30-day notice 1010-0136

Federal Register / Vol. 74, No. 45 / Tuesday, March 10, 2009 / Notices
DEPARTMENT OF THE INTERIOR

DEPARTMENT OF THE INTERIOR

Bureau of Land Management

Bureau of Land Management

[LLUT922000 L13100000 FI000 257A]

[LLAKA01300–14300000.ER0000; AA–
091143]

Notice of Proposed Reinstatement of
Terminated Oil and Gas Leases, Utah
AGENCY: Bureau of Land Management,
Interior
ACTION: Notice of proposed
reinstatement of terminated oil and gas
lease, Utah.
SUMMARY: In accordance with Title IV of
the Federal Oil and Gas Royalty
Management Act (Pub. L. 97–451),
Whiting Oil and Gas Corporation timely
filed a petition for reinstatement of oil
and gas leases UTU76054 for lands in
San Juan County, Utah, and it was
accompanied by all required rentals and
royalties accruing from September 1,
2008, the date of termination.
FOR FURTHER INFORMATION CONTACT:

Kent

Hoffman, Deputy State Director,
Division of Lands and Minerals at (801)
539–4080, or Becky Hammond, Chief,
Branch of Fluid Minerals at (801) 539–
4039.
The
Lessee has agreed to new lease terms for
rentals and royalties at rates of $5 per
acre and 162⁄3 percent, respectively. The
$500 administrative fee for the leases
has been paid and the lessee has
reimbursed the Bureau of Land
Management for the cost of publishing
this notice.
Having met all the requirements for
reinstatement of the leases as set out in
Section 31(d) and (e) of the Mineral
Leasing Act of 1920 (30 U.S.C. 188), the
Bureau of Land Management is
proposing to reinstate the lease,
effective September 1, 2008, subject to
the original terms and conditions of the
leases and the increased rental and
royalty rates cited above.
SUPPLEMENTARY INFORMATION:

Dated: February 20, 2009.
Selma Sierra,
State Director.
[FR Doc. E9–5076 Filed 3–9–09; 8:45 am]
BILLING CODE 4310–DQ–P

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Notice of Realty Action: Recreation
and Public Purposes Lease,
Anchorage, AK
Correction
In notice document E9–4488
beginning on page 9263 in the issue of
Tuesday, March 3, 2009, make the
following correction:
On page 9263, the subject should read
as it appears above.
[FR Doc. Z9–4488 Filed 3–9–09; 8:45 am]
BILLING CODE 1505–01–D

DEPARTMENT OF THE INTERIOR
Minerals Management Service
[Docket No. MMS–2008-MRM–0031]

Agency Information Collection
Activities: Submitted for Office of
Management and Budget Review;
Comment Request
AGENCY: Minerals Management Service
(MMS), Interior.
ACTION: Notice of an extension of a
currently approved information
collection (OMB Control Number 1010–
0136).
SUMMARY: To comply with the
Paperwork Reduction Act of 1995
(PRA), we are notifying the public that
we have submitted to the Office of
Management and Budget (OMB) an
information collection request (ICR) to
renew approval of the paperwork
requirements in the regulations under
title 30 of the Code of Federal
Regulations (CFR) parts 202, 204, and
206. This notice also provides the
public a second opportunity to
comment on the paperwork burden of
these regulatory requirements. We
changed the title of this ICR to reflect
the consolidation of two ICRs relating to
Federal oil and gas valuation. The new
title of this ICR is ‘‘30 CFR Parts 202,
204, and 206, Federal Oil and Gas
Valuation.’’ In this extension, we are
consolidating the following ICRs, which
allow programwide review of Federal
oil and gas leases:
• 1010–0136, previously titled ‘‘30
CFR Part 202—Royalties, Subpart C—
Federal and Indian Oil and Subpart D—
Federal Gas; and Part 206—Product
Valuation, Subpart C—Federal Oil and
Subpart D—Federal Gas;’’ and
• 1010–0155, previously titled ‘‘30
CFR Part 204—Alternatives for Marginal

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10265

Properties, Subpart C—Accounting and
Auditing Relief.’’
DATES: Submit written comments on or
before April 9, 2009.
ADDRESSES: Submit written comments
by either FAX (202) 395–7245 or e-mail
(OIRA_Docket@omb.eop.gov) directly to
the Office of Information and Regulatory
Affairs, OMB, Attention: Desk Officer
for the Department of the Interior (OMB
Control Number 1010–0136).
Please submit copies of your
comments to MMS by one of the
following methods:
• Electronically go to http://
www.regulations.gov. In the ‘‘Comment
or Submission’’ column, enter ‘‘MMS–
2008–MRM–0031’’ to view supporting
and related materials for this ICR. Click
on ‘‘Send a comment or submission’’
link to submit public comments.
Information on using Regulations.gov,
including instructions for accessing
documents, submitting comments, and
viewing the docket after the close of the
comment period, is available through
the site’s ‘‘User Tips’’ link. All
comments submitted will be posted to
the docket.
• Mail comments to Armand
Southall, Regulatory Specialist,
Minerals Management Service, Minerals
Revenue Management, P.O. Box 25165,
MS 300B2, Denver, Colorado 80225.
Please reference ICR 1010–0136 in your
comments.
• Hand-carry comments or use an
overnight courier service. Our courier
address is Building 85, Room A–614,
Denver Federal Center, West 6th Ave.
and Kipling St., Denver, Colorado
80225. Please reference ICR 1010–0136
in your comments.
FOR FURTHER INFORMATION CONTACT:
Armand Southall, telephone (303) 231–
3221, or e-mail
armand.southall@mms.gov. You may
also contact Armand Southall to obtain
copies, at no cost, of (1) the ICR, (2) any
associated forms, and (3) the regulations
that require the subject collection of
information.
SUPPLEMENTARY INFORMATION:
Title: 30 CFR Parts 202, 204, and 206,
Federal Oil and Gas Valuation.
OMB Control Number: 1010–0136.
Bureau Form Number: Form MMS–
4393.
Abstract: The Secretary of the U.S.
Department of the Interior is responsible
for mineral resource development on
Federal and Indian lands and the Outer
Continental Shelf (OCS). The Secretary
is required by various laws to manage
mineral resource production from
Federal and Indian lands and the OCS,
collect the royalties and other mineral
revenues due, and distribute the funds

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Federal Register / Vol. 74, No. 45 / Tuesday, March 10, 2009 / Notices

collected in accordance with applicable
laws. Public laws pertaining to mineral
leases on Federal and Indian lands are
posted on our Web site at http://
www.mrm.mms.gov/Laws_R_D/
PublicLawsAMR.htm.
The Secretary also has a trust
responsibility to manage Indian lands
and seek advice and information from
Indian beneficiaries. The MMS performs
the minerals revenue management
functions and assists the Secretary in
carrying out the Department’s trust
responsibility for Indian lands.
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 leased 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.
We use the information collected in
this ICR to ensure that royalty is
accurately valued and appropriately
paid on oil and gas produced from
Federal onshore and offshore leases.
Please refer to the chart for all reporting
requirements and associated burden
hours. All data submitted is subject to
subsequent audit and adjustment.
Federal Oil and Gas Valuation
Regulations
The valuation regulations at 30 CFR
part 206, subparts C and D, mandate
that companies collect and/or submit
information used to value their Federal
oil and gas, including transportation
and processing regulatory allowance
limit information. Companies report
certain data on Form MMS–2014,
Report of Sales and Royalty Remittance
(OMB Control Number 1010–0140). The
information requested is the minimum
necessary to carry out our mission and
places the least possible burden on
respondents. If MMS does not collect
this information, both Federal and state
governments may suffer a loss of
royalties.
Transportation and Processing
Regulatory Allowance Limits
Lessees may deduct the reasonable,
actual costs of transportation and

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processing from Federal royalties.
Lessees who request approval to exceed
the regulatory allowance limits are
required to supply information in order
to obtain these benefits.
Regulatory Allowance Limit for
Transportation: Under certain
circumstances, lessees are authorized to
deduct from royalty payments the
reasonable, actual costs of transporting
the royalty portion of produced oil and
gas from the lease to a processing or
sales point not in the immediate lease
area. For oil and gas, regulations
establish the allowable limit on
transportation allowance deductions at
50 percent of the value of the oil or gas.
Regulatory Allowance Limit for
Processing: When gas is processed for
the recovery of gas plant products,
lessees may claim a processing
allowance. Regulations establish the
allowable limit on processing allowance
deductions at 662⁄3 percent of the value
of each gas plant product.
Request To Exceed Regulatory
Allowance Limitation, Form MMS–4393
Lessees may request to exceed
regulatory limitations. Upon proper
application from the lessee, we may
approve an oil or gas transportation
allowance in excess of 50 percent or a
gas processing allowance in excess of
662⁄3 percent on Federal leases. To
request permission to exceed a
regulatory allowance limit, lessees must
submit a letter to MMS explaining why
a higher allowance limit is necessary
and provide supporting documentation,
including a completed Form MMS–
4393. On this form, lessees provide the
data necessary to identify the properties
and time periods for which the lessee is
requesting to exceed the regulatory
limits. The MMS verifies that these
costs actually exceed regulatory
allowance limits. Companies report
allowances on Form MMS–4393 for
both Federal and Indian leases. Burden
hours for completion of Form MMS–
4393 for Indian leases are included in
OMB Control Number 1010–0103.
Accounting and Auditing Relief for
Marginal Properties
In 2004, we amended our regulations
to comply with section 7 of the Federal
Oil and Gas Royalty Simplification and
Fairness Act of 1996. The new
regulations provide guidance for lessees
and designees seeking accounting and
auditing relief for qualifying Federal
marginal properties. There are two types

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of relief: (1) Cumulative royalty reports
and payments relief; and (2) other relief.
Under 30 CFR 204.202, MMS requires
notification from lessees who request to
take the cumulative royalty reporting
and payment relief option. Under 30
CFR 204.203, MMS requires a relief
request from lessees who want to obtain
any other type of accounting and
auditing relief.
A state may decide in advance if it
will allow either or both relief options
for each particular year and must notify
the MRM Associate Director, in writing
of its decision. If a state does not notify
MMS in writing, then MMS will deem
that the state has decided not to allow
either or both relief options. After
consulting with the state concerned, we
will approve, deny, or modify requests
in writing. Under the regulations, both
MMS and the state concerned must
approve any accounting and auditing
relief granted for a marginal property.
OMB Approval
We are requesting OMB approval to
continue to collect this information. Not
collecting this information would limit
the Secretary’s ability to discharge his/
her duties and may also result in loss of
royalty payments. Proprietary
information submitted to MMS under
this collection is protected, and no
items of a sensitive nature are included
in this information collection.
For information collections relating to
valuation requirements, responses are
mandatory. For the remaining
information collections in this ICR,
responses are required to obtain
benefits: only those lessees who request
approval to exceed the regulatory limits
on transportation and processing
allowances or to obtain the benefits of
accounting and auditing relief for
marginal properties must supply this
information.
Frequency: Annually and on occasion.
Estimated Number and Description of
Respondents: 94 Federal lessees/
designees and 4 states.
Estimated Annual Reporting and
Recordkeeping ‘‘Hour’’ Burden: 21,055
hours.
We have not included in our
estimates certain requirements
performed in the normal course of
business and considered usual and
customary. The following chart shows
the estimated burden hours by CFR
section and paragraph:

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Federal Register / Vol. 74, No. 45 / Tuesday, March 10, 2009 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS
Citation 30 CFR 202,
204, and 206

Reporting and recordkeeping requirement

Hour burden

Average number of annual
responses

Annual burden
hours

PART 202—ROYALTIES
Subpart C—Federal and Indian Oil
§ 202.101
202.101 .......................

Standards for reporting and paying royalties.

202.101 Oil volumes are to be reported in barrels of clean oil of 42
standard U.S. gallons (231 cubic inches each) at 60 °F.

Burden covered under OMB Control Number
1010–0140.

Subpart D—Federal Gas
§ 202.152
202.152(a) and (b) ......

Standards for reporting and paying royalties on gas.

202.152(a)(1) If you are responsible for reporting production or royalties you must:
(i) Report gas volumes and British thermal unit (Btu) heating
values, if applicable, under the same degree of water saturation;
(ii) Report gas volumes in units of 1,000 cubic feet (mcf); and
(iii) Report gas volumes and Btu heating value at a standard
pressure base of 14.73 pounds per square inch absolute
(psia) and a standard temperature base of 60 °F.
(b) Residue gas and gas plant product volumes shall be reported as specified in this paragraph.

Burden covered under OMB Control Number
1010–0140.

PART 204—ALTERNATIVES FOR MARGINAL PROPERTIES
Subpart C—Accounting and Auditing Relief
§ 204.202

What is the cumulative royalty reports and payments relief option?

204.202(b)(1) ..............

204.202(b) To use the cumulative royalty reports and payments relief option, you must do all of the following:
(1) Notify MMS in writing by January 31 of the calendar year
for which you begin taking your relief.

40

204.202(b)(2) and
(b)(3).

204.202(b)(2) Submit your royalty report and payment * * * by the
end of February of the year following the calendar year for which
you reported annually * * * If you have an estimated payment on
file, you must submit your royalty report and payment by the end
of March of the year following the calendar year for which you reported annually; (3) Use the sales month prior to the month that
you submit your annual report and payment * * * for the entire
previous calendar year’s production for which you are paying annually.

Burden covered under OMB Control Number
1010–0140.

204.202(b)(4), (b)(5),
(c), (d)(1), (d)(2),
(e)(1), and (e)(2).

204.202(b) To use the cumulative royalty reports and payments relief option, you must:

Burden covered under OMB Control Number
1010–0140.

(4) Report one line of cumulative royalty information on Form
MMS–2014 for the calendar year * * * and
(5) Report allowances on Form MMS–2014 on the same annual
basis as the royalties for your marginal property production.
(c) If you do not pay your royalty by the date due in paragraph (b)
of this section, you will owe late payment interest * * * from the
date your payment was due under this section until the date
MMS receives it.
(d) If you take relief you are not qualified for, you may be liable for
civil penalties.
Also you must:
(1) Pay MMS late payment interest determined under 30 CFR
218.54;
(2) Amend your Form MMS–2014.
(e) If you dispose of your ownership interest in a marginal property
for which you have taken relief * * * you must:
(1) Report and pay royalties for the portion of the calendar
year for which you had an ownership interest; and
(2) Make the report and payment by the end of the month after
you dispose of the ownership interest in the marginal property. If you do not report and pay timely, you will owe interest * * * from the date the payment was due.

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40

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Federal Register / Vol. 74, No. 45 / Tuesday, March 10, 2009 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued

Citation 30 CFR 202,
204, and 206

Reporting and recordkeeping requirement
§ 204.203

204.203(b), 204.205(a)
and (b), and
204.206(a)(3)(i) and
(b)(1).

200

40

4

160

1

6

What if a property ceases to qualify for relief obtained under this subpart?

204.209(b) If a property is no longer eligible for relief * * * the relief for the property terminates as of December 31 of that calendar year. You must notify MMS in writing by December 31 that
the relief for the property has terminated.

6

What if a property is approved as part of a nonqualifying agreement?

204.210(c) * * * the volumes on which you report and pay royalty
* * * must be amended to reflect all volumes produced on or allocated to your lease under the nonqualifying agreement as
modified by BLM * * * Report and pay royalties for your production using the procedures in § 204.202(b).
(d) If you owe additional royalties based on the retroactive agreement approval and do not pay your royalty by the date due in
§ 204.202(b), you will owe late payment interest determined
under 30 CFR 218.54 from the date your payment was due
under § 204.202(b)(2) until the date MMS receives it.
§ 204.214(b)

204.214(b)(1) and
(b)(2)

1

200

204.208(c) If a State decides * * * that it will or will not allow one
or both of the relief options * * * within 30 days * * * the State
must:
(1) Notify the Associate Director for Minerals Revenue Management, MMS, in writing, of its intent to allow or not allow
one or both of the relief options.
(d) If a State decides in advance * * * that it will not allow one
or both of the relief options * * * the State must: (1) Notify
the Associate Director for Minerals Revenue Management,
MMS, in writing, of its intent to allow one or both of the relief
options.
(e) If a State does not notify MMS * * * the State will be
deemed to have decided not to allow either of the relief options.

§ 204.210
204.210(c) and (d) ......

Annual burden
hours

May a State decide that it will or will not allow one or both of the relief options under this subpart?

§ 204.209
204.209(b) ..................

Average number of annual
responses

What is the other relief option?

204.203(b) You must request approval from MMS * * * before taking relief under this option.

§ 204.208
204.208 (c)(1), (d)(1),
and (e)

Hour burden

Burden covered under OMB Control Number
1010–0140.

Is minimum royalty due on a property for which I took relief?

204.214(b) If you pay minimum royalty on production from a marginal property during a calendar year for which you are taking cumulative royalty reports and payment relief, and:
(1) The annual payment you owe under this subpart is greater
than the minimum royalty you paid, you must pay the difference between the minimum royalty you paid and your annual payment due under this subpart; or,
(2) The annual payment you owe under this subpart is less
than the minimum royalty you paid, you are not entitled to a
credit because you must pay at least the minimum royalty
amount on your lease each year.

Burden covered under OMB Control Number
1010–0140.

Accounting and Auditing Relief Subtotal

7

PART 206—PRODUCT VALUATION
Subpart C—Federal Oil
§ 206.102
206.102(e)(1)

VerDate Nov<24>2008

How do I calculate royalty value for oil that I or my affiliate sell(s) under an arm’s-length contract?

206.102(e) If you value oil under paragraph (a) of this section: (1)
MMS may require you to certify that your or your affiliate’s arm’slength contract provisions include all of the consideration the
buyer must pay, either directly or indirectly, for the oil.

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AUDIT PROCESS. See note.

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Federal Register / Vol. 74, No. 45 / Tuesday, March 10, 2009 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Citation 30 CFR 202,
204, and 206

Reporting and recordkeeping requirement
§ 206.103

206.103(a) ..................

206.103(a)(4) ..............

206.103(b)(1) ..............

206.103(b)(1)(ii) ..........

206.103(b)(4) ..............

206.103(c)(1) ..............

206.103(e)(1) and
(e)(2).

206.105 .......................

206.105 If you determine the value of your oil under this subpart,
you must retain all data relevant to the determination of royalty
value.

2

16

400

2

800

400

2

800

400

2

800

50

10

500

330

2

660

880

3

2,640

8

1

8

2

660

How do I determine a transportation allowance under an arm’s-length transportation contract?

206.110(a) * * * You must be able to demonstrate that you or your
affiliate’s contract is at arm’s length.

206.110(d)(3) ..............

206.110(d) If your arm’s-length transportation contract includes
more than one liquid product, and the transportation costs attributable to each product cannot be determined * * * (3) You may
propose to MMS a cost allocation method.

15:20 Mar 09, 2009

8

When may I take a transportation allowance in determining value?

206.110(a) ..................

VerDate Nov<24>2008

225

How do I request a value determination?

206.109(c) Limits on transportation allowances. (2) You may ask
MMS to approve a transportation allowance in excess of the limitation in paragraph (c)(1) of this section * * * Your application for
exception (using Form MMS–4393, Request to Exceed Regulatory Allowance Limitation) must contain all relevant and supporting documentation necessary for MMS to make a determination.

§ 206.110

5

Burden covered under OMB Control Number
1010–0140.

206.107(a) You may request a value determination from MMS.
§ 206.109

206.109(c)(2) ..............

45

What records must I keep to support my calculations of value under this subpart?

§ 206.107
206.107(a) ..................

Annual burden
hours

How do I value oil that is not sold under an arm’s-length contract?

206.103 This section explains how to value oil that you may not
value under § 206.102 or that elect under § 206.102(d) to value
under this section. First determine whether paragraph (a), (b), or
(c) of this section applies to production from your lease, or
whether you may apply paragraph (d) or (e) with MMS approval.
(a) Production from leases in California or Alaska. Value is the average of the daily mean ANS spot prices published in any MMSapproved publication during the trading month most concurrent
with the production month.
(1) To calculate the daily mean spot price.
(2) Use only the days.
(3) You must adjust the value.
206.103(a)(4) After you select an MMS-approved publication, you
may not select a different publication more often than once every
2 years,
206.103(b) Production from leases in the Rocky Mountain Region.
* * * (1) If you have an MMS-approved tendering program, you
must value oil.
206.103(b)(1)(ii) If you do not have an MMS-approved tendering
program, you may elect to value your oil under either paragraph
(b)(2) or (b)(3) of this section.
206.103(b)(4) If you demonstrate to MMS’s satisfaction that paragraphs (b)(1) through (b)(3) of this section result in an unreasonable value for your production as a result of circumstances regarding that production, the MMS Director may establish an alternative valuation method.
206.103(c) Production from leases not located in California, Alaska
or the Rocky Mountain Region. (1) Value is the NYMEX price,
plus the roll, adjusted for applicable location and quality differentials and transportation costs under § 206.112.
206.103(e) Production delivered to your refinery and the NYMEX
price or ANS spot price is an unreasonable value.
(1) * * * you may apply to the MMS Director to establish a value
representing the market at the refinery if:
(2) You must provide adequate documentation and evidence demonstrating the market value at the refinery.
§ 206.105

Average number of annual
responses

Hour burden

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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued

Citation 30 CFR 202,
204, and 206

Reporting and recordkeeping requirement

206.110(e) ..................

206.110(e) If your arm’s-length transportation contract includes
both gaseous and liquid products, and the transportation costs
attributable to each product cannot be determined from the contract, then you must propose an allocation procedure to MMS.

206.110(e)(1) and
(e)(2).

206.110(e)(1) * * * If MMS rejects your cost allocation, you must
amend your Form MMS–2014.
(2) You must submit your initial proposal, including all available
data, within 3 months after first claiming the allocated deductions
on Form MMS–2014.

206.110(g)(2) ..............

206.110(g) If your arm’s-length sales contract includes a provision
reducing the contract price by a transportation factor, * * *

Hour burden

Average number of annual
responses

Annual burden
hours

1

330

330

Burden covered under OMB Control Number
1010–0140.

330

1

330

(2) You must obtain MMS approval before claiming a transportation
factor in excess of 50 percent of the base price of the product.
§ 206.111

How do I determine a transportation allowance if I do not have an arm’s-length transportation contract or arm’s-length tariff?

206.111(g) ..................

206.111(k)(2) ..............
206.111(l)(1) and (l)(3)

206.111(l)(2) ...............

§ 206.112
206.112(a)(1)(ii) ..........

206.112(a)(1)(ii) ..........

206.112(a)(3) and
(a)(4).

206.112(b)(3) ..............

VerDate Nov<24>2008

206.111(g) To compute depreciation, you may elect to use either
* * * After you make an election, you may not change methods
without MMS approval.
206.111(k)(2) You may propose to MMS a cost allocation method
on the basis of the values.
206.111(l)(1) Where you transport both gaseous and liquid products through the same transportation system, you must propose
a cost allocation procedure to MMS * * * (3) You must submit
your initial proposal, including all available data, within 3 months
after first claiming the allocated deductions on Form MMS–2014.
206.111(l)(2) * * * If MMS rejects your cost allocation, you must
amend your Form MMS–2104 for the months that you used the
rejected method and pay any additional royalty and interest due.

330

1

330

330

1

330

330

1

330

Burden covered under OMB Control Number
1010–0140.

What adjustments and transportation allowances apply when I value oil production from my lease using
NYMEX prices or ANS spot prices?
206.112(a)(1)(ii) * * * under an exchange agreement that is not at
arm’s length, you must obtain approval from MMS for a location
and quality differential.
206.112(a)(1)(ii) * * * If MMS prescribes a different differential, you
must apply * * * You must pay any additional royalties owed
* * * plus the late payment interest from the original royalty due
date, or you may report a credit.
206.112(a)(3) If you transport or exchange at arm’s length (or both
transport and exchange) at least 20 percent, but not all, of your
oil produced from the lease to a market center, determine the adjustment between the lease and the market center for the oil that
is not transported or exchanged (or both transported and exchanged) to or through a market center as follows:
(4) If you transport or exchange (or both transport and exchange)
less than 20 percent of your crude oil produced from the lease
between the lease and a market center, you must propose to
MMS an adjustment between the lease and the market center for
the portion of the oil that you do not transport or exchange (or
both transport and exchange) to a market center * * * If MMS
prescribes a different adjustment.
* * * You must pay any additional royalties owed * * * plus the
late payment interest from the original royalty due date, or you
may report a credit.
206.112(b)(3) * * * you may propose an alternative differential to
MMS * * * If MMS prescribes a different differential * * * You
must pay any additional royalties owed * * * plus the late payment interest from the original royalty due date, or you may report a credit.

15:20 Mar 09, 2009

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330

330

2

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330

4

1,320

330

4

1,320

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Federal Register / Vol. 74, No. 45 / Tuesday, March 10, 2009 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Citation 30 CFR 202,
204, and 206

Reporting and recordkeeping requirement

206.112(c)(2) ..............

206.112(c)(2) * * * If quality bank adjustments do not incorporate
or provide for adjustments for sulfur content, you may make sulfur adjustments, based on the quality of the representative crude
oil at the market center, of 5.0 cents per one-tenth percent difference in sulfur content, unless MMS approves a higher adjustment.
§ 206.114

206.114 .......................

206.115(c) ...................

206.115(a) You or your affiliate must use a separate entry on Form
MMS–2014 to notify MMS of an allowance based on transportation costs you or your affiliate incur.
206.115(c) MMS may require you or your affiliate to submit all data
used to calculate the allowance deduction.

206.152(b)(1)(i) * * * The lessee shall have the burden of demonstrating that its contract is arm’s-length (iii) * * * When MMS
determines that the value may be unreasonable, MMS will notify
the lessee and give the lessee an opportunity to provide written
information justifying the lessee’s value.

206.152(b)(2) ..............

206.152(b)(2) * * * The lessee must request a value determination
in accordance with paragraph (g) of this section for gas sold pursuant to a warranty contract;

206.152(b)(3) ..............

206.152(b)(3) MMS may require a lessee to certify that its arm’slength contract provisions include all of the consideration to be
paid by the buyer, either directly or indirectly, for the gas.
206.152(e)(1) Where the value is determined pursuant to paragraph (c) of this section, the lessee shall retain all data relevant
to the determination of royalty value.
206.152(e)(2) Any Federal lessee will make available upon request
to the authorized MMS or State representatives, to the Office of
the Inspector General of the department of the Interior, or other
person authorized to receive such information, arm’s-length sales
and volume data for like-quality production sold, purchased or
otherwise obtained by the lessee from the field or area or from
nearby fields or areas.

206.152(e)(3) ..............
206.152(g) ..................

206.153(b)(2) ..............

VerDate Nov<24>2008

AUDIT PROCESS. See note.

Burden covered under OMB Control Number
1010–0140.
AUDIT PROCESS. See note.

AUDIT PROCESS. See note.

330

PO 00000

330

AUDIT PROCESS. See note.

Burden covered under OMB Control Number
1010–0140.
AUDIT PROCESS. See note.

330

2

660

660

3

1,980

1

330

AUDIT PROCESS. See note.

(iii) * * * When MMS determines that the value may be unreasonable, MMS will notify the lessee and give the lessee an opportunity to provide written information justifying the lessee’s value.
206.153(b)(2) * * * The lessee must request a value determination
in accordance with paragraph (g) of this section for gas sold pursuant to a warranty contract;

Jkt 217001

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Valuation standards-processed gas.

206.153(b)(1)(i) * * * The lessee shall have the burden of demonstrating that its contract is arm’s-length.

15:20 Mar 09, 2009

660

Burden covered under OMB Control Number
1010–0140.

206.152(e)(3) A lessee shall notify MMS if it has determined value
pursuant to paragraph (c)(2) or (c)(3) of this section.
206.152(g) The lessee may request a value determination from
MMS * * * The lessee shall submit all available data relevant to
its proposal.
§ 206.153

206.153(b)(1)(i) and
(b)(1)(iii).

2

330

Subpart D—Federal Gas
Valuation standards-unprocessed gas.

206.152(b)(1)(i) and
(b)(1)(iii).

206.152(e)(2) ..............

Annual burden
hours

What are my reporting requirements under a non-arm’s-length transportation arrangement?

§ 206.152

206.152(e)(1) ..............

Average number of annual
responses

What are my reporting requirements under an arm’s-length transportation contract?

206.114 You or your affiliate must use a separate entry on Form
MMS–2014 to notify MMS of an allowance based on transportation costs you or your affiliate incur.
MMS may require you or your affiliate to submit arm’s-length transportation contracts, production agreements, operating agreements, and related documents.

§ 206.115
206.115(a) ..................

Hour burden

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Federal Register / Vol. 74, No. 45 / Tuesday, March 10, 2009 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued

Citation 30 CFR 202,
204, and 206

Reporting and recordkeeping requirement

206.153(b)(3) ..............

206.153(b)(3) MMS may require a lessee to certify that its arm’slength contract provisions include all of the consideration to be
paid by the buyer, either directly or indirectly, for the residue gas
or gas plant product.
206.153(e)(1) Where the value is determined pursuant to paragraph (c) of this section, the lessee shall retain all data relevant
to the determination of royalty value.
206.153(e)(2) Any Federal lessee will make available upon request
to the authorized MMS or State representatives, to the Office of
the Inspector General of the Department of the Interior, or other
persons authorized to receive such information, arm’s-length
sales and volume data for like-quality residue gas and gas plant
products sold, purchased or otherwise obtained by the lessee
from the same processing plant or from nearby processing
plants.

206.153(e)(1) ..............
206.153(e)(2) ..............

206.153(e)(3) ..............
206.153(g) ..................

206.154(c)(4) ..............

206.157(a)(1)(iii) .........

206.157(a)(2)(ii) ..........
206.157(a)(3) ..............

206.157(a)(5) ..............

206.156(c)(3) Upon request of a lessee, MMS may approve a
transportation allowance deduction in excess of the limitation prescribed by paragraphs (c)(1) and (c)(2) of this section * * * An
application for exception (using Form MMS–4393, Request to Exceed Regulatory Allowance Limitation) shall contain all relevant
and supporting documentation necessary for MMS to make a determination.

660

330

4

1,320

330

1

330

8

3

24

AUDIT PROCESS. See note.
Burden covered under OMB Control Number
1010–0140.
AUDIT PROCESS. See note.

206.157(a)(2)(ii) * * * the lessee may propose to MMS a cost allocation method on the basis of the values of the products transported.
206.157(a)(3) If an arm’s-length transportation contract includes
both gaseous and liquid products and the transportation costs attributable to each cannot be determined from the contract, the
lessee shall propose an allocation procedure to MMS * * * The
lessee shall submit all relevant data to support its proposal.
206.157(a)(5) * * * The transportation factor may not exceed 50
percent of the base price of the product without MMS approval.
206.157(b) Non-arm’s-length or no contract. (1) The lessee must
claim a transportation allowance by reporting it on a separate line
entry on the Form MMS–2014.

206.157(b)(2)(iv) and
(b)(2)(iv)(A).

206.157(b)(2)(iv) After a lessee has elected to use either method
for a transportation system, the lessee may not later elect to
change to the other alternative without approval of the MMS. (A)
After an election is made, the lessee may not change methods
without MMS approval.

Jkt 217001

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Determination of transportation allowances.

206.157(a) Arm’s-length transportation contracts. (1)(i) * * * The
lessee shall have the burden of demonstrating that its contract is
arm’s-length.
The lessee must claim a transportation allowance by reporting it on
a separate line entry on the Form MMS–2014.
206.157(a)(1)(iii) * * * When MMS determines that the value of the
transportation may be unreasonable, MMS will notify the lessee
and give the lessee an opportunity to provide written information
justifying the lessee’s transportation costs

15:20 Mar 09, 2009

330

Transportation allowances—general.

206.157(b)(1) ..............

VerDate Nov<24>2008

AUDIT PROCESS. See note.

206.154(c)(4) * * * A lessee may request MMS approval of other
methods for determining the quantity of residue gas and gas
plant products allocable to each lease.

§ 206.157
206.157(a)(1)(i) ...........

Burden covered under OMB Control Number
1010–0140.

Determination of quantities and qualities for computing royalties.

§ 206.156
206.156(c)(3) ..............

Annual burden
hours

AUDIT PROCESS. See note.

206.153(e)(2) A lessee shall notify MMS if it has determined any
value pursuant to paragraph (c)(2) or (c)(3) of this section.
206.153(g) The lessee may request a value determination from
MMS * * * The lessee shall submit all available data relevant to
its proposal.
§ 206.154

Average number of annual
responses

Hour burden

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1

330

330

1

330

100

1

100

Burden covered under OMB Control Number
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100

10273

Federal Register / Vol. 74, No. 45 / Tuesday, March 10, 2009 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Citation 30 CFR 202,
204, and 206

Reporting and recordkeeping requirement

206.157(b)(3)(i) ...........

206.157(b)(3)(i) * * * Except as provided in this paragraph, the lessee may not take an allowance for transporting a product which
is not royalty bearing without MMS approval.
206.157(b)(3)(ii) * * * the lessee may propose to the MMS a cost
allocation method on the basis of the values of the products
transported.
206.157(b)(4) Where both gaseous and liquid products are transported through the same transportation system, the lessee shall
propose a cost allocation procedure to MMS. * * * The lessee
shall submit all relevant data to support its proposal.
206.157(b)(5) You may apply for an exception from the requirement
to compute actual costs under paragraphs (b)(1) through (b)(4) of
this section.

206.157(b)(3)(ii) ..........

206.157(b)(4) ..............

206.157(b)(5) ..............

206.157(c)(1)(i) ...........

206.157(c)(1)(ii) ..........

206.157(c)(2)(i) ...........

206.157(c)(2)(iii) .........
206.157(e)(2), (e)(3),
and (f)(1).

Average number of annual
responses

Annual burden
hours

100

1

100

100

1

100

100

1

100

100

1

100

Hour burden

206.157(c) Reporting Requirements. (1) Arm’s-length contracts. (i)
You must use a separate entry on Form MMS–2014 to notify
MMS of a transportation allowance.
206.157(c)(1)(ii) The MMS may require you to submit arm’s-length
transportation contracts, production agreements, operating agreements, and related documents.
206.157(c)(2) Non-arm’s-length or no contract. (i) You must use a
separate entry on Form MMS–2014 to notify MMS of a transportation allowance.
206.157(c)(2)(iii) The MMS may require you to submit all data used
to calculate the allowance deduction.
206.157(e) Adjustments. (2) For lessees transporting production
from onshore Federal leases, the lessee must submit a corrected
Form MMS–2014 to reflect actual costs, together with any payment, in accordance with instructions provided by MMS.

Burden covered under OMB Control Number
1010–0140.
AUDIT PROCESS. See note.

Burden covered under OMB Control Number
1010–0140.
AUDIT PROCESS. See note.
Burden covered under OMB Control Number
1010–0140.

(3) For lessees transporting gas production from leases on the
OCS, if the lessee’s estimated transportation allowance exceeds
the allowance based on actual costs, the lessee must submit a
corrected Form MMS–2014 to reflect actual costs, together with
its payments, in accordance with instructions provided by MMS.
(f) Allowable costs in determining transportation allowances. * * *
(1) Firm demand charges paid to pipelines * * * if you receive a
payment or credit from the pipeline for penalty refunds, rate case
refunds, or other reasons, you must reduce the firm demand
charge claimed on the Form MMS–2014 by the amount of that
payment. You must modify Form MMS–2014 by the amount received or credited for the affected reporting period and pay any
resulting royalty and late payment interest due.
§ 206.158
206.158(c)(3) ..............

206.158(d)(2)(i) ...........

206.158(d)(2)(ii) ..........

206.158(c)(3) Upon request of a lessee, MMS may approve a processing allowance in excess of the limitation prescribed by paragraph (c)(2) of this section * * * An application for exception
(using Form MMS–4393, Request to Exceed Regulatory Allowance Limitation) shall contain all relevant and supporting documentation for MMS to make a determination. * * *
206.158(d)(2)(i) If the lessee incurs extraordinary costs for processing gas production from a gas production operation, it may
apply to MMS for an allowance for those costs.
206.158(d)(2)(ii) * * * to retain the authority to deduct the allowance the lessee must report the deduction to MMS in a form and
manner prescribed by MMS.
§ 206.159

206.159(a)(1)(i) ...........

VerDate Nov<24>2008

Processing allowances-general.

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96

40

2

80

Burden covered under OMB Control Number
1010–0140.

Determination of processing allowances.

206.159(a) Arm’s-length processing contracts.(1)(i) * * * The lessee shall have the burden of demonstrating that its contract is
arm’s-length.
The lessee must claim a processing allowance by reporting it on a
separate line entry on the Form MMS–2014.

15:20 Mar 09, 2009

8

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AUDIT PROCESS. See note.

Burden covered under OMB Control Number
1010–0140.

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Federal Register / Vol. 74, No. 45 / Tuesday, March 10, 2009 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued

Citation 30 CFR 202,
204, and 206

Reporting and recordkeeping requirement

206.159(a)(1)(iii) .........

206.159(a)(1)(iii) * * * When MMS determines that the value of the
processing may be unreasonable, MMS will notify the lessee and
give the lessee an opportunity to provide written information justifying the lessee’s processing costs.

206.159(a)(3) ..............

206.159(a)(3) If an arm’s-length processing contract includes more
than one gas plant product and the processing costs attributable
to each product cannot be determined from the contract, the lessee shall propose an allocation procedure to MMS. * * * The
lessee shall submit all relevant data to support its proposal.

206.159(b)(1) ..............

206.159(b) Non-arm’s-length or no contract. (1) * * * The lessee
must claim a processing allowance by reflecting it as a separate
line entry on the Form MMS–2014.

206.159(b)(2)(iv) and
(b)(2)(iv)(A).

206.159(b)(2)(iv) * * * When a lessee has elected to use either
method for a processing plant, the lessee may not later elect to
change to the alternative without approval of the MMS.(A) * * *
After an election is made, the lessee may not change methods
without MMS approval.
206.159(b)(4) A lessee may apply to MMS for an exception from
the requirements that it compute actual costs in accordance with
paragraphs (b)(1) through (b)(3) of this section.

206.159(b)(4) ..............

206.159(c)(1)(i) ...........
206.159(c)(1)(ii) ..........
206.159(c)(2)(i) ...........
206.159(c)(2)(iii) .........
206.159(e)(2) and
(e)(3).

Hour burden

206.159(c) Reporting requirements-(1) Arm’s-length contracts. (i)
The lessee must notify MMS of an allowance based on incurred
costs by using a separate line entry on the Form MMS–2014.
206.159(c)(1)(ii) The MMS may require that a lessee submit arm’slength processing contracts and related documents.
206.159(c)(2) Non-arm’s-length or no contract.(i) The lessee must
notify MMS of an allowance based on incurred costs by using a
separate line entry on the Form MMS–2014.
206.159(c)(2)(iii) Upon request by MMS, the lessee shall submit all
data used to prepare the allowance deduction.
206.159(e) Adjustments.

Average number of annual
responses

Annual burden
hours

AUDIT PROCESS. See note.

330

1

330

Burden covered under OMB Control Number
1010–0140.
100

1

100

100

1

100

Burden covered under OMB Control Number
1010–0140.
AUDIT PROCESS. See note.
Burden covered under OMB Control Number
1010–0140.
AUDIT PROCESS. See note.
Burden covered under OMB Control Number
1010–0140.

(2) For lessees processing production from onshore Federal
leases, the lessee must submit a corrected Form MMS–2014 to
reflect actual costs, together with any payment, in accordance
with instructions provided by MMS.(3) For lessees processing
gas production from leases on the OCS, if the lessee’s estimated
processing allowance exceeds the allowance based on actual
costs, the lessee must submit a corrected Form MMS–2014 to
reflect actual costs, together with its payment, in accordance with
instructions provided by MMS.
Oil and Gas Valuation Subtotal ............................................................................................

........................

91

20,649

TOTAL ...........................................................................................................................

........................

98

21,055

Note: AUDIT PROCESS—The Office of Regulatory Affairs determined that the audit process is exempt from the Paperwork Reduction Act of
1995 because MMS staff asks non-standard questions to resolve exceptions.

Estimated Annual Reporting and
Recordkeeping ‘‘Non-hour’’ Cost
Burden: We have identified no ‘‘nonhour’’ cost burden associated with the
collection of information.
Public Disclosure Statement: The PRA
(44 U.S.C. 3501 et seq.) provides that 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.
Comments: Section 3506(c)(2)(A) of
the PRA requires each agency to ‘‘* * *

VerDate Nov<24>2008

15:20 Mar 09, 2009

Jkt 217001

provide 60-day notice in the Federal
Register * * * 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
proposed collection of information is
necessary for the agency to perform its
duties, including whether the
information is useful; (b) evaluate the
accuracy of the agency’s estimate of the
burden of the proposed collection of
information; (c) enhance the quality,

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usefulness, and clarity of the
information to be collected; and (d)
minimize the burden on the
respondents, including the use of
automated collection techniques or
other forms of information technology.
To comply with the public
consultation process, we published a
notice in the Federal Register on August
15, 2008 (73 FR 47969), announcing that
we would submit this ICR to OMB for
approval. The notice provided the
required 60-day comment period. We

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Federal Register / Vol. 74, No. 45 / Tuesday, March 10, 2009 / Notices
received no comments in response to
the notice.
If you wish to comment in response
to this notice, you may send your
comments to the offices listed under the
ADDRESSES section of this notice. The
OMB has up to 60 days to approve or
disapprove the information collection
but may respond after 30 days.
Therefore, to ensure maximum
consideration, OMB should receive
public comments by April 9, 2009.
Public Comment Policy: We will post
all comments in response to this notice
at http://www.mrm.mms.gov/Laws_R_D/
FRNotices/FRInfColl.htm. We also will
post all comments, including names and
addresses of respondents, at http://
www.regulations.gov. Before including
your address, phone number, e-mail
address, or other personal identifying
information in your comment, be
advised 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 from
public view your personal identifying
information, we cannot guarantee that
we will be able to do so.
MMS Information Collection
Clearance Officer: Arlene Bajusz (202)
208–7744.
Dated: March 4, 2009.
Gregory J. Gould,
Associate Director for Minerals Revenue
Management.
[FR Doc. E9–5077 Filed 3–9–09; 8:45 am]
BILLING CODE 4310–MR–P

DEPARTMENT OF THE INTERIOR
Office of Surface Mining Reclamation
and Enforcement
Notice of Proposed Information
Collection for 1029–0061
AGENCY: Office of Surface Mining
Reclamation and Enforcement.
ACTION: Notice and request for
comments.
SUMMARY: In compliance with the
Paperwork Reduction Act of 1995, the
Office of Surface Mining Reclamation
and Enforcement (OSM) is announcing
its intention to request approval to
continue the collection of information
under 30 CFR Part 795—Permanent
Regulatory Program—Small Operator
Assistance Program (SOAP). This
information collection activity was
previously approved by the Office of
Management and Budget (OMB), and
assigned clearance number 1029–0061.
DATES: Comments on the proposed
information collection activity must be

VerDate Nov<24>2008

15:20 Mar 09, 2009

Jkt 217001

received by May 11, 2009, to be assured
of consideration.
ADDRESSES: Comments may be mailed to
John A. Trelease, Office of Surface
Mining Reclamation and Enforcement,
1951 Constitution Ave., NW., Room
202—SIB, Washington, DC 20240.
Comments may also be submitted
electronically to jtrelease@osmre.gov.
FOR FURTHER INFORMATION CONTACT: To
receive a copy of the information
collection request contact John Trelease,
at (202) 208–2783 or at the e-mail
address listed above.
SUPPLEMENTARY INFORMATION: OMB
regulations at 5 CFR 1320, which
implement provisions of the Paperwork
Reduction Act of 1995 (Pub. L. 104–13),
require that interested members of the
public and affected agencies have an
opportunity to comment on information
collection and recordkeeping activities
[see 5 CFR 1320.8(d)]. This notice
identifies an information collection that
OSM will be submitting to OMB for
renewed approval. This collection is
contained in 30 CFR Part 795—
Permanent Regulatory Program Small
Operator Assistance Program. OSM will
request a 3-year term of approval for this
information collection activity.
Comments are invited on: (1) The
need for the collection of information
for the performance of the functions of
the agency; (2) the accuracy of the
agency’s burden estimates; (3) ways to
enhance the quality, utility and clarity
of the information collection; and (4)
ways to minimize the information
collection burden on respondents, such
as use of automated means of collection
of the information. A summary of the
public comments will accompany
OSM’s submission of the information
collection request to OMB.
Before including your address, phone
number, e-mail 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.
This notice provides the public with
60 days in which to comment on the
following information collection
activity:
Title: 30 CFR Part 795—Permanent
Regulatory Program—Small Operator
Assistance Program.
OMB Control Number: 1029–0061.
SUMMARY: This information collection
requirement is needed to provide
assistance to qualified small mine

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10275

operators under section 507(c) of Public
Law 95–87. The information requested
will provide the regulatory authority
with data to determine the eligibility of
the applicant and the capability and
expertise of laboratories to perform
required tasks.
Bureau Form Number: FS–6.
Description of Respondents: Small
operators, laboratories, and State
regulatory authorities.
Frequency of Collection: Once per
application.
Total Annual Responses: 4.
Total Annual Burden Hours: 93
hours.
Dated: March 3, 2009.
John R. Craynon,
Chief, Division of Regulatory Support.
[FR Doc. E9–4939 Filed 3–9–09; 8:45 am]
BILLING CODE 4310–05–M

INTERNATIONAL BOUNDARY AND
WATER COMMISSION, UNITED
STATES AND MEXICO
United States Section; Notice of
Availability of a Final Environmental
Assessment and Finding of No
Significant Impact for Improvements to
the Rio Grande Rectification Project in
El Paso and Hudspeth Counties, TX
AGENCY: United States Section,
International Boundary and Water
Commission, United States and Mexico
(USIBWC).
ACTION: Notice of Availability of Final
Environmental Assessment (EA) and
Finding of No Significant Impact
(FONSI).
SUMMARY: Pursuant to Section 102(2)(c)
of the National Environmental Policy
Act (NEPA) of 1969, the Council on
Environmental Quality Final
Regulations (40 CFR Parts 1500 through
1508), and the United States Section,
International Boundary and Water
Commission’s (USIBWC) Operational
Procedures for Implementing Section
102 of NEPA, published in the Federal
Register September 2, 1981, (46 FR
44083); the USIBWC hereby gives notice
of availability of the Final
Environmental Assessment and FONSI
for Improvements to the Rio Grande
Rectification Project (RGRP) located in
El Paso and Hudspeth Counties, Texas
are available.
FOR FURTHER INFORMATION CONTACT: Lisa
Santana, Environmental Protection
Specialist, Environmental Management
Division, United States Section,
International Boundary and Water
Commission; 4171 N. Mesa, C–100; El
Paso, Texas 79902. Telephone: (915)

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