27280 Federal Register / Vol. 61, No. 106 / Friday, May 31, 1996 / Rules and Regulations

(6) Production report. Deep-water

royalty relief and NRS production

expansion proposal applications must

contain this report, which must include

all of the items listed below.

(i) Production profile. Submit actual

and projected (BOE) production by year

for each of the following products: oil,

condensate, gas, and associated gas.

(ii) Uncertainty (deep-water royalty

relief only). Submit three production

profiles as described in paragraph

(a)(6)(i) of this section. Each one must

be consistent with a specific point on

the aggregated reserve/resource

distribution and must represent a

conservative, most likely, and an

optimistic case.

(iii) Production drive mechanisms for

each reservoir.

(iv) Quality adjustments to prices for

gravity, sulfur, etc.

(7) Engineering report.

Deep-water royalty relief and NRS

production expansion proposal

applications must contain this report.

However, NRS expanded production

applications should submit this

information only as it relates to the

planned development. This report must

include all of the items listed below.

(i) Development concept:

(A) Tension leg platform, fixed, floater

type, subsea tieback, etc.; and

(B) Construction schedule.

(ii) Planned wells:

(A) Number of wells planned;

(B) Type of well (platform, subsea,

vertical, deviated, horizontal);

(C) Well depth;

(D) Drilling schedule;

(E) Completion description (single,

dual, horizontal, etc.); and

(F) Completion schedule.

(iii) Production system equipment:

(A) Production capacity for oil and

gas and a description of its limiting

component(s);

(B) Unusual problems (low gravity,

high sulfur content, etc.);

(C) Subsea structures;

(D) Flowlines; and

(E) Production system installation

schedule.

(iv) Multi-phase development plans;

(A) Conceptual basis for developing in

phases and goals/milestones required

for commencing subsequent phases; and

(B) Justification for the exclusion of

reservoirs not contemplated for

development.

(v) Uncertainty. Submit schedules for

development consistent with each of the

three field production profiles

(conservative, most likely, optimistic)

provided in the production report.

(b) Ineligible costs. MMS will not

include certain costs in making its

royalty relief determinations. These

include, but are not limited to:

(1) Costs incurred before first

discovery on the field;

(2) Cash bonuses;

(3) Royalty relief application fees;

(4) Lease rentals, royalties, and net

profit share and net revenue share

payments;

(5) Legal expenses;

(6) Damages and losses;

(7) Taxes;

(8) Interest or finance charges;

(9) Fines or penalties;

(10) Designated well costs, including

prospective exploration and delineation

costs; and

(11) Costs associated with prior

existing obligations (e.g., royalty

overrides or other forms of payment for

acquiring a financial position in a lease,

expenditures for plugging wells and

removal and abandonment of facilities

existing on the date of the application).

(c) The applicant or the applicant’s

authorized representative must certify

that all information submitted in an

application or a pre-production report is

accurate and complete. The application

or pre-production report must be

accompanied by a report prepared by an

independent certified public accountant

(CPA) expressing an unqualified

opinion on the accuracy of the actual

historical financial information

presented in the application or preproduction report and that the

presentation of data and information

conforms to the MMS guidelines. The

applicant will make the independent

CPA available to the MMS to respond to

questions which may arise regarding the

evaluation of the historical information.

This requirement does not limit the

MMS’s ability to conduct further review

of the applicant’s records to support the

historical financial information

included in the application.

§ 203.56 Recovery of application

processing costs.

When you submit an application for

royalty relief, you must include a

payment to reimburse MMS for the costs

it incurs in processing your application.

The MMS will establish in a Notice to

Lessees a schedule that will specify the

fees that must be paid for each of the

different types of royalty relief

applications. Regional Directors will

periodically update the fee schedule to

reflect changes in MMS costs as well as

to provide other information necessary

for the administration of our royalty

relief program.

[FR Doc. 96–13626 Filed 5–30–96; 8:45 am]

BILLING CODE 4310–MR–P

DEPARTMENT OF THE TREASURY

Secret Service

31 CFR Part 411

[1505–AA69]

Color Illustrations of U.S. Currency

AGENCY: Secret Service, Treasury.

ACTION: Final rule.

SUMMARY: Pursuant to the Counterfeit

Deterrence Act of 1992, the Secret

Service permits color illustrations of

United States currency provided such

illustrations are consistent with the

requirements set out in this final rule.

Prior to the issuance of this rule, color

illustrations of U.S. currency were not

permitted.

EFFECTIVE DATE: May 31, 1996.

FOR FURTHER INFORMATION CONTACT:

Mark Mulligan, Attorney/Advisor,

Office of Chief Counsel, U.S. Secret

Service, 1800 G Street, N.W., Room 842,

Washington, D.C. 20223, (202) 435–

5771.

SUPPLEMENTARY INFORMATION: On June

26, 1995 (60 FR 32929), the Secret

Service proposed to amend title 31,

chapter IV of the Code of Federal

Regulations by adding part 411 which

would permit color illustrations of U.S.

currency. At the time this proposal was

issued, illustrations of U.S. currency

were only permitted provided the

illustration was in black and white and

was of a size less than three-fourths or

more than one and one-half, in linear

dimension, of each part so illustrated,

and provided the negatives and plates

used in making the illustration were

destroyed after their final use. 18 U.S.C.

504. Color illustrations of U.S. currency

were not permitted.

Interested parties were invited to

participate in the rulemaking

proceeding by submitting written

comments on the proposal. Five

comments were received. The Secret

Service carefully reviewed and

evaluated these comments. In

considering these comments, the Secret

Service carefully weighed the

recommendations and comments with

the federal government’s compelling

interest of preventing the counterfeiting

of U.S. currency.

Specifically, all the commentators to

some extent questioned the need for and

practicality of the requirement that the

term ‘‘non-negotiable’’ be prominently

and conspicuously placed across the

center portion of any color illustration.

After careful consideration, the Secret

Service has decided to amend its

proposal by removing the requirement
Federal Register / Vol. 61, No. 106 / Friday, May 31, 1996 / Rules and Regulations 27281

that the term ‘‘non-negotiable’’ be

placed on any color illustration.

One comment addressed the

requirement that ‘‘all negatives, plates,

positives, digitized storage medium,

graphic files, magnetic medium, optical

storage devices, and any other thing

used in the making of the illustration

that contain an image of the illustration

or any part thereof shall be destroyed

and/or deleted or erased immediately

after their final use in accordance with

this section.’’ Proposed 31 CFR

411.1(a)(4). Specifically, this comment

questioned the need for the immediate

destruction of such items. After careful

consideration of this comment and in

order to be consistent with 18 U.S.C.

504, the Secret Service has decided to

remove the word ‘‘immediately’’ from

the final rule. Therefore, both the final

rule and 18 U.S.C. 504 require that such

items be destroyed after their ‘‘final

use’’ in accordance with each respective

provision.

Another comment suggested that the

proposed rule should be expanded by

identifying certain kinds of illustrations

that could be considered not to give rise

to an inference of an intent to defraud.

The Secret Service disagrees. It is the

Secret Service’s position that a single

rule applicable to all color illustrations

be implemented for the sake of

simplicity and consistency. Such a rule

will be more easily understood by the

public than a rule which contains

exceptions for various types of

illustrations. Further, not all of the

statutory sections concerning the

reproduction of U.S. currency require

that an intent to defraud be established

in order for a violation of law to occur.

See, e.g., 18 U.S.C. 474.

The final rule requires the color

illustrations to comply with the current

size restrictions set out in 18 U.S.C. 504.

In addition, such color illustrations

must be one-sided.

The exceptions established by this

rule, like the exceptions set out in 18

U.S.C. 504, apply notwithstanding any

other provision of chapter 25 of Title 18

of the U.S. Code. However, the criminal

liability imposed by 18 U.S.C. 474 and

other applicable sections of chapter 25

of Title 18 of the U.S. Code could apply

where a color illustration of U.S.

currency fails to meet the requirements

imposed by this regulation.

It has been determined that this

document is not a significant regulatory

action under Executive Order 12866.

This rule permits the color illustrations

of U.S. currency, which heretofore were

prohibited by law. Further, pursuant to

section 605(b) of the Regulatory

Flexibility Act and for the reasons set

forth above, it is hereby certified that

this regulation will not have a

significant economic impact on a

substantial number of small entities.

Pursuant to 5 U.S.C. 553, it is also

found and determined that good cause

exists for not postponing the effective

date of this rule 30 days after

publication in the Federal Register

because this rule permits a practice

heretofore prohibited by statute.

List of Subjects in 31 CFR Part 411

Counterfeiting, Currency.

In consideration of the foregoing, the

Secret Service amends title 31, chapter

IV of the Code of Federal Regulations by

adding part 411 as set forth below.

PART 411—COLOR ILLUSTRATIONS

OF UNITED STATES CURRENCY

Authority: 18 U.S.C. 504; Treasury

Directive Number 15–56, 58 FR 48539

(September 16, 1993)

§ 411.1 Color illustrations authorized.

(a) Notwithstanding any provision of

chapter 25 of Title 18 of the U.S. Code,

authority is hereby given for the

printing, publishing or importation, or

the making or importation of the

necessary plates or items for such

printing or publishing, of color

illustrations of U.S. currency provided

that:

(1) The illustration be of a size less

than three-fourths or more than one and

one-half, in linear dimension, of each

part of any matter so illustrated;

(2) The illustration be one-sided; and

(3) All negatives, plates, positives,

digitized storage medium, graphic files,

magnetic medium, optical storage

devices, and any other thing used in the

making of the illustration that contain

an image of the illustration or any part

thereof shall be destroyed and/or

deleted or erased after their final use in

accordance with this section.

(b) [Reserved].

Paul A. Hackenberry,

Assistant Director, Office of Investigations.

[FR Doc. 96–13693 Filed 5–30–96; 8:45 am]

BILLING CODE 4810–42–P

DEPARTMENT OF VETERANS

AFFAIRS

38 CFR Part 1

RIN 2900–AI06

National Cemeteries

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

SUMMARY: This document amends

Department of Veterans Affairs (VA)

national cemeteries regulations by

eliminating provisions that simply

restate statutory provisions of 38 U.S.C.

2306, 2400, 2401, 2402, 2407, and

Chapter 83; by eliminating provisions

that duplicate other regulations in 38

CFR 1.218–1.220, and by eliminating

internal instructions not required to be

published in the Federal Register.

EFFECTIVE DATE: May 31, 1996.

FOR FURTHER INFORMATION CONTACT: Mr.

Ken Greenberg, Program Analyst,

National Cemetery System, Executive

Communications (402B1), Department

of Veterans Affairs, 810 Vermont

Avenue, NW., Washington, DC 20420,

(202) 273–5179 (this is not a toll-free

number).

SUPPLEMENTARY INFORMATION: This final

rule consists of nonsubstantive changes

and, therefore, is not subject to the

notice and comment and effective date

provisions of 5 U.S.C. 553.

The Secretary hereby certifies that

this final rule will not have a significant

economic impact on a substantial

number of small entitles as they are

defined in the Regulatory Flexibility

Act, 5 U.S.C. 601–612. This final rule

merely consists of nonsubstantive

changes.

Catalog of Federal Domestic Assistance

Numbers for programs affected by this

regulation are 64.201, 64.202 and 64.203.

List of Subjects in 38 CFR Part 1

Administrative practice and

procedures, Cemeteries, Claims,

Privacy, Security.

Approved: May 17, 1996.

Jesse Brown,

Secretary of Veterans Affairs.

For the reasons set forth in the

preamble, 38 CFR part 1 is amended to

read as follows:

PART 1—GENERAL PROVISIONS

1. The authority citation for part 1

continues to read as follows:

Authority: 38 U.S.C. 501(a), unless

otherwise noted.

2. The authority citation immediately

preceding §§ 1.600 to 1.633 is revised to

read as follows:

Authority: Sections 1.601 to 1.633 issued

under 38 U.S.C. 501, 2306, chapter 24.

§ § 1.600, 1.604, 1.631 [Removed]

3. Sections 1.600, 1.604, and 1.631 are

removed.

§ 1.601 [Amended]

4. In § 1.601, paragraph (a) is

removed; and paragraphs (b) and (c) are

redesignated as paragraphs (a) and (b),

respectively.