[Federal Register: July 22, 2005 (Volume 70, Number 140)]
[Notices]
[Page 42366-42377]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22jy05-90]
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DEPARTMENT OF THE INTERIOR
Minerals Management Service
Agency Information Collection Activities: Proposed Collection,
Comment Request
AGENCY: Minerals Management Service (MMS), Interior.
ACTION: Notice of a revision of a currently approved information
collection (OMB Control Number 1010-0136).
-----------------------------------------------------------------------
SUMMARY: To comply with the Paperwork Reduction Act (PRA) of 1995, we
are inviting comments on a collection of information that we will
submit to the Office of Management and Budget (OMB) for review and
approval. The new title of this information collection request (ICR) is
titled ``30 CFR PART 206--PRODUCT VALUATION, subpart C--Federal Oil and
subpart D--Federal Gas (Form MMS-4393, Request to Exceed Regulatory
Allowance Limitation).'' We changed the title of this information
collection request (ICR) to clarify the regulatory language we are
covering under 30 CFR part 206, and to incorporate relevant portions of
three previous ICRs. The three ICRs, now consolidated into this ICR,
were previously titled:
1010-0095: 30 CFR Part 206--Product Valuation (Request to
Exceed Transportation and Processing Allowance Limitation), subpart B--
Indian Oil, Sec. 206.54(b)(2); subpart C--Federal Oil, Sec.
206.109(c)(2); subpart D--Federal Gas, Sec. Sec. 206.156(c)(3),
206.158(c)(3), and 206.158(d)(2)(i); and subpart E--Indian Gas,
Sec. Sec. 206.177(c)(2) and 206.177(c)(3);
1010-0136: 30 CFR 206--subpart C, Federal Oil Valuation;
and
1010-0157: 30 CFR 206--subpart C, Federal Oil.
Citations concerning Indian oil and gas, referred to in the above
three ICRs, are currently covered in ICR 1010-0103.
DATES: Submit written comments on or before September 20, 2005.
[[Page 42367]]
ADDRESSES: Submit written comments to Sharron L. Gebhardt, Lead
Regulatory Specialist, Minerals Management Service, Minerals Revenue
Management, P.O. Box 25165, MS 302B2, Denver, Colorado 80225. If you
use an overnight courier service or wish to hand carry your comments,
our courier address is Building 85, Room A-614, Denver Federal Center,
Denver, Colorado 80225. You may also e-mail your comments to us at
mrm.comments@mms.gov. Include the title of the information collection
and the OMB control number in the ``Attention'' line of your comment.
Also include your name and return address. Submit electronic comments
as an ASCII file avoiding the use of special characters and any form of
encryption. If you do not receive a confirmation that we have received
your e-mail, contact Ms. Gebhardt at (303) 231-3211.
FOR FURTHER INFORMATION CONTACT: Sharron L. Gebhardt, telephone (303)
231-3211, FAX (303) 231-3781, or e-mail sharron.gebhardt@mms.gov.
SUPPLEMENTARY INFORMATION:
Title: 30 CFR PART 206--PRODUCT VALUATION, subpart C--Federal Oil
and subpart D--Federal Gas (Form MMS-4393, Request to Exceed Regulatory
Allowance Limitation).
OMB Control Number: 1010-0136.
Bureau Form Number: Form MMS-4393.
Abstract: The Department of the Interior is responsible for matters
relevant to mineral resource development on Federal and Indian lands
and the Outer Continental Shelf (OCS). The Secretary of the Interior is
responsible for managing the production of minerals from Federal and
Indian lands and the OCS, collecting royalties from lessees who produce
minerals, and distributing the funds collected in accordance with
applicable laws. The MMS assists the Secretary in performing the
royalty management functions.
When a company or an individual enters into a lease to explore,
develop, produce, and dispose of minerals from Federal or Indian lands,
that company or individual agrees to pay the lessor a share (royalty)
of the value received from production from the leased lands. The lease
creates a business relationship between the lessor and the lessee. The
lessee is required to report various kinds of information to the lessor
relative to the disposition of the leased minerals. Such information is
similar to data reported to private and public mineral interest owners
and is generally available within the records of the lessee or others
involved in developing, transporting, processing, purchasing, or
selling of such minerals. The information collected includes data
necessary to ensure that the royalties are paid appropriately.
Section 101(a) of the Federal Oil and Gas Royalty Management Act of
1982 (FOGRMA), as amended, requires that the Secretary ``establish a
comprehensive inspection, collection, and fiscal and production
accounting and auditing system to provide the capability to accurately
determine oil and gas royalties, interest, fines, penalties, fees,
deposits, and other payments owed, and collect and account for such
amounts in a timely manner.'' In order to accomplish these tasks, MMS
developed valuation regulations for Federal leases at 30 CFR part 206--
Product Valuation. Market value is a basic principle underlying royalty
valuation. Consequently, these regulations include methods to capture
the true market value of crude oil and gas produced from Federal
leases, both onshore and offshore. The valuation regulations at 30 CFR
part 206 require companies to collect and/or submit information used to
value their Federal oil and gas.
The MMS uses the information collected to ensure that proper
royalty is paid on oil and gas produced from Federal onshore and
offshore leases. Please refer to the chart for all reporting
requirements and associated burden hours. Regulations developed ensure
the information requested is the minimum necessary to carry out our
mission and places the least possible burden on respondents. The
requested information provides a critical link to establishing the
proper value of oil and gas from Federal lands. If the information is
not collected, it may result in a loss of royalties for both Federal
and state governments.
Transportation and Processing Allowances
Under certain circumstances, lessees are authorized to claim a
transportation allowance for the reasonable actual costs of
transporting the royalty portion of produced oil and gas from the lease
to a processing or sales point not in the immediate lease area.
When gas is processed for the recovery of gas plant products,
lessees may claim a processing allowance. Transportation and processing
allowances are a part of the product valuation process that MMS uses to
determine if the lessee is reporting and paying the proper royalty
amount.
The regulations establish a limit on transportation allowance
deductions for oil and gas at 50 percent of the value of the oil and
gas at the point of sale. The MMS may approve a transportation
allowance in excess of 50 percent upon proper application from the
lessee. Similarly, the regulations establish a limit of 66\2/3\ percent
of the value of each gas plant product as an allowable gas processing
deduction. The MMS may also approve a processing allowance in excess of
66\2/3\ percent upon proper application from the lessee.
Request To Exceed Regulatory Allowance Limitation
The MMS may approve an allowance exceeding the regulatory allowance
limit upon proper application from the lessee. To request permission to
exceed a regulatory allowance limit, lessees must write a letter to MMS
explaining why a higher allowance limit is necessary and provide
supporting documentation. The MMS developed Form MMS-4393, Request to
Exceed Regulatory Allowance Limitation, to accompany the lessee's
letter requesting approval to exceed the regulatory allowance limit.
This form provides MMS with the data necessary to make a decision and
track deductions on royalty reports. Data reported on the form is also
subject to subsequent audit and adjustment.
Proprietary information submitted to MMS under this collection is
protected, and no items of a sensitive nature are collected. A response
is mandatory for valuation requirements and required to obtain the
benefit of allowances.
Applicable Citations
Applicable citations of the laws pertaining to mineral leases
include Public Law 97-451--Jan. 12, 1983 (Federal Oil and Gas Royalty
Management Act of 1982 [FOGRMA]); Public Law 104-185--Aug. 13, 1996
(Federal Oil and Gas Royalty Simplification and Fairness Act of 1996
[RSFA]), as corrected by Public Law 104-200--Sept. 22, 1996); the
Mineral Leasing Act of 1920, Section 36, as amended (30 U.S.C. 192);
Outer Continental Shelf Lands Act of 1953, Section 27, as amended (43
U.S.C. 1353); 30 U.S.C. 189 pertaining to Public Lands; 30 U.S.C. 359
pertaining to Acquired Lands; and 43 U.S.C. 1334 pertaining to OCS
Lands. Public laws pertaining to mineral royalties are located on our
Web site at http://www.mrm.mms.gov/Laws_R_D/PublicLawsAMR.htm.
The applicable regulations include 30 CFR part 206--Product
Valuation. In addition, we also are including applicable citations from
the 2004 Federal Oil Valuation Rule (69 FR 24959, published May 5,
2004) and the 2005 Federal Gas Valuation Rule (70 FR 11869, published
March 10, 2005).
[[Page 42368]]
Frequency of Response: Monthly, and when necessary, annually.
Estimated Number and Description of Respondents: 100 Federal
lessees.
Estimated Annual Reporting and Recordkeeping ``Hour'' Burden:
21,815 hours.
We are revising this ICR to include non-standard reporting
requirements that were overlooked in the previous renewal, and we have
adjusted the burden hours accordingly. The hours also reflect our
recent analysis related to the implementation of the 2004 Federal Oil
Valuation rule and the 2005 Federal Gas Valuation rule. We have not
included in our estimates certain requirements performed in the normal
course of business and considered usual and customary. The following
chart shows the breakdown of the estimated burden hours by CFR section
and paragraph:
Respondents' Estimated Annual Burden Hours
----------------------------------------------------------------------------------------------------------------
Average number
Citation 30 CFR 206 Reporting and recordkeeping Hour burden of annual Annual burden
requirement responses hours
----------------------------------------------------------------------------------------------------------------
Subpart C--Federal Oil
----------------------------------------------------------------------------------------------------------------
Sec. 206.102 How do I calculate royalty value for oil that I or my affiliate sell(s) under an arm's-length
contract?
----------------------------------------------------------------------------------------------------------------
206.102(e)(1).................... 206.102(e) If you value oil PRODUCE RECORDS--The ORA determined that the
under paragraph (a) of this audit process is not covered by the PRA
section: (1) MMS may require because MMS staff asks non-standard questions
you to certify that your or to resolve exceptions.
your affiliate's arm's-
length contract provisions
include all of the
consideration the buyer must
pay, either directly or
indirectly, for the oil.
----------------------------------
Sec. 206.103 How do I value oil that is not sold under an arm's-length contract?
----------------------------------------------------------------------------------------------------------------
206.103.......................... This section explains how to 33.25 5 166.25
value oil that you may not
value under Sec. 206.102
or that elect under Sec.
206.102(d) to value under
this section. First
determine whether paragraph
(a), (b), or (c) of this
section applies to
production from your lease,
or whether you may apply
paragraph (d) or (e) with
MMS approval.
206.103(a)....................... 206.103 (a) Production from
leases in California or
Alaska. Value is the average
of the daily mean ANS spot
prices published in any MMS-
approved publication during
the trading month most
concurrent with the
production month * * *
(1) To calculate the daily
mean spot price * * *.
(2) Use only the days * * *..
(3) You must adjust the value
* * *.
206.103(a)(4).................... 206.103(a)(4) After you 8 2 16
select an MMS-approved
publication, you may not
select a different
publication more often than
once every 2 years, * * *.
206.103(b)(1).................... 206.103(b) Production from 400 2 800
leases in the Rocky Mountain
Region. * * * (1) If you
have an MMS-approved
tendering program, you must
value oil * * *.
206.103(b)(1)(ii)................ 206.103(b)(1)(ii) If you do 400 2 800
not have an MMS-approved
tendering program, you may
elect to value your oil
under either paragraph
(b)(2) or (b)(3) of this
section. * * *.
206.103(b)(4).................... 206.103(b)(4) If you 400 2 800
demonstrate to MMS's
satisfaction that paragraphs
(b)(1) through (b)(3) of
this section result in an
unreasonable value for your
production as a result of
circumstances regarding that
production, the MMS Director
may establish an alternative
valuation method.
206.103(c)(1).................... 206.103(c) Production from 50 10 500
leases not located in
California, Alaska or the
Rocky Mountain Region. (1)
Value is the NYMEX price,
plus the roll, adjusted for
applicable location and
quality differentials and
transportation costs under
Sec. 206.112.
206.103(e)(1).................... 206.103(e) Production 330 2 660
delivered to your refinery
and the NYMEX price or ANS
spot price is an
unreasonable value. (1) * *
* you may apply to the MMS
Director to establish a
value representing the
market at the refinery if: *
* *.
206.103(e)(2).................... 206.103(e)(2) You must .............. .............. ..............
provide adequate
documentation and evidence
demonstrating the market
value at the refinery * * *.
----------------------------------
Sec. 206.105 What records must I keep to support my calculations of value under this subpart?
----------------------------------------------------------------------------------------------------------------
206.105.......................... 206.105 If you determine the There are no burden hours to report in this
value of your oil under this ICR. All burden hours associated with Form MMS-
subpart, you must retain all 2014 are included in OMB Control Number 1010-
data relevant to the 0140 (Form MMS-2014), expires 10/31/2006.
determination of royalty
value. * * *.
----------------------------------
Sec. 206.107 How do I request a value determination?
----------------------------------------------------------------------------------------------------------------
206.107(a)....................... 206.107(a) You may request a 330 8 2,640
330 82,640 value
determination from MMS * * *.
----------------------------------
[[Page 42369]]
Sec. 206.109 When may I take a transportation allowance in determining value?
----------------------------------------------------------------------------------------------------------------
206.109(c)(2).................... 206.109(c) Limits on 4.25 1 4.25
transportation allowances.
(2) You may ask MMS to
approve a transportation
allowance in excess of the
limitation in paragraph
(c)(1) of this section.
* * * Your application for
exception (using Form MMS-
4393, Request to Exceed
Regulatory Allowance
Limitation) must contain all
relevant and supporting
documentation necessary for
MMS to make a determination.
* * *.
----------------------------------
Sec. 206.110 How do I determine a transportation allowance under an arm's-length transportation contract?
----------------------------------------------------------------------------------------------------------------
206.110(a)....................... 206.110(a) * * * You must be PRODUCE RECORDS--The ORA determined that the
able to demonstrate that you audit process is not covered by the PRA
or your affiliate's contract because MMS staff asks non-standard questions
is at arm's length. * * *. to resolve exceptions.
-----------------
206.110(d)(3).................... 216.110(d) If your arm's-
length transportation
contract includes more than
one liquid product, and the
transportation costs
attributable to each product
cannot be determined * * *
(3) You may propose to MMS a 330 2 660
cost allocation method * * *
206.110(e)....................... 206.110(e) If your arm's- 330 1 330
length transportation
contract includes both
gaseous and liquid products,
and the transportation costs
attributable to each product
cannot be determined from
the contract, then you must
propose an allocation
procedure to MMS.
-----------------
206.110(e)(1).................... 206.110(e)(1) * * * If MMS There are no burden hours to report in this
rejects your cost ICR. All burden hours associated with Form MMS-
allocation, you must amend 2014 are included in OMB Control Number 1010-
your Form MMS-2014 * * *. 0140 (Form MMS-2014), expires 10/31/2006.
206.110(e)(2).................... 206.110(e)(2) You must submit There are no burden hours to report in this
your initial proposal, ICR. All burden hours associated with Form MMS-
including all available 2014 are included in OMB Control Number 1010-
data, within 3 months after 0140, (Form MMS-2014), expires 10/31/2006.
first claiming the allocated
deductions on Form MMS-2014.
-----------------
206.110(g)(2).................... 206.110(g) If your arm's- 330 1 330
length sales includes a
provision reducing the
contract price by a
transportation factor, * * *
(2) You must obtain MMS
approval before claiming a
transportation factor in
excess of 50 percent of the
base price of the product.
----------------------------------
Sec. 206.111 How do I determine a transportation allowance if I do not have an arm's-length transportation
contract or arm's-length tariff?
----------------------------------------------------------------------------------------------------------------
206.111(g)....................... 206.111(g) To compute 330 1 330
depreciation, you may elect
to use either * * * After
you make an election, you
may not change methods
without MMS approval. * * *.
206.111(k)(2).................... 206.111(k)(2) You may propose 330 1 330
to MMS a cost allocation
method on the basis of the
values * * *.
206.111(l)(1).................... 206.111(l)(1) Where you 330 1 330
transport both gaseous and
liquid products through the
same transportation system,
you must propose a cost
allocation procedure to MMS.
-----------------
206.111(l)(2).................... 206.111(l)(2) * * * If MMS There are no burden hours to report in this
rejects your cost ICR. All burden hours associated with your
allocation, you must amend Form MMS-2104 are included in OMB Control
your Form MMS-2104 for the Number 1010-0140 (Form MMS-2014), expires 10/
month/months that you used 31/2006.
the rejected method and pay
any additional royalty and
interest due.
206.111(l)(3).................... 206.111(l)(3) You must submit Burden covered under Sec. 206.111(l)(1).
your initial proposal,
including all available
data, within 3 months after
first claiming the allocated
deductions on Form MMS-2014.
----------------------------------
Sec. 206.112 What adjustments and transportation allowances apply when I value oil production from my lease
using NYMEX prices or ANS spot prices?
----------------------------------------------------------------------------------------------------------------
206.112(a)(1)(ii)................ 206.112(a)(1)(ii) * * * under 330 1 330
an exchange agreement that
is not at arm's length, you
must obtain approval from
MMS for a location and
quality differential. * * *..
[[Page 42370]]
206.112(a)(1)(ii)................ 206.112(a)(1)(ii) * * * If 330 2 660
MMS prescribes a different
differential, you must apply
* * *. You must pay any
additional royalties owed *
* * plus the late payment
interest from the original
royalty due date, or you may
report a credit * * *.
206.112(a)(3).................... 206.112(a)(3) If you 330 4 1,320
transport or exchange at
arm's length (or both
transport and exchange) at
least 20 percent, but not
all, of your oil produced
from the lease to a market
center, determine the
adjustment between the lease
and the market center for
the oil that is not
transported or exchanged (or
both transported and
exchanged) to or through a
market center as follows: *
* *.
206.112(a)(4).................... 206.112(a)(4) If you 330 4 1,320
transport or exchange (or
both transport and exchange)
less than 20 percent of your
crude oil produced from the
lease between the lease and
a market center, you must
propose to MMS an adjustment
between the lease and the
market center for the
portion of the oil that you
do not transport or exchange
(or both transport and
exchange) to a market
center. * * *.
206.112(a)(4).................... 206.112(a)(4) If MMS
prescribes a different
adjustment * * *. You must
pay any additional royalties
owed * * * plus the late
payment interest from the
original royalty due date,
or you may report a credit *
* *.
206.112(b)(3).................... 206.112(b)(3) * * * you may 330 4 1,320
propose an alternative
differential to MMS. * * *
If MMS prescribes a
different differential * *
*. You must pay any
additional royalties owed *
* * plus the late payment
interest from the original
royalty due date, or you may
report a credit * * *.
206.112(c)(2).................... 206.112(c)(2) * * * If 330 2 660
quality bank adjustments do
not incorporate or provide
for adjustments for sulfur
content, you may make sulfur
adjustments, based on the
quality of the
representative crude oil at
the market center, of 5.0
cents per one-tenth percent
difference in sulfur
content, unless MMS approves
a higher adjustment.
----------------------------------
[[Page 42371]]
Sec. 206.114 What are my reporting requirements under an arm's-length transportation contract?
----------------------------------------------------------------------------------------------------------------
206.114.......................... 206.114 You or your affiliate There are no burden hours to report in this
must use a entry on Form MMS ICR. All burden hours associated with Form MMS-
2014 to notify MMS of an 2014 are included in OMB Control Number 1010-
allowance based on 0140 (Form MMS-2014), expires 10/31/2006.
transportation costs you or
your affiliate incur.
206.114.......................... 206.114 MMS may require you PRODUCE RECORDS--The ORA determined that the
or your affiliate to submit audit process is not covered by the PRA
arm's-length transportation because MMS staff asks non-standard questions
contracts, production to resolve exceptions.
agreements, operating
agreements, and related
documents.
----------------------------------
Sec. 206.115 What are my reporting requirements under a non-arm's-length transportation arrangement?
----------------------------------------------------------------------------------------------------------------
206.115(a)....................... 206.115(a) You or your There are no burden hours to report in this
affiliate must use a ICR. All burden hours associated with Form MMS-
separate entry on Form MMS- 2014 are included in OMB Control Number 1010-
2014 to notify MMS of an 0140 (Form MMS-2014), expires 10/31/2006.
allowance based on
transportation costs you or
your affiliate incur.
206.115(c)....................... 206.115(c) MMS may require PRODUCE RECORDS--The ORA determined that the
you or your affiliate to audit process is not covered by the PRA
submit all data used to because MMS staff asks non-standard questions
calculate the allowance to resolve exceptions.
deduction. * * *.
----------------------------------
Subpart D--Federal Gas
----------------------------------------------------------------------------------------------------------------
Sec. 206.152 Valuation standards--unprocessed gas.
----------------------------------------------------------------------------------------------------------------
206.152(b)(1)(i)................. 206.152(b)(1)(i) * * * The PRODUCE RECORDS--The ORA determined that the
lessee shall have the burden audit process is not covered by the PRA
of demonstrating that its because MMS staff asks non-standard questions
contract is arm's-length. * to resolve exceptions.
* *.
206.152(b)(1)(iii)............... 206.152(b)(1)(iii) * * * When PRODUCE RECORDS--The ORA determined that the
MMS determines that the audit process is not covered by the PRA
value may be unreasonable, because MMS staff asks non-standard questions
MMS will notify the lessee to resolve exceptions.
and give the lessee an
opportunity to provide
written information
justifying the lessee's
value.
-----------------
206.152(b)(2).................... 206.152(b)(2) * * * The 330 1 330
lessee must request a value
determination in accordance
with paragraph (g) of this
section for gas sold
pursuant to a warranty
contract; * * *.
-----------------
206.152(b)(3).................... 206.152(b)(3) MMS may require PRODUCE RECORDS--The ORA determined that the
a lessee to certify that its audit process is not covered by the PRA
arm's-length contract because MMS staff asks non-standard questions
provisions include all of to resolve exceptions.
the consideration to be paid
by the buyer, either
directly or indirectly, for
the gas.
206.152(e)(1).................... 206.152(e)(1) Where the value There are no burden hours to report in this
is determined pursuant to ICR. All burden hours associated with Form MMS-
paragraph (c) of this 2014 are included in OMB Control Number 1010-
section, the lessee shall 0140 (Form MMS-2014), expires 10/31/2006.
retain all data relevant to
the determination of royalty
value. * * *.
206.152(e)(2).................... 206.152(e)(2) Any Federal PRODUCE RECORDS--The ORA determined that the
lessee will make available audit process is not covered by the PRA
upon request to the because MMS staff asks non-standard questions
authorized MMS or State to resolve exceptions.
representatives, to the
Office of the Inspector
General of the department of
the Interior, or other
person authorized to receive
such information, arm's-
length sales and volume data
for like-quality production
sold, purchased or otherwise
obtained by the lessee from
the field or area or from
nearby fields or areas.
-----------------
206.152(e)(3).................... 206.152(e)(3) A lessee shall 330 2 660
notify MMS if it has
determined value pursuant to
paragraph (c)(2) or (c)(3)
of this section. * * *.
206.152(g)....................... 206.152(g) The lessee may 330 6 1,980
request a value
determination from MMS. * *
* the lessee shall submit
all available data relevant
to its proposal. * * *.
----------------------------------
[[Page 42372]]
Sec. 206.153 Valuation standards--processed gas.
----------------------------------------------------------------------------------------------------------------
206.153(b)(1)(i)................. 206.153(b)(1)(i) * * * The PRODUCE RECORDS--The ORA determined that the
lessee shall have the burden audit process is not covered by the PRA
of demonstrating that its because MMS staff asks non-standard questions
contract is arm's-length. * to resolve exceptions.
* *.
206.153(b)(1)(iii)............... 206.153(b)(1)(iii) * * * When PRODUCE RECORDS--The ORA determined that the
MMS determines that the audit process is not covered by the PRA
value may be unreasonable, because MMS staff asks non-standard questions
MMS will notify the lessee to resolve exceptions.
and give the lessee an
opportunity to provide
written information
justifying the lessee's
value.
-----------------
206.153(b)(2).................... 206.153(b)(2) * * * The 330 1 330
lessee must request a value
determination in accordance
with paragraph (g) of this
section for gas sold
pursuant to a warranty
contract; * * *.
-----------------
206.153(b)(3).................... 206.153(b)(3) MMS may require PRODUCE RECORDS--The ORA determined that the
a lessee to certify that its audit process is not covered by the PRA
arm's-length contract because MMS staff asks non-standard questions
provisions include all of to resolve exceptions.
the consideration to be paid
by the buyer, either
directly or indirectly, for
the residue gas or gas plant
product.
206.153(e)(1).................... 206.153(e)(1) Where the value There are no burden hours to report in this
is determined pursuant to ICR. All burden hours associated with Form MMS-
paragraph (c) of this 2014 are included in OMB Control Number 1010-
section, the lessee shall 0140 (Form MMS-2014), expires 10/31/2006.
retain all data relevant to
the determination of royalty
value. * * *.
206.153(e)(2).................... 206.153(e)(2) Any Federal PRODUCE RECORDS--The ORA determined that the
lessee will make available audit process is not covered by the PRA
upon request to the because MMS staff asks non-standard questions
authorized MMS or State to resolve exceptions.
representatives, to the
Office of the Inspector
General of the Department of
the Interior, or other
persons authorized to
receive such information,
arm's-length sales and
volume data for like-quality
residue gas and gas plant
products sold, purchased or
otherwise obtained by the
lessee from the same
processing plant or from
nearby processing plants.
-----------------
206.153(e)(3).................... 206.153(e)(2) A lessee shall 330 2 660
notify MMS if it has
determined any value
pursuant to paragraph (c)(2)
or (c)(3) of this section. *
* *.
206.153(g)....................... 206.153(g) The lessee may 330 4 1,320
request a value
determination from MMS * * *
the lessee shall submit all
available data relevant to
its proposal. * * *.
----------------------------------
Sec. 206.154 Determination of quantities and qualities for computing royalties.
----------------------------------------------------------------------------------------------------------------
206.154(c)(4).................... 206.154(c)(4) * * * A lessee 330 1 330
may request MMS approval of
other methods for
determining the quantity of
residue gas and gas plant
products allocable to each
lease. * * *.
----------------------------------
Sec. 206.156 Transportation allowances--general.
----------------------------------------------------------------------------------------------------------------
206.156(c)(3).................... 206.156(c)(3) Upon request of 4.25 4 17
a lessee, MMS may approve a
transportation allowance
deduction in excess of the
limitation prescribed by
paragraphs (c)(1) and (c)(2)
of this section. * * * An
application for exception
(using Form MMS-4393,
Request to Exceed Regulatory
Allowance Limitation) shall
contain all relevant and
supporting documentation
necessary for MMS to make a
determination. * * *.
----------------------------------
[[Page 42373]]
Sec. 206.157 Determination of transportation allowances.
----------------------------------------------------------------------------------------------------------------
206.157(a)(1)(i)................. 206.157(a) Arm's-length PRODUCE RECORDS--The ORA determined that the
transportation contracts. audit process is not covered by the PRA
(1)(i) * * * The lessee because MMS staff asks non-standard questions
shall have the burden of to resolve exceptions.
demonstrating that its
contract is arm's-length. *
* *.
206.157(a)(1)(i)................. 206.157(a)(1)(i) * * * The There are no burden hours to report in this
lessee must claim a ICR. All burden hours associated with Form MMS-
transportation allowance by 2014 are included in OMB Control Number 1010-
reporting it on a separate 0140 (Form MMS-2014), expires 10/31/2006.
line entry on the Form MMS-
2014.
206.157(a)(1)(iii)............... 206.157(a)(1)(iii) * * * When PRODUCE RECORDS--The ORA determines that the
MMS determines that the audit process is not covered by the PRA
value of the transportation because MMS staff asks non-standard questions
may be unreasonable, MMS to resolve exceptions.
will notify the lessee and
give the lessee an
opportunity to provide
written information
justifying the lessee's
transportation costs.
-----------------
206.157(a)(2)(ii)................ 206.157(a)(2)(ii) * * * the 330 1 330
lessee may propose to MMS a
cost allocation method on
the basis of the values of
the products transported. *
* *.
206.157(a)(3).................... 206.157(a)(3) If an arm's- 330 1 330
length transportation
contract includes both
gaseous and liquid products
and the transportation costs
attributable to each cannot
be determined from the
contract, the lessee shall
propose an allocation
procedure to MMS. *** The
lessee shall submit all
relevant data to support its
proposal. * * *.
206.157(a)(5).................... 206.157(a)(5) * * * The 100 1 100
transportation factor may
not exceed 50 percent of the
base price of the product
without MMS approval.
-----------------
206.157(b)(1).................... 206.157(b) Non-arm's-length There are no burden hours to report in this
or no contract. (1) The ICR. All burden hours associated with Form MMS-
lessee must claim a 2014 are included in OMB Control Number 1010-
transportation allowance by 0140 (Form MMS-2014), expires 10/31/2006.
reporting it on a separate
line entry on the Form MMS-
2014. * * *.
206.157(b)(2)(iv)................ 206.157(b)(2)(iv) After a 100 1 100
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.
206.157(b)(2)(iv)(A)............. After an election is made,
the lessee may not change
methods without MMS
approval. * * *.
206.157(b)(3)(i)................. 206.157(b)(3)(i) * * * Except 100 1 100
as provided in this
paragraph, the lessee may
not take an allowance for
transporting a product which
is not royalty bearing
without MMS approval.
206.157(b)(3)(ii)................ 206.157(b)(3)(ii) * * * the 100 1 100
lessee may propose to the
MMS a cost allocation method
on the basis of the values
of the products transported.
206.157(b)(4).................... 206.157(b)(4) Where both 100 1 100
gaseous and liquid products
are transported through the
same transportation system,
the lessee shall propose a
cost allocation procedure to
MMS. * * * The lessee shall
submit all relevant data to
support its proposal. * * *.
[[Page 42374]]
206.157(b)(5).................... 206.157(b)(5) You may apply 100 1 100
for an exception from the
requirement to compute
actual costs under
paragraphs (b)(1) through
(b)(4) of this section.
-----------------
206.157(c)(1)(i)................. 206.157(c) Reporting There are no burden hours to report in this
Requirements. (1) Arm's- ICR. All burden hours associated with Form MMS-
length contracts. (i) You 2014 are included in OMB Control Number 1010-
must use a separate entry on 0140 (Form MMS-2014), expires 10/31/2006.
Form MMS-2014 to notify MMS
of a transportation
allowance.
206.157(c)(1)(ii)................ 206.157(c)(1)(ii) The MMS may PRODUCE RECORDS--The ORA determined that the
require you to submit arm's- audit process is not covered by the PRA
lenth transportation because MMS staff asks non-standard questions
contracts, production to resolve exceptions.
agreements, operating
agreements, and related
documents. * * *.
206.157(c)(2)(i)................. 206.157(c)(2) Non-arm's- There are no burden hours to report in this
length or no contract. (i) ICR. All burden hours associated with Form MMS-
You must use a separate 2014 are included in OMB Control Number 1010-
entry on Form MMS-2014 to 0140 (Form MMS-2014), expires 10/31/2006.
notify MMS of a
transportation allowance.
206.157(c)(2)(iii)............... 206.157(c)(2)(iii) The MMS PRODUCE RECORDS--The ORA determined that the
may require you to submit audit process is not covered by the PRA
all data used to calculate because MMS staff asks non-standard questions
the allowance deduction. * * to resolve exceptions.
*.
206.157(e)(2).................... 206.157(e) Adjustments. (2) There are no burden hours to report in this
For lessees transporting ICR. All burden hours associated with Form MMS-
production from onshore 2014 are included in OMB Control Number 1010-
Federal leases, the lessee 0140 (Form MMS-2014), expires 10/31/2006.
must submit a corrected Form
MMS-2014 to reflect actual
costs, together with any
payment, in accordance with
instructions provided by MMS.
206.157(e)(3).................... 206.157(e)(3) For lessees There are no burden hours to report in this
transporting gas production ICR. All burden hours associated with Form MMS-
from leases on the OCS, if 2014 are included in OMB Control Number 1010-
the lessee's estimated 0140 (Form MMS-2014), expires 10/31/2006.
transportation allowance
exceeds the allowance based
on actual costs, the lessee
must submit a corrected Form
MMS-2014 to reflect actual
costs, together with its
payments, in accordance with
instructions provided by
MMS. * * *.
206.157(f)(1).................... 206.157(f) Allowable costs in There are no burden hours to report in this
determining transportation ICR. All burden hours associated with Form MMS-
allowances. * * * (1) Firm 2014 are included in OMB Control Number 1010-
demand charges paid to 0140 (Form MMS-2014), expires 10/31/2006.
pipelines. * * * if you
receive a payment or credit
from the pipeline for
penalty refunds, rate case
refunds, or other reasons,
you must reduce the firm
demand charge claimed on the
Form MMS-2014 by the amount
of that payment. You must
modify Form MMS-2014 by the
amount received or credited
for the affected reporting
period and pay any resulting
royalty and late payment
interest due; * * *.
----------------------------------
Sec. 206.158 Processing allowances--general.
----------------------------------------------------------------------------------------------------------------
206.158(c)(3).................... 206.158(c)(3) Upon request of 4.25 17 72.25
a lessee, MMS may approve a
processing allowance in
excess of the limitation
prescribed by paragraph
(c)(2) of this section. * *
* An application for
exception (using Form MMS-
4393, Request to Exceed
Regulatory Allowance
Limitation) shall contain
all relevant and supporting
documentation for MMS to
make a determination. * * *.
[[Page 42375]]
206.158(d)(2)(i)................. 206.158(d)(2)(i) If the 9.5 2 19
lessee incurs extraordinary
costs for processing gas
production from a gas
production operation, it may
apply to MMS for an
allowance for those costs *
* *.
-----------------
206.158(d)(2)(ii)................ 206.158(d)(2)(ii) * * * to There are no burden hours to report in this
retain the authority to ICR. All burden hours associated with Form MMS-
deduct the allowance the 2014 are included in OMB Control Number 1010-
lessee must report the 0140 (Form MMS-2014), expires 10/31/2006.
deduction to MMS in a form
and manner prescribed by MMS.
----------------------------------
Sec. 206.159 Determination of processing allowances.
----------------------------------------------------------------------------------------------------------------
206.159(a)(1)(i)................. 206.159(a) Arm's-length PRODUCE RECORDS--The ORA determined that the
processing contracts. (1)(i) audit process is not covered by the PRA
* * * The lessee shall have because MMS staff asks non-standard questions
the burden of demonstrating to resolve exceptions.
that its contract is arm's-
length. * * *.
206.159(a)(1)(i)................. 206.159(a)(1)(i) * * * The There are no burden hours to report in this
lessee must claim a ICR. All burden hours associated with Form MMS-
transportation allowance by 2014 are included in OMB Control Number 1010-
reporting it on a separate 0140. (Form MMS-2014), expires 10/31/2006.
line entry on the Form MMS-
2014.
206.159(a)(1)(iii)............... 206.159(a)(1)(iii) * * * When PRODUCE RECORDS--The ORA determined that the
MMS determines that the audit process is not covered by the PRA
value of the processing may because MMS staff asks non-standard questions
be unreasonable, MMS will to resolve exceptions.
notify the lessee and give
the lessee an opportunity to
provide written information
justifying the lessee's
processing costs.
-----------------
206.159(a)(3).................... 206.159(a)(3) If an arm's- 330 1 330
length processing contract
includes more than one gas
plant product and the
processing costs
attributable to each product
cannot be determined from
the contract, the lessee
shall propose an allocation
procedure to MMS. * * * The
lessee shall submit all
relevant data to support its
proposal. * * *.
-----------------
206.159(b)(1).................... 206.159(b) Non-arm's-length There are no burden hours to report in this
or no contract. (1) * * * ICR. All burden hours associated with Form MMS-
The lessee must claim a 2014 are included in OMB Control Number 1010-
processing allowance by 0140 (Form MMS-2014), expires 10/31/2006.
reflecting it as a separate
line entry on the Form MMS-
2014. * * *.
-----------------
206.159(b)(2)(iv)................ 206.159(b)(2)(iv) * * * When 100 1 100
a lessee has elected to use
either method for a
processing plant, the lessee
may not later elect to
change to the alternative
without approval of the MMS.
206.159(b)(2)(iv)(A)............. 206.159(b)(2)(iv)(A) * * * .............. .............. ..............
After an election is made,
the lessee may not change
methods without MMS
approval. * * *.
[[Page 42376]]
206.159(b)(4).................... 206.159(b)(4) A lessee may 100 1 100
apply to MMS for an
exception from the
requirements that it compute
actual costs in accordance
with paragraphs (b)(1)
through (b)(3) of this
section. * * *.
206.159(c)(1)(i)................. 206.159(c) Reporting There are no burden hours to report in this
requirements--(1) Arm's- ICR. All burden hours associated with Form MMS-
length contracts. (i) The 2014 are included in OMB Control Number 1010-
lessee must notify MMS of an 0140 (Form MMS-2014), expires 10/31/2006.
allowance based on incurred
costs by using a separate
line entry on the Form MMS-
2014.
206.159(c)(1)(ii)................ 206.159(c)(1)(ii) The MMS may PRODUCE RECORDS--The ORA determined that the
require that a lessee submit audit process is not covered by the PRA
arm's-length processing because MMS staff asks non-standard questions
contracts and related to resolve exceptions.
documents.* * *.
206.159(c)(2)(i)................. 206.159(c)(2) Non-arm's- There are no burden hours to report in this
length or no contract. (i) ICR. All burden hours associated with Form MMS-
The lessee must notify MMS 2014 are included in OMB Control Number 1010-
of an allowance based on 0140 (Form MMS-2014), expires 10/31/2006.
incurred costs by using a
separate line entry on the
Form MMS-2014.
206.159(c)(2)(iii)............... 206.159(c)(2)(iii) Upon PRODUCE RECORDS--The ORA determined that the
request by MMS, the lessee audit process is not covered by the PRA
shall submit all data used because MMS staff asks non-standard questions
to prepare the allowance to resolve exceptions.
deduction. * * *.
206.159(e)(2).................... 206.159(e) Adjustments. (2) There are no burden hours to report in this
For lessees processing ICR. All burden hours associated with Form MMS-
production from onshore 2014 are included in OMB Control Number 1010-
Federal leases, the lessee 0140 (Form MMS-2014), expires 10/31/2006.
must submit a corrected Form
MMS-2014 to reflect actual
costs, together with any
payment, in accordance with
instructions provided by MMS.
206.159(e)(3).................... 206.159(e)(3) For lessees There are no burden hours to report in this
processing gas production ICR. All burden hours associated with Form MMS-
from leases on the OCS, if 2014 are included in OMB Control Number 1010-
the lessee's estimated 0140 (Form MMS-2014), expires 10/31/2006.
processing allowance exceeds
the allowance based on
actual costs, the lessee
must submit a corrected Form
MMS-2014 to reflect actual
costs, together with its
payment, in accordance with
instructions provided by
MMS. * * *.
-----------------
Total........................ ............................. .............. 109 21,815
----------------------------------------------------------------------------------------------------------------
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 is not
required 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 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 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.
The PRA also requires agencies to estimate the total annual
reporting ``non-hour cost'' burden to respondents or recordkeepers
resulting from the collection of information. We have not identified
non-hour cost burdens for this information collection. If you have
costs to generate, maintain, and disclose this information, you should
comment and provide your total capital and startup cost components or
annual operation, maintenance, and purchase of service components. You
should describe the methods you use to estimate major cost factors,
including system and technology acquisition, expected useful life of
capital equipment, discount rate(s), and the period over which you
incur costs. Capital and startup costs include, among other items,
computers and software you purchase to prepare for collecting
information; monitoring, sampling, and testing equipment; and record
storage facilities. Generally, your estimates should not include
equipment or services purchased: (i) Before October 1, 1995; (ii) to
comply with requirements not associated with the information
collection; (iii) for reasons other than to provide information or keep
records for the Government; or (iv) as part of customary and usual
business or private practices.
We will summarize written responses to this notice and address them
in our ICR submission for OMB approval, including appropriate
adjustments to the estimated burden. We will provide a copy of the ICR
to you without charge upon request. The ICR also will be posted on our
Web site at http://www.mrm.mms.gov/Laws_R_D/FRNotices/FRInfColl.htm.
Public Comment Policy: We will post all comments in response to
this notice on our Web site at http://www.mrm.mms.gov/Laws_R_D/FRNotices/FRInfColl.htm.
We also will make copies of the comments
available for public review, including names and addresses of
respondents, during regular business hours at our offices in Lakewood,
Colorado. Upon request, we will withhold an individual respondent's
home address from the public record, as allowable by law. There also
may be circumstances in which we would withhold from the rulemaking
record a respondent's
[[Page 42377]]
identity, as allowable by law. If you request that we withhold your
name and/or address, state your request prominently at the beginning of
your comment. However, we will not consider anonymous comments. We will
make all submissions from organizations or businesses, and from
individuals identifying themselves as representatives or officials of
organizations or businesses, available for public inspection in their
entirety.
MMS Information Collection Clearance Officer: Arlene Bajusz (202)
208-7744.
Dated: July 14, 2005.
Richard Adamski,
Acting Associate Director for Minerals Revenue Management.
[FR Doc. 05-14528 Filed 7-21-05; 8:45 am]
BILLING CODE 4310-MR-P