# Agency Information Collection Activities: Proposed Collection, Comment Request
**AGENCY:**
Office of Natural Resources Revenue, Interior.
**ACTION:**
Notice of an extension of a currently approved information collection.
**SUMMARY:**
To comply with the Paperwork Reduction Act of 1995 (PRA), the Office of Natural Resources Revenue (ONRR) is inviting comments on the renewal of a collection of information that we will submit to the Office of Management and Budget (OMB) for review and approval. The OMB formerly approved this information collection request (ICR) under OMB Control Number 1010-0087. However, OMB approved a new series number and renumbered our ICRs after the Secretary of the U.S. Department of the Interior established ONRR (formerly Minerals Revenue Management, a program under the former Minerals Management Service) by Secretarial Order 3299, effective October 1, 2010. The OMB Control Number for this collection of information now is 1012-0003. In addition, ONRR published a rule, effective October 1, 2010, transferring our regulations from chapter II to chapter XII in title 30 of the Code of Federal Regulations (CFR). This ICR covers the paperwork requirements in the regulations under 30 CFR parts 1227, 1228, and 1229.
**DATES:**
Submit written comments on or before April 2, 2012.
**ADDRESSES:**
You may submit comments on this ICR to ONRR by any of the following methods. Please use “ICR 1012-0003” as an identifier in your comment.
• Electronically go to *http://www.regulations.gov.* In the entry titled “Enter Keyword or ID,” enter ONRR-2011-0025 and then click search. Follow the instructions to submit public comments. The ONRR will post all comments.
• Mail comments to Hyla Hurst, Regulatory Specialist, Office of Natural Resources Revenue, P.O. Box 25165, MS 64000A, Denver, Colorado 80225. Please reference ICR 1012-0003 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 St., Denver, Colorado 80225. Please reference ICR 1012-0003 in your comments.
**FOR FURTHER INFORMATION CONTACT:**
Hyla Hurst, telephone (303) 231-3495, or email *[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 1227, 1228, and 1229, Delegated and Cooperative Activities with States and Indian Tribes.
*OMB Control Number:* 1012-0003.
*Bureau Form Number:* None.
*Abstract:* The Secretary of the U.S. Department of the Interior is responsible for mineral resource development on Federal and Indian lands and the Outer Continental Shelf (OCS). Under the Mineral Leasing Act of 1920, Outer Continental Shelf Lands Act of 1953, Geothermal Steam Act of 1970, and Indian Mineral Development Act of 1982, the Secretary is responsible for managing the production of minerals from Federal and Indian lands and the OCS, collecting royalties and other mineral revenues from lessees who produce minerals, and 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 ONRR performs the mineral revenue management functions and assists the Secretary in carrying out the Department's trust responsibility for Indian lands. Public laws pertaining to mineral revenues are located on our Web site at *http://www.onrr.gov/Laws_R_D/PublicLawsAMR.htm.*
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 in an amount or value of production from the leased lands. The regulations require the lessee to report various kinds of information to the lessor relative to the disposition of the leased minerals. Such information is generally available within the records of the lessee or others involved in developing, transporting, processing, purchasing, or selling of such minerals. The information ONRR collects includes data necessary to ensure that the lessee accurately values and appropriately pays all royalties and other mineral revenues due.
The Federal Oil and Gas Royalty Management Act of 1982 (FOGRMA), as amended by the Federal Oil and Gas Royalty Simplification and Fairness Act of 1996, sections 3, 4, and 8 for Federal lands, authorizes the Secretary to develop delegated and cooperative agreements with states (sect. 205) and Indian tribes (sect. 202) to carry out certain inspection, auditing, investigation, or limited enforcement activities for oil and gas leases in their jurisdiction. The states and Indian tribes are working partners and are an integral part of the overall onshore and offshore compliance effort. The Appropriations Act of 1992 also authorizes the states and Indian tribes to perform the same functions for coal and other solid mineral leases.
This collection of information is necessary in order for states and Indian tribes to conduct audits and related investigations of Federal and Indian oil, gas, coal, any other solid minerals, and geothermal royalty revenues from Federal and tribal leased lands. Relevant parts of the regulations include 30 CFR parts 1227, 1228, and 1229, as described below:
Title 30 CFR part 1227—Delegation to States, provides procedures to delegate certain Federal minerals revenue management functions to states for Federal oil and gas leases. The regulations provide only audit and investigation functions to states for Federal geothermal and solid mineral leases, and leases subject to section 8(g) of the OCS Lands Act, within their state boundaries. To be considered for such delegation, states must submit a written proposal to ONRR, which ONRR must approve. States also must provide periodic accounting documentation to ONRR.
Title 30 CFR part 1228—Cooperative Activities with States and Indian Tribes, provides procedures for Indian tribes to carry out audits and related investigations of their respective leased lands. Indian tribes must submit a written proposal to ONRR in order to enter into a cooperative agreement. The proposal must outline the activities the tribe will undertake and must present evidence that the tribe can meet the standards of the Secretary for the activities to be conducted. The tribes also must submit an annual work plan and budget, as well as quarterly reimbursement vouchers.
Title 30 CFR part 1229—Delegation to States, provides procedures for states to carry out audits and related investigations of leased Indian lands within their respective state boundaries, by permission of the respective Indian tribal councils or individual Indian mineral owners. The state must receive the Secretary's delegation of authority and submit annual audit work plans detailing its audits and related investigations, annual budgets, and quarterly reimbursement vouchers. The state also must maintain records.
The ONRR protects proprietary information the states and tribes submit under this collection. We do not collect items of a sensitive nature. States and tribes must respond in order to obtain the benefit of entering into a cooperative agreement with the Secretary.
*Frequency of Response:* Varies based on the function performed.
*Estimated Number and Description of Respondents:* 10 states and 6 Indian tribes.
*Estimated Annual Reporting and Recordkeeping “Hour” Burden:* 5,531 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 Section | Reporting and recordkeeping requirements | Hour burden per response | Number of | Annual burden hours |
| --- | --- | --- | --- | --- |
| | | | | |
| | | | | |
| 1227.103; 107; 109; 110(a-b)(1)); 110(c-e); 111(a-b); 805 | What must a State's delegation proposal contain? | 200 | 1 | 200 |
| | | | | |
| 1227.110(b)(2) | If you want to change the terms of your delegation agreement for the renewal period, you must submit a new delegation proposal under this part | 16 | 11 | 176 |
| | | | | |
| | | | | |
| 1227.112(d, e) | What compensation will a State receive to perform delegated functions? | 4 | 64 | 256 |
| | | | | |
| 1227.200(a-d) | What are a State's general responsibilities if it accepts a delegation? | 200 | 10 | 2,000 |
| 1227.200(e); 801(a); 804 | (e) Provide reports to ONRR about your activities under your delegated functions * * * At a minimum, you must provide periodic statistical reports to ONRR summarizing the activities you carried out | 3 | 44 | 132 |
| 1227.200(f); 401(e); 601(d) | (f) Assist ONRR in maintaining adequate reference, royalty, and production databases | 1 | 250 | 250 |
| 1227.200(g); 301(e) | (g) Develop annual work plans | 60 | 10 | 600 |
| 1227.200(h) | (h) Help ONRR respond to requests for information from other Federal agencies, Congress, and the public | 8 | 10 | 80 |
| 1227.400(a)(4) and (a)(6); 401(d); 501(c) | What functions may a State perform in processing production reports or royalty reports? | 250 | 1 | 250 |
| 1227.400(c) | (c) You must provide ONRR with a copy of any exceptions from reporting and payment requirements for marginal properties and any alternative royalty and payment requirements for unit agreements and communitization agreements you approve | 12 | 1 | 12 |
| 1227.601(c) | What are a State's responsibilities if it performs automated verification? | 10 | 1 | 10 |
| | | | | |
| Subtotal Burden for 30 CFR part 1227 | | | 403 | 3,966 |
| | | | | |
| | | | | |
| 1228.100(a) and (b); 101(c); 107(b) | Entering into an agreement | 200 | 1 | 200 |
| 1228.101(a) | Terms of agreement | 15 | 6 | 90 |
| 1228.101(d) | (d) * * * Indian tribe will be given 60 days to respond to the notice of deficiencies and to provide a plan for correction of those deficiencies | 80 | 1 | 80 |
| 1228.103(a) and (b) | Maintenance of records | 120 | 6 | 720 |
| 1228.105(a)(1) and (a)(2) | Funding of cooperative agreements | 60 | 6 | 360 |
| 1228.105(c) | (c) * * * Indian tribe shall submit a voucher for reimbursement of eligible costs incurred within 30 days of the end of each calendar quarter. * * * Indian tribe must provide the Department a summary of costs incurred, for which * * * Indian tribe is seeking reimbursement, with the voucher | 4 | 24 | 96 |
| Subtotal Burden for 30 CFR part 1228 | | | 44 | 1,546 |
| | | | | |
| | | | | |
| | | | | |
| 1229.100(a)(1) and (a)(2) | Authorities and responsibilities subject to delegation | 1 | 1 | 1 |
| 1229.101 (a) and (d) | Petition for delegation | 1 | 1 | 1 |
| 1229.102(c) | Fact-finding and hearings | 1 | 1 | 1 |
| 1229.103(c) | Duration of delegations; termination of delegations | 1 | 1 | 1 |
| 1229.105 | Evidence of Indian agreement to delegation | 1 | 1 | 1 |
| 1229.106 | Withdrawal of Indian lands from delegated authority. | 1 | 1 | 1 |
| 1229.109(a) | Reimbursement for costs incurred by a State under the delegation of authority | 1 | 1 | 1 |
| 1229.109(b) | (b) The State shall submit a voucher for reimbursement of costs incurred within 30 days of the end of each calendar quarter | 1 | 4 | 4 |
| | | | | |
| 1229.120 | Obtaining regulatory and policy guidance | 1 | 1 | 1 |
| 1229.121(a-d) | Recordkeeping requirements | 1 | 1 | 1 |
| 1229.122(a-c) | Coordination of audit activities | 1 | 1 | 1 |
| 1229.123 (b)(3)(i) | Standards for audit activities | 1 | 1 | 1 |
| 1229.124 | Documentation standards | 1 | 1 | 1 |
| 1229.125(a) and (b) | Preparation and issuance of enforcement documents | 1 | 1 | 1 |
| 1229.126(a) and (b) | Appeals | 1 | 1 | 1 |
| 1229.127 | Reports from States | 1 | 1 | 1 |
| Subtotal Burden for 30 CFR part 229 | | | 19 | 19 |
| TOTAL BURDEN | | | 466 | 5,531 |
*Estimated Annual Reporting and Recordkeeping “Non-hour Cost” Burden:* We have identified no “non-hour cost” burden associated with this collection of information.
*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 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.
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. We also will post the ICR on our Web site at *http://www.onrr.gov/Laws_R_D/FRNotices/ICR0087.htm.*
*Public Comment Policy:* We will post all comments, including names and addresses of respondents, at *http://www.regulations.gov.* Before including your address, phone number, email 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.
*Information Collection Clearance Officer:* Laura Dorey (202) 208-2654.
Dated: January 26, 2012.
Gregory J. Gould,
Director, Office of Natural Resources Revenue.