[Federal Register Volume 60, Number 214 (Monday, November 6, 1995)]
[Notices]
[Pages 56065-56066]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-27417]
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DEPARTMENT OF THE INTERIOR
Minerals Management Service
Information Collection Solicitation for Comments
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 is soliciting comments on an information collection,
[[Page 56066]]
Net Profit Share Payments for Outer Continental Shelf Oil and Gas
Leases, 30 CFR 220 (OMB Approval Number 1010-0073).
DATES: Written comments should be received on or before January 5,
1996.
SEND COMMENTS TO: David S. Guzy, Chief, Rules and Procedures Staff,
Minerals Management Service, Mail Stop 3101, Building 85, Denver
Federal Center, P.O. Box 25165, Denver, Colorado 80225; fax number is
(303) 231-3194.
FOR FURTHER INFORMATION CONTACT: Dennis C. Jones, Minerals Management
Service, Mail Stop 3101, Building 85, Denver Federal Center, P.O. Box
25165, Denver, Colorado 80225; telephone number is (303) 231-3046.
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 comment 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.
To encourage exploration and development of oil and gas leases on
submerged lands of the Outer Continental Shelf (OCS), regulations were
promulgated at 30 CFR 260.110(4) implementing a net profit share
bidding system. The net profit share lease (NPSL) bidding system was
established to properly balance a fair market return to the Federal
Government for the lease of its lands, with a fair profit to companies
risking their investment capital. The system provides an incentive for
early and expeditious exploration and development, and provides for a
sharing of the risks by the lessee and the Government. The bidding
system incorporates a fixed capital recovery system as the means
through which the lessee recovers costs of exploration and development
from production revenues, along with a reasonable return on investment.
Lessees are required (30 CFR 220.010) to maintain an NPSL capital
account and to provide annual or monthly reports using data taken from
the capital account (30 CFR 220.031). This collection of information is
necessary in order to determine when royalty payments are due and to
determine the proper amount of payment. No unique information is
required by MMS. Only a minimal recordkeeping burden is imposed
annually by this collection of information. MMS uses the data submitted
in the annual and monthly reports to verify costs claimed, revenues
earned, and profit share (royalty) payments due. No royalties are paid
until lessees recover their exploration and development expenses.
When companies enter into NPSL agreements, they agree to submit the
reports required by 30 CFR 220.031. Information required to complete
these reports comes from records maintained by the companies for their
own use. There are no reporting forms required, but the lessees must
submit updates containing specific information. Before production
begins, reports are required on an annual basis. These reports must
document costs incurred, credits received, and the balance in the NPSL
capital account. Once production begins, monthly reports are required
that include the amount and disposition of oil and gas saved, removed,
or sold; the amount of production revenue; the amount and description
of costs and credits to the NPSL capital account; the balance in the
capital account; the net profit share base and net profit share payment
due the Government; and the lessee's monthly profit share.
MMS estimates that approximately 16 hours are required per report
to extract the data required by 30 CFR 220.031 from company records.
One additional hour for recordkeeping is required as companies set up
files for each lease. A $25 hourly rate estimate is used in the
calculation of the annual cost to industry.
Dated: October 31, 1995.
Donald T. Sant,
Deputy Associate Director for Valuation and Operations.
[FR Doc. 95-27417 Filed 11-3-95; 8:45 am]
BILLING CODE 4310-MR-P
