1012-0010_SS_8.10.2022cc

1012-0010_SS_8.10.2022cc.docx

Solid Minerals and Geothermal Collections - 30 CFR Parts 1202, 1206, 1210, 1212, 1217, and 1218

OMB: 1012-0010

Document [docx]
Download: docx | pdf

Supporting Statement A


Solid Minerals and Geothermal Collections –

30 CFR Parts 1202, 1206, 1210, 1212, 1217, and 1218


OMB Control Number 1012-0010


Terms of Clearance: None.


General Instructions


A completed Supporting Statement A must accompany each request for approval of a collection of information. The Supporting Statement must be prepared in the format described below and must contain the information specified below. If an item is not applicable, provide a brief explanation. The Office of Management and Budget (“OMB”) reserves the right to require the submission of additional information with respect to any request for approval.


Specific Instructions


  1. Justification


1. Explain the circumstances that make the collection of information necessary. Identify any legal or administrative requirements that necessitate the collection.


The Secretary of the U.S. Department of the Interior (“Secretary”) 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: (1) manage mineral resources production on Federal and Indian lands and the OCS; (2) collect the royalties and other mineral revenues due; and (3) distribute the funds collected.


The Secretary also has a trust responsibility to manage Indian lands and seek advice and information from Indian beneficiaries. The Office of Natural Resources Revenue (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.


When a company or an individual enters into a lease to explore, develop, produce and sell, or otherwise dispose of, minerals from Federal or Indian lands, that company or individual agrees to pay the lessor a share in a value of production from the leased lands. The information collected includes data necessary to ensure that royalties are valued correctly and distributed and disbursed appropriately.


The information collections that ONRR covers in this Information Collection Request (ICR) are found in the following parts of title 30 of the Code of Federal Regulations (CFR):


  • Part 1202, subpart H

  • Part 1206, subparts F, H and J

  • Part 1210. subparts E and H

  • Part 1212, subparts E and H

  • Part 1217, subparts E, F and G

  • Part 1218, subparts E and F


The following eight laws pertaining to mineral leases on Federal and Indian lands and the OCS are posted at http://www.onrr.gov/Laws_R_D/PubLaws/default.htm:


  1. 25 U.S.C. 396d, Chapter 12—Lease, Sale, or Surrender of Allotted or Unallotted Lands

  2. 25 U.S.C. 2103, Chapter 23—Development of Tribal Mineral Resources

  3. 30 U.S.C. 189, Chapter 3A—Leases and Prospecting Permits

  4. 30 U.S.C. 359, Chapter 7—Lease of Mineral Deposits within Acquired Lands

  5. 30 U.S.C. 1001, 1002, Chapter 23—Geothermal Steam and Associated Geothermal Resources

  6. 43 U.S.C. 1334, Chapter 29—Submerged Lands, Subchapter III—Outer Continental Shelf Lands Act

  7. 30 U.S.C. 181-263—Mineral Leasing Act of 1920

  8. 42 U.S.C. 15801, Chapter 149—The Public Health and Welfare



2. Indicate how, by whom, and for what purpose the information is to be used. Except for a new collection, indicate the actual use the agency has made of the information received from the current collection. Be specific. If this collection is a form or a questionnaire, every question needs to be justified.


ONRR, acting for the Secretary, uses the information that it collects to ensure that lessees accurately value and appropriately pay all royalties and other mineral revenues due based on the correct product valuation. ONRR and other Federal government agencies, including the Bureau of Land Management (BLM), Bureau of Indian Affairs (BIA), and State and Tribal governmental entities, use the information for audit purposes and for evaluating the reasonableness of product valuation or allowance claims that lessees submit. These bureaus and other governmental entities use this data to: (1) conduct production verification; (2) ensure lease diligence; (3) monitor plant efficiencies; (4) ensure maximum recovery; and (5) conduct secondary product inventories. Determining the appropriate product value or allowance rate directly affects the royalties and other mineral revenues due. Failure to collect such data would prevent the Secretary from fulfilling statutory and trust responsibilities. All data reported is subject to subsequent audit and adjustment.


Some reporting requirements alert ONRR to possible problems at the beginning of the compliance process, which allows the Solid Minerals and Geothermal group under Revenue, Reporting and Compliance Management (RRCM) and State and Tribal audit offices to provide resolution within three years: this is part of ONRR’s compliance strategy. Other reporting requirements enable ONRR to timely and accurately collect, account for, and disburse mineral revenues.


This information collection request provides for the collection of solid minerals royalty and production information on the forms, listed below, and other associated data formats, such as sales summaries, facility data, sales contracts and amendments, and payment information. This ICR also includes some information collections for geothermal resources, such as the burden hours for valuation requests related to geothermal leases. Geothermal reporters primarily report information on the Report of Sales and Royalty Remittance (form ONRR-2014), which is covered in OMB Control Number 1012-0004.


Solid Minerals


Producers of coal and other solid minerals from any Federal or Indian lease must submit the Solid Minerals Production and Royalty Report (form ONRR-4430) and other associated data formats such as, the Solid Minerals Sales Summary (form ONRR-4440), facility data, sales contracts and amendments, and payment information. These companies also report certain data on form ONRR-2014. Producers of coal from any Indian lease must also submit the Coal Washing Allowance Report (form ONRR-4292) and the Coal Transportation Allowance Report (form ONRR-4293), if they wish to claim allowances on form ONRR-4430. The information that ONRR requests is the minimum necessary to carry out our mission and places the least possible burden on respondents. ONRR discusses the forms and associated data formats below. Please refer to the burden chart in Item 12 for all reporting requirements and associated burden hours.


  • Form ONRR-4430 [Solid Minerals Production and Royalty Report]—Producers of coal and other solid minerals from Federal and Indian leases file electronically this form monthly. The form contains basic lease-level volume and valuation information. ONRR uses the collected data from this form in the following manner:


    • ONRR matches the royalty payment check or electronic funds transfer to form ONRR-4430; maintains lease accounts of payments; and ensures the distribution of data and disbursement of monies to States, American Indians, and the United States Treasury.


    • ONRR monitors Federal and non-Federal lease production from mines, which is essential for the compliance process. Furthermore, ONRR uses the allocation of production to ensure that commingled Federal and non-Federal mineral production volumes and values summarized under one product category are allocated properly back to the lease where the raw minerals were mined.


    • ONRR makes production quantities, sales quantities, and inventory data available to BLM for production verification and lease diligence requirements.


    • ONRR also provides production and sales data to BIA and State and Tribal audit offices for their mineral studies and audits.


    • ONRR collects basic lease-level volume and valuation information on form ONRR-4430 to begin compliance review activities. In addition, ONRR compares this reported data against information from the facility data, contracts, sales contracts and amendments, and form ONRR-4440 to identify and resolve value, volume, and royalty rate compliance issues.


      • Associated Data Formats—Along with form ONRR-4430, producers may also submit the following:


Form ONRR-4440 [Solid Minerals Sales Summary]—Lessees of coal and other solid minerals from Federal and Indian leases will submit required data on form ONRR-4440. Lessees will find the required data elements in the table in 30 CFR 1210.202. Lessees will submit the sales summary form along with form ONRR-4430. The sales summary information will aid ONRR in determining a lessee’s compliance with applicable laws, rules, regulations, and sales contracts. ONRR will use data collected from the sales summary forms. ONRR also will:


  • Use the purchaser information identified as spot sales to determine a value of coal for advance royalty purposes as mandated by the Energy Policy Act of 2005. In the process, ONRR would look for comparable sales volumes and gross proceeds.


  • Compare the sales summary information to form ONRR-4430 sales information in the compliance process.


  • Compare the sales summary purchaser information to sales contract terms in the compliance process. This analysis would ensure the lessee’s compliance with contract terms, such as price and quality.


  • Analyze the sales summary information to ensure lessees are properly applying valuation methodologies.


  • Use the sales summary information to identify the arm’s-length relationship between the purchaser and seller. Regulations at 30 CFR 1206.252 provide for valuation standards based on this relationship.


Contracts and Contract Amendments—Coal and metal producers submit sales contracts, agreements, and contract amendments semiannually. Sodium, potassium, phosphate, and other solid mineral producers with leases containing ad valorem royalty terms submit the required documents only if ONRR specifically requests them. ONRR uses the collected data from these contracts in the following manner:


  • Contracts identify issues related to value and may include information on sales to affiliated companies or identify monies or other items considered as payments for production that is royalty bearing.


  • ONRR extracts data affecting royalty payments from the contracts and amendments that respondents submit. ONRR uses contracts to establish sales arrangements and the relationships that each contract has to the total mine production, sales, and subsequent royalty payments. From contracts, ONRR obtains purchaser names, volumes, periods, prices, built-in adjustments or escalation features, quality requirements, and related considerations. Furthermore, ONRR may consider a component of gross proceeds, service value in kind, transportation arrangements, measurement points, price components, and other information that may affect value for royalty purposes. Sales arrangements can provide information regarding the interrelationships between companies, that is, whether the producer’s sale is truly at arm's length. ONRR determines value for royalty purposes by methodologies dependent on the arm’s-length or non-arm’s-length status of the sale.


  • An arm’s-length contract is a contract or an agreement that is between independent, nonaffiliated persons with opposing economic interests regarding that contract. The regulations further provide that ONRR normally accepts the gross proceeds accruing to the lessee according to their arm’s-length contract as being representative of value for ad valorem leases (see 30 CFR 1206.452).



Facility Data—Operators of wash plants, refining, ore concentration, or other processing facilities for any coal, sodium, potassium, metals, or other solid minerals submit facility data information for the months that they process or carry an inventory. Companies submit the required data from internally generated documents from their own records. ONRR collects facility data from the company and uses the data in the following manner:


  • Allowance Monitoring—Under certain lease terms, ONRR permits lessees to deduct the costs of processing that enhances the value of the mineral production. ONRR monitors such costs, which are included in the facility data, to ensure that the allowance deductions are reasonable and consistent with regulatory standards.


  • Allocation of Production—ONRR monitors raw production input and finished product output to ensure commingled Federal and non-Federal mineral production is allocated properly back to the lease where the raw minerals were mined.


  • BLM Product Verification—BLM uses the facility data to verify production during regular inspections of facilities. They also use the data to ensure lease diligence and to monitor plant efficiencies, maximum recovery, and secondary product inventories. ONRR also makes facility data available to BIA and to State and Tribal audit offices for their mineral studies and audits.


Additional Documents or Evidence—ONRR requests detailed statements, documents, or other evidence that supports the responsibilities of the Audit Management Program and the State and Tribal audit offices under Federal and Indian lease terms. Spot sale invoices, weigh tickets, laboratory quality reports, transportation contracts, and service contracts are all examples of additional documents that ONRR might request. The information that ONRR collects might further define a cost or verify a claim that the producer made.


Payment Information—Under 30 CFR 1218.201, ONRR collects payment information data to use in the financial management process in the following manner:


  • For each royalty payment document (Electronic Funds Transfer or hard-copy check) associated with form ONRR-4430, the lessee must annotate with their customer identification and customer document identification numbers. This requirement helps ONRR link the payment to the appropriate reporting so that ONRR can timely disburse funds to the correct recipients.


  • For each rental payment document not reported on form ONRR-4430, the lessee must include the ONRR Courtesy Notice, when provided, or annotate the payment document with the customer identification number and Government-assigned lease number. This requirement helps ONRR link payments with form ONRR-4430 submittals.


    • Allowance Reports—Producers on Indian leases also report allowances claimed on form ONRR-4430. ONRR may grant an allowance to compensate lessees for the reasonable actual cost of washing the portion of the coal on which royalty is due. Also, when the sales point is not in the immediate vicinity of a lease or mine area, ONRR may grant an allowance to compensate the lessee for the reasonable, actual cost of transporting the royalty portion of the coal to a sales point not on the lease or mine area.


When the lessee washes, or transports, the Indian royalty coal under a non-arm’s-length contract, ONRR is required to obtain cost data. ONRR uses this cost data to accurately determine if the lessee correctly computed the coal value and the gross proceeds for royalty calculation purposes.


Lessees complete the following forms when reporting, or requesting, a washing or transportation allowance:


Form ONRR-4292 [Coal Washing Allowance Report]—Regulations at 30 CFR 1206.467, 1206.470 and 1206.471 provide that, when determining coal value for royalty purposes, an Indian lessee may take a deduction for the reasonable actual costs incurred to wash the coal.


  • For washing costs that a lessee incurs under an arm’s-length contract, the lessee’s allowance is the reasonable costs incurred for washing the coal under that contract. ONRR’s approval is not required to take the allowance. However, before any deduction is taken, the Indian lessee must submit a completed page 1 of form ONRR-4292, then report the washing allowance, as a separate entry, on form ONRR-4430, estimating the tons of coal washed, rate per ton, and allowance to be taken during the allowance period. Then the coal washing allowance is effective until the end of the calendar year or until the termination, modification, or amendment of the applicable washing contract or rate, whichever is earlier. After the initial period, the lessee must submit the entire form ONRR-4292 and report actual tons washed, rate per ton, and allowance taken for the calendar year. You also may request ONRR’s approval to use the coal washing allowance for a longer period. Information that ONRR requires on the form ONRR-4292 includes the lessee’s name and address, payor and product codes as reported on form ONRR-4430, estimated or actual production, and the allowance claimed.


  • If the lessee has a non-arm’s-length washing contract, or no written arm’s-length contract, ONRR bases the washing allowance on the lessee’s reasonable actual costs. ONRR’s approval is not required to take the allowance. However, the Indian lessee must submit a completed initial form ONRR-4292 to provide estimated washing costs the same month the washing allowance is reported on form ONRR-4430. The allowance is effective until the end of the calendar year or the termination, modification, or amendment of the applicable washing contract or rate, whichever is earlier. At the end of the calendar year for which you submitted a form ONRR-4292, the lessee must submit another completed form ONRR-4292 containing the actual washing costs for that calendar year. ONRR must receive that form within three months after the end of the previous calendar year. Thus, for the next calendar year, lessee must submit form ONRR-4292 to report an estimated allowance based on the actual allowance rate of the lessee’s portion of the actual plant operating, maintenance, and overhead expenditures for the prior calendar year.


Form ONRR-4293 [Coal Transportation Allowance Report]Regulations at 30 CFR 1206.460, 1206.463 and 1206.464 provide that, where the royalty value of the coal has been determined at a point remote from the lease or the mine, ONRR will allow a deduction for the reasonable, actual costs incurred to transport the coal to a sales point or to a washing facility remote from the mine area or lease.


  • As with the washing allowance, ONRR’s approval is not required to deduct transportation costs. However, before any deduction is taken under arm’s-length contracts, the Indian lessee must submit a completed page 1 of form ONRR-4293 with estimated costs, then report the transportation allowance, as a separate entry, on form ONRR-4430. Under non-arm’s-length contract, or no written arm’s-length contract, the lessee must submit the completed form providing estimated transportation, operating, maintenance, and overhead expenses. The transportation allowance is effective the end of the calendar year or until the termination, modification, or amendment of the applicable transportation contract or rate, whichever is earlier. After the initial reporting period, the lessee must submit the entire form ONRR-4293 for arm’s-length and non-arm’s-length, or no written arm’s-length, contracts, providing actual costs incurred during the previous calendar year. ONRR must receive the form within three months after the end of the previous calendar year. For any arm’s-length contracts, you may request to use an allowance for a longer period.


  • Reporting of transportation allowances may be straightforward and simple or may be quite complex. In some cases, lessees may transport coal from point-to-point using a single mode of transportation such as truck, rail system, conveyor belt, pipeline, slurry-line, barge, or ship. In other instances, lessees may transport coal over several segments of a route using multiple transport methods during the same trip. Reporting can be further complicated through the use of combinations of lessee-owned transport systems and other systems under non-arm’s-length contracts and/or arm’s-length contracts, or both. Lessees must consider each segment separately and evaluate each one for the reasonableness of costs.


Geothermal Resources


This ICR also covers some of the information collections for geothermal resources, which ONRR groups by usage (electrical generation, direct use, and byproduct recovery), and by disposition of the resources [arm’s-length (unaffiliated) contract sales, non-arm’s-length contract sales, and no contract sales] within each use group.


ONRR relies primarily on data that payors report on form ONRR-2014 for the majority of our business processes, including geothermal information. In addition to using the data to account for royalties that payors report, ONRR uses the data for monthly distribution of mineral revenues and audit and compliance reviews.


3. Describe whether, and to what extent, the collection of information involves the use of automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, e.g., permitting electronic submission of responses, and the basis for the decision for adopting this means of collection. Also describe any consideration of using information technology to reduce burden and specifically how this collection meets GPEA requirements.


ONRR provides software enabling reporters to complete form ONRR-4430 and submit encrypted and authenticated reports over the Internet. Reporters may submit all other data, including the facility data, contract and subsequent amendments, and form ONRR-4440 to ONRR as attachments to emails. ONRR encourages electronic submission; however, ONRR permits hardcopy submissions. ONRR estimates that 95 percent of respondents would submit form ONRR-4430 electronically.


The allowance forms ONRR-4292 and ONRR-4293 are not automated because ONRR receives only a few submissions each year. Designing a computer system to process such a limited number of forms is not cost effective for either the respondent or the Federal government. ONRR has these available at http://www.onrr.gov/ReportPay/solids.htm#forms. ONRR accepts submission of allowance forms as an email attachment. ONRR estimates 50 percent of respondents may submit allowance forms electronically (ONRR has only two to four respondents annually).


ONRR collects most geothermal information electronically on form ONRR-2014 and covers the burden hours under OMB Control Number 1012-0004. However, the estimated burden hours for geothermal resources in this ICR include industry’s written submissions to ONRR requesting approvals or clarifications of valuation reporting specifications. ONRR estimates 50 percent of respondents may submit these requests electronically.


4. Describe efforts to identify duplication. Show specifically why any similar information already available cannot be used or modified for use for the purposes described in Item 2 above.


This information is not available from any other source, nor is there any other Federal government agency currently collecting similar information for other purposes that could serve our needs.


ONRR shares the information it collects with BLM and BIA offices, as agreed in the Memorandum of Understanding (MOU), which effectively avoids duplication of regulations and reporting requirements. ONRR and BLM coordinate to identify information that each agency collects. ONRR consults with various BLM offices to ensure that the reporter’s burden is minimized and not duplicated.


In most cases, the geothermal information that ONRR collects is unique and site-specific to each operation. ONRR found that no other Federal or State agency collects the same or similar information. In fact, ONRR and BLM make every effort to avoid duplication of information collection. For example, BLM is responsible for collecting geothermal production data and for sharing that data with ONRR. Conversely, ONRR collects geothermal royalty data and shares that information with BLM.



5. If the collection of information impacts small businesses or other small entities, describe any methods used to minimize burden.


ONRR determined that this collection of information has an insignificant economic effect on small entities. However, this collection does impact small entities. ONRR carefully analyzed its requirements to ensure that the information requested is the minimum necessary and places the least possible burden on industry. ONRR has a long-standing policy to restrict the amount of information collected to the minimum necessary to accomplish our mission and fulfill our responsibilities.


Respondents, including small businesses or other small entities, have the flexibility to submit information to us electronically or in hardcopy. ONRR works directly with small companies that report by hardcopy to establish accounts and provide reporting guidance.


ONRR provides (1) training, free of charge, to entities in various geographic areas; (2) onsite instruction as needed to give firsthand explanations of reporting requirements; and (3) individual instructions on how to report this information to ONRR. ONRR encourages all solid minerals reporters to contact us to better familiarize themselves with the reporting requirements.


6. Describe the consequence to Federal program or policy activities if the collection is not conducted or is conducted less frequently, as well as any technical or legal obstacles to reducing burden.


Collecting this information allows ONRR to fulfill its mission in a timely manner. The collection of facility data, contracts, contract amendments, and sales summaries from respondents is necessary for our compliance process. Through analysis of this information, ONRR determines whether the lessee properly valued the products for royalty purposes. Particularly of interest are provisions for compensation that might be overlooked as a portion of gross proceeds. Without the ability to review this information, ONRR could not ensure proper product valuation.


Our goal is to disburse 98 percent of mineral revenues to recipients by the end of the month following the month of receipt, as stipulated in ONRR’s regulations. This information collection allows ONRR to perform financial and accounting activities to meet this goal. The Federal government must pay interest on any late disbursements.


Our goal also is to complete all compliance work, including audits, within three years from the date that the royalty payment was received or due, whichever is earlier. ONRR performs compliance activities to meet this mandate, using the information collected. The Audit Management Program’s (AMP) expertise relies on the premise of receiving relevant data on time. In other words, AMP cannot resolve compliance issues in contemporaneous fashion unless they can identify issues early in the royalty cycle.


Royalty valuation issues may include, but are not limited to, the following: (1) the sale of production to affiliated companies; (2) improper deductions from proceeds that a lessee receives; and (3) other issues such as reviewing compensation that a lessee receives for a wide variety of reasons, such as breach of contract. ONRR must review the lessee’s normal business arrangements and evaluate those arrangements. ONRR uses sales contracts and other market data to establish an expected basis for evaluation of the reasonableness of the reported royalty payment.


The AMP subject matter experts target royalty exceptions for resolution through AMP’s process of establishing expected payments versus actual payments and collecting the supporting data. Companies have commented that they benefit from a shortened compliance time period. Companies agreed that records necessary to resolve compliance issues identified in the near term are more easily recovered. Moreover, personnel associated with the business arrangement, under review, are still employees of the company. If the issue is resolved in the Federal government’s favor, lesser late-payment interest is due from the company.


7. Explain any special circumstances that would cause an information collection to be conducted in a manner:


* requiring respondents to report information to the agency more often than quarterly;


Title 30 CFR parts 1202, 1206, 1210, 1212, 1217, and 1218 and most leases require that respondents submit monthly royalty and production reports for solid minerals and geothermal resources. Therefore, ONRR must collect the information monthly to verify the monthly royalty payments.


Respondents—Indian lessees—must submit (1) form ONRR-4292 annually if claiming a coal washing allowance (§§ 1206.470 and 1206.471) and (2) form ONRR-4293 occasionally if claiming a coal transportation allowance (§§ 1206.463 and 1206.464). However, respondents may submit allowance forms more often than quarterly if coal washing, or coal transportation, costs increase or decrease sufficiently to require a recalculation of the unit cost.


For a value determination of any geothermal resources (§ 1206.364), respondents must submit to ONRR, on occasion and as necessary, their relevant documents and a list of all involved leases, all respective owners of interest and respective operator(s) for those leases.


* requiring respondents to prepare a written response to a collection of information in fewer than 30 days after receipt of it.


There are no special circumstances with respect to 5 CFR 1220.5(d)(2)(ii).


* requiring respondents to submit more than an original and two copies of any document.


There are no special circumstances with respect to 5 CFR 1220.5(d)(2)(iii).


* requiring respondents to retain records, other than health, medical, government contract, grant-in-aid, or tax records, for more than three years.


When an audit or investigation is underway and if notified in writing, title 30 CFR 1212.200 and 1212.351 require solid minerals and geothermal leaseholders to maintain records for six years or for longer periods. The leaseholders must maintain records until ONRR releases them by a written notice.


Under 30 U.S.C. 1713(b), the leaseholders must maintain Indian oil and gas records for six years after the records are generated unless the Secretary notifies them that they must maintain these such records for a longer period due to an ongoing audit or investigation.


* in connection with a statistical survey, that is not designed to produce valid and reliable results, that can be generalized to the universe of study.


There are no special circumstances with respect to 5 CFR 1220.5(d)(2)(v).


* requiring the use of a statistical data classification that OMB has not reviewed and approved.


There are no special circumstances with respect to 5 CFR 1320.5(d)(2)(vi), as the collection is not a statistical survey and does not use statistical data classification


* that includes a pledge of confidentiality that is not supported by authority established in statute or regulation, that is not supported by disclosure and data security policies that are consistent with the pledge, or which unnecessarily impedes sharing of data with other agencies for compatible confidential use.


There are no special circumstances with respect to 5 CFR 1320.5(d)(2)(vii) as this collection does not include a pledge of confidentiality not supported by statute or regulation.


* requiring respondents to submit proprietary trade secrets, or other confidential information, unless the agency can demonstrate that it has instituted procedures to protect the information's confidentiality to the extent permitted by law.


Respondents are required to provide confidential/proprietary information to ONRR on forms ONRR-4430, ONRR-4292, ONRR-4293, and ONRR-4440; including facility data, contract, subsequent contract amendments, and allowance reporting. However, regulations at 30 CFR 1210.207 provide that proprietary trade secrets or other confidential information submitted under part 1210 shall not be available for public inspection, or made public, or disclosed, without the consent of the lessee, except as otherwise provided by law or regulation. Standard agency procedures provide strict security measures to control the use, storage, and access to such information. ONRR protects this collected information under the standards identified in Item 10 below.


8. If applicable, provide a copy and identify the date and page number of publication in the Federal Register of the agency's notice, required by 5 CFR 1320.8(d), soliciting comments on the information collection prior to submission to OMB. Summarize public comments received in response to that notice and in response to the PRA statement associated with the collection over the past three years, and describe actions taken by the agency in response to these comments. Specifically address comments received on cost and hour burden.


Describe efforts to consult with persons outside the agency to obtain their views on the availability of data, frequency of collection, the clarity of instructions and recordkeeping, disclosure, or reporting format (if any), and on the data elements to be recorded, disclosed, or reported. Consultation with representatives of those from whom information is to be obtained or those who must compile records should occur at least once every three years — even if the collection of information activity is the same as in prior periods. There may be circumstances that may preclude consultation in a specific situation. These circumstances should be explained.


As required in 5 CFR 1320.8(d), ONRR published a 60-Day Notice in the Federal Register on April 13, 2022 (87 FR 21921). ONRR received no comments in response to the Federal Register notice available at www.regulations.gov.


During the 60-day review period, ONRR reached out to seven companies impacted by this ICR by requesting input regarding the burden hour estimates and the clarity of the regulations requiring this collection of information. The companies that responded are as follows:


Contacts made / comments received:


1. Company: Mesa Verde Humates


Comment: I have read the 60-day Federal Register Notice and I agree with the content of this Information Collection Request. Please let me know if you have any other questions. Thank you!


ONRR Response: We have received your comment and will consider your comment regarding the information collection request. Thank you for taking the time to respond. 


2. Company: American Consolidated Natural Resources, Inc.

Comment: I read this Information Collection Request and agree with the content of this information.  I ask ONRR to withhold my personal identifying information from public review. 

ONRR Response: We have received your comment and will consider your comment regarding the information collection request. Thank you for taking the time to respond. 


3. Company: Westmoreland Mining

Comment: I agree with the content of this Information Collection Request.


ONRR Response: We have received your comment and will consider your comment regarding the information collection request. Thank you for taking the time to respond. 


4. Company: Intrepid Potash

First Comment: The form ONRR-4440A is overly burdensome to companies due to the collection of customer names. No form like this exists in the oil and gas world and I question why ONRR needs to know specific customers that are being sold to.


Second Comment: ONRR estimates seem low and may be skewed by companies with less complex business models than Intrepid. A coal producer that only has one product will have a much easier time in royalty reporting than Intrepid which has multiple products. For companies such as Intrepid which have multiple locations and multiple products, a loader for the P&R report which could amend multiple months and products at a time would be highly valuable.

 

Third Comment: A loader would reduce manual input errors resulting in higher quality information. The form 4430 should allow for negative adjustments to account for events such as surveys. Currently ONRR dictates what kind of product names a company may use in its royalty reporting. It would be valuable to ONRR to allow a company to dictate its own products so there is not a disconnect between the P&R report and the company’s own records. Creating this disconnect creates many questions such as whether a FIFO methodology should be performed at the ONRR product code level or at the company product code level. ONRR also creates a disconnect between the company’s records and ONRR records by not allowing the creation of multiple off-site sales locations. This creates questions on whether ONRR views all offsite locations as a single location which would have a material impact on a company’s royalty reporting. Allowing for multiple off-site locations would only be valuable if a loader could be created for the form 4430, otherwise, the multiple off-site locations would just cause more input work and increased error because of it.  


Fourth Comment: As mentioned previously, a loader would be helpful as it would greatly reduce the time needed to do initial reporting as well as amendments.


ONRR Response: We have received your comment and will consider your comment regarding the information collection request. Thank you for taking the time to respond. 



5. Company: Wolverine Fuels

Comment: I agree with the content of this Information Collection Request.


ONRR Response: We have received your comment and will consider your comment regarding the information collection request. Thank you for taking the time to respond. 


6. Company: Arch Land LLC

Comment: I agree with the content of this Information Collection Request.


ONRR Response: We have received your comment and will consider your comment regarding the information collection request. Thank you for taking the time to respond. 


ONRR accepts comments at any time on the information collection and the burden hours.

ONRR also maintains regular, ongoing contact with companies. ONRR provides a toll-free telephone assistance and encourages customer feedback as it responds to questions regarding requirements. ONRR addresses issues as they come up and continually improves its processes.


9. Explain any decision to provide any payment or gift to respondents, other than remuneration of contractors or grantees.


ONRR will not provide any payment or gift to respondents in this collection.


10. Describe any assurance of confidentiality provided to respondents and the basis for the assurance in statute, regulation, or agency policy.


Companies may provide proprietary commercial or financial information, relating to minerals that they removed from Federal and Indian leases, to ONRR. If ONRR receives this type of information, the FOGRMA, as amended (30 U.S.C. 1733), the Freedom of Information Act (5 U.S.C. 552(b)(4)), and its implementing regulations (43 CFR part 2) establish standards to protect trade secrets and other proprietary information.


The Department shall also hold as privileged and proprietary all information in its possession related to Indian mineral agreements under the Indian Mineral Development Act of 1982 (25 U.S.C. 2103). In addition, ONRR has strict security measures in place for storage of and access to proprietary information.


11. Provide additional justification for any questions of a sensitive nature, such as sexual behavior and attitudes, religious beliefs, and other matters that are commonly considered private. This justification should include the reasons why the agency considers the questions necessary, the specific uses to be made of the information, the explanation to be given to persons from whom the information is requested, and any steps to be taken to obtain their consent.


This information collection does not have any sensitive or private questions.


12. Provide estimates of the hour burden of the collection of information. The statement should:


* Indicate the number of respondents, frequency of response, annual hour burden, and an explanation of how the burden was estimated. Unless directed to do so, agencies should not conduct special surveys to obtain information on which to base hour burden estimates. Consultation with a sample (fewer than 10) of potential respondents is desirable. If the hour burden on respondents is expected to vary widely because of differences in activity, size, or complexity, show the range of estimated hour burden, and explain the reasons for the variance. Generally, estimates should not include burden hours for customary and usual business practices.


ONRR estimates approximately 100 Federal and Indian reporters; each reporter may submit reports from their different operational locations several times each year. Reporters may also submit the required information monthly, annually, and on occasion (see charts below for breakout of data by form and by information collection). Based on current data, ONRR estimates the average number of annual responses is 8,341, and the annual reporting burden to industry is 3,367 hours, including recordkeeping. The burden estimates include the time for the following:


  • Reviewing instructions

  • Searching existing data sources

  • Gathering and maintaining the data needed

  • Completing and reviewing the collection of information


Note: ONRR did not include in the estimates certain requirements performed in the normal course of business and considered usual and customary.


* If this request for approval covers more than one form, provide separate hour burden estimates for each form and aggregate the hour burdens.


Form Number

Reference

30 CFR

Annual

Responses

Annual

Burden Hours

ONRR-4292,

Coal Washing


1206.467(a)(2), 1206.469(h)(1), 1206.470(d)(1), 1206.471(c)(1)]


5

8

ONRR-4293,

Coal Transportation


1206.460(a)(2), 1206.461(c)(1), 1206.462(h)(1), 1206.464(c)(1) & (e), 1206.464(c)(3)(i) & (ii)


6

7

ONRR-4430,

Production & Report


[1206.258(a),

1206.262,

1206.263(a),

1206.264,

1206.268(c)(1) & (2),

1206.269(h)(1),

1206.270(a),

1206.271(a),

1206.451(a) & (b),

1206.455,

1206.458(a),

1210.201,

1210.203,

1218.201,

1218.203]


3,270

1,488

ONRR 4440,

Solid Minerals Sales Summary


1210.202


500

500



* Provide estimates of annualized cost to respondents for the hour burdens for collections of information, identifying and using appropriate wage rate categories. The cost of contracting out or paying outside parties for information collection activities should not be included here.


Summary of Information Collections


Information Collections (and 30 CFR References*)

Requirement to Respond

Frequency of Response

Number of Annual Responses

Annual Burden Hours

Annual Cost ($57/hr)1

1. Reporting Forms:

  • Form ONRR-4430, Solid Minerals Production and Royalty Report,

  • Associated Data (facility data)

[1206.258(a), 1206.262, 1206.263(a), 1206.264, 1206.268(c)(1) & (2), 1206.269(h)(1), 1206.270(a), 1206.271(a), 1206.451(a) & (b), 1206.455, 1206.456, 1206.458(a), 1210.201, 1210.203, 1210.204, 1218.201, 1218.203]


  • Form ONRR-4440, Solid Minerals Sales Summary

[1210.202]


Mandatory

















Mandatory

Monthly

















Monthly

3,500

















500

1,477

















500

$84,189

















$28,500


2. Allowance Forms:

  • Form ONRR-4292, Coal Washing Allowance Report

[1206.458, 1206.461, 1206.463, 1206.464],


  • Form ONRR-4293, Coal Transportation Allowance Report

[1206.460(a)(2), 1206.461(c)(1), 1206.462(h)(1), 1206.464(c)(1) & (e), 1206.464(c)(3)(i) & (ii)]


Required to obtain a benefit

Annually and on occasion


5








6



8








7



$456








$399


3. Geothermal Resources

[1206.353(g), 1206.354(b)(1)(ii), 1206.354(g), 1206.356(a)(3), 1206.356(c), 1206.359(g), 1206.364(a)(1); 1210.352; 1218.306(a)(2)]


Mandatory

On occasion

48

62

$3,534

4. Recordkeeping

[1206.251(a),(b) & (d), 1206.253(g)(1), 1206.453(g)(1); 1212.200(a)]


Mandatory

As requested

4,282

1,313

$74,841

TOTAL

8,341

3,367

$191,919



1ONRR base cost estimates on the expectation that an accountant will perform all work. See calculations for hourly costs for industry accountants below.

*See chart below for complete listing of citations for this ICR.


ONRR expects that an industry accountant will perform all the work. ONRR estimates the total annual reporting burden is 3,367 hours. ONRR used the Bureau of Labor Statistics (BLS) National Occupational Employment and Wage Estimates (available at http://www.bls.gov/oes/current/oes132011.htm) to estimate the hourly cost for industry accountants in various United States locations. ONRR used a multiplier of 1.4 for benefits, based on this information; ONRR estimates the hourly cost for an industry accountant would be $57, calculated as follows:


$40.37 [mean hourly wage] x 1.4 [benefits cost factor] = $56.52 [rounded to $57/hr.]


ONRR estimate the total annual cost to industry is $191,919 as follows:


3,367 hours [reporting hours] x $57 [for industry accountants] = $191,919.


The estimated completion time per response is 24.22 minutes. The average completion time is calculated by first multiplying the estimated annual burden hours (3,367) by 60 minutes to obtain the total annual burden minutes (202,020). Then the total annual burden minutes (202,020) is divided by the estimated annual responses (8,341).

The following chart shows the estimated burden hours by CFR section and paragraph:


Respondents’ Estimated Annual Burden Hours


Citation 30 CFR

Reporting and Recordkeeping Requirement

Hour Burden

Average No. Annual Responses

Annual Burden Hours



Part 1202—Royalties

Subpart H—Geothermal Resources



1202.351

(b)(3)

Pay royalties on used, sold, or otherwise finally disposed of byproducts.

Hour burden covered under OMB Control Number 1012-0004.



1202.353

(a), (b), (c), and (d)

Report on Form ONRR-2014, royalties or direct use fee due for geothermal resources, byproduct quantity, and commercially demineralized water quantity.

Hour burden covered under OMB Control Number 1012-0004.

See §1210.52.



1202.353

(e)

Maintain quality measurements for audits.

AUDIT PROCESS (See Note)



Part 1206—Product Valuation

Subpart F—Federal Coal



1206.253

(c);

1206.254; and

1206.257

(d)(1)

Maintain accurate records for Federal lease coal and all data relevant to the royalty value determination. Report the coal quantity information on appropriate forms under 30 CFR part 1210.

0.4166

816

340



1206.257

(b)(1), (b)(3), (b)(4), and (d)(2)

Demonstrate and certify your arm’s-length contract provisions including all consideration paid by buyer, directly or indirectly, for coal production. Provide written information of reported arm’s-length coal sales value and quantity data.

AUDIT PROCESS

See Note.



1206.257

(d)(3)

Submit a one-time notification when first reporting royalties on Form ONRR-4430 and for a change in method.

2

2

4



1206.257

(f)

Submit all available data relevant to the value determination proposal.

5

2

10



1206.257

(i)

Write and sign contract revisions or amendments by all parties to an arm's-length contract, and retroactively apply revisions or amendments to royalty value for a period not to exceed two years.

2

3

6



1206.259

(a)(1) and (a)(3)

Demonstrate that your contract is arm’s length. Provide written information justifying the lessee's washing costs.

AUDIT PROCESS (See Note)



1206.259

(a)(1)

Report actual washing allowance on Form ONRR-4430 for arm’s-length sales.

0.34

12

4



1206.259

(b)(1)

Report actual washing allowance on Form ONRR-4430 for non-arm’s-length or no contract sales.

0.75

48

36



1206.259

(b)(2)(iv)

Report washing allowance on Form ONRR-4430 after lessee elects either method for a wash plant.

1

3

3



1206.259

(b)(2)(iv)

(A)

Report washing allowance on Form ONRR-4430 for depreciation—use either straight-line or a unit of production method.

1

3

3



1206.259

(c)(1)(ii) and (c)(2)(iii)

Submit arm’s-length and non-arm’s-length washing contracts and related documents to ONRR.

AUDIT PROCESS (See Note)



1206.262

(a)(1)

Report transportation allowance on Form ONRR-4430.

0.333

144

48



1206.262

(a)(1) and (a)(3)

Demonstrate that your contract is arm’s length. Provide written information justifying your transportation costs when ONRR determines the costs are unreasonable.

AUDIT PROCESS (See Note)



1206.262

(b)(1)

Report actual transportation allowance on Form ONRR-4430 for non-arm’s-length or no contract sales.

0.75

12

9



1206.262

(b)(2)(iv)

Report transportation allowance on Form ONRR-4430 after lessee elects either method for a transportation system.

1

3

3



1206.262

(b)(2)(iv)

(A)

Report transportation allowance on Form ONRR-4430 for depreciation—use either straight-line or a unit of production method.

1

3

3



1206.262

(b)(3)

Apply to ONRR for exception from the requirement of computing actual costs.

1

3

3



1206.262

(c)(1)(ii) and (c)(2)(iii)

Submit all arm’s-length transportation contracts, production agreements, operating agreements, and related documents to ONRR.

AUDIT PROCESS (See Note)



1206.264

Propose the value of coal for royalty purposes to ONRR for an ad valorem Federal coal lease.

1

1

1



1206.265

Notify ONRR if, prior to use, sale, or other disposition, you enhanced the value of coal.

1

1

1



Subpart H—Geothermal Resources



1206.352

(b)(1)(ii)

Determine the royalty on produced geothermal resources, used in your power plant for generation and sale of electricity, for Class I leases, as approved by ONRR.

Hour burden covered under OMB Control Number 1012-0004.



1206.353

(c)(2)(i)

(A),

(d)(9), and (e)(4)

Include a return on capital you invested when the purchase of real estate for transmission facilities is necessary. Allowable operating and maintenance expenses include other directly allocable and attributable operating and maintenance expenses that you can document.

AUDIT PROCESS (See Note)



1206.353

(g)

Request change to other depreciation alternative method with ONRR approval.

1

1

1



1206.353

(h)(1) and

(m)(2)

Use a straight-line depreciation method, but not below salvage value, for equipment.


Amend your prior estimated Form ONRR-2014 reports to reflect actual transmission cost deductions and pay any additional royalties due plus interest.

Hour burden covered under OMB Control Number 1012-0004.



1206.353

(n)

Submit all arm’s-length transmission contracts, production and operating agreements and related documents, and other data for calculating the deduction.

AUDIT PROCESS (See Note)



1206.354

(b)(1)(ii)

Redetermine your generating cost rate annually and request ONRR approval to use a different deduction period.

1

1

1



1206.354

(c)(2)(i)

(A),

(d)(9), and (e)(4)

Include a return on capital you invested when the purchase of real estate for a power plant site is necessary. Allowable operating and maintenance expenses include other directly allocable and attributable operating and maintenance expenses that you can document.

AUDIT PROCESS (See Note)



1206.354

(g)

Request change to other alternative with ONRR approval.

1

1

1



1206.354

(h) and

(m)(2)

Use a straight-line depreciation method, but not below the salvage value, for equipment.


Amend your prior estimated Form ONRR-2014 reports to reflect actual generating cost deductions and pay any additional royalties due plus interest.

Hour burden covered under OMB Control Number 1012-0004.



1206.354

(n)

Submit all arm’s-length power plant contracts, production and operating agreements and related documents, and other data for calculating the deduction.

AUDIT PROCESS (See Note)



1206.356

(a)(1) and (a)(2)

Determine the royalty on produced significant geothermal resource quantities, for Class I leases, with the weighted average of the arm’s-length gross proceeds used to operate the same direct-use facility;


For Class I leases, the efficiency factor of the alternative energy source will be 0.7 for coal and 0.8 for oil, natural gas, and other fuels derived from oil and natural gas, or an efficiency factor proposed by the lessee and approved by ONRR.

Hour burden covered under OMB Control Number 1012-0004.






1206.356

(a)(3)

For Class I leases, a royalty determined by any other reasonable method approved by ONRR.

1

40

40



1206.356

(b)(3)

Provide ONRR data showing the geothermal production amount, in pounds or gallons of geothermal fluid, to input into the fee schedule for Class III leases.

Hour burden covered under OMB Control Number 1012-0004.




1206.356

(c)

ONRR will determine fees on a case-by-case basis for geothermal resources other than hot water.

1

1

1



1206.357

(b)(3); and

1206.358

(d)

Determine the royalty due on byproducts by any other reasonable valuation method approved by ONRR.


Use a discrete field on Form ONRR-2014 to notify ONRR of a transportation allowance.

Hour burden covered under OMB Control Number 1012-0004.





1206.358

(d)(2) and (e); 1206.359

(a)(1), (a)(2), (c)(2)(i)

(A),

(d)(9), and (e)(4)

Submit arm’s-length transportation contracts for reviews and audits, if ONRR requires.


Pay any additional royalties due plus interest, if you have improperly determined a byproduct transportation allowance.


Provide written information justifying your transportation costs if ONRR requires you to determine the byproduct transportation allowance. Include a return on capital if the purchase was necessary. Allowable operating and maintenance expenses include any other directly allocable and attributable operating and maintenance expenses that you can document.

AUDIT PROCESS (See Note)













1206.359

(g)

The lessee may not later elect to change to the other alternative without ONRR approval to compute costs associated with capital investment.

1

1

1



1206.359

(h)(1) and

(l)(2)

You must use a straight-line depreciation method based on the life of either equipment or geothermal project.


You must amend your prior Form ONRR-2014 reports to reflect actual byproduct transportation cost deductions and pay any additional royalties due plus interest.

Hour burden covered under OMB Control Number 1012-0004.









1206.360

(a)(1), (a)(2), and (b);

1206.361

(a)(1)

Retain all data relevant to the royalty value, or fee you paid. Show how you calculated the royalty value or fee you reported and paid, then submit all data to ONRR upon request.


ONRR may review and audit your data and will direct you to use a different measure, if royalty value, gross proceeds, or fee is inconsistent with subpart.

AUDIT PROCESS (See Note)





1206.361

(a)(2)

Pay either royalties or fees due plus interest if ONRR directs you to use a different royalty value, measure of gross proceeds, or fee.

Hour burden covered under OMB Control Number 1012-0004.



1206.361

(b), (c), and (d)

ONRR may require you to: increase the gross proceeds to reflect any additional consideration; use another valuation method; provide written information justifying your gross proceeds; demonstrate that your contract is arm’s length; and certify that the provisions in your sales contract include all of the consideration the buyer paid you.

AUDIT PROCESS (See Note)



1206.361

(f)(2)

Write and sign contract revisions or amendments by all parties to the contract.

AUDIT PROCESS (See Note)



1206.364

(a)(1)

Request a value determination from ONRR in writing.

12

1

12



1206.364

(c)(2)

Make any adjustments in royalty payments, if you owe additional royalties, and pay the royalties owed plus interest after the Assistant Secretary issues a determination.

Hour burden covered under OMB Control Number 1012-0004.



1206.364

(d)(2)

You may appeal an order requiring you to pay royalty under the determination.

Hour burden covered under OMB Control Number 1012-0006.



1206.366

State, tribal, or local government lessee must pay a nominal fee, if it uses a geothermal resource.

Hour burden covered under OMB Control Number 1012-0004.



Subpart J—Indian Coal



1206.456

(b)(1), (b)(3), and (b)(4)

Demonstrate that your contract is arm’s length. Provide written information justifying the reported coal value. And certify that your arm’s-length contract provisions include all direct or indirect consideration paid by buyer for the coal production.

AUDIT PROCESS (See Note)



1206.456

(d)(1);

1206.452 (c); 1206.453

Retain all data relevant to the determination of royalty value to which individual Indian lease coal should be allocated. Report coal quantity information on Form ONRR-4430, Solid Minerals Production and Royalty Report, as required under 30 CFR part 1210.

0.42

24

10



1206.456

(d)(2)

An Indian lessee will make available arm’s-length sales and sales quantity data for like-quality coal sold, purchased, or otherwise obtained from the area when requested by an authorized ONRR or Indian representative, or the Inspector General of the Department of the Interior or other persons authorized to receive such information.

AUDIT PROCESS (See Note)



1206.456

(d)(3)

Notify ONRR by letter identifying the valuation method used and procedure followed. This is a one-time notification due no later than the month the lessee first reports royalties on the Form ONRR-4430.

1

1

1



1206.456

(f)

Propose a value determination method to ONRR, submit all available data relevant to the method, and use that method until ONRR issues a decision.

1

1

1



1206.456

(i)

Write and sign contract revisions or amendments by all parties to an arm's-length contract.

1

1

1



1206.458

(a)(1),

(b)(1), (c)(1)(i), (c)(1)(iii), (c)(2)(i), and

(c)(2)(iii)

Deduct the reasonable actual coal washing allowance costs incurred under an arm’s-length contract, and allowance based upon their reasonable actual costs under a non-arm’s-length or no contract, after submitting a completed page one of Form ONRR-4292, Coal Washing Allowance Report, containing the actual costs for the previous reporting period, within 3 months after the end of the calendar year after the initial and for succeeding reporting periods, and report deduction on Form ONRR-4430 for an arm’s-length, or a non-arm’s-length, or no contract.

2

1

2



1206.458

(a)(3)

Provide written information justifying your washing costs when ONRR determines that your washing value may be unreasonable.

AUDIT PROCESS (See Note)



1206.458

(b)(2)(iv)

The lessee may not later elect to change to the other alternative without ONRR approval.

1

1

1



1206.458

(b)(2)(iv)

(A)

Elect either a straight-line depreciation method based on the life of equipment or reserves, or a unit of production method.

1

1

1



1206.458

(c)(1)(iv)

and

(c)(2)(vi)

Submit arm’s-length washing contracts and all related data used on Form ONRR-4292.

AUDIT PROCESS (See Note)



1206.461

(a)(1),

(b)(1),

(c)(1)(i),

(c)(1)(iii),

(c)(2)(i),

and

(c)(2)(iii)

Submit a completed page one of Form ONRR-4293, Coal Transportation Allowance Report, of reasonable, actual transportation allowance costs incurred by the lessee for transporting the coal under an arm’s-length contract, in which you may claim a transportation allowance retroactively for a period of not more than 3 months prior to the first day of the month that you filed the form with ONRR, unless ONRR approves a longer period upon a showing of good cause by the lessee. Submit also a completed Form ONRR-4293 based upon the lessee’s reasonable actual costs under a non-arm’s-length or no contract. (Emphasis added.)

2

1

2



1206.461

(a)(3)

Provide written information justifying your transportation costs when ONRR determines that your transportation value may be unreasonable.

AUDIT PROCESS (See Note)



1206.461

(b)(2)(iv)

Submit completed Form ONRR-4293 after a lessee has elected to use either method for a transportation system.

1

1

1



1206.461

(b)(2)(iv)

(A)

Submit completed Form ONRR-4293 to compute depreciation for election to use either a straight-line depreciation or unit-of-production method.

1

1

1



1206.461

(b)(3)

Submit completed Form ONRR-4293 for exception from the requirement of computing actual costs.

1

1

1



1206.461

(c)(1)(iv) and

(c)(2)(vi)

Submit arm’s-length transportation contracts, production and operating agreements, and related documents used on Form ONRR-4293.

AUDIT PROCESS (See Note)



1206.463

Propose the value of coal for royalty purposes to ONRR for an ad valorem Federal coal lease.

1

1

1



1206.464

Notify ONRR if, prior to use, sale or other disposition, you enhance the value of coal.

1

1

1



Part 1210—Forms and Reports

Subpart E—Solid Minerals, General


Part 210, Subpart E—Solid Minerals, General

1210.201

(a)(1);

1206.259

(c)(1)(i), (c)(2), (e)(2);

1206.262

(c)(1), (c)(2)(i), (e)(2);

1206.458

(c)(4), (e)(2);

1206.461

(c)(4), (e)(2)

Submit a completed Form ONRR-4430. Report washing and transportation allowances as a separate field on Form ONRR-4430 for arm’s-length, non-arm’s-length, or no contract sales, unless ONRR approves a different reporting procedure. Submit also a corrected Form ONRR-4430 to reflect actual costs, together with any payment, in accordance with instructions provided by ONRR.

0.75

1,440

1,080



1210.202

(a)(1) and (c)(1)

Submit sales summaries (using form ONRR-4440) via electronic mail where possible for all coal and other solid minerals produced from Federal and Indian leases and for any remote storage site.

1

500

500



1210.203

(a)

Submit sales contracts, agreements, and contract amendments for sale of all coal and other solid minerals produced from Federal and Indian leases with ad valorem royalty terms.

1

300

300



1210.204

(a)(1)

Submit facility data if you operate a wash plant, refining, ore concentration, or other processing facility for any coal, sodium, potassium, metals, or other solid minerals produced from Federal or Indian leases with ad valorem royalty terms.

0.5

130

65



1210.205

(a) and (b)

Submit detailed statements, documents, or other evidence necessary to verify compliance, as requested.

AUDIT PROCESS (See Note)



Subpart H—Geothermal Resources


Part 210, Subpart H—Geothermal Resources

1210.351

Maintain geothermal records on microfilm, microfiche, or other recorded media.

Hour burden covered under OMB Control Number 1012-0004.



1210.352

Submit additional geothermal information on special forms or reports.

1

1

1



1210.353

Submit completed Form ONRR-2014 monthly once sales or utilization of geothermal production occur.

Hour burden covered under OMB Control Number 1012-0004.



Part 1212—Records and Forms Maintenance

Subpart E—Solid Minerals—General


Part 218, Subpart B—Oil and Gas, General

1212.200

(a)

Maintain all records pertaining to Federal and Indian solid minerals leases for 6 years after records are generated unless the record holder is notified, in writing.

0.25

3462

866



Subpart H—Geothermal Resources



1212.351

(a) and

(b)

Retain accurate and complete records necessary to demonstrate that payments of royalties, rentals, and other amounts due under Federal geothermal leases are in compliance with laws, lease terms, regulations, and orders.


Maintain all records pertaining to Federal geothermal leases for 6 years after the records are generated unless the record holder is notified in writing.

Hour burden covered under OMB Control Numbers 1012-0004.



Part 1217—Audits and Inspections

Subpart E—Coal



1217.200

Furnish, free of charge, duplicate copies of audit reports that express opinions on such compliance with Federal lease terms relating to Federal royalties as directed by the Director for the Office of Natural Resources Revenue.

AUDIT PROCESS (See Note)



Subpart F—Other Solid Minerals



1217.250

Furnish, free of charge, duplicate copies of annual or other audits of your books.

AUDIT PROCESS (See Note)



Subpart G—Geothermal Resources



1217.300

The Secretary, or his/her authorized representative, will initiate and conduct audits or reviews that relate to compliance with applicable regulations.

AUDIT PROCESS (See Note)



Part 1218—Collection of Monies AND PROVISION

FOR GEOTHERMAL CREDITS AND INCENTIVES

Subpart E—Solid Minerals—General



1218.201

(b);

1206.457

(b);

1206.460

(d)

You must tender all payments under §1218.51 except for Form ONRR-4430 payments, include both your customer identification and your customer document identification numbers on your payment document, and you shall be liable for any additional royalties, plus interest, if you improperly determined a washing or transportation allowance.

0.0055

1,368

8



1218.203

(a) and (b)

Recoup an overpayment on Indian mineral leases through a recoupment on Form ONRR-4430 against the current month’s royalties and submit the tribe’s written permission to ONRR.

1

1

1



Subpart F—Geothermal Resources



1218.300;

1218.301;

1218.304;

1218.305

(a)

Submit all rental and deferred bonus payments when due and pay in value all royalties due determined by ONRR.

The payor shall tender all payments.

Pay the direct use fees in addition to the annual rental due.

Pay advanced royalties, under 43 CFR 3212.15(a)(1) to retain your lease, that equal to the average monthly royalty you paid under 30 CFR part 1206, subpart H.

Hour burden covered under OMB Control Number 1012-0004.



1218.306

(a)(2)

You may receive a credit against royalties if ONRR approves in advance your contract.

4

1

4



1218.306

(b)

Pay in money any royalty amount that is not offset by the credit allowed under this section.

Hour burden covered under OMB Control Number 1012-0004.



TOTAL BURDEN

8,341

3,367





13. Provide an estimate of the total annual non-hour cost burden to respondents or recordkeepers resulting from the collection of information. (Do not include the cost of any hour burden already reflected in item 12 and 14.)

* The cost estimate should be split into two components: (a) a total capital and start-up cost component (annualized over its expected useful life) and (b) a total operation and maintenance and purchase of services component. The estimates should take into account costs associated with generating, maintaining, and disclosing or providing the information (including filing fees paid for form processing). Include descriptions of methods used to estimate major cost factors including system and technology acquisition, expected useful life of capital equipment, the discount rate(s), and the time period over which costs will be incurred. Capital and start-up costs include, among other items, preparations for collecting information such as purchasing computers and software; monitoring, sampling, drilling and testing equipment; and record storage facilities.


* If cost estimates are expected to vary widely, agencies should present ranges of cost burdens and explain the reasons for the variance. The cost of purchasing or contracting out information collection services should be a part of this cost burden estimate. In developing cost burden estimates, agencies may consult with a sample of respondents (fewer than 10), utilize the 60-day pre-OMB submission public comment process and use existing economic or regulatory impact analysis associated with the rulemaking containing the information collection, as appropriate.

* Generally, estimates should not include purchases of equipment or services, or portions thereof, made: (1) prior to October 1, 1995, (2) to achieve regulatory compliance with requirements not associated with the information collection, (3) for reasons other than to provide information or keep records for the government, or (4) as part of customary and usual business or private practices.


ONRR has identified no “non-hour” cost burdens for this collection of information.


14. Provide estimates of annualized cost to the Federal Government. Also, provide a description of the method used to estimate cost, which should include quantification of hours, operational expenses (such as equipment, overhead, printing, and support staff), and any other expense that would not have been incurred without this collection of information.


ONRR estimates the annualized cost to the Federal government is $255,892 [$76 per hour x 3,367 hours = $255,892].


ONRR estimates approximately 100 respondents annually; each reporter may submit reports from their different operational locations several times each year. Reporters may also submit the required information monthly, annually, and on occasion. ONRR estimates that the total annual reporting burden for industry is 3,367 hours, and that the Federal government will require 1 hour of a government accountant’s time for each burden hour for industry to complete all data gathering requirements and to analyze forms ONRR-4430, ONRR-4292, ONRR-4293, and ONRR 4440, occasional notifications, letter proposals, award claim filings, and other related information.


ONRR expects that a government accountant will perform the work at the United States 2022 General Schedule, Grade 12/Step 5, pay scale for the Denver, Colorado area. The 2022 salary tables for the Denver, Colorado, area are located at https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/22Tables/html/DEN_h.aspx. ONRR added a multiplier of 1.6 [based on BLS News Release USDL-21-0126 dated April 29, 2022, at https://www.bls.gov/news.release/eci.nr0.htm] for benefits. Based on this information, ONRR estimated the hourly cost for a Federal government accountant to perform the work will be $76, calculated as follows: ONRR used a multiplier of 1.6 for benefits. ONRR estimates the hourly labor cost is $76 ($47.51 per hour x 1.6 benefit cost factor = $76.02, rounded to $76).



15. Explain the reasons for any program changes or adjustments in hour or cost burden.


Currently Approved

OMB Burden Hour Inventory

Program Change

Estimated

Burden Hours

Adjustment Change

Estimated

Burden Hours

Total

Estimated

Burden Hours

3,871

0

-504

3,367


There is no program change for this information collection. However, there is an adjustment decrease of 504 burden hours.


The specific burden hour changes are as follows:


Citation

30 CFR part 1206

Adjustment

Increase(+)/Decrease(-)

Of Burden Hours

1206.257(d)(3)

-2

1206.262(a)(1)

-32

1206.262(b)(1)

-9

1206.456(d)(1); 1206.452(c); 1206.453

-10

1210.201

(a)(1); 1206.259 (c)(1)(i), (c)(2), (e)(2); 1206.262 (c)(1), (c)(2)(i), (e)(2); 1206.458(c)(4), (e)(2);

1206.461(c)(4), (e)(2)

-171

1210.202(a)(1) and (c)(1)

-400

1210.203(a)

+270

1212.200(a)

-150

Total

-504


16. For collections of information whose results will be published, outline plans for tabulation and publication. Address any complex analytical techniques that will be used. Provide the time schedule for the entire project, including beginning and ending dates of the collection of information, completion of report, publication dates, and other actions.


ONRR will not publish the data.


17. If seeking approval to not display the expiration date for OMB approval of the information collection, explain the reasons that display would be inappropriate.


ONRR will display the OMB approval expiration date on forms ONRR-4430, ONRR-4292, ONRR-4293, and ONRR-4440.


18. Explain each exception to the topics of the certification statement identified in "Certification for Paperwork Reduction Act Submissions."


To the extent that the topics apply to this collection of information, ONRR is not making any exceptions to the “Certification for Paperwork Reduction Act Submissions.”


Page 19 of 19


File Typeapplication/vnd.openxmlformats-officedocument.wordprocessingml.document
File TitleSupporting Statement A
Authordjbieniewicz
File Modified0000-00-00
File Created2022-09-20

© 2022 OMB.report | Privacy Policy