1012-0002 30-Day FRN Published

1012-0002_30-day FRN_83 FR 64588_Published Dec 17 2018.pdf

30 CFR Parts 1202, 1206, and 1207, Indian Oil and Gas Valuation

1012-0002 30-Day FRN Published

OMB: 1012-0002

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Federal Register / Vol. 83, No. 241 / Monday, December 17, 2018 / Notices

IOWA
Van Buren County
Midway Stock Farm Barn, (Louden
Machinery Company, Fairfield Iowa MPS),
0.3 mi. S of jct. of IA 1 and IA16,
Keosauqua vicinity, OT99000126

Additional documentation has been
received for the following resources:
NORTH CAROLINA
Buncombe County
Asheville School, Roughly bounded by
Patton Ave., Southern RR line, US 40, Sand
Hill Rd., and Malvern Hills subdivision,
Asheville, AD96000614
Sampson County
Clinton Commercial Historic District,
Roughly bounded by Vance, Elizabeth,
Wall, and Sampson Sts., Clinton,
AD02000568
Authority: Section 60.13 of 36 CFR part 60
Dated: December 4, 2018.
Christopher Hetzel,
Acting Chief, National Register of Historic
Places/National Historic Landmarks Program.
[FR Doc. 2018–27208 Filed 12–14–18; 8:45 am]
BILLING CODE 4312–52–P

DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue
[Docket No. ONRR–2011–0021; DS63644200
DRT000000.CH7000 190D1113RT; OMB
Control Number 1012–0002]

Agency Information Collection
Activities: Submission to the Office of
Management and Budget for Review
and Approval; Indian Oil & Gas
Valuation
Office of the Secretary; Office
of Natural Resources Revenue, Interior.
ACTION: Notice of information collection;
request for comment.
AGENCY:

In accordance with the
Paperwork Reduction Act of 1995
(PRA), the Office of Natural Resources
Revenue (ONRR), is proposing to renew
an information collection with
revisions. ONRR seeks renewed
authority to collect information from
lessees using five forms necessary to
determine the correct royalties to be
collected on behalf of Indian Tribes and
individual Indian mineral owners.
Revisions from the prior approval to
collect this information are necessary
because the information collection
requirements on form ONRR–4410 were
reduced by a rule in 2015.
DATES: Interested persons are invited to
submit written comments on or before
January 16, 2019.
ADDRESSES: Send written comments on
this information collection request (ICR)

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SUMMARY:

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to the Office of Management and
Budget’s Desk Officer for the
Department of the Interior by email to
[email protected]; or by
facsimile to (202) 395–5806. Please
provide a copy of your comments to Mr.
Armand Southall, Regulatory Specialist,
ONRR, P.O. Box 25165, MS 64400B,
Denver, Colorado 80225–0165; or by
email to [email protected].
Please reference ‘‘OMB Control Number
1012–0002’’ in the subject line of your
comments.
FOR FURTHER INFORMATION CONTACT: To
request additional information about
this ICR, contact Ms. Lee-Ann Martin,
telephone at (303) 231–3313, or email to
[email protected]. You may also
view the ICR at http://www.reginfo.gov/
public/do/PRAMain.
SUPPLEMENTARY INFORMATION: In
accordance with the Paperwork
Reduction Act of 1995, we provide the
general public and other Federal
agencies with an opportunity to
comment on new, proposed, revised,
and continuing collections of
information. This helps us assess the
impact of our information collection
requirements and minimize the public’s
reporting burden. It also helps the
public understand our information
collection requirements and provide the
requested data in the desired format.
We published a notice, with a 60-day
public comment period soliciting
comments for this collection of
information, in the Federal Register on
July 11, 2018 (83 FR 32141). During the
60-day period, we specifically reached
out to five companies impacted by this
ICR to request input. In response to the
outreach, we received three responsive
comments.
The first comment we received stated
the following:
‘‘We do not have an update to provide
on the estimate burden. We can offer
comment in regards to the industry
submission process of the related forms
referenced in the ICR (ONRR–4109,
ONRR–4110, ONRR–4295, ONRR–4393,
ONRR–4410 and ONRR–4411) with
regard to the use of technology. Value
can be added to both industry and
ONRR by eliminating the paper
submission form and having the
company submit the form via the ONRR
online system. When the request is
submitted, ONRR staff should review
and approve that will notate the date
and name of approver. This submission
should also be available to pull and
view online through the
dwportal.onrr.gov website History
Database/Report tool. Currently, if a
company wanted to verify the forms
submitted to ONRR, they would have to

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contact them directly and they would
pull a report and send to the company.’’
The second comment we received
stated the following:
‘‘I’m sorry I haven’t gotten back to you
on this. I read through the document
and I didn’t see any burden estimates
that I thought were far enough off to
make official comment on. The burden
estimates for each case probably run
high when things are running smoothly,
and run low when a big problem
presents itself. I’m sorry I can’t be of
more help.’’
The third comment we received stated
the following:
‘‘We do not have comments to submit
at this time.’’
Once again, we are soliciting
comments on this ICR that is described
below. We are especially interested in
public comment addressing the
following issues: (1) Is the collection
necessary to the proper functions of
ONRR; (2) will this information be
processed and used in a timely manner;
(3) is the estimate of the burden
accurate; (4) how might ONRR enhance
the quality, usefulness, and clarity of
the information collected; and (5) how
might ONRR minimize the burden of
this collection on the respondents,
including through the use of
information technology.
Comments that you submit in
response to this notice are a matter of
public record. Before including
Personally Identifiable Information (PII),
such as your address, phone number,
email address, or other personal
identifying 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 your PII from
public view, we cannot guarantee that
we will be able to do so.
Abstract: 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 the royalties and other mineral
revenues due, and distribute the funds
collected. The Secretary also has 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. By collecting information
from the records of the lessee or others

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involved in developing, transporting,
processing, purchasing, or selling of
such minerals, we ensure that lessees
accurately value production and
appropriately pay royalties. Public laws
pertaining to mineral leases on Federal
and Indian lands and the OCS are
available at https://www.onrr.gov/Laws_
R_D/PubLaws/index.htm.
The information collections that we
cover in this ICR involve five forms,
forms ONRR–4109, ONRR–4110,
ONRR–4295, ONRR–4410, and ONRR–
4411. References to these forms, and
form ONRR–4393, which is approved
under OMB Control Number 1012–0005,
are identified in: 30 CFR part 1202,
subparts C and J, which pertain to
Indian oil and gas royalties; part 1206,
subparts B and E, which govern the
valuation of oil and 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 Valuation
Regulations at title 30 CFR part 1206,
subpart B, govern the valuation for
royalty purposes of oil produced from
Indian oil and gas leases (Tribal and
allotted), 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. Transportation
allowances may also be available to the
lessee.
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
non-arm’s-length contract or no contract
situations.
Indian Gas Valuation
Regulations at 30 CFR part 1206,
subpart E, govern the valuation for

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royalty purposes of natural gas
produced from Indian oil and gas leases
(Tribal and allotted). These regulations
require reporting on the four forms that
are the subject of this ICR, forms ONRR–
4109, ONRR–4295, ONRR–4410, and
ONRR–4411:

terms of an approved Federal
agreement. Under this section, a lessee
may also submit information to support
a request for ONRR to approve other
methods for determining the quantity of
residue gas and gas plant products
allocable to each lease.

• From information collected on form
ONRR–4109, Gas Processing Allowance
Summary Report, ONRR and Tribal audit
personnel evaluate (1) whether lesseereported processing 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–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.
• 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
an election for actual or alternative dual
accounting for Indian leases. Most Indian
leases contain the requirement to perform
accounting for comparison (dual accounting)
for gas produced from the lease. Therefore,
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.
• The regulations require that lessees
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.

Indian Oil and Gas
Regulations at 30 CFR 1206.56(b)(2)
and 1206.177(c)(2) and (c)(3) govern the
valuation for royalty purposes of oil and
gas produced from Indian oil and gas
leases (Tribal and allotted), and are
consistent with mineral leasing laws,
other applicable laws, and lease terms.
These regulations require reporting on
one form—that is also the subject of this
ICR—form ONRR–4393.
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 for this form
are incurred on Federal leases;
therefore, OMB approved this form
under OMB Control Number 1012–0005
titled Federal Oil and Gas Valuation,
which pertains to Federal oil and gas
leases. However, we include a
discussion of this 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 and track deductions on
subsequent royalty reports.

This ICR also allows ONRR to collect
information to support a lessee’s request
for exclusion or the termination of
exclusion under 30 CFR 1206.174. An
Indian Tribe may ask ONRR to exclude
some or all of its leases from valuation
under this section. ONRR will consult
with Bureau of Indian Affairs regarding
the Tribe’s request. If ONRR approves
the request for the Tribal lease, the
lessee must value the production as
specified in § 1206.174. The lessee may
ask ONRR for guidance in determining
value and may propose a valuation
method to ONRR. The lessee must
submit all available data related to the
proposal and any additional information
that ONRR deems necessary.
In addition, this ICR allows ONRR,
under 30 CFR 1206.175, to collect
information to support a lessee’s request
to report royalties based on the volumes
allocable to its lease acreage under the

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Revisions to ICR
This is an ICR with revisions because
it takes into account the final rule
published May 1, 2015, which amended
ONRR’s Indian oil valuation regulations
(80 FR 24794). This ICR requires minor
revisions to note changes to its authority
when the final rule amended 30 CFR
part 1206, subpart B. The two changes
relevant to this ICR are that the
amendment eliminated: (1) The form
ONRR–4110 filing requirements for
arm’s-length transportation allowance;
and (2) the pre-filing of form ONRR–
4110 prior to claiming a non-arm’slength transportation allowance. The
final rule noted that OMB approved a
total of 220 burden hours for lessees to
submit their respective form ONRR–
4110 under this ICR—OMB Control
Number 1012–0002. It also noted that
‘‘there will be no additional burden
hours because this rule will
insignificantly reduce the burden hours

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associated with the Oil Transportation
Allowance Report.’’ Under the revised
Indian oil valuation regulations, rather
than submitting estimated
transportation cost information on the
form and then following up with actual
cost information at the end of the
reporting cycle, lessees need only to
provide actual cost information. Also,
lessees that have arm’s-length
transportation costs are no longer
required to submit form ONRR–4110 to
report these costs, but will, instead,
submit copies of the actual contracts to
ONRR.
OMB Approval
We are requesting OMB’s approval to
continue to collect this information,
with revisions. 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

Total Estimated Number of Annual
Respondents: 146 lessees of Indian
leases.
Total Estimated Number of Annual
Responses: 146.
Estimated Completion Time per
Response: 8.9 hours.
Total Estimated Number of Annual
Burden Hours: 1,299 hours.
Respondent’s Obligation: Mandatory,
or Required to Obtain or Retain a
Benefit.
Frequency of Collection: Annually
and on occasion.
Total Estimated Annual Nonhour
Burden Cost: None.
We have not included in our
estimates certain requirements
performed in the normal course of
business and considered usual and
customary. The following chart shows
the estimated burden hours by CFR
section and paragraph:

Indian Tribes and individual Indian
mineral owners. ONRR protects the
proprietary information 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. The lessees are required
to report on forms ONRR–4109, ONRR–
4110, ONRR–4295, and ONRR–4393 in
order to obtain a benefit.
Title of Collection: Indian Oil and Gas
Valuation, 30 CFR parts 1202, 1206, and
1207.
OMB Control Number: 1012–0002.
Form Numbers: ONRR–4109, ONRR–
4110, ONRR–4295, ONRR–4410, and
ONRR–4411.
Type of Review: Revision of a
currently approved collection.
Respondents/Affected Public:
Businesses.

RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS
30 CFR

Average
number of
annual
responses

Hour
burden

Reporting and recordkeeping requirement

Annual
burden
hours

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

Standards for reporting and paying royalties. Report oil volumes in
barrels of clean oil of 42 standard U.S. gallons (231 cubic inches
each) at 60 °F.

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

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) .................

You and all other persons paying royalties on the lease may ask
ONRR for permission to report and pay royalties based on your
entitlements * * *.

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

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

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

1

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

Part 1206—PRODUCT VALUATION
Subpart B—Indian Oil

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1206.56(b)(2) ..............

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What general transportation allowance requirements apply to me?
* * * (2) Upon your request, 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
* * *.

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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Average
number of
annual
responses

Hour
burden

Annual
burden
hours

30 CFR

Reporting and recordkeeping requirement

1206.57(a)(1), (2), and
(3).

How do I determine a transportation allowance if I have an arm’slength transportation contract? Arm’s-length transportation. (a)(1)
* * * You have the burden of demonstrating that your contract is
arm’s-length. (2) You must 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 that
ONRR receives your report, which claims the allowance on form
ONRR–2014. (3) * * * 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)(4)(i) ...........

* * * Except as provided in this paragraph, you may not take an allowance for the costs of transporting lease production, which is
not royalty-bearing, without ONRR’s approval.

Burden covered under § 1206.57(a)(5).

1206.57(a)(4)(ii) ..........

Notwithstanding the requirements of paragraph (a)(4)(i) of this section, you may propose to ONRR a cost allocation method on the
basis of the values of the products transported * * *.

20

1

20

1206.57(a)(5) ..............

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, you must
propose an allocation procedure to ONRR * * *.

40

1

40

1206.57(a)(5)(ii) ..........

You must submit to ONRR all available data to support your proposal.

1206.57(a)(5)(iii) .........

You must submit your initial proposal within 3 months after the last
day of the month for which you request a transportation allowance, whichever is later (unless ONRR approves a longer period).

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

Reporting requirements. If ONRR requests, you must submit all
data used to determine your transportation allowance * * *.

AUDIT PROCESS. See note.

1206.57(b)(2) ..............

You must report transportation allowances as a separate entry on
form ONRR–2014 * * *.

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

1206.58(a)(1) ..............

How do I determine a transportation allowance if I have a nonarm’s-length transportation contract or have no contract? Nonarm’s-length or no contract. If you have a non-arm’s-length transportation contract or no contract, including those situations where
you or your affiliate perform(s) transportation services for you, the
transportation allowance is based on your reasonable, actual
costs.

AUDIT PROCESS. See note.

1206.58(a)(2) ..............

You must submit the actual cost information to support the allowance to ONRR on form ONRR–4110, Oil Transportation Allowance Report, within 3 months after the end of the calendar year
to which the allowance applies * * *.

6

1

6

1206.58(a)(3)(iv) .........

* * * After you have elected to use either method for a transportation system, you may not later elect to change to the other alternative without approval of ONRR.

20

1

20

1206.58(a)(3)(iv)(A) ....

* * * After you make an election, you may not change methods
without ONRR’s approval * * *.

20

1

20

1206.58(a)(4)(i) ...........

* * * Except as provided in this paragraph (a)(4)(i), you may not
take an allowance for transporting lease production that is not
royalty bearing without ONRR’s approval.

40

1

40

1206.58(a)(4)(ii) ..........

Notwithstanding the requirements of paragraph (a)(4)(i) of this section, you may propose to ONRR a cost allocation method on the
basis of the values of the products transported * * *.

20

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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued

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30 CFR

Average
number of
annual
responses

Hour
burden

Reporting and recordkeeping requirement

Annual
burden
hours

1206.58(a)(5)(ii) and
(iii).

Where both gaseous and liquid products are transported through
the same transportation system, you must propose a cost allocation procedure to ONRR * * * (ii) You must submit to ONRR all
available data to support your proposal. * * * (iii) You must submit your initial proposal within 3 months after the last day of the
month for which you request a transportation allowance (unless
ONRR approves a longer period).

20

1

20

1206.58(a)(6) ..............

You may apply to ONRR for an exception from the requirement that
you compute actual costs under paragraphs (a)(1) through (5) of
this section.

20

1

20

1206.58(b)(1) ..............

Reporting requirements. If ONRR requests, you must submit all
data used to determine your transportation allowance, You must
provide the data within a reasonable period of time that ONRR
will determine.

AUDIT PROCESS. See note.

1206.58(b)(2) ..............

You must report transportation allowances as a separate entry on
form ONRR–2014 * * *.

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

1206.58(b)(3) ..............

ONRR may require you to submit all of the data that you used to
prepare your form ONRR–4110. You must submit the data within
a reasonable period of time that ONRR determines.

AUDIT PROCESS. See note.

1206.59(a) ..................

What interest applies if I improperly report a transportation allowance? If you deduct a transportation allowance on form ONRR–
2014 without complying with the requirements of §§ 1206.56 and
1206.57 or § 1206.58, you must pay additional royalties due plus
late payment interest calculated under § 1218.54 of this chapter.

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

1206.60(a) ..................

What reporting adjustments must I make for transportation allowances? If your actual transportation allowance is less than the
amount that you claimed on form ONRR–2014 for each month
during the allowance reporting period, you must pay additional
royalties due, plus late payment interest calculated under
§ 1218.54 of this chapter.

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

1206.60(c) ...................

If you make an adjustment under paragraph (a) or (b) of this section, then you must submit a corrected form ONRR–2014 to reflect actual costs, together with any payment, using instructions
that ONRR provides.

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

1206.61(a)(2) ..............

How will ONRR determine if my royalty payments are correct?
* * * If ONRR directs you to use a different royalty value, you
must pay any additional royalties due plus late payment interest
calculated under § 1218.54 of this chapter.

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

1206.62(a) ..................

How do I request a value determination? You may request a value
determination from ONRR regarding any oil produced. Your request must include: (1) Be in writing. (2) Identify specifically all
leases involved, all interest owners of those leases, the designee(s), and the operator(s) for those leases. (3) Completely explain all relevant facts. * * * (4) Include copies of all relevant
documents. (5) Provide your analysis of the issue(s) * * * (6)
Suggest your proposed valuation method.

1206.62(c)(2) ..............

After the Assistant Secretary [for Indian Affairs] issues a value determination, you must make any adjustments to royalty payments
that follow from the determination, and, if you owe additional royalties, you must pay the additional royalties due plus late payment interest calculated under § 1218.54 of this chapter.

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

1206.64 .......................

What records must I keep to support my calculations of value under
this subpart? If you determine the value of your oil under this
subpart, you must retain all data relevant to the determination of
royalty value * * *.

AUDIT PROCESS. See note.

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Federal Register / Vol. 83, No. 241 / Monday, December 17, 2018 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
30 CFR

Average
number of
annual
responses

Hour
burden

Reporting and recordkeeping requirement

Annual
burden
hours

amozie on DSK3GDR082PROD with NOTICES1

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, Certification for Not
Performing Accounting for comparison (Dual Accounting), 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) ........

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 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) ............

You must make a separate election to use the alternative methodology for dual accounting for your Indian leases in each ONRRdesignated area * * *.

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

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

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

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

1206.174(b)(1)(i) and
(iii); (b)(2); (d)(2).

(b) Arm’s-length contracts. * * * ........................................................
(1) The value of gas, residue gas, or any gas plant product you sell
under an arm’s-length contract is the gross proceeds accruing to
you or your affiliates * * *.
(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 * * * ...................................................................

AUDIT PROCESS. See note.

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Federal Register / Vol. 83, No. 241 / Monday, December 17, 2018 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued

30 CFR

Average
number of
annual
responses

Hour
burden

Reporting and recordkeeping requirement

Annual
burden
hours

(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) ................

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.

AUDIT PROCESS. See note.

1206.174(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? * * * 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) .................

* * * 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).

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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. (1) This
paragraph explains how to determine your allowance if you have
an arm’s-length transportation contract. (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) .......

If ONRR determines that the consideration paid under an arm’slength 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)(2)(i) * * * [Y]ou 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).

(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

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18

18

AUDIT PROCESS. See note.

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Federal Register / Vol. 83, No. 241 / Monday, December 17, 2018 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Average
number of
annual
responses

Hour
burden

Annual
burden
hours

30 CFR

Reporting and recordkeeping requirement

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

(b) Determining a transportation allowance under a non-arm’slength 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) .......

You may use either depreciation with a return on undepreciated
capital investment or a return on depreciable capital investment.
After you have elected to use either method for a transportation
system, you may not later elect to change to the other alternative
without ONRR approval.

20

1

20

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

* * * Once you make an election, you may not change methods
without ONRR approval.

20

1

20

1206.178(b)(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

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

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. (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 § 1218.54
of this chapter 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 * * *.

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

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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’s-length 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) .......

If ONRR determines that the consideration paid under an arm’slength 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.

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2

AUDIT PROCESS. See note.

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Federal Register / Vol. 83, No. 241 / Monday, December 17, 2018 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Average
number of
annual
responses

Hour
burden

Annual
burden
hours

30 CFR

Reporting and recordkeeping requirement

1206.180(a)(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 * * *.

40

1

40

1206.180(b)(1)(ii) ........

(b) Determining a processing allowance if you have a non-arm’slength 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 * * *.

20

12

240

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

You may use either depreciation with a return on undepreciable
capital investment or a return on depreciable capital investment.
After you elect to use either method for a processing plant, you
may not later elect to change to the other alternative without
ONRR approval * * *.

20

1

20

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

* * * Once you make an election, you may not change methods
without ONRR approval * * *.

20

1

20

1206.180(b)(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.

20

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)(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 § 1218.54 of this chapter from the first
day of the first month you deducted a processing allowance until
the date you pay the royalties due * * *.

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

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

How do I establish processing costs for dual accounting purposes
when I do not process the gas? * * * 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.

40

1

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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. * * * 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.

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Federal Register / Vol. 83, No. 241 / Monday, December 17, 2018 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Reporting and recordkeeping requirement

Hour
burden

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

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

30 CFR

Total Burden ........

Average
number of
annual
responses
146

Annual
burden
hours
1,299

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.

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.
Authority: Paperwork Reduction Act of
1995 (44 U.S.C. 3501 et seq.).
Gregory J. Gould,
Director for Office of Natural Resources
Revenue.
[FR Doc. 2018–27259 Filed 12–14–18; 8:45 am]
BILLING CODE 4335–30–P

INTERNATIONAL TRADE
COMMISSION
[Investigation Nos. 701–TA–606 and 731–
TA–1416 (Final)]

Quartz Surface Products From China;
Scheduling of the Final Phase of
Countervailing Duty and Antidumping
Duty Investigations
United States International
Trade Commission.
ACTION: Notice.
AGENCY:

The Commission hereby gives
notice of the scheduling of the final
phase of antidumping and
countervailing duty investigation Nos.
701–TA–606 and 731–TA–1416 (Final)
pursuant to the Tariff Act of 1930 (‘‘the
Act’’) to determine whether an industry
in the United States is materially
injured or threatened with material
injury, or the establishment of an
industry in the United States is
materially retarded, by reason of
imports of quartz surface products from
China, provided for in subheading
6810.99 of the Harmonized Tariff
Schedule of the United States,
preliminarily determined by the
Department of Commerce (‘‘Commerce’’)
to be subsidized and sold at less-thanfair-value.
DATES: November 20, 2018.
FOR FURTHER INFORMATION CONTACT:
Lawrence Jones (202–205–3358), Office
of Investigations, U.S. International
Trade Commission, 500 E Street SW,
Washington, DC 20436. Hearingimpaired persons can obtain
information on this matter by contacting

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SUMMARY:

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the Commission’s TDD terminal on 202–
205–1810. Persons with mobility
impairments who will need special
assistance in gaining access to the
Commission should contact the Office
of the Secretary at 202–205–2000.
General information concerning the
Commission may also be obtained by
accessing its internet server (https://
www.usitc.gov). The public record for
these investigations may be viewed on
the Commission’s electronic docket
(EDIS) at https://edis.usitc.gov.
SUPPLEMENTARY INFORMATION:
Scope.— For purposes of these
investigations, Commerce has defined
the subject merchandise as certain
quartz surface products.1 Quartz surface
products consist of slabs and other
surfaces created from a mixture of
materials that includes predominately
silica (e.g., quartz, quartz powder,
cristobalite) as well as a resin binder
(e.g., an unsaturated polyester). The
incorporation of other materials,
including, but not limited to, pigments,
cement, or other additives does not
remove the merchandise from the scope
of the investigations. However, the
scope of the investigations only
includes products where the silica
content is greater than any other single
material, by actual weight. Quartz
surface products are typically sold as
rectangular slabs with a total surface
area of approximately 45 to 60 square
feet and a nominal thickness of one,
two, or three centimeters. However, the
scope of these investigations includes
surface products of all other sizes,
thicknesses, and shapes.
In addition to slabs, the scope of these
investigations includes, but is not
limited to, other surfaces such as
countertops, backsplashes, vanity tops,
bar tops, work tops, tabletops, flooring,
wall facing, shower surrounds, fire
place surrounds, mantels, and tiles.
Certain quartz surface products are
covered by the investigations whether
polished or unpolished, cut or uncut,
fabricated or not fabricated, cured or
1 Quartz surface products may also generally be
referred to as engineered stone or quartz, artificial
stone or quartz, agglomerated stone or quartz,
synthetic stone or quartz, processed stone or quartz,
manufactured stone or quartz, and Bretonstone.

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uncured, edged or not edged, finished or
unfinished, thermoformed or not
thermoformed, packaged or unpackaged,
and regardless of the type of surface
finish. In addition, quartz surface
products are covered by the
investigations whether or not they are
imported attached to, or in conjunction
with, non-subject merchandise such as
sinks, sink bowls, vanities, cabinets, and
furniture. If quartz surface products are
imported attached to, or in conjunction
with, such non-subject merchandise,
only the quartz surface product is
covered by the scope.
Subject merchandise includes
material matching the above description
that has been finished, packaged, or
otherwise fabricated in a third country,
including by cutting, polishing, curing,
edging, thermoforming, attaching to, or
packaging with another product, or any
other finishing, packaging, or fabrication
that would not otherwise remove the
merchandise from the scope of the
investigations if performed in the
country of manufacture of the quartz
surface products.
The scope of the investigations does
not cover quarried stone surface
products, such as granite, marble,
soapstone, or quartzite. Specifically
excluded from the scope of the
investigations are crushed glass surface
products. Crushed glass surface
products are surface products in which
the crushed glass content is greater than
any other single material, by actual
weight.
The products subject to the scope are
currently classified in the Harmonized
Tariff Schedule of the United States
(HTSUS) under the following statistical
reporting numbers: 6810.99.0010.
Subject merchandise may also enter
under subheadings 6810.11.0010,
6810.11.0070, 6810.19.1200,
6810.19.1400, 6810.19.5000,
6810.91.0000, 6810.99.0080,
6815.99.4070, 2506.10.0010,
2506.10.0050, 2506.20.0010,
2506.20.0080. The HTSUS subheadings
set forth above are provided for
convenience and U.S. Customs purposes
only. The written description of the
scope is dispositive.

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