[Federal Register Volume 61, Number 111 (Friday, June 7, 1996)]
[Notices]
[Pages 29130-29131]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14268]



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DEPARTMENT OF THE INTERIOR
Minerals Management Service


Agency Information Collection Activities; Proposed Collection; 
Comment Request

AGENCY: Minerals Management Service, Interior.

ACTION: Notice.

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SUMMARY: As part of its continuing effort to reduce paperwork and 
respondent burden, the Minerals Management Service (MMS) invites the 
public and other Federal agencies to comment on a request to reinstate 
with change a collection of information contained in an interim final 
rule for 30 CFR Part 203, Relief or Reduction in Royalty Rates.

DATES: Submit written comments by August 6, 1996.

ADDRESSES: Direct all written comments to the Department of the 
Interior; Minerals Management Service; Mail Stop 4700; 381 Elden 
Street; Herndon, Virginia 22070-4817; Attention: Chief, Engineering and 
Standards Branch.

FOR FURTHER INFORMATION CONTACT:
Marshall Rose, Chief, Economic Evaluation Branch, Resource Evaluation 
Division, Minerals Management Service, telephone (703) 787-1536.

SUPPLEMENTARY INFORMATION: 
    Title: 30 CFR Part 203, Relief or Reduction in Royalty Rates.
    Abstract: The Outer Continental Shelf Lands Act (OCSLA) and the 
Deep Water Royalty Relief Act (DWRRA) give the Secretary of the 
Interior the authority to reduce or eliminate royalty or any net profit 
share set forth in Outer Continental Shelf (OCS) oil and gas leases to 
promote increased production.
    MMS is issuing an interim rule to establish the terms and 
conditions for granting reductions in royalty rates under the OCSLA and 
royalty suspension volumes under the DWRRA for certain leases in 
existence before November 28, 1995. It also defines the information 
required for a complete application as required by 43 U.S.C. 
1337(a)(3)(C). The interim final rule was published in the Federal 
Register on May 31, 1996 (61 FR 27263).
    The MMS uses the information to determine whether granting a 
royalty relief request will result in the production of resources that 
would not be produced without such relief. An application for royalty 
relief must contain sufficient financial, economic, reservoir, geologic 
and geophysical, production, and engineering data and information for 
MMS to determine whether relief should be granted according to 
applicable law. The application also must be sufficient to determine 
whether the requested relief will result in an ultimate increase in 
resource recovery and receipts to the Federal Treasury and provide for 
reasonable returns on project investments.
    The applicant's requirement to respond is related only to a request 
to obtain royalty relief. The applicant has no obligation to make such 
a request. The Paperwork Reduction Act of 1995 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 Office 
of Management and Budget (OMB) control number.
    The MMS requested OMB to approve emergency processing of this 
collection of information to coincide with the effective date of the 
interim final rule. This notice provides the full notice and comment 
period requirement.
    Description of Respondents: Federal OCS oil and gas lessees.
    Frequency: On occasion.
    Estimated Number of Respondents: 130 lessees making an estimated 54 
applications per year.
    Estimate of Burden: Average of 835 hours per response.
    Estimate of Total Annual Burden Hours: 45,080 burden hours.

[[Page 29131]]

    Estimate of Total Annual Cost to Respondents for Hour Burdens: 
Based on $35 per hour, the total cost to lessees is estimated to be 
$1,577,800.
    Estimate of Total Other Annual Costs to Respondents:
    There are two other known cost burdens to the respondents.
    (a) We will charge lessees (respondents) applying for royalty 
relief an amount which covers the cost of processing their 
applications. We estimate that our costs for processing OCSLA 
applications will range from $8,500 (continuation of production) to 
$22,500 (project involving capital expansion). We estimate that our 
costs for processing DWRRA applications will range from $27,500 to 
$50,000, depending on the number of leases involved and the complexity 
of the proposed development project. For some applications 
(approximately 30 percent; average of 9 per year), we may need to audit 
the financial data to make an adequate determination on the economics 
of the proposed development. We estimate an audit to cost up to 
$40,000. We will issue a Notice to Lessees (NTL) that will provide more 
detailed information on the amounts of royalty relief application 
processing costs, and when and how payments are to be made to us for 
this purpose. We will revise the NTL periodically to reflect our cost 
experience and to provide other information necessary for the 
administration of this program. An application processing cost would 
average $30,000 for an estimated burden of $1,620,000 ($30,000  x  54 
applications=$1,620,000).
    (b) A respondent's application or pre-production report must be 
accompanied by a report prepared by an independent certified public 
accountant as described in Sec. 203.55(c) of the rule. The OCSLA 
applications will require this report only once; the DWRRA applications 
will require this report at two stages (redetermination and short form 
applications are excluded). We estimate an average cost for a report 
will be $175,000. The estimated burden is $7,175,000 ($175,000  x  41 
applications=$7,175,000).
    Type of Request: Reinstatement with change.
    OMB Number: 1010-0071.
    Form Number: N/A.
    Comments: MMS will summarize written responses to this notice and 
address them in the regular request for a 3-year OMB approval. Your 
comments will also be considered as MMS develops the final rule for 30 
CFR Part 203. All comments will become a matter of public record.
    (1) MMS specifically solicits comments on the following questions:
    (a) Is the proposed collection of information necessary for the 
proper performance of MMS's functions, and will it be useful?
    (b) Are the estimates of the burden hours of the proposed 
collection reasonable?
    (c) Do you have any suggestions that would enhance the quality, 
clarity, or usefulness of the information to be collected?
    (d) Is there a way to minimize the information collection burden on 
those who are to respond, including through the use of appropriate 
automated electronic, mechanical, or other forms of information 
technology?
    (2) In addition, the Paperwork Reduction Act of 1995 requires 
agencies to estimate the total annual cost burden to respondents or 
recordkeepers resulting from the collection of information. MMS needs 
your comments on this item. Your response should split the cost 
estimate into two components:
    (a) Total capital and startup cost component and
    (b) Annual operation, maintenance, and purchase of services 
component.
    Your estimates should consider the costs to generate, maintain, and 
disclose or provide the information. You should describe the methods 
you use to estimate major costs 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, drilling, and testing equipment; and record storage 
facilities. Generally, your estimates should not include equipment or 
services purchased: (1) Before October 1, 1995; (2) to comply with 
requirements not associated with the information collection; (3) for 
reasons other than to provide information or keep records for the 
Government; (4) or as part of customary and usual business or private 
practices.
    Bureau Clearance Officer: Carole A. deWitt, (703) 787-1242.

    Dated: May 23, 1996.
Henry G. Bartholomew,
Deputy Associate Director for Operations and Safety Management.
[FR Doc. 96-14268 Filed 6-6-96; 8:45 am]
BILLING CODE 4810-MR-M