| Page Range | 13619-13629 | |
| FR Document | 2015-05854 |
[Federal Register Volume 80, Number 50 (Monday, March 16, 2015)] [Notices] [Pages 13619-13629] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-05854] ----------------------------------------------------------------------- DEPARTMENT OF THE INTERIOR [Docket No. ONRR-2011-0021; DS63610000 DR2PS0000.CH7000 145D0102R2] Office of Natural Resources Revenue; Agency Information Collection Activities: 30 CFR Parts 1202, 1206, and 1207, Indian Oil & Gas Valuation--Comment Request AGENCY: Office of Natural Resources Revenue (ONRR), Interior. ACTION: Notice of extension. ----------------------------------------------------------------------- SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), ONRR is inviting comments on a collection of information requests that we will submit to the Office of Management and Budget (OMB) for review and approval. This Information Collection Request (ICR) covers the paperwork requirements in the regulations under title 30, Code of Federal Regulations (CFR), parts 1202, 1206, and 1207. Also, there are five forms associated with this information collection. DATES: Submit written comments on or before May 15, 2015. ADDRESSES: You may submit comments on this ICR to ONRR by using one of the following three methods (please reference ``ICR 1012-0002'' in your comments): 1. Electronically go to http://www.regulations.gov. In the entry titled ``Enter Keyword or ID,'' enter ``ONRR-2011-0021'' and then click ``Search.'' [[Page 13620]] Follow the instructions to submit public comments. ONRR will post all comments. 2. Mail comments to Mr. Luis Aguilar, Regulatory Specialist, ONRR, P.O. Box 25165, MS 61030A, Denver, Colorado 80225-0165. 3. Hand-carry or mail comments, using an overnight courier service, to ONRR. Our courier address is Building 85, Room A-614, Denver Federal Center, West 6th Ave. and Kipling St., Denver, Colorado 80225. FOR FURTHER INFORMATION CONTACT: For any questions, contact Mr. Luis Aguilar, telephone (303) 231-3418, or email at [email protected]. You may also contact Mr. Aguilar to obtain copies, at no cost, of (1) the ICR, (2) any associated forms, and (3) the regulations that require us to collect the information. SUPPLEMENTARY INFORMATION: I. Abstract The Secretary of the United States Department of the Interior is responsible for collecting royalties from lessees who produce minerals from leased Federal and Indian lands and the Outer Continental Shelf (OCS). The Secretary's responsibility, under various laws, is to manage mineral resource production from Federal and Indian lands and the OCS, collect the royalties and other mineral revenues due, and distribute the funds collected under those laws. ONRR performs the royalty management functions for the Secretary. We have posted those laws pertaining to mineral leases on Federal and Indian lands and the OCS at http://www.onrr.gov/Laws_R_D/PubLaws/default.htm. Indian tribes and individual Indian mineral owners receive all royalties generated from their lands. Determining product valuation is essential to ensure that Indian tribes and individual Indian mineral owners receive payment on the full value of the minerals removed from their lands. Failure to collect the data described in this information collection could result in the undervaluation of leased minerals on Indian lands. Indian Oil Regulations at 30 CFR part 1206, subpart B, govern the valuation for royalty purposes of all oil produced from Indian oil and gas leases (tribal and allotted), except leases on the Osage Indian Reservation, and are consistent with mineral leasing laws, other applicable laws, and lease terms. Generally, the regulations provide that lessees determine the value of oil based upon the higher of (1) the gross proceeds under an arm's-length contract; or (2) major portion analysis. The value determined by the lessee may be eligible for a transportation allowance. From information collected on Form ONRR-4110, Oil Transportation Allowance Report, ONRR and tribal audit personnel evaluate (1) whether lessee-reported transportation allowances are within regulatory allowance limitations and calculated in accordance with applicable regulations; and (2) whether the lessees reported and paid the proper amount of royalties. Indian Gas Regulations at 30 CFR part 1206, subpart E, govern the valuation for royalty purposes of natural gas produced from Indian oil and gas leases (tribal and allotted). The regulations apply to all gas production from Indian oil and gas leases, except leases on the Osage Indian Reservation. Most Indian leases contain the requirement to perform accounting for comparison (dual accounting) for gas produced from the lease. Lessees must elect to perform actual dual accounting as defined in 30 CFR 1206.176 or alternative dual accounting as defined in 30 CFR 1206.173. Lessees use Form ONRR-4410, Accounting for Comparison [Dual Accounting], to certify that dual accounting is not required on an Indian lease or to make an election for actual or alternative dual accounting for Indian leases. The regulations require lessees to submit Form ONRR-4411, Safety Net Report, when gas production from an Indian oil or gas lease is sold beyond the first index pricing point. The safety net calculation establishes the minimum value, for royalty purposes, of natural gas production from Indian oil and gas leases. This reporting requirement ensures that Indian lessors receive all royalties due and aids ONRR compliance efforts. From information collected on Form ONRR-4295, Gas Transportation Allowance Report, ONRR and tribal audit personnel evaluate (1) whether lessee-reported transportation allowances are within regulatory allowance limitations and calculated in accordance with applicable regulations; and (2) whether the lessees reported and paid the proper amount of royalties. From information collected on Form ONRR-4109, Gas Processing Allowance Summary Report, ONRR and tribal audit personnel evaluate (1) whether lessee-reported processing allowances are within regulatory allowance limitations and calculated in accordance with applicable regulations; and (2) whether the lessees reported and paid the proper amount of royalties. Indian Oil and Gas Form ONRR-4393, Request to Exceed Regulatory Allowance Limitation, is used for both Federal and Indian leases. Most of the burden hours are incurred on Federal leases; therefore, the form is approved under ICR 1012-0005, pertaining to Federal oil and gas leases. However, we include a discussion of the form in this ICR, as well as the burden hours for Indian leases. To request permission to exceed a regulatory allowance limit, lessees must (1) submit a letter to ONRR explaining why a higher allowance limit is necessary; and (2) provide supporting documentation, including a completed Form ONRR-4393. This form provides ONRR with the data necessary to make a decision whether to approve or deny the request and track deductions on royalty reports. OMB Approval ONRR will request OMB approval to continue to collect this information. If ONRR does not collect this information, this would limit the Secretary's ability to discharge fiduciary duties and may also result in the inability to confirm the accurate royalty value. ONRR protects the proprietary information that we receive, and we do not collect items of a sensitive nature. ONRR requires lessees to respond to this ICR because the information collected is essential in order to determine when net profit share payments are due and to ensure that lessees properly value and pay royalties or net profit share payments. The requirement to respond is mandatory for Form ONRR-4410, Accounting for Comparison [Dual Accounting], and Form ONRR-4411, Safety Net Report, under certain circumstances. And, the lessees are required to submit Forms ONRR-4109, ONRR-4110, and ONRR-4295 in order to obtain a benefit. II. Data Title: 30 CFR parts 1202, 1206, and 1207, Indian Oil and Gas Valuation. OMB Control Number: 1012-0002. Bureau Form Number: Forms ONRR-4109, ONRR-4110, ONRR-4295, ONRR- 4410, and ONRR-4411. Frequency of Response: Annually and on occasion. Estimated Number and Description of Respondents: 148 Indian lessees. Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 2,269 hours. We have not included in our estimates certain requirements performed in the normal course of [[Page 13621]] business and considered usual and customary. The following chart shows the estimated burden hours by CFR section and paragraph: Respondents' Estimated Annual Burden Hours ---------------------------------------------------------------------------------------------------------------- Average number 30 CFR Reporting and recordkeeping Hour burden of annual Annual burden requirement responses hours ---------------------------------------------------------------------------------------------------------------- Part 1202--ROYALTIES Subpart C--Federal and Indian Oil ---------------------------------------------------------------------------------------------------------------- 1202.101...................... Standards for reporting and Burden covered under OMB Control Number 1012- paying royalties. 0004 (expires 12/31/2012). Burden covered Oil volumes are to be reported under Sec. 1210.52. in barrels of clean oil of 42 standard U.S. gallons (231 cubic inches each) at 60 [deg]F. . . .. ---------------------------------------------------------------------------------------------------------------- Subpart J--Gas Production From Indian Leases ---------------------------------------------------------------------------------------------------------------- 1202.551(b)................... How do I determine the volume of Burden covered under OMB Control Number 1012- production for which I must pay 0004. Burden covered under Sec. 1210.52. royalty if my lease is not in an approved Federal unit or communitization agreement (AFA)? (b) You and all other persons paying royalties on the lease must report and pay royalties based on your takes. . . .. ---------------------------------------------------------------------------------------------------------------- 1202.551(c)................... (c) You and all other persons 1 1 1 paying royalties on the lease may ask ONRR for permission. . . . to report entitlements . . . ---------------------------------------------------------------------------------------------------------------- 1202.558(a) and (b)........... What standards do I use to Burden covered under OMB Control Number 1012- report and pay royalties on 0004. Burden covered under Sec. 1210.52. gas?. (a) You must report gas volumes as follows: . . .. (b) You must report residue gas and gas plant product volumes as follows: . . .. ---------------------------------------------------------------------------------------------------------------- Part 1206--PRODUCT VALUATION Subpart B--Indian Oil ---------------------------------------------------------------------------------------------------------------- 1206.56(b)(2)................. Transportation allowances-- 4 1 4 general. (b)(2) Upon request of a lessee, ONRR may approve a transportation allowance deduction in excess of the limitation prescribed by paragraph (b)(1) of this section. . . . An application for exception (using Form ONRR- 4393, Request to Exceed Regulatory Allowance Limitation) must contain all relevant and supporting documentation necessary for ONRR to make a determination. . . .. ---------------------------------------------------------------------------------------------------------------- 1206.57(a)(1)(i).............. Determination of transportation AUDIT PROCESS. See note. allowances. (a) Arm's-length transportation contracts.. (1)(i) . . . The lessee shall have the burden of demonstrating that its contract is arm's-length.. ---------------------------------------------------------------------------------------------------------------- 1206.57(a)(1)(i).............. (a) Arm's-length transportation Burden covered under Sec. 1206.57(c)(1)(i) contracts. and (iii). (1)(i) . . . Before any deduction may be taken, the lessee must submit a completed page one of Form ONRR-4110 (and Schedule 1), Oil Transportation Allowance Report . . .. ---------------------------------------------------------------------------------------------------------------- 1206.57(a)(1)(iii)............ (a) Arm's-length transportation AUDIT PROCESS. See note. contracts. (1)(iii) . . . When ONRR determines that the value of the transportation may be unreasonable, ONRR will notify the lessee and give the lessee an opportunity to provide written information justifying the lessee's transportation costs.. ---------------------------------------------------------------------------------------------------------------- 1206.57(a)(2)(i).............. (a) Arm's-length transportation Burden covered under Sec. 1206.57(a)(3). contracts. (2)(i) . . . Except as provided in this paragraph, no allowance may be taken for the costs of transporting lease production which is not royalty-bearing without ONRR approval.. ---------------------------------------------------------------------------------------------------------------- 1206.57(a)(2)(ii)............. (a) Arm's-length transportation 20 1 20 contracts. (2)(ii) Notwithstanding the requirements of paragraph (i), the lessee may propose to ONRR a cost allocation method on the basis of the values of the products transported. . . .. ---------------------------------------------------------------------------------------------------------------- 1206.57(a)(3)................. (a) Arm's-length transportation 40 1 40 contracts. (3) If an arm's-length transportation contract includes both gaseous and liquid products, and the transportation costs attributable to each product cannot be determined from the contract, the lessee shall propose an allocation procedure to ONRR. . . . The lessee shall submit all available data to support its proposal. . . .. ---------------------------------------------------------------------------------------------------------------- [[Page 13622]] 1206.57(b)(1)................. (b) Non-arm's-length or no Burden covered under Sec. 1206.57(c)(2)(i) contract. and (iii). (1) . . . A transportation allowance may be claimed retroactively for a period of not more than 3 months prior to the first day of the month that Form ONRR-4110 is filed with ONRR, unless ONRR approves a longer period upon a showing of good cause by the lessee. . . .. ---------------------------------------------------------------------------------------------------------------- 1206.57(b)(1)................. (b) Non-arm's-length or no Burden covered under OMB Control Number 1012- contract. 0004. Burden covered under Sec. 1210.52. (1) . . . When necessary or appropriate, ONRR may direct a lessee to modify its actual transportation allowance deduction.. ---------------------------------------------------------------------------------------------------------------- 1206.57(b)(2)(iv)............. (b) Non-arm's-length or no 20 1 20 contract. (2)(iv) . . . After a lessee has elected to use either method for a transportation system, the lessee may not later elect to change to the other alternative without approval of ONRR.. ---------------------------------------------------------------------------------------------------------------- 1206.57(b)(2)(iv)(A).......... (b) Non-arm's-length or no 20 1 20 contract. (2)(iv)(A) . . . After an election is made, the lessee may not change methods without ONRR approval. . . .. ---------------------------------------------------------------------------------------------------------------- 1206.57(b)(3)(i).............. (b) Non-arm's-length or no 40 1 40 contract. (3)(i) . . . Except as provided in this paragraph, the lessee may not take an allowance for transporting lease production which is not royalty bearing without ONRR approval.. ---------------------------------------------------------------------------------------------------------------- 1206.57(b)(3)(ii)............. (b) Non-arm's-length or no 20 1 20 contract. (3)(ii) Notwithstanding the requirements of paragraph (i), the lessee may propose to ONRR a cost allocation method on the basis of the values of the products transported. . . .. ---------------------------------------------------------------------------------------------------------------- 1206.57(b)(4)................. (b) Non-arm's-length or no 20 1 20 contract. (4) Where both gaseous and liquid products are transported through the same transportation system, the lessee shall propose a cost allocation procedure to ONRR. . . . The lessee shall submit all available data to support its proposal. . . .. ---------------------------------------------------------------------------------------------------------------- 1206.57(b)(5)................. (b) Non-arm's-length or no 20 1 20 contract. (5) A lessee may apply to ONRR for an exception from the requirement that it compute actual costs in accordance with paragraphs (b)(1) through (b)(4) of this section. . . .. ---------------------------------------------------------------------------------------------------------------- 1206.57(c)(1)(i).............. (c) Reporting requirements...... 4 1 4 (1) Arm's-length contracts. (i) With the exception of those transportation allowances specified in paragraphs (c)(1)(v) and (c)(1)(vi) of this section, the lessee shall submit page one of the initial Form ONRR-4110 (and Schedule 1), Oil Transportation Allowance Report, prior to, or at the same time as, the transportation allowance determined, under an arm's- length contract, is reported on Form ONRR-2014, Report of Sales and Royalty Remittance. . . .. ---------------------------------------------------------------------------------------------------------------- 1206.57(c)(1)(iii)............ (c) Reporting requirements...... 4 1 4 (1) Arm's-length contracts. (iii) After the initial reporting period and for succeeding reporting periods, lessees must submit page one of Form ONRR-4110 (and Schedule 1) within 3 months after the end of the calendar year, or after the applicable contract or rate terminates or is modified or amended, whichever is earlier, unless ONRR approves a longer period (during which period the lessee shall continue to use the allowance from the previous reporting period).. ---------------------------------------------------------------------------------------------------------------- 1206.57(c)(1)(iv)............. (c) Reporting requirements...... AUDIT PROCESS. See note. (1) Arm's-length contracts. (iv) ONRR may require that a lessee submit arm's-length transportation contracts, production agreements, operating agreements, and related documents. Documents shall be submitted within a reasonable time, as determined by ONRR.. ---------------------------------------------------------------------------------------------------------------- [[Page 13623]] 1206.57(c)(2)(i).............. (c) Reporting requirements...... 6 1 6 (2) Non-arm's-length or no contract.. (i) With the exception of those transportation allowances specified in paragraphs (c)(2)(v), (c)(2)(vii) and (c)(2)(viii) of this section, the lessee shall submit an initial Form ONRR-4110 prior to, or at the same time as, the transportation allowance determined under a non-arm's- length contract or no-contract situation is reported on Form ONRR-2014. . . . The initial report may be based upon estimated costs.. ---------------------------------------------------------------------------------------------------------------- 1206.57(c)(2)(iii)............ (c) Reporting requirements...... 6 1 6 (2) Non-arm's-length or no contract.. (iii) For calendar-year reporting periods succeeding the initial reporting period, the lessee shall submit a completed Form ONRR-4110 containing the actual costs for the previous reporting period. If oil transportation is continuing, the lessee shall include on Form ONRR-4110 its estimated costs for the next calendar year. . . . ONRR must receive the Form ONRR-4110 within 3 months after the end of the previous reporting period, unless ONRR approves a longer period (during which period the lessee shall continue to use the allowance from the previous reporting period).. ---------------------------------------------------------------------------------------------------------------- 1206.57(c)(2)(iv)............. (c) Reporting requirements...... Burden covered under Sec. 1206.57(c)(2)(i). (2) Non-arm's-length or no contract.. (iv) For new transportation facilities or arrangements, the lessee's initial Form ONRR-4110 shall include estimates of the allowable oil transportation costs for the applicable period. . . .. ---------------------------------------------------------------------------------------------------------------- 1206.57(c)(2)(v).............. (c) Reporting requirements...... Burden covered under Sec. 1206.57(c)(2)(i). (2) Non-arm's-length or no contract.. (v) . . . only those allowances that have been approved by ONRR in writing . . .. ---------------------------------------------------------------------------------------------------------------- 1206.57(c)(2)(vi)............. (c) Reporting requirements...... AUDIT PROCESS. See note. (2) Non-arm's-length or no contract.. (vi) Upon request by ONRR, the lessee shall submit all data used to prepare its Form ONRR- 4110. The data shall be provided within a reasonable period of time, as determined by ONRR.. ---------------------------------------------------------------------------------------------------------------- 1206.57(c)(4) and (e)(2)...... (c) Reporting requirements...... Burden covered under OMB Control Number 1012- (4) Transportation allowances 0004. Burden covered under Sec. 1210.52. must be reported as a separate line item on Form ONRR-2014, . . .. (e) Adjustments................. (2) For lessees transporting production from Indian leases, the lessee must submit a corrected Form ONRR-2014 to reflect actual costs, . . .. ---------------------------------------------------------------------------------------------------------------- 1206.59....................... May I ask ONRR for valuation 20 1 20 guidance?. You may ask ONRR for guidance in determining value. You may propose a value method to ONRR. Submit all available data related to your proposal and any additional information ONRR deems necessary. . . .. ---------------------------------------------------------------------------------------------------------------- 1206.61(a) and (b)............ What records must I keep and AUDIT PROCESS. See note. produce?. (a) On request, you must make available sales, volume, and transportation data for production you sold, purchased, or obtained from the field or area. You must make this data available to ONRR, Indian representatives, or other authorized persons.. (b) You must retain all data relevant to the determination of royalty value. . . .. ---------------------------------------------------------------------------------------------------------------- [[Page 13624]] Part 1206--PRODUCT VALUATION Subpart E--Indian Gas ---------------------------------------------------------------------------------------------------------------- 1206.172(b)(1)(ii)............ How do I value gas produced from 4 58 232 leases in an index zone?. (b) Valuing residue gas and gas before processing.. (1)(ii) Gas production that you certify on Form ONRR-4410, . . . is not processed before it flows into a pipeline with an index but which may be processed later; . . .. ---------------------------------------------------------------------------------------------------------------- 1206.172(e)(6)(i) and (iii)... (e) Determining the minimum 3 11 33 value for royalty purposes of gas sold beyond the first index pricing point. (6)(i) You must report the safety net price for each index zone to ONRR on Form ONRR-4411, Safety Net Report, no later than June 30 following each calendar year; . . .. (iii) ONRR may order you to amend your safety net price within one year from the date your Form ONRR-4411 is due or is filed, whichever is later. . . .. ---------------------------------------------------------------------------------------------------------------- 1206.172(e)(6)(ii)............ (e) Determining the minimum Burden covered under OMB Control Number 1012- value for royalty purposes of 0004. Burden covered under Sec. 1210.52. gas sold beyond the first index pricing point. (6)(ii) You must pay and report on Form ONRR-2014 additional royalties due no later than June 30 following each calendar year; . . .. ---------------------------------------------------------------------------------------------------------------- 1206.172(f)(1)(ii), (f)(2), (f ) Excluding some or all 40 1 40 and (f)(3). tribal leases from valuation under this section. (1) An Indian tribe may ask ONRR to exclude some or all of its leases from valuation under this section. . . .. (ii) If an Indian tribe requests exclusion from an index zone for less than all of its leases, ONRR will approve the request only if the excluded leases may be segregated into one or more groups based on separate fields within the reservation.. (2) An Indian tribe may ask ONRR S to terminate exclusion of its leases from valuation under this section. . . .. (3) The Indian tribe's request to ONRR under either paragraph (f)(1) or (2) of this section must be in the form of a tribal resolution. . . .. ---------------------------------------------------------------------------------------------------------------- 1206.173(a)(1)................ How do I calculate the 2 12 24 alternative methodology for dual accounting? (a) Electing a dual accounting method.. (1) . . . You may elect to perform the dual accounting calculation according to either Sec. 1206.176(a) (called actual dual accounting), or paragraph (b) of this section (called the alternative methodology for dual accounting).. ---------------------------------------------------------------------------------------------------------------- 1206.173(a)(2)................ (a) Electing a dual accounting Burden covered under Sec. 1206.173(a)(1). method. (2) You must make a separate election to use the alternative methodology for dual accounting for your Indian leases in each ONRR S-designated area. . . .. ---------------------------------------------------------------------------------------------------------------- 1206.174(a)(4)(ii)............ How do I value gas production Burden covered under OMB Control Number 1012- when an index-based method 0004. Burden covered under Sec. 1210.52. cannot be used? (a) Situations in which an index- based method cannot be used.. (4)(ii) If the major portion value is higher, you must submit an amended Form ONRR- 2014 to ONRR by the due date specified in the written notice from ONRR of the major portion value. . . .. ---------------------------------------------------------------------------------------------------------------- [[Page 13625]] 1206.174(b)(1)(i) and (iii); (b) Arm's-length contracts...... AUDIT PROCESS. See note. (b)(2); (d)(2). (1)(i) You have the burden of demonstrating that your contract is arm's-length. . . .. (iii) . . . In these circumstances, ONRR will notify you and give you an opportunity to provide written information justifying your value. . . .. (2) ONRR may require you to certify that your arm's-length contract provisions include all of the consideration the buyer pays, either directly or indirectly, for the gas, residue gas, or gas plant product.. (d) Supporting data............. (2) You must make all such data available upon request to the authorized ONRR or Indian representatives, to the Office of the Inspector General of the Department, or other authorized persons. . . .. ---------------------------------------------------------------------------------------------------------------- 1206.174(d)................... (d) Supporting data. If you Burden covered under OMB Control Number 1012- determine the value of 0004. production under paragraph (c) of this section, you must retain all data relevant to determination of royalty value. ---------------------------------------------------------------------------------------------------------------- 1206.174(f)................... (f) Value guidance. You may ask 40 1 40 ONRR for guidance in determining value. You may propose a valuation method to ONRR. Submit all available data related to your proposal and any additional information ONRR deems necessary. . .. ---------------------------------------------------------------------------------------------------------------- 1206.175(d)(4)................ How do I determine quantities 20 1 20 and qualities of production for computing royalties? (d)(4) You may request ONRR approval of other methods for determining the quantity of residue gas and gas plant products allocable to each lease. . . .. ---------------------------------------------------------------------------------------------------------------- 1206.176(b)................... How do I perform accounting for Burden covered under Sec. 1206.173(a)(1). comparison?. (b) If you are required to account for comparison, you may elect to use the alternative dual accounting methodology provided for in Sec. 1206.173 instead of the provisions in paragraph (a) of this section.. ---------------------------------------------------------------------------------------------------------------- 1206.176(c)................... (c) . . . If you do not perform Burden covered under Sec. dual accounting, you must 1206.172(b)(1)(ii). certify to ONRR that gas flows into such a pipeline before it is processed. ---------------------------------------------------------------------------------------------------------------- Transportation Allowances ---------------------------------------------------------------------------------------------------------------- 1206.177(c)(2) and (c)(3)..... What general requirements Burden covered under Sec. 1206.56(b)(2). regarding transportation allowances apply to me? (c)(2) If you ask ONRR, ONRR may approve a transportation allowance deduction in excess of the limitation in paragraph (c)(1) of this section. . . .. (3) Your application for exception (using Form ONRR- 4393, Request to Exceed Regulatory Allowance Limitation) must contain all relevant and supporting documentation necessary for ONRR to make a determination.. ---------------------------------------------------------------------------------------------------------------- 1206.178(a)(1)(i)............. How do I determine a 1 18 18 transportation allowance?. (a) Determining a transportation allowance under an arm's-length contract.. (1)(i) . . . You are required to submit to ONRR a copy of your arm's-length transportation contract(s) and all subsequent amendments to the contract(s) within 2 months of the date ONRR receives your report which claims the allowance on the Form ONRR-2014.. ---------------------------------------------------------------------------------------------------------------- [[Page 13626]] 1206.178(a)(1)(iii)........... (a) Determining a transportation AUDIT PROCESS. See note. allowance under an arm's-length contract. (1)(iii) If ONRR determines that the consideration paid under an arm's-length transportation contract does not reflect the value of the transportation because of misconduct by or between the contracting parties . . . In these circumstances, ONRR will notify you and give you an opportunity to provide written information justifying your transportation costs.. ---------------------------------------------------------------------------------------------------------------- 1206.178(a)(2)(i) and (ii).... (a) Determining a transportation 20 1 20 allowance under an arm's-length contract. (2)(i) . . . you cannot take an allowance for the costs of transporting lease production that is not royalty bearing without ONRR approval, or without lessor approval on tribal leases.. (ii) As an alternative to paragraph (a)(2)(i) of this section, you may propose to ONRR a cost allocation method based on the values of the products transported. . . .. ---------------------------------------------------------------------------------------------------------------- 1206.178(a)(3)(i) and (ii).... (a) Determining a transportation 40 1 40 allowance under an arm's-length contract. (3)(i) If your arm's-length transportation contract includes both gaseous and liquid products and the transportation costs attributable to each cannot be determined from the contract, you must propose an allocation procedure to ONRR. . . .. (ii) You are required to submit all relevant data to support your allocation proposal. . . .. ---------------------------------------------------------------------------------------------------------------- 1206.178(b)(1)(ii)............ (b) Determining a transportation 15 5 75 allowance under a non-arm's- length contract or no contract. (1)(ii) . . . You must submit the actual cost information to support the allowance to ONRR on Form ONRR-4295, Gas Transportation Allowance Report, within 3 months after the end of the 12-month period to which the allowance applies. . . .. ---------------------------------------------------------------------------------------------------------------- 1206.178(b)(2)(iv)............ (b) Determining a transportation 20 1 20 allowance under a non-arm's- length contract or no contract. (2)(iv) You may use either depreciation with a return on undepreciated capital investment or a return on depreciable capital investment. . . . you may not later elect to change to the other alternative without ONRR approval.. ---------------------------------------------------------------------------------------------------------------- 1206.178(b)(2)(iv)(A)......... (b) Determining a transportation 20 1 20 allowance under a non-arm's- length contract or no contract. (2)(iv)(A) . . . Once you make an election, you may not change methods without ONRR approval. . . .. ---------------------------------------------------------------------------------------------------------------- 1206.178(b)(3)(i)............. (b) Determining a transportation 40 1 40 allowance under a non-arm's- length contract or no contract. (3)(i) . . . Except as provided in this paragraph, you may not take an allowance for transporting a product that is not royalty bearing without ONRR approval.. ---------------------------------------------------------------------------------------------------------------- 1206.178(b)(3)(ii)............ (b) Determining a transportation 20 1 20 allowance under a non-arm's- length contract or no contract. (3)(ii) As an alternative to the requirements of paragraph (b)(3)(i) of this section, you may propose to ONRR a cost allocation method based on the values of the products transported. . . .. ---------------------------------------------------------------------------------------------------------------- 1206.178(b)(5)................ (b) Determining a transportation 40 1 40 allowance under a non-arm's- length contract or no contract. (5) If you transport both gaseous and liquid products through the same transportation system, you must propose a cost allocation procedure to ONRR. . . . You are required to submit all relevant data to support your proposal. . . .. ---------------------------------------------------------------------------------------------------------------- 1206.178(d)(1)................ (d) Reporting your AUDIT PROCESS. See note. transportation allowance. (1) If ONRR requests, you must submit all data used to determine your transportation allowance . . .. ---------------------------------------------------------------------------------------------------------------- [[Page 13627]] 1206.178(d)(2), (e), and (d) Reporting your Burden covered under OMB Control Number 1012- (f)(1). transportation allowance. 0004. Burden covered under Sec. 1210.52. (2) You must report transportation allowances as a separate entry on Form ONRR- 2014. . . .. (e) Adjusting incorrect allowances. If for any month the transportation allowance you are entitled to is less than the amount you took on Form ONRR-2014, you are required to report and pay additional royalties due, plus interest computed under 30 CFR 1218.54 from the first day of the first month you deducted the improper transportation allowance until the date you pay the royalties due. . . .. (f) Determining allowable costs for transportation allowances. . . .. (1) Firm demand charges paid to pipelines. . . . You must modify the Form ONRR-2014 by the amount received or credited for the affected reporting period.. ---------------------------------------------------------------------------------------------------------------- Processing Allowances ---------------------------------------------------------------------------------------------------------------- 1206.180(a)(1)(i)............. How do I determine an actual 1 2 2 processing allowance?. (a) Determining a processing allowance if you have an arm's- length processing contract.. (1)(i) . . . You have the burden of demonstrating that your contract is arm's-length. You are required to submit to ONRR a copy of your arm's-length contract(s) and all subsequent amendments to the contract(s) within 2 months of the date ONRR receives your first report that deducts the allowance on the Form ONRR-2014.. ---------------------------------------------------------------------------------------------------------------- 1206.180(a)(1)(iii)........... (a) Determining a processing AUDIT PROCESS. See note. allowance if you have an arm's- length processing contract. (1)(iii) If ONRR determines that the consideration paid under an arm's-length processing contract does not reflect the value of the processing because of misconduct by or between the contracting parties . . . In these circumstances, ONRR will notify you and give you an opportunity to provide written information justifying your processing costs.. ---------------------------------------------------------------------------------------------------------------- 1206.180(a)(3)................ (a) Determining a processing 40 1 40 allowance if you have an arm's- length processing contract. (3) If your arm's-length processing contract includes more than one gas plant product and the processing costs attributable to each product cannot be determined from the contract, you must propose an allocation procedure to ONRR. . . . You are required to submit all relevant data to support your proposal. . . .. ---------------------------------------------------------------------------------------------------------------- 1206.180(b)(1)(ii)............ (b) Determining a processing 20 12 1200 allowance if you have a non- arm's-length contract or no contract. (1)(ii) . . . You must submit the actual cost information to support the allowance to ONRR on Form ONRR-4109, Gas Processing Allowance Summary Report, within 3 months after the end of the 12-month period for which the allowance applies. . . .. ---------------------------------------------------------------------------------------------------------------- 1206.180(b)(2)(iv)............ (b) Determining a processing 20 1 20 allowance if you have a non- arm's-length contract or no contract. (2)(iv) You may use either depreciation with a return on undepreciable capital investment or a return on depreciable capital investment. . . . you may not later elect to change to the other alternative without ONRR approval.. ---------------------------------------------------------------------------------------------------------------- 1206.180(b)(2)(iv) (A)........ (b) Determining a processing 20 1 20 allowance if you have a non- arm's-length contract or no contract. (2)(iv)(A) . . . Once you make an election, you may not change methods without ONRR approval. . . .. ---------------------------------------------------------------------------------------------------------------- 1206.180(b)(3)................ (b) Determining a processing 20 1 20 allowance if you have a non- arm's-length contract or no contract. (3) Your processing allowance under this paragraph (b) must be determined based upon a calendar year or other period if you and ONRR agree to an alternative. ---------------------------------------------------------------------------------------------------------------- [[Page 13628]] 1206.180(c)(1)................ (c) Reporting your processing AUDIT PROCESS. See note. allowance. (1) If ONRR requests, you must submit all data used to determine your processing allowance. . . .. ---------------------------------------------------------------------------------------------------------------- 1206.180(c)(2) and (d)........ (c) Reporting your processing Burden covered under OMB Control Number 1012- allowance. 0004. Burden covered under Sec. 1210.52. (2) You must report gas processing allowances as a separate entry on the Form ONRR- 2014. . . .. (d) Adjusting incorrect processing allowances. If for any month the gas processing allowance you are entitled to is less than the amount you took on Form ONRR-2014, you are required to pay additional royalties, plus interest computed under 30 CFR 1218.54 from the first day of the first month you deducted a processing allowance until the date you pay the royalties due. . . .. ---------------------------------------------------------------------------------------------------------------- 1206.181(c)................... How do I establish processing 40 1 40 costs for dual accounting purposes when I do not process the gas? (c) A proposed comparable processing fee submitted to either the tribe and ONRR (for tribal leases) or ONRR (for allotted leases) with your supporting documentation submitted to ONRR. If ONRR does not take action on your proposal within 120 days, the proposal will be deemed to be denied and subject to appeal to the ONRR Director under 30 CFR part 1290.. ---------------------------------------------------------------------------------------------------------------- PART 1207--SALES AGREEMENTS OR CONTRACTS GOVERNING THE DISPOSAL OF LEASE PRODUCTS Subpart A--General Provisions ---------------------------------------------------------------------------------------------------------------- 1207.4(b)..................... Contracts made pursuant to old AUDIT PROCESS. See note. form leases. (b) The stipulation, the substance of which must be included in the contract, or be made the subject matter of a separate instrument properly identifying the leases affected thereby, is as follows . . .. ---------------------------------------------------------------------------------------------------------------- 1207.5........................ Contract and sales agreement AUDIT PROCESS. See note. retention. Copies of all sales contracts, posted price bulletins, etc., and copies of all agreements, other contracts, or other documents which are relevant to the valuation of production are to be maintained by the lessee and made available upon request during normal working hours to authorized ONRR, State or Indian representatives, other ONRR or BLM officials, auditors of the General Accounting Office, or other persons authorized to receive such documents, or shall be submitted to ONRR within a reasonable period of time, as determined by ONRR. Any oral sales arrangement negotiated by the lessee must be placed in written form and retained by the lessee. Records shall be retained in accordance with 30 CFR part 1212.. ---------------------------------------------------------------------------------------------------------------- Total Burden.............. ................................ .............. 148 2,269 ---------------------------------------------------------------------------------------------------------------- Note: AUDIT PROCESS--The Office of Regulatory Affairs determined that the audit process is exempt from the Paperwork Reduction Act of 1995 because ONRR staff asks non-standard questions to resolve exceptions. Estimated Annual Reporting and Recordkeeping ``Non-hour'' Cost Burden: We have identified no ``non-Hour'' cost burdens. Public Disclosure Statement: The PRA (44 U.S.C. 3501 et seq.) 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. III. Request for Comments Section 3506(c)(2)(A) of the PRA requires each agency to ``. . . provide 60-day notice in the Federal Register . . . and otherwise consult with members of the public and affected agencies concerning each proposed collection of information . . .'' Agencies must specifically solicit comments to: (1) Evaluate whether the proposed collection of information is necessary for the agency to perform its duties, including whether the information is useful; (2) evaluate the accuracy of the agency's estimate of the burden of the proposed collection of information; (3) enhance the quality, usefulness, and clarity of the information that ONRR collects; and (4) minimize the burden on the respondents, including the use of automated collection techniques or other forms of information technology. The PRA also requires agencies to estimate the total annual reporting ``non-hour cost'' burden to respondents or record-keepers resulting from the collection of information. If you have costs to generate, maintain, and disclose this information, you should comment and provide your total capital and startup cost components or annual operation, maintenance, and purchase of service components. You should describe the methods that you use to estimate (1) major cost factors, including system and technology acquisition, (2) expected useful life of capital equipment, (3) discount rate(s), and (4) the period over which you incur costs. [[Page 13629]] Capital and startup costs include, among other items, computers and software that you purchase to prepare for collecting information and monitoring, sampling, 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 Federal Government; or (iv) as part of customary and usual business or private practices. We will summarize written responses to this notice and address them in our ICR submission for OMB approval, including appropriate adjustments to the estimated burden. We will provide a copy of the ICR to you, free of charge, upon request. We also will post the ICR at http://www.onrr.gov/Laws_R_D/FRNotices/ICR0103.htm. Public Comment Policy: ONRR will post all comments, including names and addresses of respondents at http://www.regulations.gov. Before including Personally Identifiable Information (PII), such as your address, phone number, email address, or other personal information in your comment(s), you should be aware that your entire comment (including PII) may be made available to the public at any time. While you may ask us, in your comment, to withhold PII from public view, we cannot guarantee that we will be able to do so. Dated: March 3, 2015. Gregory J. Gould, Director, Office of Natural Resources Revenue. [FR Doc. 2015-05854 Filed 3-13-15; 8:45 am] BILLING CODE 4335-30-P
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Notice of extension. | |
| Dates | Submit written comments on or before May 15, 2015. | |
| Contact | For any questions, contact Mr. Luis Aguilar, telephone (303) 231-3418, or email at [email protected] You may also contact Mr. Aguilar to obtain copies, at no cost, of (1) the ICR, (2) any associated forms, and (3) the regulations that require us to collect the information. | |
| FR Citation | 80 FR 13619 |