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 industry’s 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 “non-hour”
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 24794–24814]. 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.
Form 4054 Parts A, B, C Production Accounting--OGOR
11827.pdf
0004 SSA_15_explained_20190529cc.docx
Production Accounting--OGOR