[Federal Register Volume 77, Number 133 (Wednesday, July 11, 2012)]
[Notices]
[Pages 40904-40910]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-16922]
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DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue
[Docket No. ONRR-2011-0025]
Agency Information Collection Activities: Submitted for Office of
Management and Budget Review; Comment Request
AGENCY: Office of Natural Resources Revenue, Interior.
ACTION: Notice of an extension of a currently approved information
collection.
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SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), the
Office of Natural Resources Revenue (ONRR) is notifying the public that
we have submitted to the Office of Management and Budget (OMB) an
information collection request (ICR) to renew approval of the paperwork
requirements in the regulations under 30 CFR parts 1227, 1228, and
1229. This notice also provides the public with a second opportunity to
comment on the paperwork burden of these regulatory requirements.
DATES: Submit written comments on or before August 10, 2012.
ADDRESSES: Submit written comments by either FAX (202) 395-5806 or
email (OIRA_Docket@omb.eop.gov) directly to the Office of Information
and Regulatory Affairs, OMB, Attention: Desk Officer for the Department
of the Interior (OMB Control Number 1012-0003).
Please also submit a copy of your comments to ONRR by one of the
following methods:
Electronically go to http://www.regulations.gov. In the
entry titled ``Enter Keyword or ID,'' enter ONRR-2011-0025, and then
click search. Follow the instructions to submit public comments. We
will post all comments.
Mail comments to Stephen Chubb, Regulatory Specialist,
Office of Natural Resources Revenue, P.O. Box 25165, MS 64000A, Denver,
Colorado 80225. Please reference ICR 1012-0003 in your comments.
Hand-carry comments or use an overnight courier service.
Our courier address is Building 85, Room A-614, Denver Federal Center,
West 6th Ave. and Kipling St., Denver, Colorado 80225. Please reference
ICR 1012-0003 in your comments.
FOR FURTHER INFORMATION CONTACT: Stephen Chubb, email
stephen.chubb@onrr.gov. You may also contact Stephen Chubb to obtain
copies, at no cost, of (1) the ICR, (2) any associated forms, and (3)
the regulations that require the subject collection of information. You
may also review the ICR online at http://www.reginfo.gov/public/do/PRAMain.
SUPPLEMENTARY INFORMATION:
Title: 30 CFR Parts 1227, 1228, and 1229, Delegated and Cooperative
Activities with States and Indian Tribes.
OMB Control Number: 1012-0003.
Bureau Form Numbers: None.
Abstract: The Secretary of the U.S. 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 in accordance with applicable laws. 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. Public laws pertaining to mineral leases on Federal and
Indian lands are available at http://www.onrr.gov/Laws_R_D/PublicLawsAMR.htm.
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, or the
designee, must report various kinds of information to the lessor
relative to the 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. The information that ONRR collects includes data necessary to
ensure that the lessee accurately values and appropriately pays all
royalties and other mineral revenues due.
The Federal Oil and Gas Royalty Management Act of 1982 (FOGRMA),
which the Federal Oil and Gas Royalty Simplification and Fairness Act
of 1996 amended, authorizes the Secretary to develop delegated and
cooperative agreements with States (30 U.S.C 1735, sect. 205) and
Indian Tribes (30 U.S.C. 1732, sect. 202) to carry out certain
inspection, auditing, investigation, or limited enforcement activities
for oil and gas leases in their jurisdiction. The States and Indian
Tribes are working partners and are an integral part of the overall
onshore and offshore compliance effort. The Appropriations Act of 1992
also authorizes the States and Tribes to perform the same functions for
coal and other solid mineral leases.
This collection of information is necessary in order for States and
Tribes to conduct audits and related investigations of Federal and
Indian oil, gas, coal, any other solid minerals, and geothermal royalty
revenues from Federal and tribal leased lands. Relevant parts of the
regulations include 30 CFR parts 1227, 1228, and 1229, as described
below:
[[Page 40905]]
Title 30 CFR part 1227--Delegation to States, provides procedures
to delegate certain Federal minerals revenue management functions to
States for Federal oil and gas leases. The regulations provide only
audit and investigation functions to States for Federal geothermal and
solid mineral leases, and leases subject to section 8(g) of the OCS
Lands Act, within their State boundaries. In order for ONRR to consider
a State for such delegation, the State must submit a written proposal
to, and receive approval from, the ONRR Director. States also must
provide periodic accounting documentation to ONRR, including an annual
work plan and quarterly reimbursement vouchers.
Title 30 CFR part 1228--Cooperative Activities with States and
Indian Tribes, provides procedures for Indian Tribes to carry out
audits and related investigations of their respective leased lands. The
Tribe must submit a written proposal to ONRR in order to enter into a
cooperative agreement. The proposal must outline the activities that
the Tribe will undertake and must present evidence that the Tribe can
meet the Secretary's standards in order for the Tribe to conduct the
activities. The Tribe also must submit an annual work plan and budget,
as well as quarterly reimbursement vouchers.
Title 30 CFR part 1229--Delegation to States provides procedures
for States to carry out audits and related investigations of leased
Indian lands within their respective State boundaries by permission of
the respective Indian tribal councils or individual Indian mineral
owners. The State must receive the Secretary's delegation of authority
and submit annual audit work plans detailing its audits and related
investigations, annual budgets, and quarterly reimbursement vouchers.
States also must maintain records according to section 1227.200(d).
ONRR protects proprietary information that the States and Tribes
submit under this collection. We do not collect items of a sensitive
nature. States and Tribes must respond in order to obtain the benefit
of entering into a cooperative agreement with the Secretary.
Frequency: Varies based on the function performed.
Estimated Number and Description of Respondents: 10 States and 6
Indian Tribes.
Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 5,519
hours.
We have not included in our estimates certain usual and customary
requirements that States and Tribes perform in the normal course of
business. This 30-day Federal Register notice burden chart shows a 12-
hour reduction in annual burden hours from the previous 60-day notice.
This adjustment is for section 1227.200(e). The following table shows
the estimated burden hours by CFR section and paragraph:
Respondents' Estimated Annual Burden Hours
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Number of
30 CFR Section Reporting and recordkeeping Hour burden annual Annual burden
requirements per response responses hours
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Part 1227--Delegation to States
Delegation Proposals
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1227.103; 107; 109; 110(a-b(1)); What must a State's 200 1 200
110(c-e); 111(a-b); 805. delegation proposal
contain?
If you want ONRR to
delegate royalty
management functions to
you, then you must submit
a delegation proposal to
the ONRR Deputy Director.
The ONRR will provide you
with technical assistance
and information to help
you prepare your
delegation proposal..
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Delegation Process
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1227.110(b)(2)..................... (b)(2) If you want to 16 11 176
change the terms of your
delegation agreement for
the renewal period, you
must submit a new
delegation proposal under
this part.
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Existing Delegations
Compensation
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1227.112(d) and (e)................ What compensation will a 4 64 256
State receive to perform
delegated functions?
You will receive
compensation for your
costs to perform each
delegated function subject
to the following
conditions * * *
(d) At a minimum, you must
provide vouchers detailing
your expenditures
quarterly during the
fiscal year. However, you
may agree to provide
vouchers on a monthly
basis in your delegation
agreement * * *
(e) You must maintain
adequate books and records
to support your vouchers *
* *
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States' Responsibilities To Perform Delegated Functions
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1227.200(a), (b), (c) and (d)...... What are a State's general 200 10 2,000
responsibilities if it
accepts a delegation?
For each delegated function
you perform, you must: (a)
* * * seek information or
guidance from ONRR
regarding new, complex, or
unique issues. * * *
(b)(1) * * * Provide
complete disclosure of
financial results of
activities;
[[Page 40906]]
(2) Maintain correct and
accurate records of all
mineral-related
transactions and accounts;
(3) Maintain effective
controls and
accountability;
(4) Maintain a system of
accounts * * *
(5) Maintain adequate
royalty and production
information * * *
(c) Assist ONRR in meeting
the requirements of the
Government Performance and
Results Act (GPRA) * * *
(d) Maintain all records
you obtain or create under
your delegated function,
such as royalty reports,
production reports, and
other related information.
* * * You must maintain
such records for at least
7 years. * * *
1227.200(e); 801(a); 804........... (e) Provide reports to ONRR 3 40 120
about your activities
under your delegated
functions * * * At a
minimum, you must provide
periodic statistical
reports to ONRR
summarizing the activities
you carried out * * *
1227.200(f); 401(e); 601(d)........ (f) Assist ONRR in 1 250 250
maintaining adequate
reference, royalty, and
production databases. * *
*
1227.200(g); 301(e)................ (g) Develop annual work 60 10 600
plans * * *
1227.200(h)........................ (h) Help ONRR respond to 8 10 80
requests for information
from other Federal
agencies, Congress, and
the public * * *
1227.400(a)(4) and (a)(6); 401(d); What functions may a State 250 1 250
501(c). perform in processing
production reports or
royalty reports?
Production reporters or
royalty reporters provide
production, sales, and
royalty information on
mineral production from
leases that must be
collected, analyzed, and
corrected.
(a) If you request
delegation of either
production report or
royalty report processing
functions, you must
perform * * *
(4) Timely transmitting
production report or
royalty report data to
ONRR and other affected
Federal agencies * * *
(6) Providing production
data or royalty data to
ONRR and other affected
Federal agencies. * * *
1227.400(c)........................ (c) You must provide ONRR 12 1 12
with a copy of any
exceptions from reporting
and payment requirements
for marginal properties
and any alternative
royalty and payment
requirements for unit
agreements and
communitization agreements
you approve.
1227.601(c)........................ What are a State's 10 1 10
responsibilities if it
performs automated
verification?
To perform automated
verification of production
reports or royalty
reports, you must * * *
(c) Maintain all
documentation and logging
procedures * * *
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Performance Review
----------------------------------------------------------------------------------------------------------------
Subtotal Burden for 30 CFR Part 1227........................................ 399 3,954
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Part 1228--Cooperative Activities With States and Indian Tribes Subpart C--Oil and Gas, Onshore
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1228.100(a) and (b); 101(c); 107(b) Entering into an agreement. 200 1 200
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(a) * * * Indian Tribe may
request the Department to
enter into a cooperative
agreement by sending a
letter from * * * tribal
chairman * * * to the
Director of ONRR.
(b) The request for an
agreement shall be in a
format prescribed by ONRR
and should include at a
minimum the following
information:
(1) Type of eligible
activities to be
undertaken.
(2) Proposed term of the
agreement.
(3) Evidence that * * *
Indian Tribe meets, or can
meet by the time the
agreement is in effect * *
*
[[Page 40907]]
(4) If the State is
proposing to undertake
activities on Indian lands
located within the State,
a resolution from the
appropriate tribal council
indicating their agreement
to delegate to the State
responsibilities under the
terms of the cooperative
agreement for activities
to be conducted on tribal
or allotted land.
1228.101(a)........................ Terms of agreement......... 15 6 90
(a) Agreements entered into
under this part shall be
valid for a period of 3
years and shall be
renewable * * * upon
request of * * * Indian
Tribe. * * *
1228.101(d)........................ (d) * * * Indian Tribe will 80 1 80
be given 60 days to
respond to the notice of
deficiencies and to
provide a plan for
correction of those
deficiencies. * * *
1228.103(a) and (b)................ Maintenance of records..... 120 6 720
(a) * * * Indian Tribe
entering into a
cooperative agreement
under this part must
retain all records,
reports, working papers,
and any backup materials *
* *
(b) * * * Indian Tribe
shall maintain all books
and records * * *
1228.105(a)(1) and (a)(2).......... Funding of cooperative 60 6 360
agreements.
(a)(1) The Department may,
under the terms of the
cooperative agreement,
reimburse * * * Indian
Tribe up to 100 percent of
the costs of eligible
activities. Eligible
activities will be agreed
upon annually upon the
submission and approval of
a work plan and funding
requirement.
(2) A cooperative agreement
may be entered into with *
* * Indian Tribe, upon
request, without a
requirement for
reimbursement of costs by
the Department.
1228.105(c)........................ (c) . . . Indian Tribe 4 24 96
shall submit a voucher for
reimbursement of eligible
costs incurred within 30
days of the end of each
calendar quarter. * * *
Indian Tribe must provide
the Department a summary
of costs incurred, for
which * * * Indian Tribe
is seeking reimbursement,
with the voucher.
----------------------------------------------------------------------------------------------------------------
Subtotal Burden for 30 CFR Part 1228........................................ 44 1,546
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Part 1229--Delegation to States Subpart C--Oil and Gas, Onshore Administration of Delegations
----------------------------------------------------------------------------------------------------------------
1229.100(a)(1) and (a)(2).......... Authorities and 1 1 1
responsibilities subject
to delegation.
(a) All or part of the
following authorities and
responsibilities of the
Secretary under the Act
may be delegated to a
State authority:
(1) Conduct of audits
related to oil and gas
royalty payments made to
the ONRR which are
attributable to leased * *
* Indian lands within the
State. Delegations with
respect to any Indian
lands require the written
permission, subject to the
review of the ONRR, of the
affected Indian Tribe or
allottee.
(2) Conduct of
investigation related to
oil and gas royalty
payments made to the ONRR
which are attributable to
* * * Indian lands within
the State. Delegation with
respect to any Indian
lands require the written
permission, subject to the
review of the ONRR, of the
affected Indian Tribe or
allottee. No investigation
will be initiated without
the specific approval of
the ONRR. * * *
1229.101(a) and (d)................ Petition for delegation.... 1 1 1
(a) The governor or other 1 1 1
authorized official of any
State which contains * * *
Indian oil and gas leases
where the Indian Tribe and
allottees have given the
State an affirmative
indication of their desire
for the State to undertake
certain royalty management-
related activities on
their lands, may petition
the Secretary to assume
responsibilities to
conduct audits and related
investigations of royalty
related matters affecting
* * * Indian oil and gas
leases within the State *
* *
[[Page 40908]]
(d) In the event that the
Secretary denies the
petition, the Secretary
must provide the State
with the specific reasons
for denial of the
petition. The State will
then have 60 days to
either contest or correct
specific deficiencies and
to reapply for a
delegation of authority.
1229.102(c)........................ Fact-finding and hearings.. 1 1 1
(c) A State petitioning for
a delegation of authority
shall be given the
opportunity to present
testimony at a public
hearing.
1229.103(c)........................ Duration of delegations; 1 1 1
termination of delegations.
(c) A State may terminate a
delegation of authority by
giving a 120-day written
notice of intent to
terminate.
1229.105........................... Evidence of Indian 1 1 1
agreement to delegation.
In the case of a State
seeking a delegation of
authority for Indian lands
* * * the State petition
to the Secretary must be
supported by an
appropriate resolution or
resolutions of tribal
councils joining the State
in petitioning for
delegation and evidence of
the agreement of
individual Indian
allottees whose lands
would be involved in a
delegation. Such evidence
shall specifically speak
to having the State assume
delegated responsibility
for specific functions
related to royalty
management activities.
1229.106........................... Withdrawal of Indian lands 1 1 1
from delegated authority.
If at any time an Indian
Tribe or an individual
Indian allottee determines
that it wishes to withdraw
from the State delegation
of authority in relation
to its lands, it may do so
by sending a petition of
withdrawal to the State. *
* *
1229.109(a)........................ Reimbursement for costs 1 1 1
incurred by a State under
the delegation of
authority.
(a) The Department of the
Interior (DOI) shall
reimburse the State for
100 percent of the direct
cost associated with the
activities undertaken
under the delegation of
authority. The State shall
maintain books and records
in accordance with the
standards established by
the DOI and will provide
the DOI, on a quarterly
basis, a summary of costs
incurred * * *
1229.109(b)........................ (b) The State shall submit 1 4 4
a voucher for
reimbursement of costs
incurred within 30 days of
the end of each calendar
quarter.
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Delegation Requirements
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1229.120........................... Obtaining regulatory and 1 1 1
policy guidance. All
activities performed by a
State under a delegation
must be in full accord
with all Federal laws,
rules and regulations, and
Secretarial and agency
determinations and orders
relating to the
calculation, reporting,
and payment of oil and gas
royalties. In those cases
when guidance or
interpretations are
necessary, the State will
direct written requests
for such guidance or
interpretation to the
appropriate ONRR
officials. * * *
1229.121........................... Recordkeeping requirements. 1 1 1
(a) The State shall
maintain in a safe and
secure manner all records,
workpapers, reports, and
correspondence gained or
developed as a consequence
of audit or investigative
activities conducted under
the delegation * * *
(b) The State must maintain
in a confidential manner
all data obtained from DOI
sources or from payor or
company sources under the
delegation * * *
[[Page 40909]]
(c) All records subject to
the requirements of
paragraph (a) must be
maintained for a 6-year
period measured from the
end of the calendar year
in which the records were
created * * * Upon
termination of a
delegation, the State
shall, within 90 days from
the date of termination,
assemble all records
specified in subsection
(a), complete all working
paper files in accordance
with Sec. 229.124, and
transfer such records to
the ONRR.
(d) The State shall
maintain complete cost
records for the delegation
in accordance with
generally accepted
accounting principles. * *
*
1229.122........................... Coordination of audit 1 1 1
activities.
(a) Each State with a
delegation of authority
shall submit annually to
the ONRR an audit workplan
specifically identifying
leases, resources,
companies, and payors
scheduled for audit * * *
A State may request
changes to its workplan *
* * at the end of each
quarter of each fiscal
year. All requested
changes are subject to
approval by the ONRR and
must be submitted in
writing.
(b) When a State plans to
audit leases of a lessee
or royalty payor for which
there is an ONRR or OIG
resident audit team, all
audit activities must be
coordinated through the
ONRR or OIG resident
supervisor. * * *
(c) The State shall consult
with the ONRR and/or OIG
regarding resolution of
any coordination problems
encountered during the
conduct of delegation
activities.
1229.123(b)(3)(i).................. Standards for audit 1 1 1
activities. (b)(3)
Standards of reporting.
(i) Written audit reports
are to be submitted to the
appropriate ONRR officials
at the end of each field
examination.
1229.124........................... Documentation standards. 1 1 1
Every audit performed by a
State under a delegation
of authority must meet
certain documentation
standards. In particular,
detailed workpapers must
be developed and
maintained.
1229.125(a) and (b)................ Preparation and issuance of 1 1 1
enforcement documents.
(a) Determinations of
additional royalties due
resulting from audit
activities conducted under
a delegation of authority
must be formally
communicated by the State,
to the companies or other
payors by an issue letter
prior to any enforcement
action. * * *
(b) After evaluating the
company or payor's
response to the issue
letter, the State shall
draft a demand letter
which will be submitted
with supporting workpaper
files to the ONRR for
appropriate enforcement
action. Any substantive
revisions to the demand
letter will be discussed
with the State prior to
issuance of the letter. *
* *
1229.126(a) and (b)................ Appeals.................... 1 1 1
(a) . . . The State
regulatory authority
shall, upon the request of
the ONRR, provide
competent and
knowledgeable staff for
testimony, as well as any
required documentation and
analyses, in support of
the lessor's position
during the appeal process.
(b) An affected State, upon
the request of the ONRR,
shall provide expert
witnesses from their audit
staff for testimony as
well as required
documentation and analyses
to support the
Department's position
during the litigation of
court cases arising from
denied appeals. * * *
1229.127........................... Reports from States. The 1 1 1
State, acting under the
authority of the
Secretarial delegation,
shall submit quarterly
reports which will
summarize activities
carried out by the State
during the preceding
quarter of the year under
the provisions of the
delegation. * * *
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Subtotal Burden for 30 CFR Part 229......................................... 19 19
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[[Page 40910]]
TOTAL BURDEN............................................................ 462 5,519
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Estimated Annual Reporting and Recordkeeping ``Non-hour'' Cost
Burden: We have identified no ``non-hour cost'' burden associated with
this collection of information.
Public Disclosure Statement: The PRA (44 U.S.C. 3501 et seq.)
provides that an agency may not conduct or sponsor, and a person is not
required to respond to, a collection of information unless it displays
a currently valid OMB control number.
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.
To comply with the public consultation process, we published a
notice in the Federal Register on February 2, 2012 (77 FR 5268),
announcing that we would submit this ICR to OMB for approval. The
notice provided the required 60-day comment period. We received no
unsolicited comments in response to the notice.
If you wish to comment in response to this notice, you may send
your comments to the offices listed under the ADDRESSES section of this
notice. OMB has up to 60 days to approve or disapprove the information
collection, but they may respond after 30 days. Therefore, in order to
ensure maximum consideration, OMB should receive public comments by
August 10, 2012.
Public Comment Policy: We post all comments, including names and
addresses of respondents, at http://www.regulations.gov. Before
including your address, phone number, email address, or other personal
identifying information in your comment, be advised that we may make
publicly available at any time your entire comment--including your
personal identifying information. While you can ask us in your comment
to withhold from public view your personal identifying information, we
cannot guarantee that we will be able to do so.
Information Collection Clearance Officer: Laura Dorey (202) 208-
2654.
Dated: June 21, 2012.
Gregory J. Gould,
Director, Office of Natural Resources Revenue.
[FR Doc. 2012-16922 Filed 7-10-12; 8:45 am]
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