[Federal Register Volume 66, Number 108 (Tuesday, June 5, 2001)]
[Proposed Rules]
[Pages 30121-30134]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-14123]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Parts 206, 210, 216, and 218

RIN 1010-AC86


Solid Minerals Reporting Requirements

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Proposed rule.

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SUMMARY: MMS is proposing to revise its solid minerals reporting 
regulations. The new reporting requirements would replace several 
existing information collections and decrease the reporting burden for 
solid mineral reporters. The new requirements would also improve MMS's 
ability to verify that revenues due the government have been paid 
correctly under applicable laws, regulations and lease terms.

EFFECTIVE DATE: Comments must be submitted on or before July 5, 2001.

ADDRESSES: Address your comments, suggestions, or objections regarding 
this proposed rule to:
    By regular U.S. mail. Minerals Management Service, Minerals Revenue 
Management, Regulations and FOIA Team, P.O. Box 25165, MS 320B2, 
Denver, Colorado 80225-0165; or
    By overnight mail or courier. Minerals Management Service, Minerals 
Revenue Management, Building 85, Room F421, Denver Federal Center, 
Denver, Colorado 80225; or
    By e-mail. <a href="/cdn-cgi/l/email-protection#f6bba4bbd895999b9b93988285b69b9b85d8919980"><span class="__cf_email__" data-cfemail="135e415e3d707c7e7e767d6760537e7e603d747c65">[email protected]</span></a>. Please submit Internet comments as 
an ASCII file and avoid the use of special characters and any form of 
encryption. Also, please include ``Attn: RIN 1010-AC86'' and your name 
and return address in your Internet message. If you do not receive a 
confirmation that we have received your Internet message, call the 
contact person listed below.

FOR FURTHER INFORMATION CONTACT: Paul A. Knueven, Chief, Regulations 
and FOIA Team, Minerals Revenue Management, MMS, telephone (303) 231-
3316, fax (303) 231-3385, or e-mail <a href="/cdn-cgi/l/email-protection#044956492a676b6969616a7077446969772a636b72"><span class="__cf_email__" data-cfemail="5d100f10733e3230303833292e1d30302e733a322b">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: MMS is limiting the comment period for this 
proposed rulemaking to 30 days in order to receive comments from the 
public, make adjustments, and issue a final rule as quickly as 
possible. Solid mineral reporters need to know our final reporting 
requirements as much in advance of the October 1, 2001, effective date 
as possible in order to train employees and modify existing reporting 
procedures. The date for implementing the reporting changes in this 
proposed rulemaking cannot be delayed because MMS will be installing 
its new computer system as of October 1, 2001.
    The principal authors of this rule are Glenn W. Kepler, Sr., 
Cynthia Stuckey, and Herb Wincentsen, of Solid Minerals and Geothermal 
Compliance and Asset Management, Minerals Revenue Management, MMS, and 
Geoffrey Heath of the Office of the Solicitor, Department of the 
Interior.

I. Background

    In April 1996, MMS initiated a reengineering effort to examine our 
compliance strategy and determine the best approach for the future. In 
April 1997, we decided to move beyond compliance and reengineer all of 
our core business processes including our reporting and financial 
processes. In November 1998, we initiated an operational model for 
solid minerals to test proposed reengineered business processes and new 
reporting formats. Our two major goals were as follows:
    1. Reduce our compliance time frame from 5 or 6 years to 3 years or 
less; and
    2. Develop and implement more efficient, less burdensome reporting 
requirements.
    We included State and tribal partners from four States and two 
Indian tribes as full participating members in the operational model. 
We sought input on our reengineering efforts from MMS's Royalty Policy 
Committee (RPC), Coal Subcommittee, which is comprised of 
representatives from industry, States, tribes, and the public. We 
provided periodic updates to the Coal Subcommittee throughout our 
reengineering efforts. Each of the solid mineral model respondents was 
a member of the RPC Coal Subcommittee.
    We began the solid minerals operational model with 6 large coal 
companies that initially reported on 17 mines. These mines included 72 
Federal and Indian coal leases and over 40 percent of Federal and 
Indian coal production. We requested that the original 6 coal companies 
participate in our reengineering efforts because of the different 
compliance scenarios their mines presented for testing. For example, 
these mines included coal washing operations, arm's-length and

[[Page 30122]]

non-arm's-length sales, free-on-board destination sales, and 
transportation allowances. In late 2000, we expanded the model to 
include two additional coal mines and two Indian sand and gravel 
operations.
    On November 24, 1998, the Office of Management and Budget (OMB) 
approved our emergency information collection request (OMB Control 
Number 1010-0120) to collect and test reporting formats and frequencies 
in the solid minerals operational model. This approval included the use 
of three forms: Form MMS-4430, Solid Minerals Production and Royalty 
Report; Form MMS-4431, Facility Report; and Form MMS-4432, Marketing 
Profile. A revised information collection request was submitted to OMB 
which eliminated Forms MMS-4431 and MMS-4432 because we found industry 
could submit data using their own internal reports. OMB approved this 
revision.
    During the model, we asked participants whether our reengineered 
reporting formats were the best option. Several of the model 
participants responded with letters supporting Form MMS-4430. Some of 
the reasons given for their support are as follows:
    <bullet> Form MMS-4430 is designed to collect the appropriate 
information from solid mineral lessees at the appropriate time in the 
business cycle;
    <bullet> Form MMS-4430 and the three other data collections replace 
eight separate forms that companies are currently required to file;
    <bullet> Form MMS-4430 allows for the net reporting of prior period 
adjustments thus reducing reporting burden by approximately 40 percent; 
and
    <bullet> Form MMS-4430, as designed, reduces reporter burden and 
enhances the accuracy of the data submitted because many fields are 
automatically populated with and edited against data that MMS 
maintains.
    Because of the success of the operational model, MMS is proposing 
to revise our reporting requirements for coal and other solid minerals 
to include all solid mineral reporters in our reengineered compliance 
process. We believe these requirements will reduce the reporting burden 
currently placed on industry and enhance our ability to verify that 
proper royalties were paid.

II. Reasons for Revising Reporting Requirements

    The new reporting requirements presented in this proposed 
rulemaking would replace eight existing royalty and production forms 
with a single form and three other data collections.

Form MMS-4430, Solid Minerals Production and Royalty Report

    Our proposed Form MMS-4430 would provide many improvements over 
existing reporting requirements including:
    <bullet> No reporting of codes or converted lease numbers. No 
product, transaction or adjustment reason codes would be required on 
Form MMS-4430. Also, we would use the Bureau of Land Management's (BLM) 
lease serial number rather than MMS's converted lease number. This 
would reduce the time required for a reporter to complete the form but 
provide the same substantive information.
    <bullet> Net adjustments reporting. The proposed Form MMS-4430 
would allow net reporting so that you would report only the net change 
in a transaction. Thus, it would eliminate double line entry (that is, 
line reversal and reentry) when reporting an adjustment.
    <bullet> Electronic reporting. Our proposed Internet submission of 
Form MMS-4430 is consistent with our electronic reporting rule for oil 
and gas leases at 30 CFR parts 210 and 216. Like the oil and gas rule, 
this would help meet our paperwork reduction goals and reduce our costs 
associated with document handling. Also, a reporter would be able to 
access online its historical production and royalty data.
    <bullet> Form functionality. Our proposed Form MMS-4430 would 
provide several features that would contribute to reduced reporting 
burden and error-free submissions. First, the proposed form would 
combine most production and royalty reporting into a single form. 
Second, the proposed form would automatically populate various static 
data fields that are essential to the production and royalty reporting 
process, including lease number, royalty rate, and products produced. 
Third, our form would provide arithmetic functions and built-in tools 
to provide support for mine production and sales allocations back to 
the individual leases. Fourth, our proposed form would contain 
electronic edits (internal integrity checks). These edits would prevent 
the submission of forms containing errors or omissions resulting from 
oversight or data entry error. Reporter burden, as well as MMS burden, 
associated with error correction should decrease significantly.
    <bullet> Eliminate compliance issues from reports. The proposed 
Form MMS-4430 would eliminate selling arrangement codes that are the 
source of many compliance issues. We would determine arm's-length and 
non-arm's-length transactions through the other document submissions 
discussed below. Further, many solid mineral producers, particularly of 
coal and metals, have contract provisions that allow for price true-up 
after the initial sale. Such price true-ups are not normally interest-
bearing if they are invoiced timely to the purchaser and if royalty is 
timely paid. Our proposed form would permit the reporter to indicate on 
the form that the retroactive price adjustment is not interest-bearing. 
Our compliance process would determine whether further review of the 
reported retroactive price adjustment is necessary.
    <bullet> Eliminate BLM's collection of supplementary information. 
During BLM's production verification duties, BLM often supplements the 
data we provide with additional mine data collected from the producer. 
Our proposed Form MMS-4430 would collect total mine production and 
sales data. We believe collecting all of the data needed in one data 
submission will reduce reporter burden and assist BLM with its 
production verification duties.
    <bullet> Create a central database for all lease/mine information 
accessible to all BLM offices nationwide. Data that MMS collects would 
be immediately accessible to BLM offices nationwide and would eliminate 
delays found in existing interagency data-sharing processes.
    <bullet> Collect lease-level data for the entire mine. Form MMS-
4430 would collect lease-level production and sales value and volume 
information for the entire mine (including non-Federal and non-Indian 
production data). These data were not previously collected in any of 
our existing forms. Unlike oil and gas lease production occurring from 
units, communitization agreements or participating agreements, solid 
mineral lease production from within a mine constantly varies as 
production panels and pits shift across leases. A basic compliance 
requirement is to assure that the revenues generated from the mine's 
sales are allocated to the lease where the production occurred. During 
the course of a royalty compliance audit, we would normally verify 
production allocation. Under our reengineered compliance strategy, we 
would conduct this compliance check contemporaneously.

Other Proposed Data Collections

    In addition to Form MMS-4430 described above, we are proposing 
three other regular data submissions by reporters. These proposed 
information collections are contract submissions (for certain 
minerals), sales summaries, and facility data. This data is created and 
maintained by the reporter as part of its

[[Page 30123]]

normal business practices. Our goal is to utilize the same data the 
reporter uses, thus eliminating the need for additional information 
gathering and preparation. These other data submissions would replace 
several existing form-based data submissions and would also provide us 
earlier access to the information normally collected in the audit 
process.
    We need the three associated data submissions as well as the Form 
MMS-4430 because each individual form or document, standing alone, 
cannot provide the data necessary to monitor compliance 
contemporaneously. For example, we removed the selling arrangement code 
from Form MMS-4430 because other data submittals such as contract 
documents and sales summaries would provide us information on affiliate 
sales. The same compliance follow-up would occur had the lessee 
reported selling arrangement code 200 (non-arm's-length sales) on the 
Form MMS-2014, Report of Sales and Royalty Remittance. Another example 
is the elimination of several production reports, including the Form 
MMS-4060, Solid Minerals Facility Report Parts A and B. Facility data 
that the reporter uses as part of its internal process to monitor 
processing operations would supplant this production report. We believe 
this approach is less burdensome to the reporter yet results in equal 
or better data collected on mineral processing operations.

III. Analysis of Regulatory Changes

Part 206--Product Valuation

    Almost all of the amendments in part 206 would be nomenclature 
changes. First, the ``Royalty Management Program'' reorganized and 
changed its name to ``Minerals Revenue Management'' effective October 
1, 2000. We would insert the new name of our organization, wherever the 
old name occurs, and change management titles and the names and 
addresses of internal working groups that were also affected by the 
reorganization. Second, we would replace ``Form MMS-2014'' with ``Form 
MMS-4430'' to reflect the proposed reporting requirements in this 
rulemaking. You will see many of these types of changes throughout the 
remainder of this proposed rulemaking so they will not be discussed 
again.
    In addition, we propose to remove the requirements in 
Secs. 206.254(a) and 206.453(a) to report quality data on solid 
minerals because the existing production forms that capture quality 
data would be eliminated. Therefore, we have inserted more new 
comprehensive quality requirements for sales summary data in 
Sec. 210.202 which is summarized in a table. We would also remove 
Secs. 206.263 and 206.462 because the requirement to submit sales 
contracts in these two sections duplicate or contradict our proposed 
reporting requirements. The procedures for valuing coal and other solid 
minerals for royalty purposes would not be affected by this proposed 
rule.

Part 210--Forms and Report

Subpart A--General Provisions

Section 210.10  Information Collection

    We would revise Sec. 210.10 to add our proposed information 
collections to the list of collections approved by the Office of 
Management and Budget (OMB) and remove other information collections 
eliminated by this rulemaking. See our discussion of Secs. 210.200 
through 210.205 below for a complete explanation of the new reporting 
requirements.

Subpart E--Solid Minerals, General

    We would remove existing Secs. 210.200 through 210.204 because they 
pertain to forms that would be eliminated in this proposed rulemaking. 
We would add new Secs. 210.200 through 210.205 to explain our proposed 
reporting requirements.

Section 210.200  What Is the Purpose of This Subpart?

    This section would explain that the purpose of this subpart is to 
specify your production and royalty reporting requirements for Federal 
and Indian solid mineral leases.

Section 210.201  How Do I Submit Form MMS-4430, Solid Minerals 
Production and Royalty Report?

    What to submit. We would add this section to explain the 
requirements to submit Form MMS-4430. Form MMS-4430 would replace Form 
MMS-2014, Report of Sales and Royalty Remittance, and Form MMS-4059, 
Solid Minerals Operations Report Parts A and B.
    Form MMS-4430 would significantly change what data is reported to 
MMS using a form. For production that is processed prior to sale (e.g., 
washed coal, soda ash, potash, or metal concentrates), you would not 
report the raw ore production volumes on Form MMS-4430. You would only 
report the tons that are actually sold and on which royalty is due. For 
example, if you produce 1,600 tons of trona ore and you refine 1,000 
tons of soda ash from that raw production, you would only report the 
tons of soda ash produced and, separately, the tons sold and the sales 
proceeds. Raw production and the associated processing activity would 
be captured on another data submission. This submission called 
``facility data'' is discussed later in this preamble.
    Proposed Form MMS-4430 would eliminate reporting of specific but 
related products and, instead, group related products into a family of 
products. For example, potash producers, instead of reporting muriates 
of potash (chemical, coarse, fine, granular, industrial, soluable, or 
standard) as required by current reporting instructions, would group 
these muriates of potash and report production only as potash.
    Form MMS-4430 also incorporates a new reporting requirement based 
on the use of remote storage and sales points. If you move unsold 
production to five or fewer remote storage sites and conduct sales from 
those sites, you would be required to report the sales for each site 
separately on the Form MMS-4430. If you conduct sales from more than 
five remote storage sites, you would be required to combine the sales 
from all sites on one Form MMS-4430. Our experience from the solid 
minerals operational model showed that some producers move production, 
unsold, from the mine to distant points such as from Utah coal mines to 
the Port of Los Angeles Export Terminal. Producers ship coal to this 
port facility over several months until a sufficient quantity of coal 
has accumulated to supply a vessel sale. These remote storage and sales 
points operate similarly to a mine, gaining and losing inventory based 
on sales activities. However, inventories at remote storage sites 
function independently of the mine's inventories. Thus, when a sale 
occurs at the remote storage site, the allocations of sales proceeds 
back to the leases would be different from the sales occurring at the 
mine. Because Form MMS-4430 includes inventory management functions, 
the sales from five or fewer remote storage sites would be reported 
separately on the Form MMS-4430.
    When to submit. Form MMS-4430 would be due at the end of the month 
following the month activity occurs assuming your lease requires 
royalty payments on a monthly cycle. If your lease requires a different 
royalty payment cycle, you would submit this form at the same time your 
payment is due in accordance with your lease terms. If the information 
on a previously reported Form MMS-4430 is incorrect, you must submit a 
revised report by the end of the month in which you discover the error.
    How to submit. Form MMS-4430 would be submitted to MMS using the 
Internet. The production and royalty

[[Page 30124]]

module associated with this Internet application would allow solid 
mineral reporters to submit and maintain solid mineral data via the 
Internet for the first time. A system user would be furnished a valid 
log-in identification and password. MMS's Internet application would 
handle all security and authentication required by system users.
    We have provided two exceptions to the electronic reporting 
requirement to prevent undue burden on small businesses. One, you would 
not be required to report electronically if you report only annual 
obligations such as rent or minimum royalty. Two, you would not be 
required to report electronically if you are a small business, as 
defined by the U.S. Small Business Administration, and you have no 
computer and no plans to purchase a computer or contract with an 
electronic reporting service.

Section 210.202  How Do I Submit Sales Summaries?

    What to submit. We intend to collect the sales summary data in the 
least burdensome manner. This means, to the extent possible, using 
information that you, as a solid minerals reporter, have already 
generated as part of your normal business practices. The following 
table summarizes the sales summary data elements you would be required 
to submit for a specific lease type or mineral:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                All other leases   All other leases with
          Data element                  Coal          Sodium/potassium   Western phosphate        Metals        with ad valorem    no ad valorem royalty
                                                                                                                 royalty terms             terms
--------------------------------------------------------------------------------------------------------------------------------------------------------
Purchaser name or unique ID....  Monthly...........  As requested......  Monthly..........  Monthly..........  Monthly..........  As requested.
Sales units....................  Monthly...........  Monthly...........  Monthly..........  Monthly..........  Monthly..........  Monthly.
Gross proceeds.................  Monthly...........  Monthly...........  Not required.....  Monthly..........  Monthly..........  Not required.
Processing or washing costs....  Monthly...........  Monthly...........  Not required.....  Monthly..........  Monthly..........  Not required.
Transportation costs...........  Monthly...........  Monthly...........  Not required.....  Monthly..........  Monthly..........  Not required.
Name of product type sold......  Not required......  Monthly...........  Not required.....  Monthly..........  Monthly..........  As requested.
Btu/lb.........................  Monthly...........  Not required......  Not required.....  Not required.....  Not required.....  Not required.
Ash %..........................  Monthly...........  Not required......  Not required.....  Not required.....  Not required.....  Not required.
Sulfur %.......................  Monthly...........  Not required......  Not required.....  Not required.....  Not required.....  Not required.
lbs SO<INF>2</INF>........................  Monthly...........  Not required......  Not required.....  Not required.....  Not required.....  Not required.
Moisture %.....................  Monthly...........  Not required......  Monthly..........  Not required.....  Not required.....  Not required.
By-product units...............  Not required......  As requested......  Monthly..........  As requested.....  As requested.....  Not required.
P<INF>2</INF>O<INF>5</INF> %.........................  Not required......  Not required......  Monthly..........  Not required.....  Not required.....  Not required.
Size...........................  Monthly...........  Not required......  Not required.....  Not required.....  As requested.....  Not required.
Net smelter return data........  Not required......  Not required......  Not required.....  Monthly..........  Not required.....  Not required.
Other data e.g., royalty         As requested......  Monthly...........  As requested.....  As requested.....  As requested.....  As requested.
 calculation worksheet.
--------------------------------------------------------------------------------------------------------------------------------------------------------

    When to submit. For leases with ad valorem royalty terms, you would 
be required to submit sales summaries monthly. For leases with no ad 
valorem royalty terms (that is, leases with royalty terms that do not 
depend upon sales value to determine royalty due such as cents-per-ton 
or dollars-per-unit), you would submit sales summaries monthly only if 
you are specifically requested to do so.
    How to submit. Sales summary data is not submitted on a form. Sales 
summary data would be submitted in the same format the producer uses. 
Our experience from the solid minerals operational model shows that 
most companies maintain sales summary data using off-the-shelf 
spreadsheet software such as Microsoft Excel. We would prefer that you 
submit these data electronically, using electronic mail. Electronic 
submission of data allows us to transfer that data to our internal 
systems and formats for analysis. We would establish an electronic 
mailbox for receipt of these data. We would also accept sales summary 
data in paper copy; however, this approach is not preferred because of 
the additional cost, handling and storage burden.

Section 210.203  How Do I Submit Sales Contracts?

    What to submit. You would be required to submit sales contracts, 
agreements, contract amendments or other documents that affect gross 
proceeds received for the sale of lease production.
    When to submit. You would be required to submit sales contracts, 
agreements, contract amendments or other documents affecting gross 
proceeds as follows:
    <bullet> If you produce Federal or Indian coal, you would submit 
your sales contracts to us quarterly. Contracts or contract amendments 
entered into during the preceding quarter would be submitted to us 
whether or not sales under that contract had commenced.
    <bullet> If you produce sodium or potassium compounds from Federal 
or Indian leases, you would submit sales contracts to us quarterly only 
if requested by MMS. We are proposing less frequent contract submission 
for sodium and potassium producers because most sodium and potassium 
products are sold in refined form that have identical quality from 
month to month and from customer to customer. Thus, many of the pricing 
issues related to quality variables that appear in coal and metal 
concentrate contracts do not occur in sodium and potassium sales 
agreements.
    <bullet> Phosphate producers consume most, if not all, production 
internally in complex chemical processing plants, which produce 
elemental phosphorus and different fertilizer compounds. MMS determines 
value in these cases using a non-arm's-length valuation process. 
However, some phosphate ore by-products are produced and sold at arm's-
length. For these sales, you would submit sales contracts quarterly 
only if requested by MMS.
    <bullet> If you produce metals from Federal or Indian leases, you 
would submit your

[[Page 30125]]

sales contracts (typically net smelter return contracts) to us 
quarterly.
    <bullet> If you produce from any other ad valorem lease, you would 
submit sales contracts on a quarterly basis only if requested by MMS. 
Minerals in this category vary considerably and include, for example, 
garnets, limestone, gilsonite, quartz crystals, and some sand and 
gravel leases.
    <bullet> If you produce from any other lease with no ad valorem 
royalty terms--that is, leases in which the royalty due is not 
dependent upon sales price such as cents-per-ton or dollars-per-unit--
you would not be required to submit sales contracts.
    How to submit. You would be required to submit paper copies of your 
contracts to us using either courier service or the U.S. Postal Service 
and the addresses in Sec. 210.203(c).

Section 210.204  How Do I Submit Facility Data?

    What to submit. We are proposing to eliminate the Form MMS-4060, 
Solid Minerals Facility Report Parts A and B, relating to solid mineral 
processing operations. We would replace the data normally supplied on 
these forms with other types of facility data. The facility data you 
would supply would include the total throughput of the plant, including 
Federal, Indian, non-Federal, and non-Indian lease production. This 
approach to collecting facility data is consistent with the physical 
operations of processing plants because production from the various 
leases in the mine is normally commingled at the time the production is 
input to the plant.
    How to submit. Facility data would not be submitted on a form. 
Generally, facility data would be submitted in the same format normally 
used by the producer because all producers who process solid minerals 
prior to sale maintain records of processing plant operations. As a 
minimum, your facility data submissions must include identification of 
your facility, the mines served, input quantity, output quantity, and 
output quality or product grades. We would prefer that you submit these 
data electronically, using electronic mail. Electronic submission of 
data allows us to transfer data to our internal systems and formats for 
analysis. We would establish an electronic mailbox for receipt of these 
data. We would also accept facility data in paper copy; however, this 
approach is not preferred because of the additional costs, handling and 
storage burden.
    When to submit. You would be required to submit monthly facility 
data for the following leaseable minerals:
    1. Coal--If you wash coal, you would submit facility data.
    2. Sodium or potassium--If you refine sodium or potassium products, 
including dissolution, crystallization, compacting, or other processing 
to make products to which ad valorem royalty terms apply, you would 
submit facility data.
    3. Metals--If you concentrate metal-bearing ores to produce a metal 
concentrate to which ad valorem royalty terms apply, you would submit 
facility data.
    4. All other ad valorem lease production--If you process raw lease 
production through any form of a beneficiation, concentration, or any 
other mineral processing prior to sale, and ad valorem royalty terms 
apply to the value of the processed product, you would submit facility 
data.

Section 210.205  Do I Need To Submit Additional Documents or Evidence 
to MMS?

    We added this section to emphasize that Federal and Indian lease 
terms allow us to request other information to support our compliance 
activities; however, we will request the additional information only as 
needed, not as a regular submission.

Part 216--Production Accounting

Subpart A--General Provisions

Section 216.11  Electronic Reporting

    We would revise Sec. 216.11 to add the reference to electronic 
reporting requirements for Form MMS-4430.

Section 216.15  Reporting Instructions

    We would revise Sec. 216.15 to inform solid minerals reporters 
where they may obtain solid mineral reporting instructions.

Section 216.16  Where to Report

    In Sec. 216.16, we would add MMS addresses where reporters would 
send paper reports for solid mineral leases.

Section 216.21  General Obligations of the Reporter

    We would revise Sec. 216.21 to remove the references to the 
Production Accounting and Auditing System (PAAS) because it will be 
replaced by a new system effective October 1, 2001.

Section 216.40  Assessments for Incorrect or Late Reports and Failure 
to Report

    We would revise Sec. 216.40 to include assessments for lines 
related to production reported on the Form MMS-4430.

Sections 216.200 through 216.204

    We would remove Secs. 216.200 through 216.204 that describe 
existing reports and reporting requirements. These reports would be 
eliminated by the proposed information collection in this rule.

Part 218--Collection of Royalties and Rentals, Bonuses and Other 
Monies Due the Federal Government

Section 218.40  Assessments for Incorrect or Late Reports and Failure 
To Report

    We would revise Sec. 218.40 to add assessments for lines related to 
royalty reported on the Form MMS-4430. We are also making a technical 
correction to remove assessments under this section with respect to oil 
and gas leases. Assessments for oil and gas leases for chronic 
erroneous reporting are now governed by 30 U.S.C. 1725, enacted as part 
of the Federal Oil and Gas Royalty Simplification and Fairness Act of 
1996.

Section 218.51  How to Make Payments

    We would make nomenclature and address changes as necessary.

Section 218.201  Method of Payment

    We would refer solid mineral reporters to Sec. 218.51 for reporting 
instructions except that:
    (1) The definition of ``report'' would be Form MMS-4430, rather 
than Form MMS-2014;
    (2) Solid mineral reporters would include both their customer 
identification and customer document identification numbers on their 
payment document, rather than the information required under 
Sec. 218.51(f)(1); and
    (3) For rental payments not reported on Form MMS-4430, solid 
mineral reporters would include the MMS Courtesy Notice, when provided, 
or write their customer identification number and government-assigned 
lease number on the payment document, rather than the information 
required under Sec. 218.51(f)(4)(iii).

Section 218.203  Recoupment of Overpayments on Indian Mineral Leases

    We would make nomenclature and address changes as necessary.

IV. Procedural Matters

1. Public Comment Policy

    Our practice is to make comments, including names and home 
addresses of respondents, available for public review during regular 
business hours and on our Internet site at www.mrm.mms.gov. Individual 
respondents may request that we withhold their home address from the 
rulemaking record, which we will

[[Page 30126]]

honor to the extent 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 wish us to withhold your name 
and/or address, you must state this prominently at the beginning of 
your comments. 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.

2. Summary Cost and Benefit Data

    We have summarized below the economic impacts of this rule on the 
groups affected by our regulations: Industry, State and local 
governments, Indian tribes and allottees, and the Federal Government. 
All costs summarized below are associated with reporting changes. As 
stated previously, this rule does not affect the valuation--for royalty 
purposes--of Federal or Indian coal or other solid minerals. The cost 
and benefit information in this Item 2 of Procedural Matters is used as 
the basis for the Departmental certifications in Items 3-12.
A. Industry
    The effect of the information collection changes in this proposed 
rulemaking would be a net savings of $173,000 per year for all solid 
minerals reporters, calculated as follows:
    Cost--New Information Collection. We estimate that there are 200 
solid mineral lessees who are required to report production and royalty 
information to us. Using the annual reporting burden experienced by the 
participants in the operational model, we estimate the annual cost of 
the new information collection proposed in this rulemaking to be 
$68,100, calculated as follows:
    Form MMS-4430. The average reporting burden for completing Form 
MMS-4430 is 20 minutes per month. We estimate that all 200 solid 
minerals lessees will submit Form MMS-4430, and that this annual 
reporting burden will be 800 hours (200 lessees  x  \1/3\ hour per 
month  x  12 months).
    Sales summaries. The average reporting burden for sales summaries 
is 15 minutes per month. We estimate that 120 lessees will submit sales 
summary data and that this annual reporting burden will be 360 hours 
(120 lessees  x  \1/4\ hour per month  x  12 months).
    Facility data. The average reporting burden for facility data is 15 
minutes per month. We estimate that 30 lessees will submit facility 
data and that this annual reporting burden will be 90 hours (30 lessees 
 x  \1/4\ hour per month  x  12 months).
    Contracts and contract amendments. Contracts and contract 
amendments will be copied and sent to MMS. The average reporting burden 
for providing contracts and contract amendments to us is 1 hour. We 
estimate that 90 lessees (predominantly coal companies) will submit 
contracts and contract amendments. Consequently, the annual reporting 
burden is 90 hours (90 lessees  x  1 hour per year).
    Additional documents or evidence. Federal and Indian lease terms 
allow us to request detailed statements, documents, or other evidence 
that supports our compliance and asset management responsibilities. We 
will request this additional information as we need it, not as a 
regular submission. We estimate that 10 percent of the 200 solid 
minerals lessees, or 20 lessees, will submit this additional 
information annually, and that each lessee will require 1 hour to 
submit this information for a total annual reporting burden of 20 
hours.
    Method of Payment. Each payment document associated with Form MMS-
4430 (Electronic Funds Transfer or hard copy check) must be annotated 
with the lessee's customer identification and the customer document 
identification numbers. For each rental payment document not reported 
on Form MMS-4430, the lessee must include the MMS Courtesy Notice, when 
provided, or annotate the payment document with the customer 
identification number and Government-assigned lease number. This 
requirement will help MMS link payments with Form MMS-4430 submittals.
    The annual reporting burden for all of these documents is 
summarized below:

------------------------------------------------------------------------
                                                   Estimated
                                                   hours to   Total cost
                  Document name                     prepare     hrs  x
                                                  and submit    $50/hr
------------------------------------------------------------------------
Form MMS-4430...................................         800     $40,000
Sales summaries.................................         360      18,000
Facility data...................................          90       4,500
Contracts and subsequent amendments.............          90       4,500
Other documents.................................          20       1,000
Method of payments..............................           2         100
                                                 -----------------------
    Total.......................................       1,362     $68,100
------------------------------------------------------------------------

    Cost--Planning Meetings. Submitting this information to us will not 
require an initial capital cost by the respondent. We will meet with 
each reporter's information technology staff to coordinate computer-
related issues with the implementation of this information collection 
and to assist us in developing software requirements and describing the 
company's hardware and software configuration. We will provide the 
necessary electronic reporting software interface with our financial 
and production application systems for the companies to submit the 
required information.
    Benefit--Eliminating Eight Existing Reports. MMS currently requires 
solid minerals reporters to submit eight separate forms:
    1. Form MMS-4030, Payor Information Form (PIF), OMB Control Number 
1010-0064. This form is used to establish and maintain the payor 
accounts required for processing Form MMS-2014. Estimated annual burden 
hours are 173.
    2. Form MMS-2014, Report of Sales and Royalty Remittance, OMB 
Control Number 1010-0022. This form serves as the monthly report form 
on which payors report all royalty and lease-level transactions. 
Estimated annual burden hours for solid mineral payors are 1,884.
    3. Form MMS-4050, Mine Information Form (MIF), OMB Control Number 
1010-0063. This form is used to establish and maintain mine-level 
production reporting. Estimated annual burden hours for forms in this 
number 3 and numbers 4 through 8 below are 2,763.
    4. Form MMS-4051, Facility and Measurement Information Form (FMIF), 
OMB Control Number 1010-0063. This form is used to establish and 
maintain facilities in the volume-tracking system including identifying 
key sales/transfer measurement points that are required to track 
production and identify all secondary processing and remote storage 
facilities.
    5. Form MMS-4059-A, Solid Minerals Operations Report, Part A (SMOR-
A), OMB Control Number 1010-0063. This form is used to identify, for a 
mine, the quantity and quality of all raw material produced from each 
Federal or Indian lease, specify the disposition of those raw materials 
including sales, transfers, and adjustments, and track raw material 
inventories.
    6. Form MMS-4059-B, Solid Minerals Operations Report, Part B (SMOR-
B), OMB Control Number 1010-0063. This form is used to allocate sales 
from a secondary processing or remote storage facility back to 
individual Federal or Indian leases within a mine.
    7. Form MMS-4060-A, Solid Minerals Facility Report, Part A (SMFR-
A), OMB Control Number 1010-0063. This form is used to provide detailed

[[Page 30127]]

information on a secondary processing facility's inputs/outputs.
    8. Form MMS-4060-B, Solid Minerals Facility Report, Part B (SMFR-
B), OMB Control Number 1010-0063. This form is used to show a secondary 
processing or remote storage facility's raw material receipts, 
production, inventory, and disposition.
    These eight forms would be replaced by Form MMS-4430 and other data 
submissions described in the cost section above. The combined annual 
burden that will be eliminated if these eight forms are no longer 
submitted by solid mineral reporters is 4,820 hours or a total cost of 
$241,000. The effect of replacing these eight forms with the new 
information collection (costing $68,100) would be an estimated savings 
of $173,000 per year.
    Issues Affecting Small Businesses. Approximately 200 solid mineral 
reporters submit forms and other information to MMS, 91 percent of 
which are small businesses because they have 500 employees or less. As 
noted earlier, the effect of the information collection changes in this 
proposed rulemaking would be a net savings of $173,000 per year for all 
solid minerals reporters. We expect small businesses to benefit 
proportionately from the reduction in reporting burden.
    Using the experience gained through the model, our reengineered 
initiative ensures that the information requested is the minimum 
necessary and places the least possible burden on industry. We have 
further provided two exceptions to the requirement to submit the Form 
MMS-4430 electronically to avoid placing undue burden on small 
businesses. You would not be required to report electronically if you 
report only annual obligations such as rent or minimum royalty. 
Further, you would not be required to report electronically if you are 
a small business, as defined by the U.S. Small Business Administration, 
and you have no computer and no plans to purchase a computer or 
contract with an electronic reporting service. For other data 
submissions, respondents including small businesses or other small 
entities would have the flexibility to submit information to us via 
hard copy or electronic submissions.
    During the summer 2001, we plan to hold several seminars to explain 
the revised reporting requirements. We will encourage all solid mineral 
lessees to attend one of these seminars to familiarize themselves with 
the revised reporting requirements and to prepare to implement these 
requirements.
    We will meet with each company's information technology staff to 
assist in setting up hardware and software configuration. We plan to 
provide the necessary electronic reporting software that will interface 
with our financial and production application systems. We will also 
cover the cost associated with the development and implementation of 
the reporting software. We will provide any initial software formatting 
or other assistance needed to get a company ready to comply with the 
new information collection proposed in this rule by October 1, 2001.
B. State and Local Governments
    This rulemaking would not impose any additional costs on State or 
local governments.
C. Indian Tribes and Allottees
    This rulemaking would not impose any additional costs on Indian 
tribes or allottees.
D. Federal Government
    MMS is reengineering its financial and compliance processes to 
transform its function-based program to a process-centered 
organization. The new reengineered MMS will be highly integrated and 
positioned to provide royalty management services at less cost to the 
Nation. Some of the more important goals for the reengineering 
initiative include cutting in half the time necessary to collect and 
verify mineral revenues, distributing revenue to States and Indian 
mineral owners within 1 business day, reducing industry reporting 
requirements, and modernizing our computer and software systems.
    We are undertaking this reengineering initiative because new 
legislative mandates, such as the Federal Oil and Gas Royalty 
Simplification and Fairness Act of 1996, and market changes require MMS 
to replace its outdated computer systems to facilitate a more cost-
effective operation. MMS expects significant reduction in annual 
operating costs of administration, accelerated cash flows through 
reductions in current business cycle times, and increased revenue 
through improved compliance coverage.
    Although all benefits of this rulemaking cannot be quantified at 
this time, the Federal Government should see significant savings and 
far greater efficiencies.
    The quantifiable costs and benefits of this proposed rulemaking to 
the Federal Government is a cost of $424,700 in the first two years 
after this rule is effective and a savings of $20,800 each year 
thereafter, as calculated below.
    Benefit--Personnel. We estimate that Solid Minerals and Geothermal 
Compliance and Asset Management's 23 employees will allocate about 10 
percent of their time to collect and analyze contracts, sales 
summaries, and facility data required by this rulemaking for a total 
cost of $239,200 (2.3 employees  x  2,080 hours/year  x  $50/hour) 
annually. However, under current reporting processes, Solid Minerals 
and Geothermal Compliance and Asset Management allocates the equivalent 
of 2.5 employees annually to error correction. Under this rulemaking 
error correction is expected to be negligible. Therefore this 
rulemaking nets no additional personnel cost but rather a minimal 
savings of .2 employees or $20,800 (.2 employees  x  2,080 hours/year 
x  $50/hour) annually.
    These employees will also resolve compliance issues using end-to-
end processes that eliminate handoffs that would otherwise occur 
between functionally aligned units which also improves efficiencies.
    This rule would allow substantial administrative dollar savings to 
MMS. Owing to the elimination of eight separate reporting forms under 
this proposed rule, MMS can utilize its solid minerals personnel more 
efficiently and effectively for verification of mineral revenues. Solid 
minerals personnel would review and process only one reporting form in 
place of eight existing reporting forms, which would result in 
associated reductions in error corrections, document handling issues, 
data entry problems, and time spent correcting those issues with 
industry personnel.
    Cost--Computer software. MMS is also building a computer platform 
and associated database as the host for data collected. This computer 
platform, and associated cost to MMS, will involve data from the 
Onshore, Offshore, and Solid Minerals Operational Models and all 
exception processing and compliance activity. We estimate the cost for 
the solid minerals portion of the new computer system to be about 
$445,500 within the first and second years after implementation of this 
rule or $891,000 over 2 fiscal years ($891,000 <divide> 2 = $445,500).
    MMS has allocated the cost of its solid minerals portion of the new 
computer system in its reengineering budget requests. Accordingly, MMS 
will not need additional funds for computer systems as a result of the 
provisions proposed in this rulemaking.

3. Regulatory Planning and Review (Executive Order 12866)

    This document is not a significant rule and is not subject to 
review by the

[[Page 30128]]

Office of Management and Budget under Executive Order 12866.
    (1) This rule will not have an effect of $100 million or more on 
the economy. It will not adversely affect in a material way the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities.
    (2) This rule will not create a serious inconsistency or otherwise 
interfere with an action taken or planned by another agency.
    (3) This rule does not alter the budgetary effects of entitlements, 
grants, user fees, or loan programs or the rights or obligations of 
their recipients.
    (4) This rule does not raise novel legal or policy issues.

4. Regulatory Flexibility Act

    The Department of the Interior certifies that this document will 
not have a significant adverse effect on a substantial number of small 
entities under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). 
For additional information on small business issues, see the cost and 
benefit data in item 2 of these Procedural Matters.
    Your comments are important. The Small Business and Agricultural 
Regulatory Enforcement Ombudsman and 10 Regional Fairness Boards were 
established to receive comments from small businesses about Federal 
agency enforcement actions. The Ombudsman will annually evaluate the 
enforcement activities and rate each agency's responsiveness to small 
business. If you wish to comment on the enforcement actions in this 
rule, call 1-888-734-3247.

5. Small Business Regulatory Enforcement Act (SBREFA)

    This rule is not a major rule under 5 U.S.C. 804(2), the Small 
Business Regulatory Enforcement Fairness Act. This rule:
    a. Does not have an annual effect on the economy of $100 million or 
more.
    b. Will not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions.
    c. Does not have significant adverse effects on competition, 
employment, investment, productivity, innovation, or the ability of 
U.S.-based enterprises to compete with foreign-based enterprises.

6. Unfunded Mandates Reform Act

    This rule does not impose an unfunded mandate on State, local, or 
tribal governments or the private sector of more than $100 million per 
year. The rule does not have a significant or unique effect on State, 
local, or tribal governments or the private sector. A statement 
containing the information required by the Unfunded Mandates Reform Act 
(2 U.S.C. 1531 et seq.) is not required.

7. Takings (Executive Order 12630)

    In accordance with Executive Order 12630, this proposed rule does 
not have significant takings implications. This rule does not impose 
conditions or limitations on the use of any private property; 
consequently, a takings implication assessment is not required.

8. Federalism (Executive Order 13132)

    In accordance with Executive Order 13132, this proposed rule does 
not have Federalism implications. This rule does not substantially or 
directly affect the relationship between the Federal and State 
governments or impose costs on States or localities.

9. Civil Justice Reform (Executive Order 12988)

    In accordance with Executive Order 12988, the Office of the 
Solicitor has determined that this rule does not unduly burden the 
judicial system and meets the requirements of sections 3(a) and 3(b)(2) 
of the Order.

10. Paperwork Reduction Act of 1995

    We are soliciting comments on the information collection associated 
with this rulemaking. The information collection is titled ``Solid 
Minerals Compliance and Asset Management Process'' and has been 
submitted to OMB for review and approval. Written comments should be 
submitted on or before July 5, 2001.
    You may submit comments directly to the Office of Information and 
Regulatory Affairs, Office of Management and Budget, Attention: Desk 
Officer for the Interior Department (OMB Control No. 1010-0120), 725 
17th Street, NW, Washington, DC 20503. Also, please submit copies of 
your comments to Carol Shelby, Regulatory Specialist, Regulations and 
FOIA Team, Minerals Revenue Management, MS 320B2, P.O. Box 25165, 
Denver, CO 80225-0165. Courier or overnight delivery address is 
Building 85, Room F421, Denver Federal Center, Denver, Colorado 80225.
    You may also comment via the Internet to <a href="/cdn-cgi/l/email-protection" class="__cf_email__" data-cfemail="79140b14571a1614141c170d0a3914140a571e160f">[email protected]</a>. 
Submit Internet comments as an ASCII file avoiding the use of special 
characters and any form of encryption. Also include the title of the 
information collection and the OMB control number along with your name 
and return address in your Internet message. If you do not receive a 
confirmation from the system that we have received your Internet 
message, contact Carol Shelby at (303) 231-3151 or FAX (303) 231-3385.
    After the comment period closes, we will post public comments on 
the Internet at http://www.mrm.mms.gov. We make paper copies of these 
comments, including names and addresses of respondents, available for 
public review during regular business hours at our offices in Lakewood, 
Colorado. Individual respondents may request that we withhold their 
home address from the rulemaking record, which we will honor to the 
extent allowable by law. There may also be circumstances in which we 
would withhold from the rulemaking record a respondent's identity, as 
allowable by law. If you wish us to withhold your name and/or address, 
you must state this prominently at the beginning of your 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.
    Section 3506(c)(2)(A) of the Paperwork Reduction Act 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 techniques and other forms of information 
technology.
    On August 3, 2000, we published a Federal Register Notice (65 FR 
47802), soliciting comments on revising the Solid Minerals Operational 
Model information collection (OMB Control Number 1010-0120).


    Note: We are requesting OMB approval to revise the information 
collection requirements under the currently approved information 
collection titled ``Solid Minerals Operational Model'' so that the 
requirements apply to all solid minerals lessees and to change the 
title to ``Solid Minerals Compliance and Asset Management 
Process.'')


    We received comments from two organizations on the August 3, 2000,

[[Page 30129]]

notice--one from an industry partner in the operational model and one 
from an association whose membership includes coal, metal and non-metal 
mineral producers as well as manufacturers of mining and processing 
equipment and engineering, consulting and financial institutions 
serving the industry. These comments are addressed in the information 
collection request submitted to OMB.
    We estimate that there are 200 solid mineral lessees who are 
required to report production and royalty information to us. Using the 
annual reporting burden experienced by the participants in the 
operational model, we estimate the annual reporting burden for this 
information collection is 1,362 hours.
    Form MMS-4430. The average reporting burden for completing Form 
MMS-4430 is 20 minutes per month. We estimate that all 200 solid 
minerals lessees will submit Form MMS-4430, and that this annual 
reporting burden will be 800 hours (200 lessees  x  \1/3\ hour per 
month  x  12 months).
    Sales summaries. The average reporting burden for sales summaries 
is 15 minutes per month. We estimate that 120 lessees will submit sales 
summary data and that this annual reporting burden will be 360 hours 
(120 lessees  x  \1/4\ hour per month  x  12 months).
    Facility data. The average reporting burden for facility data is 15 
minutes per month. We estimate that 30 lessees will submit facility 
data and that this annual reporting burden will be 90 hours (30 lessees 
 x  1.4 hour per month  x  12 months).
    Contracts and contract amendments. Contracts and contract 
amendments will be copied and sent to MMS. The average reporting burden 
for providing contracts and contract amendments to us is 1 hour. We 
estimate that 90 lessees (predominantly coal companies) will submit 
contracts and contract amendments. Consequently, the annual reporting 
burden is 90 hours (90 lessees  x  1 hour per year).
    Additional documents or evidence. Federal and Indian lease terms 
allow us to request detailed statements, documents, or other evidence 
that supports our compliance and asset management responsibilities. We 
will only request this additional information as we need it, not as a 
regular submission. We estimate that 10 percent of the 200 solid 
mineral lessees, or 20 lessees, will submit this additional information 
annually, and that each lessee will require 1 hour to submit this 
information for a total annual reporting burden of 20 hours.
    Method of Payment. Each payment document associated with Form MMS-
4430 (Electronic Funds Transfer or hard copy check) must be annotated 
with the lessee's customer identification and the customer document 
identification numbers. For each rental payment document not reported 
on Form MMS-4430, the lessee must include the MMS Courtesy Notice, when 
provided, or annotate the payment document with the customer 
identification number and Government-assigned lease number. This 
requirement will help MMS link payments with Form MMS-4430 submittals.
    The annual reporting burden for all of these documents is as 
follows:

------------------------------------------------------------------------
                                                               Estimated
                                                                hours to
                        Document Name                           prepare
                                                                  and
                                                                 submit
------------------------------------------------------------------------
Form MMS-4430................................................        800
Sales summaries..............................................        360
Facility data................................................         90
Contracts and subsequent amendments..........................         90
Other documents..............................................         20
Method of payments...........................................          2
    Total....................................................      1,362
------------------------------------------------------------------------

    Using an average cost of $50 per hour, we estimate the annual cost 
to respondents for the hour burden will be $68,100 (1,362 hours  x  
$50).
    The PRA 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.

11. National Environmental Policy Act

    This rule does not constitute a major Federal action significantly 
affecting the quality of the human environment. A detailed statement 
under the National Environmental Policy Act of 1969 is not required.

12. Consultation and Coordination With Indian Tribal Governments

    In accordance with Executive Order 13175, this proposed rule does 
not have tribal implications that impose substantial direct compliance 
costs on Indian tribal governments.

13. Clarity of This Regulation

    Executive Order 12866 requires each agency to write regulations 
that are easy to understand. We invite your comments on how to make 
this rule easier to understand, including answers to questions such as 
the following: (1) Are the requirements in the rule clearly stated? (2) 
Does the rule contain technical language or jargon that interferes with 
this clarity? (3) Does the format of the rule (grouping and order of 
sections, use of headings, paragraphing, etc.) aid or reduce its 
clarity? (4) Would the rule be easier to understand if it were divided 
into more (but shorter) sections? (A ``section'' appears in bold type 
and is preceded by the symbol ``Sec. '' and a numbered heading, for 
example, ``Sec. 210.200 What is the purpose of this subpart?'') (5) Is 
the description of the rule in the ``Supplementary Information'' 
section of the preamble helpful in understanding the rule? What else 
could we do to make the rule easier to understand?
    Send a copy of any comments that concern how we could make this 
rule easier to understand to: Office of Regulatory Affairs, Department 
of the Interior, Room 7229, 1849 C Street NW, Washington, DC 20240. You 
may also e-mail the comments to this address: <a href="/cdn-cgi/l/email-protection#07427f746264476e68742963686e29606871"><span class="__cf_email__" data-cfemail="4f0a373c2a2c0f26203c612b202661282039">[email protected]</span></a>.

List of Subjects

30 CFR part 206

    Coal, Continental shelf, Geothermal energy, Government contracts, 
Indian lands, Mineral royalties, Natural gas, Petroleum, Public lands--
mineral resources, Reporting and recordkeeping requirements.

30 CFR part 210

    Coal, Continental shelf, Geothermal energy, Government contracts, 
Indian lands, Mineral royalties, Natural gas, Petroleum, Public lands--
mineral resources, Reporting and recordkeeping requirements.

30 CFR part 216

    Coal, Continental shelf, Geothermal energy, Government contracts, 
Indian lands, Mineral royalties, Natural gas, Penalties, Petroleum, 
Public lands--mineral resources, Reporting and recordkeeping 
requirements.

30 CFR part 218

    Coal, Continental shelf, Electronic funds transfers, Geothermal 
energy, Government contracts, Indian lands, Mineral royalties, Natural 
gas, Penalties, Petroleum, Public lands--mineral resources, Reporting 
and recordkeeping requirements.

    Dated: May 30, 2001.
Piet deWitt,
Acting Assistant Secretary, Land and Minerals Management.
    For reasons set out in the preamble, 30 CFR parts 206, 210, 216, 
and 218 are proposed to be amended as follows:

PART 206--PRODUCT VALUATION

    1. The authority citation for part 206 continues to read as 
follows:


[[Page 30130]]


    Authority: 5 U.S.C. 301 et seq.; 25 U.S.C. 396 et seq., 396a et 
seq., 2101 et seq.; 30 U.S.C. 181 et seq., 351 et seq., 1001 et 
seq., 1701 et seq.; 31 U.S.C. 9701; 43 U.S.C. 1301 et seq., 1331 et 
seq., and 1801 et seq.


Sec. 206.251  [Amended]

    2. In Sec. 206.251, definition of ``netting,'' remove the word 
``MMS-2014'' and add in its place the word ``MMS-4430.''


Sec. 206.254  [Amended]

    3. Amend Sec. 206.254 as follows:
    a. Remove paragraph (a).
    b. In paragraph (b), last sentence, remove the words ``Report of 
Sales and Royalty Remittance, Form MMS-2014'' and add in their place 
the words ``Solid Minerals Production and Royalty Report, Form MMS-
4430.''
    c. Remove the paragraph designation for paragraph (b).


Sec. 206.257  [Amended]

    4. Amend Sec. 206.257 as follows:
    a. In paragraph (d)(3), second sentence, remove the title 
``Associate Director for Royalty Management'' and add in its place 
``Associate Director for Minerals Revenue Management.''
    b. In paragraph (d)(3), last sentence, remove the word ``MMS-2014'' 
and add in its place the word ``MMS-4430.''


Sec. 206.259  [Amended]

    5. In Sec. 206.259, paragraphs (a)(1), (b)(1), (c)(1)(i), 
(c)(2)(i), (d)(1), (e)(1) and (e)(2), remove the word ``MMS-2014'' and 
add in its place the word ``MMS-4430.''


Sec. 206.262  [Amended]

    6. In Sec. 206.262, paragraphs (a)(1), (b)(1), (c)(1)(i), 
(c)(2)(i), (d)(1), (e)(1) [occurs twice] and (e)(2), remove the word 
``MMS-2014'' and add in its place the word ``MMS-4430.''


Sec. 206.263  [Removed]

    7. Remove Sec. 206.263.


Sec. 206.453  [Amended]

    8. Amend Sec. 206.453 as follows:
    a. Remove paragraph (a).
    b. In paragraph (b), remove the words ``Report of Sales and Royalty 
Remittance, Form MMS-2014'' and add in their place the words ``Solid 
Minerals Production and Royalty Report, Form MMS-4430.''
    c. Remove the paragraph designation from paragraph (b).


Sec. 206.456  [Amended]

    9. Amend Sec. 206.456 as follows:
    a. In paragraph (d)(3), second sentence, remove the title 
``Associate Director for Royalty Management'' and add in its place the 
title ``Associate Director for Minerals Revenue Management.''
    b. In paragraph (d)(3), last sentence, remove the word ``MMS-2014'' 
and add in its place the word ``MMS-4430.''


Sec. 206.458  [Amended]

    10. Amend Sec. 206.458 as follows:
    a. In paragraphs (c)(1)(i) and (c)(2)(i), remove the words ``Form 
MMS-2014, Report of Sales and Royalty Remittance'' and add in their 
place the words ``Form MMS-4430, Solid Minerals Production and Royalty 
Report'' and remove the word ``MMS-2014'' and add in its place the word 
``MMS-4430.''
    b. In paragraphs (c)(4), (d)(1), (e)(1), and (e)(2), remove the 
word ``MMS-2014'' and add in its place the word ``MMS-4430.''


Sec. 206.461  [Amended]

    11. Amend Sec. 206.461 as follows:
    a. In paragraphs (c)(1)(i) and (c)(2)(i), remove the words ``Form 
MMS-2014, Report of Sales and Royalty Remittance,'' and add in their 
place the words ``Form MMS-4430, Solid Minerals Production and Royalty 
Report.''
    b. In paragraphs (c)(4), (d)(1), (e)(1) and (e)(2), remove the word 
``MMS-2014'' and add in its place the word ``MMS-4430.''


Sec. 206.462  [Removed]

    12. Remove Sec. 206.462.

PART 210--FORMS AND REPORTS

    13. The authority citation for part 210 continues to read as 
follows:

    Authority: 5 U.S.C. 301 et seq.; 25 U.S.C. 396, 2107; 30 U.S.C. 
189, 190, 359, 1023, 1751(a); 31 U.S.C. 3716, 9701; 43 U.S.C. 1334, 
1801 et seq.; and 44 U.S.C. 3506(a).
    14. Amend Sec. 210.10 as follows:
    a. In paragraph (a), first sentence, remove the name ``Royalty 
Management Program'' and add in its place ``Minerals Revenue 
Management.''
    b. In paragraph (a), revise the table to read as follows:


Sec. 210.10  Information collection.

    (a) * * *

------------------------------------------------------------------------
             Form No., name, and filing date                  OMB No.
------------------------------------------------------------------------
MMS-2014--Report of Sales and Royalty Remittance--Due by       1010-0022
 the end of first month following production month for
 royalty payment and for rentals no later than
 anniversary date of the lease..........................
MMS-3160--Monthly Report of Operations--Due by the 15th        1010-0040
 day of the second month following the production month.
MMS-4025--Oil and Gas Payor Information Form-- Due 30          1010-0033
 days after issuance of a new lease or change to an
 existing lease.........................................
MMS-4051--Facility and Measurement Information Form and        1010-0040
 Supplement--Due at the request of MMS during the
 initial conversion of the facility and measurement
 device operators.......................................
MMS-4053--First Purchaser Report--Due at the request of        1010-0040
 MMS....................................................
MMS-4054--Oil and Gas Operations Report--Due by the 15th       1010-0040
 day of the second month following the production month.
MMS-4055--Gas Analysis Report--Due by the 15th day of          1010-0040
 the second month following the production month........
MMS-4056--Gas Plant Operations Report--Due by the 15th         1010-0040
 day of the second month following the production month.
MMS-4058--Production Allocation Schedule Report--Due by        1010-0040
 the 15th day of the second month following the
 production month.......................................
MMS-4070--Application of the Purchase of Royalty Oil--         1010-0042
 Due prior to the date of sale in accordance with the
 instructions in the Notice of Availability of Royalty
 Oil....................................................
MMS-4109--Gas Processing Allowance Summary Report--            1010-0075
 Initial report due within 3 months following the last
 day of the month for which an allowance is first
 claimed, unless a longer period is approved by MMS.....
MMS-4110--Oil Transportation Allowance Report--Initial         1010-0061
 report due within 3 months following the last day of
 the month for which an allowance is first claimed,
 unless a longer period is approved by MMS..............
MMS-4280--Application for Reward for Original                  1010-0076
 Information-- Due when a reward is claimed for
 information provided which may lead to the recovery of
 royalty or other payments owed to the United States....
MMS-4292--Coal Washing Allowance Report--Due prior to or       1010-0074
 at the same time that the allowance is first reported
 on Form MMS-4430 and annually thereafter if the
 allowance does not change..............................
MMS-4293--Coal Transportation Allowance Report--Due
 prior to or at the same time that the allowance is
 first reported on Form.................................
MMS-4430 and annually thereafter if the allowance does         1010-0074
 not change.............................................
MMS-4295--Gas Transportation Allowance Report--Initial         1010-0075
 report due within 3 months following the last day of
 month for which an allowance is first claimed unless a
 longer period is approved by MMS.......................

[[Page 30131]]

 
MMS-4377--Stripper Royalty Rate Reduction Notification--       1010-0090
 Due for each 12-month qualifying period that a reduced
 royalty rate is granted by the Bureau of Land
 Management.............................................
MMS-4430--Solid Minerals Production and Royalty Report--       1010-0120
 Due by the end of the month following the month of
 production or sale and for rentals no later than the
 payment date specified in your lease...................
Facility Data--Due monthly or as requested for specific        1010-0120
 solid mineral products and lease types; see Sec.
 210.204................................................
Sales Contracts--Due quarterly or as requested on              1010-0120
 certain solid mineral products and lease types; see
 Sec.  210.203..........................................
Sales Summaries--Due monthly or as requested for               1010-0120
 specific solid mineral products and lease types; see
 Sec.  210.202..........................................
------------------------------------------------------------------------

* * * * *
    c. In paragraph (b)(2), first sentence, remove the words ``or MMS-
4030.'' Also, remove the name ``Royalty Management Program'' and add in 
its place the name ``Minerals Revenue Management.''
    d. In paragraph (b)(3), first sentence, remove the words ``MMS-
4059, MMS-4060,.'' Also, remove the name ``Royalty Management Program'' 
and add in its place ``Minerals Revenue Management.''
    e. Remove paragraph (b)(6).
    f. Add paragraphs (b)(6) through (b)(9) to read as follows:


Sec. 210.10  Information collection.

* * * * *
    (b) * * *
    (6) Requests for Form MMS-4430 should be addressed to Minerals 
Management Service, Minerals Revenue Management, Solid Minerals and 
Geothermal Compliance and Asset Management, P.O. Box 25165, MS 390G1, 
Denver, Colorado 80225-0165. Completed forms should be mailed to 
Minerals Management Service, Minerals Revenue Management, Solid 
Minerals and Geothermal Compliance and Asset Management, P.O. Box 
17110, Denver, Colorado 80217-0110.
    (7) Facility data and sales summaries--when not submitted 
electronically--should be mailed to Minerals Management Service, 
Minerals Revenue Management, Solid Minerals and Geothermal Compliance 
and Asset Management, P.O. Box 25165, Mail Stop 390G1, Denver, Colorado 
80225-0165.
    (8) Sales contracts should be mailed to Minerals Management 
Service, Minerals Revenue Management, Solid Minerals and Geothermal 
Compliance and Asset Management, P.O. Box 25165, MS 390G1, Denver, 
Colorado 80225-0165.
    (9) Reports sent by special couriers or overnight mail (excluding 
U.S. Postal Service Express Mail) should be addressed as follows:
    (i) For oil and gas and geothermal leases, the address is: Minerals 
Management Service, Minerals Revenue Management, Building 85, Room A-
614, Denver Federal Center, Denver, Colorado 80225; and
    (ii) For solid mineral leases, the address is: Minerals Management 
Service, Solid Minerals and Geothermal Compliance and Asset Management, 
Building 85, Room A-614, Denver Federal Center, Denver, Colorado 80225.
* * * * *
    g. Remove paragraphs (c)(4), (c)(11), and (c)(12).
    h. Redesignate paragraphs (c)(5) through (c)(10) as paragraphs 
(c)(4) through (c)(9).
    i. Redesignate paragraphs (c)(13) through (c)(20) as paragraphs 
(c)(10) through (c)(17).
    j. Add paragraphs (c)(18) through (c)(21) to read as follows:


Sec. 210.10  Information collection.

* * * * *
    (c) * * *
    (18) MMS-4430--Submitted monthly to report production from and 
royalty due on all Federal and Indian solid minerals leases (See 
Sec. 210.201). The data is used to distribute payments to appropriate 
recipients and to determine if lessees properly paid lease obligations. 
Public reporting burden is estimated to be 20 minutes per month per 
reporter. Comments submitted relating to this information collection 
should reference OMB Control Number 1010-0120.
    (19) Facility Data--Submitted monthly by operators of wash plant, 
refining, ore concentration, or other processing facilities for 
specific solid minerals produced from specific Federal and Indian lease 
types or when otherwise requested by MMS (see Sec. 210.204). The data 
is used to assure that Federal or Indian lease processed production 
(the output of process plants) is consistent with the input of raw 
production. Public reporting burden is estimated to be approximately 15 
minutes per reporter per month to compile in-house formatted 
information and submit that information electronically. Comments 
submitted relating to this information collection should reference OMB 
Control Number 1010-0120.
    (20) Sales Contracts--Submitted each calendar quarter by producers 
of specific solid mineral products on specific Federal and Indian lease 
types or when otherwise requested by MMS (see Sec. 210.203). Contracts, 
agreements, contract amendments and other documents affecting gross 
proceeds are used for compliance purposes including, but not limited 
to, identifying valuation issues and establishing selling arrangement 
relationships. Public reporting burden is estimated to be 1 hour per 
reporter per month to compile and submit contracts and contract 
amendments. Comments submitted relating to this information collection 
should reference OMB Control Number 1010-0120.
    (21) Sales Summaries--Submitted monthly by producers of specific 
solid minerals from specific Federal and Indian lease types or when 
otherwise requested by MMS (see Sec. 210.202). This data is used for 
compliance purposes including, but not limited to, assuring that sales 
volumes and values are properly attributed or allocated to Federal or 
Indian leases. Public reporting burden is estimated to be 15 minutes 
per month for each reporter to compile in-house formatted sales 
information and submit that information electronically. Comments 
submitted relating to this information collection should reference OMB 
Control Number 1010-0120.
* * * * *
    k. Revise paragraph (d) to read as follows:


Sec. 210.10  Information collection.

* * * * *
    (d) Comments on burden estimates. Send comments on the accuracy of 
this burden estimate or suggestions on reducing this burden to the 
Minerals Management Service, Attention: Information Collection 
Clearance Officer, (OMB Control Number 1010-     (insert appropriate 
OMB Control Number), Mail Stop 4230, 1849 C Street, NW, Washington, 
D.C. 20240. 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.


Secs. 210.200-210.204  [Removed]

    15. Remove Secs. 210.200 through 210.204.

[[Page 30132]]

Secs. 210.200-210.205  [Added]

    16. Add Secs. 210.200 through 210.205 to read as follows:
Subpart E--Solid Minerals, General
Sec.
210.200  What is the purpose of this subpart?
210.201  How do I submit Form MMS-4430, Solid Minerals Production 
and Royalty Report?
210.202  How do I submit sales summaries?
210.203  How do I submit sales contracts?
210.204  How do I submit facility data?
210.205  Do I need to submit additional documents or evidence to 
MMS?


Sec. 210.200  What is the purpose of this subpart?

    This subpart explains your reporting requirements if you produce 
coal or other solid minerals from Federal or Indian leases. Included 
are your requirements for reporting production, sales, and royalties.


Sec. 210.201  How do I submit Form MMS-4430, Solid Minerals Production 
and Royalty Report?

    (a) What to submit. (1) You must submit a completed Form MMS-4430 
for all coal and other solid minerals produced from Federal and Indian 
leases accompanied by all required royalty and rental payments (except 
for first year rentals).
    (2) You must submit a completed Form MMS-4430 for any product you 
sell from a remote storage site. If you sell from five or fewer remote 
storage sites, you must report sales from each site on separate Forms 
MMS-4430. If you sell from more than five remote storage sites, you 
must total the data from all sites and report the summarized data on 
one Form MMS-4430.
    (3) Instructions for completing and submitting Form MMS-4430 are 
available on our Internet web site or you may contact us toll free at 
1-888-201-6416.
    (b) When to submit. (1) Unless your lease terms specify a different 
frequency for royalty payments, you must submit your Form MMS-4430 
monthly. Your Form MMS-4430 is due at the end of the month following 
the month in which a reportable action occurs. However, if the last day 
of the month falls on a weekend or holiday, your Form MMS-4430 is due 
on the next business day.
    (2) If your lease terms specify a different frequency for royalty 
payment, then you must report at the same time you must pay according 
to lease terms.
    (3) If you are submitting a Form MMS-4430 to accompany a rental 
payment, your report is due no later than the rental payment date 
specified in your lease terms.
    (4) If the information on a previously reported Form MMS-4430 is 
incorrect or has changed, you must submit a revised Form MMS-4430 by 
the last day of the month in which you discover the error or change, 
except when the last day of the month falls on a weekend or holiday. If 
the last day of the month falls on a weekend or holiday, your revised 
Form MMS-4430 is due on the first business day of the following month.
    (c) How to submit. (1) You must submit Form MMS-4430 electronically 
using our Internet web site unless you meet the conditions in 
paragraphs (c)(2) or (c)(3) of this section. We will provide written 
instructions and a valid login identification and password before you 
begin reporting.
    (2) You are not required to report electronically if you report 
only rent, minimum royalty, or other annual obligations on Form MMS-
4430. These payments are submitted with a courtesy notice as instructed 
in Sec. 218.201(c) of this chapter.
    (3) You are not required to report electronically if you are a 
small business as defined by the U.S. Small Business Administration (13 
CFR 121.201) and you have no computer, no plans to purchase a computer 
or contract with an electronic reporting service.


Sec. 210.202  How do I submit sales summaries?

    (a) What to submit. You must submit sales summaries for all coal 
and other solid minerals produced from Federal and Indian leases and 
for any remote storage site from which you sell Federal or Indian solid 
minerals. If you sell from five or fewer remote storage sites, you must 
submit a sales summary for each site. If you sell from more than five 
remote storage sites, you may total the data from all sites and submit 
the summarized data as one sales summary. The details you report on the 
sales summary are for the same sales reported on Form MMS-4430. Use the 
following table to determine the time frames for submitting sales 
summaries and the data elements you must include:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                All other leases   All other leases with
          Date element                  Coal          Sodium/potassium   Western phosphate        Metals        with ad valorem    no ad valorem royalty
                                                                                                                 royalty terms             terms
--------------------------------------------------------------------------------------------------------------------------------------------------------
(1) Purchaser name or unique     Monthly...........  As requested......  Monthly..........  Monthly..........  Monthly..........  As requested.
 identification.
(2) Sales units................  Monthly...........  Monthly...........  Monthly..........  Monthly..........  Monthly..........  Monthly.
(3) Gross proceeds.............  Monthly...........  Monthly...........  Not required.....  Monthly..........  Monthly..........  Not required.
(4) Processing or washing costs  Monthly...........  Monthly...........  Not required.....  Monthly..........  Monthly..........  Not required.
(5) Transportation costs.......  Monthly...........  Monthly...........  Not required.....  Monthly..........  Monthly..........  Not required.
(6) Name of product type sold..  Not required......  Monthly...........  Not required.....  Monthly..........  Monthly..........  As Required.
(7) Btu/lb.....................  Monthly...........  Not required......  Not required.....  Not required.....  Not required.....  Not required.
(8) Ash %......................  Monthly...........  Not required......  Not required.....  Not required.....  Not required.....  Not required.
(9) Sulfur %...................  Monthly...........  Not required......  Not required.....  Not required.....  Not required.....  Not required.
(10) lbs SO2...................  Monthly...........  Not required......  Not required.....  Not required.....  Not required.....  Not required.
(11) Moisture %................  Monthly...........  Not required......  Monthly..........  Not required.....  Not required.....  Not required.
(12) By-product units..........  Not required......  As requested......  Monthly..........  As requested.....  As requested.....  Not required.
(13) P2O5 %....................  Not required......  Not required......  Monthly..........  Not required.....  Not required.....  Not required.
(14) Size......................  Monthly...........  Not required......  Not required.....  Not required.....  As requested.....  Not required.
(15) Net smelter return data...  Not required......  Not required......  Not required.....  Monthly..........  Not required.....  Not required.

[[Page 30133]]

 
(16) Other data e.g., royalty    As requested......  Monthly...........  As requested.....  As requested.....  As requested.....  As requested.
 calculation worksheet.
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (b) When to submit. (1) For leases with ad valorem royalty terms 
(that is, leases for which royalty due is dependent upon sales value), 
you must submit your sales summaries monthly at the same time you 
submit Form MMS-4430.
    (2) For leases with no ad valorem royalty terms (that is, leases in 
which the royalty due is not dependent upon sales value such as cents-
per-ton or dollars-per-unit), you must submit monthly sales summaries 
only if we specifically request you to do so.
    (c) How to submit. (1) You should provide the sales summary data 
via electronic mail. We will provide instructions and the proper e-mail 
address for these submissions.
    (2) We will accept sales summary data submissions in paper copy. If 
you submit sales summaries by paper, use our mailing addresses in 
Sec. 210.203(c).


Sec. 210.203  How do I submit sales contracts?

    (a) What to submit. You must submit sales contracts, agreements, 
contract amendments, or other documents that affect gross proceeds 
received for the sale of all coal and other solid minerals produced 
from Federal and Indian leases with ad valorem royalty terms.
    (b) When to submit. (1) For coal and metal production, you must 
submit the required documents at the end of each calendar quarter.
    (2) For sodium, potassium, and phosphate production, and production 
from any other lease with ad valorem royalty terms, you must submit the 
required documents only if you are specifically requested to do so.
    (c) How to submit. You must submit complete copies to us at one of 
the following addresses:
    (1) For U.S. Postal Service mail service (including Express Mail): 
Minerals Management Service, Minerals Revenue Management, Solid 
Minerals and Geothermal Compliance and Asset Management, P.O. Box 
25165, MS 390G1, Denver, Colorado 80225-0165; or
    (2) For courier service (excluding Express Mail): Minerals 
Management Service, Solid Minerals and Geothermal Compliance and Asset 
Management, Building 85, Room A-614, Denver Federal Center, Denver, 
Colorado 80225.


Sec. 210.204  How do I submit facility data?

    (a) What to submit. If you operate a wash plant, refining, ore 
concentration, or other processing facility for any coal, sodium, 
potassium, metals, or other solid minerals produced from Federal or 
Indian leases with ad valorem royalty terms, you must submit facility 
data, regardless of whether the facility is located on or off the 
lease. You must include in your facility data all leases processed in 
the facility (Federal and non-Federal and Indian and non-Indian). 
Facility data submissions must include the following minimum 
information: identification of your facility, mines served, input 
quantity, output quantity, and output quality or product grades.
    (b) When to submit. You must submit your facility data monthly at 
the same time you submit your Form MMS-4430.
    (c) How to submit. (1) You should provide the facility data via 
electronic mail. We will provide instructions and the proper e-mail 
address for these submissions before you begin reporting.
    (2) We will accept facility data submissions in paper copy. If 
submitting facility data by paper, use our mailing addresses in 
Sec. 210.203(c).


Sec. 210.205  Do I need to submit additional documents or evidence to 
MMS?

    (a) Federal and Indian lease terms allow us to request detailed 
statements, documents, or other evidence that supports our compliance 
and asset management responsibilities.
    (b) We will only request this additional information as we need it, 
not as a regular submission.

PART 216--PRODUCTION ACCOUNTING

    17. The authority citation for part 216 continues to read as 
follows:

    Authority: 5 U.S.C. 301 et seq.; 25 U.S.C. 396, 2107; 30 U.S.C. 
189, 190, 359, 1023, 1751(a); 31 U.S.C. 3716, 9701; 43 U.S.C. 1334, 
1801 et seq.; and 44 U.S.C. 3506(a).
    18. Revise Sec. 216.11 to read as follows:


Sec. 216.11  Electronic reporting.

    (a) You must submit your Oil and Gas Operations Report, Form MMS-
4054, in accordance with electronic reporting requirements in 
Secs. 210.20 through 210.22 of this chapter.
    (b) You must submit your Solid Minerals Production and Royalty 
Report, Form MMS-4430, in accordance with electronic reporting 
requirements in Sec. 210.201 of this chapter.
    19. In Sec. 216.15, revise paragraph (a) to read as follows:


Sec. 216.15  Reporting instructions.

    (a) Specific guidance on how to prepare and submit required 
information collection reports and forms to MMS may be obtained from 
the following sources:
    (1) For oil and gas, instructions are available in handbooks 
requested at Minerals Management Service, Minerals Revenue Management, 
P.O. Box 17110, Denver, Colorado 80217-0110.
    (2) For coal and other solid minerals, instructions are available 
at our Internet web site or by calling 1-888-201-6416.
    20. In Sec. 216.16, revise paragraphs (a) and (b) to read as 
follows:


Sec. 216.16  Where to report.

    (a) All reporting forms listed in this part that are mailed or sent 
by U.S. Postal Service (including express mail) should be mailed to the 
following addresses:
    (1) For oil and gas, the address is Minerals Management Service, 
Minerals Revenue Management, P.O. Box 17110, Denver, Colorado 80217-
0110; and
    (2) For coal and other solid minerals, the address is Minerals 
Management Service, Minerals Revenue Management, Solid Minerals and 
Geothermal Compliance and Asset Management, P.O. Box 17110, Denver, 
Colorado 80225-0110.
    (b) Reports delivered to MMS by special couriers or overnight mail 
(except U.S. Postal Service express mail) should be addressed as 
follows:
    (1) For oil and gas, the address is Minerals Management Service, 
Minerals Revenue Management, Building 85, Room A-614, Denver Federal 
Center, Denver, Colorado 80225; and
    (2) For coal and other solid minerals, the address is Minerals 
Management Service, Minerals Revenue Management, Solid Minerals and 
Geothermal Compliance and Asset Management,

[[Page 30134]]

Building 85, Room A-614, Denver Federal Center, Denver, Colorado 80225.
* * * * *


Sec. 216.21  [Amended]

    21. Amend Sec. 216.21 as follows:
    (a) In the second sentence, remove the words ``the Production 
Accounting and Auditing System Reporters Handbook'' and add in their 
place ``our reporter handbooks or our Internet web site.''
    (b) In the last sentence, remove the word ``handbook'' and add in 
its place ``handbooks.''
    22. In Sec. 216.40, revise paragraph (d) to read as follows:


Sec. 216.40  Assessments for incorrect or late reports and failure to 
report.

* * * * *
    (d) For purposes of solid minerals reporting, a report is defined 
as each line of information required on the Solid Minerals Production 
and Royalty Report, Form MMS-4430.
* * * * *

Subpart E--Solid Minerals, General [Reserved]


Secs. 216.200--216.204  [Removed]

    23. Remove Secs. 216.200 through 216.204 and reserve subpart E.

PART 218--COLLECTION OF ROYALTIES, RENTALS, BONUSES AND OTHER 
MONIES DUE THE FEDERAL GOVERNMENT

    24. The authority citation for part 218 continues to read as 
follows:

    Authority: 25 U.S.C. 396 et seq., 396a et seq., 2101 et seq.; 30 
U.S.C. 181 et seq., 351 et seq., 1001 et seq., 1701 et seq.; 31 
U.S.C.A. 3335; 43 U.S.C. 1301 et seq., 1331 et seq., and 1801 et 
seq.

    25. In Sec. 218.40, revise paragraph (c) to read as follows:


Sec. 218.40  Assessments for incorrect or late reports and failure to 
report.

* * * * *
    (c) For purposes of assessments discussed in this section, a report 
is defined as follows:
    (1) For coal and other solid mineral leases, a report is each line 
on the Solid Minerals Production and Royalty Report, Form MMS-4430.
    (2) For geothermal leases, a report is each line on the Report of 
Sales and Royalty Remittance, Form MMS-2014.
    (3) For oil and gas leases, this section does not apply.
* * * * *


Sec. 218.51  [Amended]

    26. Amend Sec. 218.51 as follows:
    a. In paragraph (d)(2) and (d)(3), remove the name ``Royalty 
Management Program'' and add in its place the name ``Minerals Revenue 
Management.''
    b. In paragraph (e), remove the name ``Royalty Management Program'' 
and add in its place the name ``Minerals Revenue Management'' and 
remove the room number ``A-212'' and add in its place ``A-614.''
    27. Revise Sec. 218.201 to read as follows:


Sec. 218.201  Method of payment.

    You must tender all payments in accordance with Sec. 218.51, except 
as follows:
    (a) For purposes of this section, report means the Solid Minerals 
Production and Royalty Report, Form MMS-4430, rather than the Form MMS-
2014.
    (b) For Form MMS-4430 payments, include both your customer 
identification and your customer document identification numbers on 
your payment document, rather than the information required under 
Sec. 218.51(f)(1).
    (c) For a rental payment that is not reported on Form MMS-4430, 
include the MMS Courtesy Notice when provided or write your customer 
identification number and Government-assigned lease number on the 
payment document, rather than the information required under 
Sec. 218.51(f)(4)(iii).


Sec. 218.203  [Amended]

    28. Amend Sec. 218.203 as follows:
    a. In paragraph (a), first sentence, remove the word ``MMS-2014'' 
and add in its place ``MMS-4430.''
    b. In paragraph (b), second sentence, remove the words ``in the 
[``]AFS Payor Handbook--Solid Minerals[''].''
    c. In paragraph (b), remove the third sentence, ``See 30 CFR 
210.204[.]'' and add in its place the sentence ``Call 1-888-201-6416 
for instructions.''

[FR Doc. 01-14123 Filed 6-4-01; 8:45 am]
BILLING CODE 4310-MR-P


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