[Federal Register Volume 77, Number 99 (Tuesday, May 22, 2012)]
[Notices]
[Pages 30310-30312]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-12304]
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DEPARTMENT OF THE INTERIOR
Bureau of Safety and Environmental Enforcement
[Docket ID BSEE-2012-0009; OMB Control Number 1014-0005]
Information Collection Activities: Relief or Reduction in Royalty
Rates; Proposed Collection; Comment Request
ACTION: 60-day Notice.
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SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), BSEE
is inviting comments on a collection of information that we will submit
to the Office of Management and Budget (OMB) for review and approval.
The information collection request (ICR) concerns a renewal to the
paperwork requirements in the regulations under 30 CFR 203, Relief or
Reduction in Royalty Rates.
DATES: You must submit comments by July 23, 2012.
ADDRESSES: You may submit comments by either of the following methods
listed below.
Electronically: go to http://www.regulations.gov. In the
entry titled ``Enter Keyword or ID,'' enter BSEE-2012-0009 then click
search. Follow the instructions to submit public comments and view all
related materials. We will post all comments.
Email nicole.mason@bsee.gov. Mail or hand-carry comments
to the Department of the Interior; Bureau of Safety and Environmental
Enforcement; Regulations Development Branch; Attention: Nicole Mason;
381 Elden Street, HE-3313; Herndon, Virginia 20170-4817. Please
reference ICR 1014-0005 in your comment and include your name and
return address.
FOR FURTHER INFORMATION CONTACT: Nicole Mason, Regulations Development
Branch at (703) 787-1605 to request additional information about this
ICR.
SUPPLEMENTARY INFORMATION:
Title: 30 CFR part 203, Relief or Reduction in Royalty Rates.
OMB Control Number: 1014-0005.
Abstract: The Outer Continental Shelf (OCS) Lands Act, as amended
by Public Law 104-58, Deep Water Royalty Relief Act (DWRRA), gives the
Secretary of the Interior (Secretary) the authority to reduce or
eliminate royalty or any net profit share specified in OCS oil and gas
leases to promote increased production. The DWRRA also authorized the
Secretary to suspend royalties when necessary to promote development or
recovery of marginal resources on producing or non-producing leases in
the Gulf of Mexico (GOM) west of 87 degrees, 30 minutes West longitude.
Section 302 of the DWRRA provides that new production from a lease
in existence on November 28, 1995, in a water depth of at least 200
meters, and in the GOM west of 87 degrees, 30 minutes West longitude
qualifies for royalty suspension in certain situations. To grant a
royalty suspension, the Secretary must determine that the new
production or development would not be economic in the absence of
royalty relief. The Secretary must then determine the volume of
production on which no royalty would be due in order to make the new
production from the lease economically viable. This determination is be
done on a case-by-case basis. Production from leases in the same water
depth and area issued after November 28, 2000, also can qualify for
royalty suspension in addition to any that may be included in their
lease terms.
In addition, the Independent Offices Appropriations Act (31 U.S.C.
9701), the Omnibus Appropriations Bill (Pub. L. 104-133, 110 Stat.
1321, April 26, 1996), and OMB Circular A-25, authorize Federal
agencies to recover the full cost of services that confer special
benefits. Under the Department of the Interior's (DOI) implementing
policy, BSEE is required to charge fees for services that provide
special benefits or privileges to an identifiable non-Federal recipient
above and beyond those which accrue to the public at large.
Regulations at 30 CFR part 203 implement these statutes and policy
and require respondents to pay a fee to request royalty relief. Section
30 CFR 203.3 states that, ``We will specify the necessary fees for each
of the types of royalty-relief applications and possible BSEE audits in
a Notice to Lessees. We will periodically update the fees to reflect
changes in costs as well as provide other information necessary to
administer royalty relief.''
BSEE uses the information to make decisions on the economic
viability of leases requesting a suspension or elimination of royalty
or net profit share. These decisions have enormous monetary impacts to
both the lessee and the Federal Government. Royalty relief can lead to
increased production of natural gas and oil, creating profits for
lessees and royalty and tax revenues for the government that they might
not otherwise receive. We could not make an informed decision without
the collection of information required by 30 CFR part 203.
We will protect information from respondents considered proprietary
under the Freedom of Information Act (5 U.S.C. 552) and its
implementing regulations (43 CFR 2) and under regulations at 30 CFR
203.63, Does my application have to include all leases in the field,
and 30 CFR 250.197, Data and information to be made available to the
public or for limited inspection. No items of a sensitive nature are
collected. Responses are mandatory or are required to obtain or retain
a benefit.
Frequency: On occasion.
Description of Respondents: Potential respondents comprise Federal
oil, gas, or sulphur lessees and/or operators.
Estimated Reporting and Recordkeeping Hour Burden: The currently
approved annual reporting burden for this collection is 2,635 hours.
The following table details the individual components and respective
hour burden estimates of this ICR. In calculating the burdens, we
assumed that respondents perform certain requirements in the normal
course of their activities. We consider these to be usual and customary
and took that into account in estimating the burden.
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Hour burden
Citation 30 CFR 203 and related Reporting or recordkeeping requirement ----------------------------------
NTL(s) Application fees
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2(b); 3; 4; 70.................. These sections contain general references 0
to submitting reports, applications,
requests, copies, demonstrating
qualifications, for BSEE approval burdens
covered under specific requirements.
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[[Page 30311]]
Royalty Relief for Ultra-Deep Gas Wells and Deep Gas Wells on Shallow Water Leases
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31(c)........................... Request a refund of or recoup royalties 1
from qualified ultra-deep wells...
35(d); 44(e).................... Request to extend the deadline for 4
beginning production with required
supporting documentation.
41(d)........................... Request a refund of or recoup royalties 1
from qualified wells >200 meters but <400
meters.
35(a); 44(a); 47(a)............. Notify BSEE of intent to begin drilling.... 1
35(c), (d); 44(b), (d), (e)..... Notify BSEE that production has begun, 2
request confirmation of the size of RSV,
provide supporting documentation.
46.............................. Provide data from well to confirm and 8
attest well drilled was an unsuccessful
certified well with supporting
documentation and request supplement.
49(b)........................... Notify BSEE or decision to exercise option 0
to replace one set of deep gas royalty
suspension terms for another set of such
terms.
Note: BSEE SOL requires that this reg text .................................
stay for legacy purposes only. Last time
any respondent could use was 2004; hence,
no burden.
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End of Life and Special Royalty Relief*
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51; 83; 84...................... Application--leases that generate earnings 100
NTL............................. that cannot sustain continued production Application = $8,000
(end-of-life lease); required supporting Audit = $12,500
documentation.
52.............................. Demonstrate ability to qualify for royalty 1
relief or to re-qualify.
55.............................. Renounce relief arrangement (end-of-life) 1
(seldom, if ever will be used; minimal
burden to prepare letter).
80 NTL.......................... Application--apart from formal programs for 250
royalty relief for marginal producing Application = $8,000**
lease (Special Case Relief); required Audit = $12,500
supporting documentation.
80 NTL.......................... Application--apart from formal programs for 1,000
royalty relief for marginal expansion Application = $19,500**
project or marginal non-producing lease Audit = $18,750
(Special Case Relief); required supporting
documentation.
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CPA Report
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81; 83-90....................... Required reports; extension justification.. Burden included with
applications.
1 CPA report x $45,000
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Deep Water Royalty Relief Act (DWRAA)
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61; 62; 64; 65; 71; 83; 85-89; Application--preview assessment (seldom if 900
NTL. ever will be used as applicants generally Application = $28,500
opt for binding determination by BSEE
instead) and required supporting
documentation.
62; 64; 65; 71; 83; 85-89....... Application--leases in designated areas of 2,000
GOM deep water acquired in lease sale Application = $19,500
before 11/28/95 or after 11/28/00 and are
producing (deep water expansion project);
required supporting documentation.
62; 64; 65; 71; 81; 83; 85-89; Application--leases in designated areas of 2,000
NTL. deep water GOM, acquired in lease sale Application = $34,000*
before 11/28/95 or after 11/28/00 that Audit = $12,500
have not produced (pre-act or post-2000
deep water leases); required supporting
documentation.
70; 81; 90; 91.................. Submit fabricator's confirmation report; 20
extension justification.
70; 81; 90; 92; NTL............. Submit post-production development report; 50
extension justification. Reserve Audit = $18,750
right to audit (1 audit every 6 years)
after production starts to confirm cost
estimates of the application.
74; 75; NTL..................... Redetermination and required supporting 500
documentation. Application = $16,000*
77.............................. Renounce relief arrangement (deep water) 1
(seldom, if ever will be used; minimal
burden to prepare letter).
79(a)........................... Request reconsideration of BSEE field 0
designation.
This was a regulatory requirement for
leases issued prior to 1995.
79(c)........................... Request extension of deadline to start 2
construction.
83; NTL......................... Application--short form to add or assign 40
pre-Act lease and required supporting Application = $1,000
documentation.
81(d)........................... Retain supporting cost records for post- 8
production development/fabrication reports
(records retained as usual/customary
business practice; minimal burden to make
available at BSEE request).
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* CPA certification expense burden also imposed on applicant.
** These applications currently do not have a set fee since they are done on a case-by-case basis.
Note: Applications include numerous items such as: transmittal letters, letters of request, modifications to
applications, reapplications, etc.
[[Page 30312]]
Estimated Reporting and Recordkeeping Non-Hour Cost Burden: There
are non-hour costs associated with this information collection. The
currently approved non-hour cost burden is $122,024. This estimate is
based on:
(a) Applications and audit fees. The total annual estimated cost
burden for these fees is $77,024 (refer to the table).
(b) The cost of report(s) prepared by independent certified public
accountants. Under Sec. 203.81, a report prepared by an independent
certified public accountant must accompany the application and post-
production report (expansion project, short form, and preview
assessment applications are excluded). The OCS Lands Act applications
will require this report only once; the DWRRA applications will require
this report at two stages--with the application and post-production
development report for successful applicants. We estimate approximately
one report submitted at an average cost of $45,000 per report. We have
not identified any other non-hour cost burdens for this collection.
Comments: Before submitting an ICR to OMB, PRA section
3506(c)(2)(A) requires each agency ``* * * to provide notice * * * and
otherwise consult with members of the public and affected agencies
concerning each proposed collection of information * * *''. Agencies
must specifically solicit comments to: (a) Evaluate whether the
collection is necessary or useful; (b) evaluate the accuracy of the
burden of the proposed collection of information; (c) enhance the
quality, usefulness, and clarity of the information to be collected;
and (d) minimize the burden on the respondents, including the use of
technology.
Agencies must also estimate the non-hour paperwork cost burdens to
respondents or recordkeepers resulting from the collection of
information. Therefore, if you have other than hour burden costs to
generate, maintain, and disclose this information, you should comment
and provide your total capital and startup cost components or annual
operation, maintenance, and purchase of service components. For further
information on this burden, refer to 5 CFR 1320.3(b)(1) and (2), or
contact the Bureau representative listed previously in this notice.
We will summarize written responses to this notice and address them
in our submission for OMB approval. As a result of your comments, we
will make any necessary adjustments to the burden in our submission to
OMB.
Public Comment Procedures: Before including your address, phone
number, email address, or other personal identifying information in
your comment, you should be aware that your entire comment-including
your personal identifying information-may be made publicly available at
any time. While you can ask us in your comment to withhold your
personal identifying information from public review, we cannot
guarantee that we will be able to do so.
Acting BSEE Information Collection Clearance Officer: Cheryl
Blundon (703) 787-1607.
Dated: May 15, 2012.
Robert W. Middleton,
Acting Chief, Office of Offshore Regulatory Programs.
[FR Doc. 2012-12304 Filed 5-21-12; 8:45 am]
BILLING CODE 4310-VH-P