Form ONRR-4110 Oil Transportation Allowance Report

Oil Transportation Allowance Report
Form ONRR-4110

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

1 Payor Name
Address
City

________________________________

2 Payor Code

___________________________________

3 Report Type

________________ State

6 7

8
Lease
Number

Agreement
Number

_______ Zip ____

9

10
Product
Code

4

5 Reporting Period
______________ to _________________
mm/dd/ccyy
mm/dd/ccyy
Prior Period Actual Data
11

a
Arm's-Length/
Non-Arm's-Length
Indicator

Royalty
Quantity

For ONRR Use Only:

OMB Control Number 1012-0002
OMB Approval Expires 09/30/2015

b

Allowance
Rate Per
Unit

c

Royalty
Allowance
Amount

FOR PAYOR USE ONLY:

_____________ to ________________
mm/dd/ccyy
mm/dd/ccyy
Current Period Estimated Data
12
a

Royalty
Quantity

b Allowance
Rate Per
Unit

c

Royalty
Allowance
Amount

1
2
3
4
5
6
7
8
9
10
11
13 Page Total
xxxxxxxxx
14 Report Total (Last Page Only)
xxxxxxxxx
If more lines are needed, attach additional pages of Form ONRR-4110
I have read and examined in this report and, to the best of my knowledge, they are accurate and complete.

xxxxxxxx
xxxxxxxx

Name (First, Middle Initial, Last) (typed or printed)

Date:

Authorized Signature:

Date:

Name of Preparer:

This information should be considered (Please check one)

Telephone Number:

Proprietary

Nonproprietary

The 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 corroborate oil and gas production and disposition data with sales and royalty data.
Proprietary information is protected in accordance with the 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 Department
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 at an average of 18 hours per report for electronic and manual reporting, including the time for reviewing instructions; gathering and maintaining data; and completing and reviewing the form. Direct your comments regarding
the burden estimate or any other aspect of this form to the Information Collection Clearance Officer, Office of Natural Resources Revenue, Mail Stop 61030A, Denver Federal Center, Lakewood, CO 80225.

Form ONRR-4110 (revised 9/2015)

Page 1 of 4

Oil Transportation Allowance Report
Form ONRR-4110
General Instructions
This form to will be used to determine and report the costs of transporting oil under 30 CFR 1206.57.
Allowable transportation costs are: (1) arm’s-length based allowances--allowable costs under an arm’s-length
contract; and (2) non-arm’s-length based allowances--operating and maintenance expenses, overhead, and either
depreciation and a return on undepreciated capital investment or a cost equal to the initial capital investment in
the transportation system multiplied by Standard and Poor’s BBB rating. Allowable costs divided by lease
production is the transportation allowance rate.
In accordance with 30 CFR 1206.56, a payor may deduct from royalty payments the reasonable, actual costs
incurred by the lessee to transport oil to a point off the lease. When lease production contains more than one
product you cannot deduct the cost of transporting non-royalty bearing production without ONRR approval.
For transportation costs incurred under arm’s-length conditions, Schedule 1 will be used to determine the
allowance and will be submitted to ONRR with Page 1 of Form ONRR-4110. For transportation costs incurred
under other than arm’s-length conditions or when transportation costs are a combination of arm’s-length and
non-arm’s-length costs, Schedules 1, 1A, 1B, and 1C, as appropriate, will be used to determine the allowance
and will be submitted to ONRR with Page 1 of Form ONRR-4110.
Requirements: 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 the ONRR. Unless, we approve a
longer period upon a showing of good cause by the lessee. After the initial reporting period lessees must submit
Form ONRR-4110 within 3 months after the end of the calendar year.
Definitions: For Purposes of this report
Sale: The disposition of oil under arm’s-length contract, non-arm’s-length contract, or no contract situation.
Transportation facility: A physical system associated with the transportation of oil from the lease to a point of
disposition remote from the lease.
Transportation segment: Any mode of transportation from one point to another for which the payor can
associate unique, identifiable costs. A transportation segment may be part of the total transportation facility or
may constitute the entire facility. Examples of a transportation segment would be an origin-to-destination
pipeline owned by the lessee to transport the oil to a point on a third-party pipeline through which the oil is
transported under an arm’s-length contract to the sales point.
Forms:
Form ONRR-4110 Page 1, is used to report the actual allowance amounts claimed during the reporting
period. Responses for non-arm's-length transportation allowances on this form are required to obtain a benefit;
however, arm's-length transportation contracts must be filed with ONRR since arm's-length transportation
allowances are not required to be reported on this form.
From ONRR-4110 Schedule 1, is used to accumulate segment costs and to compute the allowance rate for a
transportation facility.
Form ONRR-4110 Schedule 1A, summarizes operating, maintenance, and overhead costs for a non-arm’slength or no contract transportation segment.
Form ONRR-4110 Supplemental Schedule 1A, is used to detail operating, maintenance, and overhead costs
that could not be shown on Schedule 1A because of its limited space.
Form ONRR-4110 Schedule 1B, summarizes depreciation and undepreciated capital investment costs for a nonarm’s-length or no contract transportation segment.
FORM ONRR-4110 (revised 9/2015)

Page 2 of 4

Oil Transportation Allowance Report
Form ONRR-4110
Line-by-Line Instructions
1. Enter the payor name and address used to report royalties and transportation deductions on
Form ONRR-2014.
2. Enter the same payor codes as used on Form ONRR-2014.
3. Enter the report type indicator as follows:
• “1” if this is an initial report for the transportation facility (only column 12 will be completed.)
• “2” if this is a follow up form to report the reporting period actual data and current period estimated
data (both columns 11 and 12 must be completed); or
• “3” if this is a corrected report to correct previously reported data. A corrected report requires a
two-line entry. The first line reverses the original entry using a minus sign (-) in columns 11a, 11b,
11c, 12a, 12b, and 12c, as applicable, and the second line shows the correct entry.
4. Reserved for payor comment.
5. Enter as the reporting period the period covered by the actual cost data for the transportation allowance
being reported in column 11 (if applicable). Enter as the reporting period the period covered by the
estimated costs data being reported in column 12. The reporting period will be: (a) for the initial
reporting period, beginning the month the lessee is first authorized to deduct a transportation allowance
and ending at the end of the calendar year or when the transportation terminates, whichever is earlier, or
(b) after the initial reporting period, beginning the first day of the calendar and ending the last day of the
calendar year or when the transportation terminates whichever is earlier.
6. Line count; i.e., the number of leases being reported.
7. Enter the same Lease Number as used on Form ONRR-2014.
8. Enter the same Agreement Number (if applicable) as reported on Form ONRR-2014.
9. Enter the same product code as used on Form ONRR-2014.
10. Enter an arm’s-length/non-arm’s-length indicator as follows:
• “NARM” if 100% of the transportation costs were incurred under non-arm’s-length conditions;
• “BOTH” if transportation costs were a combination of arm’s-length and non-arm’s-length
conditions; or
• “ARMS” if 100% of the transportation costs were incurred under arm’s-length conditions.
11. Column 11 is used to report actual transportation allowance for the reporting period. Enter in column:
• 11a the actual royalty quantity transported during the reporting period.
• 11b the lesser of the transportation allowance rate from Schedule 1, line 15, or 50 percent of the unit
value of the oil unless ONRR has approved a rate in excess of 50 percent.
• 11c the royalty allowance amount determined by multiplying column 11a by column 11b. (Royalty
quantity is the total of the monthly royalty quantities actually transported during the reporting
period.)

FORM ONRR-4110 (revised 9/2015)

Page 3 of 4

Oil Transportation Allowance Report
Form ONRR-4110
Line-by-Line Instructions
12. Column 12 is used to report estimated transportation allowance for the current reporting period. Enter
in column:
• 12a the estimated royalty quantity transported during the reporting period.
• 12b the lesser of the transportation allowance rate from Schedule 1, line 15, or 50 percent of the unit
value of the oil unless ONRR has approved a rate in excess of 50 percent.
• 12c the royalty allowance amount determined by multiplying column 12a by column 12b. (Royalty
quantity is the total of the monthly royalty quantities actually transported during the reporting
period.)
The estimated transportation quantity or allowance rate may be the same as the actual quantity or rate
reported in column 11. A separate Schedule 1 will need to be completed if they are different. If the
lessee believes the quantity or the rate for the current reporting period will be higher or lower than the
reporting period, the estimates should be adjusted upward or downward accordingly. Care should be
taken to ensure that estimates are as accurate as possible and that the royalty allowance amount does not
exceed 50 percent of the expected royalty value unless ONRR has approved a rate in excess of 50
percent. If a transportation allowance is not applicable for the current period, enter zeroes in column
12a, 12b, and 12c.
13. Enter page totals on line 13.
14. If more than one Form ONRR-4110 is submitted, add the amount on line 13 for each page and enter the
total only once on line 14 of the last page of the Oil Transportation Allowance Report.
Indicate by checking the appropriate box whether the information should be considered proprietary or
nonproprietary.

FORM ONRR-4110 (revised 9/2015)

Page 4 of 4

Oil Transportation Facility Summary Sheet
Form ONRR-4110, Schedule 1

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

OMB Control Number 1012-0002
OMB Approval Expires 09/30/2015

2 LEASE NUMBER: ________________________________
1 PAYOR NAME AND CODE _____________________/___________________

AGREEMENT NUMBER:___________________________

ADDRESS_______________________________________________________

FACILITY NAME/ID NUMBER:_______________________

CITY_______________________STATE__________ZIP___________________

________________________________________________
Period: (mm/dd/ccyy)_______________to______________

(a)
Segment Name or Number

(b)
Mode of
Transportation

(c)
Arm's Length/NonArm's-Length
Indicator

From
To
A. TRANSPORTATION SEGMENT FROM LEASE

Allowance rate = (lines 8d + 8e + 8h)/Volume of Production
transported from the lease.

Totals

(d)
Arm's-Length
Contract/NonArm's-Length
Operating Costs

Depreciation

$

$

$

$

$
Part A Total Cost

B. TRANSPORTATION SEGMENT AFTER LEASE

Allowance rate = (lines 13d + 13e + 13h)/Volume of Production
transported after the lease.

(e)

Totals

$
$

(f)

(g)

(h)

Rate of
Return

Undepreciated
Capital
Investment at
Beginning of
Year

Return on
Investment
(f) x (g)

$

÷

Part A Total Volume

$
Part B Total Cost

÷

Part A Total Volume

Total Unit Allowance Rate = the sum of line 9h and 14h. The allowance cannot exceed 50 percent of the
value of the product without prior ONRR approval.

THIS INFORMATION SHOULD BE CONSIDERED (Please check one)
FORM ONRR-4110 SCHEDULE 1 (revised 9/2015)

PROPRIETARY

$

3
4
5
6
7

$

8

=$
Cost per Barrel

$
=$
Cost per Barrel

9
10
11
12
13
14
15

Allowance Rate
NONPROPRIETARY
Page 1 of 3

Oil Transportation Facility Summary Sheet
Form ONRR-4110, Schedule 1
Instructions
Form ONRR-4110, will be used to determine the transportation allowance amount for each Lease Number and
Agreement Number (if applicable), combination. No allowance may be claimed if the facility is entirely on the
lease.
Part A is used to accumulate segment costs and to compute an allowance for transporting oil from the lease to a
separation facility remote from where the lease is situated. Part B is used to accumulate segment costs and
compute an allowance for transporting oil from either a lease, or from a separation facility, to the nearest
available market place or sales outlet remote from the lease. When oil is transported to a separation facility,
treated, and clean oil is transported from the facility to a remote sales point, both Parts A and B must be used in
computing the allowance.
The payor must submit a clear schematic diagram on no larger than 8-1/2 by 11-inch paper, illustrating the
transportation facility from the lease to the point where the products are disposed of. Separation facilities,
points of measurement, and points of sale or disposition for royalty purposes must be designated.
1. Enter the same payor name, payor code, and address as used on Page 1 of Form ONRR-4110.
2. Enter the same Lease Number(s) and Agreement Number(s) (if applicable), combination as used on
Form ONRR-2014. Enter the transportation facility name or identification number (as designated by the payor)
unique to the transportation facility. (Note: For a transportation facility consisting of only one segment, the
segment name or number will be the same as the facility name or number.)
Enter the reporting period. The period must be the same period shown in item 5 on Form ONRR-4110, Oil
Transportation Allowance Report.
The following instructions are applicable to Part A (lines 3-7) and Part B (lines 10-12):
a. Describe each segment of the transportation facility; e.g., form Lease No. XX-YYYYY-Z to St. John
treatment facility.
b. Identify the mode of transportation under which costs are incurred; e.g., pipeline, truck, rail, tanker,
barge, etc.
c. Indicate how facility/segment costs were incurred (“NARM” denotes non-arm’s-length costs which
include non-arm’s-length and no contract situations; “ARMS” denotes arm’s-length contract costs).
d. If transportation costs were incurred under arm’s-length condition, enter the total costs incurred for the
period by multiplying the transportation rate by the volume transported at that rate. When lease
production contains more than one product you cannot deduct the cost of transporting non-royalty
bearing production without ONRR approval. If two or more rates are applicable during the reporting
period, the cost incurred under each rate must be computed and summed. If, for example, the rates were
$1.00 per barrel for 150 barrels and $1.50 per barrel for 100 barrels, the transportation costs would be

FORM ONRR-4110 SCHEDULE 1 (revised 9/2015)

Page 2 of 3

Oil Transportation Facility Summary Sheet
Form ONRR-4110, Schedule 1
Instructions
$1.00 times 150 barrels plus $1.50 times 100 barrels or $300.00. Do not complete columns (e) through
(h) for arm’s-length costs.
If transportation costs were incurred under other than arm’s-length conditions, complete columns (d)
through (h). Using Schedule 1A determine the operations, maintenance, and overhead expenditures and
enter in column (d). A separate Schedule 1A must be completed for each individual segment.
e. Enter depreciation costs for the reporting period. Schedule 1B must be used to determine depreciation
costs.
f.

The rate of return shall be the industrial rate associated with Standard and Poor’s BBB rating. Enter the
monthly average rate as published in Standard and Poor’s Bond Guide for the first month of the
reporting period.

g. Enter the beginning-of-year undepreciated capital investment. Schedule 1B must be used to determine
beginning-of-year undepreciated capital investment. A separate Schedule 1B must be completed for
each individual segment.
h. Calculate the return on undepreciated capital investment by multiplying column (f) by column (g).
8. Total columns (d), (e), and (h) and enter on lines 8d, 8e, and 8h.
9. For Part A, sum lines 8d, 8e, and 8h and enter on line 9 – Total Costs. Enter total volume of production
transported from the lease, as measured at the approved royalty measurement point, to the facility on line 9
– Total Volume. Compute the allowance cost per barrel, to six decimals, by dividing line 9 – Total cost, by
line 9 – Total Volume, and enter on line 9h.
10. 10-12, see (a)-(h) above.
13. Total columns (d), (e), and (h) and enter on lines13d, 13e, and 13h.
14. For Part B, sum lines 13d, 13e, and 13h and enter on line 14 – Total Cost. Enter the total volume
transported from the lease or treatment facility on line 14 – Total Volume (Note: Total volume is the volume
transported through the transportation facility for the prior reporting period.) Compute the allowance costs
per barrel, to six decimals, by dividing line 14 – Total Cost, by line 14 – Total Volume, and enter on line
14h.
15. The total unit allowance rate is equal to the sum of line 9h plus line 14h. Enter this allowance rate on line
15. The allowance rate cannot exceed 50 percent of the value of the product without prior ONRR approval.
Indicate by checking the appropriate box whether the information should be considered proprietary or
nonproprietary.

FORM ONRR-4110 SCHEDULE 1 (revised 9/2015)

Page 3 of 3

U.S. Department of the Interior

OMB Control Number 1012-0002

Office of Natural Resources Revenue

OMB Approval Expires 09/30/2015

Non-Arm's Length Transportation System/Segment
Operations, Maintenance, and Overhead Expenditures
Form ONRR-4110, Schedule 1A

Payor Identification Block
Payor Name and Code:
Lease Number:
Agreement Number:
Facility ID Number:
Segment ID No:
Period:
(mm/dd/ccyy)

to

Estimated Costs - Check when estimating costs for systems/segment start-up.
A.

Lessee's Operating Costs for System/Segment
Operations Supervision and Engineering

$____________________________

1

Operations Labor

_____________________________

2

Utilities

_____________________________

3

Materials

_____________________________

4

Ad Valorem Property Taxes

_____________________________

5

Rent

_____________________________

6

Supplies

_____________________________

7

Other (specify). Attach Supplemental Schedule 1A

_____________________________

8

as necessary

_____________________________

9

$____________________________

10

Maintenance Supervision

$____________________________

11

Maintenance Labor

_____________________________

12

Materials

_____________________________

13

Other (specify). Attach Supplemental Schedule 1A

_____________________________

14

_____________________________

15

_____________________________

16

___________________________________

$____________________________

17

___________________________________

_____________________________

18

Other (specify) use Supplemental Schedule 1A

_____________________________

19

Total Overhead Allocation

$____________________________

20

Total Operating and Maintenance Costs

$____________________________

21

Lease Volume _________________ ÷ Total throughput _________________

%

22

Segment Allocated Operating, Maintenance, and
Overhead Costs
(Line 21 x line 22) Enter in column d, Schedule 1

$____________________________

23

Total Operating Costs -- Subtotal
B.

Lessee's Maintenance Costs

as necessary
Total Maintenance Costs -- Subtotal
C.

D.

Lessee's Overhead Allocation (specify)

(Line 10 + line 16 + line 20)
E.

F.

Allocated to Segment

THIS INFORMATION SHOULD BE CONSIDERED (Please check one)
FORM ONRR-4110, SCHEDULE 1A (revised 9/2015)

PROPRIETARY

NONPROPRIETARY
Page 1 of 4

Non-Arm’s-Length Transportation System/Segment Operations,
Maintenance, and Overhead Expenditures
Form ONRR-4110, Schedule 1A
Instructions
Schedule 1A is used to record reasonable actual operating, maintenance, and overhead costs for a
transportation segment for the prior reporting period. A separate Schedule 1A must be completed for each
segment in the transportation facility. The costs for all transportation facility segments are accumulated on
Schedule 1 to determine the total operating costs for the facility. A list of allowable and nonallowable costs
is provided herein and should be used as a guide in determining operating, maintenance, and overhead costs.
Complete the payor information block as follows.
Enter the same payor name and code as used on Form ONRR-4110, Oil Transportation Allowance Report.
Enter the same Lease Number(s) and Agreement Number(s) (if applicable), as used on Form ONRR-2014.
Enter the transportation facility name or identification number (as designated by the payor) unique to the
transportation facility.
Enter the transportation segment name or identification number (as designated by the payor) unique to the
transportation segment. Note: For a transportation facility consisting of only one segment, the segment
name or identification number will be the same as the facility name or identification number.
Enter the reporting period. The period must be the same period shown in item 5 on Form ONRR-4110, Oil
Transportation Allowance Report.
Instructions for Computing Operating, Maintenance, and Overhead Costs.
Note: If estimated costs are used for start-up, check the estimated cost block.
Identify and list on Part A and part B all operating and maintenance costs directly attributable to the
transportation facility/segment during the reporting period. If additional space is needed to identify or
explain other cost items, complete and attach a Supplemental Schedule 1A noting the nature and amount of
the cost.
Line 10 – Enter total operating costs (the sum of lines 1-9).
Line 16 – Enter total maintenance costs (the sum of lines 11-15)
Part C – Identify and list all overhead costs directly allocable and attributable to the operations and
maintenance of the transportation facility/segment. If additional space is needed, complete and attach a
Supplemental Schedule 1A noting the nature and amount of the expenditure.
Line 20 – Sum lines 17 through 19 to obtain the total overhead expenditure directly allocable to the
facility/segment.
Line 21 – Sum line 10, 16, and 20 to obtain the total operating costs.

FORM ONRR-4110 SCHEDULE 1A (revised 9/2015)

Page 2 of 4

Non-Arm’s-Length Transportation System/Segment Operations,
Maintenance, and Overhead Expenditures
Form ONRR-4110, Schedule 1A
Instructions
Part E - Enter the lease volume transported through this segment and the total throughput of this segment.
Divide the lease volume by the total throughput and enter answer in 6 decimal places on line 22.
Part F – Determine the allocated operating, maintenance, and overhead costs for the segment by multiplying
line 21 times line 22 and enter on line 23. Enter in column (d) of Part A or B, Schedule 1, as appropriate.
Indicated by checking the appropriate box whether the information should be considered proprietary or
nonproprietary.
ALLOWABLE AND NONALLOWABLE OPERATING, MAINTENANCE AND CAPITAL COSTS
Allowable Capital Costs – Allowable capital costs are generally those costs for depreciable fixed assets
(including costs of delivery and installation of capital equipment) which are an integral part of the
transportation system. The following capital items are generally considered as allowable: garages and
warehouses, rail haulage equipment including rail spurs, trucks, barges, pipeline compressors and pumps,
and roads.
Nonallowable Capital Costs – Costs incidental to marketing (e.g., on-lease compression, gathering,
separation, dehydration, storage, and treatment). Also, schools, hospitals, roads, sewer and other capital
improvements or equipment not an integral part of the transportation facility are not allowable capital costs.
The capital costs associated with the preparation of an environmental impact statement is not allowable.
However, capital costs for environmental equipment that are an integral part of transportation facility are
allowable.
Allowable Operating Costs – Allowable operating and maintenance costs are those nondepreciable costs that
are directly attributable to the operation and maintenance of a transportation facility/segment. These
expenditures include the following:
1. Salaries and wages paid to employees and supervisors while engaged in the operation and maintenance
of equipment and facilities.
2. Fuel and utility costs directly related to transporting lease products.
3. Chemicals (including rust preventives and thinning agents) and lubricants used for the purpose of
enhancing flow, protection, or cleaning.
4. Repairs, labor, materials, and supplies directly related to transportation equipment and facilities.
5. Port and toll fees, insurance, and ad valorem property taxes (Federal and State income taxes are not
allowable deductions.)

FORM ONRR-4110 SCHEDULE 1A (revised 9/2015)

Page 3 of 4

Non-Arm’s-Length Transportation System/Segment Operations,
Maintenance, and Overhead Expenditures
Form ONRR-4110, Schedule 1A
Instructions
6. Arm’s-length rental, leasing, or contract service costs for equipment, facilities, on-site location or
maintenance of equipment and facilities.
7. Overhead costs (personnel, telephone service, payroll taxes, employee benefits, vehicle expenses,
supplies, etc.). The total of these costs shall be limited to those reasonable expenditures directly
attributable and allocable to the operating and maintenance of the transportation equipment and
facilities.
Nonallowable Operating Costs –
1. Costs incidental to marketing; e.g., on-lease gathering and storage, compression, separation, and
dehydration; also, heaters, treaters, meters, water knockouts, ACT meters, meter sleds, and pumps
(surface, subsurface, and circulating), and operating costs associated with nonallowable capital
expenditures.
2. Actual or theoretical losses (based on volume or value) are not allowable transportation costs. However,
these costs are allowable if they are based on a FERC- or State-approved tariff.
3. Federal and State income taxes, production taxes, royalty payments, or fees such as State severance
taxes.
4. The value of fuel taken from the gas stream and used to run compressors and pumps. Costs for services
that the lessee is obligated to perform at no cost to the Federal Government or Indian owner.

FORM ONRR-4110 SCHEDULE 1A (revised 9/2015)

Page 4 of 4

U.S. Department of the Interior

OMB Control Number 1012-0002

Office of Natural Resources Revenue

OMB Approval expires 09/30/2015

Non-Arm's-Length Transportation
System/Segment Operations, Maintenance, and
Overhead Expenditures Form ONRR-4110,
Supplemental Schedule 1A

Payor Identification Block
Payor Name and Code: _____________
Lease Number: ____________________
Agreement Number: ________________
Facility ID No: _____________________
Segment ID No: ___________________
Period:
to

(mm/dd/ccyy)

Type of Expenditure - Describe

$

Total

THIS INFORMATION SHOULD BE CONSIDERED (Please check one)

FORM ONRR-4110 SUPPLEMENTAL SCHEDULE 1A (revised 9/2015)

$
PROPRIETARY

NONPROPRIETARY
Page 1 of 2

Non-Arm’s-Length Transportation System/Segment Operations,
Maintenance, and Overhead Expenditures
Form ONRR-4110, Supplemental Schedule 1A
Instructions
Supplemental Schedule 1A is used to identify and document operating, maintenance, and overhead
expenditures listed under the “Other” expenditure categories on Schedule 1A.
Complete the payor identification block (see Schedule 1A instructions).
A separate Supplemental Schedule 1A must be prepared for other operating costs, other maintenance costs,
and other overhead costs associated with the transportation facility/segment.
Describe and specify each expenditure item and amount. Receipts and invoices should be retained in the
office of the payor subject to audit.
Sum the amounts of each expenditure and list on the total line.
Enter the total amount of the operations, maintenance, or overhead expenditures on Schedule 1A, lines 9,
15, or 19 accordingly.
Indicate by checking the appropriate box whether the information should be considered proprietary or
nonproprietary.

FORM ONRR-4110, SUPPLEMENTAL SCHEDULE 1A (revised 9/2015)

Page 2 of 2

U.S. Department of the Interior

OMB Control Number 1012-0002

Office of Natural Resources Revenue

OMB Approval Expires 9/30/2015

PAYOR IDENTIFICATION BLOCK
Payor Name and Code:
Lease Number:
Agreement Number:
Facility ID No:
Segment ID No:
Period:
(mm/dd/ccyy)
to

Non-Arm's-Length Transportation System/Segment
Depreciation and Capital Expenditure Summary
Form ONRR-4110, Schedule 1B

1

Expenditure Item

2
Initial Capital
Investment and Date
Placed in Service
$

3

Salvage Value

4
Depreciable
Life/Years of
Depreciation Taken
to Date

$

Totals
Allocated to Segment (from line 22, Schedule 1A)
Segment Depreciation and Capital Expenditure
(Line 8 x line 9) Enter in column g and e, Schedule 1
THIS INFORMATION SHOULD BE CONSIDERED (Please check one)

Form ONRR-4110 SCHEDULE 1B (revised 9/2015)

5
Undepreciated
Capital Investment
at Beginning of
Year
$

$

Undepreciated
Capital Investment
at End-of-Year
$

$
%
$

$
%
$

8
9
10

PROPRIETARY

6

7

Depreciation

NONPROPRIETARY

Page 1 of 2

Non-Arm’s-Length Transportation System/Segment
Depreciation and Capital Expenditures Summary
Form ONRR-4110, Schedule 1B
Instructions
Schedule 1B is used to summarize actual or estimated facility/segment depreciation and undepreciated
capital investment for computing return on investment. A separate Schedule 1B must be completed for each
segment in the transportation facility. The costs of all transportation facility segments are accumulated on
Schedule 1 to determine the total depreciation and undepreciated capital investment for the facility.
Complete the payor identification block (see Schedule 1A instructions).
For each facility/segment capital expenditure item complete one line as follows:
1. Identify the capital expenditure item.
2. Enter the initial capital expenditure amount and the date the expenditure was placed in service.
3. Enter a reasonable salvage value.
4. Enter the depreciable life of the expenditure and the number of years of depreciation taken to date.
5. Enter the undepreciated capital investment at beginning-of-year. In computing this value, salvage must
be deducted from the initial capital investment.
6. Enter the amount of depreciation to be taken for the year. In computing depreciation, the payor may
elect to use a straight-line depreciation method based on the life of the equipment or on the life of the
reserves or a unit of production method. Once an election is made, the payor may not alternate methods
without ONRR approval. Equipment shall not be depreciated below a reasonable salvage value
7. Enter the undepreciated capital investment at end-of-year. This is computed by subtracting depreciation
(column 6) from the beginning-of-year undepreciated capital investment (column 5). This amount will
be used as the next year’s beginning-of-year undepreciated capital investment.
8. Total columns 5 and 6.
9. Enter the “Allocated to Segment” amount from line 22, Schedule 1A, on line 9, columns 5 and 6.
10. Multiply line 8 by line 9 for columns 5 and 6 and enter on line 10 and on Schedule 1, columns g and e,
Parts A and B as appropriate.
Indicate by checking the appropriate box whether the information should be considered proprietary or
nonproprietary.

FORM ONRR-4110 SCHEDULE 1B (revised 9/2015)

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