Agency Information Collection Activities: Submitted for Office of Management and Budget Review, Comment Request
Federal Register, Volume 77 Issue 142 (Tuesday, July 24, 2012)
Federal Register Volume 77, Number 142 (Tuesday, July 24, 2012)
Notices
Pages 43355-43365
From the Federal Register Online via the Government Printing Office www.gpo.gov
FR Doc No: 2012-18079
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DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue
Docket No. ONRR-2011-0021
Agency Information Collection Activities: Submitted for Office of Management and Budget Review, Comment Request
AGENCY: Office of Natural Resources Revenue, Interior.
ACTION: Notice of an extension of a currently approved information collection (OMB Control Number 1012-0002).
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SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), the Office of Natural Resources Revenue (ONRR) is notifying the public that we have submitted to the Office of Management and Budget (OMB) an information collection request (ICR) to renew approval of the paperwork requirements in the regulations under 30 CFR parts 1202, 1206, and 1207. This notice also provides the public with a second opportunity to comment on the paperwork burden of these regulatory requirements.
DATES: Submit written comments on or before August 23, 2012.
ADDRESSES: Submit written comments by either FAX (202) 395-5806 or email (OIRA_Docket@omb.eop.gov) directly to the Office of Information and Regulatory Affairs, OMB, Attention: Desk Officer for the Department of the Interior (OMB Control Number 1012-0002).
You may submit a copy of your comments to ONRR by one of the following methods (please use ``ICR 1012-0002'' as an identifier in your comments):
Electronically, go to http://www.regulations.gov. In the ``Search'' box, enter ``ONRR-2011-0021,'' then click ``Search.'' Follow the instructions
Page 43356
to submit public comments. ONRR will post all comments.
Mail comments to Armand Southall, Regulatory Specialist, ONRR, P.O. Box 25165, MS 64000A, Denver, Colorado 80225-0165.
Hand-carry comments, or use an overnight courier service, to the Office of Natural Resources Revenue, Building 85, Room A-614, Denver Federal Center, West 6th Ave. and Kipling St., Denver, Colorado 80225.
FOR FURTHER INFORMATION CONTACT: Armand Southall at (303) 231-3221, or email armand.southall@onrr.gov. You may also contact Mr. Southall to obtain copies, at no cost, of (1) the ICR, (2) any associated forms, and (3) the regulations that require us to collect the information. You may also review the information collection request online at http://www.reginfo.gov/public/do/PRAMain.
SUPPLEMENTARY INFORMATION:
Title: 30 CFR Parts 1202, 1206, and 1207, Indian Oil and Gas Valuation.
OMB Control Number: 1012-0002.
Bureau Form Number: Forms MMS-4109, MMS-4110, MMS-4295, MMS-4410, and MMS-4411.
Note: ONRR will publish a rule updating our form numbers to Forms ONRR-4109, ONRR-4110, ONRR-4295, ONRR-4410, and ONRR-4411.
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). Various laws require the Secretary to manage mineral resource production from Federal and Indian lands and the OCS, collect the royalties and other mineral revenues due, and distribute the collected funds in accordance with applicable laws. The Secretary also has a 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. Public laws pertaining to mineral leases on Federal and Indian lands are available at http://www.onrr.gov/Laws_R_D/PublicLawsAMR.htm.
Information collections that we cover in this ICR are available at 30 CFR part 1202, subparts C and J, which pertain to royalties; part 1206, subparts B and E, which govern the valuation of produced oil and gas from leases on Indian lands; and part 1207, which pertains to recordkeeping. Indian Tribes and individual Indian mineral owners receive all royalties that generate 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 that lessees remove 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 reported data is subject to subsequent audit and adjustment.
Indian Oil
Regulations at 30 CFR part 1206, subpart B, govern the valuation, for royalty purposes, of all oil that Indian oil and gas leases (tribal and allotted) produce, except leases on the Osage Indian Reservation, and are consistent with mineral leasing laws, other applicable laws, and lease terms. Generally, the 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. The value that a lessee determines may be eligible for a transportation allowance.
From information collected on Form MMS-4110, Oil Transportation Allowance Report, ONRR and tribal audit personnel evaluate (1) whether lessee-reported transportation allowances are within regulatory allowance limitations and calculated in accordance with applicable regulations; and (2) whether the lessees reported and paid the proper amount of royalties.
Indian Gas
Regulations at 30 CFR part 1206, subpart E, govern the valuation, for royalty purposes, of natural gas that Indian oil and gas leases (tribal and allotted) produce. The regulations apply to all gas production from Indian oil and gas leases, except leases on the Osage Indian Reservation.
Most Indian leases contain the requirement to perform accounting for comparison (dual accounting) for produced gas from the lease. Lessees must elect to perform actual dual accounting, as we define in 30 CFR 1206.176, or alternative dual accounting, as we define in 30 CFR 1206.173. Lessees use Form MMS-4410, Accounting for Comparison Dual Accounting, to certify that dual accounting is not an ONRR requirement on an Indian lease or to make an election for actual or alternative dual accounting for Indian leases.
The regulations require lessees to submit Form MMS-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.
From information collected on Form MMS-4295, Gas Transportation Allowance Report, ONRR and tribal audit personnel evaluate (1) whether lessee-reported transportation allowances are within regulatory allowance limitations and calculated in accordance with applicable regulations; and (2) whether the lessees reported and paid the proper amount of royalties.
From information collected on Form MMS-4109, Gas Processing Allowance Summary Report, ONRR and tribal audit personnel evaluate (1) whether lessee-reported processing allowances are within regulatory allowance limitations and calculated in accordance with applicable regulations; and (2) whether the lessees reported and paid the proper amount of royalty.
Indian Oil and Gas
Lessees must use Form MMS-4393, Request to Exceed Regulatory Allowance Limitation, for both Federal and Indian leases. Most of the burden hours occur on Federal leases; therefore, this is an ONRR-
approved form under ICR 1012-0005, pertaining to Federal oil and gas leases. However, we include a discussion of the 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 MMS-4393. This form provides ONRR with the data necessary to make a decision whether to approve or deny the request and track deductions on royalty reports.
Summary
We are requesting OMB's approval to continue to collect this information. 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 Indian Tribes and individual Indian mineral owners. ONRR protects proprietary information that it receives and does not collect items of a sensitive nature. The requirement to report is mandatory for Form MMS-4410, Accounting for Comparison Dual Accounting, and for Form MMS-4411, Safety Net Report, under certain circumstances. For all other forms in this collection, the
Page 43357
requirement to report is mandatory in order to obtain a benefit.
Frequency of Response: Annually and on occasion.
Estimated Number and Description of Respondents: 148 Indian lessees.
Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 2,269 hours.
We have not included in our estimates certain requirements that occur in the normal course of business and that we consider usual and customary. The following chart shows the estimated burden hours by CFR section and paragraph:
Respondents' Estimated Annual Burden Hours
----------------------------------------------------------------------------------------------------------------
Average number
30 CFR Reporting and recordkeeping Hour burden of annual Annual burden
requirement responses hours
----------------------------------------------------------------------------------------------------------------
PART 1202--ROYALTIES
Subpart C--Federal and Indian Oil
----------------------------------------------------------------------------------------------------------------
1202.101........................... Standards for reporting and Burden covered under OMB Control Number 1012-
paying royalties. 0004. Burden covered under Sec. 1210.52.
Oil volumes are to be
reported in barrels of
clean oil of 42 standard
U.S. gallons (231 cubic
inches each) at 60 degF
* * *.
----------------------------------------------------------------------------------------------------------------
Subpart J--Gas Production From Indian Leases
----------------------------------------------------------------------------------------------------------------
1202.551(b)........................ How do I determine the Burden covered under OMB Control Number 1012-
volume of production for 0004. Burden covered under Sec. 1210.52.
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)........................ (c) You and all other 1 1 1
persons paying royalties
on the lease may ask ONRR
for permission * * * to
report entitlements * * *.
----------------------------------------------------------------------------------------------------------------
1202.558(a) and (b)................ What standards do I use to Burden covered under OMB Control Number 1012-
report and pay royalties 0004. Burden covered under Sec. 1210.52.
on gas?
(a) You must report gas
volumes as follows:.
(b) You must report residue
gas and gas plant product
volumes as follows:.
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Part 1206--PRODUCT VALUATION
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Subpart B--Indian Oil
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1206.56(b)(2)...................... Transportation allowances--
general.
(b)(2) Upon request of a 4 1 4
lessee, 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 MMS-4393,
Request to Exceed
Regulatory Allowance
Limitation) must contain
all relevant and
supporting documentation
necessary for ONRR to make
a determination * * *.
----------------------------------------------------------------------------------------------------------------
1206.57(a)(1)(i)................... Determination of AUDIT PROCESS. See note.
transportation allowances.
(a) Arm's-length
transportation contracts.
(1)(i) * * * The lessee
shall have the burden of
demonstrating that its
contract is arm's-length.
----------------------------------------------------------------------------------------------------------------
1206.57(a)(1)(i)................... (a) Arm's-length Burden covered under Sec. 1206.57(c)(1)(i)
transportation contracts. and (iii).
(1)(i) * * * Before any
deduction may be taken,
the lessee must submit a
completed page one of Form
MMS-4110 (and Schedule 1),
Oil Transportation
Allowance Report * * *.
----------------------------------------------------------------------------------------------------------------
1206.57(a)(1)(iii)................. (a) Arm's-length AUDIT PROCESS. See note.
transportation contracts.
(1)(iii) * * * 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.
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Page 43358
1206.57(a)(2)(i)................... (a) Arm's-length Burden covered under Sec. 1206.57(a)(3).
transportation contracts.
(2)(i) * * * Except as
provided in this
paragraph, no allowance
may be taken for the costs
of transporting lease
production which is not
royalty-bearing without
ONRR approval.
----------------------------------------------------------------------------------------------------------------
1206.57(a)(2)(ii).................. (a) Arm's-length 20 1 20
transportation contracts.
(2)(ii) Notwithstanding the
requirements of paragraph
(i), the lessee may
propose to ONRR a cost
allocation method on the
basis of the values of the
products transported * * *.
----------------------------------------------------------------------------------------------------------------
1206.57(a)(3)...................... (a) Arm's-length 40 1 40
transportation contracts.
(3) 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, the lessee shall
propose an allocation
procedure to ONRR. * * *
The lessee shall submit
all available data to
support its proposal * * *.
----------------------------------------------------------------------------------------------------------------
1206.57(b)(1)...................... (b) Non-arm's-length or no Burden covered under Sec. 1206.57(c)(2)(i)
contract. and (iii).
(1) * * * A transportation
allowance may be claimed
retroactively for a period
of not more than 3 months
prior to the first day of
the month that Form MMS-
4110 is filed with ONRR,
unless ONRR approves a
longer period upon a
showing of good cause by
the lessee * * *.
----------------------------------------------------------------------------------------------------------------
1206.57(b)(1)...................... (b) Non-arm's-length or no Burden covered under OMB Control Number 1012-
contract. 0004. Burden covered under Sec. 1210.52.
(1) * * * When necessary or
appropriate, ONRR may
direct a lessee to modify
its actual transportation
allowance deduction.
----------------------------------------------------------------------------------------------------------------
1206.57(b)(2)(iv).................. (b) Non-arm's-length or no 20 1 20
contract.
(2)(iv) * * * After a
lessee has elected to use
either method for a
transportation system, the
lessee may not later elect
to change to the other
alternative without
approval of ONRR.
----------------------------------------------------------------------------------------------------------------
1206.57(b)(2)(iv)(A)............... (b) Non-arm's-length or no 20 1 20
contract.
(2)(iv)(A) * * * After an
election is made, the
lessee may not change
methods without ONRR
approval * * *.
----------------------------------------------------------------------------------------------------------------
1206.57(b)(3)(i)................... (b) Non-arm's-length or no 40 1 40
contract.
(3)(i) * * * Except as
provided in this
paragraph, the lessee may
not take an allowance for
transporting lease
production which is not
royalty bearing without
ONRR approval.
----------------------------------------------------------------------------------------------------------------
1206.57(b)(3)(ii).................. (b) Non-arm's-length or no 20 1 20
contract.
(3)(ii) Notwithstanding the
requirements of paragraph
(i), the lessee may
propose to ONRR a cost
allocation method on the
basis of the values of the
products transported * * *.
----------------------------------------------------------------------------------------------------------------
1206.57(b)(4)...................... (b) Non-arm's-length or no 20 1 20
contract.
(4) Where both gaseous and
liquid products are
transported through the
same transportation
system, the lessee shall
propose a cost allocation
procedure to ONRR. The
lessee shall submit all
available data to support
its proposal * * *.
----------------------------------------------------------------------------------------------------------------
1206.57(b)(5)...................... (b) Non-arm's-length or no 20 1 20
contract.
(5) A lessee may apply to
ONRR for an exception from
the requirement that it
compute actual costs in
accordance with paragraphs
(b)(1) through (b)(4) of
this section * * *.
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Page 43359
1206.57(c)(1)(i)................... (c) Reporting requirements. 4 1 4
(1) Arm's-length contracts.
(i) With the exception of
those transportation
allowances specified in
paragraphs (c)(1)(v) and
(c)(1)(vi) of this
section, the lessee shall
submit page one of the
initial Form MMS-4110 (and
Schedule 1), Oil
Transportation Allowance
Report, prior to, or at
the same time as, the
transportation allowance
determined, under an arm's-
length contract, is
reported on Form MMS-2014,
Report of Sales and
Royalty Remittance * * *.
----------------------------------------------------------------------------------------------------------------
1206.57(c)(1)(iii)................. (c) Reporting requirements. 4 1 4
(1) Arm's-length contracts.
(iii) After the initial
reporting period and for
succeeding reporting
periods, lessees must
submit page one of Form
MMS-4110 (and Schedule 1)
within 3 months after the
end of the calendar year,
or after the applicable
contract or rate
terminates or is modified
or amended, whichever is
earlier, unless ONRR
approves a longer period
(during which period the
lessee shall continue to
use the allowance from the
previous reporting period).
----------------------------------------------------------------------------------------------------------------
1206.57(c)(1)(iv).................. (c) Reporting requirements. AUDIT PROCESS. See note.
(1) Arm's-length contracts.
(iv) ONRR may require that
a lessee submit arm's-
length transportation
contracts, production
agreements, operating
agreements, and related
documents. Documents shall
be submitted within a
reasonable time, as
determined by ONRR.
----------------------------------------------------------------------------------------------------------------
1206.57(c)(2)(i)................... (c) Reporting requirements. 6 1 6
(2) Non-arm's-length or no
contract.
(i) With the exception of
those transportation
allowances specified in
paragraphs (c)(2)(v),
(c)(2)(vii) and
(c)(2)(viii) of this
section, the lessee shall
submit an initial Form MMS-
4110 prior to, or at the
same time as, the
transportation allowance
determined under a non-
arm's-length contract or
no-contract situation is
reported on Form MMS-2014.
* * * The initial report
may be based upon
estimated costs.
----------------------------------------------------------------------------------------------------------------
1206.57(c)(2)(iii)................. (c) Reporting requirements. 6 1 6
(2) Non-arm's-length or no
contract..
(iii) For calendar-year
reporting periods
succeeding the initial
reporting period, the
lessee shall submit a
completed Form MMS-4110
containing the actual
costs for the previous
reporting period. If oil
transportation is
continuing, the lessee
shall include on Form MMS-
4110 its estimated costs
for the next calendar
year. * * * ONRR must
receive the Form MMS-4110
within 3 months after the
end of the previous
reporting period, unless
ONRR approves a longer
period (during which
period the lessee shall
continue to use the
allowance from the
previous reporting
period).
----------------------------------------------------------------------------------------------------------------
1206.57(c)(2)(iv).................. (c) Reporting requirements. Burden covered under Sec. 1206.57(c)(2)(i).
(2) Non-arm's-length or no
contract..
(iv) For new transportation
facilities or
arrangements, the lessee's
initial Form MMS-4110
shall include estimates of
the allowable oil
transportation costs for
the applicable period * *
*.
----------------------------------------------------------------------------------------------------------------
1206.57(c)(2)(v)................... (c) Reporting requirements. Burden covered under Sec. 1206.57(c)(2)(i).
(2) Non-arm's-length or no
contract..
(v) * * * only those
allowances that have been
approved by ONRR in
writing * * *.
----------------------------------------------------------------------------------------------------------------
1206.57(c)(2)(vi).................. (c) Reporting requirements. AUDIT PROCESS. See note.
(2) Non-arm's-length or no
contract..
Page 43360
(vi) Upon request by ONRR,
the lessee shall submit
all data used to prepare
its Form MMS-4110. The
data shall be provided
within a reasonable period
of time, as determined by
ONRR..
----------------------------------------------------------------------------------------------------------------
1206.57(c)(4) and (e)(2)........... (c) Reporting requirements. Burden covered under OMB Control Number 1012-
(4) Transportation 0004. Burden covered under Sec. 1210.52.
allowances must be
reported as a separate
line item on Form MMS-2014
* * *.
(e)Adjustments.
(2) For lessees
transporting production
from Indian leases, the
lessee must submit a
corrected Form MMS-2014 to
reflect actual costs * *
*.
----------------------------------------------------------------------------------------------------------------
1206.59............................ May I ask ONRR for 20 1 20
valuation guidance?.
You may ask ONRR for
guidance in determining
value. You may propose a
value method to ONRR.
Submit all available data
related to your proposal
and any additional
information ONRR deems
necessary * * *.
----------------------------------------------------------------------------------------------------------------
1206.61(a) and (b)................. What records must I keep AUDIT PROCESS. See note.
and produce?.
(a) On request, you must
make available sales,
volume, and transportation
data for production you
sold, purchased, or
obtained from the field or
area. You must make this
data available to ONRR,
Indian representatives, or
other authorized persons.
(b) You must retain all
data relevant to the
determination of royalty
value * * *.
----------------------------------------------------------------------------------------------------------------
PART 1206--PRODUCT VALUATION
Subpart E--Indian Gas
----------------------------------------------------------------------------------------------------------------
1206.172(b)(1)(ii)................. How do I value gas produced 4 58 232
from leases in an index
zone?.
(b) Valuing residue gas and
gas before processing.
(1)(ii) Gas production that
you certify on Form MMS-
4410, * * * is not
processed before it flows
into a pipeline with an
index but which may be
processed later; * * *
----------------------------------------------------------------------------------------------------------------
1206.172(e)(6)(i) and (iii)........ (e) Determining the minimum 3 11 33
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
MMS-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 MMS-
4411 is due or is filed,
whichever is later * * *.
-----------------------------------------------
1206.172(e)(6)(ii)................. (e) Determining the minimum Burden covered under OMB Control Number 1012-
value for royalty purposes 0004. Burden covered under Sec. 1210.52.
of gas sold beyond the
first index pricing point.
(6)(ii) You must pay and
report on Form MMS-2014
additional royalties due
no later than June 30
following each calendar
year * * *.
-----------------------------------------------
1206.172(f)(1)(ii), (f)(2), and (f) Excluding some or all 40 1 40
(f)(3). 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 S 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 * * *.
----------------------------------------------------------------------------------------------------------------
1206.173(a)(1)..................... How do I calculate the 2 12 24
alternative methodology
for dual accounting?
Page 43361
(a) Electing a dual
accounting method.
(1) * * * You may elect to
perform the dual
accounting calculation
according to either Sec.
1206.176(a) (called actual
dual accounting), or
paragraph (b) of this
section (called the
alternative methodology
for dual accounting).
----------------------------------------------------------------------------------------------------------------
1206.173(a)(2)..................... (a) Electing a dual Burden covered under Sec. 1206.173(a)(1).
accounting method.
(2) You must make a
separate election to use
the alternative
methodology for dual
accounting for your Indian
leases in each ONRR S-
designated area * * *.
----------------------------------------------------------------------------------------------------------------
1206.174(a)(4)(ii)................. How do I value gas Burden covered under OMB Control Number 1012-
production when an index- 0004. Burden covered under Sec. 1210.52.
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 MMS-2014 to ONRR by
the due date specified in
the written notice from
ONRR of the major portion
value * * *.
----------------------------------------------------------------------------------------------------------------
1206.174(b)(1)(i) and (iii); (b) Arm's-length contracts. AUDIT PROCESS. See note.
(b)(2); (d)(2). (1)(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........
(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)........................ (d) Supporting data. If you Burden covered under OMB Control Number 1012-
determine the value of 0004.
production under paragraph
(c) of this section, you
must retain all data
relevant to determination
of royalty value.
----------------------------------------------------------------------------------------------------------------
1206.174(f)........................ (f) Value guidance. You may 40 1 40
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 * * *.
----------------------------------------------------------------------------------------------------------------
1206.175(d)(4)..................... How do I determine 20 1 20
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 *
* *.
----------------------------------------------------------------------------------------------------------------
1206.176(b)........................ How do I perform accounting Burden covered under Sec. 1206.173(a)(1).
for comparison?.
(b) If you are required to
account for comparison,
you may elect to use the
alternative dual
accounting methodology
provided for in Sec.
1206.173 instead of the
provisions in paragraph
(a) of this section.
----------------------------------------------------------------------------------------------------------------
1206.176(c)........................ (c) * * * If you do not Burden covered under Sec.
perform dual accounting, 1206.172(b)(1)(ii).
you must certify to ONRR
that gas flows into such a
pipeline before it is
processed.
----------------------------------------------------------------------------------------------------------------
Transportation Allowances
----------------------------------------------------------------------------------------------------------------
1206.177(c)(2) and (c)(3).......... What general requirements Burden covered under Sec. 1206.56(b)(2).
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 * *
*.
Page 43362
(3) Your application for
exception (using Form MMS-
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 1 18 18
transportation allowance?.
(a) Determining a
transportation allowance
under an arm's-length
contract.
(1)(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 MMS-2014.
----------------------------------------------------------------------------------------------------------------
1206.178(a)(1)(iii)................ (a) Determining a AUDIT PROCESS. See note.
transportation allowance
under an arm's-length
contract.
(1)(iii) If ONRR determines
that the consideration
paid under an arm's-length
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) Determining a 20 1 20
transportation allowance
under an arm's-length
contract.
(2)(i) * * * you 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 * * *.
----------------------------------------------------------------------------------------------------------------
1206.178(a)(3)(i) and (ii)......... (a) Determining a 40 1 40
transportation allowance
under an arm's-length
contract.
(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 * * *.
----------------------------------------------------------------------------------------------------------------
1206.178(b)(1)(ii)................. (b) Determining a 15 5 75
transportation allowance
under a non-arm's-length
contract or no contract.
(1)(ii) * * * You must
submit the actual cost
information to support the
allowance to ONRR on Form
MMS-4295, Gas
Transportation Allowance
Report, within 3 months
after the end of the 12-
month period to which the
allowance applies * * *.
----------------------------------------------------------------------------------------------------------------
1206.178(b)(2)(iv)................. (b) Determining a 20 1 20
transportation allowance
under a non-arm's-length
contract or no contract.
(2)(iv) You may use either
depreciation with a return
on undepreciated capital
investment or a return on
depreciable capital
investment. * * * you may
not later elect to change
to the other alternative
without ONRR approval.
----------------------------------------------------------------------------------------------------------------
1206.178(b)(2)(iv)(A).............. (b) Determining a 20 1 20
transportation allowance
under a non-arm's-length
contract or no contract.
(2)(iv)(A) * * * Once you
make an election, you may
not change methods without
ONRR approval * * *.
----------------------------------------------------------------------------------------------------------------
1206.178(b)(3)(i).................. (b) Determining a 40 1 40
transportation allowance
under a non-arm's-length
contract or no contract.
Page 43363
(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.
----------------------------------------------------------------------------------------------------------------
1206.178(b)(3)(ii)................. (b) Determining a 20 1 20
transportation allowance
under a non-arm's-length
contract or no contract.
(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 * * *.
----------------------------------------------------------------------------------------------------------------
1206.178(b)(5)..................... (b) Determining a 40 1 40
transportation allowance
under a non-arm's-length
contract or no contract.
(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 * * *.
----------------------------------------------------------------------------------------------------------------
1206.178(d)(1)..................... (d) Reporting your AUDIT PROCESS. See note.
transportation allowance..
(1) If ONRR requests, you
must submit all data used
to determine your
transportation allowance *
* *.
----------------------------------------------------------------------------------------------------------------
1206.178(d)(2), (e), and (f)(1).... (d) Reporting your Burden covered under OMB Control Number 1012-
transportation allowance.. 0004. Burden covered under Sec. 1210.52.
(2) You must report
transportation allowances
as a separate entry on
Form MMS-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 MMS-2014,
you are required to report
and pay additional
royalties due, plus
interest computed under 30
CFR 1218.54 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
MMS-2014 by the amount
received or credited for
the affected reporting
period.
----------------------------------------------------------------------------------------------------------------
Processing Allowances
----------------------------------------------------------------------------------------------------------------
1206.180(a)(1)(i).................. How do I determine an 1 2 2
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 MMS-2014.
----------------------------------------------------------------------------------------------------------------
1206.180(a)(1)(iii)................ (a) Determining a AUDIT PROCESS. See note.
processing allowance if
you have an arm's-length
processing contract.
(1)(iii) If ONRR determines
that the consideration
paid under an arm's-length
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.
----------------------------------------------------------------------------------------------------------------
1206.180(a)(3)..................... (a) Determining a 40 1 40
processing allowance if
you have an arm's-length
processing contract.
Page 43364
(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 * * *.
----------------------------------------------------------------------------------------------------------------
1206.180(b)(1)(ii)................. (b) Determining a 100 12 1,200
processing allowance if
you have a non-arm's-
length contract or no
contract.
(1)(ii) * * * You must
submit the actual cost
information to support the
allowance to ONRR on Form
MMS-4109, Gas Processing
Allowance Summary Report,
within 3 months after the
end of the 12-month period
for which the allowance
applies * * *.
----------------------------------------------------------------------------------------------------------------
1206.180(b)(2)(iv)................. (b) Determining a 20 1 20
processing allowance if
you have a non-arm's-
length contract or no
contract.
(2)(iv) You may use either
depreciation with a return
on undepreciable capital
investment or a return on
depreciable capital
investment. * * * you may
not later elect to change
to the other alternative
without ONRR approval.
----------------------------------------------------------------------------------------------------------------
1206.180(b)(2)(iv)(A).............. (b) Determining a 20 1 20
processing allowance if
you have a non-arm's-
length contract or no
contract.
(2)(iv)(A) * * * Once you
make an election, you may
not change methods without
ONRR approval * * *.
----------------------------------------------------------------------------------------------------------------
1206.180(b)(3)..................... (b) Determining a 20 1 20
processing allowance if
you have a non-arm's-
length contract or no
contract.
(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.
----------------------------------------------------------------------------------------------------------------
1206.180(c)(1)..................... (c) Reporting your AUDIT PROCESS. See note.
processing allowance.
(1) If ONRR requests, you
must submit all data used
to determine your
processing allowance * * *.
----------------------------------------------------------------------------------------------------------------
1206.180(c)(2) and (d)............. (c) Reporting your Burden covered under OMB Control Number 1012-
processing allowance. 0004. Burden covered under Sec. 1210.52.
(2) You must report gas
processing allowances as a
separate entry on the Form
MMS-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 MMS-2014, you are
required to pay additional
royalties, plus interest
computed under 30 CFR
1218.54 from the first day
of the first month you
deducted a processing
allowance until the date
you pay the royalties due
* * *.
----------------------------------------------------------------------------------------------------------------
1206.181(c)........................ How do I establish 40 1 40
processing costs for dual
accounting purposes when I
do not process the gas?
(c) 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.
----------------------------------------------------------------------------------------------------------------
PART 1207--SALES AGREEMENTS OR CONTRACTS GOVERNING THE DISPOSAL OF LEASE PRODUCTS
Subpart A--General Provisions
----------------------------------------------------------------------------------------------------------------
1207.4(b).......................... Contracts made pursuant to AUDIT PROCESS. See note.
old form leases.
(b) 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 * * *.
----------------------------------------------------------------------------------------------------------------
1207.5............................. Contract and sales AUDIT PROCESS. See note.
agreement retention.
Page 43365
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.
----------------------------------------------------------------------------------------------------------------
TOTAL BURDEN................... ........................... .............. 148 2,269
----------------------------------------------------------------------------------------------------------------
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.
Estimated Annual Reporting and Recordkeeping ``Non-hour'' Cost Burden: We have identified no ``non-hour'' cost burdens.
Public Disclosure Statement: The PRA (44 U.S.C. 3501 et seq.) provides that an agency may not conduct or sponsor, and a person does not have to respond to, a collection of information unless it displays a currently valid OMB control number.
Comments: Before submitting an ICR to OMB, PRA section 3506(c)(2)(A) requires each agency to ``* * * provide 60-day notice in the Federal Register * * * and otherwise consult with members of the public and affected agencies concerning each proposed collection of information * * *.'' Agencies must specifically solicit comments to (a) evaluate whether the proposed collection of information is necessary in order for the agency to perform its duties, including whether the information is useful; (b) evaluate the accuracy of the agency's estimate of the burden of the proposed collection of information; (c) enhance the quality, usefulness, and clarity of the information that the agency collects; and (d) minimize the burden on the respondents, including the use of automated collection techniques or other forms of information technology.
To comply with the public consultation process, ONRR published a notice in the Federal Register on December 8, 2011 (76 FR 76746), announcing that we would submit this ICR to OMB for approval. (We published an additional notice in the Federal Register on December 15, 2011 (76 FR 78033) correcting the response date for comments.) The notice provided the required 60-day comment period. We received no comments in response to the notice.
If you wish to comment in response to this notice, you may send your comments to the offices that we listed under the ADDRESSES section of this notice. OMB has up to 60 days to approve or disapprove the information collection, but they may respond after 30 days. Therefore, to ensure maximum consideration, OMB should receive public comments by August 23, 2012.
Public Comment Policy: We will post all comments, including names and addresses of respondents, at http://www.regulations.gov. Before including your address, phone number, email address, or other personal identifying information in your comment, you should be aware that we may make your entire comment--including your personal identifying information--publicly available at any time. While you can ask us, in your comment, to withhold your personal identifying information from public view, we cannot guarantee that we will be able to do so.
Office of the Secretary, Information Collection Clearance Officer: Laura Dorey (202) 208-2654.
Dated: July 17, 2012.
Gregory J. Gould,
Director, Office of Natural Resources Revenue.
FR Doc. 2012-18079 Filed 7-23-12; 8:45 am
BILLING CODE 4310-T2-P
