# 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 e-mail *[email protected].* 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 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:
| 30 CFR | Reporting and recordkeeping requirement | Hour burden | Average number of annual responses | Annual burden hours |
| --- | --- | --- | --- | --- |
| | | | | |
| | | | | |
| 202.101 | | Burden covered under OMB Control Number 1010-0140 (expires 11/30/2009). Burden covered under § 210.52. | | |
| | | | | |
| 202.551(b) | | 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) | | Burden covered under OMB Control Number 1010-0140. Burden covered under § 210.52. | | |
| | | | | |
| | | | | |
| 206.56(b)(2) | | Burden covered under OMB Control Number 1010-0136 (expires 06/30/2009). | | |
| 206.57(a)(1)(i) | | AUDIT PROCESS. See note. | | |
| 206.57(a)(1)(i) | (a) | Burden covered under § 206.57(c)(1)(i) and (iii). | | |
| 206.57(a)(1)(iii) | (a) | AUDIT PROCESS. See note. | | |
| 206.57(a)(2)(i) | (a) | Burden covered under § 206.57(a)(3). | | |
| 206.57(a)(2)(ii) | (a) | 20 | 1 | 20 |
| 206.57(a)(3) | (a) | 40 | 1 | 40 |
| 206.57(b)(1) | (b) | Burden covered under § 206.57(c)(2)(i), and (c)(2)(iii). | | |
| 206.57(b)(1) | (b) | Burden covered under OMB Control Number 1010-0140. Burden covered under § 210.52. | | |
| 206.57(b)(2)(iv) | (b) | 20 | 1 | 20 |
| 206.57(b)(2)(iv)(A) | (b) | 20 | 1 | 20 |
| 206.57(b)(3)(i) | (b) | 40 | 1 | 40 |
| 206.57(b)(3)(ii) | (b) | 20 | 1 | 20 |
| 206.57(b)(4) | (b) | 20 | 1 | 20 |
| 206.57(b)(5) | (b) | 20 | 1 | 20 |
| 206.57(c)(1)(i) | (c) | 4 | 4 | 16 |
| 206.57(c)(1)(iii) | (c) | 4 | 4 | 16 |
| 206.57(c)(1)(iv) | (c) | AUDIT PROCESS. See note. | | |
| 206.57(c)(2)(i) | (c) | 6 | 1 | 6 |
| 206.57(c)(2)(iii) | (c) | 6 | 3 | 18 |
| 206.57(c)(2)(iv) | (c) | Burden covered under § 206.57(c)(2)(i). | | |
| 206.57(c)(2)(v) | (c) | Burden covered under § 206.57(c)(2)(i). | | |
| 206.57(c)(2)(vi) | (c) | AUDIT PROCESS. See note. | | |
| 206.57(c)(4) and (e)(2) | (c) | Burden covered under OMB Control Number 1010-0140. Burden covered under § 210.52. | | |
| 206.59 | | 20 | 1 | 20 |
| 206.61(a) and (b) | | AUDIT PROCESS. See note. | | |
| | | | | |
| | | | | |
| 206.172(b)(1)(ii) | | 4 | 25 | 100 |
| 206.172(e)(6)(i) and (iii) | (e) | 3 | 10 | 30 |
| 206.172(e)(6)(ii) | (e) | Burden covered under OMB Control Number 1010-0140. Burden covered under § 210.52. | | |
| 206.172(f)(1)(ii), (f)(2), and (f)(3) | (f) | 40 | 1 | 40 |
| 206.173(a)(1) | | 2 | 19 | 38 |
| 206.173(a)(2) | (a) | Burden covered under § 206.173(a)(1). | | |
| 206.174(a)(4)(ii) | | 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) | AUDIT PROCESS. See note. | | |
| 206.174(d) | (d)
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)
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) | | 20 | 1 | 20 |
| 206.176(b) | | 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). | | |
| | | | | |
| 206.177(c)(2) and (c)(3) | | 4 | 1 | 4 |
| 206.178(a)(1)(i) | | 1 | 25 | 25 |
| 206.178(a)(1)(iii) | (a) | AUDIT PROCESS. See note. | | |
| 206.178(a)(2)(i) and (ii) | (a) | 20 | 1 | 20 |
| 206.178(a)(3)(i) and (ii) | (a) | 40 | 1 | 40 |
| 206.178(b)(1)(ii) | (b) | 15 | 3 | 45 |
| 206.178(b)(2)(iv) | (b) | 20 | 1 | 20 |
| 206.178(b)(2)(iv)(A) | (b) | 20 | 1 | 20 |
| 206.178(b)(3)(i) | (b) | 40 | 1 | 40 |
| 206.178(b)(3)(ii) | (b) | 20 | 1 | 20 |
| 206.178(b)(5) | (b) | 40 | 1 | 40 |
| 206.178(d)(1) | (d) | AUDIT PROCESS. See note. | | |
| 206.178(d)(2), (e), and (f)(1) | (d) | Burden covered under OMB Control Number 1010-0140. Burden covered under § 210.52. | | |
| | | | | |
| 206.180(a)(1)(i) | | 1 | 15 | 15 |
| 206.180(a)(1)(iii) | (a) | AUDIT PROCESS. See note. | | |
| 206.180(a)(3) | (a) | 40 | 1 | 40 |
| 206.180(b)(1)(ii) | (b) | 20 | 5 | 100 |
| 206.180(b)(2)(iv) | (b) | 20 | 1 | 20 |
| 206.180(b)(2)(iv)(A) | (b) | 20 | 1 | 20 |
| 206.180(b)(3) | (b) | 20 | 1 | 20 |
| 206.180(c)(1) | (c) | AUDIT PROCESS. See note. | | |
| 206.180(c)(2) and (d) | (c) | Burden covered under OMB Control Number 1010-0140. Burden covered under § 210.52. | | |
| 206.181(c) | | 40 | 1 | 40 |
| | | | | |
| | | | | |
| 207.4(b) | | AUDIT PROCESS. See note. | | |
| 207.5 | | AUDIT PROCESS. See note. | | |
| | 140 | 1,074 | | |
*Estimated Annual Reporting and Recordkeeping “Non-hour” Cost Burden:* We have identified no “non-hour” 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. 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.