[Federal Register: July 28, 1999 (Volume 64, Number 144)]
[Notices]               
[Page 40893-40894]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28jy99-92]                         

-----------------------------------------------------------------------

DEPARTMENT OF THE INTERIOR

Minerals Management Service

 
Agency Information Collection Activities: Submitted for Office of 
Management and Budget Review; Comment Request

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: To comply with the Paperwork Reduction Act (44 U.S.C. 3501 et 
seq.), we are notifying you that we have submitted an information 
collection request (ICR) to the Office of Management and Budget (OMB) 
for review and approval. We are also soliciting your comments on this 
ICR which describes the information collection, its expected costs and 
burden, and how the data will be collected.

DATES: Written comments should be received on or before August 27, 
1999.

ADDRESSES: You may submit comments directly to the Office of 
Information and Regulatory Affairs, OMB, Attention: Desk Officer for 
the Department of the Interior (OMB Control Number 1010-0073), 725 17th 
Street, NW, Washington, DC 20503; telephone (202) 395-7340. Copies of 
these comments should also be sent to us. The U.S. Postal Service 
address is Minerals Management Service, Royalty Management Program, 
Rules and Publications Staff, P.O. Box 25165, MS 3021, Denver, Colorado 
80225-0165; the courier address is Building 85, Room A-613, Denver 
Federal Center, Denver, Colorado 80225; and the e:Mail address is 
RMP.comments@mms.gov.

FOR FURTHER INFORMATION CONTACT: For questions concerning this 
collection of information, please contact Larry Barker, RIK Study Team, 
telephone (303) 231-3157. You may also obtain copies of this collection 
of information at no cost by contacting MMS's Information Collection 
Clearance Officer at (202) 208-7744.

SUPPLEMENTARY INFORMATION:
    Title: Royalty-in-Kind Pilot Program--Directed Third Party 
Communications Between Operators and Purchasers of Federal Royalty Oil 
and Gas.
    OMB Control Number: 1010-0126.
    Abstract: The Secretary of the Interior, under the Mineral Leasing 
Act (30 U.S.C. 192) and the Outer Continental Shelf Lands Act (43 
U.S.C. 1353), is responsible for the management of royalties on 
minerals produced from leased Federal lands. MMS carries out these 
responsibilities for the Secretary. Most royalties are now paid in 
value--when a company or individual enters into a contract to develop, 
produce, and dispose of minerals from Federal lands, that company or 
individual agrees to pay the United States a share (royalty) of the 
full value received for the minerals taken from leased lands. MMS has 
undertaken several pilot programs to study the feasibility of taking 
the Government's royalty in the form of production, that is, as RIK.
    Collection of RIK requires communication between the operators of a 
lease and the purchaser of RIK from that lease to assure accurate and 
timely delivery of MMS' royalty share of production volumes. On January 
29, 1999, OMB granted emergency approval for MMS to instruct lessees 
(or their operators), through a letter to operators which contains 
reporting requirements, to conduct all necessary communications with 
RIK purchasers during RIK pilot activities.
    The three kinds of directed communication between operators and 
purchasers of RIK are: (1) Information about the volumes made available 
as RIK; (2) information about transportation of the RIK; and (3) 
information about correcting volumes made available as RIK. Experience 
with the Wyoming and Texas 8(g) Pilots demonstrates that the directed 
communication requirements differ according to the needs of each pilot 
situation. For example, in the Wyoming Pilot, RIK is delivered to the 
purchaser at the lease. Therefore, the direction to make transportation 
arrangements was not included in letters issued to those operators. For 
these reasons, we are not requesting approval of specific letters to 
operators but, instead, approval for the three kinds of reporting 
requirements concerning communications between operators and purchasers 
of RIK. By obtaining approval for these three kinds of reporting 
requirements, MMS will be able to select the types of directed 
communications needed for each pilot and include only those types in a 
letter appropriate to the operation of that pilot.
    The types of communication and supporting data MMS will require 
operators to use in setting up the monthly delivery of RIK to the 
purchaser are standard business practices in the oil and gas industry. 
The information in the directed communication is essential to the 
delivery and acceptance of verifiable quantities and qualities of oil 
and gas and is exchanged as a normal part of the conduct of those 
business activities, even when operators are not directed to do so. 
Failure of lessees/operators and purchasers to timely communicate 
volumetric, delivery, and transportation information concerning MMS' 
RIK volumes will result in storage costs being incurred due to lack of 
pipeline space being reserved to move MMS' royalty production. Monetary 
penalties would also be incurred for failure to meet delivery due 
dates. Additionally, failure to communicate data from balancing 
accounts would severely impair MMS' ability to verify that it is 
receiving the full and accurate volume of its royalty share of 
production.
    No proprietary information will be submitted to MMS under this 
collection. No items of a sensitive nature are collected. The 
requirement to respond is mandatory.
    The PRA provides that an agency may not conduct or sponsor, and a 
person is not required to respond to, a collection of information 
unless it displays a currently valid OMB Control Number. The Federal 
Register Notice with a 60-day comment period soliciting comments on 
this collection of information was published on April 26, 1999 (64 FR 
20321).
    Estimated Number and Type of Respondents/Affected Entities: 
Approximately 80 lessees or operators of Federal oil or gas leases 
participating in RIK pilot programs.
    Frequency of Response: Monthly.
    Burden Statement and Estimated Annual Reporting and Recordkeeping 
``Hour'' Burden: We estimate the respondent burden to average 2 minutes 
per response for a total of 285 hours. We estimate no additional 
recordkeeping burden.
    Estimated Annual Reporting and Recordkeeping ``Non-Hour Cost'' 
Burden: We have identified no paperwork cost burdens for this 
collection.
    Comments: Section 3506(c)(2)(A) of the Paperwork Reduction Act 
requires each agency '' * * * to provide notice * * * 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 for the agency to perform its 
duties, including whether the information is useful; (b) evaluate the 
accuracy of the agency's estimate of the

[[Page 40894]]

burden of the proposed collection of information; (c) enhance the 
quality, usefulness, and clarity of the information to be collected; 
and (d) minimize the burden on the respondents, including the use of 
automated collection techniques or other forms of information 
technology.
    Send your comments directly to the offices listed under the 
addresses section of this notice. OMB has up to 60 days to approve or 
disapprove the information collection but may respond after 30 days. 
Therefore, to ensure maximum consideration, OMB should receive public 
comments by August 27, 1999.
    MMS Information Collection Clearance Officer: Jo Ann Lauterbach 
(202) 208-7744.

    Dated: July 21, 1999.
Joan Killgore,
Acting Associate Director for Royalty Management.
[FR Doc. 99-19261 Filed 7-27-99; 8:45 am]
BILLING CODE 4310-MR-P