Part-A-ss-EIA-914-2007

SUPPORTING STATEMENT
Form EIA-914
“Monthly Natural Gas Production Report”
OMB No.1905-0205

Introduction
The Energy Information Administration (EIA) of the Department of Energy (DOE)
requests a three- year extension from the Office of Management and Budget (OMB) to
continue Form EIA-914, “Monthly Natural Gas Production Report.”
The purpose of the survey is to collect monthly data on the production of natural gas in
seven geographical areas as follows: Texas (including State Offshore), Louisiana
(including State Offshore), Oklahoma, New Mexico, Wyoming, Gulf of Mexico Federal
Offshore, and Other States (defined as all remaining States, excluding Alaska).
Form EIA-914 survey respondents are a cut-off sample of well operators selected
annually from current commercially available natural gas production information and
operators who report on Form EIA-23, “Annual Survey of Domestic Oil and Gas
Reserves” (OMB No. 1905-0057).
The information collection in this supporting statement has been reviewed in light of
applicable information quality guidelines. It has been determined that the information
has been and will continue to be collected, maintained, and used in a manner consistent
with the OMB, DOE, and EIA information quality guidelines.
A. Justification
Al. Legal Authority
The following provisions provide the authority for this data collection:
Section 13(b) 15 U.S.C. §772 (b) of the Federal Energy Administration Act of
1974, (FEA Act) Public Law 93-275, States:
“All persons owning or operating facilities or business premises who are
engaged in any phase of energy supply or major energy consumption shall
make available to the [Secretary] such information and periodic reports,
records, documents, and other data relating to the purposes of this Act,
including full identification of all data and projections as to source, time,
and methodology of development, as the [Secretary] may prescribe by
regulation or order as necessary or appropriate for the exercise of
functions under the Act.”

The functions of the FEA Act are set forth in Section 5(b), 15 U.S.C. §764(b) of
the Act, which States that the Secretary shall, to the extent he is authorized by
Section 5(a) of the FEA Act,
“(2) assess the adequacy of energy resources to meet demands in the
immediate and longer range future for all sectors of the economy and for
the general public; ...
(4) develop plans and programs for dealing with energy production
shortages;
(5) promote stability in energy prices to the consumer, promote free and
open competition in all aspects of the energy field, prevent unreasonable
profits within the various segments of the energy industry, and promote
free enterprise;
(6) assure that energy programs are designed and implemented in a fair
and efficient manner so as to minimize hardship and inequity while
assuring that the priority needs of the Nation are met; ...
“(9) collect, evaluate, assemble, and analyze energy information on
reserves, production, demand, and related economic data; ...
(12) perform such other functions as may be prescribed by law.”
As the authority for invoking Section 5(b) above, Section 5(a) 15 U.S.C. §764(a)
of the FEA Act States:
“Subject to the provisions and procedures set forth in this Act, the
[Secretary] shall be responsible for such actions as are taken to assure that
adequate provision is made to meet the energy needs of the Nation. To
that end, he shall make such plans and direct and conduct such programs
related to the production, conservation, use, control, distribution,
rationing, and allocation of all forms of energy as are appropriate in
connection with only those authorities or functions...
“(1) specifically transferred to or vested in him by or pursuant to this Act:
...
“(3) otherwise specifically vested in the [Secretary] by the Congress.”
Authority for invoking Section 5(a) of the FEA Act is provided in turn by Section
52, 15 U.S.C. §790a of the FEA Act, which States that, the Administrator of the
EIA:

“... [shall] establish a National Energy Information System ... [which] shall
contain such information as is required to provide a description of and
facilitate analysis of energy supply and consumption...
“(b) the System shall contain such energy information as is necessary to
carry out the Administration's statistical and forecasting activities ... and
such energy information as is required to define and permit analysis of ...
“(1) the institutional structure of the energy supply system including
patterns of ownership and control of mineral fuel and nonmineral energy
resources and the production, distribution, and marketing of mineral fuels
and electricity;…
“(3) the sensitivity of energy resource reserves, exploration, development,
production, transportation, and consumption to economic factors,
environmental constraints, technological improvements, and
substitutability of alternate energy sources; ...
“(5) industrial, labor and regional impacts of changes and patterns of
energy supply and consumption.”
A2. Needs and Uses of Data
The purpose of the Form EIA-914 is to collect and disseminate data on natural gas
production in the Lower-48 States on a timely basis in order to meet EIA’s
mandate and energy data users’ needs. Timely and accurate information on
monthly natural gas production data in the United States is necessary to discern
critical monthly production levels, variations and trends, information that is
crucial for informed decision and policy making before and during peak demand
periods. The information collected through this survey is used by Federal and
State agencies, industry analysts and the general public to monitor natural gas
supplies, and by the Congress for legislative debate.
Using information reported on Form EIA-914, EIA publishes monthly natural gas
production estimates for Total Lower-48 States, Texas (including State Offshore),
Louisiana (including State Offshore), New Mexico, Oklahoma, Wyoming, Gulf of
Mexico Federal Offshore, and Other States (defined as all remaining States,
excluding Alaska, in which natural gas was produced during the report month).
Estimates based on the data reported on Form EIA-914 are published directly on
EIA’s Website, used as the official basis for the marketed and dry natural gas
production published in the Natural Gas Monthly, Monthly Energy Review,
Annual Energy Review, and Natural Gas Annual, and used in the production of
numerous other EIA information products. The data from the EIA-914 are also
used:
•

to develop and make available to the Congress, the States, and the public a
timely and accurate quantified assessment of monthly natural gas

•
•
•

production,
as input to other EIA statistical information products,
to provide natural gas production data to EIA forecasting models, such as
the Short-Term Energy Outlook (STEO) and the National Energy
Modeling System (NEMS), and
to respond to Congressional and internal Departmental requests for
analysis of natural gas policy and regulatory issues.

EIA’s natural gas production estimates are also published in papers, trade
journals, and technical reports as well as cited and republished in reports by
consulting firms and financial institutions. A number of State agencies in Florida,
Indiana, Iowa, New Hampshire, New Mexico, South Dakota, Tennessee, Utah,
Washington, and Wyoming republish EIA data in their reports for the public.
Description of Form EIA-914, “Monthly Natural Gas Production Report”
The data collected consist of natural gas gross withdrawals and natural gas lease
production. Respondents would provide these data for Texas (including State
Offshore), Louisiana (including State Offshore), Oklahoma, New Mexico,
Wyoming, Gulf of Mexico Federal Offshore and Other States (defined as all
remaining States, excluding Alaska, in which the operator produced natural gas
during the report month) - a total of 14 data elements. Since EIA’s main goal is to
have timely overall production information, the agency has not proposed to
collect information on gas used for repressuring and reinjection, gas vented and
flared, fuel used on the lease, or nonhydrocarbon gases removed on the lease.
EIA requests approval of the collection of the following data on the Form EIA914:
1.
2.

3.
4.
5.

Respondent identification data
For the areas of Texas (including State Offshore), Louisiana (including
State Offshore), Oklahoma, New Mexico, Wyoming, Gulf of Mexico
Federal Offshore, and Other States (defined as all remaining States,
excluding Alaska, in which the operator produced natural gas during the
report month):
a.
Natural gas gross withdrawals
b.
Natural gas lease production
Quantities would be published in million cubic feet (MMCF).
Pressure base at which all volumes are reported is 14.73 per square inch
absolute (psia) at 60 degrees Fahrenheit.
Comments.

EIA provides Form-914 respondents detailed instructions, reporting requirements,
and definitions of all elements in the form. The form and instructions (shown in
Appendix A) are designed to allow their efficient use while the respondent is
completing a filing and to lessen respondent burden.

Respondents are expected to complete the EIA-914 survey each month and
submit revisions for prior months if required. Completed EIA-914 surveys are
due 40 days after the conclusion of the report month. Data are submitted by email, facsimile, or the secure file transfer (SFT) system used by EIA. Currently
about 97% of responses are received electronically.
A3. Technological Considerations to Reduce Burden
Although a pdf version may be printed, completed, and mailed or faxed to EIA,
the survey form may be completed using an MS Excel spreadsheet and emailed to
EIA.
A4. Efforts to Identify Duplication and Analysis of Similar Existing
Information
Data similar to the monthly natural gas production information collected on the
Form EIA-914 have been gathered monthly by EIA from States (some of which
report to EIA on a voluntary basis using Form EIA-895, “Monthly and Annual
Quantity and Value of Natural Gas Production Report,”) and the Minerals
Management Service (MMS) in the Department of Interior (for the Gulf of
Mexico Federal Offshore). The States and MMS gather natural gas production
information for various reasons, often for revenue, taxing, or conservation
purposes. Well operators report annual natural gas production to EIA using Form
EIA-23, “Annual Survey of Domestic Oil and Gas Reserves.” EIA has terminated
collection of the monthly Form EIA-895 with the final December 2006 report
month. The annual schedule of Form EIA-895 will continue to be collected.
Before data from Form EIA-914 became available, EIA published estimates of
natural gas production in the United States monthly and annually using data from
Form EIA-895 and MMS. While some of the reporters provided sufficient timely
data, most reported data were not complete or timely enough for direct
dissemination by EIA. Form EIA-914 was created to replace these data with more
timely and more accurate data; that goal has been met.
A5. Impacts on Small Businesses or Other Small Entities
The natural gas well operators in the survey are not small businesses or other
small entities. EIA conducts the survey using a cut-off sample of operators to
help ensure that the impact, if any, on smaller entities is minimized.
A6. Consequences of Less Frequent Reporting
EIA’s goal in creating Form EIA-914 was to reduce the former 120-day time lag
in publication of natural gas monthly production information to about 60 days;
that goal has been achieved. If the collection is not conducted monthly, EIA

would not be able to meet this goal, and couldn’t provide essential natural gas
production information needed in advance of and during the winter heating season
and other periods of high demand. Less frequent reporting would prohibit EIA
from meeting its mandate of providing timely and reliable energy information.
A7. Special Circumstances
Form EIA-914 is collected in a manner consistent with 5 CFR 1320.5 except for
the requirement to report information more often than quarterly. As discussed in
section A2, monthly data on natural gas production are required to meet the
information needs of the public and private sectors.
A8. Summary of Consultation outside the Agency
A request for comments from interested persons was published in the Federal
Register / Vol. 71, No. 241 / Friday, December 15, 2006 / Notices / pp.75518 75520. In that Notice, EIA proposed increasing the seven areas covered by the
survey to include: Alaska, California, Colorado, Kansas, Montana, North Dakota,
and the Pacific Federal Offshore. The Notice, proposed form, and instructions
were posted on EIA’s website. Interested trade and industry associations were
contacted to inform them and their members about the Federal Register Notice,
proposed form, and instructions. In addition, the trade press wrote about the
notice, proposed form, and instructions.
Two responses from the public were received from the following organizations.
1.

2.

Industry Coalition (American Petroleum Institute, Domestic Petroleum
Council, Independent Petroleum Association of America, National Ocean
Industries Association, Natural Gas Supply Association, U.S. Oil and Gas
Association)
Independent Petroleum Association of America (IPAA)

The Industry Coalition urged EIA not to expand the current survey to include 6
more States and the Federal Pacific Offshore and not to eliminate the monthly
EIA-895 survey of States and MMS. The IPAA thought the EIA proposal to
collect natural gas production data from new areas was a possible prelude to
collection of oil production data. The IPAA urged EIA that, were this to occur,
survey respondents should include only those producers with both oil and gas
production. Responses to specific comments are as follows:
Comment: Current reporting already provides high degree of accuracy.
EIA Response: EIA agrees that current reporting provides a high degree
of accuracy in estimating monthly natural gas production.
Comment: The addition of new States adds little value.

EIA Response: EIA agrees that it is not necessary at this time to add new
States to Form EIA-914.
Comment: EIA should not eliminate the monthly state reporting.
EIA Response: As of the December 2006 report month, EIA terminated
the monthly Form EIA-895, “Monthly and Annual Quantity and Value of
Natural Gas Production Report,” because more reliable data are now
available from Form EIA-914. While some Form EIA-895 reporters
provided timely monthly data, most reported EIA-895 monthly data were
not complete or timely enough for direct dissemination by EIA. The
annual EIA-895 survey has been retained.
Comment: Continue coordinating with producing States and the MMS.
EIA Response: EIA will continue coordinating with producing States and
the MMS to improve the quality of natural gas production information.
Comment: If EIA adds crude oil production to Form EIA-914, then EIA should
involve only those producers with both oil and gas production.
EIA Response: This forms clearance request does not propose to collect
monthly crude oil production information.
On May 30, 2007, a Federal Register notice was published (72 FR 103)
announcing the submission of this information collection request to the Office of
Management and Budget.
A9. Payments or Gifts
No payments or gifts are made to the survey respondents.
A10. Provisions for Confidentiality
Form EIA-914 information is collected in accordance with the Confidential
Information Protection provisions of Title 5, Subtitle A, Public Law 107-347. It
will be treated as confidential and used for exclusively statistical purposes unless
the survey respondents provide informed consent for nonstatistical uses. The
pledge made to survey respondents is as follows:
“The information you provide will be used for statistical purposes only. In
accordance with the Confidential Information Protection provisions of
Title 5, Subtitle A, Public Law 107-347 and other applicable Federal laws,
your responses will be kept confidential and will not be disclosed in
identifiable form to anyone other than employees or agents without your
consent. By law, every EIA employee as well as every agent has taken an
oath and is subject to a jail term, a fine, or both if he or she makes public
ANY identifiable information about you.”

A11. Justification for Questions of a Sensitive Nature
The form contains no questions of a sensitive nature.
A12. Estimates of Respondent Burden (Hours and Cost of Hours)
Currently there are 220 filers of Form EIA-914. Each filer is estimated to spend 3
hours per month to report. For a respondent group of 220 operators, the overall
annual respondent burden is estimated to be 7,920 hours per year for 220 monthly
reports. The estimated cost to respondents for the burden hours is estimated to be
$467,280, i.e., 7,920 hours times $59 per hour. (An average cost per hour of $59
is used because that is the average salary plus benefits for an equivalent EIA
employee. EIA assumes that the survey respondent workforce completing surveys
for EIA is comparable to the EIA workforce).
Yearly Burden:
220 respondents responding monthly x 12 responses per year x 3 = 7,920 hours
per year
A13. Estimate of Cost Burden to Respondents - Capital/Start-up Costs and
Operation/
Maintenance/Purchases of Services
There are no additional costs to respondents other than those accounted for in the
burden hours. No capital expenditures, maintenance, or purchases of services
should be required.
A14. Annual Cost to the Government
The average costs including personnel, systems development and maintenance,
data collection, processing, estimation, and dissemination is $425,000 per year.

A15. Changes in Burden or Costs to Respondents
The current burden is 15,517 hours per year. The proposed burden for this request
is estimated at 7,920 hours per year. The decrease in burden is due to a decrease
in respondents from 350 (currently) to 220 respondents (350 - 220 = 130). 130 x
12 x 3 = 4,680 hours (adjustment). Since this is no longer a new survey, there is a
decrease in hours because no startup hours are needed: 350 x 25/3 =2,917 hours
(program change). The total burden has decreased by 7,597 hours (4,680 +
2,917).
A16. Data Collection and Publication

Because of the vital need for timely data, respondents are expected to submit their
survey responses 40 days after the end of the report month. Data gathered
monthly on the Form EIA-914 is reviewed, verified, and aggregated for
dissemination on the EIA Website and in the Natural Gas Monthly and the
Monthly Energy Review. In addition, data from the Form EIA-914 is used in the
Short-Term Energy Outlook and in EIA analytical reports.
Individual company reports are checked for reasonableness by comparing current
reports with prior responses. Mathematical calculations are checked for accuracy
and all data are checked for internal consistency. Respondents are required to
refile reports containing any inconsistencies or errors and to submit revisions
when the value for natural gas lease production changes by more than one percent
for any of the specified geographical areas.
A typical time schedule for the monthly EIA-914 data collection, processing, and
publication is shown below, using data month July 2007 as an example.
•
•

•

Natural gas production data for July 2007 due to EIA by September 10, 2007.
Gross natural gas production estimates for July 2007 are normally ready on
September 20, 2007, although operator follow-up and data revisions
continue.
Gross natural gas production estimates for July 2007 are posted on EIA
Website September 28, 2007 (last working day of the month).

A17. Display of Expiration Date
The expiration date is displayed on all form schedules.
A18. Exceptions to Certification
EIA takes no exception to the certification statement.