[Federal Register Volume 64, Number 79 (Monday, April 26, 1999)]
[Notices]
[Pages 20321-20323]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-10425]
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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; Extension
AGENCY: Minerals Management Service (MMS), Interior.
ACTION: Notice of extension of a currently approved information
collection.
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SUMMARY: In compliance with the Paperwork Reduction Act (PRA) (44
U.S.C. 3501 et seq.), we are notifying you that MMS is planning to
submit an information collection request to the Office of Management
and Budget (OMB) to request an extension of a currently approved
collection. Under the PRA, Federal agencies are required to publish
notice in the Federal Register concerning each proposed collection of
information, including each proposed
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extension of an existing collection of information and to allow 60 days
for public comment in response to the notice. This notice solicits
comments on requirements relating to Directed Third Party
Communications Between Operators and Purchasers of Royalty-in-Kind
(RIK)--Federal Oil and Gas Purchase System (OMB Control Number 1010-
0126).
DATES: Written comments should be received on or before June 25, 1999.
ADDRESSES: Submit written comments on the collection of information to
the 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: For questions concerning this
collection of information, please contact Larry Barker, RIK Study Team,
telephone (303) 231-3157. You may also obtain copies of this collection
of information by contacting MMS's Information Collection Clearance
Officer at (202) 208-7744.
SUPPLEMENTARY INFORMATION: Under the PRA, Federal agencies must obtain
approval from OMB for each collection of information they conduct or
sponsor. Section 3506(c)(2)(A) of the PRA requires Federal agencies to
provide a 60-day notice in the Federal Register concerning each
proposed collection of information, including each proposed extension
of an existing collection of information, before submitting the
collection to OMB for approval. To comply with this requirement, MMS is
publishing notice of the proposed collection of information listed
below.
With respect to the following collection of information, MMS
invites comments on: (1) Whether the proposed collection of information
is necessary for the proper performance of MMS's functions, including
whether the information will have practical utility; (2) the accuracy
of MMS's estimate of the burden of the proposed collection of
information, including the validity of the methodology and assumptions
used; (3) ways to enhance the quality, utility, and clarity of the
information to be collected; and (4) ways to minimize the burden of the
collection of information on respondents, including through the use of
automated collection techniques, when appropriate, and other forms of
information technology.
In addition, the PRA requires agencies to estimate the total annual
reporting and recordkeeping ``cost'' burden to respondents or
recordkeepers resulting from the collection of information. We need to
know if you have costs associated with the collection of this
information for either total capital and startup cost components or
annual operation, maintenance, and purchase of service components. Your
estimates should consider the costs to generate, maintain, and disclose
or provide the information. You should describe the methods you use to
estimate major cost factors, including system and technology
acquisition, expected useful life of capital equipment, discount
rate(s), and the period over which you incur costs. Capital and startup
costs include, among other items, computers and software you purchase
to prepare for collecting information; monitoring, sampling, drilling,
and testing equipment; and record storage facilities. Generally, your
estimates should not include equipment or services purchased: (i)
before October 1, 1995; (ii) to comply with requirements not associated
with the information collection; (iii) for reasons other than to
provide information or keep records for the Government; or (iv) as part
of customary and usual business or private practices.
Title: Directed Third Party Communications Between Operators and
Purchasers of RIK--Federal Oil and Gas Purchase System--Extension.
OMB Control Number: 1010-0126.
Abstract: The Secretary of the Interior, under the Mineral Leasing
Act (30 U.S.C. 192) and the Outer Continental Shelf Lands Act (43
U.S.C. 1353), is responsible for the management of royalties on
minerals produced from leased Federal lands. MMS carries out these
responsibilities for the Secretary. Most royalties are now paid in
value--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. MMS has
undertaken several pilot programs to study the feasibility of taking
the Government's royalty in the form of production, that is, as RIK.
Collection of RIK requires communication between the operators of a
lease and the purchaser of RIK from that lease to assure accurate and
timely delivery of MMS' royalty share of production volumes. On January
29, 1999, OMB granted emergency approval for MMS to instruct lessees
(or their operators), through a letter to operators which contains
reporting and recordkeeping requirements, to conduct all necessary
communications with RIK purchasers during RIK pilot activities.
The three kinds of directed communication between operators and
purchasers of RIK are: (1) Information about the volumes made available
as RIK; (2) information about transportation of the RIK; and (3)
information about correcting volumes made available as RIK. Experience
with the Wyoming and Texas 8(g) Pilots demonstrates that the directed
communication requirements differ according to the needs of each pilot
situation. For example, in the Wyoming Pilot, RIK is delivered to the
purchaser at the lease. Therefore, the direction to make transportation
arrangements was not included in letters issued to those operators. For
these reasons, we are not requesting approval of specific letters to
operators but, instead, approval for the three kinds of reporting
requirements concerning communications between operators and purchasers
of RIK. By obtaining approval for these three kinds of reporting
requirements, MMS will be able to select the types of directed
communications needed for each pilot and include only those types in a
letter appropriate to the operation of that pilot.
The types of communication and supporting data MMS will require
operators to use in setting up the monthly delivery of RIK to the
purchaser are standard business practices in the oil and gas industry.
The information in the directed communication is essential to the
delivery and acceptance of verifiable quantities and qualities of oil
and gas and is exchanged as a normal part of the conduct of those
business activities, even when operators are not directed to do so. No
proprietary information will be submitted to MMS under this collection.
No items of a sensitive nature are collected. The requirement to
respond is mandatory.
The PRA 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.
Burden Statement: The reporting burden is estimated to average 2
minutes per response (oral, telefax communication) including the time
for reviewing the instructions, gathering and maintaining supporting
data (commonly maintained through electronic spreadsheets of balancing
accounts).
This direction of RIK communication does not represent a
significant increase in burden, as it is standard industry practice to
carry out this kind of information exchange when selling oil
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and gas production, regardless of whether directed to do so.
In calculating the burden, we assume that respondents perform many
of the requirements and maintain records in the normal course of their
activities. We consider these usual and customary and take that into
account in estimating the burden.
Respondents/Affected Entities: Lessees or operators of Federal oil
or gas leases participating in RIK pilot programs.
Frequency of Collection: Monthly.
Estimated Number of Respondents: 60 in Year 1; 75 in Year 2; and
120 in Year 3.
Estimated Total Annual Burden on Respondents: 97 hours in Year 1;
280 in Year 2; and 410 in Year 3.
MMS Information Collection Clearance Officer: Jo Ann Lauterbach
(202) 208-7744.
Dated April 21, 1999.
Lucy Querques Denett,
Associate Director for Royalty Management.
[FR Doc. 99-10425 Filed 4-23-99; 8:45 am]
BILLING CODE 4310-MR-P
