[Federal Register Volume 62, Number 228 (Wednesday, November 26, 1997)]
[Notices]
[Pages 63186-63187]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-31082]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service, Interior


Agency Information Collection Activities: Proposed Collection; 
Comment Request

AGENCY: Minerals Management Service, DOI.

ACTION: Notice of information collection solicitation.

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SUMMARY: Under the Paperwork Reduction Act of 1995, the Minerals 
Management Service (MMS) is soliciting comments on an information 
collection, Coal Transportation and Washing Allowance (OMB Control 
Number 1010-0074); this information collection pertains to Indian 
leases only.

FORMS: MMS-4292, Coal Washing Allowance Report and MMS-4293, Coal 
Transportation Allowance Report.

DATES: Written comments should be received on or before January 26, 
1998.

ADDRESSES: Comments sent via the U.S. Postal Service should be sent to 
Minerals Management Service, Royalty Management Program, Rules and 
Publications Staff, P.O. Box 25165, MS 3021, Denver, Colorado 80225-
0165; courier address is Building 85, Room A613, Denver Federal Center, 
Denver, Colorado 80225; e:Mail address is David__G<a href="/cdn-cgi/l/email-protection#8cf9f6f5cce1e1ffa2ebe3fa"><span class="__cf_email__" data-cfemail="a7d2dddee7cacad489c0c8d1">[email protected]</span></a>.

FOR FURTHER INFORMATION CONTACT:
Dennis C. Jones, Rules and Publications Staff, phone (303) 231-3046, 
FAX (303) 231-3385, e-Mail Dennis__C__J<a href="/cdn-cgi/l/email-protection#523d3c3721123f3f217c353d24"><span class="__cf_email__" data-cfemail="f19e9f9482b19c9c82df969e87">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: In compliance with the Paperwork Reduction 
Act of 1995, Section 3506(c)(2)(A), we are notifying you, members of 
the public and affected agencies, of this collection of information and 
are inviting your comments. In this information collection necessary 
for us to properly do our job? Have we accurately estimated the 
industry burden for responding to this collection? Can we enhance the 
quality, utility, and clarity of the information we collect? Can we 
lessen the burden of this information collection on the respondents by 
using automated collection techniques or other forms of information 
technology?
    The Secretary of the Interior is responsible for the collection of 
royalties from lessees who produce minerals from leased Indian lands. 
The Secretary is required by various laws to manage the production of 
mineral resources on Indian lands, to collect the royalties due, and to 
distribute the funds in accordance with those laws. The product 
valuation process is essential to assure that the public and/or the 
Indians receive payment on the full value of the minerals being 
removed.
    MMS performs these royalty management functions for the Secretary. 
When a company or an individual enters into a contract (a lease) to 
develop, mine, and dispose of coal deposits from Indian lands, that 
company or individual (the lessee) agrees to pay the United States, 
Indian tribe, or allottee (the lessor) a share (royalty) of the gross 
proceeds received from the sale of production from leased lands. 
Royalty rates are specified in the lease agreement. In order to 
determine whether the amount of royalty tendered represents the proper 
royalty due, it is necessary to establish the value of the coal being 
sold or otherwise disposed of in some other manner, as well as the 
proper costs associated with allowable deductions.
    In some circumstances, lessees are authorized to deduct certain 
costs in the calculation of royalties due. An allowance may be granted 
from royalties to compensate lessees for the reasonable actual cost of 
washing the royalty portion of coal. Also, when the sales point is not 
in the immediate vicinity of a lease or mine area, an allowance may be 
granted to compensate lessees for the reasonable actual cost of 
transporting the royalty portion of coal to a sales point not on the 
lease or mine area.
    Before any deductions are taken, the lessee with an arm's-length 
contract must submit page one of the Coal Washing Allowance Report, 
Form MMS-4292, or the Coal Transportation Allowance Report, Form MMS-
4293. The allowances will be based on reasonable actual costs reported 
by the lessees and are subject to later audit. We estimate that one 
lessee will submit two reports annually and that each submission will 
require \1/2\ hour to prepare, a total of 1 burden hour.
    Lessees with a non-arm's-length contract must also submit Form MMS-
4292 or Form MMS-4293. All applicable pages of the allowance 
application forms should be submitted. The allowances will be based on 
reasonable actual costs reported by the lessees and are subject to 
later audit. We do not anticipate any lessee with a non-arm's-length 
contract submitting allowance reports.

[[Page 63187]]

    In those instances when Indian royalty coal is washed, transported, 
or sold under non-arm's-length conditions, it is necessary for MMS to 
obtain other data, and in some cases, appropriate sales contracts, to 
accurately determine if the value of coal and the gross proceeds for 
royalty calculation purposes have been correctly computed by the 
lessee. Coal sales contracts for Indian lands are required to be 
submitted only upon request by MMS. We estimate that four lessees may 
be requested to submit sales contracts and that each submission will 
take 3 hours to prepare, a total of 12 burden hours.
    Authorization to deduct coal transportation and washing allowances 
continues for 12 months, or until the contract is changed or 
terminated. We estimate that recordkeeping for these allowances will 
require 1 hour per respondent annually (5 respondents  x  1 hour = 5 
burden hours). Therefore, the total annual burden hour estimate for 
this information collection is 18 burden hours (1+12+5=18).

    Dated: November 20, 1997.
Joan Killgore,
Acting Associate Director for Royalty Management.
[FR Doc. 97-31082 Filed 11-25-97; 8:45 am]
BILLING CODE 4310-MR-P


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