Agency Information Collection Activities: Submitted for Office of Management and Budget Review; Comment Request

Section 3506(c)(2)(A) of the Paperwork Reduction Act requires each agency ``. . . to provide notice . . . and otherwise consult with members of the public and affected agencies concerning each proposed collection of information . . . .'' Agencies must specifically solicit comments to: (a) Evaluate whether the 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 to be collected; and (d) minimize the burden on the respondents, including the use of automated collection techniques or other forms of information technology. The Department of the Interior (DOI) is the department within the Federal Government responsible for matters relevant to mineral resource development on Federal and Indian lands and the Outer Continental Shelf (OCS). The Secretary of the Interior (Secretary) is responsible for managing the production of minerals from Federal and Indian lands and the OCS; for collecting royalties from lessees who produce minerals; and for distributing the funds collected in accordance with applicable laws. MMS performs the royalty management functions for the Secretary.

OMB Control Number 1010-0103

The safety net calculation establishes the minimum value for royalty purposes. This requirement will assist the Indian lessor in receiving all the royalties that are due and aid MMS in its compliance efforts. The safety net price will be calculated using prices received for gas sold downstream of the index point. It will include only the lessee's or lessee's affiliate's arm's-length contracts and will not require detailed calculations for the costs of transportation. By June 30 of each calendar year, the lessee will be required to calculate for each month of the calendar year a safety net price. This must be calculated for each index zone where the lessee has an Indian lease. The safety net price will capture the significantly higher values for sales occurring beyond the first index pricing point. The lessee will submit its safety net price to MMS annually (by June 30) using the Safety Net Report, Form MMS-4411. The Safety Net Report will allow MMS and the tribes to ensure that Indian mineral lessors receive the maximum revenues from mineral resources on their land consistent with the Secretary's trust responsibility and lease terms. In the safety net calculation, the lessee will only include sales under those arm's-length contracts that establish a delivery point beyond the first index pricing point to which the gas flows. Moreover, those contracts must include any gas produced from or allocable to one or more of the lessee's

Indian leases in the index zone. Information provided on the form may be used by MMS auditors, the Royalty Valuation Division, and the Office of Indian Royalty Assistance. There are 700 companies that pay royalties on approximately 4,511 tribal and allotted Indian leases; we estimate that 20 percent of the companies (140 companies) have sales beyond the first index pricing point. Therefore, 560 reports from 140 companies for 4 index zones will be required annually. We estimate that it will take a company 24 hours to report the data required at proposed 30 CFR 206.172(e) (reference 63 FR 7089) and a recordkeeping burden of 1 hour per report annually. Therefore, we estimate that the annual burden for this information collection is 14,000 hours (560 reports x 25 hours).

OMB Control Number 1010-0104

Accounting for comparison (dual accounting) is required by the terms of most Indian leases when gas produced from the lease is processed. To not perform dual accounting, a lessee must certify, on Form MMS-4410, Certification For Not Performing Accounting For Comparison, that the gas was never processed prior to entering the pipeline with an index located in an index zone or into a mainline pipeline not in an index zone. The lessee will be required to sign the certification form for each lease having production that is exempt from dual accounting. This is a one-time certification that will remain in effect until there is a change in lease status or ownership. This certification will allow MMS and the tribes to better monitor compliance with the dual accounting requirement of Indian leases. In most cases, the lessee will directly know the disposition of the gas. If gas is sold at the wellhead, the lessee may have to consult with the purchaser of the gas to determine its disposition. Information provided on the form may be used by MMS auditors, the Royalty Valuation Division, and the Office of Indian Royalty Assistance. There are approximately 4,511 tribal and allotted Indian leases and 700 payors comprising the Indian lease universe. We estimate that 30 percent of the Indian leases, or 1,353 leases, would not require accounting for comparison. A certification form will be required for each lease, and the certification will remain in effect until there is a change in lease status or ownership. This one-time filing as required by proposed 30 CFR 206.172(b)(ii) (reference 63 FR 7089) will require 3 hours per certification report to extract the data from company records or obtain the information from the purchasers and a recordkeeping burden of 1 hour per report annually. Therefore, we estimate that the total annual burden for this information collection is 5,412 hours (1,353 reports x 4 hours).

Dated: July 21, 1999. Joan Killgore, Acting Associate Director for Royalty Management. [FR Doc. 99-19081 Filed 7-26-99; 8:45 am] BILLING CODE 4310-MR-P