Federal Register / Vol. 70, No. 205 / Tuesday, October 25, 2005 / Notices 61631 

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–

0087). 

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 title of this information collection 

request (ICR) is ‘‘30 CFR Part 227—

Delegation to States; 30 CFR Part 228—

Cooperative Activities with States and 

Indian Tribes; and 30 CFR Part 229—

Delegation to States.’’ We changed the 

title of this ICR to clarify the regulatory 

language we are covering under 30 CFR 

parts 227, 228, and 229 and to reflect 

OMB approval of consolidation of two 

ICRs, titled: 

• 1010–0087: 30 CFR Part 228—

Cooperative Activities with States and 

Indian Tribes; and 

• 1010–0088: 30 CFR Part 227—

Delegation to States. 

In the two ICRs, much of the general 

information was repeated and cross 

referenced. This consolidated ICR 1010–

0087 eliminates that duplication of 

effort and redundancy of data and, also, 

includes 30 CFR part 229 information 

collection burden hours, which were 

not included in the previous 

information collections (1010–0087 and 

1010–0088). 

DATES: Submit written comments on or 

before December 27, 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 mrm.comments@mms.gov. Include 

the title of the information collection 

and the OMB control number in the 

‘‘Attention’’ line of your comment. Also 

include your name and return address. 

Submit electronic comments as an 

ASCII file, avoiding the use of special 

characters and any form of encryption. 

If you do not receive a confirmation that 

we have received your e-mail, contact 

Ms. Gebhardt at (303) 231–3211. 

FOR FURTHER INFORMATION CONTACT: 

Sharron L. Gebhardt, telephone (303) 

231–3211, FAX (303) 231–3781, or email Sharron.Gebhardt@mms.gov. 

SUPPLEMENTARY INFORMATION: Title: 30 

CFR Part 227—Delegation to States; 30 

CFR Part 228—Cooperative Activities 

with States and Indian Tribes; and 30 

CFR Part 229—Delegation to States. 

OMB Control Number: 1010–0087. 

Bureau Form Number: None. 

Abstract: The Secretary of the U.S. 

Department of the Interior is responsible 

for collecting royalties from lessees who 

produce minerals from leased Federal 

and Indian lands. The Secretary is 

required by various laws to manage 

mineral resources production on 

Federal and Indian lands, collect the 

royalties due, and distribute the funds 

in accordance with those laws. 

The 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. 

Sections 202 and 205 of the Federal 

Oil and Gas Royalty Management Act of 

1982 (FOGRMA), as amended, 

authorized the Secretary to develop 

delegated and cooperative agreements 

with states and Indian tribes to carry out 

certain inspection, auditing, 

investigation, or limited enforcement 

activities for leases in their jurisdiction. 

The states and Indian tribes are working 

partners and are an integral part of the 

overall onshore and offshore 

compliance effort. 

Applicable Citations 

Applicable citations of the laws 

pertaining to this ICR include: 

(1) Public Law 97–451—Jan. 12, 1983, 

FOGRMA, Sections 202 and 205; and 

(2) Public Law 104–185, as corrected 

by Public Law 104–200, the Federal Oil 

and Gas Royalty Simplification and 

Fairness Act of 1996 (RSFA). 

Relevant parts of the Code of Federal 

Regulations (CFR) include 30 CFR parts 

227, 228, and 229, as described below: 

Title 30 CFR part 227, Delegation to 

States, provides procedures to delegate 

certain Federal royalty management 

functions to states for Federal oil and 

gas, geothermal, and solid mineral 

leases and leases subject to 8(g) of the 

Outer Continental Shelf Lands Act, 

within their state boundaries. 

Title 30 CFR part 228, Cooperative 

Activities with States and Tribes, 

provides procedures to utilize the 

capabilities of the Indian tribes to carry 

out audits and related investigations of 

their respective leased lands. 

Title 30 CFR part 229, Delegation to 

States, provides procedures to utilize 

the capabilities of the states to carry out 

audits and related investigations of 

leased Indian lands within their 

respective state boundaries, by 

permission of the respective Indian 

tribal councils or individual Indian 

mineral owners. 

Effective September 11, 1997, parts 

228 and 229 do not apply to Federal 

lands, due to implementation of RSFA 

amendments. 

Delegation to States, 30 CFR Part 227 

The states audit Federal lands under 

provisions of 30 CFR part 227. The 

Secretary is authorized under Section 

205 of FOGRMA, as amended by RSFA, 

to delegate to states, all or part of 

authorities and responsibilities of the 

Secretary, to conduct inspections, 

audits, investigations, and limited 

enforcement activities for leases in their 

jurisdiction. 

The RSFA amended FOGRMA 

Section 205 to include all of the 

following royalty management functions 

on Federal lands: 

a. Conducting audits and 

investigations; 

b. Receiving and processing 

production and royalty reports; 

c. Correcting erroneous report data; 

d. Performing automated verification; 

e. Issuing demands and subpoenas 

(except for solid mineral and geothermal 

leases); 

f. Issuing orders to perform 

restructured accounting; and 

g. Issuing related tolling agreements 

and notices to lessees or their designees. 

61632 Federal Register / Vol. 70, No. 205 / Tuesday, October 25, 2005 / Notices 

The states perform nearly all audits 

on Federal leases within their 

boundaries and typically receive 50 

percent of any additional collections; 

however, Alaska typically receives 90 

percent of onshore royalties. Many 

states gain efficiencies by performing 

audits on state severance taxes and 

concurrently on properties that have 

both Federal and state interests. Federal 

royalties are a significant portion of 

many states’ annual budgets. 

To be considered for delegation under 

30 CFR part 227, states must submit a 

written delegation proposal to, and 

receive approval from, the MMS 

Associate Director for Minerals Revenue 

Management (MRM). Delegation 

agreements benefit both MMS and states 

by helping to ensure correct and timely 

production reporting, proper product 

valuation, and accurate and timely 

royalty payment through the application 

of an aggressive and comprehensive 

audit program. 

Eleven states currently have MMSapproved delegation agreements to 

perform audits and investigations, 

which are the functions previously 

authorized under FOGRMA. The most 

recent delegated agreement was 

established in 2004 between MMS and 

the state of Alaska. Since the final 

rulemaking of Delegation of Royalty 

Management Functions to States on 

August 12, 1997 (62 FR 43076), effective 

September 11, 1997, one state has 

proposed a delegation agreement to 

assume the automated verification 

functions authorized by RSFA. 

When a state performs any of the 

delegated functions under 30 CFR part 

227, the state also assumes the burden 

of providing various types of 

information to MMS. Under RSFA, and 

to properly administer the delegation of 

the functions to the requesting states, 

MRM must collect pertinent information 

from industry and states to ensure that 

this program continues to operate 

efficiently and effectively. 

Companies send all royalty reports 

and payments (ICR 1010–0140, expires 

October 31, 2006) and production 

reports (ICR 1010–0139, expires August 

31, 2006) to MRM. The MRM verifies 

the accuracy of the reports and 

payments prior to disbursing the funds 

to states, Indian tribes, individual 

Indian mineral owners, the U.S. 

Treasury, and other Federal agencies. If 

states choose to participate in the 

delegable function of receiving and 

processing financial and production 

reports, payors/reporters must send 

these reports to each participating state 

for the Federal leases within that state 

and to MRM for the remaining Federal 

leases. The states must verify the 

accuracy of these reports. 

The MRM currently handles 

production and royalty reporting, error 

correction, automated verification, 

issuing demand letters, and billing 

actions. Although one state has 

requested the automated verification 

functions, if another state does in the 

future, payors/reporters may have to 

work with and provide data to various 

contacts in the participating state(s) and 

in MRM. At this time, MRM has not 

approved the state for said functions. 

In addition, MRM is held accountable 

to certain measurements and standards 

and must file reports to outside entities. 

States choosing to participate in any 

delegable function will be held to these 

same measurements and standards and, 

therefore, will have to provide data to 

document the work they are performing. 

This information, provided to MMS in 

the course of performing delegated 

agreements, is the focus of this 

information collection. States must 

comply with Generally Accepted 

Accounting Principles (GAAP) and 

MMS standards, as required under 30 

CFR 227.200, and with the MMS Audit 

Procedures Manual and Generally 

Accepted Government Auditing 

Standards (GAGAS), as required under 

30 CFR 227.301. 

Cooperative Activities With State and 

Indian Tribes, 30 CFR Part 228 

Effective September 11, 1997, part 228 

does not apply to Federal lands. 

The Secretary is authorized under 

FOGRMA Section 202, Cooperative 

Agreements, as amended by RSFA 

Section 8, to enter into cooperative 

agreements with any state or Indian 

tribe upon their written request; to share 

oil or gas royalty management 

information; and to use the capabilities 

of states and Indian tribes to carry out 

inspection, royalty audit, and related 

investigation. 

At this time, no state has proposed to 

enter into a cooperative agreement or to 

undertake activities on Indian lands 

within the state. 

Cooperative activities benefit both 

MMS and Indian tribes by helping to 

ensure accurate and timely production 

reporting, proper product valuation, and 

accurate and timely royalty payment 

through the application of an aggressive 

and comprehensive audit program. 

Indian tribes currently manage audits 

for 88 percent of all tribal mineral 

royalties. Major focuses in FY 2007 

provide for additional funding for a new 

tribal cooperative agreement with the 

Hopi Tribe and additional full-time 

MMS employees to provide increased 

oversight of Indian tribal audits due to 

a recent court decision. 

To be considered for a cooperative 

audit agreement, Indian tribes must 

comply with the regulations at 30 CFR 

part 228. Indian tribes who want to do 

royalty audits in cooperation with MMS 

must submit a written proposal to enter 

into a cooperative agreement, signed by 

the tribal chairman or other appropriate 

official, to the MMS Director. The 

request should outline the activities to 

be undertaken and present evidence that 

the Indian tribe(s) can meet the 

standards established by the Secretary 

for the activities to be conducted. Prior 

to beginning work, approval must be 

obtained from the MMS Director. 

Currently, there are no states with 

cooperative agreements. However, eight 

Indian tribes currently have cooperative 

agreements to perform audits and 

investigations. When an Indian tribe 

performs any of the cooperative 

activities under 30 CFR part 228, the 

Indian tribe also assumes the burden of 

providing various types of information 

to MMS. This information, provided to 

MMS in the course of performing 

cooperative agreements, is the focus of 

this information collection. After the 

request is accepted and a cooperative 

agreement is in effect, Indian tribes 

must submit an annual workplan and 

budget, as well as quarterly 

reimbursement vouchers. They must 

follow GAAP and MMS standards as 

required under 30 CFR 228.102. The 

cooperative agreements also require 

them to comply with the MMS Audit 

Procedures Manual and GAGAS. 

Delegation to States, 30 CFR Part 229 

Effective September 11, 1997, part 229 

does not apply to Federal lands. 

Under the Secretary’s delegation of 

authority at this part, a state may 

conduct audits and related 

investigations of oil and gas payments 

made to MMS regarding leased Indian 

lands within the state’s boundaries. A 

state must receive written permission 

from the respective Indian tribe(s) or 

individual Indian mineral owner(s). 

After receiving written permission, 

the governor or other authorized official 

of a state may petition the Secretary to 

assume responsibilities of conducting 

audits and related investigation of 

Indian oil and gas leases. A state 

petitioning for a delegation of authority 

will have the opportunity to present 

testimony at a public hearing within the 

state. 

After the state receives approval of the 

Secretary’s delegation of authority, it 

must submit annual audit work plans 

detailing its audits and related 

investigations, annual budgets, and 

Federal Register / Vol. 70, No. 205 / Tuesday, October 25, 2005 / Notices 61633 

quarterly reimbursement vouchers. The 

state shall maintain books and records 

and provide a quarterly summary of 

costs following Department standards, 

as required under 30 CFR 229.109. 

Title 30 CFR 229.101(b), covering the 

Federal Government’s administration of 

delegations, states: 

(b) A State may enter into a delegation 

of authority under this part without 

affecting a State’s ability to enter into a 

cooperative agreement under Part 228 of 

this chapter. 

At this time no state has proposed to 

undertake delegated functions on Indian 

lands within its boundaries. 

Summary 

Proprietary information submitted to 

MMS under this collection is protected. 

No items of a sensitive nature are 

collected. The opportunity to engage in 

these programs is voluntary; however, if 

MMS approval for the cooperative 

agreement or delegation is obtained, the 

requirement to respond is mandatory. 

Frequency of Response: Varies based 

on the function performed. 

Estimated Number and Description of 

Respondents: 11 states and 8 Indian 

tribes. 

Estimated Annual Reporting and 

Recordkeeping ‘‘Hour’’ Burden: 6,309 

hours. 

We are revising this ICR to include 

reporting requirements, part 229 

citations, that were overlooked in the 

previous renewal, and we have adjusted 

the burden hours accordingly. 

The MMS estimates 767 responses 

each year from the 11 states and 8 

Indian tribes. We estimate the total 

annual burden is 6,309 (4,309 for states 

and 2,000 for Indian tribes) reporting 

and recordkeeping hours. Due to the 

complexity of the chart below, we are 

detailing the number of burden hours 

for the states and Indian tribes. 

• States: We estimate 701 responses 

(685 from 30 CFR part 227 and 16 from 

30 CFR part 229) from 11 states. We 

estimate the total annual burden for 

these responses is 4,309 reporting and 

recordkeeping hours (4,293 from 30 CFR 

part 227 and 16 from 30 CFR part 229) 

due to historical information. 

• Indian tribes: We estimate 66 

responses (from 30 CFR part 228) from 

8 Indian tribes. We estimate the total 

annual burden for these responses is 

2,000 reporting and recordkeeping 

hours due to historical information. 

We have not included in our 

estimates certain requirements 

performed in the normal course of 

business and considered usual and 

customary. The following chart shows 

the estimated burden hours by CFR 

section and paragraph. 

RESPONDENT’S ESTIMATED ANNUAL BURDEN HOURS

30 CFR Section Reporting and recordkeeping requirements Hour burden per 

response 

Number of annual responses Annual burden 

hours 

Part 227—Delegation to States 

Delegation Proposals 

227.103 .................... What must a State’s delegation proposal contain? ..................

If you want MMS to delegate royalty management functions 

to you, then you must submit a delegation proposal to the 

MMS Associate Director for Minerals Revenue Management. MMS will provide you with technical assistance and 

information to help you prepare your delegation proposal 

* * * 

200 1 200 

Delegation Process 

227.107 .................... When will the MMS Director decide whether to approve a 

State’s delegation proposal?.

The MMS Director will decide whether to approve your delegation proposal within 90 days after your delegation proposal is considered complete under § 227.104. MMS may 

extend the 90-day period with your written consent. 

Hour burden covered under § 227.103. 

227.109 .................... What if the MMS Director denies a State’s delegation proposal?.

If the MMS Director denies your delegation proposal, MMS 

will state the reasons for denial. MMS also will inform you 

in writing of the conditions you must meet to receive approval. You may submit a new delegation proposal at any 

time following a denial. 

Hour burden covered under § 227.103. 

227.110(a) ................ When and for how long are delegation agreements effective? 

(a) Delegation agreements are effective for 3 years from the 

date the MMS Director signs the delegation agreement. 

However, during the development of the State’s delegation 

proposal under § 227.108 of this part, MMS, the delegated 

State, and any other affected person will determine an appropriate transition period for lessees and their designees 

to modify their systems to comply with any new requirements under a delegation agreement * * * 

Hour burden covered under § 227.103. 

61634 Federal Register / Vol. 70, No. 205 / Tuesday, October 25, 2005 / Notices 

RESPONDENT’S ESTIMATED ANNUAL BURDEN HOURS—Continued 

30 CFR Section Reporting and recordkeeping requirements Hour burden per 

response 

Number of annual responses Annual burden 

hours 

227.110(b) and (b)(1) (b) You may ask MMS to renew the delegation for an additional 3 years no less than 6 months before your 3-year 

delegation agreement expires. You must submit your renewal request to the MMS Associate Director for Minerals 

Revenue Management as follows: (1) If you do not want to 

change the terms of your delegation agreement for the renewal period, you need only ask to extend your existing 

agreement for the 3-year renewal period * * * 

Hour burden covered under § 227.103. 

227.110(b)(2) ........... (b)(2) If you want to change the terms of your delegation 

agreement for the renewal period, you must submit a new 

delegation proposal under this part. 

15 11 165 

227.110(c) ................ (c) The MMS Director may approve your renewal request 

only if MMS determines that you are meeting the requirements of the applicable standards and regulations. If the 

MMS Director denies your renewal request, MMS will state 

the reasons for denial. MMS also will inform you in writing 

of the conditions you must meet to receive approval. You 

may submit a new renewal request any time after denial. 

Hour burden covered under § 227.103. 

227.110(d) ................ (d) After the 3-year renewal period for your delegation agreement ends, if you wish to continue performing one or more 

delegated functions, you must request a new delegation 

agreement from MMS under this part. MMS will schedule a 

hearing on your request, if MMS determines a hearing is 

appropriate * * *.

Hour burden covered under § 227.103. 

227.110(e) ................ (e) If you do not request a hearing under paragraphs (b)(1) or 

(d) of this section, any other affected person may submit a 

written request for a hearing under those paragraphs to the 

MMS Associate Director for Minerals Revenue Management.

Hour burden covered under § 227.103. 

Existing Delegations 

227.111(a) and (b) ... Do existing delegation agreements remain in effect? ..............

This section explains your options if you have a delegation 

agreement in effect on the effective date of this regulation.

(a) * * * Before the agreement expires, if you wish to continue to perform one or more of the delegated functions 

you performed under the expired agreement, you must request a new delegation agreement meeting the requirements of this part and the applicable standards.

(b) If you want to perform royalty management functions in 

addition to those authorized under your existing agreement, 

you must request a new delegation agreement.

Hour burden covered under § 227.103. 

Compensation 

227.112(d) ................ What compensation will a State receive to perform delegated 

functions?.

You will receive compensation for your costs to perform each 

delegated function subject to the following conditions * * * 

(d) At a minimum, you must provide vouchers detailing your 

expenditures quarterly during the fiscal year. However, you 

may agree to provide vouchers on a monthly basis in your 

delegation agreement; 

4 84 

(NOTE: 5 states 

× 12 montly 

responses = 60 

and 6 states × 4 

quarterly 

responses = 24) 

336 

227.112(e) ................ (e) You must maintain adequate books and records to support your vouchers * * *.Hour burden covered under § 227.200(d). 

Federal Register / Vol. 70, No. 205 / Tuesday, October 25, 2005 / Notices 61635 

RESPONDENT’S ESTIMATED ANNUAL BURDEN HOURS—Continued 

30 CFR Section Reporting and recordkeeping requirements Hour burden per 

response 

Number of annual responses Annual burden 

hours 

States’ Responsibilities To Perform Delegated Functions 

227.200(a)(b), (c), 

and (d).

What are a State’s general responsibilities if it accepts a delegation?.

For each delegated function you perform, you must: (a) * * * 

seek information or guidance from MMS regarding new, 

complex, or unique issues.* * * 

(b)(1) * * * Provide complete disclose of financial results of 

activities;.

(2) Maintain correct and accurate records of all mineral-related transactions and accounts;.

(3) Maintain effective controls and accountability; ....................

(4) Maintain a system of accounts * * * ..................................

(5) Maintain adequate royalty and production information 

* * *.

(c) Assist MMS in meeting the requirements of the Government Performance and Results Act (GPRA) * * *.

(d) Maintain all records you obtain or create under your delegated function, such as royalty reports, production reports, 

and other related information. * * * You must maintain 

such records for at least 7 years. * * * 

200 11 2,200 

227.200(e) and (h) ... What are a State’s general responsibilities if it accepts a delegation?.

* * * (e) Provide reports to MMS about your activities under 

your delegated functions * * * At a minimum, you must 

provide periodic statistical reports to MMS summarizing the 

activities you carried out * * * 

(h) Help MMS respond to requests for information from other 

Federal agencies, Congress, and the public * * * 

3 44 132 

227.200(f) ................. What are a State’s general responsibilities if it accepts a delegation?.

* * * (f) Assist MMS in maintaining adequate reference, royalty, and production databases * * *.

1 250 250 

227.200(g) and 

227.301(e).

§ 227.200 What are a State’s general responsibilities if it accepts a delegation? * * *.

(g) Develop annual work plans * * * ........................................

§ 227.301 What are a State’s responsibilities if it performs audits?.

If you perform audits you must * * * ........................................

(e) Prepare and submit MMS Audit Work Plans * * * .............

60 11 660 

227.400(a)(4) and 

(a)(6).

What functions may a State perform in processing production 

reports or royalty reports?.

Production reporters or royalty reporters provide production, 

sales, and royalty information on mineral production from 

leases that must be collected, analyzed, and corrected.

(a) If you request delegation of either production report or 

royalty report processing functions, you must perform * * *.

(4) Timely transmitting production report or royalty report data 

to MMS and other affected Federal agencies * * *.

(6) Providing production data or royalty data to MMS and 

other affected Federal agencies * * *.

1 250 250 

227.400(c) ................ What functions may a State perform in processing production 

reports or royalty reports?.

(c) You must provide MMS with a copy of any exceptions 

from reporting and payment requirements for marginal 

properties and any alternative royalty and payment requirements for unit agreements and communitization agreements you approve.

1 12 12 

227.401(d) ................ What are a State’s responsibilities if it processes production 

reports or royalty reports?.

In processing production reports or royalty reports you must 

* * *.

(d) Timely transmit required production or royalty data to 

MMS and other affected Federal agencies * * * 

Hour burden covered under § 227.400(a)(4) and (a)(6). 

61636 Federal Register / Vol. 70, No. 205 / Tuesday, October 25, 2005 / Notices 

RESPONDENT’S ESTIMATED ANNUAL BURDEN HOURS—Continued 

30 CFR Section Reporting and recordkeeping requirements Hour burden per 

response 

Number of annual responses Annual burden 

hours 

227.401(e) ................ What are a State’s responsibilities if it processes production 

reports or royalty reports?.

In processing production reports or royalty reports you must 

* * *.

(e) Access well, lease, agreement, and reporter reference 

data from MMS, and provide updated information to MMS 

* * *.

Hour burden covered under § 227.200(f). 

227.501(c) ................ What are a State’s responsibilities to ensure that reporters 

correct erroneous data?.

(c) Submit accepted and corrected lines to MMS to allow 

processing in a timely manner * * *.

Hour burden covered under § 227.400(a)(4) and (a)(6). 

227.601(c) ................ What are a State’s responsibilities if it performs automated 

verification?.

To perform automated verification of production reports or 

royalty reports, you must * * *.

(c) Maintain all documentation and logging procedures * * *

8 11 88 

227.601(d) ................ What are a State’s responsibilities if it performs automated 

verification?.

To perform automated verification of production reports or 

royalty reports, you must * * *.

(d) Access well, lease, agreement, and production reporter or 

royalty reporter reference date from MMS and provide updated information to MMS * * *.

Hour burden covered under § 227.200(f). 

Performance Review 

227.801(a) ................ What if a State does not adequately perform a delegated 

function?.

If your performance of the delegated function does not comply with your delegation agreement * * *.

(a) * * * You may ask MMS for an extension of time to comply with the notice. In your extension request you must explain why you need more time * * *.

Hour burden covered under § 227.200(e). 

227.804 .................... How else may a State’s delegation agreement terminate? ......

You may request MMS to terminate your delegation at any 

time by submitting your written notice of intent 6 months 

prior to the date on which you want to terminate. * * * 

Hour burden covered under § 227.200(e). 

227.805 .................... How may a State obtain a new delegation agreement after 

termination?.

After your delegation agreement is terminated, you may apply 

again for delegation by beginning with the proposal process 

* * * 

Hour burden covered under § 227.103 

Subtotal Burden for 30 CFR part 227 685 4,293 

Part 228—Cooperative Activities With States and Indian Tribes 

Subpart C—Oil and Gas, Onshore 

228.100(a) and (b) ... Entering into an agreement ......................................................

(a) * * * Indian tribe may request the Department to enter 

into a cooperative agreement by sending a letter from * * * 

tribal chairman * * * to the Director of MMS.

(b) The request for an agreement shall be in a format prescribed by MMS and should include at a minimum the following information: 

(1) Type of eligible activities to be undertaken. 

(2) Proposed term of the agreement. 

(3) Evidence that * * * Indian tribe meets, or can meet by the 

time the agreement is in effect * * * 

(4) If the State is proposing to undertake activities on Indian 

lands located within the State, a resolution from the appropriate tribal council indicating their agreement to delegate 

to the State responsibilities under the terms of the cooperative agreement for activities to be conducted on tribal or allotted land.

200 1 200 

228.101(a) ................ Terms of agreement ..................................................................

(a) Agreements entered into under this part shall be valid for 

a period of 3 years and shall be renewable * * * upon request of * * * Indian tribe * * * 

15 8 120 

Federal Register / Vol. 70, No. 205 / Tuesday, October 25, 2005 / Notices 61637 

RESPONDENT’S ESTIMATED ANNUAL BURDEN HOURS—Continued 

30 CFR Section Reporting and recordkeeping requirements Hour burden per 

response 

Number of annual responses Annual burden 

hours 

228.101(c) ................ (c) * * * Indian tribe may unilaterally terminate an agreement 

by giving a 120-day written notice of intent to terminate.

Hour burden covered under § 228.100(a). 

228.101(d) ................ Terms of Agreement .................................................................

(d) * * * Indian tribe will be given 60 days to respond to the 

notice of deficiencies and to provide a plan for correction of 

those deficiencies * * *.

80 1 80 

228.103(a) and (b) ... Maintenance of records ............................................................

(a) * * * Indian tribe entering into a cooperative agreement 

under this part must retain all records, reports, working papers, and any backup materials * * * 

(b) * * * Indian tribe shall maintain all books and records 

* * *.

120 8 960 

228.105(a)(1) and 

(a)(2).

Funding of cooperative agreements .........................................

(a)(1) The Department may, under the terms of the cooperative agreement, reimburse * * * Indian tribe up to 100 percent of the costs of eligible activities. Eligible activities will 

be agreed upon annually upon the submission and approval of a work plan and funding requirement.

(2) A cooperative agreement may be entered into with * * * 

Indian tribe, upon request, without a requirement for reimbursement of costs by the Department.

60 8 480 

228.105(c) ................ Funding of cooperative agreements .........................................

(c) * * * Indian tribe shall submit a voucher for reimbursement of eligible costs incurred within 30 days of the end of 

each calendar quarter * * * Indian tribe must provide the 

Department a summary of costs incurred, for which * * * 

Indian tribe is seeking reimbursement, with the voucher.

4 40 

(NOTE: 1 tribe × 

12 monthly 

responses = 12 

and 7 tribes × 4 

quarterly 

responses = 28) 

160 

228.107(b) ................ Eligible cost of activities ............................................................

(b) * * * Each cooperative agreement shall contain detailed 

schedules identifying those activities and costs which qualify for funding and the procedures, timing, and mechanics 

for implementing Federal funding.

Hour burden covered under § 228.100(a) and (b). 

Subtotal Burden for 30 CFR part 228 66 2,000 

Part 229—Delegation to States 

Subpart C—Oil and Gas, Onshore 

Administration of Delegations 

229.100(a)(1) and 

(a)(2).

Authorities and responsibilities subject to delegation ...............

(a) All or part of the following authorities and responsibilities 

of the Secretary under the Act may be delegated to a State 

authority: 

(1) Conduct of audits related to oil and gas royalty payments 

made to the MMS which are attributable to leased * * * Indian lands within the State. Delegations with respect to any 

Indian lands require the written permission, subject to the 

review of the MMS, of the affected Indian tribe or allottee.

(2) Conduct of investigation related to oil and gas royalty payments made to the MMS which are attributable to * * * Indian lands within the State. Delegation with respect to any 

Indian lands require the written permission, subject to the 

review of the MMS, of the affected Indian tribe or allottee. 

No investigation will be initiated without the specific approval of the MMS * * *.

1 1 1 

61638 Federal Register / Vol. 70, No. 205 / Tuesday, October 25, 2005 / Notices 

RESPONDENT’S ESTIMATED ANNUAL BURDEN HOURS—Continued 

30 CFR Section Reporting and recordkeeping requirements Hour burden per 

response 

Number of annual responses Annual burden 

hours 

229.101(a) and (d) ... Petition for delegation ...............................................................

(a) The governor or other authorized official of any State 

which contains * * * Indian oil and gas leases where the 

Indian tribe and allottees have given the State an affirmative indication of their desire for the State to undertake certain royalty management-related activities on their lands, 

may petition the Secretary to assume responsibilities to 

conduct audits and related investigations of royalty related 

matters effecting * * * Indian oil and gas leases within the 

State * * * 

(d) In the event that the Secretary denies the petition, the 

Secretary must provide the State with the specific reasons 

for denial of the petition. The State will then have 60 days 

to either contest or correct specific deficiencies and to reapply or a delegation of authority.

1 1 1 

229.102(c) ................ Fact-finding and hearings .........................................................

(c) A State petitioning for a delegation of authority shall be 

given the opportunity to present testimony at a public hearing.

1 1 1 

229.103(c) ................ Duration of delegations; termination of delegations .................

(c) A State may terminate a delegation of authority by giving 

a 120-day written notice of intent to terminate.

1 1 1 

229.105 .................... Evidence of Indian agreement to delegation ............................

In the case of a State seeking a delegation of authority for Indian lands * * * the State petition to the Secretary must be 

supported by an appropriate resolution or resolutions or 

tribal councils joining the State in petitioning for delegation 

and evidence of the agreement of individual Indian allottees 

whose lands would be involved in a delegation. Such evidence shall specifically speak to having the State assume 

delegated responsibility for specific functions related to royalty management activities.

1 1 1 

229.106 .................... Withdrawal of Indian lands from delegated authority ...............

If at any time an Indian tribe or an individual Indian allottee 

determines that it wishes to withdraw from the State delegation of authority in relation to its lands, it may do so by 

sending a petition of withdrawal to the State * * * 

1 1 1 

229.109(a) ................ Reimbursement for costs incurred by a State under the delegation of authority..

(a) The Department of the Interior (DOI) shall reimburse the 

State for 100 percent of the direct cost associated with the 

activities undertaken under the delegation of authority. The 

State shall maintain books and records in accordance with 

the standards established by the DOI and will provide the 

DOI, on a quarterly basis, a summary of costs incurred 

* * * 

1 1 1 

229.109(b) ................ Reimbursement for costs incurred by a State under the delegation of authority.

(b) The State shall submit a voucher for reimbursement of 

costs incurred within 30 days of the end of each calendar 

quarter.

1 1 1 

229.120 .................... Obtaining regulatory and policy guidance ................................

All activities performed by a State under a delegation must be 

in full accord with all Federal laws, rules and regulations, 

and Secretarial and agency determinations and orders relating to the calculation, reporting, and payment of oil and 

gas royalties. In those cases when guidance or interpretations are necessary, the State will direct written requests 

for such guidance or interpretation to the appropriate MMS 

officials * * * 

1 1 1 

Federal Register / Vol. 70, No. 205 / Tuesday, October 25, 2005 / Notices 61639 

RESPONDENT’S ESTIMATED ANNUAL BURDEN HOURS—Continued 

30 CFR Section Reporting and recordkeeping requirements Hour burden per 

response 

Number of annual responses Annual burden 

hours 

229.121(a), (b), (c), 

and (d).

Recordkeeping requirements ....................................................

(a) The State shall maintain in a safe and secure manner all 

records, workpapers, reports, and correspondence gained 

or developed as a consequence of audit or investigative 

activities conducted under the delegation * * * 

(b) The State must maintain in a confidential manner all data 

obtained from DOI sources or from payor or company 

sources under the delegation * * * 

(c) All records subject to the requirements of paragraph (a) 

must be maintained for a 6-year period measured from the 

end of the calendar year in which the records were created 

* * * Upon termination of a delegation, the State shall, 

within 90 days from the date of termination, assemble all 

records specified in subsection (a), complete all working 

paper files in accordance with § 229.124, and transfer such 

records to the MMS.

(d) The State shall maintain complete cost records for the 

delegation in accordance with generally accepted accounting principles * * * 

1 1 1 

229.122(a), (b), and 

(c).

Coordination of audit activities ..................................................

(a) Each State with a delegation of authority shall submit annually to the MMS an audit workplan specifically identifying 

leases, resources, companies, and payors scheduled for 

audit * * * A State may request changes to its workplan 

* * * at the end of each quarter of each fiscal year. All requested changes are subject to approval by the MMS and 

must be submitted in writing.

(b) When a State plans to audit leases of a lessee or royalty 

payor for which there is an MMS or OIG resident audit 

team, all audit activities must be coordinated through the 

MMS or OIG resident supervisor * * * 

(c) The State shall consult with the MMS and/or OIG regarding resolution of any coordination problems encountered 

during the conduct of delegation activities.

1 1 1 

229.123(b)(3)(i) ........ Standards for audit activities .....................................................

(b) * * * (3) Standards of reporting. (i) Written audit reports 

are to be submitted to the appropriate MMS officials at the 

end of each field examination.

1 1 1 

229.124 .................... Documentation standards .........................................................

Every audit performed by a State under a delegation of authority must meet certain documentation standards. In particular, detailed workpapers must be developed and maintained.

1 1 1 

229.125(a) and (b) ... Preparation and issuance of enforcement documents .............

(a) Determinations of additional royalties due resulting from 

audit activities conducted under a delegation of authority 

must be formally communicated by the State, to the companies or other payors by an issue letter prior to any enforcement action * * * 

(b) After evaluating the company or payor’s response to the 

issue letter, the State shall draft a demand letter which will 

be submitted with supporting workpaper files to the MMS 

for appropriate enforcement action. Any substantive revisions to the demand letter will be discussed with the State 

prior to issuance of the letter * * * 

1 1 1 

229.126(a) and (b) ... Appeals .....................................................................................

(a) * * * The State regulatory authority shall, upon the request of the MMS, provide competent and knowledgeable 

staff for testimony, as well as any required documentation 

and analyses, in support of the lessor’s position during the 

appeal process.

(b) An affected State, upon the request of the MMS, shall 

provide expert witnesses from their audit staff for testimony 

as well as required documentation and analyses to support 

the Department’s position during the litigation of court 

cases arising from denied appeals * * * 

1 1 1 

61640 Federal Register / Vol. 70, No. 205 / Tuesday, October 25, 2005 / Notices 

RESPONDENT’S ESTIMATED ANNUAL BURDEN HOURS—Continued 

30 CFR Section Reporting and recordkeeping requirements Hour burden per 

response 

Number of annual responses Annual burden 

hours 

229.127 .................... Reports from States ..................................................................

The State, acting under the authority of the Secretarial delegation, shall submit quarterly reports which will summarize 

activities carried out by the State during the preceding 

quarter of the year under the provisions of the delegation 

* * * 

1 1 1 

Subtotal Burden for 30 CFR part 229 16 16 

TOTAL BURDEN 767 6,309 

Estimated Annual Reporting and 

Recordkeeping ‘‘Non-hour Cost’’

Burden: We have identified the ‘‘nonhour cost’’ burden at $20,000 as annual 

start-up costs. 

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. 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: October 13, 2005. 

Lucy Querques Denett, 

Associate Director for Minerals Revenue 

Management. 

[FR Doc. 05–21283 Filed 10–24–05; 8:45 am] 

BILLING CODE 4310–MR–P 

DEPARTMENT OF THE INTERIOR 

National Park Service 

Cape Cod National Seashore; Two 

Hundred Fifty-Fifth Notice of Meeting; 

Correction 

AGENCY: National Park Service, Interior. 

ACTION: Notice; correction. 

SUMMARY: The National Park Service 

published a document in the Federal 

Register of October 5, 2005 concerning 

the Two Hundred Fifty-Fifth Notice of 

Meeting of the Cape Cod National 

Seashore Advisory Commission. The 

document contained an incorrect date. 

FOR FURTHER INFORMATION CONTACT: 

George E. Price, Jr., 508–349–3785 x 

202. 

Correction 

In the Federal Register of October 5, 

2005, in FR Doc. 05–19961, on page 

58239, in the second paragraph, correct 

the paragraph to read: 

Notice is hereby given in accordance 

with the Federal Advisory Committee 

Act (Pub. L. 92–463, 86 Stat. 770, 5 

U.S.C. App 1, Section 10), that a 

meeting of the Cape Cod National 

Seashore Advisory Commission will be 

held on December 12, 2005. 

Dated: October 17, 2005. 

George E. Price, Jr., 

Superintendent. 

[FR Doc. 05–21224 Filed 10–24–05; 8:45 am] 

BILLING CODE 4312–51–P