81_FR_36433 81 FR 36325 - Agency Information Collection Activities: Federal Oil and Gas Valuation; Comment Request

81 FR 36325 - Agency Information Collection Activities: Federal Oil and Gas Valuation; Comment Request

DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue

Federal Register Volume 81, Issue 108 (June 6, 2016)

Page Range36325-36336
FR Document2016-13206

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, 1204, and 1206. This ICR pertains to Federal oil and gas valuation regulations, which include transportation and processing regulatory allowance limits and accounting and auditing relief for marginal properties. Also, there is one form (ONRR-4393) associated with this information collection.

Federal Register, Volume 81 Issue 108 (Monday, June 6, 2016)
[Federal Register Volume 81, Number 108 (Monday, June 6, 2016)]
[Notices]
[Pages 36325-36336]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-13206]


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DEPARTMENT OF THE INTERIOR

Office of Natural Resources Revenue

[Docket No. ONRR-2012-0006; DS63642000 DR2PS0000.CH7000 167D0102R2]


Agency Information Collection Activities: Federal Oil and Gas 
Valuation; Comment Request

AGENCY: Office of Natural Resources Revenue (ONRR), Interior.

ACTION: Notice of an 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, 1204, and 1206. This ICR 
pertains to Federal oil and gas valuation regulations, which include 
transportation and processing regulatory allowance limits and 
accounting and auditing relief for marginal properties. Also, there is 
one form (ONRR-4393) associated with this information collection.

DATES: Submit written comments on or before August 5, 2016.

ADDRESSES: You may submit comments on this ICR to ONRR by using one of 
the following three methods (please reference ``ICR 1012-0005'' in your 
comments):
    1. Electronically go to http://www.regulations.gov. In the entry 
titled ``Enter Keyword or ID,'' enter ``ONRR-2012-0005'' and then click 
``Search.'' Follow the instructions to submit public comments. ONRR 
will post all comments.
    2. Email comments to Mr. Luis Aguilar, Regulatory Specialist, at 
[email protected].
    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 mineral resource development on Federal and Indian 
lands and the Outer Continental Shelf (OCS). The Secretary's 
responsibility, according to 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. 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.
    The Secretary also has a trust responsibility to manage Indian 
lands and seek advice and information from Indian beneficiaries. ONRR 
performs the minerals revenue management functions for the Secretary 
and assists the Secretary in carrying out the Department's trust 
responsibility for Indian lands.
    You can find the information collections covered in this ICR at 30 
CFR parts:
     1202, subparts C and D, which pertain to Federal oil and 
gas royalties.
     1204, subpart C, which pertains to accounting and auditing 
relief for marginal properties.
     1206, subparts C and D, which pertain to Federal oil and 
gas product valuation.

General Information

    When a company or an individual enters into a lease to explore, 
develop, produce, and dispose of minerals from Federal or Indian lands, 
that company or individual agrees to pay the lessor a share in an 
amount or value of production from the leased lands. The mineral lease 
laws require the lessee, or his designee, to report various kinds of 
information to the lessor relative to the

[[Page 36326]]

disposition of the leased minerals. Such information is generally 
available within the records of the lessee or others involved in 
developing, transporting, processing, purchasing, or selling of such 
minerals.

Information Collections

    ONRR uses the information that we collect in this ICR to ensure 
that lessees accurately value and appropriately pay royalties on oil 
and gas produced from Federal onshore and offshore leases. Please refer 
to the chart for all reporting requirements and associated burden 
hours. All data submitted is subject to subsequent audit and 
adjustment.
A. Federal Oil and Gas Valuation Regulations
    The valuation regulations at 30 CFR part 1206, subparts C and D, 
mandate that companies collect and submit information used to value 
their Federal oil and gas, including (1) transportation and processing 
allowances and (2) regulatory allowance limit information. Companies 
report certain data on form ONRR-2014, Report of Sales and Royalty 
Remittance. The information that we request is the minimum necessary to 
carry out our mission and places the least possible burden on 
respondents. If ONRR does not collect this information, both Federal 
and State governments may incur a loss of royalties.
    Transportation and Processing Regulatory Allowance Limits: Lessees 
may deduct actual costs of transportation and processing from Federal 
royalties. The lessees report these allowances on form ONRR-2014. For 
oil and gas, regulations establish the allowable limit on 
transportation allowance deductions at 50 percent of the value of the 
oil or gas. For gas only, regulations establish the allowable limit on 
processing allowance deductions at 66\2/3\ percent of the value of each 
gas plant product.
    Request to Exceed Regulatory Allowance Limitation, form ONRR-4393: 
Lessees may request to exceed regulatory limitations. Upon proper 
application from the lessee, ONRR may approve oil or gas transportation 
allowance in excess of 50 percent or gas processing allowance in excess 
of 66\2/3\ percent on Federal leases. Lessees use form ONRR-4393 for 
both Federal and Indian leases to request to exceed allowance 
limitations. This ICR covers only Federal leases; therefore, we have 
not included burden hours of form ONRR-4393 for Indian leases in this 
ICR. We include burden hours for form ONRR-4393 for Indian leases in 
OMB Control Number 1012-0002.
B. Accounting and Auditing Relief for Marginal Properties
    In 2004, we amended our regulations to comply with section 7 of the 
Federal Oil and Gas Royalty Simplification and Fairness Act of 1996. 
These regulations provide guidance for lessees and designees seeking 
accounting and auditing relief for qualifying Federal marginal 
properties. Under the regulations, both ONRR and the State concerned 
must approve any relief granted for a marginal property.

OMB Approval

    We will request OMB approval to continue to collect, from 
companies, lessees, and designees, information used (1) to value their 
Federal oil and gas, including (a) transportation and processing 
allowances and (b) regulatory allowance limit information and (2) to 
request accounting and auditing relief approval for qualifying Federal 
marginal properties. If ONRR does not collect this information, this 
would limit the Secretary's ability to discharge fiduciary duties and 
may also result in loss of royalty payments. ONRR protects the 
proprietary information that we receive, and we do not collect items of 
a sensitive nature.
    ONRR requires lessees to respond to information collections 
relating to valuation requirements.

II. Data

    Title: 30 CFR parts 1202, 1204, and 1206, Federal Oil and Gas 
Valuation.
    OMB Control Number: 1012-0005.
    Bureau Form Number: Form ONRR-4393.
    Frequency: Annually and on occasion.
    Estimated Number and Description of Respondents: 120 Federal 
lessees/designees and 7 States for Federal oil and gas.
    Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 9,518 
hours.
    We have not included in our estimates certain requirements 
performed in the normal course of business and considered as usual and 
customary. We display the estimated annual burden hours by CFR section 
and paragraph in the following chart:

                                   Respondents' Estimated Annual Burden Hours
----------------------------------------------------------------------------------------------------------------
                                                                                      Average
                                     Reporting and recordkeeping                     number of     Annual burden
 30 CFR 1202, 1204, 1206, and 1210           requirement            Hour burden       annual           hours
                                                                                     responses
----------------------------------------------------------------------------------------------------------------
                                              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.
                                     Oil volumes are to be
                                      reported in barrels of
                                      clean oil of 42 standard
                                      U.S. gallons (231 cubic
                                      inches each) at 60 [deg]F
                                      . . ..
----------------------------------------------------------------------------------------------------------------
                                             Subpart D--Federal Gas
----------------------------------------------------------------------------------------------------------------
1202.152(a) and (b)................  Standards for reporting and   Burden covered under OMB Control Number 1012-
                                      paying royalties on gas.                         0004.
                                     (a)(1) If you are
                                      responsible for reporting
                                      production or royalties
                                      you must:.
                                     (i) Report gas volumes and
                                      British thermal unit (Btu)
                                      heating values, if
                                      applicable, under the same
                                      degree of water
                                      saturation;
                                     (ii) Report gas volumes in
                                      units of 1,000 cubic feet
                                      (mcf); and

[[Page 36327]]

 
                                     (iii) Report gas volumes
                                      and Btu heating value at a
                                      standard pressure base of
                                      14.73 pounds per square
                                      inch absolute (psia) and a
                                      standard temperature base
                                      of 60 [deg]F . . .
                                     (b) Residue gas and gas
                                      plant product volumes
                                      shall be reported as
                                      specified in this
                                      paragraph . . .
----------------------------------------------------------------------------------------------------------------
                                 PART 1204--ALTERNATIVES FOR MARGINAL PROPERTIES
----------------------------------------------------------------------------------------------------------------
                                    Subpart C--Accounting and Auditing Relief
----------------------------------------------------------------------------------------------------------------
1204.202(b)(1).....................  What is the cumulative                   40               1              40
                                      royalty reports and
                                      payments relief option?
                                     (b) To use the cumulative
                                      royalty reports and
                                      payments relief option,
                                      you must do all of the
                                      following:
                                     (1) Notify ONRR in writing
                                      by January 31 of the
                                      calendar year for which
                                      you begin taking your
                                      relief . . .
----------------------------------------------------------------------------------------------------------------
1204.202(b)(2) and (b)(3)..........  (b)(2) Submit your royalty    Burden covered under OMB Control Number 1012-
                                      report and payment . . .                         0004.
                                      by the end of February of
                                      the year following the
                                      calendar year for which
                                      you reported annually . .
                                      . If you have an estimated
                                      payment on file, you must
                                      submit your royalty report
                                      and payment by the end of
                                      March of the year
                                      following the calendar
                                      year for which you
                                      reported annually; (3) Use
                                      the sales month prior to
                                      the month that you submit
                                      your annual report and
                                      payment . . . for the
                                      entire previous calendar
                                      year's production for
                                      which you are paying
                                      annually . . .
----------------------------------------------------------------------------------------------------------------
1204.202(b)(4), (b)(5), (c),         (b)(4) Report one line of     Burden covered under OMB Control Number 1012-
 (d)(1), (d)(2), (e)(1), and (e)(2).  cumulative royalty                               0004.
                                      information on Form ONRR-
                                      2014 for the calendar year
                                      . . . And
                                     (5) Report allowances on
                                      Form ONRR-2014 on the same
                                      annual basis as the
                                      royalties for your
                                      marginal property
                                      production..
                                     (c) If you do not pay your
                                      royalty by the date due in
                                      paragraph (b) of this
                                      section, you will owe late
                                      payment interest . . .
                                      from the date your payment
                                      was due under this section
                                      until the date ONRR
                                      receives it . . .
                                     (d) If you take relief you
                                      are not qualified for, you
                                      may be liable for civil
                                      penalties.
                                     Also you must: (1) Pay ONRR
                                      late payment interest
                                      determined under 30 CFR
                                      1218.54 . . . (2) Amend
                                      your Form ONRR-2014 . . ..
                                     (e) If you dispose of your
                                      ownership interest in a
                                      marginal property for
                                      which you have taken
                                      relief . . . you must:
                                     (1) Report and pay
                                      royalties for the portion
                                      of the calendar year for
                                      which you had an ownership
                                      interest; and.
                                     (2) Make the report and
                                      payment by the end of the
                                      month after you dispose of
                                      the ownership interest in
                                      the marginal property. If
                                      you do not report and pay
                                      timely, you will owe
                                      interest . . . from the
                                      date the payment was . . .
----------------------------------------------------------------------------------------------------------------
1204.203(b), 1204.205(a) and (b),    What is the other relief                200               1             200
 and 1204.206(a)(3)(i) and (b)(1).    option?
                                     (b) You must request
                                      approval from ONRR . . .
                                      before taking relief under
                                      this option..
----------------------------------------------------------------------------------------------------------------
1204.208(c)(1), (d)(1), and (e)....  May a State decide that it               40               7             280
                                      will or will not allow one
                                      or both of the relief
                                      options under this
                                      subpart?
                                     (c) If a State decides . .
                                      . that it will or will not
                                      allow one or both of the
                                      relief options . . .
                                      within 30 days . . . the
                                      State must: (1) Notify the
                                      Director for Office of
                                      Natural Resources Revenue,
                                      in writing, of its intent
                                      to allow or not allow one
                                      or both of the relief
                                      options . . .
                                     (d) If a State decides in
                                      advance . . . that it will
                                      not allow one or both of
                                      the relief options . . .
                                      the State must: (1) Notify
                                      the Director for Office of
                                      Natural Resources Revenue,
                                      in writing, of its intent
                                      to allow one or both of
                                      the relief options . . .

[[Page 36328]]

 
                                     (e) If a State does not
                                      notify ONRR . . . the
                                      State will be deemed to
                                      have decided not to allow
                                      either of the relief
                                      options . . .
----------------------------------------------------------------------------------------------------------------
1204.209(b)........................  What if a property ceases                 6               1               6
                                      to qualify for relief
                                      obtained under this
                                      subpart?
                                     (b) If a property is no
                                      longer eligible for relief
                                      . . . the relief for the
                                      property terminates as of
                                      December 31 of that
                                      calendar year. You must
                                      notify ONRR in writing by
                                      December 31 that the
                                      relief for the property
                                      has terminated . . .
----------------------------------------------------------------------------------------------------------------
1204.210(c) and (d)................  What if a property is         Burden covered under OMB Control Number 1012-
                                      approved as part of                              0004.
                                      anonqualifying agreement?
                                     (c) . . . the volumes on
                                      which you report and pay
                                      royalty . . . must be
                                      amended to reflect all
                                      volumes produced on or
                                      allocated to your lease
                                      under the nonqualifying
                                      agreement as modified by
                                      BLM. . . . Report and pay
                                      royalties for your
                                      production using the
                                      procedures in Sec.
                                      1204.202(b).
                                     (d) If you owe additional
                                      royalties based on the
                                      retroactive agreement
                                      approval and do not pay
                                      your royalty by the date
                                      due in Sec.   1204.202(b),
                                      you will owe late payment
                                      interest determined under
                                      Sec.   1218.54 from the
                                      date your payment was due
                                      under Sec.
                                      1204.202(b)(2) until the
                                      date ONRR receives it.
----------------------------------------------------------------------------------------------------------------
1204.214(b)(1) and (b)(2)..........  Is minimum royalty due on a   Burden covered under OMB Control Number 1012-
                                      property for which I took                        0004.
                                      relief?
                                     (b) If you pay minimum
                                      royalty on production from
                                      a marginal property during
                                      a calendar year for which
                                      you are taking cumulative
                                      royalty reports and
                                      payment relief, and:.
                                     (1) The annual payment you
                                      owe under this subpart is
                                      greater than the minimum
                                      royalty you paid, you must
                                      pay the difference between
                                      the minimum royalty you
                                      paid and your annual
                                      payment due under this
                                      subpart; or
                                     (2) The annual payment you
                                      owe under this subpart is
                                      less than the minimum
                                      royalty you paid, you are
                                      not entitled to a credit
                                      because you must pay at
                                      least the minimum royalty
                                      amount on your lease each
                                      year.
----------------------------------------------------------------------------------------------------------------
    Accounting and Auditing Relief   ...........................  ..............              10             526
     Subtotal.
----------------------------------------------------------------------------------------------------------------
                                          Part 1206--Product Valuation
----------------------------------------------------------------------------------------------------------------
                                             Subpart C--Federal Oil
----------------------------------------------------------------------------------------------------------------
1206.102(e)(1).....................  How do I calculate royalty              AUDIT PROCESS. See note.
                                      value for oil that I or my
                                      affiliate sell(s) under an
                                      arm's-length contract?
                                     (e) If you value oil under
                                      paragraph (a) of this
                                      section: (1) ONRR may
                                      require you to certify
                                      that your or your
                                      affiliate's arm's-length
                                      contract provisions
                                      include all of the
                                      consideration the buyer
                                      must pay, either directly
                                      or indirectly, for the
                                      oil.
----------------------------------------------------------------------------------------------------------------
1206.103(a)(1), (a)(2), and (a)(3).  How do I value oil that is               45               5             225
                                      not sold under an arm's-
                                      length contract?
                                     This section explains how
                                      to value oil that you may
                                      not value under Sec.
                                      1206.102 or that you elect
                                      under Sec.   1206.102(d)
                                      to value under this
                                      section. First determine
                                      whether paragraph (a),
                                      (b), or (c) of this
                                      section applies to
                                      production from your
                                      lease, or whether you may
                                      apply paragraph (d) or (e)
                                      with ONRR approval.
                                     (a) Production from leases
                                      in California or Alaska.
                                      Value is the average of
                                      the daily mean ANS spot
                                      prices published in any
                                      ONRR-approved publication
                                      during the trading month
                                      most concurrent with the
                                      production month . . .
                                     (1) To calculate the daily
                                      mean spot price . . .
                                     (2) Use only the days . . .
                                     (3) You must adjust the
                                      value . . .
----------------------------------------------------------------------------------------------------------------

[[Page 36329]]

 
1206.103(a)(4).....................  (a)(4) After you select an                8               2              16
                                      ONRR-approved publication,
                                      you may not select a
                                      different publication more
                                      often than once every 2
                                      years, . . .
----------------------------------------------------------------------------------------------------------------
1206.103(b)(1).....................  (b) Production from leases              400               2             800
                                      in the Rocky Mountain
                                      Region . . .
                                     (1) If you have an ONRR-
                                      approved tendering
                                      program, you must value
                                      oil . . .
----------------------------------------------------------------------------------------------------------------
1206.103(b)(1)(ii).................  (b)(1)(ii) If you do not                400               2             800
                                      have an ONRR-approved
                                      tendering program, you may
                                      elect to value your oil
                                      under either paragraph
                                      (b)(2) or (b)(3) of this
                                      section . . .
----------------------------------------------------------------------------------------------------------------
1206.103(b)(4).....................  (4) If you demonstrate to               400               2             800
                                      ONRR's satisfaction that
                                      paragraphs (b)(1) through
                                      (b)(3) of this section
                                      result in an unreasonable
                                      value for your production
                                      as a result of
                                      circumstances regarding
                                      that production, the ONRR
                                      Director may establish an
                                      alternative valuation
                                      method.
----------------------------------------------------------------------------------------------------------------
1206.103(c)(1).....................  (c) Production from leases               50              10             500
                                      not located in California,
                                      Alaska or the Rocky
                                      Mountain Region. (1) Value
                                      is the NYMEX price, plus
                                      the roll, adjusted for
                                      applicable location and
                                      quality differentials and
                                      transportation costs under
                                      Sec.   1206.112.
----------------------------------------------------------------------------------------------------------------
1206.103(e)(1) and (e)(2)..........  (e) Production delivered to             330               2             660
                                      your refinery and the
                                      NYMEX price or ANS spot
                                      price is an unreasonable
                                      value. (1) . . . you may
                                      apply to the ONRR Director
                                      to establish a value (2)
                                      You must provide adequate
                                      documentation and evidence
                                      demonstrating the market
                                      value at the refinery. . .
                                      . representing the market
                                      at the refinery if: . . .
----------------------------------------------------------------------------------------------------------------
1206.105...........................  What records must I keep to   Burden covered under OMB Control Number 1012-
                                      support my calculations of                       0004.
                                      value under this subpart?
                                     If you determine the value
                                      of your oil under this
                                      subpart, you must retain
                                      all data relevant to the
                                      determination of royalty
                                      value . . .
----------------------------------------------------------------------------------------------------------------
1206.107(a)........................  How do I request a value                 40              10             400
                                      determination?
                                     (a) You may request a value
                                      determination from ONRR .
                                      . .
----------------------------------------------------------------------------------------------------------------
1206.109(c)(2).....................  When may I take a                         8               2              16
                                      transportation allowance
                                      in determining value?
                                     (c) Limits on
                                      transportation allowances.
                                      (2) You may ask ONRR to
                                      approve a transportation
                                      allowance in excess of the
                                      limitation in paragraph
                                      (c)(1) of this section . .
                                      . 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 . . .
----------------------------------------------------------------------------------------------------------------
1206.110(a)........................  How do I determine a                    AUDIT PROCESS. See note.
                                      transportation allowance
                                      under an arm's-length
                                      transportation contract?
                                     (a) . . . You must be able
                                      to demonstrate that your
                                      or your affiliate's
                                      contract is at arm's
                                      length. . . ..
----------------------------------------------------------------------------------------------------------------
1206.110(d)(3).....................  (d) If your arm's-length                 20               2              40
                                      transportation contract
                                      includes more than one
                                      liquid product, and the
                                      transportation costs
                                      attributable to each
                                      product cannot be
                                      determined . . .
                                     (3) You may propose to ONRR
                                      a cost allocation method .
                                      . .
----------------------------------------------------------------------------------------------------------------
1206.110(e)........................  (e) If your arm's-length                 20               1              20
                                      transportation contract
                                      includes both gaseous and
                                      liquid products, and the
                                      transportation costs
                                      attributable to each
                                      product cannot be
                                      determined from the
                                      contract, then you must
                                      propose an allocation
                                      procedure to ONRR.
----------------------------------------------------------------------------------------------------------------

[[Page 36330]]

 
1206.110(e)(1) and (e)(2)..........  (e)(1) . . . If ONRR          Burden covered under OMB Control Number 1012-
                                      rejects your cost                                0004.
                                      allocation, you must amend
                                      your Form ONRR-2014 . . .
                                     (2) You must submit your
                                      initial proposal,
                                      including all available
                                      data, within 3 months
                                      after first claiming the
                                      allocated deductions on
                                      Form ONRR-2014.
----------------------------------------------------------------------------------------------------------------
1206.110(g)(2).....................  (g) If your arm's-length                  5               1               5
                                      sales contract includes a
                                      provision reducing the
                                      contract price by a
                                      transportation factor, . .
                                      .
                                     (2) You must obtain ONRR
                                      approval before claiming a
                                      transportation factor in
                                      excess of 50 percent of
                                      the base price of the
                                      product.
----------------------------------------------------------------------------------------------------------------
1206.111(g)........................  How do I determine a                     30               1              30
                                      transportation allowance
                                      if I do not have an arm's-
                                      length transportation
                                      contract or arm's-length
                                      tariff?
                                     (g) To compute
                                      depreciation, you may
                                      elect to use either . . .
                                      After you make an
                                      election, you may not
                                      change methods without
                                      ONRR approval . . .
----------------------------------------------------------------------------------------------------------------
1206.111(k)(2).....................  (k)(2) You may propose to                30               1              30
                                      ONRR a cost allocation
                                      method on the basis of the
                                      values . . .
----------------------------------------------------------------------------------------------------------------
1206.111(l)(1) and (l)(3)..........  (l)(1) Where you transport               20               1              20
                                      both gaseous and liquid
                                      products through the same
                                      transportation system, you
                                      must propose a cost
                                      allocation procedure to
                                      ONRR . . .
                                     (3) You must submit your
                                      initial proposal,
                                      including all available
                                      data, within 3 months
                                      after first claiming the
                                      allocated deductions on
                                      Form ONRR-2014.
----------------------------------------------------------------------------------------------------------------
1206.111(l)(2).....................  (l)(2) . . . If ONRR          Burden covered under OMB Control Number 1012-
                                      rejects your cost                                0004.
                                      allocation, you must amend
                                      your Form ONRR-2104 for
                                      the months that you used
                                      the rejected method and
                                      pay any additional royalty
                                      and interest due.
----------------------------------------------------------------------------------------------------------------
1206.112(a)(1)(ii).................  What adjustments and                     80               1              80
                                      transportation allowances
                                      apply when I value oil
                                      production from my lease
                                      using NYMEX prices or ANS
                                      spot prices?
                                     (a)(1)(ii) . . . under an
                                      exchange agreement that is
                                      not at arm's length, you
                                      must obtain approval from
                                      ONRR for a location and
                                      quality differential . . .
----------------------------------------------------------------------------------------------------------------
1206.112(a)(1)(ii).................  (a)(1)(ii) . . . If ONRR                 20               2              40
                                      prescribes a different
                                      differential, you must
                                      apply . . . You must pay
                                      any additional royalties
                                      owed . . . plus the late
                                      payment interest from the
                                      original royalty due date,
                                      or you may report a credit
                                      . . .
----------------------------------------------------------------------------------------------------------------
1206.112(a)(3) and (a)(4)..........  (a)(3) If you transport or               80               4             320
                                      exchange at arm's length
                                      (or both transport and
                                      exchange) at least 20
                                      percent, but not all, of
                                      your oil produced from the
                                      lease to a market center,
                                      determine the adjustment
                                      between the lease and the
                                      market center for the oil
                                      that is not transported or
                                      exchanged (or both
                                      transported and exchanged)
                                      to or through a market
                                      center as follows: . . .
                                     (4) If you transport or
                                      exchange (or both
                                      transport and exchange)
                                      less than 20 percent of
                                      your crude oil produced
                                      from the lease between the
                                      lease and a market center,
                                      you must propose to ONRR
                                      an adjustment between the
                                      lease and the market
                                      center for the portion of
                                      the oil that you do not
                                      transport or exchange (or
                                      both transport and
                                      exchange) to a market
                                      center. . . . If ONRR
                                      prescribes a different
                                      adjustment. . . . You must
                                      pay any additional
                                      royalties owed . . . plus
                                      the late payment interest
                                      from the original royalty
                                      due date, or you may
                                      report a credit . . .
----------------------------------------------------------------------------------------------------------------

[[Page 36331]]

 
1206.112(b)(3).....................  (b)(3) . . . you may                     80               4             320
                                      propose an alternative
                                      differential to ONRR. . .
                                      . If ONRR prescribes a
                                      different differential. .
                                      . . You must pay any
                                      additional royalties owed
                                      . . . plus the late
                                      payment interest from the
                                      original royalty due date,
                                      or you may report a credit
                                      . . .
----------------------------------------------------------------------------------------------------------------
1206.112(c)(2).....................  (c)(2) . . . If quality                  80               2             160
                                      bank adjustments do not
                                      incorporate or provide for
                                      adjustments for sulfur
                                      content, you may make
                                      sulfur adjustments, based
                                      on the quality of the
                                      representative crude oil
                                      at the market center, of
                                      5.0 cents per one-tenth
                                      percent difference in
                                      sulfur content, unless
                                      ONRR approves a higher
                                      adjustment.
----------------------------------------------------------------------------------------------------------------
1206.114...........................  What are my reporting
                                      requirements under an
                                      arm's-length
                                      transportation contract?
                                     You or your affiliate must    Burden covered under OMB Control Number 1012-
                                      use a separate entry on                          0004.
                                      Form ONRR-2014 to notify
                                      ONRR of an allowance based
                                      on transportation costs
                                      you or your affiliate
                                      incur.
                                    ----------------------------------------------------------------------------
                                     ONRR may require you or                 AUDIT PROCESS. See note.
                                      your affiliate to submit
                                      arm's-length
                                      transportation contracts,
                                      production agreements,
                                      operating agreements, and
                                      related documents . . .
----------------------------------------------------------------------------------------------------------------
1206.115(a)........................  What are my reporting         Burden covered under OMB Control Number 1012-
                                      requirements under a non-                        0004.
                                      arm's-length
                                      transportation
                                      arrangement?
                                     (a) You or your affiliate
                                      must use a separate entry
                                      on Form ONRR-2014 to
                                      notify ONRR of an
                                      allowance based on
                                      transportation costs you
                                      or your affiliate incur.
----------------------------------------------------------------------------------------------------------------
1206.115(c)........................  (c) ONRR may require you or             AUDIT PROCESS. See note.
                                      your affiliate to submit
                                      all data used to calculate
                                      the allowance deduction .
                                      . .
----------------------------------------------------------------------------------------------------------------
                                             Subpart D--Federal Gas
----------------------------------------------------------------------------------------------------------------
1206.152(b)(1)(i) and (b)(1)(iii)..  Valuation standards--                   AUDIT PROCESS. See note.
                                      unprocessed gas.
                                     (b)(1)(i) . . . The lessee
                                      shall have the burden of
                                      demonstrating that its
                                      contract is arm's-length.
                                      . . . (iii) . . . When
                                      ONRR determines that the
                                      value may be unreasonable,
                                      ONRR will notify the
                                      lessee and give the lessee
                                      an opportunity to provide
                                      written information
                                      justifying the lessee's
                                      value.
----------------------------------------------------------------------------------------------------------------
1206.152(b)(2).....................  (b)(2) . . . The lessee                  80               1              80
                                      must request a value
                                      determination in
                                      accordance with paragraph
                                      (g) of this section for
                                      gas sold pursuant to a
                                      warranty contract; . . .
----------------------------------------------------------------------------------------------------------------
1206.152(b)(3).....................  (b)(3) ONRR may require a               AUDIT PROCESS. See note.
                                      lessee to certify that its
                                      arm's-length contract
                                      provisions include all of
                                      the consideration to be
                                      paid by the buyer, either
                                      directly or indirectly,
                                      for the gas.
----------------------------------------------------------------------------------------------------------------
1206.152(e)(1).....................  (e)(1) Where the value is     Burden covered under OMB Control Number 1012-
                                      determined pursuant to                           0004.
                                      paragraph (c) of this
                                      section, the lessee shall
                                      retain all data relevant
                                      to the determination of
                                      royalty value . . .
----------------------------------------------------------------------------------------------------------------
1206.152(e)(2).....................  206.152(e)(2) Any Federal               AUDIT PROCESS. See note.
                                      lessee will make available
                                      upon request to the
                                      authorized ONRR or State
                                      representatives, to the
                                      Office of the Inspector
                                      General of the department
                                      of the Interior, or other
                                      person authorized to
                                      receive such information,
                                      arm's-length sales and
                                      volume data for like-
                                      quality production sold,
                                      purchased or otherwise
                                      obtained by the lessee
                                      from the field or area or
                                      from nearby fields or
                                      areas.
----------------------------------------------------------------------------------------------------------------
1206.152(e)(3).....................  (e)(3) A lessee shall                    10              10             100
                                      notify ONRR if it has
                                      determined value pursuant
                                      to paragraph (c)(2) or
                                      (c)(3) of this section . .
                                      .
----------------------------------------------------------------------------------------------------------------

[[Page 36332]]

 
1206.152(g)........................  (g) The lessee may request               40               5             200
                                      a value determination from
                                      ONRR . . . The lessee
                                      shall submit all available
                                      data relevant to its
                                      proposal . . .
----------------------------------------------------------------------------------------------------------------
1206.153(b)(1)(i) and (b)(1)(iii)..  Valuation standards--                   AUDIT PROCESS. See note.
                                      processed gas.
                                     (b)(1)(i) . . . The lessee
                                      shall have the burden of
                                      demonstrating that its
                                      contract is arm's-length .
                                      . .
                                     (iii) . . . When ONRR
                                      determines that the value
                                      may be unreasonable, ONRR
                                      will notify the lessee and
                                      give the lessee an
                                      opportunity to provide
                                      written information
                                      justifying the lessee's
                                      value.
----------------------------------------------------------------------------------------------------------------
1206.153(b)(2).....................  (b)(2) . . . The lessee                  80               1              80
                                      must request a value
                                      determination in
                                      accordance with paragraph
                                      (g) of this section for
                                      gas sold pursuant to a
                                      warranty contract; . . .
----------------------------------------------------------------------------------------------------------------
1206.153(b)(3).....................  (b)(3) ONRR may require a               AUDIT PROCESS. See note.
                                      lessee to certify that its
                                      arm's-length contract
                                      provisions include all of
                                      the consideration to be
                                      paid by the buyer, either
                                      directly or indirectly,
                                      for the residue gas or gas
                                      plant product.
----------------------------------------------------------------------------------------------------------------
1206.153(e)(1).....................  (e)(1) Where the value is     Burden covered under OMB Control Number 1012-
                                      determined pursuant to                           0004.
                                      paragraph (c) of this
                                      section, the lessee shall
                                      retain all data relevant
                                      to the determination of
                                      royalty value . . .
----------------------------------------------------------------------------------------------------------------
1206.153(e)(2).....................  (e)(2) Any Federal lessee               AUDIT PROCESS. See note.
                                      will make available upon
                                      request to the authorized
                                      ONRR or State
                                      representatives, to the
                                      Office of the Inspector
                                      General of the Department
                                      of the Interior, or other
                                      persons authorized to
                                      receive such information,
                                      arm's-length sales and
                                      volume data for like-
                                      quality residue gas and
                                      gas plant products sold,
                                      purchased or otherwise
                                      obtained by the lessee
                                      from the same processing
                                      plant or from nearby
                                      processing plants.
----------------------------------------------------------------------------------------------------------------
1206.153(e)(3).....................  (e)(2) A lessee shall                    10               2              20
                                      notify ONRR if it has
                                      determined any value
                                      pursuant to paragraph
                                      (c)(2) or (c)(3) of this
                                      section . . .
----------------------------------------------------------------------------------------------------------------
1206.153(g)........................  206.153(g) The lessee may                80              15           1,200
                                      request a value
                                      determination from ONRR .
                                      . . The lessee shall
                                      submit all available data
                                      relevant to its proposal .
                                      . .
----------------------------------------------------------------------------------------------------------------
1206.154(c)(4).....................  Determination of quantities              40               1              40
                                      and qualities for
                                      computing royalties.
                                     (c)(4) . . . A lessee may
                                      request ONRR approval of
                                      other methods for
                                      determining the quantity
                                      of residue gas and gas
                                      plant products allocable
                                      to each lease . . .
----------------------------------------------------------------------------------------------------------------
1206.156(c)(3).....................  Transportation allowances--              40               7             280
                                      general.
                                     (c)(3) Upon request of a
                                      lessee, ONRR may approve a
                                      transportation allowance
                                      deduction in excess of the
                                      limitation prescribed by
                                      paragraphs (c)(1) and
                                      (c)(2) 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. . . .
----------------------------------------------------------------------------------------------------------------
1206.157(a)(1)(i)..................  Determination of
                                      transportation allowances.
                                     (a) Arm's-length                        AUDIT PROCESS. See note.
                                      transportation contracts.
                                      (1)(i) . . . The lessee
                                      shall have the burden of
                                      demonstrating that its
                                      contract is arm's-length .
                                      . .
                                    ----------------------------------------------------------------------------
                                     The lessee must claim a       Burden covered under OMB Control Number 1012-
                                      transportation allowance                         0004.
                                      by reporting it on a
                                      separate line entry on the
                                      Form ONRR-2014.
----------------------------------------------------------------------------------------------------------------

[[Page 36333]]

 
1206.157(a)(1)(iii)................  (a)(1)(iii) . . . When ONRR             AUDIT PROCESS. See note.
                                      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.
----------------------------------------------------------------------------------------------------------------
1206.157(a)(2)(ii).................  (a)(2)(ii) . . . the lessee              40               1              40
                                      may propose to ONRR a cost
                                      allocation method on the
                                      basis of the values of the
                                      products transported . . .
----------------------------------------------------------------------------------------------------------------
1206.157(a)(3).....................  (a)(3) If an arm's-length                40               1              40
                                      transportation contract
                                      includes both gaseous and
                                      liquid products and the
                                      transportation costs
                                      attributable to each
                                      cannot be determined from
                                      the contract, the lessee
                                      shall propose an
                                      allocation procedure to
                                      ONRR . . . The lessee
                                      shall submit all relevant
                                      data to support its
                                      proposal . . .
----------------------------------------------------------------------------------------------------------------
1206.157(a)(5).....................  (a)(5) . . . The                         10               3              30
                                      transportation factor may
                                      not exceed 50 percent of
                                      the base price of the
                                      product without ONRR
                                      approval.
----------------------------------------------------------------------------------------------------------------
1206.157(b)(1).....................  (b) Non-arm's-length or no    Burden covered under OMB Control Number 1012-
                                      contract. (1) The lessee                         0004.
                                      must claim a
                                      transportation allowance
                                      by reporting it on a
                                      separate line entry on the
                                      Form ONRR-2014 . . .
----------------------------------------------------------------------------------------------------------------
1206.157(b)(2)(iv) and               (b)(2)(iv) . . . After a                100               1             100
 (b)(2)(iv)(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 the ONRR.
                                     (A) . . . After an election
                                      is made, the lessee may
                                      not change methods without
                                      ONRR approval . . .
----------------------------------------------------------------------------------------------------------------
1206.157(b)(3)(i)..................  (b)(3)(i) . . . Except as               100               1             100
                                      provided in this
                                      paragraph, the lessee may
                                      not take an allowance for
                                      transporting a product
                                      which is not royalty
                                      bearing without ONRR
                                      approval.
----------------------------------------------------------------------------------------------------------------
1206.157(b)(3)(ii).................  (b)(3)(ii) . . . the lessee             100               1             100
                                      may propose to the ONRR a
                                      cost allocation method on
                                      the basis of the values of
                                      the products transported .
                                      . .
----------------------------------------------------------------------------------------------------------------
1206.157(b)(4).....................  (b)(4) Where both gaseous               100               1             100
                                      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 relevant data to
                                      support its proposal . . .
----------------------------------------------------------------------------------------------------------------
1206.157(b)(5).....................  (b)(5) You may apply for an             100               1             100
                                      exception from the
                                      requirement to compute
                                      actual costs under
                                      paragraphs (b)(1) through
                                      (b)(4) of this section.
----------------------------------------------------------------------------------------------------------------
1206.157(c)(1)(i)..................  (c) Reporting Requirements.   Burden covered under OMB Control Number 1012-
                                      (1) Arm's-length                                 0004.
                                      contracts. (i) You must
                                      use a separate entry on
                                      Form ONRR-2014 to notify
                                      ONRR of a transportation
                                      allowance.
----------------------------------------------------------------------------------------------------------------
1206.157(c)(1)(ii).................  (c)(1)(ii) ONRR may require             AUDIT PROCESS. See note.
                                      you to submit arm's-length
                                      transportation contracts,
                                      production agreements,
                                      operating agreements, and
                                      related documents . . .
----------------------------------------------------------------------------------------------------------------
1206.157(c)(2)(i)..................  (c)(2) Non-arm's-length or    Burden covered under OMB Control Number 1012-
                                      no contract. (i) You must                        0004.
                                      use a separate entry on
                                      Form ONRR-2014 to notify
                                      ONRR of a transportation
                                      allowance.
----------------------------------------------------------------------------------------------------------------
1206.157(c)(2)(iii)................  (c)(2)(iii) ONRR may                    AUDIT PROCESS. See note.
                                      require you to submit all
                                      data used to calculate the
                                      allowance deduction . . .
----------------------------------------------------------------------------------------------------------------

[[Page 36334]]

 
1206.157(e)(2), (e)(3), and (f)(1).  (e) Adjustments. (2) For      Burden covered under OMB Control Number 1012-
                                      lessees transporting                             0004.
                                      production from onshore
                                      Federal leases, the lessee
                                      must submit a corrected
                                      Form ONRR-2014 to reflect
                                      actual costs, together
                                      with any payment, in
                                      accordance with
                                      instructions provided by
                                      ONRR. (3) For lessees
                                      transporting gas
                                      production from leases on
                                      the OCS, if the lessee's
                                      estimated transportation
                                      allowance exceeds the
                                      allowance based on actual
                                      costs, the lessee must
                                      submit a corrected Form
                                      ONRR-2014 to reflect
                                      actual costs, together
                                      with its payments, in
                                      accordance with
                                      instructions provided by
                                      ONRR . . .
                                     (f) Allowable costs in
                                      determining transportation
                                      allowances . . . (1) Firm
                                      demand charges paid to
                                      pipelines . . . if you
                                      receive a payment or
                                      credit from the pipeline
                                      for penalty refunds, rate
                                      case refunds, or other
                                      reasons, you must reduce
                                      the firm demand charge
                                      claimed on the Form ONRR-
                                      2014 by the amount of that
                                      payment. You must modify
                                      Form ONRR-2014 by the
                                      amount received or
                                      credited for the affected
                                      reporting period and pay
                                      any resulting royalty and
                                      late payment interest due;
----------------------------------------------------------------------------------------------------------------
1206.158(c)(3).....................  Processing allowances--                  80              10             800
                                      general.
                                     (c)(3) Upon request of a
                                      lessee, ONRR may approve a
                                      processing allowance in
                                      excess of the limitation
                                      prescribed by paragraph
                                      (c)(2) of this section . .
                                      . An application for
                                      exception (using Form ONRR-
                                      4393, Request to Exceed
                                      Regulatory Allowance
                                      Limitation) shall contain
                                      all relevant and
                                      supporting documentation
                                      for ONRR to make a
                                      determination . . .
----------------------------------------------------------------------------------------------------------------
1206.158(d)(2)(i)..................  (d)(2)(i) If the lessee                  80               1              80
                                      incurs extraordinary costs
                                      for processing gas
                                      production from a gas
                                      production operation, it
                                      may apply to ONRR for an
                                      allowance for those costs
                                      . . .
----------------------------------------------------------------------------------------------------------------
1206.158(d)(2)(ii).................  (d)(2)(ii) . . . to retain    Burden covered under OMB Control Number 1012-
                                      the authority to deduct                          0004.
                                      the allowance the lessee
                                      must report the deduction
                                      to ONRR in a form and
                                      manner prescribed by ONRR.
----------------------------------------------------------------------------------------------------------------
1206.159(a)(1)(i)..................  Determination of processing
                                      allowances.
                                    ----------------------------------------------------------------------------
                                     (a) Arm's-length processing             AUDIT PROCESS. See note.
                                      contracts.
                                     (1)(i) . . . The lessee
                                      shall have the burden of
                                      demonstrating that its
                                      contract is arm's-length .
                                      . .
                                    ----------------------------------------------------------------------------
                                     The lessee must claim a       Burden covered under OMB Control Number 1012-
                                      processing allowance by                          0004.
                                      reporting it on a separate
                                      line entry on the Form
                                      ONRR-2014.
----------------------------------------------------------------------------------------------------------------
1206.159(a)(1)(iii)................  (a)(1)(iii) . . . When ONRR             AUDIT PROCESS. See note.
                                      determines that the value
                                      of the processing may be
                                      unreasonable, ONRR will
                                      notify the lessee and give
                                      the lessee an opportunity
                                      to provide written
                                      information justifying the
                                      lessee's processing costs.
----------------------------------------------------------------------------------------------------------------
1206.159(a)(3).....................  (a)(3) If an arm's-length                20               1              20
                                      processing contract
                                      includes more than one gas
                                      plant product and the
                                      processing 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 relevant data to
                                      support its proposal . . .
----------------------------------------------------------------------------------------------------------------
1206.159(b)(1).....................  (b) Non-arm's-length or no    Burden covered under OMB Control Number 1012-
                                      contract. (1) . . . The                          0004.
                                      lessee must claim a
                                      processing allowance by
                                      reflecting it as a
                                      separate line entry on the
                                      Form ONRR-2014 . . .
----------------------------------------------------------------------------------------------------------------
1206.159(b)(2)(iv) and               (b)(2)(iv) . . . When a                 100               1             100
 (b)(2)(iv)(A).                       lessee has elected to use
                                      either method for a
                                      processing plant, the
                                      lessee may not later elect
                                      to change to the
                                      alternative without
                                      approval of the ONRR.
                                     (A) . . . After an election
                                      is made, the lessee may
                                      not change methods without
                                      ONRR approval . . .
----------------------------------------------------------------------------------------------------------------

[[Page 36335]]

 
1206.159(b)(4).....................  (b)(4) A lessee may apply               100               1             100
                                      to ONRR for an exception
                                      from the requirements that
                                      it compute actual costs in
                                      accordance with paragraphs
                                      (b)(1) through (b)(3) of
                                      this section . . .
----------------------------------------------------------------------------------------------------------------
1206.159(c)(1)(i)..................  (c) Reporting requirements--  Burden covered under OMB Control Number 1012-
                                      (1) Arm's-length                                 0004.
                                      contracts. (i) The lessee
                                      must notify ONRR of an
                                      allowance based on
                                      incurred costs by using a
                                      separate line entry on the
                                      Form ONRR-2014.
----------------------------------------------------------------------------------------------------------------
1206.159(c)(1)(ii).................  (c)(1)(ii) ONRR may require             AUDIT PROCESS. See note.
                                      that a lessee submit arm's-
                                      length processing
                                      contracts and related
                                      documents . . .
----------------------------------------------------------------------------------------------------------------
1206.159(c)(2)(i)..................  (c)(2) Non-arm's-length or    Burden covered under OMB Control Number 1012-
                                      no contract. (i) The                             0004.
                                      lessee must notify ONRR of
                                      an allowance based on
                                      incurred costs by using a
                                      separate line entry on the
                                      Form ONRR-2014.
----------------------------------------------------------------------------------------------------------------
1206.159(c)(2)(iii)................  (c)(2)(iii) Upon request by             AUDIT PROCESS. See note.
                                      ONRR, the lessee shall
                                      submit all data used to
                                      prepare the allowance
                                      deduction . . .
----------------------------------------------------------------------------------------------------------------
1206.159(e)(2) and (e)(3)..........  (e) Adjustments . . . (2)     Burden covered under OMB Control Number 1012-
                                      For lessees processing                           0004.
                                      production from onshore
                                      Federal leases, the lessee
                                      must submit a corrected
                                      Form ONRR-2014 to reflect
                                      actual costs, together
                                      with any payment, in
                                      accordance with
                                      instructions provided by
                                      ONRR. (3) For lessees
                                      processing gas production
                                      from leases on the OCS, if
                                      the lessee's estimated
                                      processing allowance
                                      exceeds the allowance
                                      based on actual costs, the
                                      lessee must submit a
                                      corrected Form ONRR-2014
                                      to reflect actual costs,
                                      together with its payment,
                                      in accordance with
                                      instructions provided by
                                      ONRR . . .
----------------------------------------------------------------------------------------------------------------
    Oil and Gas Valuation Subtotal.  ...........................  ..............             123            8992
----------------------------------------------------------------------------------------------------------------
        TOTAL......................  ...........................  ..............             133            9518
----------------------------------------------------------------------------------------------------------------
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.

    This 60-day Federal Register notice burden chart shows an 
adjustment increase of +320 burden hours. This adjustment is based on 
analyzed historical data since 2013 for the transportation and 
processing allowances (1206.156(c)(3) and 1206.158(c)(3)). The 
transportation processing allowance increased from 120 to 280 burden 
hours and the processing allowance increased from 640 to 800 burden 
hours for a total increase of +320 annual burden hours.
    Estimated Annual Reporting and Recordkeeping ``Non-hour'' Cost 
Burden: We have not identified a ``non-hour'' cost burden associated 
with the collection of information.
    Public Disclosure Statement: The PRA (44 U.S.C. 3501 et seq.) 
provides that an agency may not conduct or sponsor, and a person does 
not have 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 (a) evaluate whether the proposed 
collection of information is necessary for the agency to perform its 
duties, including whether the information is useful; (b) evaluate the 
accuracy of the agency's estimate of the burden of the proposed 
collection of information; (c) enhance the quality, usefulness, and 
clarity of the information that ONRR collects; and (d) 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. 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

[[Page 36336]]

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, without charge, upon request. We also will post the ICR at 
http://www.onrr.gov/Laws_R_D/FRNotices/ICR0136.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.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a 
currently valid Office of Management and Budget control number.

    Dated: May 26, 2016.
Gregory J. Gould,
Director, Office of Natural Resources Revenue.
[FR Doc. 2016-13206 Filed 6-3-16; 8:45 am]
 BILLING CODE 4335-30-P



                                                                                Federal Register / Vol. 81, No. 108 / Monday, June 6, 2016 / Notices                                              36325

                                                population of wolves on the island for                  submitted on behalf of others will not be                 2. Email comments to Mr. Luis
                                                at least the next 20 years, which is the                accepted. Before including your                        Aguilar, Regulatory Specialist, at
                                                anticipated life of the plan. The wolf                  address, phone number, email address,                  luis.aguilar@onrr.gov.
                                                population range and number of                          or other personal identifying                             3. Hand-carry or mail comments,
                                                breeding pairs to be maintained on the                  information in your comment, you                       using an overnight courier service, to
                                                island would be determined based on                     should be aware that your entire                       ONRR. Our courier address is Building
                                                best available science and professional                 comment—including your personal                        85, Room A–614, Denver Federal
                                                judgement. This action would occur as                   identifying information—may be made                    Center, West 6th Ave. and Kipling St.,
                                                soon as possible following a signed                     publicly available at any time. While                  Denver, Colorado 80225.
                                                record of decision. Under Alternative D,                you can ask us in your comment to                      FOR FURTHER INFORMATION CONTACT: For
                                                the NPS would not take immediate                        withhold your personal identifying                     any questions, contact Mr. Luis Aguilar,
                                                action and would continue current                       information from public review, we                     telephone (303) 231–3418, or email at
                                                management, allowing natural processes                  cannot guarantee that we will be able to               luis.aguilar@onrr.gov. You may also
                                                to continue. One or more resource                       do so.                                                 contact Mr. Aguilar to obtain copies, at
                                                indicators and thresholds would be                                                                             no cost, of (1) the ICR, (2) any associated
                                                developed to evaluate the condition of                  Cameron H. Sholly,
                                                                                                        Regional Director, Midwest Region.                     forms, and (3) the regulations that
                                                key resources, which could include                                                                             require us to collect the information.
                                                moose or vegetation-based parameters. If                [FR Doc. 2016–13184 Filed 6–3–16; 8:45 am]
                                                                                                                                                               SUPPLEMENTARY INFORMATION:
                                                a threshold is met, wolves would be                     BILLING CODE 4310–MA–P
                                                brought to Isle Royale as a one-time                                                                           I Abstract
                                                event (per alternative B) or through
                                                                                                        DEPARTMENT OF THE INTERIOR                               The Secretary of the United States
                                                multiple introductions (per alternative
                                                                                                                                                               Department of the Interior is responsible
                                                C). The NPS will not select an
                                                                                                        Office of Natural Resources Revenue                    for mineral resource development on
                                                alternative for implementation until
                                                                                                                                                               Federal and Indian lands and the Outer
                                                after a final EIS is completed.                         [Docket No. ONRR–2012–0006; DS63642000
                                                   Given the revised scope of the EIS,                  DR2PS0000.CH7000 167D0102R2]
                                                                                                                                                               Continental Shelf (OCS). The Secretary’s
                                                actions to manage moose, such as                                                                               responsibility, according to various
                                                culling or translocation of moose, as                   Agency Information Collection                          laws, is to manage mineral resource
                                                well as actions to manage vegetation,                   Activities: Federal Oil and Gas                        production from Federal and Indian
                                                such as fire, direct restoration, or other              Valuation; Comment Request                             lands and the OCS, collect the royalties
                                                tools, will not be considered in this EIS.                                                                     and other mineral revenues due, and
                                                                                                        AGENCY: Office of Natural Resources                    distribute the funds collected under
                                                After a decision is made regarding
                                                                                                        Revenue (ONRR), Interior.                              those laws. We have posted those laws
                                                whether and how to bring wolves to Isle
                                                                                                        ACTION: Notice of an extension.                        pertaining to mineral leases on Federal
                                                Royale, the NPS will monitor conditions
                                                on the island, and will initiate                                                                               and Indian lands and the OCS at http://
                                                                                                        SUMMARY:    To comply with the
                                                additional planning processes to                                                                               www.onrr.gov/Laws_R_D/PubLaws/
                                                                                                        Paperwork Reduction Act of 1995
                                                address other aspects of the island                                                                            default.htm.
                                                                                                        (PRA), ONRR is inviting comments on a
                                                ecosystem, such as the moose                                                                                     The Secretary also has a trust
                                                                                                        collection of information requests that
                                                population and forest community, if                                                                            responsibility to manage Indian lands
                                                                                                        we will submit to the Office of
                                                such planning processes are deemed                                                                             and seek advice and information from
                                                                                                        Management and Budget (OMB) for
                                                necessary.                                                                                                     Indian beneficiaries. ONRR performs the
                                                                                                        review and approval. This Information
                                                   All comments received during the                                                                            minerals revenue management functions
                                                                                                        Collection Request (ICR) covers the
                                                scoping period that was announced in                                                                           for the Secretary and assists the
                                                                                                        paperwork requirements in the
                                                the July 2015 NOI are available online                                                                         Secretary in carrying out the
                                                                                                        regulations under title 30, Code of
                                                at http://parkplanning.nps.gov/                                                                                Department’s trust responsibility for
                                                                                                        Federal Regulations (CFR), parts 1202,
                                                ISROwolves and will be considered. If                                                                          Indian lands.
                                                                                                        1204, and 1206. This ICR pertains to
                                                you would like to provide additional                                                                             You can find the information
                                                                                                        Federal oil and gas valuation
                                                comments regarding the revised scope                                                                           collections covered in this ICR at 30
                                                                                                        regulations, which include
                                                of the plan, you may do so through the                                                                         CFR parts:
                                                                                                        transportation and processing regulatory
                                                following methods.                                                                                               • 1202, subparts C and D, which
                                                                                                        allowance limits and accounting and
                                                   The preferred method for submitting                                                                         pertain to Federal oil and gas royalties.
                                                                                                        auditing relief for marginal properties.
                                                comments is on the NPS PEPC Web site                                                                             • 1204, subpart C, which pertains to
                                                at http://parkplanning.nps.gov/                         Also, there is one form (ONRR–4393)
                                                                                                                                                               accounting and auditing relief for
                                                ISROwolves. You may also mail or                        associated with this information
                                                                                                                                                               marginal properties.
                                                                                                        collection.
                                                hand-deliver your comments to                                                                                    • 1206, subparts C and D, which
                                                Superintendent Phyllis Green, Isle                      DATES: Submit written comments on or                   pertain to Federal oil and gas product
                                                Royale National Park, ISRO Wolves, 800                  before August 5, 2016.                                 valuation.
                                                East Lakeshore Drive, Houghton,                         ADDRESSES: You may submit comments
                                                                                                                                                               General Information
                                                Michigan 49931–1896. The NPS will                       on this ICR to ONRR by using one of the
                                                consider all additional comments                        following three methods (please                          When a company or an individual
                                                received or postmarked no later than 30-                reference ‘‘ICR 1012–0005’’ in your                    enters into a lease to explore, develop,
                                                days from the date this NOI is published                comments):                                             produce, and dispose of minerals from
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                                                in the Federal Register. Comments                          1. Electronically go to http://                     Federal or Indian lands, that company
                                                submitted after that date will be                       www.regulations.gov. In the entry titled               or individual agrees to pay the lessor a
                                                considered to the extent practicable.                   ‘‘Enter Keyword or ID,’’ enter ‘‘ONRR–                 share in an amount or value of
                                                   Comments will not be accepted by                     2012–0005’’ and then click ‘‘Search.’’                 production from the leased lands. The
                                                fax, email, or any other way than those                 Follow the instructions to submit public               mineral lease laws require the lessee, or
                                                specified above. Bulk comments in any                   comments. ONRR will post all                           his designee, to report various kinds of
                                                format (hard copy or electronic)                        comments.                                              information to the lessor relative to the


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                                                36326                                  Federal Register / Vol. 81, No. 108 / Monday, June 6, 2016 / Notices

                                                disposition of the leased minerals. Such                        allowable limit on transportation                      (1) to value their Federal oil and gas,
                                                information is generally available                              allowance deductions at 50 percent of                  including (a) transportation and
                                                within the records of the lessee or others                      the value of the oil or gas. For gas only,             processing allowances and (b)
                                                involved in developing, transporting,                           regulations establish the allowable limit              regulatory allowance limit information
                                                processing, purchasing, or selling of                           on processing allowance deductions at                  and (2) to request accounting and
                                                such minerals.                                                  662⁄3 percent of the value of each gas                 auditing relief approval for qualifying
                                                                                                                plant product.                                         Federal marginal properties. If ONRR
                                                Information Collections                                            Request to Exceed Regulatory                        does not collect this information, this
                                                  ONRR uses the information that we                             Allowance Limitation, form ONRR–
                                                collect in this ICR to ensure that lessees                                                                             would limit the Secretary’s ability to
                                                                                                                4393: Lessees may request to exceed
                                                accurately value and appropriately pay                                                                                 discharge fiduciary duties and may also
                                                                                                                regulatory limitations. Upon proper
                                                royalties on oil and gas produced from                          application from the lessee, ONRR may                  result in loss of royalty payments.
                                                Federal onshore and offshore leases.                            approve oil or gas transportation                      ONRR protects the proprietary
                                                Please refer to the chart for all reporting                     allowance in excess of 50 percent or gas               information that we receive, and we do
                                                requirements and associated burden                              processing allowance in excess of 662⁄3                not collect items of a sensitive nature.
                                                hours. All data submitted is subject to                         percent on Federal leases. Lessees use                   ONRR requires lessees to respond to
                                                subsequent audit and adjustment.                                form ONRR–4393 for both Federal and                    information collections relating to
                                                A. Federal Oil and Gas Valuation                                Indian leases to request to exceed                     valuation requirements.
                                                Regulations                                                     allowance limitations. This ICR covers
                                                                                                                only Federal leases; therefore, we have                II. Data
                                                   The valuation regulations at 30 CFR                          not included burden hours of form
                                                part 1206, subparts C and D, mandate                                                                                     Title: 30 CFR parts 1202, 1204, and
                                                                                                                ONRR–4393 for Indian leases in this
                                                that companies collect and submit                               ICR. We include burden hours for form                  1206, Federal Oil and Gas Valuation.
                                                information used to value their Federal                         ONRR–4393 for Indian leases in OMB                       OMB Control Number: 1012–0005.
                                                oil and gas, including (1) transportation                       Control Number 1012–0002.                                Bureau Form Number: Form ONRR–
                                                and processing allowances and (2)
                                                                                                                B. Accounting and Auditing Relief for                  4393.
                                                regulatory allowance limit information.
                                                Companies report certain data on form                           Marginal Properties                                      Frequency: Annually and on occasion.
                                                ONRR–2014, Report of Sales and                                    In 2004, we amended our regulations                    Estimated Number and Description of
                                                Royalty Remittance. The information                             to comply with section 7 of the Federal                Respondents: 120 Federal lessees/
                                                that we request is the minimum                                  Oil and Gas Royalty Simplification and                 designees and 7 States for Federal oil
                                                necessary to carry out our mission and                          Fairness Act of 1996. These regulations                and gas.
                                                places the least possible burden on                             provide guidance for lessees and
                                                respondents. If ONRR does not collect                           designees seeking accounting and                         Estimated Annual Reporting and
                                                this information, both Federal and State                        auditing relief for qualifying Federal                 Recordkeeping ‘‘Hour’’ Burden: 9,518
                                                governments may incur a loss of                                 marginal properties. Under the                         hours.
                                                royalties.                                                      regulations, both ONRR and the State                     We have not included in our
                                                   Transportation and Processing                                concerned must approve any relief                      estimates certain requirements
                                                Regulatory Allowance Limits: Lessees                            granted for a marginal property.                       performed in the normal course of
                                                may deduct actual costs of                                                                                             business and considered as usual and
                                                transportation and processing from                              OMB Approval
                                                                                                                                                                       customary. We display the estimated
                                                Federal royalties. The lessees report                             We will request OMB approval to                      annual burden hours by CFR section
                                                these allowances on form ONRR–2014.                             continue to collect, from companies,                   and paragraph in the following chart:
                                                For oil and gas, regulations establish the                      lessees, and designees, information used

                                                                                                      RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS
                                                                                                                                                                                         Average
                                                  30 CFR 1202, 1204, 1206,                                                                                                              number of   Annual burden
                                                                                                          Reporting and recordkeeping requirement                     Hour burden
                                                         and 1210                                                                                                                         annual       hours
                                                                                                                                                                                        responses

                                                                                                                           PART 1202—ROYALTIES

                                                                                                                      Subpart C—Federal and Indian Oil

                                                1202.101 .................................   Standards for reporting and paying royalties .........................    Burden covered under OMB Control Number
                                                                                             Oil volumes are to be reported in barrels of clean oil of 42                             1012–0004.
                                                                                               standard U.S. gallons (231 cubic inches each) at 60
                                                                                               °F . . .

                                                                                                                            Subpart D—Federal Gas

                                                1202.152(a) and (b) ................         Standards for reporting and paying royalties on gas .............         Burden covered under OMB Control Number
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                                                                                             (a)(1) If you are responsible for reporting production or roy-                           1012–0004.
                                                                                                 alties you must:
                                                                                             (i) Report gas volumes and British thermal unit (Btu) heating
                                                                                                 values, if applicable, under the same degree of water
                                                                                                 saturation;
                                                                                             (ii) Report gas volumes in units of 1,000 cubic feet (mcf);
                                                                                                 and



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                                                                                    Federal Register / Vol. 81, No. 108 / Monday, June 6, 2016 / Notices                                                  36327

                                                                                          RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
                                                                                                                                                                                      Average
                                                  30 CFR 1202, 1204, 1206,                                                                                                           number of       Annual burden
                                                                                                       Reporting and recordkeeping requirement                    Hour burden
                                                         and 1210                                                                                                                      annual           hours
                                                                                                                                                                                     responses

                                                                                          (iii) Report gas volumes and Btu heating value at a stand-
                                                                                              ard pressure base of 14.73 pounds per square inch abso-
                                                                                              lute (psia) and a standard temperature base of 60 °F . . .
                                                                                          (b) Residue gas and gas plant product volumes shall be re-
                                                                                              ported as specified in this paragraph . . .

                                                                                                  PART 1204—ALTERNATIVES FOR MARGINAL PROPERTIES

                                                                                                             Subpart C—Accounting and Auditing Relief

                                                1204.202(b)(1) ........................   What is the cumulative royalty reports and payments relief                          40                 1             40
                                                                                            option?
                                                                                          (b) To use the cumulative royalty reports and payments re-
                                                                                            lief option, you must do all of the following:
                                                                                          (1) Notify ONRR in writing by January 31 of the calendar
                                                                                            year for which you begin taking your relief . . .

                                                1204.202(b)(2) and (b)(3) .......         (b)(2) Submit your royalty report and payment . . . by the               Burden covered under OMB Control Number
                                                                                            end of February of the year following the calendar year                               1012–0004.
                                                                                            for which you reported annually . . . If you have an esti-
                                                                                            mated payment on file, you must submit your royalty re-
                                                                                            port and payment by the end of March of the year fol-
                                                                                            lowing the calendar year for which you reported annually;
                                                                                            (3) Use the sales month prior to the month that you sub-
                                                                                            mit your annual report and payment . . . for the entire
                                                                                            previous calendar year’s production for which you are
                                                                                            paying annually . . .

                                                1204.202(b)(4), (b)(5), (c),              (b)(4) Report one line of cumulative royalty information on              Burden covered under OMB Control Number
                                                  (d)(1), (d)(2), (e)(1), and                Form ONRR–2014 for the calendar year . . . And                                       1012–0004.
                                                  (e)(2).                                 (5) Report allowances on Form ONRR–2014 on the same
                                                                                             annual basis as the royalties for your marginal property
                                                                                             production.
                                                                                          (c) If you do not pay your royalty by the date due in para-
                                                                                             graph (b) of this section, you will owe late payment inter-
                                                                                             est . . . from the date your payment was due under this
                                                                                             section until the date ONRR receives it . . .
                                                                                          (d) If you take relief you are not qualified for, you may be
                                                                                             liable for civil penalties.
                                                                                          Also you must: (1) Pay ONRR late payment interest deter-
                                                                                             mined under 30 CFR 1218.54 . . . (2) Amend your Form
                                                                                             ONRR–2014 . . .
                                                                                          (e) If you dispose of your ownership interest in a marginal
                                                                                             property for which you have taken relief . . . you must:
                                                                                          (1) Report and pay royalties for the portion of the calendar
                                                                                             year for which you had an ownership interest; and.
                                                                                          (2) Make the report and payment by the end of the month
                                                                                             after you dispose of the ownership interest in the mar-
                                                                                             ginal property. If you do not report and pay timely, you
                                                                                             will owe interest . . . from the date the payment was
                                                                                             . . .

                                                1204.203(b), 1204.205(a) and              What is the other relief option?                                                   200                 1            200
                                                  (b), and 1204.206(a)(3)(i)              (b) You must request approval from ONRR . . . before tak-
                                                  and (b)(1).                               ing relief under this option.

                                                1204.208(c)(1), (d)(1), and (e)           May a State decide that it will or will not allow one or both                       40                 7            280
                                                                                             of the relief options under this subpart?
                                                                                          (c) If a State decides . . . that it will or will not allow one or
                                                                                             both of the relief options . . . within 30 days . . . the
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                                                                                             State must: (1) Notify the Director for Office of Natural
                                                                                             Resources Revenue, in writing, of its intent to allow or not
                                                                                             allow one or both of the relief options . . .
                                                                                          (d) If a State decides in advance . . . that it will not allow
                                                                                             one or both of the relief options . . . the State must: (1)
                                                                                             Notify the Director for Office of Natural Resources Rev-
                                                                                             enue, in writing, of its intent to allow one or both of the
                                                                                             relief options . . .



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                                                36328                                 Federal Register / Vol. 81, No. 108 / Monday, June 6, 2016 / Notices

                                                                                            RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
                                                                                                                                                                                                                            Average
                                                  30 CFR 1202, 1204, 1206,                                                                                                                                                 number of       Annual burden
                                                                                                          Reporting and recordkeeping requirement                                                Hour burden
                                                         and 1210                                                                                                                                                            annual           hours
                                                                                                                                                                                                                           responses

                                                                                            (e) If a State does not notify ONRR . . . the State will be
                                                                                              deemed to have decided not to allow either of the relief
                                                                                              options . . .

                                                1204.209(b) .............................   What if a property ceases to qualify for relief obtained under                                                           6                 1               6
                                                                                              this subpart?
                                                                                            (b) If a property is no longer eligible for relief . . . the relief
                                                                                              for the property terminates as of December 31 of that cal-
                                                                                              endar year. You must notify ONRR in writing by Decem-
                                                                                              ber 31 that the relief for the property has terminated . . .

                                                1204.210(c) and (d) ................        What if a property is approved as part of anonqualifying                                               Burden covered under OMB Control Number
                                                                                               agreement?                                                                                                         1012–0004.
                                                                                            (c) . . . the volumes on which you report and pay royalty
                                                                                               . . . must be amended to reflect all volumes produced on
                                                                                               or allocated to your lease under the nonqualifying agree-
                                                                                               ment as modified by BLM. . . . Report and pay royalties
                                                                                               for your production using the procedures in § 1204.202(b).
                                                                                            (d) If you owe additional royalties based on the retroactive
                                                                                               agreement approval and do not pay your royalty by the
                                                                                               date due in § 1204.202(b), you will owe late payment in-
                                                                                               terest determined under § 1218.54 from the date your
                                                                                               payment was due under § 1204.202(b)(2) until the date
                                                                                               ONRR receives it.

                                                1204.214(b)(1) and (b)(2) .......           Is minimum royalty due on a property for which I took relief?                                          Burden covered under OMB Control Number
                                                                                            (b) If you pay minimum royalty on production from a mar-                                                              1012–0004.
                                                                                               ginal property during a calendar year for which you are
                                                                                               taking cumulative royalty reports and payment relief, and:
                                                                                            (1) The annual payment you owe under this subpart is
                                                                                               greater than the minimum royalty you paid, you must pay
                                                                                               the difference between the minimum royalty you paid and
                                                                                               your annual payment due under this subpart; or
                                                                                            (2) The annual payment you owe under this subpart is less
                                                                                               than the minimum royalty you paid, you are not entitled to
                                                                                               a credit because you must pay at least the minimum roy-
                                                                                               alty amount on your lease each year.

                                                     Accounting and Auditing                .................................................................................................   ........................           10               526
                                                       Relief Subtotal.

                                                                                                                                  Part 1206—Product Valuation

                                                                                                                                       Subpart C—Federal Oil

                                                1206.102(e)(1) ........................     How do I calculate royalty value for oil that I or my affiliate                                                     AUDIT PROCESS. See note.
                                                                                              sell(s) under an arm’s-length contract?
                                                                                            (e) If you value oil under paragraph (a) of this section: (1)
                                                                                              ONRR may require you to certify that your or your affili-
                                                                                              ate’s arm’s-length contract provisions include all of the
                                                                                              consideration the buyer must pay, either directly or indi-
                                                                                              rectly, for the oil.

                                                1206.103(a)(1), (a)(2), and                 How do I value oil that is not sold under an arm’s-length                                                               45                 5            225
                                                  (a)(3).                                     contract?
                                                                                            This section explains how to value oil that you may not
                                                                                              value under § 1206.102 or that you elect under
                                                                                              § 1206.102(d) to value under this section. First determine
                                                                                              whether paragraph (a), (b), or (c) of this section applies to
                                                                                              production from your lease, or whether you may apply
                                                                                              paragraph (d) or (e) with ONRR approval.
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                                                                                            (a) Production from leases in California or Alaska. Value is
                                                                                              the average of the daily mean ANS spot prices published
                                                                                              in any ONRR-approved publication during the trading
                                                                                              month most concurrent with the production month . . .
                                                                                            (1) To calculate the daily mean spot price . . .
                                                                                            (2) Use only the days . . .
                                                                                            (3) You must adjust the value . . .




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                                                                                       Federal Register / Vol. 81, No. 108 / Monday, June 6, 2016 / Notices                                                  36329

                                                                                             RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
                                                                                                                                                                                         Average
                                                  30 CFR 1202, 1204, 1206,                                                                                                              number of       Annual burden
                                                                                                          Reporting and recordkeeping requirement                    Hour burden
                                                         and 1210                                                                                                                         annual           hours
                                                                                                                                                                                        responses

                                                1206.103(a)(4) ........................      (a)(4) After you select an ONRR-approved publication, you                             8                2             16
                                                                                               may not select a different publication more often than
                                                                                               once every 2 years, . . .

                                                1206.103(b)(1) ........................      (b) Production from leases in the Rocky Mountain Region                            400                 2            800
                                                                                               . . .
                                                                                             (1) If you have an ONRR-approved tendering program, you
                                                                                               must value oil . . .

                                                1206.103(b)(1)(ii) ....................      (b)(1)(ii) If you do not have an ONRR-approved tendering                           400                 2            800
                                                                                               program, you may elect to value your oil under either
                                                                                               paragraph (b)(2) or (b)(3) of this section . . .

                                                1206.103(b)(4) ........................      (4) If you demonstrate to ONRR’s satisfaction that para-                           400                 2            800
                                                                                               graphs (b)(1) through (b)(3) of this section result in an un-
                                                                                               reasonable value for your production as a result of cir-
                                                                                               cumstances regarding that production, the ONRR Director
                                                                                               may establish an alternative valuation method.

                                                1206.103(c)(1) ........................      (c) Production from leases not located in California, Alaska                        50             10               500
                                                                                                or the Rocky Mountain Region. (1) Value is the NYMEX
                                                                                                price, plus the roll, adjusted for applicable location and
                                                                                                quality differentials and transportation costs under
                                                                                                § 1206.112.

                                                1206.103(e)(1) and (e)(2) .......            (e) Production delivered to your refinery and the NYMEX                            330                 2            660
                                                                                               price or ANS spot price is an unreasonable value. (1)
                                                                                               . . . you may apply to the ONRR Director to establish a
                                                                                               value (2) You must provide adequate documentation and
                                                                                               evidence demonstrating the market value at the refinery.
                                                                                               . . . representing the market at the refinery if: . . .

                                                1206.105 .................................   What records must I keep to support my calculations of                   Burden covered under OMB Control Number
                                                                                                value under this subpart?                                                            1012–0004.
                                                                                             If you determine the value of your oil under this subpart,
                                                                                                you must retain all data relevant to the determination of
                                                                                                royalty value . . .

                                                1206.107(a) .............................    How do I request a value determination?                                             40             10               400
                                                                                             (a) You may request a value determination from ONRR
                                                                                               . . .

                                                1206.109(c)(2) ........................      When may I take a transportation allowance in determining                             8                2             16
                                                                                                value?
                                                                                             (c) Limits on transportation allowances. (2) You may ask
                                                                                                ONRR to approve a transportation allowance in excess of
                                                                                                the limitation in paragraph (c)(1) of this section . . . Your
                                                                                                application for exception (using Form ONRR–4393, Re-
                                                                                                quest to Exceed Regulatory Allowance Limitation) must
                                                                                                contain all relevant and supporting documentation nec-
                                                                                                essary for ONRR to make a determination . . .

                                                1206.110(a) .............................    How do I determine a transportation allowance under an                            AUDIT PROCESS. See note.
                                                                                               arm’s-length transportation contract?
                                                                                             (a) . . . You must be able to demonstrate that your or your
                                                                                               affiliate’s contract is at arm’s length. . . .

                                                1206.110(d)(3) ........................      (d) If your arm’s-length transportation contract includes                           20                 2             40
                                                                                               more than one liquid product, and the transportation costs
                                                                                               attributable to each product cannot be determined . . .
                                                                                             (3) You may propose to ONRR a cost allocation method
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                                                                                               . . .

                                                1206.110(e) .............................    (e) If your arm’s-length transportation contract includes both                      20                 1             20
                                                                                               gaseous and liquid products, and the transportation costs
                                                                                               attributable to each product cannot be determined from
                                                                                               the contract, then you must propose an allocation proce-
                                                                                               dure to ONRR.




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                                                36330                                 Federal Register / Vol. 81, No. 108 / Monday, June 6, 2016 / Notices

                                                                                            RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
                                                                                                                                                                                        Average
                                                  30 CFR 1202, 1204, 1206,                                                                                                             number of       Annual burden
                                                                                                         Reporting and recordkeeping requirement                    Hour burden
                                                         and 1210                                                                                                                        annual           hours
                                                                                                                                                                                       responses

                                                1206.110(e)(1) and (e)(2) .......           (e)(1) . . . If ONRR rejects your cost allocation, you must              Burden covered under OMB Control Number
                                                                                              amend your Form ONRR–2014 . . .                                                       1012–0004.
                                                                                            (2) You must submit your initial proposal, including all avail-
                                                                                              able data, within 3 months after first claiming the allo-
                                                                                              cated deductions on Form ONRR–2014.

                                                1206.110(g)(2) ........................     (g) If your arm’s-length sales contract includes a provision                          5                1               5
                                                                                              reducing the contract price by a transportation factor, . . .
                                                                                            (2) You must obtain ONRR approval before claiming a
                                                                                              transportation factor in excess of 50 percent of the base
                                                                                              price of the product.

                                                1206.111(g) .............................   How do I determine a transportation allowance if I do not                           30                 1             30
                                                                                              have an arm’s-length transportation contract or arm’s-
                                                                                              length tariff?
                                                                                            (g) To compute depreciation, you may elect to use either
                                                                                              . . . After you make an election, you may not change
                                                                                              methods without ONRR approval . . .

                                                1206.111(k)(2) ........................     (k)(2) You may propose to ONRR a cost allocation method                             30                 1             30
                                                                                               on the basis of the values . . .

                                                1206.111(l)(1) and (l)(3) .........         (l)(1) Where you transport both gaseous and liquid products                         20                 1             20
                                                                                               through the same transportation system, you must pro-
                                                                                               pose a cost allocation procedure to ONRR . . .
                                                                                            (3) You must submit your initial proposal, including all avail-
                                                                                               able data, within 3 months after first claiming the allo-
                                                                                               cated deductions on Form ONRR–2014.

                                                1206.111(l)(2) .........................    (l)(2) . . . If ONRR rejects your cost allocation, you must              Burden covered under OMB Control Number
                                                                                               amend your Form ONRR–2104 for the months that you                                    1012–0004.
                                                                                               used the rejected method and pay any additional royalty
                                                                                               and interest due.

                                                1206.112(a)(1)(ii) ....................     What adjustments and transportation allowances apply                                80                 1             80
                                                                                              when I value oil production from my lease using NYMEX
                                                                                              prices or ANS spot prices?
                                                                                            (a)(1)(ii) . . . under an exchange agreement that is not at
                                                                                              arm’s length, you must obtain approval from ONRR for a
                                                                                              location and quality differential . . .

                                                1206.112(a)(1)(ii) ....................     (a)(1)(ii) . . . If ONRR prescribes a different differential, you                   20                 2             40
                                                                                              must apply . . . You must pay any additional royalties
                                                                                              owed . . . plus the late payment interest from the original
                                                                                              royalty due date, or you may report a credit . . .

                                                1206.112(a)(3) and (a)(4) .......           (a)(3) If you transport or exchange at arm’s length (or both                        80                 4            320
                                                                                              transport and exchange) at least 20 percent, but not all,
                                                                                              of your oil produced from the lease to a market center,
                                                                                              determine the adjustment between the lease and the mar-
                                                                                              ket center for the oil that is not transported or exchanged
                                                                                              (or both transported and exchanged) to or through a mar-
                                                                                              ket center as follows: . . .
                                                                                            (4) If you transport or exchange (or both transport and ex-
                                                                                              change) less than 20 percent of your crude oil produced
                                                                                              from the lease between the lease and a market center,
                                                                                              you must propose to ONRR an adjustment between the
                                                                                              lease and the market center for the portion of the oil that
                                                                                              you do not transport or exchange (or both transport and
                                                                                              exchange) to a market center. . . . If ONRR prescribes a
sradovich on DSK3TPTVN1PROD with NOTICES




                                                                                              different adjustment. . . . You must pay any additional
                                                                                              royalties owed . . . plus the late payment interest from
                                                                                              the original royalty due date, or you may report a credit
                                                                                              . . .




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                                                                                       Federal Register / Vol. 81, No. 108 / Monday, June 6, 2016 / Notices                                                  36331

                                                                                             RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
                                                                                                                                                                                         Average
                                                  30 CFR 1202, 1204, 1206,                                                                                                              number of       Annual burden
                                                                                                          Reporting and recordkeeping requirement                    Hour burden
                                                         and 1210                                                                                                                         annual           hours
                                                                                                                                                                                        responses

                                                1206.112(b)(3) ........................      (b)(3) . . . you may propose an alternative differential to                         80                 4            320
                                                                                               ONRR. . . . If ONRR prescribes a different differential.
                                                                                               . . . You must pay any additional royalties owed . . .
                                                                                               plus the late payment interest from the original royalty
                                                                                               due date, or you may report a credit . . .

                                                1206.112(c)(2) ........................      (c)(2) . . . If quality bank adjustments do not incorporate or                      80                 2            160
                                                                                                provide for adjustments for sulfur content, you may make
                                                                                                sulfur adjustments, based on the quality of the represent-
                                                                                                ative crude oil at the market center, of 5.0 cents per one-
                                                                                                tenth percent difference in sulfur content, unless ONRR
                                                                                                approves a higher adjustment.

                                                1206.114 .................................   What are my reporting requirements under an arm’s-length
                                                                                               transportation contract?
                                                                                             You or your affiliate must use a separate entry on Form                  Burden covered under OMB Control Number
                                                                                               ONRR–2014 to notify ONRR of an allowance based on                                     1012–0004.
                                                                                               transportation costs you or your affiliate incur.

                                                                                             ONRR may require you or your affiliate to submit arm’s-                           AUDIT PROCESS. See note.
                                                                                              length transportation contracts, production agreements,
                                                                                              operating agreements, and related documents . . .

                                                1206.115(a) .............................    What are my reporting requirements under a non-arm’s-                    Burden covered under OMB Control Number
                                                                                               length transportation arrangement?                                                    1012–0004.
                                                                                             (a) You or your affiliate must use a separate entry on Form
                                                                                               ONRR–2014 to notify ONRR of an allowance based on
                                                                                               transportation costs you or your affiliate incur.

                                                1206.115(c) .............................    (c) ONRR may require you or your affiliate to submit all                          AUDIT PROCESS. See note.
                                                                                                data used to calculate the allowance deduction . . .

                                                                                                                            Subpart D—Federal Gas

                                                1206.152(b)(1)(i) and (b)(1)(iii)            Valuation standards—unprocessed gas ................................              AUDIT PROCESS. See note.
                                                                                             (b)(1)(i) . . . The lessee shall have the burden of dem-
                                                                                               onstrating that its contract is arm’s-length. . . . (iii) . . .
                                                                                               When ONRR determines that the value may be unrea-
                                                                                               sonable, ONRR will notify the lessee and give the lessee
                                                                                               an opportunity to provide written information justifying the
                                                                                               lessee’s value.

                                                1206.152(b)(2) ........................      (b)(2) . . . The lessee must request a value determination                          80                 1             80
                                                                                               in accordance with paragraph (g) of this section for gas
                                                                                               sold pursuant to a warranty contract; . . .

                                                1206.152(b)(3) ........................      (b)(3) ONRR may require a lessee to certify that its arm’s-                       AUDIT PROCESS. See note.
                                                                                               length contract provisions include all of the consideration
                                                                                               to be paid by the buyer, either directly or indirectly, for the
                                                                                               gas.

                                                1206.152(e)(1) ........................      (e)(1) Where the value is determined pursuant to paragraph               Burden covered under OMB Control Number
                                                                                               (c) of this section, the lessee shall retain all data relevant                        1012–0004.
                                                                                               to the determination of royalty value . . .

                                                1206.152(e)(2) ........................      206.152(e)(2) Any Federal lessee will make available upon                         AUDIT PROCESS. See note.
                                                                                               request to the authorized ONRR or State representatives,
                                                                                               to the Office of the Inspector General of the department
                                                                                               of the Interior, or other person authorized to receive such
                                                                                               information, arm’s-length sales and volume data for like-
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                                                                                               quality production sold, purchased or otherwise obtained
                                                                                               by the lessee from the field or area or from nearby fields
                                                                                               or areas.

                                                1206.152(e)(3) ........................      (e)(3) A lessee shall notify ONRR if it has determined value                        10             10               100
                                                                                               pursuant to paragraph (c)(2) or (c)(3) of this section . . .




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                                                36332                                 Federal Register / Vol. 81, No. 108 / Monday, June 6, 2016 / Notices

                                                                                            RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
                                                                                                                                                                                         Average
                                                  30 CFR 1202, 1204, 1206,                                                                                                              number of       Annual burden
                                                                                                         Reporting and recordkeeping requirement                       Hour burden
                                                         and 1210                                                                                                                         annual           hours
                                                                                                                                                                                        responses

                                                1206.152(g) .............................   (g) The lessee may request a value determination from                                40                 5            200
                                                                                              ONRR . . . The lessee shall submit all available data rel-
                                                                                              evant to its proposal . . .

                                                1206.153(b)(1)(i) and (b)(1)(iii)           Valuation standards—processed gas ....................................             AUDIT PROCESS. See note.
                                                                                            (b)(1)(i) . . . The lessee shall have the burden of dem-
                                                                                                onstrating that its contract is arm’s-length . . .
                                                                                            (iii) . . . When ONRR determines that the value may be un-
                                                                                                reasonable, ONRR will notify the lessee and give the les-
                                                                                                see an opportunity to provide written information justifying
                                                                                                the lessee’s value.

                                                1206.153(b)(2) ........................     (b)(2) . . . The lessee must request a value determination                           80                 1             80
                                                                                              in accordance with paragraph (g) of this section for gas
                                                                                              sold pursuant to a warranty contract; . . .

                                                1206.153(b)(3) ........................     (b)(3) ONRR may require a lessee to certify that its arm’s-                        AUDIT PROCESS. See note.
                                                                                              length contract provisions include all of the consideration
                                                                                              to be paid by the buyer, either directly or indirectly, for the
                                                                                              residue gas or gas plant product.

                                                1206.153(e)(1) ........................     (e)(1) Where the value is determined pursuant to paragraph                  Burden covered under OMB Control Number
                                                                                              (c) of this section, the lessee shall retain all data relevant                           1012–0004.
                                                                                              to the determination of royalty value . . .

                                                1206.153(e)(2) ........................     (e)(2) Any Federal lessee will make available upon request                         AUDIT PROCESS. See note.
                                                                                              to the authorized ONRR or State representatives, to the
                                                                                              Office of the Inspector General of the Department of the
                                                                                              Interior, or other persons authorized to receive such infor-
                                                                                              mation, arm’s-length sales and volume data for like-qual-
                                                                                              ity residue gas and gas plant products sold, purchased or
                                                                                              otherwise obtained by the lessee from the same proc-
                                                                                              essing plant or from nearby processing plants.

                                                1206.153(e)(3) ........................     (e)(2) A lessee shall notify ONRR if it has determined any                           10                 2             20
                                                                                              value pursuant to paragraph (c)(2) or (c)(3) of this section
                                                                                              . . .

                                                1206.153(g) .............................   206.153(g) The lessee may request a value determination                              80             15              1,200
                                                                                              from ONRR . . . The lessee shall submit all available
                                                                                              data relevant to its proposal . . .

                                                1206.154(c)(4) ........................     Determination of quantities and qualities for computing roy-                         40                 1             40
                                                                                               alties.
                                                                                            (c)(4) . . . A lessee may request ONRR approval of other
                                                                                               methods for determining the quantity of residue gas and
                                                                                               gas plant products allocable to each lease . . .

                                                1206.156(c)(3) ........................     Transportation allowances—general ......................................             40                 7            280
                                                                                            (c)(3) Upon request of a lessee, ONRR may approve a
                                                                                               transportation allowance deduction in excess of the limita-
                                                                                               tion prescribed by paragraphs (c)(1) and (c)(2) of this
                                                                                               section . . . An application for exception (using Form
                                                                                               ONRR–4393, Request to Exceed Regulatory Allowance
                                                                                               Limitation) must contain all relevant and supporting docu-
                                                                                               mentation necessary for ONRR to make a determination.
                                                                                               . . .

                                                1206.157(a)(1)(i) .....................     Determination of transportation allowances ...........................
                                                                                            (a) Arm’s-length transportation contracts. (1)(i) . . . The les-                   AUDIT PROCESS. See note.
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                                                                                              see shall have the burden of demonstrating that its con-
                                                                                              tract is arm’s-length . . .

                                                                                            The lessee must claim a transportation allowance by report-                 Burden covered under OMB Control Number
                                                                                              ing it on a separate line entry on the Form ONRR–2014.                                   1012–0004.




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                                                                                     Federal Register / Vol. 81, No. 108 / Monday, June 6, 2016 / Notices                                                  36333

                                                                                           RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
                                                                                                                                                                                       Average
                                                  30 CFR 1202, 1204, 1206,                                                                                                            number of       Annual burden
                                                                                                        Reporting and recordkeeping requirement                    Hour burden
                                                         and 1210                                                                                                                       annual           hours
                                                                                                                                                                                      responses

                                                1206.157(a)(1)(iii) ...................    (a)(1)(iii) . . . When ONRR determines that the value of the                      AUDIT PROCESS. See note.
                                                                                             transportation may be unreasonable, ONRR will notify the
                                                                                             lessee and give the lessee an opportunity to provide writ-
                                                                                             ten information justifying the lessee’s transportation costs.

                                                1206.157(a)(2)(ii) ....................    (a)(2)(ii) . . . the lessee may propose to ONRR a cost allo-                        40                 1             40
                                                                                             cation method on the basis of the values of the products
                                                                                             transported . . .

                                                1206.157(a)(3) ........................    (a)(3) If an arm’s-length transportation contract includes                          40                 1             40
                                                                                             both gaseous and liquid products and the transportation
                                                                                             costs attributable to each cannot be determined from the
                                                                                             contract, the lessee shall propose an allocation procedure
                                                                                             to ONRR . . . The lessee shall submit all relevant data to
                                                                                             support its proposal . . .

                                                1206.157(a)(5) ........................    (a)(5) . . . The transportation factor may not exceed 50                            10                 3             30
                                                                                             percent of the base price of the product without ONRR
                                                                                             approval.

                                                1206.157(b)(1) ........................    (b) Non-arm’s-length or no contract. (1) The lessee must                 Burden covered under OMB Control Number
                                                                                             claim a transportation allowance by reporting it on a sep-                            1012–0004.
                                                                                             arate line entry on the Form ONRR–2014 . . .

                                                1206.157(b)(2)(iv) and                     (b)(2)(iv) . . . After a lessee has elected to use either meth-                    100                 1            100
                                                  (b)(2)(iv)(A).                             od for a transportation system, the lessee may not later
                                                                                             elect to change to the other alternative without approval
                                                                                             of the ONRR.
                                                                                           (A) . . . After an election is made, the lessee may not
                                                                                             change methods without ONRR approval . . .

                                                1206.157(b)(3)(i) .....................    (b)(3)(i) . . . Except as provided in this paragraph, the les-                     100                 1            100
                                                                                             see may not take an allowance for transporting a product
                                                                                             which is not royalty bearing without ONRR approval.

                                                1206.157(b)(3)(ii) ....................    (b)(3)(ii) . . . the lessee may propose to the ONRR a cost                         100                 1            100
                                                                                             allocation method on the basis of the values of the prod-
                                                                                             ucts transported . . .

                                                1206.157(b)(4) ........................    (b)(4) Where both gaseous and liquid products are trans-                           100                 1            100
                                                                                             ported through the same transportation system, the les-
                                                                                             see shall propose a cost allocation procedure to ONRR
                                                                                             . . . The lessee shall submit all relevant data to support
                                                                                             its proposal . . .

                                                1206.157(b)(5) ........................    (b)(5) You may apply for an exception from the requirement                         100                 1            100
                                                                                             to compute actual costs under paragraphs (b)(1) through
                                                                                             (b)(4) of this section.

                                                1206.157(c)(1)(i) .....................    (c) Reporting Requirements. (1) Arm’s-length contracts. (i)              Burden covered under OMB Control Number
                                                                                             You must use a separate entry on Form ONRR–2014 to                                    1012–0004.
                                                                                             notify ONRR of a transportation allowance.

                                                1206.157(c)(1)(ii) ....................    (c)(1)(ii) ONRR may require you to submit arm’s-length                            AUDIT PROCESS. See note.
                                                                                              transportation contracts, production agreements, oper-
                                                                                              ating agreements, and related documents . . .

                                                1206.157(c)(2)(i) .....................    (c)(2) Non-arm’s-length or no contract. (i) You must use a               Burden covered under OMB Control Number
                                                                                              separate entry on Form ONRR–2014 to notify ONRR of a                                 1012–0004.
                                                                                              transportation allowance.
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                                                1206.157(c)(2)(iii) ....................   (c)(2)(iii) ONRR may require you to submit all data used to                       AUDIT PROCESS. See note.
                                                                                              calculate the allowance deduction . . .




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                                                36334                               Federal Register / Vol. 81, No. 108 / Monday, June 6, 2016 / Notices

                                                                                          RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
                                                                                                                                                                                       Average
                                                  30 CFR 1202, 1204, 1206,                                                                                                            number of       Annual burden
                                                                                                       Reporting and recordkeeping requirement                        Hour burden
                                                         and 1210                                                                                                                       annual           hours
                                                                                                                                                                                      responses

                                                1206.157(e)(2), (e)(3), and               (e) Adjustments. (2) For lessees transporting production                     Burden covered under OMB Control Number
                                                  (f)(1).                                    from onshore Federal leases, the lessee must submit a                                    1012–0004.
                                                                                             corrected Form ONRR–2014 to reflect actual costs, to-
                                                                                             gether with any payment, in accordance with instructions
                                                                                             provided by ONRR. (3) For lessees transporting gas pro-
                                                                                             duction from leases on the OCS, if the lessee’s estimated
                                                                                             transportation allowance exceeds the allowance based on
                                                                                             actual costs, the lessee must submit a corrected Form
                                                                                             ONRR–2014 to reflect actual costs, together with its pay-
                                                                                             ments, in accordance with instructions provided by ONRR
                                                                                             . . .
                                                                                          (f) Allowable costs in determining transportation allowances
                                                                                             . . . (1) Firm demand charges paid to pipelines . . . if
                                                                                             you receive a payment or credit from the pipeline for pen-
                                                                                             alty refunds, rate case refunds, or other reasons, you
                                                                                             must reduce the firm demand charge claimed on the
                                                                                             Form ONRR–2014 by the amount of that payment. You
                                                                                             must modify Form ONRR–2014 by the amount received
                                                                                             or credited for the affected reporting period and pay any
                                                                                             resulting royalty and late payment interest due;

                                                1206.158(c)(3) ........................   Processing allowances—general ...........................................            80             10               800
                                                                                          (c)(3) Upon request of a lessee, ONRR may approve a
                                                                                             processing allowance in excess of the limitation pre-
                                                                                             scribed by paragraph (c)(2) of this section . . . An appli-
                                                                                             cation for exception (using Form ONRR–4393, Request to
                                                                                             Exceed Regulatory Allowance Limitation) shall contain all
                                                                                             relevant and supporting documentation for ONRR to
                                                                                             make a determination . . .

                                                1206.158(d)(2)(i) .....................   (d)(2)(i) If the lessee incurs extraordinary costs for proc-                         80                 1             80
                                                                                            essing gas production from a gas production operation, it
                                                                                            may apply to ONRR for an allowance for those costs . . .

                                                1206.158(d)(2)(ii) ....................   (d)(2)(ii) . . . to retain the authority to deduct the allowance             Burden covered under OMB Control Number
                                                                                            the lessee must report the deduction to ONRR in a form                                    1012–0004.
                                                                                            and manner prescribed by ONRR.

                                                1206.159(a)(1)(i) .....................   Determination of processing allowances.

                                                                                          (a) Arm’s-length processing contracts ...................................          AUDIT PROCESS. See note.
                                                                                          (1)(i) . . . The lessee shall have the burden of dem-
                                                                                            onstrating that its contract is arm’s-length . . .

                                                                                          The lessee must claim a processing allowance by reporting                    Burden covered under OMB Control Number
                                                                                            it on a separate line entry on the Form ONRR–2014.                                        1012–0004.

                                                1206.159(a)(1)(iii) ...................   (a)(1)(iii) . . . When ONRR determines that the value of the                       AUDIT PROCESS. See note.
                                                                                            processing may be unreasonable, ONRR will notify the
                                                                                            lessee and give the lessee an opportunity to provide writ-
                                                                                            ten information justifying the lessee’s processing costs.

                                                1206.159(a)(3) ........................   (a)(3) If an arm’s-length processing contract includes more                          20                 1             20
                                                                                            than one gas plant product and the processing costs at-
                                                                                            tributable to each product cannot be determined from the
                                                                                            contract, the lessee shall propose an allocation procedure
                                                                                            to ONRR . . . The lessee shall submit all relevant data to
                                                                                            support its proposal . . .

                                                1206.159(b)(1) ........................   (b) Non-arm’s-length or no contract. (1) . . . The lessee                    Burden covered under OMB Control Number
                                                                                            must claim a processing allowance by reflecting it as a                                   1012–0004.
sradovich on DSK3TPTVN1PROD with NOTICES




                                                                                            separate line entry on the Form ONRR–2014 . . .

                                                1206.159(b)(2)(iv) and                    (b)(2)(iv) . . . When a lessee has elected to use either                            100                 1            100
                                                  (b)(2)(iv)(A).                            method for a processing plant, the lessee may not later
                                                                                            elect to change to the alternative without approval of the
                                                                                            ONRR.
                                                                                          (A) . . . After an election is made, the lessee may not
                                                                                            change methods without ONRR approval . . .



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                                                                                     Federal Register / Vol. 81, No. 108 / Monday, June 6, 2016 / Notices                                                                                      36335

                                                                                           RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
                                                                                                                                                                                                                           Average
                                                  30 CFR 1202, 1204, 1206,                                                                                                                                                number of       Annual burden
                                                                                                         Reporting and recordkeeping requirement                                                Hour burden
                                                         and 1210                                                                                                                                                           annual           hours
                                                                                                                                                                                                                          responses

                                                1206.159(b)(4) ........................    (b)(4) A lessee may apply to ONRR for an exception from                                                               100                  1            100
                                                                                             the requirements that it compute actual costs in accord-
                                                                                             ance with paragraphs (b)(1) through (b)(3) of this sec-
                                                                                             tion . . .

                                                1206.159(c)(1)(i) .....................    (c) Reporting requirements—(1) Arm’s-length contracts. (i)                                             Burden covered under OMB Control Number
                                                                                              The lessee must notify ONRR of an allowance based on                                                               1012–0004.
                                                                                              incurred costs by using a separate line entry on the Form
                                                                                              ONRR–2014.

                                                1206.159(c)(1)(ii) ....................    (c)(1)(ii) ONRR may require that a lessee submit arm’s-                                                             AUDIT PROCESS. See note.
                                                                                              length processing contracts and related documents . . .

                                                1206.159(c)(2)(i) .....................    (c)(2) Non-arm’s-length or no contract. (i) The lessee must                                            Burden covered under OMB Control Number
                                                                                              notify ONRR of an allowance based on incurred costs by                                                             1012–0004.
                                                                                              using a separate line entry on the Form ONRR–2014.

                                                1206.159(c)(2)(iii) ....................   (c)(2)(iii) Upon request by ONRR, the lessee shall submit all                                                       AUDIT PROCESS. See note.
                                                                                              data used to prepare the allowance deduction . . .

                                                1206.159(e)(2) and (e)(3) .......          (e) Adjustments . . . (2) For lessees processing production                                            Burden covered under OMB Control Number
                                                                                             from onshore Federal leases, the lessee must submit a                                                               1012–0004.
                                                                                             corrected Form ONRR–2014 to reflect actual costs, to-
                                                                                             gether with any payment, in accordance with instructions
                                                                                             provided by ONRR. (3) For lessees processing gas pro-
                                                                                             duction from leases on the OCS, if the lessee’s estimated
                                                                                             processing allowance exceeds the allowance based on
                                                                                             actual costs, the lessee must submit a corrected Form
                                                                                             ONRR–2014 to reflect actual costs, together with its pay-
                                                                                             ment, in accordance with instructions provided by
                                                                                             ONRR . . .

                                                     Oil and Gas Valuation                 .................................................................................................   ........................          123              8992
                                                       Subtotal.

                                                           TOTAL ......................    .................................................................................................   ........................          133              9518
                                                  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.


                                                   This 60-day Federal Register notice                              III. Request for Comments                                                      ‘‘non-hour cost’’ burden to respondents
                                                burden chart shows an adjustment                                                                                                                   or record-keepers resulting from the
                                                increase of +320 burden hours. This                                   Section 3506(c)(2)(A) of the PRA                                             collection of information. If you have
                                                adjustment is based on analyzed                                     requires each agency to ‘‘* * * provide                                        costs to generate, maintain, and disclose
                                                historical data since 2013 for the                                  60-day notice in the Federal Register                                          this information, you should comment
                                                transportation and processing                                       * * * and otherwise consult with                                               and provide your total capital and
                                                allowances (1206.156(c)(3) and                                      members of the public and affected                                             startup cost components or annual
                                                                                                                    agencies concerning each proposed                                              operation, maintenance, and purchase
                                                1206.158(c)(3)). The transportation
                                                                                                                    collection of information * * *.’’                                             of service components. You should
                                                processing allowance increased from
                                                                                                                    Agencies must specifically solicit                                             describe the methods that you use to
                                                120 to 280 burden hours and the
                                                                                                                    comments to (a) evaluate whether the                                           estimate (1) major cost factors, including
                                                processing allowance increased from
                                                                                                                    proposed collection of information is                                          system and technology acquisition, (2)
                                                640 to 800 burden hours for a total
                                                                                                                    necessary for the agency to perform its                                        expected useful life of capital
                                                increase of +320 annual burden hours.
                                                                                                                    duties, including whether the                                                  equipment, (3) discount rate(s), and (4)
                                                   Estimated Annual Reporting and                                   information is useful; (b) evaluate the                                        the period over which you incur costs.
                                                Recordkeeping ‘‘Non-hour’’ Cost                                     accuracy of the agency’s estimate of the                                       Capital and startup costs include,
                                                Burden: We have not identified a ‘‘non-                             burden of the proposed collection of                                           among other items, computers and
                                                hour’’ cost burden associated with the                              information; (c) enhance the quality,                                          software that you purchase to prepare
                                                collection of information.                                          usefulness, and clarity of the                                                 for collecting information and
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                                                   Public Disclosure Statement: The PRA                             information that ONRR collects; and (d)                                        monitoring, sampling, and testing
                                                (44 U.S.C. 3501 et seq.) provides that an                           minimize the burden on the                                                     equipment, and record storage facilities.
                                                agency may not conduct or sponsor, and                              respondents, including the use of                                              Generally, your estimates should not
                                                a person does not have to respond to, a                             automated collection techniques or                                             include equipment or services
                                                collection of information unless it                                 other forms of information technology.                                         purchased (i) before October 1, 1995; (ii)
                                                displays a currently valid OMB control                                The PRA also requires agencies to                                            to comply with requirements not
                                                number.                                                             estimate the total annual reporting                                            associated with the information


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                                                36336                           Federal Register / Vol. 81, No. 108 / Monday, June 6, 2016 / Notices

                                                collection; (iii) for reasons other than to             withdraw the notice and re-publish a                   comment period will be made available
                                                provide information or keep records for                 corrected version. This notice                         to the public and considered prior to
                                                the Federal Government; or (iv) as part                 withdraws the April 28, 2016, notice in                publication of the Final Sale Notice
                                                of customary and usual business, or                     question.                                              (FSN).
                                                private practices.                                      FOR FURTHER INFORMATION CONTACT: For                      All entities interested in participating
                                                  We will summarize written responses                   questions on technical issues, contact                 in the lease sale who have not
                                                to this notice and address them in our                  Mr. Luis Aguilar, Regulatory Specialist,               previously been qualified by BOEM to
                                                ICR submission for OMB approval,                        ONRR, telephone (303) 231–3418, or                     participate in this lease sale must
                                                including appropriate adjustments to                    email Luis.Aguilar@onrr.gov.                           submit the required qualification
                                                the estimated burden. We will provide                                                                          materials by the end of the 60-day
                                                                                                          Dated: May 25, 2016.
                                                a copy of the ICR to you, without                                                                              comment period for this notice. All
                                                charge, upon request. We also will post                 Gregory J. Gould,                                      qualification materials must be
                                                the ICR at http://www.onrr.gov/                         Director, Office of Natural Resources                  postmarked no later than August 5,
                                                Laws_R_D/FRNotices/ICR0136.htm.                         Revenue.                                               2016. Entities that have already been
                                                  Public Comment Policy: ONRR will                      [FR Doc. 2016–13207 Filed 6–3–16; 8:45 am]             qualified to participate in this lease sale
                                                post all comments, including names and                  BILLING CODE 4335–30–P                                 are not required to take any additional
                                                addresses of respondents at http://                                                                            action to affirm their interest.
                                                www.regulations.gov. Before including                                                                          ADDRESSES: Potential auction
                                                Personally Identifiable Information (PII),              DEPARTMENT OF THE INTERIOR
                                                                                                                                                               participants, Federal, state, and local
                                                such as your address, phone number,                                                                            government agencies, tribal
                                                email address, or other personal                        Bureau of Ocean Energy Management
                                                                                                                                                               governments, and other interested
                                                information in your comment(s), you                     [Docket No. BOEM–2016–0027;                            parties are requested to submit their
                                                should be aware that your entire                        MMAA104000]                                            written comments on the PSN in one of
                                                comment (including PII) may be made                                                                            the following ways:
                                                available to the public at any time.                    Atlantic Wind Lease Sale 6 (ATLW–6)
                                                                                                                                                                  1. Electronically: http://
                                                While you may ask us, in your                           for Commercial Leasing for Wind
                                                                                                                                                               www.regulations.gov. In the entry
                                                comment, to withhold PII from public                    Power on the Outer Continental Shelf
                                                                                                                                                               entitled, ‘‘Enter Keyword or ID’’, enter
                                                view, we cannot guarantee that we will                  Offshore New York—Proposed Sale
                                                                                                                                                               BOEM–2016–0027 then click ‘‘search.’’
                                                be able to do so.                                       Notice
                                                                                                                                                               Follow the instructions to submit public
                                                  An agency may not conduct or                          AGENCY:   Bureau of Ocean Energy                       comments.
                                                sponsor, and a person is not required to                Management (BOEM or ‘‘the Bureau’’),                      2. Written Comments: In written form,
                                                respond to, a collection of information                 Interior.                                              delivered by hand or by mail, enclosed
                                                unless it displays a currently valid                                                                           in an envelope labeled, ‘‘Comments on
                                                                                                        ACTION: Proposed Sale Notice for
                                                Office of Management and Budget                                                                                New York PSN’’ to: BOEM Office of
                                                                                                        Commercial Leasing for Wind Power on
                                                control number.                                                                                                Renewable Energy Programs, 45600
                                                                                                        the Outer Continental Shelf Offshore
                                                  Dated: May 26, 2016.                                  New York.                                              Woodland Road, VAM–OREP, Sterling,
                                                Gregory J. Gould,                                                                                              Virginia 20166, (703) 787–1320.
                                                Director, Office of Natural Resources                   SUMMARY:   This document is the                           3. Qualifications Materials: Those
                                                Revenue.                                                Proposed Sale Notice (PSN) for the sale                submitting qualifications materials
                                                [FR Doc. 2016–13206 Filed 6–3–16; 8:45 am]              of one commercial wind energy lease on                 should contact Erin C. Trager, BOEM
                                                BILLING CODE 4335–30–P
                                                                                                        the Outer Continental Shelf (OCS)                      Office of Renewable Energy Programs,
                                                                                                        offshore New York, pursuant to 30 CFR                  45600 Woodland Road, VAM–OREP,
                                                                                                        585.216. BOEM proposes to offer Lease                  Sterling, Virginia 20166, (703) 787–
                                                DEPARTMENT OF THE INTERIOR                              OCS–A 0512 for sale using an ascending                 1320, or Erin.Trager@boem.gov. If you
                                                                                                        bidding auction format. In this PSN, you               wish to protect the confidentiality of
                                                Office of Natural Resources Revenue                     will find information pertaining to the                your qualification materials, clearly
                                                [Docket No. ONRR–2011–0019; DS63642000
                                                                                                        area available for leasing, proposed                   mark the relevant sections and request
                                                DR2000000.CH7000 167D0102R2]                            lease provisions and conditions, auction               that BOEM treat them as confidential.
                                                                                                        details, the lease form, criteria for                  Please label privileged or confidential
                                                Major Portion Prices and Due Date for                   evaluating competing bids, award                       information with the caption ‘‘Contains
                                                Additional Royalty Payments on Indian                   procedures, appeal procedures, and                     Confidential Information’’ and consider
                                                Gas Production in Designated Areas                      lease execution. BOEM invites public                   submitting such information as a
                                                Not Associated With an Index Zone                       comment during a 60-day comment                        separate attachment. Treatment of
                                                                                                        period following publication of this                   confidential information is addressed in
                                                AGENCY: Office of Natural Resources                     notice. The issuance of a lease resulting              the section of this PSN entitled
                                                Revenue (ONRR).                                         from this proposed sale would not                      ‘‘Protection of Privileged or Confidential
                                                ACTION: Withdrawal.                                     constitute an approval of project-                     Information.’’ Information that is not
                                                SUMMARY:   On April 28, 2016, ONRR                      specific plans to develop offshore wind                labeled as privileged or confidential will
                                                published (at 81 FR 25419) a notice of                  energy resources. Such plans, expected                 be regarded by BOEM as suitable for
                                                the due date for industry to pay                        to be submitted by the auction winner,                 public release.
                                                additional royalties based on the major                 will be subject to subsequent                          FOR FURTHER INFORMATION CONTACT: Erin
sradovich on DSK3TPTVN1PROD with NOTICES




                                                portion prices, titled ‘‘Major Portion                  environmental and technical reviews                    C. Trager, BOEM Office of Renewable
                                                Prices and Due Date for Additional                      prior to a decision to proceed with                    Energy Programs, 45600 Woodland
                                                Royalty Payments on Indian Gas                          development.                                           Road, VAM–OREP, Sterling, Virginia
                                                Production in Designated Areas Not                      DATES: Comments should be submitted                    20166, (703) 787–1320 or Erin.Trager@
                                                Associated with an Index Zone.’’                        electronically or postmarked no later                  boem.gov.
                                                Unfortunately, due to an incorrect date                 than August 5, 2016. All comments                        Authority: This PSN is published pursuant
                                                in said notice, it is necessary to                      received or postmarked during the                      to subsection 8(p) of the OCS Lands Act (43



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Document Created: 2016-06-04 00:16:30
Document Modified: 2016-06-04 00:16:30
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
ActionNotice of an extension.
DatesSubmit written comments on or before August 5, 2016.
ContactFor 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 Citation81 FR 36325 

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