[Federal Register: November 6, 2006 (Volume 71, Number 214)]
[Notices]
[Page 64978-64979]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06no06-43]
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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 an extension of a currently approved information
collection (OMB Control Number 1010-0090).
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SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), 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 information collection request (ICR) concerns the
paperwork requirements in the regulations under 30 CFR part 216,
subpart B. The title of this ICR is 30 CFR 216.57 Stripper Royalty Rate
Reduction Notification. The form associated with this ICR is Form MMS-
4377, Stripper Royalty Rate Reduction Notification.
DATES: Submit written comments on or before January 5, 2007.
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,
West 6th Ave. and Kipling Blvd., 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. 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 216.57 Stripper Royalty Rate Reduction Notification.
OMB Control Number: 1010-0090.
Bureau Form Number: Form MMS-4377, Stripper Royalty Rate Reduction
Notification.
Abstract: The Secretary of the U.S. Department of the Interior is
responsible for collecting royalties from lessees who produce minerals
from leased Federal and Indian lands. The Secretary is required by
various laws to manage mineral resources production on Federal and
Indian lands, collect the royalties due, and distribute the funds in
accordance with those laws.
The Secretary also has a trust responsibility to manage Indian
lands and seek advice and information from Indian beneficiaries. The
MMS performs the royalty management functions and assists the Secretary
in carrying out the Department's trust responsibility for Indian lands.
The Federal Oil and Gas Royalty Management Act (FOGRMA) of 1982, 30
U.S.C. 1701 et seq., states in Section 101(a) that the Secretary ``* *
* shall 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.'' The persons or entities
described at 30 U.S.C. 1713 are required to make reports and provide
reasonable information as defined by the Secretary. Applicable public
laws pertaining to mineral leases on Federal and Indian lands are
located on our Web site at http://www.mrm.mms.gov/Laws_R_D/PublicLawsAMR.htm
.
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.
The Bureau of Land Management, the surface management agency for
Federal onshore leases, granted royalty rate reductions to operators of
stripper oil properties producing an average of less than 15 barrels of
oil per eligible well per well-day for applicable sales periods from
October 1, 1992 through January 31, 2006. See 43 CFR 3103.4-2. The
purpose of these royalty rate reductions was to encourage continued
production, provide an incentive for enhanced oil recovery projects,
discourage abandonment of properties producing an average of less than
15 barrels of oil per eligible well per well-day, and reduce the
operator's expenses. The royalty rate for a stripper oil property was
lower than the royalty rate reflected in the lease and thus reduced the
amount of revenues paid to the Federal Government.
Reporters used the Form MMS-4377 to notify MMS of royalty rate
changes for production through January 31, 2006. Operators submitted an
initial Form MMS-4377 when a new property qualified as a stripper oil
property. Reporters submitted Form MMS-4377 to notify MMS of a royalty
rate reduction that was lower than the initial royalty rate reduction
on an existing stripper oil property (out-year notification). The
decision to request an initial royalty rate reduction was voluntary;
however, failure to timely submit the out-year notification resulted in
the royalty rate change being denied. Although the benefits under 43
CFR 3103.4-2 terminated effective February 1, 2006, MMS continues to
verify submitted notifications and sometimes requires the operator to
submit an amended notification.
Proprietary information submitted to MMS under this collection is
protected, and no items of a sensitive nature are collected. The
requirement to respond is
[[Page 64979]]
required to obtain the benefit of a royalty rate reduction.
Frequency: As requested by MMS.
Estimated Number and Description of Respondents: 150 operators of
stripper oil properties producing an average of less than 15 barrels of
oil per eligible well per well-day.
Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 180
hours.
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 estimated burden hours by CFR
section and paragraph:
Respondents' Estimated Annual Burden Hours
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Reporting and
30 CFR 216 Subpart B recordkeeping Hour burden Average number of Annual burden
requirement annual responses hours
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216.57......................... Stripper royalty rate 1.2 150 180
reduction
notification.
In accordance with its
regulations at 43 CFR
3103.4-1, titled
``Waiver, suspension,
or reduction of
rental, royalty, or
minimum royalty,''
the Bureau of Land
Management (BLM) may
grant reduced royalty
rates to operators of
low producing oil
leases to encourage
continued production.
Operators who have
been granted a
reduced royalty
rate(s) by BLM must
submit a Stripper
Royalty Rate
Reduction
Notification (Form
MMS-4377) to MMS for
each 12-month
qualifying period
that a reduced
royalty rate(s) is
granted.
[58 FR 64903, Dec. 10,
1993].
Please note the BLM
citation and title
changed to 43 CFR
3103.4-2 Stripper
well royalty
reductions.
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Total Burden............... ...................... ................. 150 180
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Estimated Annual Reporting and Recordkeeping ``Non-hour Cost''
Burden: We have identified no ``non-hour cost'' burden associated with
the collection of information.
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. 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 a respondent's
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: October 24, 2006.
Lucy Querques Denett,
Associate Director for Minerals Revenue Management.
[FR Doc. E6-18665 Filed 11-3-06; 8:45 am]
BILLING CODE 4310-MR-P