ONRR uses the information collected in this ICR to ensure that royalty is appropriately paid, based on accurate production accounting on oil, gas, and geothermal resources produced from Federal and Indian leases. Our integrated financial accounting system compares royalty (form ONRR-2014) and production volumes (forms ONRR-4054 and ONRR-4058) to verify that proper royalties are received for the minerals produced.
US Code:
25 USC 396d
Name of Law: Chapter 12--Lease, Sale or Surrender of Allotted or Unallotted Lands
US Code:
25 USC 2103
Name of Law: Indian Mineral Development Act of 1920
US Code:
30 USC 1923
Name of Law: The Mineral Leasing Act
US Code:
43 USC 1353
Name of Law: The Outer Continental Shelf Lands Act
US Code:
30 USC 1701 et seq.
Name of Law: Federal Oil and Gas Royalty Management Act of 1982
The current OMB-approved inventory is 337,933 annual burden hours. Our current estimate of the burden hours is 420,241, resulting in a total adjustment increase of +82,308 hours. We analyzed our current data and found an increase in the time that industry takes to complete the requirements for forms ONRR-2014 and ONRR-4054. We also found a decrease in the burden hour estimates for industry to complete form ONRR-4058. Based on industryâs established historical compliance data and our regular ongoing contact and interaction with companies to resolve questions as they arise, there is an adjustment change for a total adjustment increase of +82,308 hours and an increased burden change of +2,369,178 responses. We identified no ânon-hourâ cost burdens for this collection of information. This is a change from the currently approved collection which indicates a non-hour cost burden of $7,200 per respondent, with an annualized cost of $9,288,000. We removed the "Non-Hour Cost Burden" here because the estimated $9,288,000 burden was a one-time cost due to a regulation change promulgated in the Indian Oil Valuation Amendments final rulemaking [published May 1, 2015, 80 FR 24794â24814]. The regulations are codified in 30 CFR 1206.50 et seq. This $9,288,000 represented costs companies incurred to implement system changes and to setup accounting systems to comply with the revised Indian oil valuation regulations. Specifically, the 2015 amended regulations now require Indian lessees to report crude oil types using new product codes on forms ONRR-2014 and ONRR-4054, for their automated reporting. This information is necessary for ONRR to calculate the index-based major portion prices Indian lessees must use to value oil for royalty purposes. Indian lessees should have incurred these one-time costs prior to the July 1, 2015 effective date of rule, and no additional costs to implement the 2015 rule is expected.
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.