[Federal Register Volume 63, Number 62 (Wednesday, April 1, 1998)]
[Notices]
[Pages 15859-15861]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-8485]
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DEPARTMENT OF THE INTERIOR
Minerals Management Service
Agency Information Collection Activities: Submission for Office
of Management and Budget Review; Comment Request
AGENCY: Minerals Management Service (MMS), Interior.
ACTION: Notice of revision of a currently approved collection of
information (OMB Control Number 1010-0071).
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SUMMARY: As required by the Paperwork Reduction Act of 1995 (Act), the
Department of the Interior has submitted the collection of information
discussed below to the Office of Management and Budget (OMB) for
approval. The Act provides that an agency may not conduct or sponsor,
and a person is not required to respond to, a collection of information
unless it displays a currently valid OMB control number.
DATES: Submit written comments by May 1, 1998.
ADDRESSES: Submit comments and suggestions directly to the Office of
Information and Regulatory Affairs, OMB, Attention: Desk Officer for
the Department of the Interior (1010-0071), 725 17th Street, NW,
Washington, D.C. 20503. Send a copy of your comments to the Minerals
Management Service, Attention: Rules Processing Team, Mail Stop 4024,
381 Elden Street, Herndon, Virginia 20170-4817.
FOR FURTHER INFORMATION CONTACT: Alexis London, Engineering and
Operations Division, Minerals Management Service, telephone (703) 787-
1600. You may obtain copies of the supporting statement and collection
of information by contacting MMS's Information Collection Clearance
Officer at (202) 208-7744.
SUPPLEMENTARY INFORMATION:
Title: 30 CFR Part 203, Relief or Reduction in Royalty Rates.
Abstract: The Outer Continental Shelf (OCS) Lands Act, as amended
by the
[[Page 15860]]
Deep Water Royalty Relief Act (DWRRA), gives the Secretary of the
Interior the authority to reduce or eliminate royalty or any net profit
share set forth in Outer Continental Shelf oil and gas leases to
promote increased production. The MMS final rule established the terms
and conditions for granting reductions in royalty rates under the OCS
Lands Act and royalty suspension volumes under the DWRRA for certain
leases in existence before November 28, 1995. It also defines the
information required for a complete application as required by 43
U.S.C. 1337(a)(3)(C). The final rule was published in the Federal
Register on January 16, 1998 (63 FR 2605). The preamble stated that the
new information collection requirement in Sec. 203.61 would not become
effective until approved by OMB. The preamble provided the required 60-
day comment period.
MMS will use the information to make decisions on the economic
viability of leases requesting a suspension or elimination of royalty
or net profit share. These decisions have enormous monetary impacts to
both the lessee and the Federal Government. Royalty relief can lead to
increased production of natural gas and oil, creating profits for
lessees and royalty and tax revenues for the Government that they might
not otherwise receive. An application for royalty relief must contain
sufficient financial, economic, reservoir, geologic and geophysical,
production, and engineering data and information for MMS to determine
whether relief should be granted according to applicable law. The
application also must be sufficient to determine whether the requested
relief will result in an ultimate increase in resource recovery and
receipts to the Federal Treasury and provide for reasonable returns on
project investments. The applicant's requirement to respond is related
only to a request to obtain royalty relief. The applicant has no
obligation to make such a request. The MMS will protect information
considered proprietary under applicable law and regulations at 30 CFR
203.63(b) and 30 CFR part 250.
Number and Description of Respondents: Approximately 130 Federal
OCS oil and gas lessees making an estimated 44 applications per year.
Frequency: On occasion.
Reporting and Recordkeeping Hour Burden: See chart below. Average
333 hours per response for a total estimated burden of 14,640 hours.
Reporting and Recordkeeping Cost Burden: See chart below.
(a) Application processing cost: average $22,000 per application
for a total estimated burden of $618,250.
(b) Some applications will require a report prepared by an
independent certified public accountant: average $45,000 per
application for an estimated burden of $1,215,000.
Burden Breakdown Chart
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Application/audit fees
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Requirement 30 CFR part 203 Hours per
Responses per year response Annual burden
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OCSLA Reporting
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Application--leases that generate 6..................................... 200 1,200
earnings that can't sustain
continued production (end-of-
life lease).
(2)Application: 6 x
$8,000=$48,000
(2)Audit: 1 x $12,500=$12,500
Application--NRS expansion 0..................................... 0 0
project.
Sec. 203.55 Renounce relief
arrangement.
(1)Seldom, if ever will be used; 0.....................................
burden minimal to prepare letter
Sec. 203.81 Required reports.....
(1)Burden included with 0.....................................
applications
Subtotal OCS Lands Act....... 6..................................... N/A 1,200
(2)Processing Fees $60,500
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DWRRA Reporting
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Application--leases in designated 3..................................... 600 1,800
areas of GOM deep water acquired
in lease sale before 11/28/95
and are producing (deep water
expansion project).
(2)Application: 3 x
$19,500=$58,500
(2)Audit: 1 x $18,750=$18,750
Application--leases in designated 8..................................... 1,000 8,000
areas of GOM deep water acquired
in lease sale before 11/28/95
and have not produced (pre-act
deep water leases).
(2)Application: 8 x
$34,000=$272,000
(2)Audit: 2 x $37,500=75,000
Application--short form to add or 7..................................... 40 280
assign pre-act lease.
(2)Application: 7 x $1,000=$7,000
(2)No Audit:
Application--preview assessment.. 2..................................... 900 1,800
(2)Application: 2 x
$28,500=$57,000
(2)No Audit:
Redetermination.................. 2..................................... 500 1,000
(2)Application: 2 x
$16,000=$32,000
(2)Audit: 1 x $37,500=$37,500
Sec. 203.70 Submit fabricator's 8..................................... 20 160
confirmation report.
Sec. 203.70 Submit post- 8..................................... 50 400
production development report.
Sec. 203.77 Renounce relief
arrangement.
(1)Seldom, if ever will be used; 0.....................................
burden minimal to prepare letter
Sec. 203.79 Appeal MMS decisions.
(1)Exempt as defined in 5 CFR 0.....................................
1320.3(h)(9)
Sec. 203.81 Required reports.....
(1)Burden included with 0.....................................
applications
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Subtotal DWRRA............... 38.................................... N/A 13,440
[[Page 15861]]
(2)Processing Fees $557,750
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Total Annual Reporting Burden 44 Responses.......................... N/A 14,640 Hours
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(2)Processing Fees $618,250
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Recordkeeping
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Sec. 203.91 Retain supporting 8 Record keepers...................... 8 64 Hours
cost records for post-production
development and fabrication
reports.
Total Annual Recordkeeping
Burden.
(2)Respondents would retain
records as usual and customary
business practice; minimal
burden to make them available at
MMS request.
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Comments
Section 3506(c)(2)(A) of the Paperwork Reduction Act requires each
agency ``. . . to provide notice . . . and otherwise consult with
members of the public and affected agencies concerning each proposed
collection of information. . . .'' Agencies must specifically solicit
comments to: (a) evaluate whether the proposed collection of
information is necessary for the agency to perform its duties,
including whether the information is useful; (b) evaluate the accuracy
of the agency's estimate of the burden of the proposed collection of
information; (c) enhance the quality, usefulness, and clarity of the
information to be collected; and (d) minimize the burden on the
respondents, including the use of automated collection techniques or
other forms of information technology.
Send your comments directly to the offices listed under the
addresses section of this notice. OMB has up to 60 days to approve or
disapprove the information collection but may respond after 30 days.
Therefore, to ensure maximum consideration, OMB should receive public
comments by May 1, 1998.
MMS Information Collection Clearance Officer: Jo Ann Lauterbach,
(202) 208-7744.
Dated: March 25, 1998.
E. P. Danenberger,
Chief, Engineering and Operations Division.
[FR Doc. 98-8485 Filed 3-31-98; 8:45 am]
BILLING CODE 4310-MR-P
