[Federal Register Volume 70, Number 177 (Wednesday, September 14, 2005)]
[Notices]
[Pages 54403-54406]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-18161]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service


Agency Information Collection Activities: Proposed Collection, 
Comment Request

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Notice of a revision of a currently approved information 
collection (OMB Control Number 1010-0139).

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SUMMARY: To comply with the Paperwork Reduction Act (PRA) of 1995, we 
are inviting comments on a collection of information that we will 
submit to the Office of Management and Budget (OMB) for review and 
approval. The new title for this ICR is ``30 CFR Part 216--Production 
Accounting, Subpart A--General Provisions, and Subpart B--Oil and Gas, 
General; and Part 210--Forms and Reports (Forms MMS-4054, Oil and Gas 
Operations Report, and MMS-4058, Production Allocation Schedule 
Report).'' The previous title was ``30 CFR Part 216, Production 
Accounting, Subparts A and B; and Part 210--Forms and Reports.''

DATES: Submit written comments on or before November 14, 2005.

ADDRESSES: Submit written comments to Sharron L. Gebhardt, Lead 
Regulatory Specialist, Minerals Management Service, Minerals Revenue 
Management, P.O. Box 25165, MS 302B2, Denver, Colorado 80225. If you 
use an overnight courier service or wish to hand-carry your comments, 
our courier address is Building 85, Room A-614, Denver Federal Center, 
West 6th Ave. and Kipling Blvd., Denver, Colorado 80225. You may also 
e-mail your comments to us at <a href="/cdn-cgi/l/email-protection#fb968996d5989496969e958f88bb969688d59c948d"><span class="__cf_email__" data-cfemail="39544b54175a5654545c574d4a7954544a175e564f">[email protected]</span></a>. Include the title 
of the information collection and the OMB control number in the 
``Attention'' line of your comment. Also, include your name and return 
address. Submit electronic comments as an ASCII file avoiding the use 
of special characters and any form of encryption. If you do not receive 
a confirmation that we have received your e-mail, contact Ms. Gebhardt 
at (303) 231-3211.

FOR FURTHER INFORMATION CONTACT: Sharron L. Gebhardt, telephone (303) 
231-3211, FAX (303) 231-3781, or e-mail <a href="/cdn-cgi/l/email-protection#66150e0714140908480103040e07140212260b0b1548010910"><span class="__cf_email__" data-cfemail="a6d5cec7d4d4c9c888c1c3c4cec7d4c2d2e6cbcbd588c1c9d0">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: Title: 30 CFR Part 216--Production 
Accounting, Subpart A--General Provisions, and Subpart B--Oil and Gas, 
General; and Part 210-Forms and Reports (Forms MMS-4054, Oil and Gas 
Operations Report, and MMS-4058, Production Allocation Schedule 
Report).
    OMB Control Number: 1010-0139.
    Bureau Form Number: Forms MMS-4054 and MMS-4058.
    Abstract: The Secretary of the U.S. Department of the Interior is 
responsible for collecting royalties from lessees who produce minerals 
from leased Federal and Indian lands. The Secretary is required by 
various laws to manage

[[Page 54404]]

mineral resources production on Federal and Indian lands, collect the 
royalties due, and distribute the funds in accordance with those laws.
    The Secretary also has a trust responsibility to manage Indian 
lands and seek advice and information from Indian beneficiaries. The 
MMS performs the royalty management functions and assists the Secretary 
in carrying out the Department's trust responsibility for Indian lands.
    When a company or an individual enters into a lease to explore, 
develop, produce, and dispose of minerals from Federal or Indian lands, 
that company or individual agrees to pay the lessor a share (royalty) 
of the value received from production from the leased lands. The lease 
creates a business relationship between the lessor and the lessee. The 
lessee is required to report various kinds of information to the lessor 
relative to the disposition of the leased minerals. Such information is 
similar to data reported to private and public mineral interest owners 
and is generally available within the records of the lessee or others 
involved in developing, transporting, processing, purchasing, or 
selling of such minerals. The information collected includes data 
necessary to ensure that the royalties are accurately valued and 
appropriately paid.
    The MMS financial accounting system is an integrated computer 
system that includes production reports submitted by lease/agreement 
operators and is designed to track minerals produced from Federal and 
Indian lands from the point of production to the point of disposition, 
or royalty determination, and/or point of sale. The financial 
accounting system also includes payment and sales volumes and values, 
as reported by payors. The production and royalty volumes are compared 
to verify that proper royalties are received for the minerals produced.
    The production reports provide MMS with ongoing information on 
lease, unit, or communitization agreement (lease/agreement) and 
facility production, sales volumes, and inventories. The reports 
summarize all operations on a lease/agreement or facility during a 
reporting period. They identify production by the American Petroleum 
Institute well number and sales by product. Data collected are used as 
a method of cross-checking reported production with reported sales. 
Failure to collect this information will prevent MMS from ensuring that 
all royalties owed on lease production are accurately valued and 
appropriately paid. Additionally, the data is shared electronically 
with the Bureau of Land Management, MMS's Offshore Minerals Management, 
Bureau of Indian Affairs, and tribal and state governments so they can 
perform their lease management responsibilities. The requirement to 
report accurately and timely is mandatory.

Form MMS-4054, Oil and Gas Operations Report (OGOR)

    This three-part form, submitted monthly, identifies all oil and gas 
lease production and dispositions. The form is used for all production 
reporting for Outer Continental Shelf, Federal and Indian lands. 
Monthly production information is compared with monthly sales and 
royalty data submitted on Form MMS-2014, Report of Sales and Royalty 
Remittance (OMB Control Number 1010-0140, expires October 31, 2006) to 
ensure proper royalties are paid on the oil and gas production reported 
to MMS. To modify previously submitted reports, the operator has the 
option of modifying the reporting line (delete/add by detail line) or 
replacing (overlaying) the previous report. The MMS uses the 
information from Parts A, B, and C of the OGOR to track all oil and gas 
from the point of production to the point of first sale or other 
disposition.
    OGOR Part A--Well Production. All operators submit Part A for each 
lease or agreement with active wells until such wells are abandoned and 
inventories are disposed. Each line identifies a well/producing 
interval combination showing well status; days on production; volumes 
of oil, gas, and water produced; and any volumes injected during the 
report month.
    OGOR Part B--Product Disposition. For any month with production 
volumes, operators submit Part B to identify the sales, transfers, and 
lease use of production reported on Part A. A separate line for each 
disposition shows: (1) The volume of oil, gas, or water; (2) the sales 
meter or other meter identifier; (3) the gas plant for instances where 
gas was processed prior to royalty determination; and (4) the quality 
of production sold.
    OGOR Part C--Product Sales from Facility. The lease operators who 
store their production before selling it must submit Part C. Separate 
lines for each product identify the storage facility, sales meter if 
applicable, quality of production sold, beginning and ending storage 
inventory, volume of sales, and volumes of other gains and losses to 
inventory.

Form MMS-4058, Production Allocation Schedule Report (PASR)

    This form is submitted monthly by operators of the facilities and 
measurement points where production from an offshore lease or metering 
point is commingled with production from other sources before it is 
measured for royalty determination.
    Each line identifies a lease or metering point and allocated sales 
or transferred volumes. Space is provided on each detail line for the 
operator's property name (area/block), and a column is provided to 
identify the product that was injected into the pipeline system. To 
modify previously submitted reports, the operator has the option of 
modifying (delete/add by detail line) or replacing (overlaying) the 
previous report. The MMS uses the data to determine whether sales 
reported by the lessee are reasonable.

Applicable Citations

    Applicable citations of the laws pertaining to mineral leases on 
Federal and Indian lands include: 25 U.S.C. 396d (Chapter 12--Lease, 
Sale or Surrender of Allotted or Unallotted Lands); 25 U.S.C. 2103 
(Indian Mineral Development Act of 1982); Public Law 97-451--Jan. 12, 
1983 (Federal Oil and Gas Royalty Management Act of 1982 [FOGRMA]); 
Public Law 104-185--Aug. 13, 1996 (Federal Oil and Gas Royalty 
Simplification and Fairness Act of 1996 [RSFA]), as corrected by Public 
Law 104-200--Sept. 22, 1996); The Mineral Leasing Act (30 U.S.C. 1923); 
and The Outer Continental Shelf Lands Act (43 U.S.C. 1353).
    Public laws pertaining to mineral royalties are located on our 
website at http://www.mrm.mms.gov/Laws_R_D/PublicLawsAMR.htm. The 
Code of Federal Regulations (CFR) citations we are covering in this ICR 
are 30 CFR parts 210 and 216.
    No proprietary information will be submitted to MMS under this 
collection. No items of a sensitive nature are collected.
    Frequency: Monthly and as required.
    Estimated Number and Description of Respondents: 2,500 oil and gas 
operators.
    Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 
76,631 hours.
    We are revising this ICR to include reporting requirements that 
were overlooked in the previous renewal (Sec. Sec.  216.2 and 216.30), 
and we have adjusted the burden hours accordingly. These reporting 
requirements are considered rare and/or unusual circumstances.
    The following chart details the estimated burden hours by CFR 
section and paragraph. In calculating the burdens, we assume that 
respondents perform certain requirements in the

[[Page 54405]]

normal course of their business activities. Therefore, we consider 
these usual and customary, and took that into account in estimating the 
burden.

                                   Respondents' Estimated Annual Burden Hours
----------------------------------------------------------------------------------------------------------------
                                                             Burden hours  per   Annual  number   Annual burden
    30 CFR parts 210 and 216        Reporting requirement        response        of  responses        hours
----------------------------------------------------------------------------------------------------------------
                                          30 CFR 210--Forms and Reports
                                          Subpart A--General Provisions
----------------------------------------------------------------------------------------------------------------
210.20(a).......................  Sec.   210.20 When is     .25 hour                   294,000           73,500
                                   electronic reporting      (Electronic).
                                   required?
                                  (a) You must submit       .25 hour (Manual).           6,000            1,500
                                   Forms * * * and MMS-
                                   4054 to MMS
                                   electronically. You
                                   must begin reporting
                                   electronically
                                   according to the
                                   following timetable * *
                                   *.
---------------------------------
210.21(c)(1)....................  Sec.   210.21 How do you         Burden covered under Sec.   210.20(a).
                                   report electronically?
                                  (c) Before you may begin
                                   reporting
                                   electronically: (1) You
                                   must submit an
                                   electronic sample of
                                   your report for MMS
                                   approval * * *.
---------------------------------
                                          30 CFR 210--Forms and Reports
                                  Subpart B--Oil, Gas, and OCS Sulfur--General
----------------------------------------------------------------------------------------------------------------
210.50..........................  Sec.   210.50 Required           Burden covered under Sec.   210.20(a).
                                   Recordkeeping.
                                  Information required by
                                   the MMS shall be filed
                                   using the forms
                                   prescribed in this
                                   subpart * * *. Records
                                   may be maintained in *
                                   * * or other recorded
                                   media that is easily
                                   reproducible and
                                   readable.
---------------------------------
                                        30 CFR 216--Production Accounting
                                          Subpart A--General Provisions
----------------------------------------------------------------------------------------------------------------
216.2...........................  Sec.   216.2 Scope......      Burden covered under Sec.  Sec.   210.20(a);
                                                                     216.56(a), (b), and (c); and 216.57.
                                  * * * Reporters are
                                   required to submit
                                   certain production
                                   reports to MMS asset
                                   forth in this part.
---------------------------------
216.11..........................  Sec.   216.11 Electronic         Burden covered under Sec.   210.20(a).
                                   reporting.
                                  You must submit your Oil
                                   and Gas Operations
                                   Report, Form MMS-4054,
                                   in accordance with
                                   electronic reporting
                                   requirements in 30 CFR
                                   part 210.
216.16(a).......................  Sec.   216.16 Where to
                                   report.
                                  (a) All reporting forms
                                   * * * should be mailed
                                   to the Minerals
                                   Management Service,
                                   Minerals Revenue
                                   Management * * *.
216.21..........................  Sec.   216.21 General
                                   obligations of the
                                   reporter.
                                  The reporter shall
                                   submit accurately,
                                   completely, and timely
                                   * * * all information
                                   forms and other
                                   information required by
                                   MMS * * *.
216.40(d).......................  Sec.   216.40
                                   Assessments for
                                   incorrect or late
                                   reports and failure to
                                   report.
                                  (d) * * * The reporter
                                   shall have the burden
                                   of proving that a
                                   reporting problem was
                                   unavoidable.
216.30..........................  Sec.   216.30 Special     1.................               1                1
                                   forms and reports.
                                  When special form and
                                   reports * * * are
                                   necessary * * *. Such
                                   requests will be made
                                   in conformity with the
                                   requirements of the
                                   Paperwork Reduction Act
                                   of 1995, and are
                                   expected to involve
                                   less than 10
                                   respondents annually.
---------------------------------
                                        30 CFR 216--Production Accounting
                                         Subpart B--Oil and Gas, General
----------------------------------------------------------------------------------------------------------------
216.53 (a), (b), and (c)........  Sec.   216.53 Oil and            Burden covered under Sec.   210.20(a).
                                   Gas Operations Report..
                                  (a) You must file an Oil
                                   and Gas Operations
                                   Report, Form MMS-4054 *
                                   * *.
                                  (b) You must submit a
                                   Form MMS-4054 for each
                                   well for each calendar
                                   month * * *.
                                  (c) MMS must receive
                                   your completed Form MMS-
                                   4054 * * *.
                                  (1) Electronically * *
                                   *.
                                  (2) Other than
                                   electronically * * *.
216.56(a), (b), and (c).........  Sec.   216.56 Production  .1167 hour                   7,280              850
                                   Allocation Schedule       (Electronic).
                                   Report.

[[Page 54406]]

 
                                  (a) Any operator of an    .25 hour (Manual).           3,120              780
                                   offshore Facility
                                   Measurement Point * * *
                                   must file a Production
                                   Allocation Schedule
                                   Report (Form MMS-4058)
                                   * * *.
                                  (b) You must submit a
                                   Production Allocation
                                   Schedule Report, Form
                                   MMS-4058, for each
                                   calendar month * * *.
                                  (c) MMS must receive
                                   your Form MMS-4058 * *
                                   *.
                                  (1) Electronically * *
                                   *.
                                  (2) Other than
                                   electronically * * *.
216.57..........................  Sec.   216.57 Stripper      Burden covered under OMB Control Number 1010-0090
                                   royalty rate reduction                (expires October 31, 2007).
                                   notification.
                                  * * * Operators who have
                                   been granted a reduced
                                   royalty rate(s) * * *
                                   must submit a Stripper
                                   Royalty Rate.
                                  Reduction Notification
                                   (Form MMS-4377) to MMS
                                   * * *.
                                                           ---------------------
    Total.......................  ........................  ..................         310,401           76,631
----------------------------------------------------------------------------------------------------------------

    Estimated Annual Reporting and Recordkeeping ``Non-hour'' Cost 
Burden: Reporters require access to the Internet through a subscription 
to an Internet provider service. The annual subscription is estimated 
at $240 per reporter.
    Public Disclosure Statement: The PRA (44 U.S.C. 3501 et seq.) 
provides that an agency may not conduct or sponsor, and a person is not 
required to respond to, a collection of information unless it displays 
a currently valid OMB control number.
    Comments: Before submitting an ICR to OMB, PRA Section 
3506(c)(2)(A) requires each agency ``* * * to provide notice * * * and 
otherwise consult with members of the public and affected agencies 
concerning each proposed collection of information * * *.'' Agencies 
must specifically solicit comments to: (a) Evaluate whether the 
proposed collection of information is necessary for the agency to 
perform its duties, including whether the information is useful; (b) 
evaluate the accuracy of the agency's estimate of the burden of the 
proposed collection of information; (c) enhance the quality, 
usefulness, and clarity of the information to be collected; and (d) 
minimize the burden on the respondents, including the use of automated 
collection techniques or other forms of information technology.
    The PRA also requires agencies to estimate the total annual 
reporting ``non-hour cost'' burden to respondents or recordkeepers 
resulting from the collection of information. We have not identified 
non-hour cost burdens for this information collection. If you have 
costs to generate, maintain, and disclose this information, you should 
comment and provide your total capital and startup cost components or 
annual operation, maintenance, and purchase of service components. You 
should describe the methods you use to estimate major cost factors, 
including system and technology acquisition, expected useful life of 
capital equipment, discount rate(s), and the period over which you 
incur costs. Capital and startup costs include, among other items, 
computers and software you purchase to prepare for collecting 
information; monitoring, sampling, and testing equipment; and record 
storage facilities. Generally, your estimates should not include 
equipment or services purchased: (i) Before October 1, 1995; (ii) to 
comply with requirements not associated with the information 
collection; (iii) for reasons other than to provide information or keep 
records for the Government; or (iv) as part of customary and usual 
business or private practices.
    We will summarize written responses to this notice and address them 
in our ICR submission for OMB approval, including appropriate 
adjustments to the estimated burden. We will provide a copy of the ICR 
to you without charge upon request. The ICR also will be posted on our 
Web site at http://www.mrm.mms.gov/Laws_R_D/FRNotices/FRInfColl.htm.
    Public Comment Policy: We will post all comments in response to 
this notice on our Web site at http://www.mrm.mms.gov/Laws_R_D/FRNotices/FRInfColl.htm. We also will make copies of the comments 
available for public review, including names and addresses of 
respondents, during regular business hours at our offices in Lakewood, 
Colorado. Upon request, we will withhold an individual respondent's 
home address from the public record, as allowable by law. There also 
may be circumstances in which we would withhold a respondent's 
identity, as allowable by law. If you request that we withhold your 
name and/or address, state your request prominently at the beginning of 
your comment. However, we will not consider anonymous comments. We will 
make all submissions from organizations or businesses, and from 
individuals identifying themselves as representatives or officials of 
organizations or businesses, available for public inspection in their 
entirety.
    MMS Information Collection Clearance Officer: Arlene Bajusz (202) 
208-7744.

    Dated: August 29, 2005.
Lucy Querques Denett,
Associate Director for Minerals Revenue Management.
[FR Doc. 05-18161 Filed 9-13-05; 8:45 am]
BILLING CODE 4310-MR-P


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