Federal Register / Vol. 66, No. 108 / Tuesday, June 5, 2001 / Proposed Rules 30121

Regulatory Policies and Procedures (44

FR 11034; February 26, 1979); and (3)

does not warrant preparation of a

Regulatory Evaluation, as the

anticipated impact is so minimal. Since

this is a routine matter that will only

affect air traffic procedures and air

navigation, it is certified that this

proposed rule would not have a

significant economic impact on a

substantial number of small entities

under the criteria of the Regulatory

Flexibility Act.

List of Subjects in 14 CFR Part 71

Airspace, Incorporation by reference,

Navigation (air).

The Proposed Amendment

In consideration of the foregoing, the

Federal Aviation Administration

proposes to amend 14 CFR part 71 as

follows:

PART 71—DESIGNATION OF CLASS A,

CLASS B, CLASS C, CLASS D AND

CLASS E AIRSPACE AREAS;

AIRWAYS; ROUTES; AND REPORTING

POINTS

1. The authority citation for 14 CFR

part 71 continues to read as follows:

Authority: 49 U.S.C. 106(g), 40103, 40113,

40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959–

1963 Comp., p. 389.

§ 71.1 [Amended]

2. The incorporation by reference in

14 CFR 71.1 of the Federal Aviation

Administration Order 7400.9H,

Airspace Designations and Reporting

Points, dated September 1, 2000, and

effective September 16, 2000, is

amended as follows:

Paragraph 5000 Class D Airspace

* * * * *

AWP AZ D Chandler Municipal Airport,

AZ [REVISED]

Chandler Municipal Airport, AZ

(Lat. 33°16′09′′ N, long. 111°48′40′′ W)

Williams Gateway Airport, AZ

(Lat. 33°18′28′′ N, long. 111°39′19′′ W)

That airspace extending upward from the

surface to, but not including, 3,000 feet MSL

within a 4-mile radius of Chandler Municipal

Airport, excluding the portion within the

Williams Gateway Airport, AZ, Class D

airspace area. This Class D airspace area is

effective during the specific dates and times

established in advance by a Notice to

Airmen. The effective date and time will

thereafter be continuously published in the

Airport/Facility Directory.

* * * * *

Issued in Los Angeles, California, on May

21, 2001.

John Clancy,

Manager, Air Traffic Division, Western-Pacific

Region.

[FR Doc. 01–14106 Filed 6–4–01; 8:45 am]

BILLING CODE 4910–13–M

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.

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. MRM.comments@mms.gov.

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

MRM.comments@mms.gov.

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

30122 Federal Register / Vol. 66, No. 108 / Tuesday, June 5, 2001 / Proposed Rules

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:

• Form MMS–4430 is designed to

collect the appropriate information from

solid mineral lessees at the appropriate

time in the business cycle;

• Form MMS–4430 and the three

other data collections replace eight

separate forms that companies are

currently required to file;

• Form MMS–4430 allows for the net

reporting of prior period adjustments

thus reducing reporting burden by

approximately 40 percent; and

• 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:

• 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.

• 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.

• 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.

• 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.

• 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 interestbearing 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.

• 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.

• 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.

• 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

Federal Register / Vol. 66, No. 108 / Tuesday, June 5, 2001 / Proposed Rules 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 §§ 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 § 210.202 which is summarized

in a table. We would also remove

§§ 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 § 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 §§ 210.200 through

210.205 below for a complete

explanation of the new reporting

requirements.

Subpart E—Solid Minerals, General

We would remove existing §§ 210.200

through 210.204 because they pertain to

forms that would be eliminated in this

proposed rulemaking. We would add

new §§ 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

30124 Federal Register / Vol. 66, No. 108 / Tuesday, June 5, 2001 / Proposed Rules

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:

Data element Coal Sodium/potassium Western phosphate Metals

All other leases

with ad valorem

royalty terms

All other leases

with no ad valorem royalty

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 SO2 ................. 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.

P2O5 % ................. 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 calculation worksheet.

As requested ........ Monthly ................ As requested ........ As requested ........ As requested ........ As requested.

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:

• 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.

• 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.

• 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.

• If you produce metals from Federal

or Indian leases, you would submit your

Federal Register / Vol. 66, No. 108 / Tuesday, June 5, 2001 / Proposed Rules 30125

sales contracts (typically net smelter

return contracts) to us quarterly.

• 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.

• 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 § 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 metalbearing 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 § 216.11 to add the

reference to electronic reporting

requirements for Form MMS–4430.

Section 216.15 Reporting Instructions

We would revise § 216.15 to inform

solid minerals reporters where they may

obtain solid mineral reporting

instructions.

Section 216.16 Where to Report

In § 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 § 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 § 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 §§ 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 § 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 § 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 § 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 § 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

30126 Federal Register / Vol. 66, No. 108 / Tuesday, June 5, 2001 / Proposed Rules

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 × 1⁄3 hour

per month × 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 × 1⁄4 hour per month × 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 × 1⁄4 hour per month

× 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

× 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:

Document name

Estimated

hours to

prepare

and submit

Total cost

hrs × $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

Federal Register / Vol. 66, No. 108 / Tuesday, June 5, 2001 / Proposed Rules 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 processcentered 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 costeffective 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 × 2,080 hours/year × $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 × 2,080 hours/

year × $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

÷ 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

30128 Federal Register / Vol. 66, No. 108 / Tuesday, June 5, 2001 / Proposed Rules

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 mrm.comments@mms.gov.

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,

Federal Register / Vol. 66, No. 108 / Tuesday, June 5, 2001 / Proposed Rules 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 × 1⁄3 hour

per month × 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 × 1⁄4 hour per month × 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 × 1.4 hour per month

× 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

× 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:

Document Name

Estimated

hours to

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 × $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 ‘‘§ ’’ and a numbered

heading, for example, ‘‘§ 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 email the comments to this address:

Exsec@ios.doi.gov.

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:

30130 Federal Register / Vol. 66, No. 108 / Tuesday, June 5, 2001 / Proposed Rules

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.

§ 206.251 [Amended]

2. In § 206.251, definition of

‘‘netting,’’ remove the word ‘‘MMS–

2014’’ and add in its place the word

‘‘MMS–4430.’’

§ 206.254 [Amended]

3. Amend § 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).

§ 206.257 [Amended]

4. Amend § 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.’’

§ 206.259 [Amended]

5. In § 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.’’

§ 206.262 [Amended]

6. In § 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.’’

§ 206.263 [Removed]

7. Remove § 206.263.

§ 206.453 [Amended]

8. Amend § 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).

§ 206.456 [Amended]

9. Amend § 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.’’

§ 206.458 [Amended]

10. Amend § 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.’’

§ 206.461 [Amended]

11. Amend § 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.’’

§ 206.462 [Removed]

12. Remove § 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 § 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:

§ 210.10 Information collection.

(a) * * *

Form No., name, and filing date OMB No.

MMS–2014—Report of Sales and Royalty Remittance—Due by the end of first month following production month for royalty

payment and for rentals no later than anniversary date of the lease ............................................................................................. 1010–0022

MMS–3160—Monthly Report of Operations—Due by the 15th day of the second month following the production month .............. 1010–0040

MMS–4025—Oil and Gas Payor Information Form— Due 30 days after issuance of a new lease or change to an existing lease 1010–0033

MMS–4051—Facility and Measurement Information Form and Supplement—Due at the request of MMS during the initial conversion of the facility and measurement device operators .............................................................................................................. 1010–0040

MMS–4053—First Purchaser Report—Due at the request of MMS ................................................................................................... 1010–0040

MMS–4054—Oil and Gas Operations Report—Due by the 15th day of the second month following the production month ........... 1010–0040

MMS–4055—Gas Analysis Report—Due by the 15th day of the second month following the production month ............................ 1010–0040

MMS–4056—Gas Plant Operations Report—Due by the 15th day of the second month following the production month ............... 1010–0040

MMS–4058—Production Allocation Schedule Report—Due by the 15th day of the second month following the production month 1010–0040

MMS–4070—Application of the Purchase of Royalty Oil—Due prior to the date of sale in accordance with the instructions in the

Notice of Availability of Royalty Oil .................................................................................................................................................. 1010–0042

MMS–4109—Gas Processing Allowance Summary Report—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 ........................................................ 1010–0075

MMS–4110—Oil Transportation Allowance Report—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 ......................................................................... 1010–0061

MMS–4280—Application for Reward for Original 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 ....................................................................... 1010–0076

MMS–4292—Coal Washing 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 not change .......................................................................................... 1010–0074

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 not change .............................................................................................. 1010–0074

MMS–4295—Gas Transportation Allowance Report—Initial 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 .................................................................................... 1010–0075

Federal Register / Vol. 66, No. 108 / Tuesday, June 5, 2001 / Proposed Rules 30131

Form No., name, and filing date OMB No.

MMS–4377—Stripper Royalty Rate Reduction Notification—Due for each 12-month qualifying period that a reduced royalty rate

is granted by the Bureau of Land Management .............................................................................................................................. 1010–0090

MMS–4430—Solid Minerals Production and Royalty Report—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 .................................................................................. 1010–0120

Facility Data—Due monthly or as requested for specific solid mineral products and lease types; see § 210.204 ............................ 1010–0120

Sales Contracts—Due quarterly or as requested on certain solid mineral products and lease types; see § 210.203 ...................... 1010–0120

Sales Summaries—Due monthly or as requested for specific solid mineral products and lease types; see § 210.202 ................... 1010–0120

* * * * *

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:

§ 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:

§ 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 § 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

§ 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 § 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 § 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:

§ 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.

§§ 210.200–210.204 [Removed]

15. Remove §§ 210.200 through

210.204.

30132 Federal Register / Vol. 66, No. 108 / Tuesday, June 5, 2001 / Proposed Rules

§§ 210.200–210.205 [Added]

16. Add §§ 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?

§ 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.

§ 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 § 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.

§ 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:

Date element Coal Sodium/potassium Western phosphate Metals

All other leases

with ad valorem

royalty terms

All other leases

with no ad valorem royalty

terms

(1) Purchaser

name or unique

identification.

Monthly ................ As requested ........ Monthly ................ Monthly ................ Monthly ................ As requested.

(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.

Federal Register / Vol. 66, No. 108 / Tuesday, June 5, 2001 / Proposed Rules 30133

Date element Coal Sodium/potassium Western phosphate Metals

All other leases

with ad valorem

royalty terms

All other leases

with no ad valorem royalty

terms

(16) Other data

e.g., royalty calculation worksheet.

As requested ........ Monthly ................ As requested ........ As requested ........ As requested ........ As requested.

(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 § 210.203(c).

§ 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.

§ 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 nonIndian). 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 § 210.203(c).

§ 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 § 216.11 to read as follows:

§ 216.11 Electronic reporting.

(a) You must submit your Oil and Gas

Operations Report, Form MMS–4054, in

accordance with electronic reporting

requirements in §§ 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 § 210.201 of this chapter.

19. In § 216.15, revise paragraph (a) to

read as follows:

§ 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 § 216.16, revise paragraphs (a)

and (b) to read as follows:

§ 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,

30134 Federal Register / Vol. 66, No. 108 / Tuesday, June 5, 2001 / Proposed Rules

Building 85, Room A–614, Denver

Federal Center, Denver, Colorado 80225.

* * * * *

§ 216.21 [Amended]

21. Amend § 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 § 216.40, revise paragraph (d) to

read as follows:

§ 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]

§§ 216.200—216.204 [Removed]

23. Remove §§ 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 § 218.40, revise paragraph (c) to

read as follows:

§ 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.

* * * * *

§ 218.51 [Amended]

26. Amend § 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 § 218.201 to read as

follows:

§ 218.201 Method of payment.

You must tender all payments in

accordance with § 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

§ 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 Governmentassigned lease number on the payment

document, rather than the information

required under § 218.51(f)(4)(iii).

§ 218.203 [Amended]

28. Amend § 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

NATIONAL ARCHIVES AND RECORDS

ADMINISTRATION

36 CFR Part 1202

RIN 3095–AA99

Privacy Act; Implementation

AGENCY: National Archives and Records

Administration (NARA).

ACTION: Proposed rule.

SUMMARY: NARA is rewriting our

Privacy Act regulations to update the

procedures for making a Privacy Act

request, and to reflect the President’s

memorandum of June 1, 1998, Plain

Language in Government Writing. This

proposed rule will affect individuals

and entities seeking access or disclosure

of information contained in NARA

Privacy Act systems of records and

subject individuals covered by a NARA

Privacy Act system.

DATES: Comments must be received by

August 6, 2001.

ADDRESSES: Comments must be sent to

Regulation Comments Desk (NPOL),

Room 4100, Policy and

Communications Staff, National

Archives and Records Administration,

8601 Adelphi Road, College Park, MD

20740–6001. They may be faxed to 301–

713–7270. You may also comment via

the Internet to comments@NARA.GOV.

Please submit Internet comments as

an ASCII file avoiding the use of special

characters and any form of encryption.

Please also include ‘‘Attn: 3095–AA99’’

and your name and return mailing

address in your Internet message. If you

do not receive a confirmation from

NARA that we have received your

Internet message, contact the Regulation

Comment Desk at 301–713–7360, ext.

226.

FOR FURTHER INFORMATION CONTACT:

Nancy Allard at telephone number 301–

713–7360, ext. 226, or fax number 301–

713–7270.

SUPPLEMENTARY INFORMATION: As noted

in the SUMMARY, NARA is rewriting its

regulations on implementing the

Privacy Act of 1974, in accordance with

the Presidential Memorandum of June 1,

1998. The proposed rule is written in

plain language. Each section is written

in the question and answer format. This

format not only simplifies the

regulations and its application, but it

personalizes the regulation to the

customer. The proposed rule specifies

how NARA collects, maintains and uses

personal information collected and

maintained by NARA and defunct

agencies under the Privacy Act. The

proposed rule explains the authority

under which NARA collects and

disseminates this information, how a

person can obtain access to such

information, and how to amend or

correct such information.

NARA last amended its Privacy Act

regulations in 1998 (63 FR 70342). In

preparing to rewrite the regulations in

plain language, we reviewed our

policies and procedures. We have also

reviewed all of our Privacy Act systems

of records. As a result of these actions,

we are making several substantive

changes to the regulations. First, NARA

does not forward requests for other

agencies’ records stored in a NARA

record center to the appropriate agency;

therefore, in the proposed rule we tell

the requester that he/she must request