[Federal Register Volume 83, Number 108 (Tuesday, June 5, 2018)]
[Notices]
[Pages 26081-26087]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-12036]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue
[Docket No. ONRR-2011-0025; DS63644000 DR2000000.CH7000 189D0102R2, OMB
Control Number 1012-0003]
Agency Information Collection Activities: 30 CFR Parts 1227,
1228, and 1229, Delegated and Cooperative Activities With States and
Indian Tribes
AGENCY: Office of the Secretary, Office of Natural Resources Revenue
(ONNR), Interior.
ACTION: Notice of information collection; request for comment.
-----------------------------------------------------------------------
SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), ONRR
is inviting comments on the renewal of an information collection
request that we will submit to the Office of Management and Budget
(OMB) for review and approval.
DATES: You must submit your written comments on or before August 6,
2018.
ADDRESSES: You may submit comments on this ICR to ONRR by using one of
the following three methods. Please reference ``ICR 1012-0003'' in your
comments.
Electronically go to http://www.regulations.gov. In the
entry titled ``Enter Keyword or ID,'' enter ``ONRR-2011-0025,'' then
click ``Search.'' Follow the instructions to submit public comments.
ONRR will post all comments.
Email comments to Mr. Luis Aguilar, Regulatory Specialist,
at [email protected].
Hand-carry or mail comments, using an overnight courier
service, to ONRR. Our courier address is Office of Natural Resources
Revenue; Building 85, Entrance N-1, Denver Federal Center; West 6th
Ave. and Kipling St.; Denver, Colorado 80225.
FOR FURTHER INFORMATION CONTACT: For questions on technical issues,
contact Mr. Peter Hanley, STRAC Administration, ONRR, telephone (303)
231-3721 or email to [email protected]. For other questions,
contact Mr. Luis Aguilar, telephone (303) 231-3418, or email to
[email protected]. You may also contact Mr. Aguilar to obtain
copies [free of charge] of (1) the ICR, (2) any associated form, and
(3) the regulations that require us to collect the information. You may
also review the information collection request online at http://www.reginfo.gov/public/do/PRAMain.
SUPPLEMENTARY INFORMATION: In accordance with the Paperwork Reduction
Act of 1995, we provide the general public and other Federal agencies
with an opportunity to comment on new, proposed, revised, and
continuing collections of information. This helps us assess the impact
of our information collection requirements and minimize the public's
reporting burden. It also helps the public understand our information
collection requirements and provide the requested data in the desired
format. We are soliciting comments on the proposed ICR that is
described below. We are especially interested in public comment
addressing the following issues: (1) Is the collection necessary to the
proper functions of the ONRR; (2) will this information be processed
and used in a timely manner; (3) is the estimate of burden accurate;
(4) how might the ONRR enhance the quality, utility, and clarity of the
information to be collected; and (5) how might the ONRR minimize the
burden of this collection on the respondents, including through the use
of information technology. Comments that you submit in response
[[Page 26082]]
to this notice are a matter of public record. We will include or
summarize each comment in our request to OMB to approve this ICR.
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.
Abstract: The Secretary 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. ONRR performs the
royalty management functions and assists the Secretary in carrying out
the Department's responsibilities. We have posted those laws pertaining
to mineral leases on Federal and Indian lands and the OCS at http://www.onrr.gov/Laws_R_D/PubLaws/default.htm.
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 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 the production and
appropriately pays all royalties and other mineral revenues due.
The Federal Oil and Gas Royalty Management Act of 1982 (FOGRMA), as
amended by sections 3, 4, and 8 [for Federal lands] of the Federal Oil
and Gas Royalty Simplification and Fairness Act of 1996, authorizes the
Secretary to develop delegated and cooperative agreements with States
(section 205) and Indian Tribes (section 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 with ONRR and are an integral part of the
overall onshore and offshore compliance effort. The Appropriations Act
of 1992 also authorizes the States and Indian Tribes to perform the
same functions for coal and other solid mineral leases.
Information Collections
This Information Collection Request (ICR) covers the paperwork
requirements in the regulations under title 30, Code of Federal
Regulations (CFR), parts 1227, 1228, and 1229. This collection of
information is necessary in order for States and Indian 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:
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 respective State boundaries. To be considered
for such delegation, States must submit a written proposal to ONRR,
which ONRR must approve. States also must provide quarterly
reimbursement vouchers and reports concerning the activities under the
delegation to ONRR.
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.
Indian Tribes 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 standards of the Secretary to conduct these activities.
The Tribes 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.
The State also must maintain records.
OMB Approval
We will request OMB 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 may also
result in the inability to confirm the accurate royalty value. ONRR
protects any proprietary information received under this collection and
does 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.
Title of Collection: Delegated and Cooperative Activities with
States and Indian Tribes--30 CFR parts 1227, 1228, and 1229.
OMB Control Number: 1012-0003.
Bureau Form Number: None.
Type of Review: Extension of a currently approved collection.
Respondents/Affected Public: States and Tribes.
Total Estimated Number of Annual Respondents: 9 States and 6 Indian
Tribes.
Total Estimated Number of Responses: 449.
Estimated Completion Time per Response: 26.40 hrs.
Total Estimated Number of Annual Burden Hours: 11,851 hours.
Respondent's Obligation: Required to Obtain or Retain a Benefit.
Frequency of Collection: Annual.
Total Estimated Annual Nonhour Burden Cost: We have identified no
``non-hour cost'' burden associated with this collection of
information.
We have not included in our estimates certain requirements
performed in the normal course of business, which are considered usual
and customary. The following table shows the estimated burden hours by
CFR section and paragraph:
[[Page 26083]]
Section A.12 Burden Breakdown
----------------------------------------------------------------------------------------------------------------
Number of
30 CFR section Reporting and recordkeeping Hour burden annual Annual burden
requirements per response responses hours
----------------------------------------------------------------------------------------------------------------
Part 1227--Delegation To States
----------------------------------------------------------------------------------------------------------------
Delegation Proposals
----------------------------------------------------------------------------------------------------------------
1227.103; 107; 109; 110(a) and What must a State's delegation 200 1 200
(b)(1); 110 (c), (d), and proposal contain?.
(e); 111(a) and (b); 805. 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 . . ..
----------------------------------------------------------------------------------------------------------------
Delegation Process
----------------------------------------------------------------------------------------------------------------
1227.110(b)(2)................ (b)(2) If you want to change the 16 9 144
terms of your delegation
agreement for the renewal
period, you must submit a new
delegation proposal under this
part.
----------------------------------------------------------------------------------------------------------------
Existing Delegations
----------------------------------------------------------------------------------------------------------------
Compensation
----------------------------------------------------------------------------------------------------------------
1227.112(d) and (e)........... What compensation will a State 4 60 240
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 . . .
----------------------------------------------------------------------------------------------------------------
States' Responsibilities To Perform Delegated Functions
----------------------------------------------------------------------------------------------------------------
1227.200(a), (b), (c), and (d) What are a State's general 940 9 8,460
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;.
(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 36 108
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 maintaining 1 250 250
adequate reference, royalty,
and production databases . . .
1227.200(g); 301(e)........... (g) Develop annual work plans . 60 9 540
. .
1227.200(h)................... (h) Help ONRR respond to 8 9 72
requests for information from
other Federal agencies,
Congress, and the public . . .
1227.400(a)(4) and (a)(6); What functions may a State 250 1 250
401(d); 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 mustperform . .
.
(4) Timely transmitting
production report or royalty
report data to ONRR and other
affected Federal agencies . . .
[[Page 26084]]
(6) Providing production data or
royalty data to ONRR and other
affected Federal agencies . . .
1227.400(c)................... (c) You must provide ONRR with a 12 1 12
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 . . ..
----------------------------------------------------------------------------------------------------------------
Performance Review
----------------------------------------------------------------------------------------------------------------
Subtotal Burden for 30 CFR Part 1227 386 10,286
----------------------------------------------------------------------------------------------------------------
Part 1228--Cooperative Activities With States and Indian Tribes
----------------------------------------------------------------------------------------------------------------
Subpart C--Oil and Gas, Onshore
----------------------------------------------------------------------------------------------------------------
1228.100(a) and (b); 101(c); Entering into an agreement...... 200 1 200
107(b). (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
. . .
(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 be 80 1 80
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 shall 4 24 96
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.
----------------------------------------------------------------------------------------------------------------
[[Page 26085]]
Subtotal Burden for 30 CFR Part 1228 44 1,546
----------------------------------------------------------------------------------------------------------------
Part 1229--Delegation To States
----------------------------------------------------------------------------------------------------------------
Subpart C--Oil and Gas, Onshore
----------------------------------------------------------------------------------------------------------------
Administration of Delegations
----------------------------------------------------------------------------------------------------------------
1229.100(a)(1) and (a)(2)..... Authorities and responsibilities 1 1 1
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
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 . . .
(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 agreement to 1 1 1
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 from 1 1 1
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 incurred 1 1 1
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 a 1 4 4
voucher for reimbursement of
costs incurred within 30 days
of the end of each calendar
quarter.
----------------------------------------------------------------------------------------------------------------
[[Page 26086]]
Delegation Requirements
----------------------------------------------------------------------------------------------------------------
1229.120...................... Obtaining regulatory and policy 1 1 1
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, work papers, 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 . . .
(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 activities 1 1 1
(a) Each State with a delegation
of authority shall submit
annually to the ONRR an audit
work plan specifically
identifying leases, resources,
companies, and payors scheduled
for audit . . . A State may
request changes to its work
plan . . . 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 activities.. 1 1 1
(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 work papers 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 work paper 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.
[[Page 26087]]
(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............. 1 1 1
The 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 . . .
----------------------------------------------------------------------------------------------------------------
Subtotal Burden for 30 CFR Part 229 19 19
----------------------------------------------------------------------------------------------------------------
Total Burden 449 11,851
----------------------------------------------------------------------------------------------------------------
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.
Public Comment Policy: ONRR will post all comments, including names
and addresses of respondents at http://www.regulations.gov.
ONRR Information Collection Clearance Officer: Luis Aguilar (303)
231-3418.
Authority
The authority for this action is the Paperwork Reduction Act of
1995 (44 U.S.C. 3501 et. seq.).
Gregory J. Gould,
Director for Office of Natural Resources Revenue.
[FR Doc. 2018-12036 Filed 6-4-18; 8:45 am]
BILLING CODE 4335-30-P