Source: https://www.federalregister.gov/documents/2005/08/05/05-15532/agency-information-collection-activities-submitted-for-office-of-management-and-budget-omb-review
Timestamp: 2017-09-25 08:54:09
Document Index: 223830911

Matched Legal Cases: ['art 220', 'art 220', 'art 220', '§\u2009220', '§\u2009220', '§\u2009220', '§\u2009220', '§\u2009220', 'art 220', '§\u2009220', '§\u2009220', '§\u2009220', '§\u2009220', '§\u2009220', 'art 220', 'art 260', '§\u2009220', '§\u2009220', '§\u2009220', '§\u2009220', '§\u2009220', '§\u2009220', '§\u2009220', '§\u2009220', 'art 220', '§\u2009220', '§\u2009220', '§\u2009220']

A Notice by the Minerals Management Service on 08/05/2005
Submit written comments on or before September 6, 2005.
45418-45421 (4 pages)
05-15532
SUPPLEMENTARY INFORMATION:Start Printed Page 45419
https://www.federalregister.gov/d/05-15532 https://www.federalregister.gov/d/05-15532
Notice of a revision of a currently approved information collection (OMB Control Number 1010-0073).
To comply with the Paperwork Reduction Act of 1995 (PRA), we are notifying the public that we have submitted to OMB an information collection request (ICR) to renew approval of the paperwork requirements in the regulations under 30 CFR part 220. This notice also provides the public a second opportunity to comment on the paperwork burden of these regulatory requirements. The previous title of this ICR was “30 CFR part 220, Accounting Procedures for Determining Net Profit Share Payment for Outer Continental Shelf Oil and Gas Leases.” The new title of this ICR is “30 CFR part 220—Accounting Procedures for Determining Net Profit Share Payment for Outer Continental Shelf Oil and Gas Leases, § 220.010 NPSL capital account, § 220.030 Maintenance of records, § 220.031 Reporting and payment requirements, § 220.032 Inventories, and § 220.033 Audits.”
Submit written comments by either FAX (202) 395-6566 or e-mail (OIRA_Docket@omb.eop.gov) directly to the Office of Information and Regulatory Affairs, OMB, Attention: Desk Officer for the Department of the Interior (OMB Control Number 1010-0073). Mail your comments to Sharron L. Gebhardt, Lead Regulatory Specialist, Chief of Staff Office, Minerals Management Service, Minerals Revenue Management, P.O. Box 25165, MS 302B2, Denver, Colorado 80225. If you use an overnight courier service or wish to hand-carry your comments, our courier address is Building 85, Room A-614, Denver Federal Center, Denver, Colorado 80225. You may also e-mail your comments to us at mrm.comments@mms.gov. Include the title of the information collection and the OMB Control Number in the “Attention” line of your comment. Also include your name and return address. Submit electronic comments as an ASCII file avoiding the use of special characters and any form of encryption. If you do not receive a confirmation that we have received your e-mail, contact Ms. Gebhardt at (303) 231-3211.
Sharron L. Gebhardt, telephone (303) 231-3211, FAX (303) 231-3781, e-mail sharron.gebhardt@mms.gov. You may also contact Sharron Gebhardt to obtain, at no cost, a copy of the regulations that require the subject collection of information.
Title: 30 CFR part 220—Accounting Procedures for Determining Net Profit Share Payment for Outer Continental Shelf Oil and Gas Leases, § 220.010 NPSL capital account, § 220.030 Maintenance of records, § 220.031 Reporting and payment requirements, § 220.032 Inventories, and § 220.033 Audits.
Applicable citations of the laws are the Federal Oil and Gas Royalty Management Act of 1982 (Pub. L. 97-451—Jan. 12, 1983); the Outer Continental Shelf Lands Act of 1953 (43 U.S.C. 1353) (Pub. L. 212—Aug. 7, 1953, as amended by Pub. L. 93-627—Jan. 3, 1975, Pub. L. 95-372—Sept. 18, 1978, and Pub. L. 98-498—Oct. 19, 1984); and the Mineral Leasing Act (30 U.S.C. 1923). These citations can be viewed on our Web site at http://www.mrm.mms.gov/​Laws_​R_​D/​PublicLawsAMR.htm.
The Code of Federal Regulations (CFR) citations covering the net profit share lease (NPSL) program are located at 30 CFR part 220—Accounting Procedures for Determining Net Profit Share Payment for Outer Continental Shelf Oil and Gas Leases.
When a company or an individual enters into a lease to explore, develop, produce, and dispose of minerals from Federal or Indian lands, that company or individual agrees to pay the lessor a share of the value received from production from the leased lands. The lease creates a business relationship between the lessor and the lessee. The lessee is required to report various kinds of information to the lessor relative to the disposition of the leased minerals. Such information is similar to data reported to private and public mineral interest owners and is generally available within the records of the lessee or others involved in developing, transporting, processing, purchasing, or selling of such minerals. The information collected includes data necessary to ensure royalties or net profit share payments are properly valued and appropriately paid. Proprietary information submitted to MMS under this collection is protected, and no items of a sensitive nature are collected.
To encourage exploration and development of oil and gas leases on submerged Federal lands on the OCS, regulations were promulgated at 30 CFR part 260—Outer Continental Shelf Oil and Gas Leasing. Specific implementation regulations for the NPSL bidding system are promulgated at 30 CFR 260.110(d), covered under ICR 1010-0143 (expires December 31, 2006). The MMS established the NPSL bidding system to properly balance a fair market return to the Federal Government for the lease of its lands, with a fair profit to companies risking their investment capital. The system provides an incentive for early and expeditious exploration and development and provides for sharing the risks by the lessee and the Federal Government. The NPSL bidding system incorporates a fixed capital recovery system as a means through which the lessee recovers costs of exploration and development from production revenues, along with a reasonable return on investment.
When non-operators of an NPSL call for an audit, they must notify MMS. When MMS calls for an audit, the lessee must notify all non-operators on the lease. These requirements are located at 30 CFR 220.033.
We are revising this ICR to add citations related to records management at 30 CFR 220.030(a) and inventories at § 220.032(b). We added a new citation for a PRA-exempt requirement related to audits at § 220.033(e). For clarification, we added § 220.031(c) related to payment requirements. We have not included in our estimates certain requirements performed in the normal course of business, which are considered usual and customary.
Estimated Annual Reporting and Recordkeeping “Hour” Burden: 1,583 hours.
All nine lessees report monthly because all current NPSLs are in producing status. Because the requirements for establishment of capital accounts at § 220.010(a) and capital account annual reporting at § 220.031(a) are necessary only during non-producing status of a lease, we included only one response annually for these requirements, in case a new NPSL is established. The following chart shows the estimated burden hours by CFR section and paragraph: Start Printed Page 45420
§ 220.010 NPSL capital account.
§ 220.030 Maintenance of records
220.030(a) and (b) (a) Each lessee * * * shall establish and maintain such records as are necessary * * * 1 9 9
§ 220.031 Reporting and payment requirements
220.031(a) (a) Each lessee subject to this part shall file an annual report during the period from issuance of the NPSL until the first month in which production revenues are credited to the NPSL capital account * * * 16 1 16
220.031(b) (b) Beginning with the first month in which production revenues are credited to the NPSL capital account, each lessee * * * shall file a report for each NPSL, not later than 60 days following the end of each month * * * 13 108 1,404
220.031(c) (c) Each lessee subject to this Part 220 shall submit, together with the report required * * * any net profit share payment due * * * Burden hours covered under 220.031(b).
220.031(d) (d) Each lessee * * * shall file a report not later than 90 days after each inventory is taken * * * 8 9 72
220.031(e) (e) Each lessee * * * shall file a final report, not later than 60 days following the cessation of production * * * 4 9 36
§ 220.032 Inventories
220.032(b) (b) At reasonable intervals, but at least once every three years, inventories of controllable materiel shall be taken by the lessee. Written notice of intention to take inventory shall be given by the lessee at least 30 days before any inventory is to be taken so that the Director may be represented at the taking of inventory * * * 1 9 9
§ 220.033 Audits
220.033(b)(1) (b)(1) When nonoperators of an NPSL lease call an audit in accordance with the terms of their operating agreement, the Director shall be notified of the audit call * * * 2 9 18
220.033(b)(2) (b)(2) If DOI determines to call for an audit, DOI shall notify the lessee of its audit call and set a time and place for the audit. * * * The lessee shall send copies of the notice to the nonoperators on the lease * * * 2 9 18
220.033(e) (e) Records required to be kept under § 220.030(a) shall be made available for inspection by any authorized agent of DOI * * * The Office of Regulatory Affairs has determined that the audit process is not covered by the PRA because MMS staff asks non-standard questions to resolve exceptions.
Total Burden 164 1,583
To comply with the public consultation process, we published a notice in the Federal Register on Start Printed Page 45421November 16, 2004 (69 FR 67162), 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.
If you wish to comment in response to this notice, you may send your comments to the offices listed under the ADDRESSES section of this notice. The OMB has up to 60 days to approve or disapprove the information collection but may respond after 30 days. Therefore, to ensure maximum consideration, OMB should receive public comments by September 6, 2005.