64588 Federal Register / Vol. 83, No. 241 / Monday, December 17, 2018 / Notices 

IOWA 

Van Buren County 

Midway Stock Farm Barn, (Louden 

Machinery Company, Fairfield Iowa MPS), 

0.3 mi. S of jct. of IA 1 and IA16, 

Keosauqua vicinity, OT99000126 

Additional documentation has been 

received for the following resources: 

NORTH CAROLINA 

Buncombe County 

Asheville School, Roughly bounded by 

Patton Ave., Southern RR line, US 40, Sand 

Hill Rd., and Malvern Hills subdivision, 

Asheville, AD96000614 

Sampson County 

Clinton Commercial Historic District, 

Roughly bounded by Vance, Elizabeth, 

Wall, and Sampson Sts., Clinton, 

AD02000568 

Authority: Section 60.13 of 36 CFR part 60 

Dated: December 4, 2018. 

Christopher Hetzel, 

Acting Chief, National Register of Historic 

Places/National Historic Landmarks Program. 

[FR Doc. 2018–27208 Filed 12–14–18; 8:45 am] 

BILLING CODE 4312–52–P 

DEPARTMENT OF THE INTERIOR 

Office of Natural Resources Revenue 

[Docket No. ONRR–2011–0021; DS63644200 

DRT000000.CH7000 190D1113RT; OMB 

Control Number 1012–0002] 

Agency Information Collection 

Activities: Submission to the Office of 

Management and Budget for Review 

and Approval; Indian Oil & Gas 

Valuation 

AGENCY: Office of the Secretary; Office 

of Natural Resources Revenue, Interior. 

ACTION: Notice of information collection; 

request for comment. 

SUMMARY: In accordance with the 

Paperwork Reduction Act of 1995 

(PRA), the Office of Natural Resources 

Revenue (ONRR), is proposing to renew 

an information collection with 

revisions. ONRR seeks renewed 

authority to collect information from 

lessees using five forms necessary to 

determine the correct royalties to be 

collected on behalf of Indian Tribes and 

individual Indian mineral owners. 

Revisions from the prior approval to 

collect this information are necessary 

because the information collection 

requirements on form ONRR–4410 were 

reduced by a rule in 2015. 

DATES: Interested persons are invited to 

submit written comments on or before 

January 16, 2019. 

ADDRESSES: Send written comments on 

this information collection request (ICR) 

to the Office of Management and 

Budget’s Desk Officer for the 

Department of the Interior by email to 

OIRA_Submission@omb.eop.gov; or by 

facsimile to (202) 395–5806. Please 

provide a copy of your comments to Mr. 

Armand Southall, Regulatory Specialist, 

ONRR, P.O. Box 25165, MS 64400B, 

Denver, Colorado 80225–0165; or by 

email to Armand.Southall@onrr.gov. 

Please reference ‘‘OMB Control Number 

1012–0002’’ in the subject line of your 

comments. 

FOR FURTHER INFORMATION CONTACT: To 

request additional information about 

this ICR, contact Ms. Lee-Ann Martin, 

telephone at (303) 231–3313, or email to 

LeeAnn.Martin@onrr.gov. You may also 

view the ICR at http://www.reginfo.gov/ 

public/do/PRAMain. 

SUPPLEMENTARY INFORMATION: In 

accordance with the Paperwork 

Reduction Act of 1995, we provide the 

general public and other Federal 

agencies with an opportunity to 

comment on new, proposed, revised, 

and continuing collections of 

information. This helps us assess the 

impact of our information collection 

requirements and minimize the public’s 

reporting burden. It also helps the 

public understand our information 

collection requirements and provide the 

requested data in the desired format. 

We published a notice, with a 60-day 

public comment period soliciting 

comments for this collection of 

information, in the Federal Register on 

July 11, 2018 (83 FR 32141). During the 

60-day period, we specifically reached 

out to five companies impacted by this 

ICR to request input. In response to the 

outreach, we received three responsive 

comments. 

The first comment we received stated 

the following: 

‘‘We do not have an update to provide 

on the estimate burden. We can offer 

comment in regards to the industry 

submission process of the related forms 

referenced in the ICR (ONRR–4109, 

ONRR–4110, ONRR–4295, ONRR–4393, 

ONRR–4410 and ONRR–4411) with 

regard to the use of technology. Value 

can be added to both industry and 

ONRR by eliminating the paper 

submission form and having the 

company submit the form via the ONRR 

online system. When the request is 

submitted, ONRR staff should review 

and approve that will notate the date 

and name of approver. This submission 

should also be available to pull and 

view online through the 

dwportal.onrr.gov website History 

Database/Report tool. Currently, if a 

company wanted to verify the forms 

submitted to ONRR, they would have to 

contact them directly and they would 

pull a report and send to the company.’’ 

The second comment we received 

stated the following: 

‘‘I’m sorry I haven’t gotten back to you 

on this. I read through the document 

and I didn’t see any burden estimates 

that I thought were far enough off to 

make official comment on. The burden 

estimates for each case probably run 

high when things are running smoothly, 

and run low when a big problem 

presents itself. I’m sorry I can’t be of 

more help.’’ 

The third comment we received stated 

the following: 

‘‘We do not have comments to submit 

at this time.’’ 

Once again, we are soliciting 

comments on this ICR that is described 

below. We are especially interested in 

public comment addressing the 

following issues: (1) Is the collection 

necessary to the proper functions of 

ONRR; (2) will this information be 

processed and used in a timely manner; 

(3) is the estimate of the burden 

accurate; (4) how might ONRR enhance 

the quality, usefulness, and clarity of 

the information collected; and (5) how 

might ONRR minimize the burden of 

this collection on the respondents, 

including through the use of 

information technology. 

Comments that you submit in 

response to this notice are a matter of 

public record. Before including 

Personally Identifiable Information (PII), 

such as your address, phone number, 

email address, or other personal 

identifying information in your 

comment(s), you should be aware that 

your entire comment, including PII, may 

be made available to the public at any 

time. While you may ask us, in your 

comment, to withhold your PII from 

public view, we cannot guarantee that 

we will be able to do so. 

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). Under various laws, the 

Secretary’s responsibility is to manage 

mineral resources production on 

Federal and Indian lands and the OCS, 

collect the royalties and other mineral 

revenues due, and distribute the funds 

collected. The Secretary also has 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. By collecting information 

from the records of the lessee or others 


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involved in developing, transporting, 

processing, purchasing, or selling of 

such minerals, we ensure that lessees 

accurately value production and 

appropriately pay royalties. Public laws 

pertaining to mineral leases on Federal 

and Indian lands and the OCS are 

available at https://www.onrr.gov/Laws_

R_D/PubLaws/index.htm. 

The information collections that we 

cover in this ICR involve five forms, 

forms ONRR–4109, ONRR–4110, 

ONRR–4295, ONRR–4410, and ONRR– 

4411. References to these forms, and 

form ONRR–4393, which is approved 

under OMB Control Number 1012–0005, 

are identified in: 30 CFR part 1202, 

subparts C and J, which pertain to 

Indian oil and gas royalties; part 1206, 

subparts B and E, which govern the 

valuation of oil and gas produced from 

leases on Indian lands; and part 1207, 

which pertains to recordkeeping. Indian 

Tribes and individual Indian mineral 

owners receive all royalties generated 

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 removed 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 data reported is 

subject to subsequent audit and 

adjustment. 

Indian Oil Valuation 

Regulations at title 30 CFR part 1206, 

subpart B, govern the valuation for 

royalty purposes of oil produced from 

Indian oil and gas leases (Tribal and 

allotted), and are consistent with 

mineral leasing laws, other applicable 

laws, and lease terms. Generally, these 

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. Transportation 

allowances may also be available to the 

lessee. 

From information collected on form 

ONRR–4110, Oil Transportation 

Allowance Report, ONRR and Tribal 

audit personnel evaluate (1) whether 

lessee-reported transportation 

allowances are within regulatory 

allowance limitations and calculated 

under applicable regulations; and (2) 

whether the lessees reported and paid 

the proper amount of royalties. Lessees 

must use form ONRR–4110 for both 

non-arm’s-length contract or no contract 

situations. 

Indian Gas Valuation 

Regulations at 30 CFR part 1206, 

subpart E, govern the valuation for 

royalty purposes of natural gas 

produced from Indian oil and gas leases 

(Tribal and allotted). These regulations 

require reporting on the four forms that 

are the subject of this ICR, forms ONRR– 

4109, ONRR–4295, ONRR–4410, and 

ONRR–4411: 

• From information collected on form 

ONRR–4109, Gas Processing Allowance 

Summary Report, ONRR and Tribal audit 

personnel evaluate (1) whether lesseereported processing allowances are within 

regulatory allowance limitations and 

calculated under applicable regulations; and 

(2) whether the lessees reported and paid the 

proper amount of royalties. 

• From information collected on form 

ONRR–4295, Gas Transportation Allowance 

Report, ONRR and Tribal audit personnel 

evaluate (1) whether lessee-reported 

transportation allowances are within 

regulatory allowance limitations and 

calculated under applicable regulations; and 

(2) whether the lessees reported and paid the 

proper amount of royalties. 

• Lessees use form ONRR–4410, 

Accounting for Comparison (Dual 

Accounting), to certify that dual accounting 

is not required on an Indian lease or to make 

an election for actual or alternative dual 

accounting for Indian leases. Most Indian 

leases contain the requirement to perform 

accounting for comparison (dual accounting) 

for gas produced from the lease. Therefore, 

lessees must elect to perform actual dual 

accounting as defined in 30 CFR 1206.176, or 

alternative dual accounting, as defined in 30 

CFR 1206.173. 

• The regulations require that lessees 

submit form ONRR–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. 

This ICR also allows ONRR to collect 

information to support a lessee’s request 

for exclusion or the termination of 

exclusion under 30 CFR 1206.174. An 

Indian Tribe may ask ONRR to exclude 

some or all of its leases from valuation 

under this section. ONRR will consult 

with Bureau of Indian Affairs regarding 

the Tribe’s request. If ONRR approves 

the request for the Tribal lease, the 

lessee must value the production as 

specified in § 1206.174. The lessee may 

ask ONRR for guidance in determining 

value and may propose a valuation 

method to ONRR. The lessee must 

submit all available data related to the 

proposal and any additional information 

that ONRR deems necessary. 

In addition, this ICR allows ONRR, 

under 30 CFR 1206.175, to collect 

information to support a lessee’s request 

to report royalties based on the volumes 

allocable to its lease acreage under the 

terms of an approved Federal 

agreement. Under this section, a lessee 

may also submit information to support 

a request for ONRR to approve other 

methods for determining the quantity of 

residue gas and gas plant products 

allocable to each lease. 

Indian Oil and Gas 

Regulations at 30 CFR 1206.56(b)(2) 

and 1206.177(c)(2) and (c)(3) govern the 

valuation for royalty purposes of oil and 

gas produced from Indian oil and gas 

leases (Tribal and allotted), and are 

consistent with mineral leasing laws, 

other applicable laws, and lease terms. 

These regulations require reporting on 

one form—that is also the subject of this 

ICR—form ONRR–4393. 

Lessees must submit form ONRR– 

4393, Request to Exceed Regulatory 

Allowance Limitation, for both Federal 

and Indian leases to request to exceed 

the regulatory allowance limitation. 

Most of the burden hours for this form 

are incurred on Federal leases; 

therefore, OMB approved this form 

under OMB Control Number 1012–0005 

titled Federal Oil and Gas Valuation, 

which pertains to Federal oil and gas 

leases. However, we include a 

discussion of this 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 ONRR–4393. This form provides 

ONRR with the data necessary to make 

a decision whether to approve or deny 

the request and track deductions on 

subsequent royalty reports. 

Revisions to ICR 

This is an ICR with revisions because 

it takes into account the final rule 

published May 1, 2015, which amended 

ONRR’s Indian oil valuation regulations 

(80 FR 24794). This ICR requires minor 

revisions to note changes to its authority 

when the final rule amended 30 CFR 

part 1206, subpart B. The two changes 

relevant to this ICR are that the 

amendment eliminated: (1) The form 

ONRR–4110 filing requirements for 

arm’s-length transportation allowance; 

and (2) the pre-filing of form ONRR– 

4110 prior to claiming a non-arm’slength transportation allowance. The 

final rule noted that OMB approved a 

total of 220 burden hours for lessees to 

submit their respective form ONRR– 

4110 under this ICR—OMB Control 

Number 1012–0002. It also noted that 

‘‘there will be no additional burden 

hours because this rule will 

insignificantly reduce the burden hours 


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associated with the Oil Transportation 

Allowance Report.’’ Under the revised 

Indian oil valuation regulations, rather 

than submitting estimated 

transportation cost information on the 

form and then following up with actual 

cost information at the end of the 

reporting cycle, lessees need only to 

provide actual cost information. Also, 

lessees that have arm’s-length 

transportation costs are no longer 

required to submit form ONRR–4110 to 

report these costs, but will, instead, 

submit copies of the actual contracts to 

ONRR. 

OMB Approval 

We are requesting OMB’s approval to 

continue to collect this information, 

with revisions. 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 the 

proprietary information that it receives 

and does not collect items of a sensitive 

nature. The requirement to report is 

mandatory for form ONRR–4410, 

Accounting for Comparison [Dual 

Accounting], and for form ONRR–4411, 

Safety Net Report, under certain 

circumstances. The lessees are required 

to report on forms ONRR–4109, ONRR– 

4110, ONRR–4295, and ONRR–4393 in 

order to obtain a benefit. 

Title of Collection: Indian Oil and Gas 

Valuation, 30 CFR parts 1202, 1206, and 

1207. 

OMB Control Number: 1012–0002. 

Form Numbers: ONRR–4109, ONRR– 

4110, ONRR–4295, ONRR–4410, and 

ONRR–4411. 

Type of Review: Revision of a 

currently approved collection. 

Respondents/Affected Public: 

Businesses. 

Total Estimated Number of Annual 

Respondents: 146 lessees of Indian 

leases. 

Total Estimated Number of Annual 

Responses: 146. 

Estimated Completion Time per 

Response: 8.9 hours. 

Total Estimated Number of Annual 

Burden Hours: 1,299 hours. 

Respondent’s Obligation: Mandatory, 

or Required to Obtain or Retain a 

Benefit. 

Frequency of Collection: Annually 

and on occasion. 

Total Estimated Annual Nonhour 

Burden Cost: None. 

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

30 CFR Reporting and recordkeeping requirement Hour 

burden 

Average 

number of 

annual 

responses 

Annual 

burden 

hours 

Part 1202—ROYALTIES 

Subpart C—Federal and Indian Oil 

1202.101 ..................... Standards for reporting and paying royalties. Report oil volumes in 

barrels of clean oil of 42 standard U.S. gallons (231 cubic inches 

each) at 60 °F.

Burden covered under § 1210.52 in OMB Control 

Number 1012–0004. 

Subpart J—Gas Production From Indian Leases 

1202.551(b) ................ How do I determine the volume of production for 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 * * *.

Burden covered under § 1210.52 in OMB Control 

Number 1012–0004. 

1202.551(c) ................. You and all other persons paying royalties on the lease may ask 

ONRR for permission to report and pay royalties based on your 

entitlements * * *.

1 1 1 

1202.558(a) and (b) .... What standards do I use to report and pay royalties on gas? (a) 

You must report gas volumes * * * (b) You must report residue 

gas and gas plant product volumes * * *.

Burden covered under § 1210.52 in OMB Control 

Number 1012–0004. 

Part 1206—PRODUCT VALUATION 

Subpart B—Indian Oil 

1206.56(b)(2) .............. What general transportation allowance requirements apply to me? 

* * * (2) Upon your request, 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 ONRR–4393, Request to Exceed Regulatory 

Allowance Limitation) must contain all relevant and supporting 

documentation necessary for ONRR to make a determination 

* * *.

4 1 4 


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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued 

30 CFR Reporting and recordkeeping requirement Hour 

burden 

Average 

number of 

annual 

responses 

Annual 

burden 

hours 

1206.57(a)(1), (2), and 

(3).

How do I determine a transportation allowance if I have an arm’slength transportation contract? Arm’s-length transportation. (a)(1) 

* * * You have the burden of demonstrating that your contract is 

arm’s-length. (2) You must 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 that 

ONRR receives your report, which claims the allowance on form 

ONRR–2014. (3) * * * 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.

AUDIT PROCESS. See note. 

1206.57(a)(4)(i) ........... * * * Except as provided in this paragraph, you may not take an allowance for the costs of transporting lease production, which is 

not royalty-bearing, without ONRR’s approval.

Burden covered under § 1206.57(a)(5). 

1206.57(a)(4)(ii) .......... Notwithstanding the requirements of paragraph (a)(4)(i) of this section, you may propose to ONRR a cost allocation method on the 

basis of the values of the products transported * * *.

20 1 20 

1206.57(a)(5) .............. 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, you must 

propose an allocation procedure to ONRR * * *.

40 1 40 

1206.57(a)(5)(ii) .......... You must submit to ONRR all available data to support your proposal.AUDIT PROCESS. See note. 

1206.57(a)(5)(iii) ......... You must submit your initial proposal within 3 months after the last 

day of the month for which you request a transportation allowance, whichever is later (unless ONRR approves a longer period).

4 1 4 

1206.57(b)(1) .............. Reporting requirements. If ONRR requests, you must submit all 

data used to determine your transportation allowance * * *.

AUDIT PROCESS. See note. 

1206.57(b)(2) .............. You must report transportation allowances as a separate entry on 

form ONRR–2014 * * *.

Burden covered under § 1210.52 in OMB Control 

Number 1012–0004. 

1206.58(a)(1) .............. How do I determine a transportation allowance if I have a nonarm’s-length transportation contract or have no contract? Nonarm’s-length or no contract. If you have a non-arm’s-length transportation contract or no contract, including those situations where 

you or your affiliate perform(s) transportation services for you, the 

transportation allowance is based on your reasonable, actual 

costs.

AUDIT PROCESS. See note. 

1206.58(a)(2) .............. You must submit the actual cost information to support the allowance to ONRR on form ONRR–4110, Oil Transportation Allowance Report, within 3 months after the end of the calendar year 

to which the allowance applies * * *.

6 1 6 

1206.58(a)(3)(iv) ......... * * * After you have elected to use either method for a transportation system, you may not later elect to change to the other alternative without approval of ONRR.20 1 20 

1206.58(a)(3)(iv)(A) .... * * * After you make an election, you may not change methods 

without ONRR’s approval * * *.

20 1 20 

1206.58(a)(4)(i) ........... * * * Except as provided in this paragraph (a)(4)(i), you may not 

take an allowance for transporting lease production that is not 

royalty bearing without ONRR’s approval.

40 1 40 

1206.58(a)(4)(ii) .......... Notwithstanding the requirements of paragraph (a)(4)(i) of this section, you may propose to ONRR a cost allocation method on the 

basis of the values of the products transported * * *.

20 1 20 


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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued 

30 CFR Reporting and recordkeeping requirement Hour 

burden 

Average 

number of 

annual 

responses 

Annual 

burden 

hours 

1206.58(a)(5)(ii) and 

(iii).

Where both gaseous and liquid products are transported through 

the same transportation system, you must propose a cost allocation procedure to ONRR * * * (ii) You must submit to ONRR all 

available data to support your proposal. * * * (iii) You must submit your initial proposal within 3 months after the last day of the 

month for which you request a transportation allowance (unless 

ONRR approves a longer period).

20 1 20 

1206.58(a)(6) .............. You may apply to ONRR for an exception from the requirement that 

you compute actual costs under paragraphs (a)(1) through (5) of 

this section.

20 1 20 

1206.58(b)(1) .............. Reporting requirements. If ONRR requests, you must submit all 

data used to determine your transportation allowance, You must 

provide the data within a reasonable period of time that ONRR 

will determine.

AUDIT PROCESS. See note. 

1206.58(b)(2) .............. You must report transportation allowances as a separate entry on 

form ONRR–2014 * * *.

Burden covered under § 1210.52 in OMB Control 

Number 1012–0004. 

1206.58(b)(3) .............. ONRR may require you to submit all of the data that you used to 

prepare your form ONRR–4110. You must submit the data within 

a reasonable period of time that ONRR determines.

AUDIT PROCESS. See note. 

1206.59(a) .................. What interest applies if I improperly report a transportation allowance? If you deduct a transportation allowance on form ONRR– 

2014 without complying with the requirements of §§ 1206.56 and 

1206.57 or § 1206.58, you must pay additional royalties due plus 

late payment interest calculated under § 1218.54 of this chapter.

Burden covered under § 1210.52 in OMB Control 

Number 1012–0004. 

1206.60(a) .................. What reporting adjustments must I make for transportation allowances? If your actual transportation allowance is less than the 

amount that you claimed on form ONRR–2014 for each month 

during the allowance reporting period, you must pay additional 

royalties due, plus late payment interest calculated under 

§ 1218.54 of this chapter.

Burden covered under § 1210.52 in OMB Control 

Number 1012–0004. 

1206.60(c) ................... If you make an adjustment under paragraph (a) or (b) of this section, then you must submit a corrected form ONRR–2014 to reflect actual costs, together with any payment, using instructions 

that ONRR provides.

Burden covered under § 1210.52 in OMB Control 

Number 1012–0004. 

1206.61(a)(2) .............. How will ONRR determine if my royalty payments are correct? 

* * * If ONRR directs you to use a different royalty value, you 

must pay any additional royalties due plus late payment interest 

calculated under § 1218.54 of this chapter.

Burden covered under § 1210.52 in OMB Control 

Number 1012–0004. 

1206.62(a) .................. How do I request a value determination? You may request a value 

determination from ONRR regarding any oil produced. Your request must include: (1) Be in writing. (2) Identify specifically all 

leases involved, all interest owners of those leases, the designee(s), and the operator(s) for those leases. (3) Completely explain all relevant facts. * * * (4) Include copies of all relevant 

documents. (5) Provide your analysis of the issue(s) * * * (6) 

Suggest your proposed valuation method.

20 1 20 

1206.62(c)(2) .............. After the Assistant Secretary [for Indian Affairs] issues a value determination, you must make any adjustments to royalty payments 

that follow from the determination, and, if you owe additional royalties, you must pay the additional royalties due plus late payment interest calculated under § 1218.54 of this chapter.

Burden covered under § 1210.52 in OMB Control 

Number 1012–0004. 

1206.64 ....................... What records must I keep to support my calculations of value under 

this subpart? If you determine the value of your oil under this 

subpart, you must retain all data relevant to the determination of 

royalty value * * *.

AUDIT PROCESS. See note. 


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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued 

30 CFR Reporting and recordkeeping requirement Hour 

burden 

Average 

number of 

annual 

responses 

Annual 

burden 

hours 

Part 1206—PRODUCT VALUATION 

Subpart E—Indian Gas 

1206.172(b)(1)(ii) ........ How do I value gas produced from leases in an index zone? (b) 

Valuing residue gas and gas before processing. (1)(ii) Gas production that you certify on form ONRR–4410, Certification for Not 

Performing Accounting for comparison (Dual Accounting), is not 

processed before it flows into a pipeline with an index but which 

may be processed later; * * *.

4 58 232 

1206.172(e)(6)(i) and 

(iii).

(e) Determining the minimum 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 

ONRR–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 

ONRR–4411 is due or is filed, whichever is later * * *.

3 11 33 

1206.172(e)(6)(ii) ........ You must pay and report on form ONRR–2014 additional royalties 

due no later than June 30 following each calendar year * * *.

Burden covered under § 1210.52 in OMB Control 

Number 1012–0004. 

1206.172(f)(1)(ii), 

(f)(2), and (f)(3).

(f) Excluding some or all 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 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 * * *.

40 1 40 

1206.173(a)(1) ............ How do I calculate the alternative methodology for dual accounting? (a) Electing a dual accounting method. (1) * * * You may 

elect to perform the dual accounting calculation according to either § 1206.176(a) (called actual dual accounting), or paragraph 

(b) of this section (called the alternative methodology for dual accounting).

2 12 24 

1206.173(a)(2) ............ You must make a separate election to use the alternative methodology for dual accounting for your Indian leases in each ONRRdesignated area * * *.Burden covered under § 1206.173(a)(1). 

1206.174(a)(4)(ii) ........ How do I value gas production when an index-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 ONRR–2014 to ONRR by the due date 

specified in the written notice from ONRR of the major portion 

value * * *..

Burden covered under § 1210.52 in OMB Control 

Number 1012–0004. 

1206.174(b)(1)(i) and 

(iii); (b)(2); (d)(2).

(b) Arm’s-length contracts. * * * ........................................................

(1) The value of gas, residue gas, or any gas plant product you sell 

under an arm’s-length contract is the gross proceeds accruing to 

you or your affiliates * * *.

AUDIT PROCESS. See note. 

(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 * * * ................................................................... 


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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued 

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burden 

Average 

number of 

annual 

responses 

Annual 

burden 

hours 

(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) ................ Supporting data. If you determine the value of production under 

paragraph (c) of this section, you must retain all data relevant to 

determination of royalty value.

AUDIT PROCESS. See note. 

1206.174(f) ................. Value guidance. You may 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 * * *.

40 1 40 

1206.175(d)(4) ............ How do I determine 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 * * *.

20 1 20 

1206.176(b) ................ How do I perform accounting for comparison? * * * If you are required to account for comparison, you may elect to use the alternative dual accounting methodology provided for in § 1206.173 

instead of the provisions in paragraph (a) of this section * * *.

Burden covered under § 1206.173(a)(1). 

1206.176(c) ................. * * * If you do not perform dual accounting, you must certify to 

ONRR that gas flows into such a pipeline before it is processed 

* * *.

Burden covered under § 1206.172(b)(1)(ii). 

Transportation Allowances 

1206.177(c)(2) and 

(c)(3).

What general requirements 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. * * * (3) Your application for exception (using form ONRR–4393, Request to Exceed Regulatory 

Allowance Limitation) must contain all relevant and supporting 

documentation necessary for ONRR to make a determination.

Burden covered under § 1206.56(b)(2). 

1206.178(a)(1)(i) ......... How do I determine a transportation allowance? (a) Determining a 

transportation allowance under an arm’s-length contract. (1) This 

paragraph explains how to determine your allowance if you have 

an arm’s-length transportation contract. (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 ONRR–2014.

1 18 18 

1206.178(a)(1)(iii) ....... If ONRR determines that the consideration paid under an arm’slength 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 * * *.

AUDIT PROCESS. See note. 

1206.178(a)(2)(i) and 

(ii).

(a)(2)(i) * * * [Y]ou 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 * * *.

20 1 20 

1206.178(a)(3)(i) and 

(ii).

(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 * * *.

40 1 40 


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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued 

30 CFR Reporting and recordkeeping requirement Hour 

burden 

Average 

number of 

annual 

responses 

Annual 

burden 

hours 

1206.178(b)(1)(ii) ........ (b) Determining a transportation allowance under a non-arm’slength contract or no contract. (1)(ii) You must submit the actual 

cost information to support the allowance to ONRR on form 

ONRR–4295, Gas Transportation Allowance Report, within 3 

months after the end of the 12-month period to which the allowance applies * * *.

15 5 75 

1206.178(b)(2)(iv) ....... You may use either depreciation with a return on undepreciated 

capital investment or a return on depreciable capital investment. 

After you have elected to use either method for a transportation 

system, you may not later elect to change to the other alternative 

without ONRR approval.

20 1 20 

1206.178(b)(2)(iv)(A) .. * * * Once you make an election, you may not change methods 

without ONRR approval.

20 1 20 

1206.178(b)(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.

40 1 40 

1206.178(b)(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 * * *.

20 1 20 

1206.178(b)(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 * * *.

40 1 40 

1206.178(d)(1) ............ (d) Reporting your transportation allowance. (1) If ONRR requests, 

you must submit all data used to determine your transportation 

allowance * * *.

AUDIT PROCESS. See note. 

1206.178(d)(2), (e), 

and (f)(1).

(d) Reporting your transportation allowance. (2) You must report 

transportation allowances as a separate entry on form ONRR– 

2014 * * *.

Burden covered under § 1210.52 in OMB Control 

Number 1012–0004. 

(e) Adjusting incorrect allowances. If for any month the transportation allowance you are entitled to is less than the amount you 

took on form ONRR–2014, you are required to report and pay 

additional royalties due, plus interest computed under § 1218.54 

of this chapter 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 ONRR–2014 by the amount received or credited for the 

affected reporting period * * *. 

 

Processing Allowances 

1206.180(a)(1)(i) ......... How do I determine an 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 ONRR–2014.

1 2 2 

1206.180(a)(1)(iii) ....... If ONRR determines that the consideration paid under an arm’slength 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.

AUDIT PROCESS. See note. 


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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued 

30 CFR Reporting and recordkeeping requirement Hour 

burden 

Average 

number of 

annual 

responses 

Annual 

burden 

hours 

1206.180(a)(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 * * *.

40 1 40 

1206.180(b)(1)(ii) ........ (b) Determining a processing allowance if you have a non-arm’slength contract or no contract. (1)(ii) * * * You must submit the 

actual cost information to support the allowance to ONRR on 

form ONRR–4109, Gas Processing Allowance Summary Report, 

within 3 months after the end of the 12-month period for which 

the allowance applies * * *.

20 12 240 

1206.180(b)(2)(iv) ....... You may use either depreciation with a return on undepreciable 

capital investment or a return on depreciable capital investment. 

After you elect to use either method for a processing plant, you 

may not later elect to change to the other alternative without 

ONRR approval * * *.

20 1 20 

1206.180(b)(2)(iv)(A) .. * * * Once you make an election, you may not change methods 

without ONRR approval * * *.

20 1 20 

1206.180(b)(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.

20 1 20 

1206.180(c)(1) ............ (c) Reporting your processing allowance. (1) If ONRR requests, you 

must submit all data used to determine your processing allowance * * *.

AUDIT PROCESS. See note. 

1206.180(c)(2) and (d) (c)(2) You must report gas processing allowances as a separate 

entry on the form ONRR–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 

ONRR–2014, you are required to pay additional royalties, plus interest computed under § 1218.54 of this chapter from the first 

day of the first month you deducted a processing allowance until 

the date you pay the royalties due * * *.

Burden covered under § 1210.52 in OMB Control 

Number 1012–0004. 

1206.181(c) ................. How do I establish processing costs for dual accounting purposes 

when I do not process the gas? * * * 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.

40 1 40 

PART 1207—SALES AGREEMENTS OR CONTRACTS GOVERNING THE DISPOSAL OF LEASE PRODUCTS 

Subpart A—General Provisions 

1207.4(b) .................... Contracts made pursuant to old form leases. * * * 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 * * *.

AUDIT PROCESS. See note. 

1207.5 ......................... Contract and sales agreement retention. 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.

AUDIT PROCESS. See note. 


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Federal Register / Vol. 83, No. 241 / Monday, December 17, 2018 / Notices 64597 

1Quartz surface products may also generally be 

referred to as engineered stone or quartz, artificial 

stone or quartz, agglomerated stone or quartz, 

synthetic stone or quartz, processed stone or quartz, 

manufactured stone or quartz, and Bretonstone. 

RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued 

30 CFR Reporting and recordkeeping requirement Hour 

burden 

Average 

number of 

annual 

responses 

Annual 

burden 

hours 

Total Burden ........ ............................................................................................................. ........................ 146 1,299 

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. 

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. 

Authority: Paperwork Reduction Act of 

1995 (44 U.S.C. 3501 et seq.). 

Gregory J. Gould, 

Director for Office of Natural Resources 

Revenue. 

[FR Doc. 2018–27259 Filed 12–14–18; 8:45 am] 

BILLING CODE 4335–30–P 

INTERNATIONAL TRADE 

COMMISSION 

[Investigation Nos. 701–TA–606 and 731– 

TA–1416 (Final)] 

Quartz Surface Products From China; 

Scheduling of the Final Phase of 

Countervailing Duty and Antidumping 

Duty Investigations 

AGENCY: United States International 

Trade Commission. 

ACTION: Notice. 

SUMMARY: The Commission hereby gives 

notice of the scheduling of the final 

phase of antidumping and 

countervailing duty investigation Nos. 

701–TA–606 and 731–TA–1416 (Final) 

pursuant to the Tariff Act of 1930 (‘‘the 

Act’’) to determine whether an industry 

in the United States is materially 

injured or threatened with material 

injury, or the establishment of an 

industry in the United States is 

materially retarded, by reason of 

imports of quartz surface products from 

China, provided for in subheading 

6810.99 of the Harmonized Tariff 

Schedule of the United States, 

preliminarily determined by the 

Department of Commerce (‘‘Commerce’’) 

to be subsidized and sold at less-thanfair-value. 

DATES: November 20, 2018. 

FOR FURTHER INFORMATION CONTACT: 

Lawrence Jones (202–205–3358), Office 

of Investigations, U.S. International 

Trade Commission, 500 E Street SW, 

Washington, DC 20436. Hearingimpaired persons can obtain 

information on this matter by contacting 

the Commission’s TDD terminal on 202– 

205–1810. Persons with mobility 

impairments who will need special 

assistance in gaining access to the 

Commission should contact the Office 

of the Secretary at 202–205–2000. 

General information concerning the 

Commission may also be obtained by 

accessing its internet server (https://

www.usitc.gov). The public record for 

these investigations may be viewed on 

the Commission’s electronic docket 

(EDIS) at https://edis.usitc.gov. 

SUPPLEMENTARY INFORMATION: 

Scope.— For purposes of these 

investigations, Commerce has defined 

the subject merchandise as certain 

quartz surface products.1 Quartz surface 

products consist of slabs and other 

surfaces created from a mixture of 

materials that includes predominately 

silica (e.g., quartz, quartz powder, 

cristobalite) as well as a resin binder 

(e.g., an unsaturated polyester). The 

incorporation of other materials, 

including, but not limited to, pigments, 

cement, or other additives does not 

remove the merchandise from the scope 

of the investigations. However, the 

scope of the investigations only 

includes products where the silica 

content is greater than any other single 

material, by actual weight. Quartz 

surface products are typically sold as 

rectangular slabs with a total surface 

area of approximately 45 to 60 square 

feet and a nominal thickness of one, 

two, or three centimeters. However, the 

scope of these investigations includes 

surface products of all other sizes, 

thicknesses, and shapes. 

In addition to slabs, the scope of these 

investigations includes, but is not 

limited to, other surfaces such as 

countertops, backsplashes, vanity tops, 

bar tops, work tops, tabletops, flooring, 

wall facing, shower surrounds, fire 

place surrounds, mantels, and tiles. 

Certain quartz surface products are 

covered by the investigations whether 

polished or unpolished, cut or uncut, 

fabricated or not fabricated, cured or 

uncured, edged or not edged, finished or 

unfinished, thermoformed or not 

thermoformed, packaged or unpackaged, 

and regardless of the type of surface 

finish. In addition, quartz surface 

products are covered by the 

investigations whether or not they are 

imported attached to, or in conjunction 

with, non-subject merchandise such as 

sinks, sink bowls, vanities, cabinets, and 

furniture. If quartz surface products are 

imported attached to, or in conjunction 

with, such non-subject merchandise, 

only the quartz surface product is 

covered by the scope. 

Subject merchandise includes 

material matching the above description 

that has been finished, packaged, or 

otherwise fabricated in a third country, 

including by cutting, polishing, curing, 

edging, thermoforming, attaching to, or 

packaging with another product, or any 

other finishing, packaging, or fabrication 

that would not otherwise remove the 

merchandise from the scope of the 

investigations if performed in the 

country of manufacture of the quartz 

surface products. 

The scope of the investigations does 

not cover quarried stone surface 

products, such as granite, marble, 

soapstone, or quartzite. Specifically 

excluded from the scope of the 

investigations are crushed glass surface 

products. Crushed glass surface 

products are surface products in which 

the crushed glass content is greater than 

any other single material, by actual 

weight. 

The products subject to the scope are 

currently classified in the Harmonized 

Tariff Schedule of the United States 

(HTSUS) under the following statistical 

reporting numbers: 6810.99.0010. 

Subject merchandise may also enter 

under subheadings 6810.11.0010, 

6810.11.0070, 6810.19.1200, 

6810.19.1400, 6810.19.5000, 

6810.91.0000, 6810.99.0080, 

6815.99.4070, 2506.10.0010, 

2506.10.0050, 2506.20.0010, 

2506.20.0080. The HTSUS subheadings 

set forth above are provided for 

convenience and U.S. Customs purposes 

only. The written description of the 

scope is dispositive. 


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