# Agency Information Collection Activities; Submission to the Office of Management and Budget for Review and Approval; 30 CFR Parts 1227, 1228, and 1229, Delegated and Cooperative Activities With States and Indian Tribes
**AGENCY:**
Office of the Secretary, Office of Natural Resources Revenue, Interior.
**ACTION:**
Notice of information collection; request for comment.
**SUMMARY:**
In accordance with the Paperwork Reduction Act of 1995, we, the Office of Natural Resources Revenue (ONRR), are proposing to renew an information collection.
**DATES:**
Interested persons are invited to submit comments on or before November 23, 2018.
**ADDRESSES:**
Send written comments on this information collection request (ICR) to the Office of Management and Budget's Desk Officer for the Department of the Interior by email at *[email protected];* or via facsimile to (202) 395-5806. Please provide a copy of your comments to Mr. Luis Aguilar, Regulatory Specialist, ONRR, P.O. Box 25165, MS 61030A, Denver, Colorado 80225-0165, or email to *[email protected].* Please reference OMB Control Number 1012-0003 in your comments.
**FOR FURTHER INFORMATION CONTACT:**
For questions on technical issues, contact Peter Hanley, STRAC Administration, ONRR, telephone (303) 231-3721, or email *[email protected].* For other questions, contact Mr. Luis Aguilar, telephone (303) 231-3418, or email *[email protected].* You may also contact Mr. Aguilar to obtain copies (free of charge) of (1) the ICR, (2) any associated forms, and (3) the regulations that require the subject collection of information. You may also review the information collection request online at *http://www.reginfo.gov/public/do/PRAMain.*
**SUPPLEMENTARY INFORMATION:**
In accordance with the Paperwork Reduction Act of 1995, we provide the general public and other Federal agencies with an opportunity to comment on new, proposed, revised, and continuing collections of information. This helps us assess the impact of our information collection requirements and minimize the public's reporting burden. It also helps the public understand our information collection requirements and provide the requested data in the desired format.
A *Federal Register* notice with a 60-day public comment period soliciting comments on this collection of information was published on June 5, 2018 (83 FR 26081); no comments were received.
We are again soliciting comments on the proposed ICR that is described below. We are especially interested in public comment addressing the following issues: (1) Is the collection necessary to the proper functions of the ONRR; (2) will this information be processed and used in a timely manner; (3) is the estimate of burden accurate; (4) how might the ONRR enhance the quality, utility, and clarity of the information to be collected; and (5) how might the ONRR minimize the burden of this collection on the respondents, including through the use of information technology.
Comments that you submit in response to this notice are a matter of public record. Before including your address, phone number, email address, or other personal identifying information in your comment, you should be aware 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 your personal identifying information from public review, we cannot guarantee that we will be able to do so.
*Abstract:* The Secretary of the Interior is responsible for mineral resource development on Federal and Indian lands and the Outer Continental Shelf (OCS). Under various laws, the Secretary's responsibility is to manage mineral resources production on Federal and Indian lands and the OCS, collect the royalties and other mineral revenues due, and distribute the funds collected. ONRR performs the royalty management functions and assists the Secretary in carrying out the Department's responsibilities. We have posted those laws pertaining to mineral leases on Federal and Indian lands and the OCS at *http://www.onrr.gov/Laws_R_D/PubLaws/default.htm.*
**General Information**
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 lessee is required to report various kinds of information to the lessor relative to the disposition of the 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 that ONRR collects includes data necessary to ensure that the lessee accurately values the production and appropriately pays all royalties and other mineral revenues due.
The Federal Oil and Gas Royalty Management Act of 1982 (FOGRMA), as amended by sections 3, 4, and 8 [for Federal lands] of the Federal Oil and Gas Royalty Simplification and Fairness Act of 1996, authorizes the Secretary to develop delegated and cooperative agreements with States (section 205) and Indian Tribes (section 202) to carry out certain inspection, auditing, investigation, and limited enforcement activities for oil and gas leases in their jurisdictions. The States and Indian Tribes are working partners with ONRR 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.
**Information Collections**
This Information Collection Request (ICR) covers the paperwork requirements in the regulations under title 30, *Code of Federal Regulations* (CFR), parts 1227, 1228, and 1229. 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 respective State boundaries. To be considered for such delegation, States must submit a written proposal to ONRR, which ONRR must approve. States also must provide quarterly reimbursement vouchers and reports concerning the activities under the delegation 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 that the Tribe will undertake and must present evidence that the Tribe can meet the standards of the Secretary to conduct these activities. 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.
**OMB Approval**
We will request OMB approval to continue to collect this information. Not collecting this information would limit the Secretary's ability to discharge the duties of the office and may also result in the inability to confirm the accurate royalty value. ONRR protects any proprietary information received under this collection and does 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.
*Title of Collection:* 30 CFR parts 1227, 1228, and 1229, Delegated and Cooperative Activities with States and Indian Tribes.
*OMB Control Number:* 1012-0003.
*Form Numbers:* None.
*Type of Review:* Extension of currently approved collection.
*Respondents/Affected Public:* States and Indian Tribes.
*Total Estimated Number of Annual Respondents:* 9 States and 6 Indian Tribes.
*Total Estimated Number of Annual Responses:* 210.
*Estimated Completion Time per Response:* 75.50 hrs.
*Total Estimated Number of Annual Burden Hours:* 16,697 hours.
*Respondent's Obligation:* Required to obtain or retain benefit.
*Frequency of Collection:* Based on the functions performed, responses are monthly, quarterly, annually, on occasion, and varied.
*Total Estimated Annual Non-hour Burden Cost:* We have identified no “non-hour cost” burden associated with this collection of information.
We have not included in our estimates certain usual and customary requirements that States and Tribes perform in the normal course of business. This 30-day *Federal Register* notice burden chart shows an adjustment decrease of −1,008 burden hours from the previous 30-day notice published August 25, 2015 (80 FR 51597). The following table shows the estimated burden hours by CFR section and paragraph:
| 30 CFR section | Reporting and recordkeeping requirements | Hour burden | Number of | Annual |
| --- | --- | --- | --- | --- |
| | | | | |
| | | | | |
| 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) | (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) and (e) | What compensation will a State receive to perform delegated functions? | 4 | 64 | 256 |
| | (d) At a minimum, you must provide vouchers detailing your expenditures quarterly during the fiscal year. However, you may agree to provide vouchers on a monthly basis in your delegation agreement . . . | | | |
| | | | | |
| 1227.200(a), (b), (c) and (d) | What are a State's general responsibilities if it accepts a delegation? | 940 | 9 | 8,460 |
| | (b)(1) . . . Provide complete disclosure of financial results of activities; | | | |
| | (5) Maintain adequate royalty and production information . . . | | | |
| | | | | |
| 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 | 40 | 120 |
| 1227.200(f); 401(e); 601(d) | (f) Assist ONRR in maintaining adequate reference, royalty, and production databases. . . . | 1 | 1 | 1 |
| 1227.200(g); 301(e) | (g) Develop annual work plans. . . | 60 | 9 | 540 |
| 1227.200(h) | (h) Help ONRR respond to requests for information from other Federal agencies, Congress, and the public . . . | 8 | 9 | 72 |
| 1227.400(a)(4) and (a)(6); 401(d); 501(c) | What functions may a State perform in processing production reports or royalty reports? | 1 | 1 | 1 |
| | (a) If you request delegation of either production report or royalty report processing functions, you must perform . . . | | | |
| | (6) Providing production data or royalty data to ONRR and other affected Federal agencies. . . . | | | |
| 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. | 1 | 1 | 1 |
| 1227.601(c) | What are a State's responsibilities if it performs automated verification? | 1 | 1 | 1 |
| | | | | |
| | ......................................................................................................... | | 147 | 9,828 |
| | | | | |
| | | | | |
| 1228.100(a) and (b); 101(c); 107(b) | Entering into an agreement. | 200 | 1 | 200 |
| | (b) The request for an agreement shall be in a format prescribed by ONRR and should include at a minimum the following information: | | | |
| | (2) Proposed term of the agreement. | | | |
| | (4) If the State is proposing to undertake activities on Indian lands located within the State, a resolution from the appropriate tribal council indicating their agreement to delegate to the State responsibilities under the terms of the cooperative agreement for activities to be conducted on tribal or allotted land. | | | |
| 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. | 940 | 6 | 5,640 |
| | (b) . . . Indian Tribe shall maintain all books and records . . . | | | |
| 1228.105(a)(1) and (a)(2) | Funding of cooperative agreements. | 60 | 6 | 360 |
| | (2) A cooperative agreement may be entered into with . . . Indian Tribe, upon request, without a requirement for reimbursement of costs by the Department. | | | |
| 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. | 20 | 24 | 480 |
| | ...................................................................................................... | | 44 | 6,850 |
| | | | | |
| | | | | |
| | | | | |
| 1229.100(a)(1) and (a)(2) | Authorities and responsibilities subject to delegation. | 1 | 1 | 1 |
| | (1) Conduct of audits related to oil and gas royalty payments made to the Office of Natural Resources Revenue (ONRR) which are attributable to leased . . . Indian lands within the State. Delegations with respect to any Indian lands require the written permission, subject to the review of the ONRR, of the affected Indian Tribe or allottee. | | | |
| 1229.101(a) and (d) | Petition for delegation. | 1 | 1 | 1 |
| | (d) In the event that the Secretary denies the petition, the Secretary must provide the State with the specific reasons for denial of the petition. The State will then have 60 days to either contest or correct specific deficiencies and to reapply for a delegation of authority. | | | |
| 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 | Recordkeeping requirements. | 1 | 1 | 1 |
| | (b) The State must maintain in a confidential manner all data obtained from DOI sources or from payor or company sources under the | | | |
| | (d) The State shall maintain complete cost records for the delegation in accordance with generally accepted accounting principles. . . . | | | |
| 1229.122 | Coordination of audit activities. | 1 | 1 | 1 |
| | (b) When a State plans to audit leases of a lessee or royalty payor for which there is an ONRR or OIG resident audit team, all audit activities must be coordinated through the ONRR or OIG resident supervisor. . . . | | | |
| 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 |
| | (b) After evaluating the company or payor's response to the issue letter, the State shall draft a demand letter which will be submitted with supporting workpaper files to the ONRR for appropriate enforcement action. Any substantive revisions to the demand letter will be discussed with the State prior to issuance of the letter. . . . | | | |
| 1229.126(a) and (b) | Appeals. | 1 | 1 | 1 |
| | (b) An affected State, upon the request of the ONRR, shall provide expert witnesses from their audit staff for testimony as well as required documentation and analyses to support the Department's position during the litigation of court cases arising from denied appeals. . . . | | | |
| 1229.127 | Reports from States. | 1 | 1 | 1 |
| | ...................................................................................................... | | 19 | 19 |
| Total Burden | ...................................................................................................... | | 210 | 16,697 |
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.
The authority for this action is the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 *et seq* ).
Gregory J. Gould,
Director for Office of Natural Resources Revenue.