[Federal Register Volume 62, Number 228 (Wednesday, November 26, 1997)]
[Notices]
[Pages 63185-63186]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-31081]
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DEPARTMENT OF THE INTERIOR
Minerals Management Service
Agency Information Collection Activities: Proposed Collection;
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, Oil Transportation Allowance (OMB Control Number 1010-
0061); this information collection pertains to Indian leases only.
Forms: MMS-4110, Oil Transportation Allowance Report
DATES: Written comments should be received on or before January 26,
1998.
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 David--Guzy@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 and
are inviting your comments. 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?
[[Page 63186]]
The Secretary of the Interior (Secretary) is responsible for the
collection of royalties from lessees who produce minerals from leased
Indian lands. The Secretary is required by various laws to manage the
production of mineral resources on Indian lands, to collect the
royalties due, and to distribute the funds in accordance with those
laws. The product valuation and allowance determination process is
essential to assure that the public and/or the Indians receive payment
on the proper value of the minerals being removed.
MMS performs the royalty management functions for the Secretary.
When a company or an individual enters into a contract (a lease) to
explore, develop, produce, and dispose of oil from Indian lands, that
company or individual agrees to pay the United States or Indian tribe
or allottee a share (royalty) of the value received from production
from the leased lands. Royalty rates are specified in the lease
agreement. In order to determine whether the amount of royalty tendered
represents the proper royalty due, it is first necessary to establish
the proper value of the oil that is being sold or otherwise disposed of
in some other manner, as well as the proper costs associated with
allowable deductions.
In some circumstances, lessees are authorized to deduct from
royalty payments the reasonable actual cost of transporting the royalty
portion of the oil from the lease to a delivery point remote from the
lease. Transportation allowances are a part of the product valuation
process which MMS uses to determine if the lessee is reporting and
paying the proper royalty amount.
Before any deduction may be taken, the lessee must submit page one
of the Oil Transportation Allowance Report, Form MMS-4110, declaring
the amount of reasonable actual transportation costs to be deducted
from royalty. We estimate that 3 respondents will each submit an
average of 7 allowance data lines for a total of 21 data lines
annually. We estimate that each data line will require \1/4\ hour to
prepare, a total of 5.25 burden hours. Authorization to deduct a
transportation allowance continues for 12 months, or until the contract
is changed or terminated. At that time, the lessee must resubmit page
one of Form MMS-4110. We estimate that recordkeeping for these
transportation allowances will require 1/2 hour per respondent
annually.
Dated: November 20, 1997.
Joan Killgore,
Acting Associate Director for Royalty Management.
[FR Doc. 97-31081 Filed 11-25-97; 8:45 am]
BILLING CODE 4310-MR-P
