82 FR 27868 - Agency Information Collection Activities: Suspensions Pending Appeal and Bonding

DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue

Federal Register Volume 82, Issue 116 (June 19, 2017)

To comply with the Paperwork Reduction Act of 1995 (PRA), ONRR is inviting comments on the renewal of a collection of information that we will submit to the Office of Management and Budget (OMB) for review and approval. This ICR covers the paperwork requirements in the regulations under 30 CFR 1243.

[Federal Register Volume 82, Number 116 (Monday, June 19, 2017)]
[Notices]
[Pages 27868-27871]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-12596]


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DEPARTMENT OF THE INTERIOR

Office of Natural Resources Revenue

[Docket No. ONRR-2011-0008; DS63644000 DR2000000.CH7000 178D0102R2 ]


Agency Information Collection Activities: Suspensions Pending 
Appeal and Bonding

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

ACTION: Notice.

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SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), ONRR 
is inviting comments on the renewal of a collection of information that 
we will submit to the Office of Management and Budget (OMB) for review 
and approval. This ICR covers the paperwork requirements in the 
regulations under 30 CFR 1243.

DATES: Submit written comments on or before August 18, 2017.

ADDRESSES: You may submit comments on this ICR to ONRR by using one of 
the following three methods: (Please use ``ICR 1012-0006'' as an 
identifier in your comment).
    1. Electronically go to http://www.regulations.gov. In the entry 
titled ``Enter Keyword or ID,'' enter ``ONRR-2012-0006'' 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 53, Entrance E-20, Denver 
Federal Center, West 6th Ave. and Kipling St., Denver, Colorado 80225. 
Visitor parking is available near entrance E-20, with a phone to 
request entry. Call Mr. Armando Salazar at (303) 231-3585 or Ms. Janet 
Giron at (303) 231-3088 to gain entrance.

FOR FURTHER INFORMATION CONTACT: For questions on technical issues, 
contact Ms. Kimberly Werner, Office of Enforcement (OE), ONRR, at (303) 
231-3801 or email to [email protected]. For other questions, 
contact Mr. Luis Aguilar, at (303) 231-3418, or email to 
[email protected]. You may also contact Mr. Aguilar to obtain 
copies (free of charge) of (1) the ICR and (2) the regulations that 
require the subject collection of information. You may also review the 
information collection request online at http://www.reginfo.gov/public/do/PRAMain.

SUPPLEMENTARY INFORMATION:
    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). Under various laws, 
the Secretary's responsibility is to manage mineral resources 
production on Federal and Indian lands and the OCS, collect the 
royalties and other mineral revenues due, and distribute the funds 
collected. The Secretary also has a trust responsibility to manage 
Indian lands and seek advice and information from Indian beneficiaries. 
ONRR performs the

[[Page 27869]]

minerals revenue management functions for the Secretary and assists the 
Secretary in carrying out the Department's trust responsibility for 
Indian lands. We have posted those laws pertaining to mineral leases on 
Federal and Indian lands and the OSC at http://www.onrr.gov/Laws_R_D/PubLaws/default.htm.

I. 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 lessee is 
required to report various kinds of information to the lessor relative 
to the disposition of the minerals, such as developing, transporting, 
processing, purchasing, or selling such minerals. The information 
collected includes data necessary to ensure that production is 
accurately valued and that royalties are appropriately paid.
    If ONRR determines that a lessee has not properly reported or paid, 
we may issue an order to pay, a Notice of Noncompliance, or a Civil 
Penalty Notice requiring correct reporting or payment. Lessees then 
have a right to appeal ONRR's determination(s).

II. Information Collection

    Regulations at 30 CFR part 1243 govern the submission of 
appropriate surety instruments to suspend compliance with orders or 
decisions and to stay the accrual of civil penalties (if the Office of 
Hearings and Appeals grants a lessee's petition to stay accrual of 
civil penalties), pending administrative appeal for Federal and Indian 
leases. For Federal oil and gas leases, under 30 U.S.C. 1724(l) and its 
implementing regulations in 30 CFR part 1243, appellants who are 
requesting a suspension without providing a surety must submit 
information to demonstrate financial solvency. This ICR covers the 
burden hours associated with submitting financial statements or surety 
instruments required to stay an ONRR order, decision, or accrual of 
civil penalties.

Stay of Payment Pending Appeal

    Title 30 CFR 1243.1 states that lessees or recipients of ONRR 
orders may suspend compliance with an order if they appeal under 30 CFR 
part 1290. Pending appeal, ONRR may suspend the payment requirement if 
the appellant submits a formal agreement of payment in case of default 
such as a bond or other surety; for Federal oil and gas leases, the 
appellant may demonstrate financial solvency. If the Office of Hearings 
and Appeals grants a lessee's, or other recipient of a Notice of 
Noncompliance or Civil Penalty Notice, request to stay the accrual of 
civil penalties under 30 CFR 1241.55(b)(2) and 1241.63(b)(2), the 
lessee or other recipient must post a bond or other surety; for Federal 
oil and gas leases, the appellant may demonstrate financial solvency.
    ONRR accepts the following surety types: Form ONRR-4435, 
Administrative Appeal Bond; form ONRR-4436, Letter of Credit; form 
ONRR-4437, Assignment of Certificate of Deposit; Self-bonding; and U.S. 
Treasury Securities.
    When one of the surety types is selected and put in place, 
appellants must maintain the surety until completion of the appeal. If 
the appeal is decided in favor of the appellant, ONRR returns the 
surety to the appellant. If the appeal is decided in favor of ONRR, 
then we will take action to collect the total amount due or draw down 
on the surety. We draw down on a surety if the appellant fails to 
comply with requirements relating to amount due, timeframe, or surety 
submission or resubmission. Whenever ONRR must draw down on a surety, 
we must draw down the total amount due, which is defined as unpaid 
principal plus the interest accrued to the projected receipt date of 
the surety payment. Appellants may refer to the Surety Instrument 
Posting Instructions, which are on our Web site at http://www.onrr.gov/compliance/appeals.htm.

Forms and Other Surety Types

Form ONRR-4435, Administrative Appeal Bond
    Appellants may file Form ONRR-4435, Administrative Appeal Bond, 
which ONRR uses to secure the financial interests of the public and 
Indian lessors during the entire administrative and judicial appeal 
process. Under 30 CFR 1243.4, appellants are required to submit their 
contact and surety amount information on the bond to obtain the benefit 
of suspension of an obligation to comply with an order. The bond must 
be issued by a qualified surety company that the U.S. Department of the 
Treasury approves (see Department of the Treasury Circular No. 570, 
revised periodically in the Federal Register). The Director for ONRR or 
the delegated bond-approving officer maintains these bonds in a secure 
facility. After the appeal has concluded, ONRR may release and return 
the bond to the appellant or collect payment on the bond. If collection 
is necessary for a remaining balance, ONRR will issue a demand for 
payment to the surety company with a notice to the appellant. We will 
also include all interest accrued on the affected receivable.
Form ONRR-4436, Letter of Credit
    Appellants may choose to file form ONRR-4436, Letter of Credit, 
with no modifications. Requirements at 30 CFR 1243.4 continues to 
apply. The Director or the delegated bond-approving officer maintains 
the Letter of Credit (LOC) in a secure facility. The appellant is 
responsible for verifying that the bank provides a current Fitch rating 
to ONRR. After the appeal has been concluded, we may release and return 
the LOC to the appellant or collect payment on the LOC. If collection 
is necessary for a remaining balance, we will issue a demand for 
payment, which includes all interest assessed on the affected 
receivable, to the bank with a notice to the appellant.
Form ONRR-4437, Assignment of Certificate of Deposit
    Appellants may choose to secure a debt by requesting to use a 
Certificate of Deposit (CD) from a bank with the required minimum 
rating and submitting form ONRR-4437, Assignment of Certificate of 
Deposit. Requirements at 30 CFR 1243.4 continues to apply. Appellants 
must file the request with ONRR prior to the invoice due date. We will 
accept a book-entry CD that explicitly assigns the CD to the Director. 
If collection of the CD is necessary for an unpaid balance, we will 
return unused CD funds to the appellant after total settlement of the 
appealed issues, including applicable interest charges.
Self-Bonding
    For Federal oil and gas leases, regulations at 30 CFR 1243.201, 
provide that no surety instrument is required when a person 
representing the appellant periodically demonstrates, to the 
satisfaction of ONRR, that the guarantor or appellant is financially 
solvent or otherwise able to pay the obligation. Appellants must submit 
a written request to ``self-bond'' every time a new appeal is filed. To 
evaluate the financial solvency and exemption from requirements of 
appellants to maintain a surety related to an appeal, ONRR requires 
appellants to submit a consolidated balance sheet, subject to annual 
audit. In some cases, we also require copies of the most recent tax 
returns (up to 3 years) filed by appellants.

[[Page 27870]]

    In addition, appellants must annually submit financial statements, 
subject to annual audit, to support their net worth. ONRR uses the 
consolidated balance sheet or business information supplied to evaluate 
the financial solvency of a lessee, designee, or payor seeking a stay 
of payment obligation pending review. If appellants do not have a 
consolidated balance sheet documenting their net worth or if they do 
not meet the $300 million net worth requirement, ONRR selects a 
business information or credit reporting service to provide information 
concerning an appellant's financial solvency. ONRR charges the 
appellant a $50 fee each time we need to review data from a business 
information or credit reporting service. The fee covers our costs in 
determining an appellant's financial solvency.
U.S. Treasury Securities
    Appellants may choose to secure their debts by requesting to use a 
U.S. Treasury Security (TS). Appellants must file the letter of request 
with ONRR prior to the invoice due date. The TS must be a U.S. Treasury 
note or bond with maturity equal to or greater than 1 year. The TS must 
equal 120 percent of the appealed amount plus 1 year of estimated 
interest (necessary to protect ONRR against interest rate 
fluctuations). ONRR only accepts book-entry TS.

III. OMB Approval

    We are requesting OMB's approval to continue to collect this 
information. Not collecting this information would limit the 
Secretary's ability to discharge the duties of the office and also may 
result in loss of royalty and other payments. Proprietary information 
submitted to ONRR under this collection is protected, and there are no 
questions of a sensitive nature included in this information 
collection. A response is mandatory in order to suspend compliance with 
an order pending appeal.

IV. Data

    Title: Suspensions Pending Appeal and Bonding.
    OMB Control Number: 1012-0006.
    Bureau Form Numbers: forms ONRR-4435, ONRR-4436, and ONRR-4437.
    Frequency: Annually and on occasion.
    Estimated Number and Description of Respondents: 105 Federal or 
Indian appellants.
    Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 210 
hours.
    The following table shows the estimated annual burden hours by CFR 
section and paragraph. We have not included in our estimates certain 
requirements performed in the normal course of business and considered 
usual and customary.

                                   Respondents' Estimated Annual Burden Hours
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                                      Reporting and
   Citation 30 CFR Part 1243          recordkeeping           Hour burden      Average number of   Annual burden
                                       requirement                             annual responses        hours
----------------------------------------------------------------------------------------------------------------
1243.4(a)(1); 1243.6;            How do I suspend         2 hours...........  40 (surety                      80
 1243.7(a); 1243.8(a)(2) and      compliance with an                           instruments:
 (b)(2); 1243.101(b);             order?                                       Forms ONRR-4435,
 1243.202(c).                    (a) If you timely                             ONRR-4436, ONRR-
                                  appeal an order, and                         4437, or TS).
                                  if that order or
                                  portion of that order:
                                  (1) Requires you to
                                  make a payment, and
                                  you want to suspend
                                  compliance with that
                                  order, you must post a
                                  bond or other surety
                                  instrument or
                                  demonstrate financial
                                  solvency * * *.
1243.200(a) and (b);             How do I demonstrate     2 hours...........  65 self-bonding                130
 1243.201(c)(1), (c)(2)(i) and    financial solvency?.                         submissions.
 (c)(2)(ii) and (d)(2).          (a) To demonstrate
                                  financial solvency
                                  under this part, you
                                  must submit an audited
                                  consolidated balance
                                  sheet, and, if
                                  requested by the ONRR
                                  bond-approving
                                  officer, up to 3 years
                                  of tax returns to the
                                  ONRR, * * *.
                                 (b) You must submit an
                                  audited consolidated
                                  balance sheet
                                  annually, and, if
                                  requested, additional
                                  annual tax returns on
                                  the date ONRR first
                                  determined that you
                                  demonstrated financial
                                  solvency as long as
                                  you have active
                                  appeals, or whenever
                                  ONRR requests * * *.
                                                         -------------------------------------------------------
    Total Burden...............  .......................  ..................  105...............             210
----------------------------------------------------------------------------------------------------------------

    Estimated Annual Reporting and Recordkeeping ``Non-hour'' Cost 
Burden: There are no additional recordkeeping costs associated with 
this information collection. However, ONRR estimates 5 appellants per 
year will pay a $50 fee to obtain credit data from a business 
information or credit reporting service, which is a total ``non-hour'' 
cost burden of $250 per year (5 appellants per year x $50 = $250).
    Public Disclosure Statement: The PRA (44 U.S.C. 3501 et seq.) 
provides that an agency may not conduct or sponsor, and a person is not 
required to respond to, a collection of information unless it displays 
a currently valid OMB control number.

IV. Request for Comments

    Comments: Section 3506(c)(2)(A) of the PRA requires each agency to 
``* * * provide 60-day notice in the Federal Register * * * and 
otherwise consult with members of the public and affected agencies 
concerning each proposed collection of information * * *.'' Agencies 
must specifically solicit comments to: (1) Evaluate whether the 
proposed collection of information is necessary for the agency to 
perform its duties, including whether the information is useful; (2) 
evaluate the accuracy of the agency's estimate of the burden of the 
proposed collection of information; (3) enhance the quality, 
usefulness, and clarity of the information that ONRR collects; and (4) 
minimize the burden on the respondents, including the use of automated 
collection techniques or other forms of information technology.
    The PRA also requires agencies to estimate the total annual 
reporting ``non-hour cost'' burden to respondents or record-keepers 
resulting from the collection of information. If you have costs to 
generate, maintain, and disclose this information, you should comment 
and provide your total capital and

[[Page 27871]]

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; 
monitoring, sampling, and testing equipment; and record storage 
facilities. Generally, your estimates should not include equipment or 
services purchased: (i) Before October 1, 1995; (ii) to comply with 
requirements not associated with the information collection; (iii) for 
reasons other than to provide information or keep records for the 
Federal government; or (iv) as part of customary and usual business or 
private practices.
    We will summarize written responses to this notice and address them 
in our ICR submission for OMB approval, including appropriate 
adjustments to the estimated burden. We will provide a copy of the ICR 
to you without charge upon request. We also will post the ICR at http://www.onrr.gov/Laws_R_D/FRNotices/ICR0122.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.
    ONRR Information Collection Coordinator: Jeffrey Parrillo (202) 
208-7072.

Authority

    The authorities for this action are the Mineral Leasing Act of 1920 
(30 U.S.C. 192), Outer Continental Shelf Lands Act (43 U.S.C. 1353), 
Indian Mineral Development Act of 1982 (Pub. L. 97-382--Dec. 22, 1982), 
and the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.).

Gregory J. Gould,
Director, Office of Natural Resources Revenue.
[FR Doc. 2017-12596 Filed 6-16-17; 8:45 am]
BILLING CODE 4335-30-P