[Federal Register Volume 63, Number 219 (Friday, November 13, 1998)]
[Notices]
[Pages 63492-63493]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-30329]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service


Agency Information Collection Activities: Submitted for Office of 
Management and Budget Review; Comment Request

AGENCY: Minerals Management Service, DOI.

ACTION: Notice of information collection solicitation.

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SUMMARY: Under the Paperwork Reduction Act of 1995, the Minerals 
Management Service (MMS) is soliciting comments on an information 
collection, Designation of Royalty Payment Responsibility (OMB Control 
Number 1010-0107, Form MMS-4425), which expires on December 31, 1998.

FORM: MMS-4425, Designation of Royalty Payment Responsibility.

DATES: Written comments should be received on or before January 12, 
1999.

ADDRESSES: Comments sent via the U.S. Postal Service should be sent to 
Minerals Management Service, Royalty Management Program, Rules and 
Publications Staff, P.O. Box 25165, MS 3021, Denver, Colorado 80225-
0165; courier address is Building 85, Room A613, Denver Federal Center, 
Denver, Colorado 80225; e:mail address is RMP.[email protected].

FOR FURTHER INFORMATION CONTACT: Dennis C. Jones, Rules and 
Publications Staff, phone (303) 231-3046, FAX (303) 231-3385, e-mail 
Dennis.C.J[email protected].

SUPPLEMENTARY INFORMATION: In compliance with the Paperwork Reduction 
Act of 1995, Section 3506 (c)(2)(A), we are notifying you, members of 
the public and affected agencies, of this collection of information, 
Designation of Royalty Payment Responsibility, which expires December 
31, 1998. We are requesting OMB approval for a three year extension of 
this existing collection authority. Is this information collection 
necessary for us to properly do our job? Have we accurately estimated 
the industry burden for responding to this collection? Can we enhance 
the quality, utility, and clarity of the information we collect? Can we 
lessen the burden of this information collection on the respondents by 
using automated collection techniques or other forms of information 
technology?
    The Federal Oil and Gas Royalty Simplification and Fairness Act of 
1996 (RSFA), Pub. L 104-185, as corrected by Pub. L. 104-200, 
establishes the owners of operating rights and/or lease record title 
(who are jointly defined as ``lessees'' under RSFA) as responsible for 
making royalty and related payments on a Federal lease. The Secretary 
of the Interior is responsible for the collection of royalties from 
lessees producing minerals from leased Federal lands. The Secretary is 
required by various laws to manage the production of mineral resources 
on Federal onshore and offshore leases, to collect the royalties due, 
and to distribute the funds in accordance with those laws. MMS performs 
the royalty management functions for the Secretary. When a company or 
individual enters into a contract to develop, produce, and dispose of 
minerals from Federal lands, that company or individual agrees to pay 
the United States a share (royalty) of the full value received for the 
minerals taken from leased lands.
    Currently, it is common for a payor rather than a lessee to make 
royalty and related payments on a Federal lease. When a payor pays 
royalties on a

[[Page 63493]]

Federal lease on behalf of a lessee, RSFA requires that the lessee 
certify to MMS, in writing, that a particular payor has been designated 
by the lessee to make such royalty and related payments to MMS on 
behalf of the lessee. RSFA made this payor designation requirement 
effective for lease production beginning September 1, 1996. We may 
require some payors to provide us information regarding the lessees on 
whose behalf they are paying if we need to inform those lessees that 
they must certify to MMS in writing their respective payors as their 
designees. We are asking lessees and payors (designees) to provide data 
required under RSFA so that we can fully implement the Act.
    The Bureau of Land Management (BLM) maintains records of operating 
rights owners and lessees. To facilitate the collection of lessee and 
payor data described above, MMS is discussing with BLM their assistance 
in including language in the lease transfer instrument, when operating 
rights and/or lease record title transfers from one owner to another, 
notifying new operating rights and/or lease record title owners that 
they must file their written designation of payors with MMS. The form 
the lessee must file with MMS, the Designation of Royalty Payment 
Responsibility form, Form MMS-4425, will be available from the MMS Home 
Page on the Internet, from MMS offices directly, and perhaps from BLM 
offices also.
    We estimate that 20,000 Designation of Royalty Payment 
Responsibility forms will be completed annually by 20,000 lessees and 
2,500 payors (designees). We estimate that a lessee and a payor 
(designee) will take \3/4\ hour and \1/4\ hour, respectively, to 
complete this form. These estimates include time for learning 
requirements, research, lessee/payor contact and coordination, and 
preparation and transmission of the information to MMS. We estimate 
that the annual burden is 20,000 hours (20,000 forms  x  \3/4\ hour + 
20,000 forms  x  \1/4\ hour), and that the annual cost is $1,000,000 
(20,000 hours  x  $50).

    Dated: November 6, 1998.
R. Dale Fazio,
Acting Associate Director for Royalty Management.
[FR Doc. 98-30329 Filed 11-12-98; 8:45 am]
BILLING CODE 4310-MR-P