[Federal Register Volume 61, Number 111 (Friday, June 7, 1996)]
[Notices]
[Pages 29130-29131]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14268]
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DEPARTMENT OF THE INTERIOR
Minerals Management Service
Agency Information Collection Activities; Proposed Collection;
Comment Request
AGENCY: Minerals Management Service, Interior.
ACTION: Notice.
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SUMMARY: As part of its continuing effort to reduce paperwork and
respondent burden, the Minerals Management Service (MMS) invites the
public and other Federal agencies to comment on a request to reinstate
with change a collection of information contained in an interim final
rule for 30 CFR Part 203, Relief or Reduction in Royalty Rates.
DATES: Submit written comments by August 6, 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 (703) 787-1536.
SUPPLEMENTARY INFORMATION:
Title: 30 CFR Part 203, Relief or Reduction in Royalty Rates.
Abstract: The Outer Continental Shelf Lands Act (OCSLA) and the
Deep Water Royalty Relief Act (DWRRA) give the Secretary of the
Interior the authority to reduce or eliminate royalty or any net profit
share set forth in Outer Continental Shelf (OCS) oil and gas leases to
promote increased production.
MMS is issuing an interim rule to establish the terms and
conditions for granting reductions in royalty rates under the OCSLA 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 interim final rule was published in the Federal
Register on May 31, 1996 (61 FR 27263).
The MMS uses the information to determine whether granting a
royalty relief request will result in the production of resources that
would not be produced without such relief. 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 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 Office
of Management and Budget (OMB) control number.
The MMS requested OMB to approve emergency processing of this
collection of information to coincide with the effective date of the
interim final rule. This notice provides the full notice and comment
period requirement.
Description of Respondents: Federal OCS oil and gas lessees.
Frequency: On occasion.
Estimated Number of Respondents: 130 lessees making an estimated 54
applications per year.
Estimate of Burden: Average of 835 hours per response.
Estimate of Total Annual Burden Hours: 45,080 burden hours.
[[Page 29131]]
Estimate of Total Annual Cost to Respondents for Hour Burdens:
Based on $35 per hour, the total cost to lessees is estimated to be
$1,577,800.
Estimate of Total Other Annual Costs to Respondents:
There are two other known cost burdens to the respondents.
(a) We will charge lessees (respondents) applying for royalty
relief an amount which covers the cost of processing their
applications. We estimate that our costs for processing OCSLA
applications will range from $8,500 (continuation of production) to
$22,500 (project involving capital expansion). We estimate that our
costs for processing DWRRA applications will range from $27,500 to
$50,000, depending on the number of leases involved and the complexity
of the proposed development project. For some applications
(approximately 30 percent; average of 9 per year), we may need to audit
the financial data to make an adequate determination on the economics
of the proposed development. We estimate an audit to cost up to
$40,000. We will issue a Notice to Lessees (NTL) that will provide more
detailed information on the amounts of royalty relief application
processing costs, and when and how payments are to be made to us for
this purpose. We will revise the NTL periodically to reflect our cost
experience and to provide other information necessary for the
administration of this program. An application processing cost would
average $30,000 for an estimated burden of $1,620,000 ($30,000 x 54
applications=$1,620,000).
(b) A respondent's application or pre-production report must be
accompanied by a report prepared by an independent certified public
accountant as described in Sec. 203.55(c) of the rule. The OCSLA
applications will require this report only once; the DWRRA applications
will require this report at two stages (redetermination and short form
applications are excluded). We estimate an average cost for a report
will be $175,000. The estimated burden is $7,175,000 ($175,000 x 41
applications=$7,175,000).
Type of Request: Reinstatement with change.
OMB Number: 1010-0071.
Form Number: N/A.
Comments: MMS will summarize written responses to this notice and
address them in the regular request for a 3-year OMB approval. Your
comments will also be considered as MMS develops the final rule for 30
CFR Part 203. All comments will become a matter of public record.
(1) MMS specifically solicits comments on the following questions:
(a) Is the proposed collection of information necessary for the
proper performance of MMS's functions, and will it be useful?
(b) Are the estimates of the burden hours 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 of 1995 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) Total capital and startup cost component and
(b) Annual operation, maintenance, and purchase of services
component.
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 costs 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: (1) Before October 1, 1995; (2) to comply with
requirements not associated with the information collection; (3) for
reasons other than to provide information or keep records for the
Government; (4) or as part of customary and usual business or private
practices.
Bureau Clearance Officer: Carole A. deWitt, (703) 787-1242.
Dated: May 23, 1996.
Henry G. Bartholomew,
Deputy Associate Director for Operations and Safety Management.
[FR Doc. 96-14268 Filed 6-6-96; 8:45 am]
BILLING CODE 4810-MR-M
