96-2382. Reduction of Royalty or Net Profit Share

[Federal Register Volume 61, Number 25 (Tuesday, February 6, 1996)]
[Notices]
[Pages 4481-4482]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-2382]



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DEPARTMENT OF THE INTERIOR

Reduction of Royalty or Net Profit Share

AGENCY: Minerals Management Service, DOI.

ACTION: Notice of request for reinstatement of information collection; 
request for comments.

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SUMMARY: As part of its continuing effort to reduce paperwork and 
respondent burden, the Minerals Management Service (MMS) invites the 
general public and other Federal agencies to comment on a request to 
reinstate a previously approved collection of 

[[Page 4482]]
information contained in 30 CFR Part 203.50, concerning the reduction 
of royalty or net profit share. MMS re-estimated the reporting burden 
which resulted in a reduction in the annual burden previously approved 
by the Office of Management and Budget (OMB). MMS will request approval 
from the OMB to reinstate this collection of information.

DATES: Submit written comments by April 8, 1996.

ADDRESSES: Direct all written comments to the Department of the 
Interior; Minerals Management Service; Mail Stop 4700; 381 Elden 
Street; Herndon, Virginia 22070-4817; Attention: Chief, Engineering and 
Standards Branch.

FOR FURTHER INFORMATION CONTACT: Marshall Rose, Chief, Economic 
Evaluation Branch, Resource Evaluation Division, Minerals Management 
Service, telephone [phone].

SUPPLEMENTARY INFORMATION:

    Abstract: 1. The Secretary of the Interior issued regulations at 30 
CFR 203.50 which contain provisions to reduce or eliminate any royalty 
or net profit share on an entire leasehold or on any deposit, tract, or 
portion thereof that is segregated for royalty purposes, in order to 
promote increased production on a lease area through direct, secondary, 
or tertiary recovery means.
    2. In order for MMS to determine whether to eliminate royalty or 
net profit share, the lessee must request relief filing an application 
prepared in accordance with Sec. 203.50. The application must contain 
sufficient scientific, geological, engineering, and financial 
information to permit MMS to evaluate the need for relief.
    Description of Respondents: Federal OCS oil and gas lessees.
    Frequency: Annual.
    Estimated Number of Respondents: 10 initial applications; 2 annual 
renewals.
    Estimate of Burden: 160 hours per initial application; 80 hours per 
renewal of previously approved applications.
    Estimate of Total Annual Burden on Respondents:  Reporting burden 
estimate=1,760 hours.
    Estimate of Total Annual Cost to Respondents for Hour
    Burdens: Based on $25 per hour, the total cost to lessees is 
estimated to be $44,000.
    Estimate of Total Other Annual Costs to Respondents: Unknown.
    Type of Request: Reinstatement.
    OMB Number: 1010-0071.
    Form Number: N/A.
    Comments: MMS will summarize written responses to this notice for 
inclusion in the request for OMB approval. All comments will also 
become a matter of public record.
    1. As required by the Paperwork Reduction Act of 1995 (44 U.S.C. 
3506(c)(2)(A)), MMS specifically solicits responses to the following: 
(a) Is the proposed collection of information necessary for the proper 
performance of MMS functions and will it be useful? (b) Are the 
estimates of the burden of the proposed collection reasonable? (c) Do 
you have any suggestions that would enhance the quality, clarity, or 
usefulness of the information to be collected? (d) Is there a way to 
minimize the information collection burden on those who are to respond, 
including through the use of appropriate automated electronic, 
mechanical, or other forms of information technology?
    2. In addition, the Paperwork Reduction Act requires agencies to 
estimate the total annual cost burden to respondents or recordkeepers 
resulting from the collection of information. MMS needs your comments 
on this item. Your response should split the cost estimate into two 
components: (a) a total capital and start-up cost component; and (b) an 
annual operation and maintenance and purchase of services component. 
The estimates should take into account costs associated with 
generating, maintaining, and disclosing or providing the information. 
Include descriptions of methods used to estimate major cost factors 
including system and technology acquisition, expected useful life of 
capital equipment, the discount rate(s), and the time period over which 
costs will be incurred. Capital and start-up costs include, among other 
items, preparations for collecting information such as purchasing 
computers and software, monitoring, sampling, drilling and testing 
equipment; and record storage facilities. Generally, estimates should 
not include purchases of equipment or services made: (a) before October 
1, 1995; (b) to achieve regulatory compliance with requirements not 
associated with the information collection; (c) for reasons other than 
to provide information or keep records for the government; or (d) as 
part of customary and usual business or private practices.
    Bureau Clearance Officer: Arthur Quintana, [phone].

    Dated: January 29, 1996.
Henry G. Bartholomew,
Deputy Associate Director for Operations and Safety Management.
[FR Doc. 96-2382 Filed 2-5-96; 8:45 am]
BILLING CODE 4310-MR-M