[Federal Register Volume 61, Number 210 (Tuesday, October 29, 1996)]
[Notices]
[Pages 55817-55818]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-27644]
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DEPARTMENT OF THE INTERIOR
Minerals Management Service
Agency Information Collection Activities: Proposed Collection;
Comment Request
AGENCY: Minerals Management Service, DOT.
ACTION: Notice of information collection solicitation.
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SUMMARY: Under the Paperwork Reduction Act of 1995, the Minerals
Management Service (MMS) is soliciting comments on an information
collection for Requests for Royalty Refunds and Credits.
DATES: Written comments should be received on or before December 30,
1996.
ADDRESSES: Comments sent via the U.S. Postal Service should be sent to:
Minerals Management Service, Royalty Management Program, Rules and
Procedures Staff, P.O. Box 25165, MS 3101, Denver, Colorado 80225-0165;
courier address is: Building 85, Room A-212, Denver Federal Center,
Denver, Colorado 80225; e:Mail address is: David__Guzy@smtp.mms.gov.
FOR FURTHER INFORMATION CONTACT: Dennis C. Jones, Rules and Procedures
Staff, phone (303) 231-3046, FAX (303) 231-3194, e-Mail
Dennis__Jones@smtp.mms.gov.
SUPPLEMENTARY INFORMATION: In compliance with the requirement of
Section 3506(c)(2)(A) of the Paperwork Reduction Act of 1995 each
agency shall provide notice and otherwise consult with members of the
public and affected agencies concerning collection of information in
order to solicit comments to: (a) evaluate whether the proposed
collection of information is necessary for the proper performance of
the functions of the agency, including whether the information shall
have practical utility; (b) evaluate the accuracy of the agency's
estimate of the burden of the proposed collection of information; (c)
enhance the quality, utility, and clarity of the information to be
collected; and (d) minimize the burden of the collection of information
on those who are to respond, including through the use of automated
collection techniques or other forms of information technology.
The Minerals Management Service (MMS) Royalty Management Program
(RMP) is requesting the continuation of a collection of information
codified at 30 CFR 230. The purpose of this regulation is to codify the
Department of the Interior interpretation and application of Section
10, of the Outer Continental Shelf Lands Act (OCSLA), 43 U.S.C. 1339,
incorporating policies and decisions, and administrative practices.
This regulation also clarifies the information required from lease
holders requesting a royalty refund or credit from Section 10 OCS
leases.
For production months prior to August 1996, no person may recover
an excess royalty payment unless a request for refund or credit is made
in accordance with regulations at 30 CFR 230.453. Recovery of
overpayments for production months after August 1996 are not subject to
the requirements of 30 CFR 230, per the Federal Oil and Gas Royalty
Simplification and Fairness Act of 1996. To ensure consideration of a
refund request, the regulations at 30 CFR 230.453 stipulate that:
The request must be in writing. An oral request would not
be acceptable.
The MMS-established payor code must be provided to ensure
that the request is made by the person who has a legal right to a
refund or credit.
The leases involved and the sales months in which the
excess payments occurred must be identified to enable MMS to trace the
overpayment amount to the original submission on Form MMS-2014, Report
of Sales and Royalty Remittance.
The amount of the excess payment must be stated. In some
situations it may not be possible to determine an exact amount, for
example, if there is a pending administrative or judicial proceeding
that will establish the amount. In such situations it would be
acceptable to describe the class of payments that may be excess.
The specific reason why a refund or credit is due must be
provided.
The person submitting the request must certify that, to
the best of their knowledge, the information in the request is accurate
and complete.
MMS must receive the request for refund or credit within 2
years of the date the excess payment was received.
Requests for refunds are received by RMP where they are scanned for
timeliness. If the original payment was made more than 2 years previous
to the refund request, the request is denied. If the request is timely,
it is forwarded to an MMS contractor for further review to see that all
required information is included. The contractor prepares a list of
overpayments that MMS proposes to refund. The list is returned to MMS
and is then forwarded to the Congress.
[[Page 55818]]
Congress is given 30 days to act on the proposed refunds. After 30
days, a letter is issued to the companies informing them that the
recoupment is authorized.
Companies request about 500 refunds annually. MMS estimates that
the average time required to prepare a refund request is 1 hour per
request. At approximately $25 an hour, annual cost to payors is
$12,500.
500 requests x 1 hour x $25=$12,500
Estimated annual company burden hours is 500 hours.
500 requests x 1 hour=500 burden hours.
Dated: October 21, 1996.
James W. Shaw,
Associate Director for Royalty Management.
[FR Doc. 96-27644 Filed 10-28-96; 8:45 am]
BILLING CODE 4310-MR-P
