80_FR_29839 80 FR 29740 - Information Collection Activities: Relief or Reduction in Royalty Rates; Proposed Collection; Comment Request

80 FR 29740 - Information Collection Activities: Relief or Reduction in Royalty Rates; Proposed Collection; Comment Request

DEPARTMENT OF THE INTERIOR
Bureau of Safety and Environmental Enforcement

Federal Register Volume 80, Issue 99 (May 22, 2015)

Page Range29740-29743
FR Document2015-12304

To comply with the Paperwork Reduction Act of 1995 (PRA), BSEE is inviting comments on a collection of information that we will submit to the Office of Management and Budget (OMB) for review and approval. The information collection request (ICR) concerns a renewal to the paperwork requirements in the regulations under Relief or Reduction in Royalty Rates.

Federal Register, Volume 80 Issue 99 (Friday, May 22, 2015)
[Federal Register Volume 80, Number 99 (Friday, May 22, 2015)]
[Notices]
[Pages 29740-29743]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-12304]


-----------------------------------------------------------------------

DEPARTMENT OF THE INTERIOR

Bureau of Safety and Environmental Enforcement (BSEE)

[Docket ID BSEE-2015-0008; OMB Control Number 1014-0005; 15XE1700DX 
EEEE500000 EX1SF0000.DAQ000]


Information Collection Activities: Relief or Reduction in Royalty 
Rates; Proposed Collection; Comment Request

ACTION: 60-Day notice.

-----------------------------------------------------------------------

SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), BSEE 
is inviting comments on a collection of information that we will submit 
to the Office of Management and Budget (OMB) for review and approval. 
The information collection request (ICR) concerns a renewal to the 
paperwork requirements in the regulations under Relief or Reduction in 
Royalty Rates.

DATES: You must submit comments by July 21, 2015.

ADDRESSES: You may submit comments by either of the following methods 
listed below.
     Electronically go to http://www.regulations.gov. In the 
Search box, enter BSEE-2015-0008 then click search. Follow the 
instructions to submit public comments and view all related materials. 
We will post all comments.
     Email cheryl.blundon@bsee.gov. Mail or hand-carry comments 
to the Department of the Interior; Bureau of Safety and Environmental 
Enforcement; Regulations and Standards Branch; ATTN: Cheryl Blundon; 
45600 Woodland Road, Sterling, VA 20166. Please reference ICR 1014-0005 
in your comment and include your name and return address.

FOR FURTHER INFORMATION CONTACT: Cheryl Blundon, Regulations and 
Standards Branch at (703) 787-1607 to request additional information 
about this ICR.

SUPPLEMENTARY INFORMATION: 
    Title: 30 CFR part 203, Relief or Reduction in Royalty Rates.
    OMB Control Number: 1014-0005.
    Abstract: The Outer Continental Shelf (OCS) Lands Act, 43 U.S.C. 
1337, as amended by the OCS Deep Water Royalty Relief Act (DWRRA), 
Public Law 104-58 and the Energy Policy Act of 2005, Public Law 109-
058, gives the Secretary of the Interior (Secretary) the authority to 
reduce or eliminate royalty or any net profit share specified in OCS 
oil and gas leases to promote increased production. The DWRRA also 
authorized the Secretary to suspend royalties when necessary to promote 
development or recovery of marginal resources on producing or non-
producing leases in the Gulf of Mexico (GOM) west of 87 degrees, 30 
minutes West longitude.
    Section 302 of the DWRRA provides that new production from a lease 
in existence on November 28, 1995, in a water depth of at least 200 
meters, and in the GOM west of 87 degrees, 30 minutes West longitude 
qualifies for royalty suspension in certain situations. To grant a 
royalty suspension, the Secretary must determine that the new 
production or development would not be economic in the absence of 
royalty relief. The Secretary must then determine the volume of 
production on which no royalty would be due in order to make the new 
production from the lease economically viable. This determination is 
done on a case-by-case basis. Production from leases in the same water 
depth and area issued after November 28, 2000, also can qualify for 
royalty suspension in addition to any that may be included in their 
lease terms.
    In addition, Federal policy and statute require us to recover the 
cost of services that confer special benefits to identifiable non-
Federal recipients. The Independent Offices Appropriation Act (31 
U.S.C. 9701), Office of Management and Budget (OMB) Circular A-25, and 
the Omnibus Appropriations Bill (Pub. L. 104-134, 110 Stat. 1321, April 
26, 1996) authorize the Bureau of Safety and Environmental Enforcement 
(BSEE) to collect these fees to reimburse us for the cost to process 
applications or assessments.
    Regulations at 30 CFR part 203 implement these statutes and policy 
and require respondents to pay a fee to request royalty relief. The OMB 
approved the information collection burden under this collection 1014-
0005. Section 203.3(a) states that, ``We will specify the necessary 
fees for each of the types of royalty-relief applications and possible 
BSEE audits in a Notice to Lessees. We will periodically update the 
fees to reflect changes in costs, as well as provide other information 
necessary to administer royalty relief.''
    This authority and responsibility are among those delegated BSEE. 
The regulations at 30 CFR part 203, are the subject of this collection. 
This request also covers the related Notices to Lessees and Operators 
(NTLs) that BSEE issues to clarify, supplement, or provide additional 
guidance on some aspects
    We use the information to make decisions on the economic viability 
of leases requesting a suspension or elimination of royalty or net 
profit share. These decisions have enormous monetary impact on both the 
lessee and the Federal Government. Royalty relief can lead to increased 
production of natural gas and oil, creating profits for lessees, and 
royalty and tax revenues for the Federal Government that they might not 
otherwise receive. We could not make an informed decision without the 
collection of information required by 30 CFR part 203.
    No questions of a sensitive nature are asked. BSEE will protect 
information from respondents considered proprietary under the Freedom 
of Information Act (5 U.S.C. 552) and DOI's implementing regulations 
(43 CFR 2) and under regulations at 30 CFR 203.61, How do I assess my 
chances for getting relief? and 30 CFR 250.197, Data and information to 
be made available to the public or for limited inspection. Responses 
are mandatory or are required to obtain or retain a benefit.
    Frequency: On occasion or as a result of situations encountered 
depending upon the requirements.
    Description of Respondents: Potential respondents comprise Federal 
oil, gas, or sulphur lessees and/or operators.
    Estimated Reporting and Recordkeeping Hour Burden: The currently 
approved annual reporting burden for this collection is 23,329 hours 
and $117,441 non-hour cost burdens. In this submission, we are 
requesting a total of 724 burden hours and $27,950 non-hour cost 
burdens. The following chart details the individual components and 
respective hour burden estimates of this ICR. In calculating the 
burdens, we assumed that respondents perform certain requirements in 
the normal course of their activities. We consider these to be usual 
and customary and took that into account in estimating the burden.

[[Page 29741]]



----------------------------------------------------------------------------------------------------------------
                                                                   Application/audit fees (rounded)
                                                     -----------------------------------------------------------
   Citation 30 CFR 203 and         Reporting or                                                         Annual
       related NTL(s)              recordkeeping                           Average number of annual     burden
                                   requirement +         Hour burden              responses              hours
                                                                                                       (rounded)
----------------------------------------------------------------------------------------------------------------
2; 3; 4; 70.................     These sections contain general references to submitting reports,              0
                                 applications, requests, copies, demonstrating qualifications, for
                                    BSEE approval--burdens covered under specific requirements.
----------------------------------------------------------------------------------------------------------------
               Royalty Relief for Ultra-Deep Gas Wells and Deep Gas Wells on Shallow Water Leases
----------------------------------------------------------------------------------------------------------------
31(c).......................  Request a refund of or  1................  1 request..................           1
                               recoup royalties from
                               qualified ultra-deep
                               wells.
35(a); 44(a); 47............  Notify BSEE of intent   1................  2 notifications............           2
                               to begin drilling and
                               depth of target.
35(c), (d); 44(b), (d), (e).  Notify BSEE that        2................  2 notifications............           4
                               production has begun,
                               request confirmation
                               of the size of RSV--
                               provide any/all
                               supporting
                               documentation.
35(d); 44(e)................  Request to extend the   4................  1 request..................           4
                               deadline for
                               beginning production
                               with required
                               supporting
                               documentation.
41(d).......................  Request a refund of or  1................  1 request..................           1
                               recoup royalties from
                               qualified wells >200
                               meters but <400
                               meters.
35(a); 44(a); 47(a).........  Notify BSEE of intent   1................  2 notifications............           2
                               to begin drilling.
35(c), (d); 44(b), (d), (e).  Notify BSEE that        2................  2 notifications............           4
                               production has begun,
                               request confirmation
                               of the size of RSV,
                               provide any/all
                               supporting
                               documentation (i.e.,
                               request to extend
                               deadline, credible
                               activity schedule,
                               etc).
46..........................  Provide data from well  8................  1 response.................           8
                               to confirm and attest
                               well drilled was an
                               unsuccessful
                               certified well with
                               supporting
                               documentation and
                               request supplement
                               (RSS).
                                                     -----------------------------------------------------------
49(b).......................  Notify BSEE or             BSEE SOL requires that this reg text stay for legacy
                               decision to exercise      purposes only. Last time any respondent could use was
                               option to replace one                    2004; hence, no burden.
                               set of deep gas
                               royalty suspension
                               terms for another set
                               of such terms.
                                                     -----------------------------------------------------------
    Subtotal................  ......................  .................  8 responses................          20
----------------------------------------------------------------------------------------------------------------
                                    End of Life and Special Royalty Relief *
----------------------------------------------------------------------------------------------------------------
51; 83; 84; NTL.............  Application--leases     100..............  1 application every 10               10
                               that generate                              years.
                               earnings that cannot
                               sustain continued
                               production (end-of-
                               life lease); required
                               supporting
                               documentation;
                               include payment
                               confirmation receipt.
                                                     -----------------------------------------------------------
                                                                  application 1/10 x $8,000 = $800 *
                                                                    audit 1/10 x $12,500 = $1,250.
                                                     -----------------------------------------------------------
52..........................  Demonstrate ability to  1................  1 response.................           1
                               qualify/requalify for
                               royalty relief or to
                               re-qualify.
55..........................  Renounce relief         1................  1 letter every 10 years....           1
                               arrangement (end-of-
                               life) (seldom, if
                               ever will be used;
                               minimal burden to
                               prepare letter).
80; NTL.....................  Application--apart      250..............  1 application every 10               25
                               from formal programs                       years.
                               for royalty relief
                               for marginal
                               producing lease
                               (Special Case
                               Relief); required
                               supporting
                               documentation;
                               include payment
                               confirmation receipt.
                                                     -----------------------------------------------------------
                                                                 application 1/10 x $8,000 ** = $ 800.
                                                                    audit 1/10 x $12,500 = $1,250.
                                                     -----------------------------------------------------------
80; NTL.....................  Application--apart      1,000............  1 application every 10              100
                               from formal programs                       years.
                               for royalty relief
                               for marginal
                               expansion project or
                               marginal non-
                               producing lease
                               (Special Case
                               Relief); required
                               supporting
                               documentation;
                               include payment
                               confirmation receipt.
                                                     -----------------------------------------------------------
                                                               application 1/10 x $19,500 ** = $ 1,950.
                                                                    audit 1/10 x $18,750 = $1,875.
                                                     -----------------------------------------------------------
    Subtotal................  ......................  .................  2 responses (rounded)......         137
                                                                        ----------------------------------------
                                                                                       $7,925 fees
----------------------------------------------------------------------------------------------------------------

[[Page 29742]]

 
                                                   CPA Report
----------------------------------------------------------------------------------------------------------------
81; 83-90; 63...............  Required reports;             Burden included with applications.                 0
                               extension
                               justification.
                                                     -----------------------------------------------------------
                                                            1 CPA report x $45,000/10 each report = $4,500.
                                                     -----------------------------------------------------------
    Subtotal................  ......................  .................  1 response.................      $4,500
----------------------------------------------------------------------------------------------------------------
                                      Deep Water Royalty Relief Act (DWRAA)
----------------------------------------------------------------------------------------------------------------
61; 62; 64; 65; 71; 83; 85-   Application--preview    900..............  1 application every 10               90
 89;.                          assessment (seldom if                      years.
NTL.........................   ever will be used as
                               applicants generally
                               opt for binding
                               determination by BSEE
                               instead) and required
                               supporting
                               documentation;
                               include payment
                               confirmation receipt.
                                                     -----------------------------------------------------------
                                                                 application 1/10 x $28,500 = $2,850.
                                                     -----------------------------------------------------------
62; 64; 65; 71; 83; 85-89;    Application--leases in  2,000............  1 application every 10              200
 NTL.                          designated areas of                        years.
                               GOM deep water
                               acquired in lease
                               sale before 11/28/95
                               or after 11/28/00 and
                               are producing (deep
                               water expansion
                               project); required
                               supporting
                               documentation;
                               include payment
                               confirmation receipt.
                                                     -----------------------------------------------------------
                                                                 application 1/10 x $19,500 = $1,950.
                                                     -----------------------------------------------------------
62; 64; 65; 203.71; 81; 83;   Application--leases in  2,000............  1 application every 10              200
 85-89; NTL.                   designated areas of                        years.
                               deep water GOM,
                               acquired in lease
                               sale before 11/28/95
                               or after 11/28/00
                               that have not
                               produced (pre-act or
                               post-2000 deep water
                               leases); required
                               supporting
                               documentation;
                               include payment
                               confirmation receipt.
                                                     -----------------------------------------------------------
                                                                 application 1/10 x $34,000 = $3,400 *
                                                                    audit 1/10 x $37,500 = $3,750.
                                                     -----------------------------------------------------------
69; NTL.....................  Application--short      40...............  1 application every 10                4
                               form to add or assign                      years.
                               pre-Act lease and
                               required supporting
                               documentation;
                               include payment
                               confirmation receipt.
                                                     -----------------------------------------------------------
                                                                   application 1/10 x $1,000 = $100.
                                                     -----------------------------------------------------------
70; 81; 90; 76(c), (e); NTL.  Submit post-production  50...............  1 report * every 10 years..           5
                               development report;
                               extension
                               justification. #
                               Reserve right to
                               audit (1 audit every
                               6 years) after
                               production starts to
                               confirm cost
                               estimates of the
                               application; include
                               payment confirmation
                               receipt.
                                                     -----------------------------------------------------------
                                                                   #1 audit 1/10 x $18,750 = $1,875.
                                                     -----------------------------------------------------------
74; 75; 76(d); NTL..........  Redetermination and     500..............  1 redetermination every 10           50
                               required supporting                        years.
                               documentation;
                               include payment
                               confirmation receipt.
                                                     -----------------------------------------------------------
                                                                 application 1/10 x $16,000 = $1,600 *
                                                     -----------------------------------------------------------
77..........................  Renounce relief         1................  1 letter every 10 years....           1
                               arrangement (deep
                               water) (seldom, if
                               ever will be used;
                               minimal burden to
                               prepare letter).
----------------------------------------------------------------------------------------------------------------
79..........................  Request                  This was a regulatory requirement for leases            0
                               reconsideration of                  issued prior to 1995.
                               BSEE field
                               designation.
----------------------------------------------------------------------------------------------------------------
79(c); 76(b)................  Request extension of    2................  1 request every 10 years...           1
                               deadline to start
                               construction.
----------------------------------------------------------------------------------------------------------------
81; 83-90...................  Required reports;             Burden included with applications.                 0
                               extension
                               justification.
                                                     -----------------------------------------------------------
    Subtotal................  ......................  .................  3 responses................         551
                                                                        ----------------------------------------
                                                                                       $15,525 fees
----------------------------------------------------------------------------------------------------------------

[[Page 29743]]

 
                                                  Recordkeeping
----------------------------------------------------------------------------------------------------------------
81(d).......................  Retain supporting cost  8................  2 recordkeepers............          16
                               records for post-
                               production
                               development/
                               fabrication reports
                               (records retained as
                               usual/customary
                               business practice;
                               minimal burden to
                               make available at
                               BSEE request).
                                                     -----------------------------------------------------------
    Subtotal................  ......................  .................  2 recordkeepers............          16
                                                     -----------------------------------------------------------
    Total Annual Burden.....  ......................  .................  16 Responses...............         724
                                                     -----------------------------------------------------------
                                                                                       $27,950 Fees
----------------------------------------------------------------------------------------------------------------
+ In the future, BSEE may require electronic filing of some submissions.
* CPA certification expense burden also imposed on applicant.
** These applications currently do not have a set fee since they are done on a case-by-case basis.
Note: Applications include numerous items such as: transmittal letters, letters of request, modifications to
  applications, reapplications, etc.

    Estimated Reporting and Recordkeeping Non-Hour Cost Burden: We have 
identified several non-hour cost burdens for this collection. Under 
Sec.  203.3, we charge lessees (respondents) applying for royalty 
relief an amount that covers the cost of processing their applications 
and auditing financial data when necessary to determine the proposed 
development's economic situation. As discussed in section A.1, these 
fees may be revised as necessary to recover our costs in processing 
royalty relief applications.
    This submission includes these audits and their associated fees. 
Since there have been no applications approved in the last 14 years 
under our formal programs for deepwater royalty relief or end of life, 
so their estimated number of submittals is one every 10 years; but we 
include the audit and their respective fees due to the potential 
situation arising.
    We estimate this cost burden to be approximately $23,450 annually. 
Refer to the chart in Section A.12 of this supporting statement for a 
breakdown.
    Under Sec.  203.81, a report prepared by an independent certified 
public accountant (CPA) must accompany the application and post-
production report (expansion project, short form, and preview 
assessment applications are excluded). The OCS Lands Act applications 
will require this report only once; the DWRRA applications will require 
this report at two stages--with the application and post-production 
development report for successful applicants. We estimate an average 
cost for a report is $45,000 and that one CPA certification, during the 
information collection extension period, will be necessary if the 
applications are approved. This annual cost burden is $45,000/10 years 
= $4,500.
    Therefore, the total of the two burdens under Section A.13 (a) and 
(b) is estimated at $27,950. We have not identified any other non-hour 
cost burdens associated with this collection of information.
    Public Disclosure Statement: The PRA (44 U.S.C. 3501, et seq.) 
provides that an agency may not conduct or sponsor a collection of 
information unless it displays a currently valid OMB control number. 
Until OMB approves a collection of information, you are not obligated 
to respond.
    Comments: Before submitting an ICR to OMB, PRA section 
3506(c)(2)(A) requires each agency ``. . . to provide notice . . . and 
otherwise consult with members of the public and affected agencies 
concerning each proposed collection of information . . .''. Agencies 
must specifically solicit comments to: (a) Evaluate whether the 
collection is necessary or useful; (b) evaluate the accuracy of the 
burden of the proposed collection of information; (c) enhance the 
quality, usefulness, and clarity of the information to be collected; 
and (d) minimize the burden on the respondents, including the use of 
technology.
    Agencies must also estimate the non-hour paperwork cost burdens to 
respondents or recordkeepers resulting from the collection of 
information. Therefore, if you have other than hour burden 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. For further 
information on this burden, refer to 5 CFR 1320.3(b)(1) and (2), or 
contact the Bureau representative listed previously in this notice.
    We will summarize written responses to this notice and address them 
in our submission for OMB approval. As a result of your comments, we 
will make any necessary adjustments to the burden in our submission to 
OMB.
    Public Comment Procedures: Before including your address, phone 
number, email address, or other personal identifying information in 
your comment, you should be aware that your entire comment--including 
your personal identifying information--may be made publicly available 
at any time. While you can ask us in your comment to withhold your 
personal identifying information from public review, we cannot 
guarantee that we will be able to do so.

    Dated: May 14, 2015.
Douglas W. Morris,
Chief, Office of Offshore Regulatory Programs.
[FR Doc. 2015-12304 Filed 5-21-15; 8:45 am]
BILLING CODE 4310-VH-P



                                                    29740                            Federal Register / Vol. 80, No. 99 / Friday, May 22, 2015 / Notices

                                                    any necessary adjustments to the burden                 FOR FURTHER INFORMATION CONTACT:                      approved the information collection
                                                    in our submission to OMB.                               Cheryl Blundon, Regulations and                       burden under this collection 1014–0005.
                                                      Public Comment Procedures: Before                     Standards Branch at (703) 787–1607 to                 Section 203.3(a) states that, ‘‘We will
                                                    including your address, phone number,                   request additional information about                  specify the necessary fees for each of the
                                                    email address, or other personal                        this ICR.                                             types of royalty-relief applications and
                                                    identifying information in your                         SUPPLEMENTARY INFORMATION:                            possible BSEE audits in a Notice to
                                                    comment, you should be aware that                         Title: 30 CFR part 203, Relief or                   Lessees. We will periodically update the
                                                    your entire comment—including your                      Reduction in Royalty Rates.                           fees to reflect changes in costs, as well
                                                    personal identifying information—may                      OMB Control Number: 1014–0005.                      as provide other information necessary
                                                    be made publicly available at any time.                   Abstract: The Outer Continental Shelf               to administer royalty relief.’’
                                                    While you can ask us in your comment                    (OCS) Lands Act, 43 U.S.C. 1337, as                      This authority and responsibility are
                                                    to withhold your personal identifying                   amended by the OCS Deep Water                         among those delegated BSEE. The
                                                    information from public review, we                      Royalty Relief Act (DWRRA), Public                    regulations at 30 CFR part 203, are the
                                                    cannot guarantee that we will be able to                Law 104–58 and the Energy Policy Act                  subject of this collection. This request
                                                    do so.                                                  of 2005, Public Law 109–058, gives the                also covers the related Notices to
                                                      Dated: May 14, 2015.                                  Secretary of the Interior (Secretary) the             Lessees and Operators (NTLs) that BSEE
                                                    Douglas W. Morris,                                      authority to reduce or eliminate royalty              issues to clarify, supplement, or provide
                                                                                                            or any net profit share specified in OCS              additional guidance on some aspects
                                                    Chief, Office of Offshore Regulatory Programs.
                                                                                                                                                                     We use the information to make
                                                    [FR Doc. 2015–12302 Filed 5–21–15; 8:45 am]             oil and gas leases to promote increased
                                                                                                                                                                  decisions on the economic viability of
                                                    BILLING CODE 4310–VH–P                                  production. The DWRRA also
                                                                                                                                                                  leases requesting a suspension or
                                                                                                            authorized the Secretary to suspend                   elimination of royalty or net profit
                                                                                                            royalties when necessary to promote                   share. These decisions have enormous
                                                    DEPARTMENT OF THE INTERIOR                              development or recovery of marginal                   monetary impact on both the lessee and
                                                                                                            resources on producing or non-                        the Federal Government. Royalty relief
                                                    Bureau of Safety and Environmental                      producing leases in the Gulf of Mexico
                                                    Enforcement (BSEE)                                                                                            can lead to increased production of
                                                                                                            (GOM) west of 87 degrees, 30 minutes                  natural gas and oil, creating profits for
                                                    [Docket ID BSEE–2015–0008; OMB Control                  West longitude.                                       lessees, and royalty and tax revenues for
                                                    Number 1014–0005; 15XE1700DX                              Section 302 of the DWRRA provides                   the Federal Government that they might
                                                    EEEE500000 EX1SF0000.DAQ000]                            that new production from a lease in                   not otherwise receive. We could not
                                                                                                            existence on November 28, 1995, in a                  make an informed decision without the
                                                    Information Collection Activities: Relief               water depth of at least 200 meters, and
                                                    or Reduction in Royalty Rates;                                                                                collection of information required by 30
                                                                                                            in the GOM west of 87 degrees, 30                     CFR part 203.
                                                    Proposed Collection; Comment                            minutes West longitude qualifies for                     No questions of a sensitive nature are
                                                    Request                                                 royalty suspension in certain situations.             asked. BSEE will protect information
                                                                                                            To grant a royalty suspension, the                    from respondents considered
                                                    ACTION:   60-Day notice.
                                                                                                            Secretary must determine that the new                 proprietary under the Freedom of
                                                    SUMMARY:   To comply with the                           production or development would not                   Information Act (5 U.S.C. 552) and
                                                    Paperwork Reduction Act of 1995                         be economic in the absence of royalty                 DOI’s implementing regulations (43 CFR
                                                    (PRA), BSEE is inviting comments on a                   relief. The Secretary must then                       2) and under regulations at 30 CFR
                                                    collection of information that we will                  determine the volume of production on                 203.61, How do I assess my chances for
                                                    submit to the Office of Management and                  which no royalty would be due in order                getting relief? and 30 CFR 250.197, Data
                                                    Budget (OMB) for review and approval.                   to make the new production from the                   and information to be made available to
                                                    The information collection request (ICR)                lease economically viable. This                       the public or for limited inspection.
                                                    concerns a renewal to the paperwork                     determination is done on a case-by-case               Responses are mandatory or are
                                                    requirements in the regulations under                   basis. Production from leases in the                  required to obtain or retain a benefit.
                                                    Relief or Reduction in Royalty Rates.                   same water depth and area issued after                   Frequency: On occasion or as a result
                                                    DATES: You must submit comments by                      November 28, 2000, also can qualify for               of situations encountered depending
                                                    July 21, 2015.                                          royalty suspension in addition to any                 upon the requirements.
                                                    ADDRESSES: You may submit comments                      that may be included in their lease                      Description of Respondents: Potential
                                                    by either of the following methods listed               terms.                                                respondents comprise Federal oil, gas,
                                                    below.                                                    In addition, Federal policy and statute             or sulphur lessees and/or operators.
                                                      • Electronically go to http://                        require us to recover the cost of services               Estimated Reporting and
                                                    www.regulations.gov. In the Search box,                 that confer special benefits to                       Recordkeeping Hour Burden: The
                                                    enter BSEE–2015–0008 then click                         identifiable non-Federal recipients. The              currently approved annual reporting
                                                    search. Follow the instructions to                      Independent Offices Appropriation Act                 burden for this collection is 23,329
                                                    submit public comments and view all                     (31 U.S.C. 9701), Office of Management                hours and $117,441 non-hour cost
                                                    related materials. We will post all                     and Budget (OMB) Circular A–25, and                   burdens. In this submission, we are
                                                    comments.                                               the Omnibus Appropriations Bill (Pub.                 requesting a total of 724 burden hours
                                                      • Email cheryl.blundon@bsee.gov.                      L. 104–134, 110 Stat. 1321, April 26,                 and $27,950 non-hour cost burdens. The
                                                    Mail or hand-carry comments to the                      1996) authorize the Bureau of Safety                  following chart details the individual
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                    Department of the Interior; Bureau of                   and Environmental Enforcement (BSEE)                  components and respective hour burden
                                                    Safety and Environmental Enforcement;                   to collect these fees to reimburse us for             estimates of this ICR. In calculating the
                                                    Regulations and Standards Branch;                       the cost to process applications or                   burdens, we assumed that respondents
                                                    ATTN: Cheryl Blundon; 45600                             assessments.                                          perform certain requirements in the
                                                    Woodland Road, Sterling, VA 20166.                        Regulations at 30 CFR part 203                      normal course of their activities. We
                                                    Please reference ICR 1014–0005 in your                  implement these statutes and policy and               consider these to be usual and
                                                    comment and include your name and                       require respondents to pay a fee to                   customary and took that into account in
                                                    return address.                                         request royalty relief. The OMB                       estimating the burden.


                                               VerDate Sep<11>2014   18:19 May 21, 2015   Jkt 235001   PO 00000   Frm 00139   Fmt 4703   Sfmt 4703   E:\FR\FM\22MYN1.SGM   22MYN1


                                                                                                Federal Register / Vol. 80, No. 99 / Friday, May 22, 2015 / Notices                                                                                            29741

                                                                                                                                                                                                         Application/audit fees (rounded)

                                                     Citation 30 CFR 203                                                                                                                                                                                        Annual
                                                                                                 Reporting or recordkeeping requirement +
                                                      and related NTL(s)                                                                                                                                                        Average number of               burden
                                                                                                                                                                                           Hour burden                          annual responses                 hours
                                                                                                                                                                                                                                                              (rounded)

                                                    2; 3; 4; 70 ..................           These sections contain general references to submitting reports, applications, requests, copies, dem-                                                                    0
                                                                                                 onstrating qualifications, for BSEE approval—burdens covered under specific requirements.

                                                                                          Royalty Relief for Ultra-Deep Gas Wells and Deep Gas Wells on Shallow Water Leases

                                                    31(c) ...........................    Request a refund of or recoup royalties from quali-                                     1 .......................................    1 request ...................           1
                                                                                           fied ultra-deep wells.
                                                    35(a); 44(a); 47 ..........          Notify BSEE of intent to begin drilling and depth of                                    1 .......................................    2 notifications ............            2
                                                                                           target.
                                                    35(c), (d); 44(b), (d),              Notify BSEE that production has begun, request                                          2 .......................................    2 notifications ............            4
                                                      (e).                                 confirmation of the size of RSV—provide any/all
                                                                                           supporting documentation.
                                                    35(d); 44(e) ................        Request to extend the deadline for beginning pro-                                       4 .......................................    1 request ...................           4
                                                                                           duction with required supporting documentation.
                                                    41(d) ...........................    Request a refund of or recoup royalties from quali-                                     1 .......................................    1 request ...................           1
                                                                                           fied wells >200 meters but <400 meters.
                                                    35(a); 44(a); 47(a) .....            Notify BSEE of intent to begin drilling ........................                        1 .......................................    2 notifications ............            2
                                                    35(c), (d); 44(b), (d),              Notify BSEE that production has begun, request                                          2 .......................................    2 notifications ............            4
                                                      (e).                                 confirmation of the size of RSV, provide any/all
                                                                                           supporting documentation (i.e., request to extend
                                                                                           deadline, credible activity schedule, etc).
                                                    46 ...............................   Provide data from well to confirm and attest well                                       8 .......................................    1 response ................             8
                                                                                           drilled was an unsuccessful certified well with sup-
                                                                                           porting documentation and request supplement
                                                                                           (RSS).

                                                    49(b) ...........................    Notify BSEE or decision to exercise option to re-                                       BSEE SOL requires that this reg text stay for legacy purposes
                                                                                           place one set of deep gas royalty suspension                                           only. Last time any respondent could use was 2004; hence,
                                                                                           terms for another set of such terms.                                                   no burden.

                                                          Subtotal ...............       .....................................................................................   ..........................................   8 responses ...............            20

                                                                                                                                   End of Life and Special Royalty Relief *

                                                    51; 83; 84; NTL ..........           Application—leases that generate earnings that can-                                     100 ...................................      1 application every 10                 10
                                                                                           not sustain continued production (end-of-life                                                                                        years.
                                                                                           lease); required supporting documentation; include
                                                                                           payment confirmation receipt.

                                                                                                                                                                                                        application 1/10 × $8,000 = $800 *
                                                                                                                                                                                                         audit 1/10 × $12,500 = $1,250.

                                                    52 ...............................   Demonstrate ability to qualify/requalify for royalty re-                                1 .......................................    1 response ................             1
                                                                                           lief or to re-qualify.
                                                    55 ...............................   Renounce relief arrangement (end-of-life) (seldom, if                                   1 .......................................    1 letter every 10                       1
                                                                                           ever will be used; minimal burden to prepare let-                                                                                     years.
                                                                                           ter).
                                                    80; NTL ......................       Application—apart from formal programs for royalty                                      250 ...................................      1 application every 10                 25
                                                                                           relief for marginal producing lease (Special Case                                                                                    years.
                                                                                           Relief); required supporting documentation; in-
                                                                                           clude payment confirmation receipt.

                                                                                                                                                                                                       application 1/10 × $8,000 ** = $ 800.
                                                                                                                                                                                                         audit 1/10 × $12,500 = $1,250.

                                                    80; NTL ......................       Application—apart from formal programs for royalty                                      1,000 ................................       1 application every 10                100
                                                                                           relief for marginal expansion project or marginal                                                                                    years.
                                                                                           non-producing lease (Special Case Relief); re-
                                                                                           quired supporting documentation; include payment
                                                                                           confirmation receipt.
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                                                                                                                                                                    application 1/10 × $19,500 ** = $ 1,950.
                                                                                                                                                                                                        audit 1/10 × $18,750 = $1,875.

                                                          Subtotal ...............       .....................................................................................   ..........................................   2 responses (round-                   137
                                                                                                                                                                                                                                ed).

                                                                                                                                                                                                                                             $7,925 fees




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                                                    29742                                       Federal Register / Vol. 80, No. 99 / Friday, May 22, 2015 / Notices

                                                                                                                                                                                                         Application/audit fees (rounded)

                                                     Citation 30 CFR 203                                                                                                                                                                                      Annual
                                                                                                 Reporting or recordkeeping requirement +
                                                      and related NTL(s)                                                                                                                                                       Average number of              burden
                                                                                                                                                                                           Hour burden                         annual responses                hours
                                                                                                                                                                                                                                                            (rounded)

                                                                                                                                                           CPA Report

                                                    81; 83–90; 63 .............          Required reports; extension justification ....................                                       Burden included with applications.                                    0

                                                                                                                                                                                             1 CPA report × $45,000/10 each report = $4,500.

                                                          Subtotal ...............       .....................................................................................   ..........................................   1 response ................      $4,500

                                                                                                                                  Deep Water Royalty Relief Act (DWRAA)

                                                    61; 62; 64; 65; 71; 83;              Application—preview assessment (seldom if ever will                                     900 ...................................      1 application every 10               90
                                                      85–89;.                              be used as applicants generally opt for binding de-                                                                                  years.
                                                    NTL ............................       termination by BSEE instead) and required sup-
                                                                                           porting documentation; include payment confirma-
                                                                                           tion receipt.

                                                                                                                                                                                                      application 1/10 × $28,500 = $2,850.

                                                    62; 64; 65; 71; 83;                  Application—leases in designated areas of GOM                                           2,000 ................................       1 application every 10              200
                                                      85–89; NTL.                          deep water acquired in lease sale before 11/28/95                                                                                    years.
                                                                                           or after 11/28/00 and are producing (deep water
                                                                                           expansion project); required supporting docu-
                                                                                           mentation; include payment confirmation receipt.

                                                                                                                                                                                                      application 1/10 x $19,500 = $1,950.

                                                    62; 64; 65; 203.71;                  Application—leases in designated areas of deep                                          2,000 ................................       1 application every 10              200
                                                      81; 83; 85–89; NTL.                  water GOM, acquired in lease sale before 11/28/                                                                                      years.
                                                                                           95 or after 11/28/00 that have not produced (pre-
                                                                                           act or post-2000 deep water leases); required sup-
                                                                                           porting documentation; include payment confirma-
                                                                                           tion receipt.

                                                                                                                                                                                                      application 1/10 × $34,000 = $3,400 *
                                                                                                                                                                                                         audit 1/10 × $37,500 = $3,750.

                                                    69; NTL ......................       Application—short form to add or assign pre-Act                                         40 .....................................     1 application every 10                4
                                                                                           lease and required supporting documentation; in-                                                                                     years.
                                                                                           clude payment confirmation receipt.

                                                                                                                                                                                                         application 1/10 × $1,000 = $100.

                                                    70; 81; 90; 76(c), (e);              Submit post-production development report; exten-                                       50 .....................................     1 report * every 10                   5
                                                      NTL.                                 sion justification. # Reserve right to audit (1 audit                                                                                years.
                                                                                           every 6 years) after production starts to confirm
                                                                                           cost estimates of the application; include payment
                                                                                           confirmation receipt.

                                                                                                                                                                                                         #1 audit 1/10 x $18,750 = $1,875.

                                                    74; 75; 76(d); NTL .....             Redetermination and required supporting docu-                                           500 ...................................      1 redetermination                    50
                                                                                           mentation; include payment confirmation receipt.                                                                                     every 10 years.

                                                                                                                                                                                                      application 1/10 × $16,000 = $1,600 *

                                                    77 ...............................   Renounce relief arrangement (deep water) (seldom,                                       1 .......................................    1 letter every 10                     1
                                                                                          if ever will be used; minimal burden to prepare let-                                                                                   years.
                                                                                          ter).

                                                    79 ...............................   Request reconsideration of BSEE field designation ..                                         This was a regulatory requirement for leases                                  0
                                                                                                                                                                                                  issued prior to 1995.
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                    79(c); 76(b) ................        Request extension of deadline to start construction ..                                  2 .......................................    1 request every 10                    1
                                                                                                                                                                                                                                years.

                                                    81; 83–90 ...................        Required reports; extension justification ....................                                       Burden included with applications.                                    0

                                                          Subtotal ...............       .....................................................................................   ..........................................   3 responses ...............         551

                                                                                                                                                                                                                                           $15,525 fees




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                                                                                               Federal Register / Vol. 80, No. 99 / Friday, May 22, 2015 / Notices                                                                                        29743

                                                                                                                                                                                                        Application/audit fees (rounded)

                                                     Citation 30 CFR 203                                                                                                                                                                                   Annual
                                                                                                Reporting or recordkeeping requirement +
                                                      and related NTL(s)                                                                                                                                                       Average number of           burden
                                                                                                                                                                                          Hour burden                          annual responses             hours
                                                                                                                                                                                                                                                         (rounded)

                                                                                                                                                       Recordkeeping

                                                    81(d) ...........................   Retain supporting cost records for post-production                                      8 .......................................     2 recordkeepers ........          16
                                                                                          development/fabrication reports (records retained
                                                                                          as usual/customary business practice; minimal
                                                                                          burden to make available at BSEE request).

                                                          Subtotal ...............      .....................................................................................   ..........................................    2 recordkeepers ........          16

                                                          Total Annual Bur-             .....................................................................................   ..........................................    16 Responses ...........         724
                                                            den.

                                                                                                                                                                                                                                         $27,950 Fees
                                                       + In the future, BSEE may require electronic filing of some submissions.
                                                       * CPA certification expense burden also imposed on applicant.
                                                       ** These applications currently do not have a set fee since they are done on a case-by-case basis.
                                                       Note: Applications include numerous items such as: transmittal letters, letters of request, modifications to applications, reapplications, etc.


                                                       Estimated Reporting and                                                approved. This annual cost burden is                                          CFR 1320.3(b)(1) and (2), or contact the
                                                    Recordkeeping Non-Hour Cost Burden:                                       $45,000/10 years = $4,500.                                                    Bureau representative listed previously
                                                    We have identified several non-hour                                          Therefore, the total of the two burdens                                    in this notice.
                                                    cost burdens for this collection. Under                                   under Section A.13 (a) and (b) is                                               We will summarize written responses
                                                    § 203.3, we charge lessees (respondents)                                  estimated at $27,950. We have not                                             to this notice and address them in our
                                                    applying for royalty relief an amount                                     identified any other non-hour cost                                            submission for OMB approval. As a
                                                    that covers the cost of processing their                                  burdens associated with this collection                                       result of your comments, we will make
                                                    applications and auditing financial data                                  of information.                                                               any necessary adjustments to the burden
                                                    when necessary to determine the                                              Public Disclosure Statement: The PRA                                       in our submission to OMB.
                                                    proposed development’s economic                                           (44 U.S.C. 3501, et seq.) provides that an                                      Public Comment Procedures: Before
                                                    situation. As discussed in section A.1,                                   agency may not conduct or sponsor a                                           including your address, phone number,
                                                    these fees may be revised as necessary                                    collection of information unless it                                           email address, or other personal
                                                    to recover our costs in processing                                        displays a currently valid OMB control                                        identifying information in your
                                                    royalty relief applications.                                              number. Until OMB approves a                                                  comment, you should be aware that
                                                       This submission includes these audits                                  collection of information, you are not                                        your entire comment—including your
                                                    and their associated fees. Since there                                    obligated to respond.                                                         personal identifying information—may
                                                    have been no applications approved in                                        Comments: Before submitting an ICR                                         be made publicly available at any time.
                                                    the last 14 years under our formal                                        to OMB, PRA section 3506(c)(2)(A)                                             While you can ask us in your comment
                                                    programs for deepwater royalty relief or                                  requires each agency ‘‘. . . to provide                                       to withhold your personal identifying
                                                    end of life, so their estimated number of                                 notice . . . and otherwise consult with                                       information from public review, we
                                                    submittals is one every 10 years; but we                                  members of the public and affected                                            cannot guarantee that we will be able to
                                                    include the audit and their respective                                    agencies concerning each proposed                                             do so.
                                                    fees due to the potential situation                                       collection of information . . .’’.                                              Dated: May 14, 2015.
                                                    arising.                                                                  Agencies must specifically solicit                                            Douglas W. Morris,
                                                       We estimate this cost burden to be                                     comments to: (a) Evaluate whether the                                         Chief, Office of Offshore Regulatory Programs.
                                                    approximately $23,450 annually. Refer                                     collection is necessary or useful; (b)
                                                                                                                                                                                                            [FR Doc. 2015–12304 Filed 5–21–15; 8:45 am]
                                                    to the chart in Section A.12 of this                                      evaluate the accuracy of the burden of
                                                                                                                                                                                                            BILLING CODE 4310–VH–P
                                                    supporting statement for a breakdown.                                     the proposed collection of information;
                                                       Under § 203.81, a report prepared by                                   (c) enhance the quality, usefulness, and
                                                    an independent certified public                                           clarity of the information to be
                                                                                                                                                                                                            DEPARTMENT OF THE INTERIOR
                                                    accountant (CPA) must accompany the                                       collected; and (d) minimize the burden
                                                    application and post-production report                                    on the respondents, including the use of                                      Bureau of Safety and Environmental
                                                    (expansion project, short form, and                                       technology.                                                                   Enforcement
                                                    preview assessment applications are                                          Agencies must also estimate the non-
                                                    excluded). The OCS Lands Act                                              hour paperwork cost burdens to                                                [Docket ID BSEE–2015–0007; OMB Control
                                                    applications will require this report                                     respondents or recordkeepers resulting                                        Number 1014–0013; 15XE1700DX
                                                    only once; the DWRRA applications will                                    from the collection of information.                                           EEEE500000 EX1SF0000.DAQ000]
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                    require this report at two stages—with                                    Therefore, if you have other than hour
                                                    the application and post-production                                       burden costs to generate, maintain, and                                       Information Collection Activities:
                                                    development report for successful                                         disclose this information, you should                                         Global Positioning Systems (GPS) for
                                                    applicants. We estimate an average cost                                   comment and provide your total capital                                        Mobile Offshore Drilling Units (MODUs)
                                                    for a report is $45,000 and that one CPA                                  and startup cost components or annual                                         NTL; Proposed Collection; Comment
                                                    certification, during the information                                     operation, maintenance, and purchase                                          Request
                                                    collection extension period, will be                                      of service components. For further
                                                                                                                                                                                                            ACTION:          60-Day notice.
                                                    necessary if the applications are                                         information on this burden, refer to 5


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Document Created: 2015-12-15 15:44:46
Document Modified: 2015-12-15 15:44:46
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
Action60-Day notice.
DatesYou must submit comments by July 21, 2015.
ContactCheryl Blundon, Regulations and Standards Branch at (703) 787-1607 to request additional information about this ICR.
FR Citation80 FR 29740 

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