Source: https://www.federalregister.gov/articles/2009/03/10/E9-5077/agency-information-collection-activities-submitted-for-office-of-management-and-budget-review
Timestamp: 2015-03-06 17:38:10
Document Index: 268077975

Matched Legal Cases: ['§ 202', '§ 202', '§ 204', '§ 204', '§ 204', 'art?\n204', '§ 204', 'art?\n204', '§ 204', '§ 204', '§ 204', '§ 204', '§ 204', '§ 206', '§ 206', '§ 206', '§ 206', '§ 206', '§ 206', 'art?\n206', '§ 206', '§ 206', '§ 206', '§ 206', '§ 206', '§ 206', '§ 206', '§ 206', '§ 206', '§ 206', '§ 206', '§ 206', '§ 206', '§ 206']

Federal Register | Agency Information Collection Activities: Submitted for Office of Management and Budget Review; Comment Request
Dates: Submit written comments on or before April 9, 2009.
Comments Close: 04/09/2009
Action: Notice of an extension of a currently approved information collection (OMB Control Number 1010-0136).
-10275 (11 pages)
Shorter URL: https://federalregister.gov/a/E9-5077 Action
Notice Of An Extension Of A Currently Approved Information Collection (Omb Control Number 1010 0136).
Federal Oil and Gas Valuation Regulations Back to Top
Regulatory Allowance Limit for Processing: When gas is processed for the recovery of gas plant products, lessees may claim a processing allowance. Regulations establish the allowable limit on processing allowance deductions at 662/3percent of the value of each gas plant product.
Lessees may request to exceed regulatory limitations. Upon proper application from the lessee, we may approve an oil or gas transportation allowance in excess of 50 percent or a gas processing allowance in excess of 662/3percent on Federal 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. On this form, lessees provide the data necessary to identify the properties and time periods for which the lessee is requesting to exceed the regulatory limits. The MMS verifies that these costs actually exceed regulatory allowance limits. Companies report allowances on Form MMS-4393 for both Federal and Indian leases. Burden hours for completion of Form MMS-4393 for Indian leases are included in OMB Control Number 1010-0103.
Accounting and Auditing Relief for Marginal Properties Back to Top
§ 202.101Standards for reporting and paying royalties.
202.101 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.
§ 202.152Standards for reporting and paying royalties on gas.
202.152(a) and (b)
202.152(a)(1) If you are responsible for reporting production or royalties you must:
§ 204.202What is the cumulative royalty reports and payments relief option?
204.202(b)(1)
204.202(b) To use the cumulative royalty reports and payments relief option, you must do all of the following:
204.202(b)(2) and (b)(3)
204.202(b)(2) Submit your royalty report and payment * * * by the end of February of the year following the calendar year for which you reported annually * * * If you have an estimated payment on file, you must submit your royalty report and payment by the end of March of the year following the calendar year for which you reported annually; (3) Use the sales month prior to the month that you submit your annual report and payment * * * for the entire previous calendar year's production for which you are paying annually.
204.202(b)(4), (b)(5), (c), (d)(1), (d)(2), (e)(1), and (e)(2)
204.202(b) To use the cumulative royalty reports and payments relief option, you must:
§ 204.203What is the other relief option?
204.203(b), 204.205(a) and (b), and 204.206(a)(3)(i) and (b)(1)
204.203(b) You must request approval from MMS * * * before taking relief under this option.
§ 204.208May a State decide that it will or will not allow one or both of the relief options under this subpart?
204.208 (c)(1), (d)(1), and (e)
204.208(c) If a State decides * * * that it will or will not allow one or both of the relief options * * * within 30 days * * * the State must:
§ 204.209What if a property ceases to qualify for relief obtained under this subpart?
204.209(b)
204.209(b) If a property is no longer eligible for relief * * * the relief for the property terminates as of December 31 of that calendar year. You must notify MMS in writing by December 31 that the relief for the property has terminated.
§ 204.210What if a property is approved as part of a nonqualifying agreement?
204.210(c) and (d)
204.210(c) * * * the volumes on which you report and pay royalty * * * must be amended to reflect all volumes produced on or allocated to your lease under the nonqualifying agreement as modified by BLM * * * Report and pay royalties for your production using the procedures in § 204.202(b).
(d) If you owe additional royalties based on the retroactive agreement approval and do not pay your royalty by the date due in § 204.202(b), you will owe late payment interest determined under 30 CFR 218.54 from the date your payment was due under § 204.202(b)(2) until the date MMS receives it.
§ 204.214(b)Is minimum royalty due on a property for which I took relief?
204.214(b)(1) and (b)(2)
204.214(b) If you pay minimum royalty on production from a marginal property during a calendar year for which you are taking cumulative royalty reports and payment relief, and:
Accounting and Auditing Relief Subtotal
§ 206.102How do I calculate royalty value for oil that I or my affiliate sell(s) under an arm's-length contract?
206.102(e)(1)
206.102(e) If you value oil under paragraph (a) of this section: (1) MMS may require you to certify that your or your affiliate's arm's-length contract provisions include all of the consideration the buyer must pay, either directly or indirectly, for the oil.
§ 206.103How do I value oil that is not sold under an arm's-length contract?
206.103(a)
206.103 This section explains how to value oil that you may not value under § 206.102 or that elect under § 206.102(d) to value under this section. First determine whether paragraph (a), (b), or (c) of this section applies to production from your lease, or whether you may apply paragraph (d) or (e) with MMS approval.
206.103(a)(4)
206.103(a)(4) After you select an MMS-approved publication, you may not select a different publication more often than once every 2 years,
206.103(b)(1)
206.103(b) Production from leases in the Rocky Mountain Region. * * * (1) If you have an MMS-approved tendering program, you must value oil.
206.103(b)(1)(ii)
206.103(b)(1)(ii) If you do not have an MMS-approved tendering program, you may elect to value your oil under either paragraph (b)(2) or (b)(3) of this section.
206.103(b)(4)
206.103(b)(4) If you demonstrate to MMS's satisfaction that paragraphs (b)(1) through (b)(3) of this section result in an unreasonable value for your production as a result of circumstances regarding that production, the MMS Director may establish an alternative valuation method.
206.103(c)(1)
206.103(c) Production from leases not located in California, Alaska or the Rocky Mountain Region. (1) Value is the NYMEX price, plus the roll, adjusted for applicable location and quality differentials and transportation costs under § 206.112.
206.103(e)(1) and (e)(2)
206.103(e) Production delivered to your refinery and the NYMEX price or ANS spot price is an unreasonable value.
§ 206.105What records must I keep to support my calculations of value under this subpart?
206.105 If you determine the value of your oil under this subpart, you must retain all data relevant to the determination of royalty value.
§ 206.107How do I request a value determination?
206.107(a)
206.107(a) You may request a value determination from MMS.
§ 206.109When may I take a transportation allowance in determining value?
206.109(c)(2)
206.109(c) Limits on transportation allowances. (2) You may ask MMS to approve a transportation allowance in excess of the limitation in paragraph (c)(1) of this section * * * 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.
§ 206.110How do I determine a transportation allowance under an arm's-length transportation contract?
206.110(a)
206.110(a) * * * You must be able to demonstrate that you or your affiliate's contract is at arm's length.
206.110(d)(3)
206.110(d) If your arm's-length transportation contract includes more than one liquid product, and the transportation costs attributable to each product cannot be determined * * * (3) You may propose to MMS a cost allocation method.
206.110(e)
206.110(e) If your 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, then you must propose an allocation procedure to MMS.
206.110(e)(1) and (e)(2)
206.110(e)(1) * * * If MMS rejects your cost allocation, you must amend your Form MMS-2014.
206.110(g)(2)
206.110(g) If your arm's-length sales contract includes a provision reducing the contract price by a transportation factor, * * *
§ 206.111How do I determine a transportation allowance if I do not have an arm's-length transportation contract or arm's-length tariff?
206.111(g)
206.111(g) To compute depreciation, you may elect to use either * * * After you make an election, you may not change methods without MMS approval.
206.111(k)(2)
206.111(k)(2) You may propose to MMS a cost allocation method on the basis of the values.
206.111(l)(1) and (l)(3)
206.111(l)(1) Where you transport both gaseous and liquid products through the same transportation system, you must propose a cost allocation procedure to MMS * * * (3) You must submit your initial proposal, including all available data, within 3 months after first claiming the allocated deductions on Form MMS-2014.
206.111(l)(2)
206.111(l)(2) * * * If MMS rejects your cost allocation, you must amend your Form MMS-2104 for the months that you used the rejected method and pay any additional royalty and interest due.
§ 206.112What adjustments and transportation allowances apply when I value oil production from my lease using NYMEX prices or ANS spot prices?
206.112(a)(1)(ii)
206.112(a)(1)(ii) * * * under an exchange agreement that is not at arm's length, you must obtain approval from MMS for a location and quality differential.
206.112(a)(1)(ii) * * * If MMS prescribes a different differential, you must apply * * * You must pay any additional royalties owed * * * plus the late payment interest from the original royalty due date, or you may report a credit.
206.112(a)(3) and (a)(4)
206.112(a)(3) If you transport or exchange at arm's length (or both transport and exchange) at least 20 percent, but not all, of your oil produced from the lease to a market center, determine the adjustment between the lease and the market center for the oil that is not transported or exchanged (or both transported and exchanged) to or through a market center as follows:
206.112(b)(3)
206.112(b)(3) * * * you may propose an alternative differential to MMS * * * If MMS prescribes a different differential * * * You must pay any additional royalties owed * * * plus the late payment interest from the original royalty due date, or you may report a credit.
206.112(c)(2)
206.112(c)(2) * * * If quality bank adjustments do not incorporate or provide for adjustments for sulfur content, you may make sulfur adjustments, based on the quality of the representative crude oil at the market center, of 5.0 cents per one-tenth percent difference in sulfur content, unless MMS approves a higher adjustment.
§ 206.114What are my reporting requirements under an arm's-length transportation contract?
206.114 You or your affiliate must use a separate entry on Form MMS-2014 to notify MMS of an allowance based on transportation costs you or your affiliate incur.
MMS may require you or your affiliate to submit arm's-length transportation contracts, production agreements, operating agreements, and related documents.
§ 206.115What are my reporting requirements under a non-arm's-length transportation arrangement?
206.115(a)
206.115(a) You or your affiliate must use a separate entry on Form MMS-2014 to notify MMS of an allowance based on transportation costs you or your affiliate incur.
206.115(c)
206.115(c) MMS may require you or your affiliate to submit all data used to calculate the allowance deduction.
§ 206.152Valuation standards-unprocessed gas.
206.152(b)(1)(i) and (b)(1)(iii)
206.152(b)(1)(i) * * * The lessee shall have the burden of demonstrating that its contract is arm's-length (iii) * * * When MMS determines that the value may be unreasonable, MMS will notify the lessee and give the lessee an opportunity to provide written information justifying the lessee's value.
206.152(b)(2)
206.152(b)(2) * * * The lessee must request a value determination in accordance with paragraph (g) of this section for gas sold pursuant to a warranty contract;
206.152(b)(3)
206.152(b)(3) MMS may require a lessee to certify that its arm's-length contract provisions include all of the consideration to be paid by the buyer, either directly or indirectly, for the gas.
206.152(e)(1)
206.152(e)(1) Where the value is determined pursuant to paragraph (c) of this section, the lessee shall retain all data relevant to the determination of royalty value.
206.152(e)(2)
206.152(e)(2) Any Federal lessee will make available upon request to the authorized MMS or State representatives, to the Office of the Inspector General of the department of the Interior, or other person authorized to receive such information, arm's-length sales and volume data for like-quality production sold, purchased or otherwise obtained by the lessee from the field or area or from nearby fields or areas.
206.152(e)(3)
206.152(e)(3) A lessee shall notify MMS if it has determined value pursuant to paragraph (c)(2) or (c)(3) of this section.
206.152(g)
206.152(g) The lessee may request a value determination from MMS * * * The lessee shall submit all available data relevant to its proposal.
§ 206.153Valuation standards-processed gas.
206.153(b)(1)(i) and (b)(1)(iii)
206.153(b)(1)(i) * * * The lessee shall have the burden of demonstrating that its contract is arm's-length.
206.153(b)(2)
206.153(b)(2) * * * The lessee must request a value determination in accordance with paragraph (g) of this section for gas sold pursuant to a warranty contract;
206.153(b)(3)
206.153(b)(3) MMS may require a lessee to certify that its arm's-length contract provisions include all of the consideration to be paid by the buyer, either directly or indirectly, for the residue gas or gas plant product.
206.153(e)(1)
206.153(e)(1) Where the value is determined pursuant to paragraph (c) of this section, the lessee shall retain all data relevant to the determination of royalty value.
206.153(e)(2)
206.153(e)(2) Any Federal lessee will make available upon request to the authorized MMS or State representatives, to the Office of the Inspector General of the Department of the Interior, or other persons authorized to receive such information, arm's-length sales and volume data for like-quality residue gas and gas plant products sold, purchased or otherwise obtained by the lessee from the same processing plant or from nearby processing plants.
206.153(e)(3)
206.153(e)(2) A lessee shall notify MMS if it has determined any value pursuant to paragraph (c)(2) or (c)(3) of this section.
206.153(g)
206.153(g) The lessee may request a value determination from MMS * * * The lessee shall submit all available data relevant to its proposal.
§ 206.154Determination of quantities and qualities for computing royalties.
206.154(c)(4)
206.154(c)(4) * * * A lessee may request MMS approval of other methods for determining the quantity of residue gas and gas plant products allocable to each lease.
§ 206.156Transportation allowances—general.
206.156(c)(3)
206.156(c)(3) Upon request of a lessee, MMS may approve a transportation allowance deduction in excess of the limitation prescribed by paragraphs (c)(1) and (c)(2) of this section * * * An application for exception (using Form MMS-4393, Request to Exceed Regulatory Allowance Limitation) shall contain all relevant and supporting documentation necessary for MMS to make a determination.
§ 206.157Determination of transportation allowances.
206.157(a)(1)(i)
206.157(a) Arm's-length transportation contracts. (1)(i) * * * The lessee shall have the burden of demonstrating that its contract is arm's-length.
The lessee must claim a transportation allowance by reporting it on a separate line entry on the Form MMS-2014.
206.157(a)(1)(iii)
206.157(a)(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
206.157(a)(2)(ii)
206.157(a)(2)(ii) * * * the lessee may propose to MMS a cost allocation method on the basis of the values of the products transported.
206.157(a)(3)
206.157(a)(3) If an arm's-length transportation contract includes both gaseous and liquid products and the transportation costs attributable to each cannot be determined from the contract, the lessee shall propose an allocation procedure to MMS * * * The lessee shall submit all relevant data to support its proposal.
206.157(a)(5)
206.157(a)(5) * * * The transportation factor may not exceed 50 percent of the base price of the product without MMS approval.
206.157(b)(1)
206.157(b) Non-arm's-length or no contract. (1) The lessee must claim a transportation allowance by reporting it on a separate line entry on the Form MMS-2014.
206.157(b)(2)(iv) and (b)(2)(iv)(A)
206.157(b)(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 the MMS. (A) After an election is made, the lessee may not change methods without MMS approval.
206.157(b)(3)(i)
206.157(b)(3)(i) * * * Except as provided in this paragraph, the lessee may not take an allowance for transporting a product which is not royalty bearing without MMS approval.
206.157(b)(3)(ii)
206.157(b)(3)(ii) * * * the lessee may propose to the MMS a cost allocation method on the basis of the values of the products transported.
206.157(b)(4)
206.157(b)(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 relevant data to support its proposal.
206.157(b)(5)
206.157(b)(5) You may apply for an exception from the requirement to compute actual costs under paragraphs (b)(1) through (b)(4) of this section.
206.157(c)(1)(i)
206.157(c) Reporting Requirements. (1) Arm's-length contracts. (i) You must use a separate entry on Form MMS-2014 to notify MMS of a transportation allowance.
206.157(c)(1)(ii)
206.157(c)(1)(ii) The MMS may require you to submit arm's-length transportation contracts, production agreements, operating agreements, and related documents.
206.157(c)(2)(i)
206.157(c)(2) Non-arm's-length or no contract. (i) You must use a separate entry on Form MMS-2014 to notify MMS of a transportation allowance.
206.157(c)(2)(iii)
206.157(c)(2)(iii) The MMS may require you to submit all data used to calculate the allowance deduction.
206.157(e)(2), (e)(3), and (f)(1)
206.157(e) Adjustments. (2) For lessees transporting production from onshore Federal leases, the lessee must submit a corrected Form MMS-2014 to reflect actual costs, together with any payment, in accordance with instructions provided by MMS.
§ 206.158Processing allowances-general.
206.158(c)(3)
206.158(c)(3) Upon request of a lessee, MMS may approve a processing allowance in excess of the limitation prescribed by paragraph (c)(2) of this section * * * An application for exception (using Form MMS-4393, Request to Exceed Regulatory Allowance Limitation) shall contain all relevant and supporting documentation for MMS to make a determination. * * *
206.158(d)(2)(i)
206.158(d)(2)(i) If the lessee incurs extraordinary costs for processing gas production from a gas production operation, it may apply to MMS for an allowance for those costs.
206.158(d)(2)(ii)
206.158(d)(2)(ii) * * * to retain the authority to deduct the allowance the lessee must report the deduction to MMS in a form and manner prescribed by MMS.
§ 206.159Determination of processing allowances.
206.159(a)(1)(i)
206.159(a) Arm's-length processing contracts.(1)(i) * * * The lessee shall have the burden of demonstrating that its contract is arm's-length.
The lessee must claim a processing allowance by reporting it on a separate line entry on the Form MMS-2014.
206.159(a)(1)(iii)
206.159(a)(1)(iii) * * * When MMS determines that the value of the processing may be unreasonable, MMS will notify the lessee and give the lessee an opportunity to provide written information justifying the lessee's processing costs.
206.159(a)(3)
206.159(a)(3) If an 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, the lessee shall propose an allocation procedure to MMS. * * * The lessee shall submit all relevant data to support its proposal.
206.159(b)(1)
206.159(b) Non-arm's-length or no contract. (1) * * * The lessee must claim a processing allowance by reflecting it as a separate line entry on the Form MMS-2014.
206.159(b)(2)(iv) and (b)(2)(iv)(A)
206.159(b)(2)(iv) * * * When a lessee has elected to use either method for a processing plant, the lessee may not later elect to change to the alternative without approval of the MMS.(A) * * * After an election is made, the lessee may not change methods without MMS approval.
206.159(b)(4)
206.159(b)(4) A lessee may apply to MMS for an exception from the requirements that it compute actual costs in accordance with paragraphs (b)(1) through (b)(3) of this section.
206.159(c)(1)(i)
206.159(c) Reporting requirements-(1) Arm's-length contracts. (i) The lessee must notify MMS of an allowance based on incurred costs by using a separate line entry on the Form MMS-2014.
206.159(c)(1)(ii)
206.159(c)(1)(ii) The MMS may require that a lessee submit arm's-length processing contracts and related documents.
206.159(c)(2)(i)
206.159(c)(2) Non-arm's-length or no contract.(i) The lessee must notify MMS of an allowance based on incurred costs by using a separate line entry on the Form MMS-2014.
206.159(c)(2)(iii)
206.159(c)(2)(iii) Upon request by MMS, the lessee shall submit all data used to prepare the allowance deduction.
206.159(e)(2) and (e)(3)
206.159(e) Adjustments.
Oil and Gas Valuation Subtotal
Comments: Section 3506(c)(2)(A) of the PRA requires each agency to “* * * provide 60-day notice in the Federal Register* * * 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.
To comply with the public consultation process, we published a notice in the Federal Register on August 15, 2008 (73 FR 47969), announcing that we would submit this ICR to OMB for approval. The notice provided the required 60-day comment period. We received no comments in response to the notice.
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 post all comments, including names and addresses of respondents, at http://www.regulations.gov. 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.