[Federal Register Volume 69, Number 205 (Monday, October 25, 2004)]
[Notices]
[Pages 62286-62289]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-23785]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service


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

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Notice of an extension of a currently approved information 
collection (OMB Control Number 1010-0061).

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SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), we 
are notifying the public that we have submitted to OMB an information 
collection request (ICR) to renew approval of the paperwork 
requirements in the regulations under 30 CFR Part 206, Subpart B--
Indian Oil. This notice also provides the public a second opportunity 
to comment on the paperwork burden of these regulatory requirements. We 
changed the title of this ICR to clarify the regulatory language we are 
covering under 30 CFR Part 206. The previous title was ``Oil 
Transportation Allowances.'' The new title is ``30 CFR Part 206, 
Subpart B--Indian Oil, Sec.  206.55--Determination of Transportation 
Allowances (Form MMS-4110, Oil Transportation Allowance Report).''

DATES: Submit written comments on or before November 24, 2004.

ADDRESSES: Submit written comments by either fax (202) 395-6566 or e-
mail (<a href="/cdn-cgi/l/email-protection#622d2b30233d260d01090716220d0f004c070d124c050d14"><span class="__cf_email__" data-cfemail="82cdcbd0c3ddc6ede1e9e7f6c2edefe0ace7edf2ace5edf4">[email protected]</span></a>) directly to the Office of Information 
and Regulatory Affairs, OMB, Attention: Desk Officer for the Department 
of the Interior (OMB Control Number 1010-0061). Mail or hand-carry a 
copy of your 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, 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 <a href="/cdn-cgi/l/email-protection#c8a5baa5e6aba7a5a5ada6bcbb88a5a5bbe6afa7be"><span class="__cf_email__" data-cfemail="aec3dcc380cdc1c3c3cbc0daddeec3c3dd80c9c1d8">[email protected]</span></a>. 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)

[[Page 62287]]

231-3211, fax (303) 231-3781, e-mail <a href="/cdn-cgi/l/email-protection#4d1e252c3f3f2223630a282f252c3f29390d20203e632a223b"><span class="__cf_email__" data-cfemail="faa9929b88889594d4bd9f98929b889e8eba979789d49d958c">[email protected]</span></a>. You may 
also contact Sharron Gebhardt to obtain copies of the form and the 
regulations requiring the subject collection of information. There is 
no charge for these copies.

SUPPLEMENTARY INFORMATION: Title: 30 CFR Part 206, Subpart B--Indian 
Oil, Sec.  206.55--Determination of Transportation Allowances (Form 
MMS-4110, Oil Transportation Allowance Report).
    OMB Control Number: 1010-0061.
    Bureau Form Number: Form MMS-4110.
    Abstract: The Secretary of the U.S. 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, under the Mineral Leasing Act (30 U.S.C. 1923) and the Outer 
Continental Shelf Lands Act (43 U.S.C. 1353), 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 Secretary has an Indian 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 Indian trust responsibility. 
Applicable citations of the laws pertaining to mineral leases on Indian 
lands include 25 U.S.C. 396d (Chapter 12--Lease, Sale, or Surrender of 
Allotted or Unallotted Lands); 25 U.S.C. 2103 (Indian Mineral 
Development Act of 1982); and Public Law 97-451--Jan. 12, 1983 (Federal 
Oil and Gas Royalty Management Act of 1982).
    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.
    Proprietary information submitted to MMS under this collection is 
protected, and no items of a sensitive nature are collected. The MMS 
requires a response from the lessee in order to obtain the benefit of a 
transportation allowance on an Indian lease.
    Transportation Allowances--Under certain circumstances, the 
regulations authorize lessees to deduct from royalty payments the 
reasonable actual costs of transporting the royalty portion of produced 
minerals from the lease to a sales point not in the immediate lease 
area. The MMS verifies transportation allowances during the product 
valuation verification to determine if the lessee reported and paid the 
proper royalty amount.
    The MMS collects transportation allowance data on Form MMS-4110, 
Oil Transportation Allowance Report. The MMS and tribal personnel use 
the information collected on Form MMS-4110 to evaluate the 
reasonableness of allowances reported and claimed by lessees. To take a 
transportation deduction, lessees must submit Form MMS-4110 before or 
in the same month that they report the transportation allowance on Form 
MMS-2014, Report of Sales and Royalty Remittance (OMB Control Number 
1010-0140, expiration date October 31, 2006).
    The MMS is requesting OMB's approval to continue to collect this 
information. Not collecting this information may impact our ability to 
ascertain the reasonableness of the costs claimed for transportation 
allowances.
    Frequency: Annually and on occasion.
    Estimated Number and Description of Respondents: 6 Indian lessees.
    Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 60 
hours.
    We base our calculations of the estimated burden hours on the 
reasonable expectation of 12 responses from 6 Indian lessees. We 
include reporting requirements (Sec.  206.55(c)(1)(iv) and Sec.  
206.55(c)(2)(vi)) that were overlooked in the previous renewal; however 
these reporting requirements are audit related and impose no additional 
burden hours. Through customer contact, we obtained more accurate 
estimates of the time required to provide the information requested. We 
do not include 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
----------------------------------------------------------------------------------------------------------------
                                                                                 Average number
  Citation  30 CFR 206        Reporting and recordkeeping       Hour  burden        of annual     Annual  burden
        subpart B                     requirement                                   responses          hours
----------------------------------------------------------------------------------------------------------------
                                      Indian Oil Transportation Allowances
----------------------------------------------------------------------------------------------------------------
206.55(a)(1)(i).........  Arm's-length transportation         See Sec.   206.55(c)(1)(i) and                   0
                           contracts. * * * Before any        (iii).
                           deduction may be taken, the
                           lessee must submit a completed
                           page one of Form MMS-4110 (and
                           Schedule 1), Oil Transportation
                           Allowance Report * * *
206.55(b)(1)............  Non-arm's-length or no contract. *  See Sec.   206.55(c)(2)(i) and                   0
                           * * Before any estimated or        (iii).
                           actual deduction may be taken,
                           the lessee must submit a
                           completed Form MMS-4110 in its
                           entirety * * *
-------------------------
206.55(c)(1)(i).........  Reporting requirements. Arm's-                     4                 3              12
                           length contracts. With the
                           exception of those transportation
                           allowances specified in
                           paragraphs (c)(1)(v) and
                           (c)(1)(vi) of this section, the
                           lessee shall submit page one of
                           the initial Form MMS-4110 (and
                           Schedule 1), Oil Transportation
                           Allowance Report, prior to, or at
                           the same time as, the
                           transportation allowance
                           determined under an arm's-length
                           contract, is reported on Form MMS-
                           2014, Report of Sales and Royalty
                           Remittance. * * *
-------------------------

[[Page 62288]]

 
206.55(c)(1)(iii).......  Arm's-length contracts. After the                  4                 3              12
                           initial reporting period and for
                           succeeding reporting periods,
                           lessees must submit page one of
                           Form MMS-4110 (and Schedule 1)
                           within 3 months after the end of
                           the calendar year, or after the
                           applicable contract or rate
                           terminates or is modified or
                           amended, whichever is earlier,
                           unless MMS approves a longer
                           period (during which period the
                           lessee shall continue to use the
                           allowance from the previous
                           reporting period)
-------------------------
206.55(c)(1)(iv)........  Arm's-length contracts. MMS may     PRODUCE RECORDS                                  0
                           require that a lessee submit       The Office of Regulatory Affairs
                           arm's-length transportation        (ORA) determined that the audit
                           contracts, production agreements,  process is not covered by the PRA
                           operating agreements, and related  because MMS staff asks non-
                           documents. Documents shall be      standard questions to resolve
                           submitted within a reasonable      exceptions.
                           time, as determined by MMS
-------------------------
206.55(c)(2)(i).........  Non-arm's-length or no contract.                   6                 3              18
                           With the exception of those
                           transportation allowances
                           specified in paragraphs
                           (c)(2)(v), (c)(2)(vii) and
                           (c)(2)(viii) of this section, the
                           lessee shall submit an initial
                           Form MMS-4110 prior to, or at the
                           same time as, the transportation
                           allowance determined under a non-
                           arm's-length contract or no-
                           contract situation is reported on
                           Form MMS-2014. * * * The initial
                           report may be based upon
                           estimated costs
-------------------------
206.55(c)(2)(iii).......  Non-arm's-length or no contract.                   6                 3              18
                           For calendar-year reporting
                           periods succeeding the initial
                           reporting period, the lessee
                           shall submit a completed Form MMS-
                           4110 containing the actual costs
                           for the previous reporting
                           period. If oil transportation is
                           continuing, the lessee shall
                           include on Form MMS-4110 its
                           estimated costs for the next
                           calendar year. * * * MMS must
                           receive the Form MMS-4110 within
                           3 months after the end of the
                           previous reporting period, unless
                           MMS approves a longer period
                           (during which period the lessee
                           shall continue to use the
                           allowance from the previous
                           reporting period)
-------------------------
206.55(c)(2)(iv)........  Non-arm's-length or no contract.     See Sec.   206.55(c)(2)(i).                     0
                           For new transportation facilities
                           or arrangements, the lessee's
                           initial Form MMS-4110 shall
                           include estimates of the
                           allowable oil transportation
                           costs for the applicable period.
                           * * *
-------------------------
206.55(c)(2)(vi)........  Non-arm's-length or no contract.    PRODUCE RECORDS                                  0
                           Upon request by MMS, the lessee    The ORA determined that the audit
                           shall submit all data used to      process is not covered by the PRA
                           prepare its Form MMS-4110. The     because MMS staff asks non-
                           data shall be provided within a    standard questions to resolve
                           reasonable period of time, as      exceptions
                           determined by MMS
-------------------------
    Total Burden........  ..................................  ................                12              60
----------------------------------------------------------------------------------------------------------------

    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: Section 3506(c)(2)(A) of the PRA 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.
    To comply with the public consultation process, we published a 
notice in the Federal Register on April 26, 2004 (69 FR 22550), 
announcing we would submit this ICR to OMB for approval. The notice 
provided the required 60-day comment period. We received no written 
comments in response to the notice.
    If you wish to comment in response to this notice, you may send 
your comments to the offices listed under the ADDRESSES section of this 
notice. OMB has up to 60 days to approve or

[[Page 62289]]

disapprove the information collection but may respond after 30 days. 
Therefore, to ensure maximum consideration, OMB should receive public 
comments by November 24, 2004.
    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/InfoColl/InfoColCom.htm. We will also 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 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: September 10, 2004.
Lucy Querques Denett,
Associate Director for Minerals Revenue Management.
[FR Doc. 04-23785 Filed 10-22-04; 8:45 am]
BILLING CODE 4310-MR-P


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