[Federal Register Volume 80, Number 99 (Friday, May 22, 2015)]
[Notices]
[Pages 29740-29743]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-12304]
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DEPARTMENT OF THE INTERIOR
Bureau of Safety and Environmental Enforcement (BSEE)
[Docket ID BSEE-2015-0008; OMB Control Number 1014-0005; 15XE1700DX
EEEE500000 EX1SF0000.DAQ000]
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 Relief or Reduction in
Royalty Rates.
DATES: You must submit comments by July 21, 2015.
ADDRESSES: You may submit comments by either of the following methods
listed below.
Electronically go to http://www.regulations.gov. In the
Search box, enter BSEE-2015-0008 then click search. Follow the
instructions to submit public comments and view all related materials.
We will post all comments.
Email [email protected]. Mail or hand-carry comments
to the Department of the Interior; Bureau of Safety and Environmental
Enforcement; Regulations and Standards Branch; ATTN: Cheryl Blundon;
45600 Woodland Road, Sterling, VA 20166. Please reference ICR 1014-0005
in your comment and include your name and return address.
FOR FURTHER INFORMATION CONTACT: Cheryl Blundon, Regulations and
Standards Branch at (703) 787-1607 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, 43 U.S.C.
1337, as amended by the OCS Deep Water Royalty Relief Act (DWRRA),
Public Law 104-58 and the Energy Policy Act of 2005, Public Law 109-
058, 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, Federal policy and statute require us to recover the
cost of services that confer special benefits to identifiable non-
Federal recipients. The Independent Offices Appropriation Act (31
U.S.C. 9701), Office of Management and Budget (OMB) Circular A-25, and
the Omnibus Appropriations Bill (Pub. L. 104-134, 110 Stat. 1321, April
26, 1996) authorize the Bureau of Safety and Environmental Enforcement
(BSEE) to collect these fees to reimburse us for the cost to process
applications or assessments.
Regulations at 30 CFR part 203 implement these statutes and policy
and require respondents to pay a fee to request royalty relief. The OMB
approved the information collection burden under this collection 1014-
0005. Section 203.3(a) 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.''
This authority and responsibility are among those delegated BSEE.
The regulations at 30 CFR part 203, are the subject of this collection.
This request also covers the related Notices to Lessees and Operators
(NTLs) that BSEE issues to clarify, supplement, or provide additional
guidance on some aspects
We use 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 impact on 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 Federal 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.
No questions of a sensitive nature are asked. BSEE will protect
information from respondents considered proprietary under the Freedom
of Information Act (5 U.S.C. 552) and DOI's implementing regulations
(43 CFR 2) and under regulations at 30 CFR 203.61, How do I assess my
chances for getting relief? and 30 CFR 250.197, Data and information to
be made available to the public or for limited inspection. Responses
are mandatory or are required to obtain or retain a benefit.
Frequency: On occasion or as a result of situations encountered
depending upon the requirements.
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 23,329 hours
and $117,441 non-hour cost burdens. In this submission, we are
requesting a total of 724 burden hours and $27,950 non-hour cost
burdens. The following chart 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.
[[Page 29741]]
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Application/audit fees (rounded)
-----------------------------------------------------------
Citation 30 CFR 203 and Reporting or Annual
related NTL(s) recordkeeping Average number of annual burden
requirement + Hour burden responses hours
(rounded)
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2; 3; 4; 70................. These sections contain general references to submitting reports, 0
applications, requests, copies, demonstrating qualifications, for
BSEE approval--burdens covered under specific requirements.
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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 1................ 1 request.................. 1
recoup royalties from
qualified ultra-deep
wells.
35(a); 44(a); 47............ Notify BSEE of intent 1................ 2 notifications............ 2
to begin drilling and
depth of target.
35(c), (d); 44(b), (d), (e). Notify BSEE that 2................ 2 notifications............ 4
production has begun,
request confirmation
of the size of RSV--
provide any/all
supporting
documentation.
35(d); 44(e)................ Request to extend the 4................ 1 request.................. 4
deadline for
beginning production
with required
supporting
documentation.
41(d)....................... Request a refund of or 1................ 1 request.................. 1
recoup royalties from
qualified wells >200
meters but <400
meters.
35(a); 44(a); 47(a)......... Notify BSEE of intent 1................ 2 notifications............ 2
to begin drilling.
35(c), (d); 44(b), (d), (e). Notify BSEE that 2................ 2 notifications............ 4
production has begun,
request confirmation
of the size of RSV,
provide any/all
supporting
documentation (i.e.,
request to extend
deadline, credible
activity schedule,
etc).
46.......................... Provide data from well 8................ 1 response................. 8
to confirm and attest
well drilled was an
unsuccessful
certified well with
supporting
documentation and
request supplement
(RSS).
-----------------------------------------------------------
49(b)....................... Notify BSEE or BSEE SOL requires that this reg text stay for legacy
decision to exercise purposes only. Last time any respondent could use was
option to replace one 2004; hence, no burden.
set of deep gas
royalty suspension
terms for another set
of such terms.
-----------------------------------------------------------
Subtotal................ ...................... ................. 8 responses................ 20
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End of Life and Special Royalty Relief *
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51; 83; 84; NTL............. Application--leases 100.............. 1 application every 10 10
that generate years.
earnings that cannot
sustain continued
production (end-of-
life lease); required
supporting
documentation;
include payment
confirmation receipt.
-----------------------------------------------------------
application 1/10 x $8,000 = $800 *
audit 1/10 x $12,500 = $1,250.
-----------------------------------------------------------
52.......................... Demonstrate ability to 1................ 1 response................. 1
qualify/requalify for
royalty relief or to
re-qualify.
55.......................... Renounce relief 1................ 1 letter every 10 years.... 1
arrangement (end-of-
life) (seldom, if
ever will be used;
minimal burden to
prepare letter).
80; NTL..................... Application--apart 250.............. 1 application every 10 25
from formal programs years.
for royalty relief
for marginal
producing lease
(Special Case
Relief); required
supporting
documentation;
include payment
confirmation receipt.
-----------------------------------------------------------
application 1/10 x $8,000 ** = $ 800.
audit 1/10 x $12,500 = $1,250.
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80; NTL..................... Application--apart 1,000............ 1 application every 10 100
from formal programs years.
for royalty relief
for marginal
expansion project or
marginal non-
producing lease
(Special Case
Relief); required
supporting
documentation;
include payment
confirmation receipt.
-----------------------------------------------------------
application 1/10 x $19,500 ** = $ 1,950.
audit 1/10 x $18,750 = $1,875.
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Subtotal................ ...................... ................. 2 responses (rounded)...... 137
----------------------------------------
$7,925 fees
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[[Page 29742]]
CPA Report
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81; 83-90; 63............... Required reports; Burden included with applications. 0
extension
justification.
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1 CPA report x $45,000/10 each report = $4,500.
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Subtotal................ ...................... ................. 1 response................. $4,500
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Deep Water Royalty Relief Act (DWRAA)
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61; 62; 64; 65; 71; 83; 85- Application--preview 900.............. 1 application every 10 90
89;. assessment (seldom if years.
NTL......................... ever will be used as
applicants generally
opt for binding
determination by BSEE
instead) and required
supporting
documentation;
include payment
confirmation receipt.
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application 1/10 x $28,500 = $2,850.
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62; 64; 65; 71; 83; 85-89; Application--leases in 2,000............ 1 application every 10 200
NTL. designated areas of years.
GOM deep water
acquired in lease
sale before 11/28/95
or after 11/28/00 and
are producing (deep
water expansion
project); required
supporting
documentation;
include payment
confirmation receipt.
-----------------------------------------------------------
application 1/10 x $19,500 = $1,950.
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62; 64; 65; 203.71; 81; 83; Application--leases in 2,000............ 1 application every 10 200
85-89; NTL. designated areas of years.
deep water GOM,
acquired in lease
sale before 11/28/95
or after 11/28/00
that have not
produced (pre-act or
post-2000 deep water
leases); required
supporting
documentation;
include payment
confirmation receipt.
-----------------------------------------------------------
application 1/10 x $34,000 = $3,400 *
audit 1/10 x $37,500 = $3,750.
-----------------------------------------------------------
69; NTL..................... Application--short 40............... 1 application every 10 4
form to add or assign years.
pre-Act lease and
required supporting
documentation;
include payment
confirmation receipt.
-----------------------------------------------------------
application 1/10 x $1,000 = $100.
-----------------------------------------------------------
70; 81; 90; 76(c), (e); NTL. Submit post-production 50............... 1 report * every 10 years.. 5
development report;
extension
justification. #
Reserve right to
audit (1 audit every
6 years) after
production starts to
confirm cost
estimates of the
application; include
payment confirmation
receipt.
-----------------------------------------------------------
#1 audit 1/10 x $18,750 = $1,875.
-----------------------------------------------------------
74; 75; 76(d); NTL.......... Redetermination and 500.............. 1 redetermination every 10 50
required supporting years.
documentation;
include payment
confirmation receipt.
-----------------------------------------------------------
application 1/10 x $16,000 = $1,600 *
-----------------------------------------------------------
77.......................... Renounce relief 1................ 1 letter every 10 years.... 1
arrangement (deep
water) (seldom, if
ever will be used;
minimal burden to
prepare letter).
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79.......................... Request This was a regulatory requirement for leases 0
reconsideration of issued prior to 1995.
BSEE field
designation.
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79(c); 76(b)................ Request extension of 2................ 1 request every 10 years... 1
deadline to start
construction.
----------------------------------------------------------------------------------------------------------------
81; 83-90................... Required reports; Burden included with applications. 0
extension
justification.
-----------------------------------------------------------
Subtotal................ ...................... ................. 3 responses................ 551
----------------------------------------
$15,525 fees
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[[Page 29743]]
Recordkeeping
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81(d)....................... Retain supporting cost 8................ 2 recordkeepers............ 16
records for post-
production
development/
fabrication reports
(records retained as
usual/customary
business practice;
minimal burden to
make available at
BSEE request).
-----------------------------------------------------------
Subtotal................ ...................... ................. 2 recordkeepers............ 16
-----------------------------------------------------------
Total Annual Burden..... ...................... ................. 16 Responses............... 724
-----------------------------------------------------------
$27,950 Fees
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+ In the future, BSEE may require electronic filing of some submissions.
* 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 several non-hour cost burdens for this collection. 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. As discussed in section A.1, these
fees may be revised as necessary to recover our costs in processing
royalty relief applications.
This submission includes these audits and their associated fees.
Since there have been no applications approved in the last 14 years
under our formal programs for deepwater royalty relief or end of life,
so their estimated number of submittals is one every 10 years; but we
include the audit and their respective fees due to the potential
situation arising.
We estimate this cost burden to be approximately $23,450 annually.
Refer to the chart in Section A.12 of this supporting statement for a
breakdown.
Under Sec. 203.81, a report prepared by an independent certified
public accountant (CPA) 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 an average
cost for a report is $45,000 and that one CPA certification, during the
information collection extension period, will be necessary if the
applications are approved. This annual cost burden is $45,000/10 years
= $4,500.
Therefore, the total of the two burdens under Section A.13 (a) and
(b) is estimated at $27,950. We have not identified any other non-hour
cost burdens 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 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: 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.
Dated: May 14, 2015.
Douglas W. Morris,
Chief, Office of Offshore Regulatory Programs.
[FR Doc. 2015-12304 Filed 5-21-15; 8:45 am]
BILLING CODE 4310-VH-P