Federal Register / Vol. 73, No. 149 / Friday, August 1, 2008 / Notices 45055 

conveyance of mineral interests, and 

payment of publication costs to the Las 

Vegas Field Office. The purchaser must 

remit the remainder of the purchase 

price within 180 days from the date of 

receiving the sale offer to the Las Vegas 

Field Office. Payments must be received 

by certified check, postal money order, 

bank draft, or cashier’s check payable to 

the U.S. Department of the InteriorBLM. Failure to meet conditions 

established for this sale will void the 

sale and any monies received will be 

forfeited. Arrangements for electronic 

fund transfer to BLM for the balance due 

shall be made a minimum of two weeks 

prior to the date you wish to make 

payment. 

The BLM may accept or reject any or 

all offers to purchase any parcel, or may 

withdraw any parcel of land or interest 

therein from sale, if, in the opinion of 

the authorized officer, consummation of 

the sale would not be fully consistent 

with FLPMA or other applicable laws or 

is determined not to be in the public 

interest. 

The parcel of land will not be offered 

for sale prior to 60 days from the date 

of publication of this notice. Only 

written comments submitted by postal 

service or overnight mail will be 

considered as properly filed. Electronic 

mail, facsimile, or telephone comments 

will not be considered. 

Before including your address, phone 

number, e-mail address, or other 

personal identifying information in your 

comment, you should be aware that 

your entire comment—including your 

personal identifying information—may 

be made publicly available at any time. 

While you can ask us in your comment 

to withhold your personal identifying 

information from public review, we 

cannot guarantee that we will be able to 

do so. 

Any adverse comments regarding the 

proposed sale will be reviewed by the 

BLM Nevada State Director, who may 

sustain, vacate, or modify this realty 

action and issue a final determination. 

In the absence of timely filed objections, 

this realty action will become the final 

determination of the Department of the 

Interior. 

Authority: 43 CFR part 2711. 

Dated: July 14, 2008. 

Mary Jo Rugwell, 

Manager, Las Vegas Field Office. 

[FR Doc. E8–17615 Filed 7–31–08; 8:45 am] 

BILLING CODE 4310–HC–P 

DEPARTMENT OF THE INTERIOR 

Minerals Management Service 

[Docket No. MMS–2008–MRM–0029] 

Agency Information Collection 

Activities: Proposed Collection, 

Comment Request 

AGENCY: Minerals Management Service 

(MMS), Interior. 

ACTION: Notice of an extension of a 

currently approved information 

collection (OMB Control Number 1010–

0103). 

SUMMARY: To comply with the 

Paperwork Reduction Act of 1995 

(PRA), 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. 

We changed the title of this information 

collection request (ICR) to meet OMB 

requirements. The new title of this ICR 

is ‘‘30 CFR Parts 202, 206, and 207, 

Indian Oil and Gas Valuation.’’

DATES: Submit written comments on or 

before September 2, 2008. 

ADDRESSES: You may submit comments 

by the following methods: 

• Electronically go to http:// 

www.regulations.gov. In the ‘‘Comment 

or Submission’’ column, enter ‘‘MMS–

2008–MRM–0029’’ to view supporting 

and related materials for this ICR. Click 

on ‘‘Send a comment or submission’’

link to submit public comments. 

Information on using Regulations.gov, 

including instructions for accessing 

documents, submitting comments, and 

viewing the docket after the close of the 

comment period, is available through 

the site’s ‘‘User Tips’’ link. All 

comments submitted will be posted to 

the docket. 

• Mail comments to Hyla Hurst, 

Regulatory Specialist, Minerals 

Management Service, Minerals Revenue 

Management, P.O. Box 25165, MS 

302B2, Denver, Colorado 80225. Please 

reference ICR 1010–0103 in your 

comments. 

• Hand-carry comments or use an 

overnight courier service. Our courier 

address is Building 85, Room A–614, 

Denver Federal Center, West 6th Ave. 

and Kipling Blvd., Denver, Colorado 

80225. Please reference ICR 1010–0103 

in your comments. 

FOR FURTHER INFORMATION CONTACT: Hyla 

Hurst, telephone (303) 231–3495, or email Hyla.Hurst@mms.gov. You may 

also contact Hyla Hurst to obtain copies, 

at no cost, of (1) The ICR, (2) any 

associated forms, and (3) the regulations 

that require the subject collection of 

information. 

SUPPLEMENTARY INFORMATION: 

Title: 30 CFR Parts 202, 206, and 207, 

Indian Oil and Gas Valuation. 

OMB Control Number: 1010–0103. 

Bureau Form Number: Forms MMS–

4109, MMS–4110, MMS–4295, MMS–

4410, and MMS–4411. 

Abstract: The Secretary of the U.S. 

Department of the Interior (Secretary) is 

responsible for matters relevant to 

mineral resource development on 

Federal and Indian lands and the Outer 

Continental Shelf (OCS). Under the 

Mineral Leasing Act (30 U.S.C. 1923), 

the Indian Mineral Development Act of 

1982 (25 U.S.C. 2103), and the Outer 

Continental Shelf Lands Act (43 U.S.C. 

1353), the Secretary is responsible for 

(1) Managing the production of minerals 

from Federal and Indian lands and the 

OCS; (2) collecting royalties and other 

mineral revenues from lessees who 

produce minerals; and (3) distributing 

the funds collected in accordance with 

applicable laws. The Secretary also has 

a trust responsibility to manage Indian 

lands and seek advice and information 

from Indian beneficiaries. The MMS 

performs the minerals revenue 

management functions and assists the 

Secretary in carrying out the 

Department’s trust responsibility for 

Indian lands. Applicable laws 

pertaining to mineral royalties are 

located on our Web site at http:// 

www.mrm.mms.gov/Laws_R_D/ 

PublicLawsAMR.htm. 

Regulations at 30 CFR part 202, 

subparts C and J, pertain to royalties; 

part 206, subparts B and E, govern the 

valuation of oil and gas produced from 

leases on Indian lands; and part 207 

pertains to recordkeeping. Indian tribes 

and individual Indian mineral owners 

receive all royalties generated from their 

lands. Determining product valuation is 

essential to ensure that Indian tribes and 

individual Indian mineral owners 

receive payment on the full value of the 

minerals removed from their lands. 

Failure to collect the data described in 

this information collection could result 

in the undervaluation of leased minerals 

on Indian lands. All data reported is 

subject to subsequent audit and 

adjustment. 

Indian Oil 

The regulations apply to all oil 

production from Indian oil and gas 

leases, except leases on the Osage 

Indian Reservation. The regulations 

provide that lessees determine the value 

of oil based on the higher of: (1) The 

gross proceeds under an arm’s-length 

contract, or (2) major portion analysis. 

These oil valuation methods are eligible 

for applicable transportation 

allowances. From information collected 

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45056 Federal Register / Vol. 73, No. 149 / Friday, August 1, 2008 / Notices 

on Form MMS–4110, Oil Transportation 

Allowance Report, MMS verifies 

transportation allowances during the 

product valuation verification to 

determine if the lessee reported and 

paid the proper royalty amount. The 

MMS and tribal personnel evaluate 

whether the transportation allowances 

reported and claimed by lessees are 

within regulatory allowance limitations. 

Indian Gas 

The regulations apply to all gas 

production from Indian oil and gas 

leases, except leases on the Osage 

Indian Reservation. Most Indian leases 

contain the requirement to perform 

accounting for comparison (dual 

accounting) for gas produced from the 

lease. Lessees must elect to perform 

actual dual accounting as defined in 30 

CFR 206.176 or alternative dual 

accounting as defined in 30 CFR 

206.173. Lessees use Form MMS–4410, 

Accounting for Comparison [Dual 

Accounting], to certify that dual 

accounting is not required on an Indian 

lease or to make an election for actual 

or alternative dual accounting for Indian 

leases. 

The regulations require lessees to 

submit Form MMS–4411, Safety Net 

Report, when gas production from an 

Indian oil or gas lease is sold beyond the 

first index pricing point. The safety net 

calculation establishes the minimum 

value, for royalty purposes, of natural 

gas production from Indian oil and gas 

leases. This reporting requirement 

ensures that Indian lessors receive all 

royalties due and aids MMS compliance 

efforts. 

The MMS and tribal personnel use the 

information collected on Form MMS–

4295, Gas Transportation Allowance 

Report, to evaluate whether 

transportation allowances reported 

under a non-arm’s-length contract or no 

contract are reasonable, and actual costs 

are within regulatory allowance 

limitations. 

The MMS and tribal personnel use the 

information collected on Form MMS–

4109, Gas Processing Allowance 

Summary Report, to evaluate whether 

processing allowances reported under a 

non-arm’s-length contract or no contract 

are reasonable, and actual costs are 

within regulatory allowance limitations. 

Indian Oil and Gas 

Form MMS–4393, Request to Exceed 

Regulatory Allowance Limitation, is 

used for both Federal and Indian leases. 

Most of the burden hours are incurred 

on Federal leases; therefore, the form is 

approved under ICR 1010–0136, 

pertaining to Federal oil and gas leases. 

However, we include a discussion of the 

form in this ICR, as well as the burden 

hours for Indian leases. To request 

permission to exceed a regulatory 

allowance limit, lessees must submit a 

letter to MMS explaining why a higher 

allowance limit is necessary and 

provide supporting documentation, 

including a completed Form MMS–

4393. This form provides MMS with the 

data necessary to make a decision 

whether to approve or deny the request 

and track deductions on royalty reports. 

Summary 

The MMS is requesting OMB’s 

approval to continue to collect this 

information. Not collecting this 

information would limit the Secretary’s 

ability to discharge his/her duties and 

may also result in loss of royalty 

payments to Indian tribes and 

individual Indian mineral owners. 

Proprietary information submitted to 

MMS under this collection is protected, 

and no items of a sensitive nature are 

collected. The requirement to respond is 

mandatory for Form MMS–4411, Safety 

Net Report, when certain circumstances 

exist. For all other forms in this 

collection, the requirement to respond is 

voluntary; i.e., a response is required to 

obtain a benefit. 

Frequency of Response: Annually and 

on occasion. 

Estimated Number and Description of 

Respondents: 302 Indian lessees. 

Estimated Annual Reporting and 

Recordkeeping ‘‘Hour’’ Burden: 1,074 

hours. 

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: 

RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS

30 CFR Reporting and recordkeeping requirement Hour burden 

Average number of annual 

responses 

Annual burden 

hours 

202—ROYALTIES 

Subpart C—Federal and Indian Oil 

202.101 ............................... Standards for reporting and paying royalties. 

Oil volumes are to be reported in barrels of clean oil of 42 

standard U.S. gallons (231 cubic inches each) at 60 °F. 

* * * 

Burden covered under OMB Control Number 

1010–0140 (expires 11/30/2009). Burden 

covered under § 210.52. 

Subpart J—Gas Production From Indian Leases 

202.551(b) .......................... How do I determine the volume of production for which I 

must pay royalty if my lease is not in an approved Federal unit or communitization agreement (AFA)? 

(b) You and all other persons paying royalties on the lease 

must report and pay royalties based on your takes. * * * 

Burden covered under OMB Control Number 

1010–0140. Burden covered under § 210.52. 

202.551(c) ........................... (c) You and all other persons paying royalties on the lease 

may ask MMS for permission * * * 

1 1 1 

202.558(a) and (b) .............. What standards do I use to report and pay royalties on 

gas? 

(a) You must report gas volumes as follows: * * * 

(b) You must report residue gas and gas plant product volumes as follows: * * * 

Burden covered under OMB Control Number 

1010–0140. Burden covered under § 210.52. 

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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued 

30 CFR Reporting and recordkeeping requirement Hour burden 

Average number of annual 

responses 

Annual burden 

hours 

206—PRODUCT VALUATION 

Subpart B—Indian Oil 

206.56(b)(2) ........................ Transportation allowances—general. 

(b)(2) Upon request of a lessee, MMS may approve a transportation allowance deduction in excess of the limitation prescribed by paragraph (b)(1) of this section. * * * An application for exception (using Form MMS–4393, Request to Exceed Regulatory Allowance Limitation) must contain all relevant and supporting documentation necessary for MMS to 

make a determination. * * * 

Burden covered under OMB Control Number 

1010–0136 (expires 06/30/2009). 

206.57(a)(1)(i) ..................... Determination of transportation allowances. 

(a) Arm’s-length transportation contracts. 

(1)(i) * * * The lessee shall have the burden of demonstrating 

that its contract is arm’s-length. 

AUDIT PROCESS. See note. 

206.57(a)(1)(i) ..................... (a) Arm’s-length transportation contracts. 

(1)(i) * * * Before any deduction may be taken, the lessee 

must submit a completed page one of Form MMS–4110 

(and Schedule 1), Oil Transportation Allowance Report * * * 

Burden covered under § 206.57(c)(1)(i) and (iii). 

206.57(a)(1)(iii) ................... (a) Arm’s-length transportation contracts. 

(1)(iii) * * * When MMS determines that the value of the 

transportation may be unreasonable, MMS will notify the 

lessee and give the lessee an opportunity to provide written 

information justifying the lessee’s transportation costs. 

AUDIT PROCESS. See note. 

206.57(a)(2)(i) ..................... (a) Arm’s-length transportation contracts. 

(2)(i) * * * Except as provided in this paragraph, no allowance 

may be taken for the costs of transporting lease production 

which is not royalty-bearing without MMS approval. 

Burden covered under § 206.57(a)(3). 

206.57(a)(2)(ii) .................... (a) Arm’s-length transportation contracts. 

(2)(ii) Notwithstanding the requirements of paragraph (i), the 

lessee may propose to MMS a cost allocation method on 

the basis of the values of the products transported. * * * 

20 1 20 

206.57(a)(3) ........................ (a) Arm’s-length transportation contracts. 

(3) If an arm’s-length transportation contract includes both 

gaseous and liquid products, and the transportation costs 

attributable to each product cannot be determined from the 

contract, the lessee shall propose an allocation procedure to 

MMS. * * * The lessee shall submit all available data to 

support its proposal. * * * 

40 1 40 

206.57(b)(1) ........................ (b) Non-arm’s-length or no contract. 

(1) * * * A transportation allowance may be claimed retroactively for a period of not more than 3 months prior to the 

first day of the month that Form MMS–4110 is filed with 

MMS, unless MMS approves a longer period upon a showing of good cause by the lessee. * * * 

Burden covered under § 206.57(c)(2)(i), and 

(c)(2)(iii). 

206.57(b)(1) ........................ (b) Non-arm’s-length or no contract. 

(1) * * * When necessary or appropriate, MMS may direct a 

lessee to modify its actual transportation allowance deduction. 

Burden covered under OMB Control Number 

1010–0140. Burden covered under § 210.52. 

206.57(b)(2)(iv) ................... (b) Non-arm’s-length or no contract. 

(2)(iv) * * * After a lessee has elected to use either method 

for a transportation system, the lessee may not later elect to 

change to the other alternative without approval of MMS. 

20 1 20 

206.57(b)(2)(iv)(A) .............. (b) Non-arm’s-length or no contract. 

(2)(iv)(A) * * * After an election is made, the lessee may not 

change methods without MMS approval. * * * 

20 1 20 

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45058 Federal Register / Vol. 73, No. 149 / Friday, August 1, 2008 / Notices 

RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued 

30 CFR Reporting and recordkeeping requirement Hour burden 

Average number of annual 

responses 

Annual burden 

hours 

206.57(b)(3)(i) ..................... (b) Non-arm’s-length or no contract. 

(3)(i) * * * Except as provided in this paragraph, the lessee 

may not take an allowance for transporting lease production 

which is not royalty bearing without MMS approval. 

40 1 40 

206.57(b)(3)(ii) .................... (b) Non-arm’s-length or no contract. 

(3)(ii) Notwithstanding the requirements of paragraph (i), the 

lessee may propose to MMS a cost allocation method on 

the basis of the values of the products transported. * * * 

20 1 20 

206.57(b)(4) ........................ (b) Non-arm’s-length or no contract. 

(4) Where both gaseous and liquid products are transported 

through the same transportation system, the lessee shall 

propose a cost allocation procedure to MMS. * * * The lessee shall submit all available data to support its proposal. 

* * * 

20 1 20 

206.57(b)(5) ........................ (b) Non-arm’s-length or no contract. 

(5) A lessee may apply to MMS for an exception from the requirement that it compute actual costs in accordance with 

paragraphs (b)(1) through (b)(4) of this section. * * * 

20 1 20 

206.57(c)(1)(i) ..................... (c) Reporting requirements. 

(1) Arm’s-length contracts. (i) With the exception of those 

transportation allowances specified in paragraphs (c)(1)(v) 

and (c)(1)(vi) of this section, the lessee shall submit page 

one of the initial Form MMS–4110 (and Schedule 1), Oil 

Transportation Allowance Report, prior to, or at the same 

time as, the transportation allowance determined, under an 

arm’s-length contract, is reported on Form MMS–2014, Report of Sales and Royalty Remittance. * * * 

4 4 16 

206.57(c)(1)(iii) .................... (c) Reporting requirements. 

(1) Arm’s-length contracts. (iii) After the initial reporting period 

and for succeeding reporting periods, lessees must submit 

page one of Form MMS–4110 (and Schedule 1) within 3 

months after the end of the calendar year, or after the applicable contract or rate terminates or is modified or amended, 

whichever is earlier, unless MMS approves a longer period 

(during which period the lessee shall continue to use the allowance from the previous reporting period). 

4 4 16 

206.57(c)(1)(iv) ................... (c) Reporting requirements. 

(1) Arm’s-length contracts. (iv) MMS may require that a lessee 

submit arm’s-length transportation contracts, production 

agreements, operating agreements, and related documents. 

Documents shall be submitted within a reasonable time, as 

determined by MMS. 

AUDIT PROCESS. See note. 

206.57(c)(2)(i) ..................... (c) Reporting requirements. 

(2) Non-arm’s-length or no contract. 

(i) With the exception of those transportation allowances specified in paragraphs (c)(2)(v), (c)(2)(vii) and (c)(2)(viii) of this 

section, the lessee shall submit an initial Form MMS–4110 

prior to, or at the same time as, the transportation allowance 

determined under a non-arm’s-length contract or no-contract 

situation is reported on Form MMS–2014. * * * The initial 

report may be based upon estimated costs. 

6 1 6 

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Federal Register / Vol. 73, No. 149 / Friday, August 1, 2008 / Notices 45059 

RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued 

30 CFR Reporting and recordkeeping requirement Hour burden 

Average number of annual 

responses 

Annual burden 

hours 

206.57(c)(2)(iii) .................... (c) Reporting requirements. 

(2) Non-arm’s-length or no contract. 

(iii) For calendar-year reporting periods succeeding the initial 

reporting period, the lessee shall submit a completed Form 

MMS–4110 containing the actual costs for the previous reporting period. If oil transportation is continuing, the lessee 

shall include on Form MMS–4110 its estimated costs for the 

next calendar year. * * * MMS must receive the Form 

MMS–4110 within 3 months after the end of the previous reporting period, unless MMS approves a longer period (during which period the lessee shall continue to use the allowance from the previous reporting period). 

6 3 18 

206.57(c)(2)(iv) ................... (c) Reporting requirements. 

(2) Non-arm’s-length or no contract. 

(iv) For new transportation facilities or arrangements, the lessee’s initial Form MMS–4110 shall include estimates of the 

allowable oil transportation costs for the applicable period. 

* * * 

Burden covered under § 206.57(c)(2)(i). 

206.57(c)(2)(v) .................... (c) Reporting requirements. 

(2) Non-arm’s-length or no contract. 

(v) * * * only those allowances that have been approved by 

MMS in writing * * * 

Burden covered under § 206.57(c)(2)(i). 

206.57(c)(2)(vi) ................... (c) Reporting requirements. 

(2) Non-arm’s-length or no contract. 

(vi) Upon request by MMS, the lessee shall submit all data 

used to prepare its Form MMS–4110. The data shall be provided within a reasonable period of time, as determined by 

MMS. 

AUDIT PROCESS. See note. 

206.57(c)(4) and (e)(2) ....... (c) Reporting requirements. 

(4) Transportation allowances must be reported as a separate 

line item on Form MMS–2014 * * * 

(e) Adjustments. 

(2) For lessees transporting production from Indian leases, the 

lessee must submit a corrected Form MMS–2014 to reflect 

actual costs * * * 

Burden covered under OMB Control Number 

1010–0140. Burden covered under § 210.52. 

206.59 ................................. May I ask MMS for valuation guidance? 

You may ask MMS for guidance in determining value. You 

may propose a value method to MMS. Submit all available 

data related to your proposal and any additional information 

MMS deems necessary. * * * 

20 1 20 

206.61(a) and (b) ................ What records must I keep and produce? 

(a) On request, you must make available sales, volume, and 

transportation data for production you sold, purchased, or 

obtained from the field or area. You must make this data 

available to MMS, Indian representatives, or other authorized persons. 

(b) You must retain all data relevant to the determination of 

royalty value. * * * 

AUDIT PROCESS. See note. 

206—PRODUCT VALUATION 

Subpart E—Indian Gas 

206.172(b)(1)(ii) .................. How do I value gas produced from leases in an index 

zone? 

(b) Valuing residue gas and gas before processing. 

(1)(ii) Gas production that you certify on Form MMS–4410 

* * * is not processed before it flows into a pipeline with an 

index but which may be processed later * * * 

4 25 100 

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45060 Federal Register / Vol. 73, No. 149 / Friday, August 1, 2008 / Notices 

RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued 

30 CFR Reporting and recordkeeping requirement Hour burden 

Average number of annual 

responses 

Annual burden 

hours 

206.172(e)(6)(i) and (iii) ...... (e) Determining the minimum value for royalty purposes of gas 

sold beyond the first index pricing point. 

(6)(i) You must report the safety net price for each index zone 

to MMS on Form MMS–4411, Safety Net Report, no later 

than June 30 following each calendar year; * * * 

(iii) MMS may order you to amend your safety net price within 

one year from the date your Form MMS–4411 is due or is 

filed, whichever is later. * * * 

3 10 30 

206.172(e)(6)(ii) .................. (e) Determining the minimum value for royalty purposes of gas 

sold beyond the first index pricing point. 

(6)(ii) You must pay and report on Form MMS–2014 additional 

royalties due no later than June 30 following each calendar 

year * * * 

Burden covered under OMB Control Number 

1010–0140. Burden covered under § 210.52. 

206.172(f)(1)(ii), (f)(2), and 

(f)(3).

(f) Excluding some or all tribal leases from valuation under this 

section. 

(1) An Indian tribe may ask MMS to exclude some or all of its 

leases from valuation under this section. * * * 

(ii) If an Indian tribe requests exclusion from an index zone for 

less than all of its leases, MMS will approve the request 

only if the excluded leases may be segregated into one or 

more groups based on separate fields within the reservation. 

(2) An Indian tribe may ask MMS to terminate exclusion of its 

leases from valuation under this section. * * * 

(3) The Indian tribe’s request to MMS under either paragraph 

(f)(1) or (2) of this section must be in the form of a tribal 

resolution. * * * 

40 1 40 

206.173(a)(1) ...................... How do I calculate the alternative methodology for dual 

accounting? 

(a) Electing a dual accounting method. 

(1) * * * You may elect to perform the dual accounting calculation according to either 206.176(a) (called actual dual 

accounting), or paragraph (b) of this section (called the alternative methodology for dual accounting). 

2 19 38 

206.173(a)(2) ...................... (a) Electing a dual accounting method. 

(2) You must make a separate election to use the alternative 

methodology for dual accounting for your Indian leases in 

each MMS-designated area. * * * 

Burden covered under § 206.173(a)(1). 

206.174(a)(4)(ii) .................. How do I value gas production when an index-based 

method cannot be used? 

(a) Situations in which an index-based method cannot be 

used. 

(4)(ii) If the major portion value is higher, you must submit an 

amended Form MMS–2014 to MMS by the due date specified in the written notice from MMS of the major portion 

value. * * * 

Burden covered under OMB Control Number 

1010–0140. Burden covered under § 210.52. 

206.174(b)(1)(i) and (iii); 

(b)(2); (d)(2).

(b) Arm’s-length contracts. 

(1)(i) You have the burden of demonstrating that your contract 

is arm’s-length. * * * 

(iii) * * * In these circumstances, MMS will notify you and give 

you an opportunity to provide written information justifying 

your value. * * * 

(2) MMS may require you to certify that your arm’s-length contract provisions include all of the consideration the buyer 

pays, either directly or indirectly, for the gas, residue gas, or 

gas plant product. 

(d) Supporting data. 

(2) You must make all such data available upon request to the 

authorized MMS or Indian representatives, to the Office of 

the Inspector General of the Department, or other authorized persons. * * * 

AUDIT PROCESS. See note. 

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Federal Register / Vol. 73, No. 149 / Friday, August 1, 2008 / Notices 45061 

RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued 

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Average number of annual 

responses 

Annual burden 

hours 

206.174(d) .......................... (d) Supporting data. If you determine the value of production 

under paragraph (c) of this section, you must retain all data 

relevant to determination of royalty value. 

Burden covered under OMB Control Number 

1010–0140. 

206.174(f) ........................... (f) Value guidance. You may ask MMS for guidance in determining value. You may propose a valuation method to 

MMS. Submit all available data related to your proposal and 

any additional information MMS deems necessary. * * * 

40 1 40 

206.175(d)(4) ...................... How do I determine quantities and qualities of production 

for computing royalties? 

(d)(4) You may request MMS approval of other methods for 

determining the quantity of residue gas and gas plant products allocable to each lease. * * * 

20 1 20 

206.176(b) .......................... How do I perform accounting for comparison? 

(b) If you are required to account for comparison, you may 

elect to use the alternative dual accounting methodology 

provided for in § 206.173 instead of the provisions in paragraph (a) of this section. 

Burden covered under § 206.173(a)(1). 

206.176(c) ........................... (c) * * * If you do not perform dual accounting, you must certify to MMS that gas flows into such a pipeline before it is 

processed. 

Burden covered under § 206.172(b)(1)(ii). 

Transportation Allowances 

206.177(c)(2) and (c)(3) ..... What general requirements regarding transportation allowances apply to me? 

(c)(2) If you ask MMS, MMS may approve a transportation allowance deduction in excess of the limitation in paragraph 

(c)(1) of this section. * * * 

(3) Your application for exception (using Form MMS–4393, 

Request to Exceed Regulatory Allowance Limitation) must 

contain all relevant and supporting documentation necessary for MMS to make a determination. 

4 1 4 

206.178(a)(1)(i) ................... How do I determine a transportation allowance? 

(a) Determining a transportation allowance under an arm’slength contract. 

(1)(i) * * * You are required to submit to MMS a copy of your 

arm’s-length transportation contract(s) and all subsequent 

amendments to the contract(s) within 2 months of the date 

MMS receives your report which claims the allowance on 

the Form MMS–2014. 

1 25 25 

206.178(a)(1)(iii) ................. (a) Determining a transportation allowance under an arm’slength contract. 

(1)(iii) If MMS determines that the consideration paid under an 

arm’s-length transportation contract does not reflect the 

value of the transportation because of misconduct by or between the contracting parties * * * In these circumstances, 

MMS will notify you and give you an opportunity to provide 

written information justifying your transportation costs. 

AUDIT PROCESS. See note. 

206.178(a)(2)(i) and (ii) ....... (a) Determining a transportation allowance under an arm’slength contract. 

(2)(i) * * * you cannot take an allowance for the costs of 

transporting lease production that is not royalty bearing without MMS approval, or without lessor approval on tribal 

leases. 

(ii) As an alternative to paragraph (a)(2)(i) of this section, you 

may propose to MMS a cost allocation method based on the 

values of the products transported. * * * 

20 1 20 

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hours 

206.178(a)(3)(i) and (ii) ....... (a) Determining a transportation allowance under an arm’slength contract. 

(3)(i) If your arm’s-length transportation contract includes both 

gaseous and liquid products and the transportation costs attributable to each cannot be determined from the contract, 

you must propose an allocation procedure to MMS. * * * 

(ii) You are required to submit all relevant data to support your 

allocation proposal. * * * 

40 1 40 

206.178(b)(1)(ii) .................. (b) Determining a transportation allowance under a non-arm’slength contract or no contract. 

(1)(ii) * * * You must submit the actual cost information to 

support the allowance to MMS on Form MMS–4295, Gas 

Transportation Allowance Report, within 3 months after the 

end of the 12-month period to which the allowance applies. 

* * * 

15 3 45 

206.178(b)(2)(iv) ................. (b) Determining a transportation allowance under a non-arm’slength contract or no contract. 

(2)(iv) You may use either depreciation with a return on 

undepreciated capital investment or a return on depreciable 

capital investment. * * * you may not later elect to change 

to the other alternative without MMS approval. 

20 1 20 

206.178(b)(2)(iv)(A) ............ (b) Determining a transportation allowance under a non-arm’slength contract or no contract. 

(2)(iv)(A) * * * Once you make an election, you may not 

change methods without MMS approval. * * * 

20 1 20 

206.178(b)(3)(i) ................... (b) Determining a transportation allowance under a non-arm’slength contract or no contract. 

(3)(i) * * * Except as provided in this paragraph, you may not 

take an allowance for transporting a product that is not royalty bearing without MMS approval. 

40 1 40 

206.178(b)(3)(ii) .................. (b) Determining a transportation allowance under a non-arm’slength contract or no contract. 

(3)(ii) As an alternative to the requirements of paragraph 

(b)(3)(i) of this section, you may propose to MMS a cost allocation method based on the values of the products transported. * * * 

20 1 20 

206.178(b)(5) ...................... (b) Determining a transportation allowance under a non-arm’slength contract or no contract. 

(5) If you transport both gaseous and liquid products through 

the same transportation system, you must propose a cost 

allocation procedure to MMS. * * * You are required to submit all relevant data to support your proposal. * * * 

40 1 40 

206.178(d)(1) ...................... (d) Reporting your transportation allowance. 

(1) If MMS requests, you must submit all data used to determine your transportation allowance * * * 

AUDIT PROCESS. See note. 

206.178(d)(2), (e), and (f)(1) (d) Reporting your transportation allowance. 

(2) You must report transportation allowances as a separate 

entry on Form MMS–2014. * * * 

(e) Adjusting incorrect allowances. If for any month the transportation allowance you are entitled to is less than the 

amount you took on Form MMS–2014, you are required to 

report and pay additional royalties due, plus interest computed under 30 CFR 218.54 from the first day of the first 

month you deducted the improper transportation allowance 

until the date you pay the royalties due. * * * 

(f) Determining allowable costs for transportation allowances. 

* * * 

(1) Firm demand charges paid to pipelines. * * * You must 

modify the Form MMS–2014 by the amount received or 

credited for the affected reporting period. 

Burden covered under OMB Control Number 

1010–0140. Burden covered under § 210.52. 

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responses 

Annual burden 

hours 

Processing Allowances 

206.180(a)(1)(i) ................... How do I determine an actual processing allowance? 

(a) Determining a processing allowance if you have an arm’slength processing contract. 

(1)(i) * * * You have the burden of demonstrating that your 

contract is arm’s-length. You are required to submit to MMS 

a copy of your arm’s-length contract(s) and all subsequent 

amendments to the contract(s) within 2 months of the date 

MMS receives your first report that deducts the allowance 

on the Form MMS–2014. 

1 15 15 

206.180(a)(1)(iii) ................. (a) Determining a processing allowance if you have an arm’slength processing contract. 

(1)(iii) If MMS determines that the consideration paid under an 

arm’s-length processing contract does not reflect the value 

of the processing because of misconduct by or between the 

contracting parties * * * In these circumstances, MMS will 

notify you and give you an opportunity to provide written information justifying your processing costs. 

AUDIT PROCESS. See note. 

206.180(a)(3) ...................... (a) Determining a processing allowance if you have an arm’slength processing contract. 

(3) If your arm’s-length processing contract includes more than 

one gas plant product and the processing costs attributable 

to each product cannot be determined from the contract, 

you must propose an allocation procedure to MMS. * * * 

You are required to submit all relevant data to support your 

proposal. * * * 

40 1 40 

206.180(b)(1)(ii) .................. (b) Determining a processing allowance if you have a nonarm’s-length contract or no contract. 

(1)(ii) * * * You must submit the actual cost information to 

support the allowance to MMS on Form MMS–4109, Gas 

Processing Allowance Summary Report, within 3 months 

after the end of the 12-month period for which the allowance 

applies. * * * 

20 5 100 

206.180(b)(2)(iv) ................. (b) Determining a processing allowance if you have a nonarm’s-length contract or no contract. 

(2)(iv) You may use either depreciation with a return on 

undepreciable capital investment or a return on depreciable 

capital investment.* * * you may not later elect to change to 

the other alternative without MMS approval. 

20 1 20 

206.180(b)(2)(iv)(A) ............ (b) Determining a processing allowance if you have a nonarm’s-length contract or no contract. 

(2)(iv)(A) * * * Once you make an election, you may not 

change methods without MMS approval. * * * 

20 1 20 

206.180(b)(3) ...................... (b) Determining a processing allowance if you have a nonarm’s-length contract or no contract. 

(3) Your processing allowance under this paragraph (b) must 

be determined based upon a calendar year or other period if 

you and MMS agree to an alternative. 

20 1 20 

206.180(c)(1) ...................... (c) Reporting your processing allowance. 

(1) If MMS requests, you must submit all data used to determine your processing allowance. * * * 

AUDIT PROCESS. See note. 

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Average number of annual 

responses 

Annual burden 

hours 

206.180(c)(2) and (d) .......... (c) Reporting your processing allowance. 

(2) You must report gas processing allowances as a separate 

entry on the Form MMS–2014. * * * 

(d) Adjusting incorrect processing allowances. If for any month 

the gas processing allowance you are entitled to is less than 

the amount you took on Form MMS–2014, you are required 

to pay additional royalties, plus interest computed under 30 

CFR 218.54 from the first day of the first month you deducted a processing allowance until the date you pay the 

royalties due. * * * 

Burden covered under OMB Control Number 

1010–0140. Burden covered under § 210.52. 

206.181(c) ........................... How do I establish processing costs for dual accounting 

purposes when I do not process the gas? 

(c) A proposed comparable processing fee submitted to either 

the tribe and MMS (for tribal leases) or MMS (for allotted 

leases) with your supporting documentation submitted to 

MMS. If MMS does not take action on your proposal within 

120 days, the proposal will be deemed to be denied and 

subject to appeal to the MMS Director under 30 CFR part 

290. 

40 1 40 

207—SALES AGREEMENTS OR CONTRACTS GOVERNING THE DISPOSAL OF LEASE PRODUCTS 

Subpart A—General Provisions 

207.4(b) ............................... Contracts made pursuant to old form leases. 

(b) The stipulation, the substance of which must be included in 

the contract, or be made the subject matter of a separate instrument properly identifying the leases affected thereby, is 

as follows: * * * 

AUDIT PROCESS. See note. 

207.5 ................................... Contract and sales agreement retention. 

Copies of all sales contracts, posted price bulletins, etc., and 

copies of all agreements, other contracts, or other documents which are relevant to the valuation of production are 

to be maintained by the lessee and made available upon request during normal working hours to authorized MMS, 

State or Indian representatives, other MMS or BLM officials, 

auditors of the General Accounting Office, or other persons 

authorized to receive such documents, or shall be submitted 

to MMS within a reasonable period of time, as determined 

by MMS. Any oral sales arrangement negotiated by the lessee must be placed in written form and retained by the lessee. Records shall be retained in accordance with 30 CFR 

part 212. 

AUDIT PROCESS. See note. 

Total Burden ................................................................................................................................................... 140 1,074 

Note: AUDIT PROCESS—The Office of Regulatory Affairs determined that the audit process is exempt from the Paperwork Reduction Act of 

1995 because MMS staff asks non-standard questions to resolve exceptions. 

Estimated Annual Reporting and 

Recordkeeping ‘‘Non-hour’’ Cost 

Burden: We have identified no ‘‘nonhour’’ cost burdens. 

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. 

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Federal Register / Vol. 73, No. 149 / Friday, August 1, 2008 / Notices 45065 

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 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 

at http://www.mrm.mms.gov/Laws_R_D/ 

FRNotices/FRInfColl.htm. We also will 

make copies of the comments available 

for public view, including names and 

addresses of respondents, during regular 

business hours at our offices in 

Lakewood, Colorado. Before including 

your address, phone number, e-mail 

address, or other personal identifying 

information in your comment, be 

advised that your entire comment—

including your personal identifying 

information—may be made publicly 

available at any time. While you can ask 

us in your comment to withhold from 

public view your personal identifying 

information, we cannot guarantee that 

we will be able to do so. 

MMS Information Collection 

Clearance Officer: Arlene Bajusz (202) 

208–7744. 

Dated: July 21, 2008. 

Richard J. Adamski, 

Acting Associate Director for Minerals 

Revenue Management. 

[FR Doc. E8–17730 Filed 7–31–08; 8:45 am] 

BILLING CODE 4310–MR–P 

DEPARTMENT OF THE INTERIOR 

Minerals Management Service 

Request for Comments on the 

Preparation of a 5-Year Outer 

Continental Shelf (OCS) Oil and Gas 

Leasing Program 

AGENCY: Minerals Management Service 

(MMS), Interior. 

ACTION: Request for Comments. 

SUMMARY: Section 18 of the OCS Lands 

Act (43 U.S.C. 1344) requires the 

Department of the Interior to solicit 

information from interested and affected 

parties during the preparation of a 5- 

year OCS oil and gas leasing program. 

The current 5-year program covers the 

period July 2007 to June 30, 2012. The 

Department’s MMS is soliciting 

information on whether to begin a new 

Program for mid-2010 to mid-2015 

(approximate dates) to succeed the 

current one. 

Section 18 requires completion of a 

multi-step process of public 

consultation and analysis before the 

Secretary of the Interior may approve a 

new 5-Year Program. The section 18 

process includes the following required 

steps: This initial solicitation of 

comments; development of a draft 

proposed program, a proposed program, 

a proposed final program; and 

Secretarial approval. If the decision is 

made to prepare a new 5-Year Program, 

the MMS will also prepare appropriate 

NEPA analysis documents. The public 

will have opportunities to comment on 

the draft proposed program, the draft 

EIS or other NEPA documents, and the 

proposed program. This Notice in 

particular requests comments on areas 

that are restricted from leasing by 

Congressional Moratoria but were 

removed from Presidential Withdrawal 

on July 14, 2008. 

DATES: The MMS must receive all 

comments and information by 

September 15, 2008. 

Public Comment Procedure 

The MMS will accept comments in 

one of two formats: By mail or our 

Internet commenting system. Please 

submit your comments using only one 

of these formats, and include full names 

and addresses. Comments submitted by 

other means may not be considered. We 

will not consider anonymous 

comments, and we will make available 

for inspection in their entirety all 

comments submitted by organizations 

and businesses, or by individuals 

identifying themselves as 

representatives of organizations and 

businesses. 

Our practice is to make comments, 

including the names and home 

addresses of respondents, available for 

public review. An individual 

commenter may ask that we withhold 

from the public record, his or her name, 

home address, or both, and we will 

honor such a request to the extent 

allowable by law. If you submit 

comments and desire that we withhold 

such information, you must so state 

prominently at the beginning of your 

submission. 

ADDRESSES: Mail comments and 

information on the program to: Ms. 

Renee Orr, 5-Year Program Manager, 

Minerals Management Service (MS–

4010), 381 Elden Street, Herndon, 

Virginia 20170. Environmental 

comments and information relevant to 

oil and gas development on the OCS 

should be sent to: Mr. James F. Bennett, 

Chief, Branch of Environmental 

Assessment, Minerals Management 

Service (MS–4042), 381 Elden Street, 

Herndon, Virginia 20170. If you submit 

any privileged or proprietary 

information to be treated as 

confidential, please mark the envelope, 

‘‘Contains Confidential Information’’. 

Internet: The MMS will accept 

comments submitted to our electronic 

public comment system. (Public 

Connect). This system can be accessed 

at http://www.mms.gov. We also will 

provide access to information 

concerning the 5-Year Program at the 

MMS Internet Web site (http:// 

www.mms.gov) and copies or summaries 

of comments we receive in response to 

this notice will be available in the MMS 

Public Connect database. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Renee Orr, 5-Year Program Manager, at 

(703) 787–1215. 

SUPPLEMENTARY INFORMATION: The MMS 

requests comments from states; local 

and tribal governments; American 

Indian and Native Alaskan 

organizations; Federal agencies; 

environmental and fish and wildlife 

organizations; the oil and gas industry; 

other interested organizations; and other 

parties on whether to begin the 

preparation of a new 5-Year Program. 

MMS is seeking a wide range of 

information, including marine 

productivity, environmental sensitivity 

and resource assessment. The 5-Year 

Program enables the Federal 

Government, states, industry, and other 

interested parties to plan for steps 

proposed to lead to OCS oil and gas 

lease sales. The Department will make 

a decision on whether to proceed with 

a specific lease sale on the schedule, 

only after meeting all of the applicable 

requirements of the OCS Lands Act, the 

National Environmental Policy Act 

(NEPA), and other statutes. 

The OCS is a significant source of oil 

and gas for the Nation’s energy supply. 

On a per day basis, the OCS currently 

produces about 1.35 million barrels of 

oil and almost 8 billion cubic feet of 

natural gas. This represents 

approximately 27 percent of domestic 

oil production and 15 percent of natural 

gas production. 

The MMS’s oversight and regulatory 

frameworks ensure production and 

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