30, 2015 / Notices
Average
number of
annual
responses

Annual burden
hours

30 CFR

Reporting and recordkeeping requirement

Hour burden

1206.178(b)(3)(ii) ....................

(b) Determining a transportation allowance under
a non-arm’s-length contract or no contract.
(3)(ii) As an alternative to the requirements of
paragraph (b)(3)(i) of this section, you may propose to ONRR a cost allocation method based
on the values of the products transported. . . .

20 ...................................

1

20

1206.178(b)(5) ........................

(b) Determining a transportation allowance under
a non-arm’s-length contract or no contract.
(5) If you transport both gaseous and liquid products through the same transportation system,
you must propose a cost allocation procedure
to ONRR. . . . You are required to submit all
relevant data to support your proposal. . . .

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

1

40

1206.178(d)(1) ........................

(d) Reporting your transportation allowance ..........
(1) If ONRR requests, you must submit all data
used to determine your transportation allowance . . .

AUDIT PROCESS. See note.

1206.178(d)(2), (e), and (f)(1)

(d) Reporting your transportation allowance ..........

Burden covered under § 1210.52 in OMB Control Number
1012–0004.

(2) You must report transportation allowances as
a separate entry on Form ONRR–2014. . . .
(e) Adjusting incorrect allowances. If for any
month the transportation allowance you are entitled to is less than the amount you took on
Form ONRR–2014, you are required to report
and pay additional royalties due, plus interest
computed under 30 CFR 1218.54 from the first
day of the first month you deducted the improper transportation allowance until the date
you pay the royalties due. . . .
(f) Determining allowable costs for transportation
allowances. . . .
(1) Firm demand charges paid to pipelines. . . .
You must modify the Form ONRR–2014 by the
amount received or credited for the affected reporting period.

mstockstill on DSK4VPTVN1PROD with NOTICES

Processing Allowances
1206.180(a)(1)(i) .....................

How do I determine an actual processing allowance?
(a) Determining a processing allowance if you
have an arm’s-length processing contract.
(1)(i) . . . You have the burden of demonstrating
that your contract is arm’s-length. You are required to submit to ONRR a copy of your arm’slength contract(s) and all subsequent amendments to the contract(s) within 2 months of the
date ONRR receives your first report that deducts the allowance on the Form ONRR–2014.

1206.180(a)(1)(iii) ...................

(a) Determining a processing allowance if you
have an arm’s-length processing contract.
(1)(iii) If ONRR determines that the consideration
paid under an arm’s-length processing contract
does not reflect the value of the processing because of misconduct by or between the contracting parties . . . In these circumstances,
ONRR will notify you and give you an opportunity to provide written information justifying
your processing costs.

1206.180(a)(3) ........................

(a) Determining a processing allowance if you
have an arm’s-length processing contract.

VerDate Sep<11>2014

18:27 Sep 29, 2015

Jkt 235001

PO 00000

Frm 00083

Fmt 4703

Sfmt 4703

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

2

2

AUDIT PROCESS. See note.

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

E:\FR\FM\30SEN1.SGM

30SEN1

1

40

58785

Federal Register / Vol. 80, No. 189 / Wednesday, September 30, 2015 / Notices

30 CFR

Reporting and recordkeeping requirement

Average
number of
annual
responses

Hour burden

Annual burden
hours

(3) If your 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,
you must propose an allocation procedure to
ONRR. . . . You are required to submit all relevant data to support your proposal. . . .
1206.180(b)(1)(ii) ....................

(b) Determining a processing allowance if you 100 .................................
have a non-arm’s-length contract or no contract.
(1)(ii) . . . You must submit the actual cost information to support the allowance to ONRR on
Form ONRR–4109, Gas Processing Allowance
Summary Report, within 3 months after the end
of the 12-month period for which the allowance
applies. . . .

12

1,200

1206.180(b)(2)(iv) ...................

(b) Determining a processing allowance if you 20 ...................................
have a non-arm’s-length contract or no contract.
(2)(iv) You may use either depreciation with a return on undepreciable capital investment or a
return on depreciable capital investment. . . .
you may not later elect to change to the other
alternative without ONRR approval.

1

20

1206.180(b)(2)(iv)(A) ..............

(b) Determining a processing allowance if you 20 ...................................
have a non-arm’s-length contract or no contract.
(2)(iv)(A) . . . Once you make an election, you
may not change methods without ONRR approval. . . .

1

20

1206.180(b)(3) ........................

(b) Determining a processing allowance if you 20 ...................................
have a non-arm’s-length contract or no contract.
(3) Your processing allowance under this paragraph (b) must be determined based upon a
calendar year or other period if you and ONRR
agree to an alternative.

1

20

1206.180(c)(1) ........................

(c) Reporting your processing allowance ..............
(1) If ONRR requests, you must submit all data
used to determine your processing allowance.
. . .

AUDIT PROCESS. See note.

1206.180(c)(2) and (d) ...........

(c) Reporting your processing allowance ..............

Burden covered under § 1210.52 in OMB Control Number
1012–0004.

(2) You must report gas processing allowances as
a separate entry on the Form ONRR–2014.
. . .
(d) Adjusting incorrect processing allowances. If
for any month the gas processing allowance
you are entitled to is less than the amount you
took on Form ONRR–2014, you are required to
pay additional royalties, plus interest computed
under 30 CFR 1218.54 from the first day of the
first month you deducted a processing allowance until the date you pay the royalties due.
. . .

mstockstill on DSK4VPTVN1PROD with NOTICES

1206.181(c) ............................

VerDate Sep<11>2014

18:27 Sep 29, 2015

How do I establish processing costs for dual accounting purposes when I do not process the
gas?
(c) A proposed comparable processing fee submitted to either the tribe and ONRR (for tribal
leases) or ONRR (for allotted leases) with your
supporting documentation submitted to ONRR.
If ONRR does not take action on your proposal
within 120 days, the proposal will be deemed to
be denied and subject to appeal to the ONRR
Director under 30 CFR part 1290.

Jkt 235001

PO 00000

Frm 00084

Fmt 4703

Sfmt 4703

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

E:\FR\FM\30SEN1.SGM

30SEN1

1

40

58786

Federal Register / Vol. 80, No. 189 / Wednesday, September 30, 2015 / Notices

30 CFR

Reporting and recordkeeping requirement

Average
number of
annual
responses

Hour burden

Annual burden
hours

PART 1207—SALES AGREEMENTS OR CONTRACTS GOVERNING THE DISPOSAL OF LEASE PRODUCTS
Subpart A—General Provisions
1207.4(b) ................................

Contracts made pursuant to old form leases ........
(b) The stipulation, the substance of which must
be included in the contract, or be made the
subject matter of a separate instrument properly
identifying the leases affected thereby, is as follows . . .

AUDIT PROCESS. See note.

1207.5 .....................................

Contract and sales agreement retention ...............
Copies of all sales contracts, posted price bulletins, etc., and copies of all agreements, other
contracts, or other documents which are relevant to the valuation of production are to be
maintained by the lessee and made available
upon request during normal working hours to
authorized ONRR, State or Indian representatives, other ONRR or BLM officials, auditors of
the General Accounting Office, or other persons
authorized to receive such documents, or shall
be submitted to ONRR within a reasonable period of time, as determined by ONRR. Any oral
sales arrangement negotiated by the lessee
must be placed in written form and retained by
the lessee. Records shall be retained in accordance with 30 CFR part 1212.

AUDIT PROCESS. See note.

Total Burden ....................

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

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

148

2,269

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.

mstockstill on DSK4VPTVN1PROD with NOTICES

Estimated Annual Reporting and
Recordkeeping ‘‘Non-hour’’ Cost
Burden: We have identified no ‘‘nonhour’’ cost burdens associated with this
information collection.
III. Request for Comments
Public Disclosure Statement: The PRA
(44 U.S.C. 3501 et seq.) provides that 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.
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
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 to be collected; and (d)
minimize the burden on the
respondents, including the use of

VerDate Sep<11>2014

19:33 Sep 29, 2015

Jkt 235001

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
16, 2015 (80 FR 13619), announcing that
we would submit this ICR to OMB for
approval. The notice provided the
required 60-day comment period. No
comments were received.
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 may respond after 30 days.
Therefore, to ensure maximum
consideration, OMB should receive
public comments by October 30, 2015.
Public Comment Policy: ONRR will
post all comments, including names and
addresses of respondents at http://
www.regulations.gov. Before including
Personally Identifiable Information (PII),
such as your address, phone number,
email address, or other personal
information in your comment(s), you
should be aware that your entire
comment (including PII) may be made
available to the public at any time.
While you may ask us, in your
comment, to withhold PII from public

PO 00000

Frm 00085

Fmt 4703

Sfmt 4703

view, we cannot guarantee that we will
be able to do so.
Dated: September 25, 2015.
Gregory J. Gould,
Director, Office of Natural Resources
Revenue.
[FR Doc. 2015–24840 Filed 9–29–15; 8:45 am]
BILLING CODE 4335–30–P

DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management
[Docket No. BOEM–2015–0091]

Request for Information on the State of
the Offshore Renewable Energy
Industry—Request for Feedback;
MMAA104000
Bureau of Ocean Energy
Management (BOEM), Interior.
ACTION: Request for Feedback.
AGENCY:

BOEM invites public
comment on the aspects of BOEM’s
renewable energy program that
stakeholders have found to be
successful, and those program areas
where there appear to be opportunities
for improvement.
DATES: Stakeholders should submit
comments electronically or postmarked
no later than December 29, 2015.
SUMMARY:

E:\FR\FM\30SEN1.SGM

30SEN1