[Federal Register Volume 63, Number 67 (Wednesday, April 8, 1998)]
[Proposed Rules]
[Pages 17133-17138]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-9109]
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DEPARTMENT OF THE INTERIOR
Minerals Management Service
30 CFR Parts 210 and 216
RIN 1010-AC40
Electronic Reporting
AGENCY: Minerals Management Service, Interior.
ACTION: Proposed rulemaking.
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SUMMARY: The Minerals Management Service (MMS) proposes to amend its
regulations to require reporters to submit royalty and production
reports electronically. This change is necessary to comply with various
mandates to use new technologies to improve the productivity,
efficiency, and effectiveness of Government programs. Additional
amendments would extend the due date for production reports filed
electronically and eliminate the reporting of most wells that are in
drilling status. These changes will reduce administrative costs and
increase operating efficiencies for industry and MMS.
DATES: Submit comments on or before June 8, 1998.
ADDRESSES: Send comments to David S. Guzy, Chief, Rules and
Publications Staff, Royalty Management Program, Minerals Management
Service, PO Box 25165, Mail Stop 3021, Denver, Colorado 80225-0165;
courier delivery to Building 85, Denver Federal Center, Denver,
Colorado 80225; or E-mail RMP.comments@mms.gov.
FOR FURTHER INFORMATION CONTACT: David S. Guzy, Chief, Rules and
Publications Staff, Royalty Management Program, Minerals Management
Service; telephone (303) 231-3432; fax (303) 231-3385; E-mail
David__Guzy@mms.gov. Contact Ralph Spencer at (303) 231-3095 for
further information about being added to the list of MMS-approved
electronic reporting services.
SUPPLEMENTARY INFORMATION: The principal authors of this proposed
rulemaking are Mary Williams, Ralph Spencer, Barbara Lambert, Gail
Solaas of the Accounting and Reports Division, and Tim Allard of the
Systems Management Division, Royalty Management Program, MMS.
I. Background
Congress and the President have mandated that Federal agencies use
new technologies to improve Government operations. For example, the
Paperwork Reduction Act of 1995, Public Law 104-13, and the Information
Technology Management Reform Act of 1996, Public Law 104-106, authorize
the use of new technologies to improve the productivity, efficiency,
and effectiveness of Government programs. Executive Order 13011
requires Government agencies to use information technology to improve
productivity and increase efficiencies. To meet these legislative and
executive mandates and take advantage of rapidly improving
technologies, MMS proposes to amend its regulations to require
reporters to report electronically.
MMS has been successfully developing and using electronic
information collection alternatives for many years. Electronic reports
produce more timely and accurate reporting at significantly less cost
than paper reports. For example, electronically-submitted Reports of
Sales and Royalty Remittance, Form MMS-2014, have an average error rate
of 1 percent compared to paper reports that have an 8 percent error
rate.
Electronic reports also streamline the error correction process. We
can quickly notify a reporter of any problems discovered during our
edit processes. The reporter can make his/her own corrections and
quickly resubmit the reports to us. This automated process reduces the
exchange of paper and the attendant confusion.
Electronic reporting, along with other streamlining and process
improvements, has reduced our error correction costs by 20 percent, our
manual data entry costs by 60 percent, and our file maintenance costs
by 24 percent. Many reporters using an electronic reporting option have
experienced up to a 50 percent reduction in resources needed to comply
with our reporting requirements.
An additional advantage of electronic reporting is the expanded
time to report. If a reporter uses E-mail or Electronic Data
Interchange (EDI), he/she can transmit reports to us on the due date
rather than several days before the due date to allow for manual
delivery. This additional time allows a reporter to collect more
accurate and complete data, thereby reducing the need for amended
reports. We can also process the reports faster because electronic
reports do not require manual data entry.
We offer various electronic reporting options and means of
transmission for different reporters. We will work closely with all
reporters to provide advice on the best electronic reporting options.
Large reporters may use standards approved by the American National
Standards Institute, Accredited Standards Committee X12, for sending
data via EDI. Small to medium reporters may use a template software
version we offer at no cost and transmit their reports to us by
diskette or E-mail. We provide detailed electronic reporting guidelines
to reporters converting to electronic reporting media. These guidelines
consist of a variety of record layout specifications and template
software with appropriate user's guides from which the reporter can
select the option best suited to his/her needs.
We are requesting specific comments from reporters who do not
currently report to us electronically on their capability (hardware,
software, knowledgeable personnel, etc.) to convert to electronic
reporting.
[[Page 17134]]
Conversion to electronic reporting is typically not time-consuming and
does not require an extensive knowledge of computer programming. For
example, if a reporter is currently using an electronic spreadsheet
such as Microsoft Excel to produce a paper report, we can provide a
record layout for converting to a Comma Separated Values format which
can be transmitted electronically. Reporters who use electronic reports
experience few problems with converting or submitting their monthly
reports.
For those reporters who do not have computers, there are numerous
reporting services that can provide electronic reporting at a
reasonable cost. We can provide a list of reporting services that have
MMS-approved electronic reporting formats. Any other reporting service
not currently using an MMS-approved electronic reporting format can
contact us for approval and be added to this list. Please contact Ralph
Spencer at (303) 231-3095 for further information.
As an added incentive to report electronically, we are proposing to
extend the due date for production reports submitted electronically by
10 days. In a recent pilot program, we tested this concept by extending
the due date 10 days for production reports filed using any of our
electronic reporting options. We were able to process electronic
production reports and provide corrected data to users, such as the
Bureau of Land Management (BLM), with no delay.
Because the pilot results were favorable, we are incorporating the
extended due date for production reports in this proposed rule. This
extension would not apply to the Form MMS-2014 Report of Sales and
Royalty Remittance. The royalty payment due date would not change.
Through this rulemaking, we also are proposing to eliminate the
requirement to report most wells that are in drilling status.
Currently, operators must report drilling wells on Form MMS-3160,
Monthly Report of Operations, or Form MMS-4054, Oil and Gas Operations
Report, to MMS, and on other reports to either BLM or Offshore Minerals
Management in MMS. We propose to amend our regulations to require Forms
MMS-3160 and MMS-4054 only on completed wells, unless otherwise
directed by MMS. Generally, operators would report wells when drilling
is concluded, that is, when the well status changes to completed,
temporarily abandoned, or abandoned. We would continue to require
reports for the months drilling wells have test production and in some
unique or unusual situations on specific leases or agreements. We would
notify operators when reporting is required on drilling wells.
These proposed amendments, when adopted, would be effective
December 31, 1998, to allow sufficient time for reporters to convert to
electronic reporting.
II. Section-by-Section Analysis
PART 210--FORMS AND REPORTS
Section 210.10(c)(1), (2), and (7) Information collection
We would amend these paragraphs to reflect the reduced monthly
reporting burden associated with electronic reporting. We estimate
reporting electronically would reduce your monthly reporting burden by
50 percent or more if you do not now report electronically. Although
converting to electronic reporting would require a resource investment,
your monthly benefits would ultimately offset initial conversion costs.
Section 210.10(d) Information Collection
We would amend this paragraph to reflect changes required by the
Paperwork Reduction Act of 1995 and to provide updated addresses for
commenting on information collections.
Section 210.20 Electronic reporting
This section would require you to submit the following three
reports electronically:
Report of Sales and Royalty Remittance, Form MMS-2014.
Monthly Report of Operations, Form MMS-3160.
Oil and Gas Operations Report, Form MMS-4054.
This section would also contain the following provisions:
Several electronic reporting options, and their order of
preference, would be identified.
You would have to obtain MMS electronic reporting
guidelines and arrange to have an electronic sample reviewed and
approved by MMS before submitting your first official electronic
report.
You would have to sign an electronic commerce agreement
when transmitting your reports by E-mail or EDI.
Certain security measures would apply to EDI formats and
E-mail transmissions.
A new reporter would have to begin reporting
electronically within 90 days from the day its first report is due.
We will assess you a fee per report line for failure to
report electronically under this part after the 90-day period to
compensate the Government for the increased costs incurred as a result
of a reporter's non-compliance. We will accept your manual reports
after the 90-day period to assure that royalties collected are
distributed to the proper recipient. However, you will be assessed a
fee for failure to report electronically after the 90-day grace period.
Section 210.52 Report of Sales and Royalty Remittance
This section would be amended to remove the references to magnetic
tape as the only alternative to a paper Form MMS-2014. Specific
reference to payments by electronic funds transfer would also be
removed because electronic funds transfer is not the only option for
electronic payments. Information on electronic payments is contained in
30 CFR 218.51.
PART 216--PRODUCTION ACCOUNTING
Section 216.11 Electronic reporting
This new section in Subpart A--General Provisions would require
electronic submission of Forms MMS-3160 and MMS-4054. Specific
requirements for electronic reporting would be located in 30 CFR
210.20.
Section 216.50 Monthly Report of Operations
This section would be amended to require reports only on completed
wells unless otherwise directed by MMS. We would also extend the due
date from the 15th to the 25th day of the second month following the
month of production when your Monthly Report of Operations, Form MMS-
3160, is filed electronically.
Section 216.53 Oil and Gas Operations Report
This section would be modified to require reports only on completed
wells unless otherwise directed by MMS. We would also extend the due
date from the 15th to the 25th day of the second month following the
month of production when your Oil and Gas Operations Report, Form MMS-
4054, is filed electronically.
Section 216.55 Gas Plant Operations Report
We have no electronic reporting options for the Gas Plant
Operations Report, Form MMS-4056. However, this section would be
modified to extend the due date for Form MMS-4056 from the 15th to the
25th day of the second month following the month of production when
your Form MMS-3160
[[Page 17135]]
or Form MMS-4054 is filed electronically.
Section 216.56 Production Allocation Schedule Report
We have no electronic reporting options for the Production
Allocation Schedule Report, Form MMS-4058. However, this section would
be modified to extend the due date for the Form MMS-4058 from the 15th
to the 25th day of the second month following the month of production
when your Form MMS-4054 is filed electronically.
III. Procedural Matters
The Regulatory Flexibility Act
The Department certifies that this rule will not have a significant
economic effect on a substantial number of small entities under the
Regulatory Flexibility Act (5 U.S.C. 601 et seq.). This rule will have
no effect on tribal governments or other small governmental
jurisdictions. Approximately 2,000 entities who pay royalties and 2,750
entities who report production from Federal and Indian lands will be
impacted, and the majority of these entities are small businesses
because they employ 500 or less employees. However, the economic impact
to these small businesses will not be significant because one-time
monetary outlays to convert to electronic reporting will be offset by
reduced monthly costs to report to MMS.
Estimated outlays for equipment or contracted services necessary to
submit electronic reports to MMS vary widely depending on the number of
properties reported, the electronic reporting option selected, and the
reporter's access to a computer.
Costs for reporters who have computers. Converting to a
Comma Separated Values (CSV) format or template software, which does
not require professional programmers, may require 10 hours depending on
the number of properties reported. Additional time to maintain the
software may require 10 hours per year. Using a cost of $35 per hour,
reporters who have computers will incur a one-time cost of $350 and an
annual cost to maintain the software of $350. We estimate that 80
percent of reporters not currently reporting to us electronically will
use the CSV or template option to comply with this rule.
Costs for reporters who do not have computers. Reporters
who do not have computers may choose to contract with an electronic
reporting service or may choose to purchase a computer and/or a
software package from an electronic reporting service. These reporters
may incur average capital/startup costs of $2,000 and subsequent
annually operating and maintenance costs of $350.
Your comments are important. The Small Business and
Agriculture Regulatory Enforcement Ombudsman and 10 Regional Fairness
Boards were established to receive comments from small businesses about
Federal agency enforcement actions. The Ombudsman will annually
evaluate the enforcement activities and rate each agency's
responsiveness to small business. If you wish to comment on the
enforcement actions in this proposed rule, call 1-888-734-3247.
Executive Order 12866
This rule is not a significant rule subject to Office of Management
and Budget review under Executive Order 12866.
Executive Order 12988
The Department has certified to the Office of Management and Budget
that this proposed regulation meets the applicable civil justice reform
standards provided in sections 3(a) and 3(b)(2) of Executive Order
12988.
Unfunded Mandates Reform Act of 1995
The Department has determined and certifies according to the
Unfunded Mandates Reform Act, 2 U.S.C. 1502 et seq., that this rule
will not impose a cost of $100 million or more in any given year on
local, tribal, or State governments, or the private sector.
Paperwork Reduction Act
This proposed rule does contain information collection
requirements. These requirements have been approved by the Office of
Management and Budget (OMB) and assigned OMB Control Numbers 1010-0022
and 1010-0040.
As discussed below, this proposed rule impacts two existing
collections of information which have been submitted to the Office of
Management and Budget (OMB) for review and approval under section
3507(d) of the Paperwork Reduction Act of 1995. As part of our
continuing effort to reduce paperwork and respondent burden, MMS
invites the public and other Federal agencies to comment on any aspect
of the reporting burden. Submit your comments to the Office of
Information and Regulatory Affairs, OMB, Attention Desk Officer for the
Department of the Interior, Washington, DC 20503. Send copies of your
comments to: Minerals Management Service, Royalty Management Program,
Rules and Publications Staff, PO Box 25165, MS 3021, Denver, Colorado
80225-0165; courier address is: Building 85, Denver Federal Center,
Denver, Colorado 80225; e-Mail address is: RMP.comments@mms.gov.
OMB may make a decision to approve or disapprove this collection of
information after 30 days from receipt of our request. Therefore, your
comments are best assured of being considered by OMB if OMB receives
them within that time period. However, MMS will consider all comments
received during the comment period for this notice of proposed
rulemaking.
The burden hours associated with two existing information
collections titled Report of Sales and Royalty Remittance (Form MMS-
2014), OMB Control Number 1010-0022, and Production Accounting and
Auditing System (PAAS) Reports [Facility and Measurement Information
Form (FMIF), Form MMS-4051; Oil and Gas Operations Report (OGOR), Form
MMS-4054; Gas Analysis Report (GAR), Form MMS-4055; Gas Plant
Operations Report (GPOR), Form MMS-4056; Monthly Report of Operations
(MRO), Form MMS-3160; Production Allocation Schedule Report (PASR),
Form MMS-4058], OMB Control Number 1010-0040, will be reduced by this
proposed rulemaking.
MMS estimates that 275,000 lines will be submitted on Form MMS-2014
each month by 2,000 payors. We estimate that a payor will complete a
line on the Form MMS-2014 in 2 minutes and that each payor will spend
10 hours on related recordkeeping. The annual burden for reporting
electronically under this information collection will be 134,000 hours
under this proposed rulemaking.
MMS estimates that the total annual burden for reporting
electronically all PAAS reports will be 53,030 hours. Approximately
290,000 Form MMS-3160 reports will be submitted annually, and we
estimate that the operator will take \1/8\ hour to complete the report
or 36,250 burden hours annually. Approximately 59,000 Form MMS-4054
reports will be submitted annually, and we estimate that the operator
will take \1/4\ hour to complete the report or 14,750 burden hours
annually. Approximately 7,200 Form MMS-4058 reports will be submitted
annually, and we estimate that the operator will take \1/4\ hour to
complete the report manually or 1,800 burden hours annually.
Approximately 450 Form MMS-4056 reports will be submitted annually, and
we estimate that the operator will take \1/2\ hour to complete the
report manually or 225 burden hours. Approximately 10 Form
[[Page 17136]]
MMS-4055 reports will be submitted annually, and we estimate that the
operator will take \1/4\ hour to complete the report manually or 2.5
burden hours. Approximately 8 Form MMS-4051 reports will be submitted
annually by telephone, and we estimate that the operator will take \1/
4\ hour to complete this report for 2 burden hours.
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. For instance your comments may address the following
areas. 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?
The Paperwork Reduction Act of 1995 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.
National Environmental Policy Act of 1969
We have determined that this rulemaking is not a major Federal
action significantly affecting the quality of the human environment,
and a detailed statement under section 102(2)(C) of the National
Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) is not
required.
List of Subjects
30 CFR Part 210
Coal, Continental shelf, Geothermal energy, Government contracts,
Indian lands, Mineral royalties, Natural gas, Petroleum, Public lands--
mineral resources, Reporting and recordkeeping requirements.
30 CFR Part 216
Coal, Continental shelf, Geothermal energy, Government contracts,
Indian lands, Mineral royalties, Natural gas, Penalties, Petroleum,
Public lands--mineral resources, Reporting and recordkeeping
requirements.
Dated: March 13, 1998.
Bob Armstrong,
Assistant Secretary for Land and Minerals Management.
For the reasons stated in the preamble, MMS proposes to amend 30
CFR parts 210 and 216 as follows:
PART 210--FORMS AND REPORTS
1. The authority citation for part 210 is revised to read as
follows:
Authority: 5 U.S.C. 301 et seq.; 25 U.S.C. 396, 2107; 30 U.S.C.
189, 190, 359, 1023, 1751(a); 31 U.S.C. 3716, 9701; 43 U.S.C. 1334,
1801 et seq.; and 44 U.S.C. 3506(a).
2. Amend Sec. 210.10 by revising paragraphs (c)(1), (c)(2), (c)(7),
and (d) to read as follows:
Sec. 210.10 Information collection.
* * * * *
(c) * * *
(1) MMS-2014--Used monthly to report lease-related transactions
essential for royalty management to determine the correct royalty
amount due, reconcile or audit data, and distribute payments to
appropriate accounts. Public reporting burden for paper submission is
estimated to average 7 minutes to complete each line item on the form,
including the time necessary to assemble data, calculate value and
royalty, and enter data on the form. Companies reporting electronically
may average 2 minutes to complete each line item on the form. Comments
submitted relative to this information collection should reference the
information collection titled Report of Sales and Royalty Remittance,
OMB Control Number 1010-0022.
(2) MMS-3160--Used by onshore oil and gas lease operators to report
monthly oil and gas production to MMS. Public reporting burden for
paper submission is estimated to average 15 minutes per form, including
the time necessary to assemble data, ensure that production and
disposition numbers are accurate, and enter data on the form. Companies
reporting electronically may average 7.5 minutes per month to complete
the form. Comments submitted relative to this information collection
should reference the information collection titled PAAS Oil and Gas
Reports, OMB Control Number 1010-0040.
* * * * *
(7) MMS-4054--This three-part form identifies all oil and gas lease
production from Federal and Indian lands. MMS uses information from
this form to track oil and gas from the point of first sale or other
disposition. Respondents will generally not use all three parts of the
form. Public reporting burden for paper submission is estimated to
average 30 minutes per month, including the time necessary to assemble
data, ensure that production and disposition numbers are accurate, and
enter data on the form. Companies reporting electronically may average
15 minutes per month to complete the form. Comments submitted relative
to this information collection should reference the information
collection titled PAAS Oil and Gas Reports, OMB Control Number 1010-
0040.
* * * * *
(d) Comments on burden estimates. Send comments on the accuracy of
this burden estimate or suggestions on reducing this burden to the
Information Collection Clearance Officer, MS 4230, MMS, 1849 C Street,
NW., Washington, DC 20240 and to the Office of Management and Budget,
Office of Information and Regulatory Affairs, Attention: Desk Officer
for the U.S. Department of the Interior, OMB Control Number 1010-XXXX,
Washington, DC 20503. 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.
3. Add Sec. 210.20 to subpart A to read as follows:
Sec. 210.20 Electronic reporting.
(a) You must submit Forms MMS-2014, MMS-3160, and MMS-4054 to MMS
electronically.
(b) You may use any of the following electronic media types, unless
MMS instructs you differently:
(1) Electronic Data Interchange (EDI)--The inter-organizational,
computer-to-computer exchange of structured information in a standard,
machine-processable format;
(2) Electronic Mail (E-mail)--Any communications service used to
electronically transmit and store messages and attach files. MMS has
three file options:
(i) Template--MMS-provided software that generates blank forms on a
personal computer to assist companies in preparing MMS regulatory
reports (this option is not available for Form MMS-4054);
(ii) Comma Separated Values (CSV)--A file format where attribute
fields are separated by commas; and
(iii) American Standard Code for Information Interchange (ASCII)--A
file format of fixed-length records with fixed-length attribute fields;
(3) Reporter-Prepared Diskette (3\1/2\ inch)--A data storage medium
used to transmit report data using one of the following file options:
(i) Template;
(ii) CSV; and
(iii) ASCII;
(4) Magnetic or Cartridge Tape--A data storage medium used to
transmit report data in an ASCII file format.
(c) MMS prefers that you use the media types in the order presented
in Sec. 210.20(b) to the extent it is cost
[[Page 17137]]
effective and practical. As technology changes, MMS will consider other
media types and the order of MMS preference may change. Refer to our
electronic commerce brochure for the most current reporting options.
You can receive a copy of our brochure by calling your MMS
representative.
(d) Before you begin reporting electronically:
(1) You must submit an electronic sample of your report for MMS
approval using the MMS-supplied electronic reporting guidelines;
(2) If you choose to use EDI or E-mail, you must sign an electronic
commerce agreement (ECA). An ECA is an agreement between you and MMS
that sets forth the terms and conditions for sending and receiving your
electronic report data transactions or funds. This agreement ensures
that your report data transactions or funds transfer are legally valid
and enforceable;
(3) If you choose to use EDI, MMS must verify your sender
identification numbers and security code before you may begin reporting
electronically; and
(4) If you choose to use the E-mail interchanges, MMS must verify
your originating address and compression software passwords before you
may begin reporting electronically.
(e) When MMS approves your sample, we will notify you to begin
reporting electronically.
(f) If you are a new reporter to MMS, you have 90 days from the day
your first report is due to begin reporting electronically.
(g) After 90 days, we will assess you a fixed fee per report line
if you report other than electronically. We will assess you a fixed fee
per report line if you do not report electronically. MMS will calculate
a reasonable fee in light of the increased costs to the Government of a
reporter's non-compliance, and will publish the per line fee rate in
the Federal Register. MMS may change the per line fee as circumstances
warrant by publishing notice in the Federal Register.
4. Section 210.52 is revised to read as follows:
Sec. 210.52 Report of sales and royalty remittance.
You must submit a completed Report of Sales and Royalty Remittance
(Form MMS-2014) with all payments to MMS for royalties and, where
specified, for rents on nonproducing leases. When you submit Form MMS-
2014 data electronically, you are not required to submit the form
itself. Completed Form MMS-2014's for royalty payments are due by the
end of the month following the production month. Where applicable,
completed Form MMS-2014's for rental payments are due no later than the
anniversary date of the lease. This section does not prohibit you from
making early payments voluntarily.
PART 216--PRODUCTION ACCOUNTING
5. The authority citation for part 216 is revised to read as
follows:
Authority: 5 U.S.C. 301 et seq.; 25 U.S.C. 396, 2107; 30 U.S.C.
189, 190, 359, 1023, 1751(a); 31 U.S.C. 3716, 9701; 43 U.S.C. 1334,
1801 et seq.; and 44 U.S.C. 3506(a).
Subpart A--General Provisions
6. Add Sec. 216.11 to subpart A to read as follows:
Sec. 216.11 Electronic reporting.
You must submit your Monthly Report of Operations, Form MMS-3160,
or the Oil and Gas Operations Report, Form MMS-4054, electronically.
Specific requirements are located in 30 CFR 210.20.
Subpart B--Oil and Gas, General
7. Amend Sec. 216.50, by redesignating paragraphs (b) through (d)
as paragraphs (f) through (h), revising paragraph (a), and adding new
paragraphs (b) through (e) to read as follows:
Sec. 216.50 Monthly report of operations.
(a) You must submit a Monthly Report of Operations, Form MMS-3160,
if you operate either an onshore Federal or Indian lease or an onshore
federally-approved agreement that contains one or more wells that are
not permanently plugged and abandoned.
(b) You must submit a Form MMS-3160 for each well for each calendar
month, beginning with the month in which you complete drilling, unless
you have only test production from a drilling well or MMS tells you in
writing to do otherwise.
(c) MMS must receive your completed Form MMS-3160 on or before:
(1) The 25th day of the second month following the month for which
you are reporting; or
(2) The 15th day of the second month following the month for which
you are reporting, if you are a new reporter and not yet converted to
electronic reporting.
(d) You must continue reporting until either:
(1) BLM approves all wells as permanently plugged or abandoned and
you dispose of all inventory; or
(2) The lease or agreement is terminated.
(e) You do not have to submit Form MMS-3160 if:
(1) You are authorized to submit an Oil and Gas Operations Report,
Form MMS-4054, instead of a Form MMS-3160; or
(2) You operate a gas storage agreement. You must report gas
storage agreements to the appropriate BLM office.
* * * * *
8. Section 216.53 is revised to read as follows:
Sec. 216.53 Oil and gas operations report.
(a) You must file an Oil and Gas Operations Report, Form MMS-4054,
if you operate either an OCS lease or federally-approved agreement; or
an onshore Federal or Indian lease or federally-approved agreement for
which you elected to report on a Form MMS-4054 instead of a Form MMS-
3160, that contains one or more wells that are not permanently plugged
and abandoned.
(b) You must submit a Form MMS-4054 for each well for each calendar
month, beginning with the month in which you complete drilling, unless
you have only test production from a drilling well or MMS tells you in
writing to do otherwise.
(c) MMS must receive your completed Form MMS-4054 on or before:
(1) The 25th day of the second month following the month for which
you are reporting; or
(2) The 15th day of the second month following the month for which
you are reporting, if you are a new reporter and not yet converted to
electronic reporting.
(d) You must continue reporting until either:
(1) BLM or MMS approves all wells as permanently plugged or
abandoned and you dispose of all inventory; or
(2) The lease or agreement is terminated.
9. Section 216.55 is revised to read as follows:
Sec. 216.55 Gas plant operations report.
(a) You must submit a Gas Plant Operations Report, Form MMS-4056,
if you operate either:
(1) A gas plant that processes gas originating from an OCS lease or
federally-approved agreement before the point of final royalty
determination; or
(2) A gas plant that processes gas from an onshore Federal or
Indian lease or federally-approved agreement before the point of final
royalty determination and MMS has asked you to submit a Form MMS-4056.
(b) You must submit a Form MMS-4056 for each calendar month
beginning with the month gas processing is initiated.
(c) MMS must receive your completed Form MMS-4056 on or before:
[[Page 17138]]
(1) The 25th day of the second month following the month for which
you are reporting; or
(2) The 15th day of the second month following the month you for
which are reporting, if you are a new reporter and not yet converted to
electronic reporting for Forms MMS-3160 and MMS-4054.
(d) Your report must show 100 percent of the gas.
(e) If your plant has not processed gas that originated from a
Federal onshore, OCS, or Indian lease, or federally-approved agreement
before the point of final royalty determination for 6 months or more,
then:
(1) You must notify MMS in writing; and
(2) You are not required to file a Form MMS-4056 until your plant
resumes processing such gas.
10. Amend Sec. 216.56 to revise paragraph (b) and add paragraph (c)
to read as follows:
Sec. 216.56 Production allocation schedule report.
* * * * *
(b) You must submit a Production Allocation Schedule Report, Form
MMS-4058, for each calendar month beginning with the month in which you
first handle production covered by this section.
(c) MMS must receive your Form MMS-4058 on or before the following
dates:
(1) The 25th day of the second month following the month for which
you are reporting; or
(2) The 15th day of the second month following the month for which
you are reporting, if you are a new reporter and not yet converted to
electronic reporting for Form MMS-4054.
[FR Doc. 98-9109 Filed 4-7-98; 8:45 am]
BILLING CODE 4310-MR-P
