[Federal Register Volume 63, Number 219 (Friday, November 13, 1998)]
[Notices]
[Pages 63492-63493]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-30329]
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DEPARTMENT OF THE INTERIOR
Minerals Management Service
Agency Information Collection Activities: Submitted for Office of
Management and Budget Review; Comment Request
AGENCY: Minerals Management Service, DOI.
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, Designation of Royalty Payment Responsibility (OMB Control
Number 1010-0107, Form MMS-4425), which expires on December 31, 1998.
FORM: MMS-4425, Designation of Royalty Payment Responsibility.
DATES: Written comments should be received on or before January 12,
1999.
ADDRESSES: Comments sent via the U.S. Postal Service should be sent to
Minerals Management Service, Royalty Management Program, Rules and
Publications Staff, P.O. Box 25165, MS 3021, Denver, Colorado 80225-
0165; courier address is Building 85, Room A613, Denver Federal Center,
Denver, Colorado 80225; e:mail address is RMP.comments@mms.gov.
FOR FURTHER INFORMATION CONTACT: Dennis C. Jones, Rules and
Publications Staff, phone (303) 231-3046, FAX (303) 231-3385, e-mail
Dennis.C.Jones@mms.gov.
SUPPLEMENTARY INFORMATION: In compliance with the Paperwork Reduction
Act of 1995, Section 3506 (c)(2)(A), we are notifying you, members of
the public and affected agencies, of this collection of information,
Designation of Royalty Payment Responsibility, which expires December
31, 1998. We are requesting OMB approval for a three year extension of
this existing collection authority. Is this information collection
necessary for us to properly do our job? Have we accurately estimated
the industry burden for responding to this collection? Can we enhance
the quality, utility, and clarity of the information we collect? Can we
lessen the burden of this information collection on the respondents by
using automated collection techniques or other forms of information
technology?
The Federal Oil and Gas Royalty Simplification and Fairness Act of
1996 (RSFA), Pub. L 104-185, as corrected by Pub. L. 104-200,
establishes the owners of operating rights and/or lease record title
(who are jointly defined as ``lessees'' under RSFA) as responsible for
making royalty and related payments on a Federal lease. The Secretary
of the Interior is responsible for the collection of royalties from
lessees producing minerals from leased Federal lands. The Secretary is
required by various laws to manage the production of mineral resources
on Federal onshore and offshore leases, to collect the royalties due,
and to distribute the funds in accordance with those laws. MMS performs
the royalty management functions for the Secretary. When a company or
individual enters into a contract to develop, produce, and dispose of
minerals from Federal lands, that company or individual agrees to pay
the United States a share (royalty) of the full value received for the
minerals taken from leased lands.
Currently, it is common for a payor rather than a lessee to make
royalty and related payments on a Federal lease. When a payor pays
royalties on a
[[Page 63493]]
Federal lease on behalf of a lessee, RSFA requires that the lessee
certify to MMS, in writing, that a particular payor has been designated
by the lessee to make such royalty and related payments to MMS on
behalf of the lessee. RSFA made this payor designation requirement
effective for lease production beginning September 1, 1996. We may
require some payors to provide us information regarding the lessees on
whose behalf they are paying if we need to inform those lessees that
they must certify to MMS in writing their respective payors as their
designees. We are asking lessees and payors (designees) to provide data
required under RSFA so that we can fully implement the Act.
The Bureau of Land Management (BLM) maintains records of operating
rights owners and lessees. To facilitate the collection of lessee and
payor data described above, MMS is discussing with BLM their assistance
in including language in the lease transfer instrument, when operating
rights and/or lease record title transfers from one owner to another,
notifying new operating rights and/or lease record title owners that
they must file their written designation of payors with MMS. The form
the lessee must file with MMS, the Designation of Royalty Payment
Responsibility form, Form MMS-4425, will be available from the MMS Home
Page on the Internet, from MMS offices directly, and perhaps from BLM
offices also.
We estimate that 20,000 Designation of Royalty Payment
Responsibility forms will be completed annually by 20,000 lessees and
2,500 payors (designees). We estimate that a lessee and a payor
(designee) will take \3/4\ hour and \1/4\ hour, respectively, to
complete this form. These estimates include time for learning
requirements, research, lessee/payor contact and coordination, and
preparation and transmission of the information to MMS. We estimate
that the annual burden is 20,000 hours (20,000 forms x \3/4\ hour +
20,000 forms x \1/4\ hour), and that the annual cost is $1,000,000
(20,000 hours x $50).
Dated: November 6, 1998.
R. Dale Fazio,
Acting Associate Director for Royalty Management.
[FR Doc. 98-30329 Filed 11-12-98; 8:45 am]
BILLING CODE 4310-MR-P
