67162 Federal Register / Vol. 69, No. 220 / Tuesday, November 16, 2004 / Notices 

Dated: November 5, 2004. 

Helen M. Hankins, 

Field Manager.

[FR Doc. 04–25366 Filed 11–15–04; 8:45 am] 

BILLING CODE 4310–HC–P

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–

0073). 

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. 

We changed the title of this information 

collection request (ICR) to clarify the 

regulatory language we are covering 

under 30 CFR Part 220. The previous 

title of this ICR was ‘‘30 CFR Part 220, 

Accounting Procedures for Determining 

Net Profit Share Payment for Outer 

Continental Shelf Oil and Gas Leases.’’

The new title of this ICR is ‘‘30 CFR Part 

220, Accounting Procedures for 

Determining Net Profit Share Payment 

for Outer Continental Shelf Oil and Gas 

Leases, § 220.010 NPSL capital account, 

§ 220.030 Maintenance of records, 

§ 220.031 Reporting and payment 

requirements, § 220.032 Inventories, and 

§ 220.033 Audits.’’

DATES: Submit written comments on or 

before January 18, 2005.

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, 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 email sharron.gebhardt@mms.gov.

SUPPLEMENTARY INFORMATION: 

Title: 30 CFR Part 220, Accounting 

Procedures for Determining Net Profit 

Share Payment for Outer Continental 

Shelf Oil and Gas Leases, § 220.010 

NPSL Capital Account, § 220.030 

Maintenance of Records, § 220.031 

Reporting and Payment Requirements, 

§ 220.032 Inventories, and § 220.033 

Audits. 

OMB Control Number: 1010–0073. 

Bureau Form Number: None. 

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 

MMS performs the royalty management 

functions for the Secretary. 

Applicable citations of the laws are 

Public Law 97–451—Jan. 12, 1983 

(Federal Oil and Gas Royalty 

Management Act of 1982) and Public 

Law 212—Aug. 7, 1953 (Outer 

Continental Shelf Lands Act of 1953, as 

amended by Public Law 93–627—Jan. 3, 

1975; Public Law 95–372—Sept. 18, 

1978; and Public Law 98–498—Oct. 19, 

1984). These citations can be viewed on 

our Web site at http://

www.mrm.mms.gov/Laws_R_D/

PublicLawsAMR.htm.

General Information 

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 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 royalties or net 

profit share payments are properly 

valued and appropriately paid. 

Proprietary information submitted to 

MMS under this collection is protected, 

and no items of a sensitive nature are 

collected.

Net Profit Share Lease Bidding System 

To encourage exploration and 

development of oil and gas leases on 

submerged Federal lands on the Outer 

Continental Shelf, regulations were 

promulgated at 30 CFR 260, Outer 

Continental Shelf Oil and Gas Leasing. 

Specific implementation regulations for 

the net profit share lease (NPSL) bidding 

system are promulgated at 30 CFR 

260.110(d) (covered under ICR 1010–

0143, expires December 31, 2006). The 

MMS established the NPSL bidding 

system to properly balance a fair market 

return to the Federal Government for the 

lease of its lands, with a fair profit to 

companies risking their investment 

capital. The system provides an 

incentive for early and expeditious 

exploration and development and 

provides for sharing the risks by the 

lessee and the Federal Government. The 

NPSL bidding system incorporates a 

fixed capital recovery system as a means 

through which the lessee recovers costs 

of exploration and development from 

production revenues, along with a 

reasonable return on investment. 

The Federal Government does not 

receive a profit share payment from an 

NPSL until the lessee shows a credit 

balance in its capital account; that is, 

cumulative revenues and other credits 

exceed cumulative costs. The credit 

balance is multiplied by the net profit 

share rate (30 to 50 percent), resulting 

in the amount of net profit share 

payment due the Federal Government. 

The MMS requires lessees to maintain 

an NPSL capital account for each lease, 

which transfers to a new owner when 

sold. Following the cessation of 

production, lessees are also required to 

provide either an annual or a monthly 

report to the Federal Government, using 

data from the capital account. In 

addition, NPSL lessees must notify 

MMS of their intent to perform an 

inventory and file a report after each 

inventory of controllable material. 

Further, when non-operators of an NPSL 

call for an audit, they must notify MMS. 

When MMS calls for an audit, the lessee 

must notify all non-operators on the 

lease. These requirements are located at 

30 CFR Part 220, §§ 220.010, 220.030, 

220.031, 220.032, and 220.033. This 

collection of information is necessary in 

order to determine when net profit share 

payments are due and to determine the 

proper amount of payment. 

We are revising this ICR to add 

citations related to records management 

(30 CFR 220.030(a)) and inventories (30 

CFR 220.032(b)). We added a new 

citation for a PRA-exempt requirement 

Federal Register / Vol. 69, No. 220 / Tuesday, November 16, 2004 / Notices 67163

related to audits (30 CFR 220.033(e)). 

For clarification, we added § 220.031(c) 

related to payment requirements. We 

have not included in our estimates 

certain requirements performed in the 

normal course of business, which are 

considered usual and customary. 

Frequency of Response: Annually, 

monthly, and on occasion. 

Estimated Number and Description of 

Respondents: 9 lessees. 

Estimated Annual Reporting and 

Recordkeeping ‘‘Hour’’ Burden: 1,583 

hours. 

All 9 lessees report monthly because 

all current NPSLs are in producing 

status. Because the establishment of 

capital accounts [30 CFR 220.010(a)] 

and capital account annual reporting [30 

CFR 220.031(a)] requirements are 

necessary only during non-producing 

status of a lease, we included only 1 

response annually for these 

requirements, in case a new NPSL is 

established. The following chart shows 

the estimated burden hours by CFR 

section and paragraph:

RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS

Citation

30 CFR 220 Reporting & recordkeeping requirement Hourburden 

Number of 

annual

responses 

Annual

burden

hours 

Part 220—Accounting procedures for determining net profit share payment for outer continental shelf oil and gas leases

§ 220.010 NPSL capital account

220.010(a) ........... (a) For each NPSL tract, an NPSL capital account shall be established and 

maintained by the lessee for NPSL operations. * * *

1 1 1 

§ 220.030 Maintenance of records

220.030(a) ........... (a) Each lessee * * * shall establish and maintain such records as are necessary * * * 1 9 9 

§ 220.031 Reporting and payment requirements

220.031(a) ........... (a) Each lessee subject to this part shall file an annual report during the period 

from issuance of the NPSL until the first month in which production revenues 

are credited to the NPSL capital account. * * *

16 1 16 

220.031(b) ........... (b) Beginning with the first month in which production revenues are credited to 

the NPSL capital account, each lessee * * * shall file a report for each 

NPSL, not later than 60 days following the end of each month * * * 

13 108 1,404 

220.031(c) ........... (c) Each lessee subject to this part 220 shall submit, together with the report 

required * * * any net profit share payment due * * *

Burden hours covered 

under 220.031(b) 

0 

220.031(d) ........... (d) Each lessee * * * shall file a report not later than 90 days after each inventory is taken * * * 8 9 72 

220.031(e) ........... (e) Each lessee * * * shall file a final report, not later than 60 days following 

the cessation of production * * * 

4 9 36 

§ 220.032 Inventories

220.032(b) ........... (b) At reasonable intervals, but at least once every three years, inventories of 

controllable materiel shall be taken by the lessee. Written notice of intention 

to take inventory shall be given by the lessee at least 30 days before any inventory is to be taken so that the Director may be represented at the taking 

of inventory. * * *

1 9 9 

§ 220.033 Audits

220.033(b)(1) ....... (b)(1) When nonoperators of an NPSL lease call an audit in accordance with 

the terms of their operating agreement, the Director shall be notified of the 

audit call * * * 

2 9 18 

220.033(b)(2) ....... (b)(2) If DOI determines to call for an audit, DOI shall notify the lessee of its 

audit call and set a time and place for the audit. * * * The lessee shall send 

copies of the notice to the notice to the nonoperators on the lease. * * *

2 9 18 

220.033(e) ........... (e) Records required to be kept under § 220.030(a) shall be made available for 

inspection by any authorized agent of DOI * * *

The Office of Regulatory 

Affairs has determined 

that the audit process is 

not covered by the PRA 

because MMS staff asks 

non-standard questions 

to resolve exception. 

0 

Total burden ................................................................................................................................ .................... 164 1,583 

Estimated Annual Reporting and 

Recordkeeping ‘‘Non-hour Cost’’

Burden: We have identified no ‘‘nonhour 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.

67164 Federal Register / Vol. 69, No. 220 / Tuesday, November 16, 2004 / Notices 

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 (see below). 

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 

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: November 5, 2004. 

Lucy Querques Denett, 

Associate Director for Minerals Revenue 

Management.

[FR Doc. 04–25330 Filed 11–15–04; 8:45 am] 

BILLING CODE 4310–MR–P

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 a new information 

collection (1010–NEW). 

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) for 

review and approval of the paperwork 

requirements in the regulations under 

30 CFR 250, Subpart I, Platforms and 

Structures, and related documents. This 

notice also provides the public a second 

opportunity to comment on the 

paperwork burden of these regulatory 

requirements.

DATES: Submit written comments by 

December 16, 2004.

ADDRESSES: You may submit comments 

either by fax (202) 395–6566 or email 

(OIRA_DOCKET@omb.eop.gov) directly 

to the Office of Information and 

Regulatory Affairs, OMB, Attention: 

Desk Officer for the Department of the 

Interior (1010–New). Mail or hand carry 

a copy of your comments to the 

Department of the Interior; Minerals 

Management Service; Attention: Rules 

Processing Team; Mail Stop 4024; 381 

Elden Street; Herndon, Virginia 20170–

4817. Interested parties may submit a 

copy of their comments on-line to MMS, 

the address is: https://

ocsconnect.mms.gov. From the Public 

Connect ‘‘Welcome’’ screen, you will be 

able to either search for Information 

Collection 1010–New or select it from 

the ‘‘Projects Open For Comment’’

menu.

FOR FURTHER INFORMATION CONTACT:

Cheryl Blundon, Rules Processing 

Team, (703) 787–1600. You may also 

contact Cheryl Blundon to obtain a 

copy, at no cost, of the regulations, and 

the Notice to Lessee (NTL) that require 

the subject collection of information.

SUPPLEMENTARY INFORMATION: 

Title: Assessment of Existing OCS 

Platforms Notice to Lessees (NTL). 

OMB Control Number: 1010–New. 

Abstract: The Outer Continental Shelf 

(OCS) Lands Act, as amended (43 U.S.C. 

1331 et seq. and 43 U.S.C. 1801 et seq.), 

authorizes the Secretary of the Interior 

(Secretary) to prescribe rules and 

regulations to administer leasing of the 

OCS. Such rules and regulations will 

apply to all operations conducted under 

a lease. Operations on the OCS must 

preserve, protect, and develop oil and 

natural gas resources in a manner that 

is consistent with the need to make such 

resources available to meet the Nation’s 

energy needs as rapidly as possible; to 

balance orderly energy resource 

development with protection of human, 

marine, and coastal environments; to 

ensure the public a fair and equitable 

return on the resources of the OCS; and 

to preserve and maintain free enterprise 

competition. 

Specifically, the OCS Lands Act (43 

U.S.C. 1356) requires the issuance of 

‘‘* * * regulations which require that 

any vessel, rig, platform, or other 

vehicle or structure * * * (2) which is 

used for activities pursuant to this 

subchapter, comply * * * with such 

minimum standards of design, 

construction, alteration, and repair as 

the Secretary * * * establishes * * *’’

The OCS Lands Act (43 U.S.C. 1332(6)) 

also states, ‘‘operations in the [O]uter 

Continental Shelf should be conducted 

in a safe manner * * * to prevent or 

minimize the likelihood of * * * 

physical obstruction to other users of 

the water or subsoil and seabed, or other 

occurrences which may cause damage to 

the environment or to property, or 

endanger life or health.’’ These 

authorities and responsibilities are