Source: https://www.federalregister.gov/documents/2009/09/09/E9-21708/mms-information-collection-activity-1010-0071-relief-or-reduction-in-royalty-rates-extension-of-a
Timestamp: 2018-08-18 05:24:39
Document Index: 322559020

Matched Legal Cases: ['art 203', 'art 203', 'arts 203', 'art 2', '§\u2009203', '§\u2009203', 'art 203']

Federal Register :: MMS Information Collection Activity: 1010-0071, Relief or Reduction in Royalty Rates, Extension of a Collection; Submitted for Office of Management and Budget (OMB) Review; Comment Request
Submit written comments by October 9, 2009.
74 FR 46448
46448-46451 (4 pages)
E9-21708
https://www.federalregister.gov/d/E9-21708 https://www.federalregister.gov/d/E9-21708
You should submit comments directly to the Office of Information and Regulatory Affairs, OMB, Attention: Desk Officer for the Department of the Interior (1010-0071), either by fax (202) 395-5806 or e-mail (OIRA_DOCKET@omb.eop.gov). Please also send a copy to MMS by either of the following methods:
Electronically: Go to http://www.regulations.gov. Under the tab More Search Options, click Advanced Docket Search, then select Minerals Management Service from the agency drop-down menu, then click submit. In the Docket ID column, select MMS-2009-OMM-0004 to submit public comments and to view supporting and related materials available. 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. The MMS will post all comments.
Mail or hand-carry comments to the Department of the Interior; Minerals Management Service; Attention: Cheryl Blundon; 381 Elden Street, MS-4024; Herndon, Virginia 20170-4817. Please reference Information Collection 1010-0071 in your subject line and include your name and address.
In addition, Federal policy and statute require us to recover the cost of services that confer special benefits to identifiable non-Federal recipients. The Independent Offices Appropriation Act (31 U.S.C. 9701), Office of Management and Budget (OMB) Circular A-25, and the Omnibus Appropriations Bill (Pub. L. 104-133 110 Stat. 1321, April 26, 1996) authorize the Minerals Management Service (MMS) to collect these fees to reimburse us for the cost to process applications or assessments.
Regulations at 30 CFR part 203 implement these statutes and policy and require respondents to pay a fee to request royalty relief. Section 203.3 states that, “We will specify the necessary fees for each of the types of royalty-relief applications and possible MMS audits in a Notice to Lessees. We will periodically update the fees to reflect changes in costs as well as provide other information necessary to administer royalty relief.”
Regulations implementing these responsibilities are under 30 CFR part 203. Responses are mandatory or are required to obtain or retain a benefit. No questions of a sensitive nature are asked. The MMS protects information considered proprietary according to 30 CFR parts 203.63 and 250, and the Freedom of Information Act (5 U.S.C. 552) and its implementing regulations (43 CFR part 2).
Description of Respondents: Potential respondents comprise Federal OCS oil and gas lessees and/or operators. It should be noted that not all of the Start Printed Page 46449potential respondents will submit information in any given year and some may submit multiple times.
Estimated Reporting and Recordkeeping Hour Burden: The estimated annual hour burden for this information collection is a total of 2,635 hours. The following chart details the individual components and estimated hour burdens. In calculating the burdens, we assumed that respondents perform certain requirements in the normal course of their activities. We consider these to be usual and customary and took that into account in estimating the burden.
2(b); 3; 4; 70 These sections contain general references to submitting reports, applications, requests, copies, demonstrating qualifications, for MMS approval—burdens covered under specific requirements. 0
35(d); 44(e) Request to extend the deadline for beginning production with required supporting documentation 4 2 requests 8
35(a); 44(a); 47(a) Notify MMS of intent to begin drilling 1 27 notifications 27
35(c), (d); 44(b), (d), (e) Notify MMS that production has begun, request confirmation of the size of RSV, provide supporting documentation 2 24 notifications 48
46 Provide data from well to confirm and attest well drilled was an unsuccessful certified well with supporting documentation and request supplement 8 4 responses 32
49(b) Notify MMS or decision to exercise option to replace one set of deep gas royalty suspension terms for another set of such terms The MMS SOL requires that this reg text stay for legacy purposes only. Last time any respondent could use was 2004; hence, no burden. 0
Subtotal 59 117
End of Life and Special Royalty Relief*
51; 83; 84 NTL Application—leases that generate earnings that cannot sustain continued production (end-of-life lease); required supporting documentation 100 1 application every 3 years 34 (rounded)
application 1/3 × $8,000 = $2,667 (rounded)* audit 1/3 × $12,500 = $4,167 (rounded)
52 Demonstrate ability to qualify for royalty relief or to re-qualify 1 1 response 1
55 Renounce relief arrangement (end-of-life) (seldom, if ever will be used; minimal burden to prepare letter) 1 1 letter every 3 years 1 (rounded)
80 NTL Application—apart from formal programs for royalty relief for marginal producing lease (Special Case Relief); required supporting documentation 250 1 application every 2 years 125
application 1/2 × $8,000** = $4,000 audit 1/4 × $12,500 = $3,125
80 NTL Application—apart from formal programs for royalty relief for marginal expansion project or marginal non-producing lease (Special Case Relief); required supporting documentation 1,000 1 application every 2 years 500
application 1/2 × $19,500** = $9,750 audit 1/4 × $18,750 = $4,688
3 (rounded) 661
Subtotal $28,397 fees
Start Printed Page 46450
1 CPA report × $45,000 each = $45,000
Subtotal 1 $45,000
61; 62; 64; 65; 71; 83; 85-89; NTL Application—preview assessment (seldom if ever will be used as applicants generally opt for binding determination by MMS instead) and required supporting documentation 900 1 application every 3 years 300
application 1/3 × $28,500 = $9,500
62; 64; 65; 71; 83; 85-89 Application—leases in designated areas of GOM deep water acquired in lease sale before 11/28/95 or after 11/28/00 and are producing (deep water expansion project); required supporting documentation 2,000 1 application every 3 years 667 (rounded)
application 1/3 × $19,500 = $6,500
62; 64; 65; 203.71; 81; 83; 85-89; NTL Application—leases in designated areas of deep water GOM, acquired in lease sale before 11/28/95 or after 11/28/00 that have not produced (pre-act or post-2000 deep water leases); required supporting documentation 2,000 1 application every 3 years 667 (rounded)
application 1/3 × $34,000 = $11,334 (rounded)* audit 1/3 × $37,500 = $12,500
70; 81; 90; 91 Submit fabricator's confirmation report; extension justification 20 1 report every 3 years 7 (rounded)
70; 81; 90; 92; NTL Submit post-production development report; extension justification. # Reserve right to audit (1 audit every 6 years) after production starts to confirm cost estimates of the application 50 1 report* every 3 years 17 (rounded)
# audit 1/6 × $18,750 = $3,125
74; 75; NTL Redetermination and required supporting documentation 500 1 redetermination every 3 years 167 (rounded)
application 1/3 × $16,000 = $5,334 (rounded)*
77 Renounce relief arrangement (deep water) (seldom, if ever will be used; minimal burden to prepare letter) 1 1 letter every 3 years 1 (rounded)
79(a) Request reconsideration of MMS field designation This was a regulatory requirement for leases issued prior to 1995 0
79(c) Request extension of deadline to start construction 2 1 request every 3 years 1 (rounded)
83; NTL Application—short form to add or assign pre-Act lease and required supporting documentation 40 1 application every 3 years 14 (rounded)
application 1/3 × $1,000 = $334 (rounded)
3 (rounded) 1,841
Subtotal $48,627
Start Printed Page 46451
81(d) Retain supporting cost records for post-production development/fabrication reports (records retained as usual/customary business practice; minimal burden to make available at MMS request) 8 2 recordkeepers 16
68 2,635
Total Annual Burden $122,024 Fees
Note: Applications include numerous items such as: Transmittal letters, letters of request, modifications to applications, reapplications, etc.
Estimated Reporting and Recordkeeping Non-Hour Cost Burden: There are two non-hour costs associated with this information collection. The estimated non-hour cost burden is $122,024. This estimate is based on:
(a) Application and audit fees. The total annual estimated cost burden for these fees is $77,024 (refer to burden chart).
(b) Cost of reports prepared by independent certified public accountants. Under § 203.81, a report prepared by an independent certified public accountant must accompany the application and post-production report (expansion project, short form, and preview assessment applications are excluded). The OCS Lands Act applications will require this report only once; the DWRRA applications will require this report at two stages—with the application and post-production development report for successful applicants. MMS estimates approximately one submission each year at an average cost of $45,000 per report, for a total estimated annual cost burden of $45,000.
The total of the two burdens is estimated at $122,024.
To comply with the public consultation process, on April 22, 2009, we published a Federal Register notice (74 FR 18393) announcing that we would submit this ICR to OMB for approval. The notice provided the required 60-day comment period. In addition, § 203.82 provides the OMB control number for the information collection requirements imposed by the 30 CFR part 203 regulations. The regulation also informs the public that they may comment at any time on the collections of information and provides the address to which they should send comments. We have received no comments in response to these efforts.
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 October 9, 2009.
[FR Doc. E9-21708 Filed 9-8-09; 8:45 am]