[Federal Register Volume 77, Number 204 (Monday, October 22, 2012)]
[Notices]
[Pages 64535-64538]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-25971]
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DEPARTMENT OF THE INTERIOR
Bureau of Safety and Environmental Enforcement (BSEE)
[Docket ID BSEE-2012-0009; OMB Number 1014-0005]
Information Collection Activities: Relief or Reduction in Royalty
Rates; Submitted for Office of Management and Budget (OMB) Review;
Comment Request
ACTION: 30-day Notice.
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SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), we
are notifying the public that we have submitted to OMB an information
collection request (ICR) to renew approval of the paperwork
requirements in the regulations under 30 CFR part 203, Relief or
Reduction in Royalty Rates. This notice also provides the public a
second opportunity to comment on the paperwork burden of these
regulatory requirements.
DATES: You must submit comments by November 21, 2012.
ADDRESSES: Submit 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 (1014-0005). Please provide a copy of your comments to
BSEE by any of the means 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, fax (703) 787-1546, or mail
or hand-carry comments to: Department of the Interior; Bureau of Safety
and Environmental Enforcement; Regulations and Standards Branch;
Attention: Nicole Mason; 381 Elden Street, HE3313; Herndon, Virginia
20170-4817. Please reference 1014-0005 in your comment and include your
name and return address.
FOR FURTHER INFORMATION CONTACT: Nicole Mason, Regulation and Standards
Branch, (703) 787-1605, to request additional information about this
ICR. To see a copy of the entire ICR submitted to OMB, go to http://www.reginfo.gov (select Information Collection Review, Currently Under
Review).
SUPPLEMENTARY INFORMATION:
Title: 30 CFR 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
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. 104-134, 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.''
The 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 part 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 estimated
annual hour burden for this information collection is a total of 2,329
hours. The following chart details the individual components and
estimated hour burdens. 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
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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.
Estimated Reporting and Recordkeeping Non-Hour Cost Burden: We have
identified two non-hour costs associated with this information
collection. The estimated non-hour cost burden is $117,441. This
estimate is based on:
Under Sec. 203.3, we charge lessees (respondents) applying for
royalty relief an amount that covers the cost of processing their
applications and auditing financial data when necessary to determine
the proposed development's economic situation. The total annual
estimated cost burden for these fees is $72,441.
Cost of a report prepared by independent certified public
accountant. 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. The BSEE estimates
approximately one submission each year at an average cost of $45,000
per report.
Public Disclosure Statement: The PRA (44 U.S.C. 3501, et seq.,)
provides that an agency may not conduct or sponsor a collection of
information unless it displays a currently valid OMB control number.
Until OMB approves a collection of information, you are not obligated
to respond.
Comments: Section 3506(c)(2)(A) of the PRA (44 U.S.C. 3501, et
seq.,) 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.
To comply with the public consultation process, on May 22, 2012, we
published a Federal Register notice (77 FR 30310) announcing that we
would submit this ICR to OMB for approval. The notice provided the
required 60-day comment period. In addition, Sec. 203.82 provides the
OMB control number for the information collection requirements imposed
by the 30 CFR part 203 regulations. The regulation also informs the
public that they may comment at any time on the collections of
information and provides the address to which they should send
comments. We have received one comment in response to these efforts;
however, the comment did not pertain to the paperwork burden associated
with this IC. The comment was a personal opinion of the bureau location
of where this program resides.
Public Availability of Comments: 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 BSSE Information Collection Clearance Officer: Cheryl
Blundon (703) 787-1607.
Dated: October 9, 2012.
Robert W. Middleton,
Deputy Chief, Office of Offshore Regulatory Programs.
[FR Doc. 2012-25971 Filed 10-19-12; 8:45 am]
BILLING CODE 4310-VH-P