60-day Register Notice

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Federal Register / Vol. 81, No. 108 / Monday, June 6, 2016 / Notices
population of wolves on the island for
at least the next 20 years, which is the
anticipated life of the plan. The wolf
population range and number of
breeding pairs to be maintained on the
island would be determined based on
best available science and professional
judgement. This action would occur as
soon as possible following a signed
record of decision. Under Alternative D,
the NPS would not take immediate
action and would continue current
management, allowing natural processes
to continue. One or more resource
indicators and thresholds would be
developed to evaluate the condition of
key resources, which could include
moose or vegetation-based parameters. If
a threshold is met, wolves would be
brought to Isle Royale as a one-time
event (per alternative B) or through
multiple introductions (per alternative
C). The NPS will not select an
alternative for implementation until
after a final EIS is completed.
Given the revised scope of the EIS,
actions to manage moose, such as
culling or translocation of moose, as
well as actions to manage vegetation,
such as fire, direct restoration, or other
tools, will not be considered in this EIS.
After a decision is made regarding
whether and how to bring wolves to Isle
Royale, the NPS will monitor conditions
on the island, and will initiate
additional planning processes to
address other aspects of the island
ecosystem, such as the moose
population and forest community, if
such planning processes are deemed
necessary.
All comments received during the
scoping period that was announced in
the July 2015 NOI are available online
at http://parkplanning.nps.gov/
ISROwolves and will be considered. If
you would like to provide additional
comments regarding the revised scope
of the plan, you may do so through the
following methods.
The preferred method for submitting
comments is on the NPS PEPC Web site
at http://parkplanning.nps.gov/
ISROwolves. You may also mail or
hand-deliver your comments to
Superintendent Phyllis Green, Isle
Royale National Park, ISRO Wolves, 800
East Lakeshore Drive, Houghton,
Michigan 49931–1896. The NPS will
consider all additional comments
received or postmarked no later than 30days from the date this NOI is published
in the Federal Register. Comments
submitted after that date will be
considered to the extent practicable.
Comments will not be accepted by
fax, email, or any other way than those
specified above. Bulk comments in any
format (hard copy or electronic)

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submitted on behalf of others will not be
accepted. 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.
Cameron H. Sholly,
Regional Director, Midwest Region.
[FR Doc. 2016–13184 Filed 6–3–16; 8:45 am]
BILLING CODE 4310–MA–P

36325

2. Email comments to Mr. Luis
Aguilar, Regulatory Specialist, at
luis.aguilar@onrr.gov.
3. Hand-carry or mail comments,
using an overnight courier service, to
ONRR. Our courier address is Building
85, Room A–614, Denver Federal
Center, West 6th Ave. and Kipling St.,
Denver, Colorado 80225.
FOR FURTHER INFORMATION CONTACT: For
any questions, contact Mr. Luis Aguilar,
telephone (303) 231–3418, or email at
luis.aguilar@onrr.gov. You may also
contact Mr. Aguilar to obtain copies, at
no cost, of (1) the ICR, (2) any associated
forms, and (3) the regulations that
require us to collect the information.
SUPPLEMENTARY INFORMATION:
I Abstract

DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue
[Docket No. ONRR–2012–0006; DS63642000
DR2PS0000.CH7000 167D0102R2]

Agency Information Collection
Activities: Federal Oil and Gas
Valuation; Comment Request
Office of Natural Resources
Revenue (ONRR), Interior.
ACTION: Notice of an extension.
AGENCY:

To comply with the
Paperwork Reduction Act of 1995
(PRA), ONRR is inviting comments on a
collection of information requests that
we will submit to the Office of
Management and Budget (OMB) for
review and approval. This Information
Collection Request (ICR) covers the
paperwork requirements in the
regulations under title 30, Code of
Federal Regulations (CFR), parts 1202,
1204, and 1206. This ICR pertains to
Federal oil and gas valuation
regulations, which include
transportation and processing regulatory
allowance limits and accounting and
auditing relief for marginal properties.
Also, there is one form (ONRR–4393)
associated with this information
collection.
DATES: Submit written comments on or
before August 5, 2016.
ADDRESSES: You may submit comments
on this ICR to ONRR by using one of the
following three methods (please
reference ‘‘ICR 1012–0005’’ in your
comments):
1. Electronically go to http://
www.regulations.gov. In the entry titled
‘‘Enter Keyword or ID,’’ enter ‘‘ONRR–
2012–0005’’ and then click ‘‘Search.’’
Follow the instructions to submit public
comments. ONRR will post all
comments.
SUMMARY:

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The Secretary of the United States
Department of the Interior is responsible
for mineral resource development on
Federal and Indian lands and the Outer
Continental Shelf (OCS). The Secretary’s
responsibility, according to various
laws, is 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 collected under
those laws. We have posted those laws
pertaining to mineral leases on Federal
and Indian lands and the OCS at http://
www.onrr.gov/Laws_R_D/PubLaws/
default.htm.
The Secretary also has a trust
responsibility to manage Indian lands
and seek advice and information from
Indian beneficiaries. ONRR performs the
minerals revenue management functions
for the Secretary and assists the
Secretary in carrying out the
Department’s trust responsibility for
Indian lands.
You can find the information
collections covered in this ICR at 30
CFR parts:
• 1202, subparts C and D, which
pertain to Federal oil and gas royalties.
• 1204, subpart C, which pertains to
accounting and auditing relief for
marginal properties.
• 1206, subparts C and D, which
pertain to Federal oil and gas product
valuation.
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
mineral lease laws require the lessee, or
his designee, to report various kinds of
information to the lessor relative to the

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Federal Register / Vol. 81, No. 108 / Monday, June 6, 2016 / Notices

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.
Information Collections
ONRR uses the information that we
collect in this ICR to ensure that lessees
accurately value and appropriately pay
royalties 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.
A. Federal Oil and Gas Valuation
Regulations
The valuation regulations at 30 CFR
part 1206, subparts C and D, mandate
that companies collect and submit
information used to value their Federal
oil and gas, including (1) transportation
and processing allowances and (2)
regulatory allowance limit information.
Companies report certain data on form
ONRR–2014, Report of Sales and
Royalty Remittance. The information
that we request is the minimum
necessary to carry out our mission and
places the least possible burden on
respondents. If ONRR does not collect
this information, both Federal and State
governments may incur a loss of
royalties.
Transportation and Processing
Regulatory Allowance Limits: Lessees
may deduct actual costs of
transportation and processing from
Federal royalties. The lessees report
these allowances on form ONRR–2014.
For oil and gas, regulations establish the

allowable limit on transportation
allowance deductions at 50 percent of
the value of the oil or gas. For gas only,
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 ONRR–
4393: Lessees may request to exceed
regulatory limitations. Upon proper
application from the lessee, ONRR may
approve oil or gas transportation
allowance in excess of 50 percent or gas
processing allowance in excess of 662⁄3
percent on Federal leases. Lessees use
form ONRR–4393 for both Federal and
Indian leases to request to exceed
allowance limitations. This ICR covers
only Federal leases; therefore, we have
not included burden hours of form
ONRR–4393 for Indian leases in this
ICR. We include burden hours for form
ONRR–4393 for Indian leases in OMB
Control Number 1012–0002.
B. 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. These regulations
provide guidance for lessees and
designees seeking accounting and
auditing relief for qualifying Federal
marginal properties. Under the
regulations, both ONRR and the State
concerned must approve any relief
granted for a marginal property.
OMB Approval
We will request OMB approval to
continue to collect, from companies,
lessees, and designees, information used

(1) to value their Federal oil and gas,
including (a) transportation and
processing allowances and (b)
regulatory allowance limit information
and (2) to request accounting and
auditing relief approval for qualifying
Federal marginal properties. If ONRR
does not collect this information, this
would limit the Secretary’s ability to
discharge fiduciary duties and may also
result in loss of royalty payments.
ONRR protects the proprietary
information that we receive, and we do
not collect items of a sensitive nature.
ONRR requires lessees to respond to
information collections relating to
valuation requirements.
II. Data
Title: 30 CFR parts 1202, 1204, and
1206, Federal Oil and Gas Valuation.
OMB Control Number: 1012–0005.
Bureau Form Number: Form ONRR–
4393.
Frequency: Annually and on occasion.
Estimated Number and Description of
Respondents: 120 Federal lessees/
designees and 7 States for Federal oil
and gas.
Estimated Annual Reporting and
Recordkeeping ‘‘Hour’’ Burden: 9,518
hours.
We have not included in our
estimates certain requirements
performed in the normal course of
business and considered as usual and
customary. We display the estimated
annual burden hours by CFR section
and paragraph in the following chart:

RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS
30 CFR 1202, 1204, 1206,
and 1210

Reporting and recordkeeping requirement

Hour burden

Average
number of
annual
responses

Annual burden
hours

PART 1202—ROYALTIES
Subpart C—Federal and Indian Oil
1202.101 .................................

Standards for reporting and paying royalties .........................
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
1012–0004.

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Subpart D—Federal Gas
1202.152(a) and (b) ................

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Standards for reporting and paying royalties on gas .............
(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

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Federal Register / Vol. 81, No. 108 / Monday, June 6, 2016 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
30 CFR 1202, 1204, 1206,
and 1210

Reporting and recordkeeping requirement

Hour burden

Average
number of
annual
responses

Annual burden
hours

(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 . . .
PART 1204—ALTERNATIVES FOR MARGINAL PROPERTIES

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Subpart C—Accounting and Auditing Relief
1204.202(b)(1) ........................

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

1204.202(b)(2) and (b)(3) .......

(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
1012–0004.

1204.202(b)(4), (b)(5), (c),
(d)(1), (d)(2), (e)(1), and
(e)(2).

(b)(4) Report one line of cumulative royalty information on
Form ONRR–2014 for the calendar year . . . And
(5) Report allowances on Form ONRR–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 ONRR receives it . . .
(d) If you take relief you are not qualified for, you may be
liable for civil penalties.
Also you must: (1) Pay ONRR late payment interest determined under 30 CFR 1218.54 . . . (2) Amend your Form
ONRR–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
. . .

Burden covered under OMB Control Number
1012–0004.

1204.203(b), 1204.205(a) and
(b), and 1204.206(a)(3)(i)
and (b)(1).

What is the other relief option?
(b) You must request approval from ONRR . . . before taking relief under this option.

200

1

200

1204.208(c)(1), (d)(1), and (e)

May a State decide that it will or will not allow one or both
of the relief options under this subpart?
(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 Director for Office of Natural
Resources Revenue, 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 Director for Office of Natural Resources Revenue, in writing, of its intent to allow one or both of the
relief options . . .

40

7

280

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Federal Register / Vol. 81, No. 108 / Monday, June 6, 2016 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued

30 CFR 1202, 1204, 1206,
and 1210

Reporting and recordkeeping requirement

Average
number of
annual
responses

Hour burden

Annual burden
hours

(e) If a State does not notify ONRR . . . the State will be
deemed to have decided not to allow either of the relief
options . . .
1204.209(b) .............................

What if a property ceases to qualify for relief obtained under
this subpart?
(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 ONRR in writing by December 31 that the relief for the property has terminated . . .

1204.210(c) and (d) ................

What if a property is approved as part of anonqualifying
agreement?
(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 § 1204.202(b).
(d) If you owe additional royalties based on the retroactive
agreement approval and do not pay your royalty by the
date due in § 1204.202(b), you will owe late payment interest determined under § 1218.54 from the date your
payment was due under § 1204.202(b)(2) until the date
ONRR receives it.

Burden covered under OMB Control Number
1012–0004.

1204.214(b)(1) and (b)(2) .......

Is minimum royalty due on a property for which I took relief?
(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
1012–0004.

Accounting and Auditing
Relief Subtotal.

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

6

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

1

10

6

526

Part 1206—Product Valuation

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Subpart C—Federal Oil
1206.102(e)(1) ........................

How do I calculate royalty value for oil that I or my affiliate
sell(s) under an arm’s-length contract?
(e) If you value oil under paragraph (a) of this section: (1)
ONRR may require you to certify that your or your affiliate’s arm’s-length contract provisions include all of the
consideration the buyer must pay, either directly or indirectly, for the oil.

1206.103(a)(1), (a)(2), and
(a)(3).

How do I value oil that is not sold under an arm’s-length
contract?
This section explains how to value oil that you may not
value under § 1206.102 or that you elect under
§ 1206.102(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 ONRR approval.
(a) Production from leases in California or Alaska. Value is
the average of the daily mean ANS spot prices published
in any ONRR-approved 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 . . .

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AUDIT PROCESS. See note.

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Federal Register / Vol. 81, No. 108 / Monday, June 6, 2016 / Notices

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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Average
number of
annual
responses

30 CFR 1202, 1204, 1206,
and 1210

Reporting and recordkeeping requirement

1206.103(a)(4) ........................

(a)(4) After you select an ONRR-approved publication, you
may not select a different publication more often than
once every 2 years, . . .

8

2

16

1206.103(b)(1) ........................

(b) Production from leases in the Rocky Mountain Region
. . .
(1) If you have an ONRR-approved tendering program, you
must value oil . . .

400

2

800

1206.103(b)(1)(ii) ....................

(b)(1)(ii) If you do not have an ONRR-approved tendering
program, you may elect to value your oil under either
paragraph (b)(2) or (b)(3) of this section . . .

400

2

800

1206.103(b)(4) ........................

(4) If you demonstrate to ONRR’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 ONRR Director
may establish an alternative valuation method.

400

2

800

1206.103(c)(1) ........................

(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
§ 1206.112.

50

10

500

1206.103(e)(1) and (e)(2) .......

(e) Production delivered to your refinery and the NYMEX
price or ANS spot price is an unreasonable value. (1)
. . . you may apply to the ONRR Director to establish a
value (2) You must provide adequate documentation and
evidence demonstrating the market value at the refinery.
. . . representing the market at the refinery if: . . .

330

2

660

1206.105 .................................

What records must I keep to support my calculations of
value under this subpart?
If you determine the value of your oil under this subpart,
you must retain all data relevant to the determination of
royalty value . . .

1206.107(a) .............................

How do I request a value determination?
(a) You may request a value determination from ONRR
. . .

40

10

400

1206.109(c)(2) ........................

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

8

2

16

1206.110(a) .............................

How do I determine a transportation allowance under an
arm’s-length transportation contract?
(a) . . . You must be able to demonstrate that your or your
affiliate’s contract is at arm’s length. . . .

1206.110(d)(3) ........................

(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 ONRR a cost allocation method
. . .

20

2

40

1206.110(e) .............................

(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 ONRR.

20

1

20

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Hour burden

Annual burden
hours

Burden covered under OMB Control Number
1012–0004.

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AUDIT PROCESS. See note.

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Federal Register / Vol. 81, No. 108 / Monday, June 6, 2016 / Notices

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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Average
number of
annual
responses

30 CFR 1202, 1204, 1206,
and 1210

Reporting and recordkeeping requirement

1206.110(e)(1) and (e)(2) .......

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

1206.110(g)(2) ........................

(g) If your arm’s-length sales contract includes a provision
reducing the contract price by a transportation factor, . . .
(2) You must obtain ONRR approval before claiming a
transportation factor in excess of 50 percent of the base
price of the product.

5

1

5

1206.111(g) .............................

How do I determine a transportation allowance if I do not
have an arm’s-length transportation contract or arm’slength tariff?
(g) To compute depreciation, you may elect to use either
. . . After you make an election, you may not change
methods without ONRR approval . . .

30

1

30

1206.111(k)(2) ........................

(k)(2) You may propose to ONRR a cost allocation method
on the basis of the values . . .

30

1

30

1206.111(l)(1) and (l)(3) .........

(l)(1) Where you transport both gaseous and liquid products
through the same transportation system, you must propose a cost allocation procedure to ONRR . . .
(3) You must submit your initial proposal, including all available data, within 3 months after first claiming the allocated deductions on Form ONRR–2014.

20

1

20

1206.111(l)(2) .........................

(l)(2) . . . If ONRR rejects your cost allocation, you must
amend your Form ONRR–2104 for the months that you
used the rejected method and pay any additional royalty
and interest due.

1206.112(a)(1)(ii) ....................

What adjustments and transportation allowances apply
when I value oil production from my lease using NYMEX
prices or ANS spot prices?
(a)(1)(ii) . . . under an exchange agreement that is not at
arm’s length, you must obtain approval from ONRR for a
location and quality differential . . .

80

1

80

1206.112(a)(1)(ii) ....................

(a)(1)(ii) . . . If ONRR 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 . . .

20

2

40

1206.112(a)(3) and (a)(4) .......

(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 ONRR 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 ONRR 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
. . .

80

4

320

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hours

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Burden covered under OMB Control Number
1012–0004.

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Federal Register / Vol. 81, No. 108 / Monday, June 6, 2016 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Average
number of
annual
responses

30 CFR 1202, 1204, 1206,
and 1210

Reporting and recordkeeping requirement

1206.112(b)(3) ........................

(b)(3) . . . you may propose an alternative differential to
ONRR. . . . If ONRR 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 . . .

80

4

320

1206.112(c)(2) ........................

(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 onetenth percent difference in sulfur content, unless ONRR
approves a higher adjustment.

80

2

160

1206.114 .................................

What are my reporting requirements under an arm’s-length
transportation contract?
You or your affiliate must use a separate entry on Form
ONRR–2014 to notify ONRR of an allowance based on
transportation costs you or your affiliate incur.

Hour burden

Annual burden
hours

Burden covered under OMB Control Number
1012–0004.

ONRR may require you or your affiliate to submit arm’slength transportation contracts, production agreements,
operating agreements, and related documents . . .

AUDIT PROCESS. See note.

1206.115(a) .............................

What are my reporting requirements under a non-arm’slength transportation arrangement?
(a) You or your affiliate must use a separate entry on Form
ONRR–2014 to notify ONRR of an allowance based on
transportation costs you or your affiliate incur.

Burden covered under OMB Control Number
1012–0004.

1206.115(c) .............................

(c) ONRR may require you or your affiliate to submit all
data used to calculate the allowance deduction . . .

AUDIT PROCESS. See note.

sradovich on DSK3TPTVN1PROD with NOTICES

Subpart D—Federal Gas
1206.152(b)(1)(i) and (b)(1)(iii)

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

1206.152(b)(2) ........................

(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; . . .

1206.152(b)(3) ........................

(b)(3) ONRR 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.

AUDIT PROCESS. See note.

1206.152(e)(1) ........................

(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 . . .

Burden covered under OMB Control Number
1012–0004.

1206.152(e)(2) ........................

206.152(e)(2) Any Federal lessee will make available upon
request to the authorized ONRR 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 likequality production sold, purchased or otherwise obtained
by the lessee from the field or area or from nearby fields
or areas.

AUDIT PROCESS. See note.

1206.152(e)(3) ........................

(e)(3) A lessee shall notify ONRR if it has determined value
pursuant to paragraph (c)(2) or (c)(3) of this section . . .

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80

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80

100

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sradovich on DSK3TPTVN1PROD with NOTICES

RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Average
number of
annual
responses

30 CFR 1202, 1204, 1206,
and 1210

Reporting and recordkeeping requirement

1206.152(g) .............................

(g) The lessee may request a value determination from
ONRR . . . The lessee shall submit all available data relevant to its proposal . . .

1206.153(b)(1)(i) and (b)(1)(iii)

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

1206.153(b)(2) ........................

(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; . . .

1206.153(b)(3) ........................

(b)(3) ONRR 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.

AUDIT PROCESS. See note.

1206.153(e)(1) ........................

(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 . . .

Burden covered under OMB Control Number
1012–0004.

1206.153(e)(2) ........................

(e)(2) Any Federal lessee will make available upon request
to the authorized ONRR 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.

AUDIT PROCESS. See note.

1206.153(e)(3) ........................

(e)(2) A lessee shall notify ONRR if it has determined any
value pursuant to paragraph (c)(2) or (c)(3) of this section
. . .

10

2

20

1206.153(g) .............................

206.153(g) The lessee may request a value determination
from ONRR . . . The lessee shall submit all available
data relevant to its proposal . . .

80

15

1,200

1206.154(c)(4) ........................

Determination of quantities and qualities for computing royalties.
(c)(4) . . . A lessee may request ONRR approval of other
methods for determining the quantity of residue gas and
gas plant products allocable to each lease . . .

40

1

40

1206.156(c)(3) ........................

Transportation allowances—general ......................................
(c)(3) Upon request of a lessee, ONRR 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
ONRR–4393, Request to Exceed Regulatory Allowance
Limitation) must contain all relevant and supporting documentation necessary for ONRR to make a determination.
. . .

40

7

280

1206.157(a)(1)(i) .....................

Determination of transportation allowances ...........................
(a) Arm’s-length transportation contracts. (1)(i) . . . The lessee shall have the burden of demonstrating that its contract is arm’s-length . . .

Hour burden

The lessee must claim a transportation allowance by reporting it on a separate line entry on the Form ONRR–2014.

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40

Annual burden
hours
5

200

AUDIT PROCESS. See note.

80

1

80

AUDIT PROCESS. See note.

Burden covered under OMB Control Number
1012–0004.

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sradovich on DSK3TPTVN1PROD with NOTICES

RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Average
number of
annual
responses

30 CFR 1202, 1204, 1206,
and 1210

Reporting and recordkeeping requirement

1206.157(a)(1)(iii) ...................

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

1206.157(a)(2)(ii) ....................

(a)(2)(ii) . . . the lessee may propose to ONRR a cost allocation method on the basis of the values of the products
transported . . .

40

1

40

1206.157(a)(3) ........................

(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 ONRR . . . The lessee shall submit all relevant data to
support its proposal . . .

40

1

40

1206.157(a)(5) ........................

(a)(5) . . . The transportation factor may not exceed 50
percent of the base price of the product without ONRR
approval.

10

3

30

1206.157(b)(1) ........................

(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 ONRR–2014 . . .

1206.157(b)(2)(iv) and
(b)(2)(iv)(A).

(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 ONRR.
(A) . . . After an election is made, the lessee may not
change methods without ONRR approval . . .

100

1

100

1206.157(b)(3)(i) .....................

(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 ONRR approval.

100

1

100

1206.157(b)(3)(ii) ....................

(b)(3)(ii) . . . the lessee may propose to the ONRR a cost
allocation method on the basis of the values of the products transported . . .

100

1

100

1206.157(b)(4) ........................

(b)(4) Where both gaseous and liquid products are transported through the same transportation system, the lessee shall propose a cost allocation procedure to ONRR
. . . The lessee shall submit all relevant data to support
its proposal . . .

100

1

100

1206.157(b)(5) ........................

(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.

100

1

100

1206.157(c)(1)(i) .....................

(c) Reporting Requirements. (1) Arm’s-length contracts. (i)
You must use a separate entry on Form ONRR–2014 to
notify ONRR of a transportation allowance.

Burden covered under OMB Control Number
1012–0004.

1206.157(c)(1)(ii) ....................

(c)(1)(ii) ONRR may require you to submit arm’s-length
transportation contracts, production agreements, operating agreements, and related documents . . .

AUDIT PROCESS. See note.

1206.157(c)(2)(i) .....................

(c)(2) Non-arm’s-length or no contract. (i) You must use a
separate entry on Form ONRR–2014 to notify ONRR of a
transportation allowance.

Burden covered under OMB Control Number
1012–0004.

1206.157(c)(2)(iii) ....................

(c)(2)(iii) ONRR may require you to submit all data used to
calculate the allowance deduction . . .

AUDIT PROCESS. See note.

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Annual burden
hours

AUDIT PROCESS. See note.

Burden covered under OMB Control Number
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RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued

sradovich on DSK3TPTVN1PROD with NOTICES

30 CFR 1202, 1204, 1206,
and 1210

Reporting and recordkeeping requirement

Hour burden

Average
number of
annual
responses

Annual burden
hours

1206.157(e)(2), (e)(3), and
(f)(1).

(e) Adjustments. (2) For lessees transporting production
from onshore Federal leases, the lessee must submit a
corrected Form ONRR–2014 to reflect actual costs, together with any payment, in accordance with instructions
provided by ONRR. (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
ONRR–2014 to reflect actual costs, together with its payments, in accordance with instructions provided by ONRR
. . .
(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 ONRR–2014 by the amount of that payment. You
must modify Form ONRR–2014 by the amount received
or credited for the affected reporting period and pay any
resulting royalty and late payment interest due;

Burden covered under OMB Control Number
1012–0004.

1206.158(c)(3) ........................

Processing allowances—general ...........................................
(c)(3) Upon request of a lessee, ONRR may approve a
processing allowance in excess of the limitation prescribed by paragraph (c)(2) of this section . . . An application for exception (using Form ONRR–4393, Request to
Exceed Regulatory Allowance Limitation) shall contain all
relevant and supporting documentation for ONRR to
make a determination . . .

80

10

800

1206.158(d)(2)(i) .....................

(d)(2)(i) If the lessee incurs extraordinary costs for processing gas production from a gas production operation, it
may apply to ONRR for an allowance for those costs . . .

80

1

80

1206.158(d)(2)(ii) ....................

(d)(2)(ii) . . . to retain the authority to deduct the allowance
the lessee must report the deduction to ONRR in a form
and manner prescribed by ONRR.

1206.159(a)(1)(i) .....................

Determination of processing allowances.

Burden covered under OMB Control Number
1012–0004.

(a) Arm’s-length processing contracts ...................................
(1)(i) . . . The lessee shall have the burden of demonstrating that its contract is arm’s-length . . .

AUDIT PROCESS. See note.

The lessee must claim a processing allowance by reporting
it on a separate line entry on the Form ONRR–2014.

Burden covered under OMB Control Number
1012–0004.

1206.159(a)(1)(iii) ...................

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

AUDIT PROCESS. See note.

1206.159(a)(3) ........................

(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 ONRR . . . The lessee shall submit all relevant data to
support its proposal . . .

1206.159(b)(1) ........................

(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 ONRR–2014 . . .

1206.159(b)(2)(iv) and
(b)(2)(iv)(A).

(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
ONRR.
(A) . . . After an election is made, the lessee may not
change methods without ONRR approval . . .

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20

Burden covered under OMB Control Number
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Federal Register / Vol. 81, No. 108 / Monday, June 6, 2016 / Notices
RESPONDENTS’ ESTIMATED ANNUAL BURDEN HOURS—Continued
Average
number of
annual
responses

30 CFR 1202, 1204, 1206,
and 1210

Reporting and recordkeeping requirement

1206.159(b)(4) ........................

(b)(4) A lessee may apply to ONRR for an exception from
the requirements that it compute actual costs in accordance with paragraphs (b)(1) through (b)(3) of this section . . .

1206.159(c)(1)(i) .....................

(c) Reporting requirements—(1) Arm’s-length contracts. (i)
The lessee must notify ONRR of an allowance based on
incurred costs by using a separate line entry on the Form
ONRR–2014.

Burden covered under OMB Control Number
1012–0004.

1206.159(c)(1)(ii) ....................

(c)(1)(ii) ONRR may require that a lessee submit arm’slength processing contracts and related documents . . .

AUDIT PROCESS. See note.

1206.159(c)(2)(i) .....................

(c)(2) Non-arm’s-length or no contract. (i) The lessee must
notify ONRR of an allowance based on incurred costs by
using a separate line entry on the Form ONRR–2014.

Burden covered under OMB Control Number
1012–0004.

1206.159(c)(2)(iii) ....................

(c)(2)(iii) Upon request by ONRR, the lessee shall submit all
data used to prepare the allowance deduction . . .

AUDIT PROCESS. See note.

1206.159(e)(2) and (e)(3) .......

(e) Adjustments . . . (2) For lessees processing production
from onshore Federal leases, the lessee must submit a
corrected Form ONRR–2014 to reflect actual costs, together with any payment, in accordance with instructions
provided by ONRR. (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
ONRR–2014 to reflect actual costs, together with its payment, in accordance with instructions provided by
ONRR . . .

Burden covered under OMB Control Number
1012–0004.

Oil and Gas Valuation
Subtotal.

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

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

123

8992

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

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

133

9518

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

Hour burden

100

Annual burden
hours
1

100

sradovich on DSK3TPTVN1PROD with NOTICES

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

This 60-day Federal Register notice
burden chart shows an adjustment
increase of +320 burden hours. This
adjustment is based on analyzed
historical data since 2013 for the
transportation and processing
allowances (1206.156(c)(3) and
1206.158(c)(3)). The transportation
processing allowance increased from
120 to 280 burden hours and the
processing allowance increased from
640 to 800 burden hours for a total
increase of +320 annual burden hours.
Estimated Annual Reporting and
Recordkeeping ‘‘Non-hour’’ Cost
Burden: We have not identified a ‘‘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 does not have to respond to, a
collection of information unless it
displays a currently valid OMB control
number.

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III. Request for Comments
Section 3506(c)(2)(A) of the PRA
requires each agency to ‘‘* * * 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,
usefulness, and clarity of the
information that ONRR collects; and (d)
minimize the burden on the
respondents, including the use of
automated collection techniques or
other forms of information technology.
The PRA also requires agencies to
estimate the total annual reporting

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‘‘non-hour cost’’ burden to respondents
or record-keepers resulting from the
collection of information. If you have
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. You should
describe the methods that you use to
estimate (1) major cost factors, including
system and technology acquisition, (2)
expected useful life of capital
equipment, (3) discount rate(s), and (4)
the period over which you incur costs.
Capital and startup costs include,
among other items, computers and
software that you purchase to prepare
for collecting information and
monitoring, sampling, and testing
equipment, and record storage facilities.
Generally, your estimates should not
include equipment or services
purchased (i) before October 1, 1995; (ii)
to comply with requirements not
associated with the information

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collection; (iii) for reasons other than to
provide information or keep records for
the Federal Government; or (iv) as part
of customary and usual business, or
private practices.
We will summarize written responses
to this notice and address them in our
ICR submission for OMB approval,
including appropriate adjustments to
the estimated burden. We will provide
a copy of the ICR to you, without
charge, upon request. We also will post
the ICR at http://www.onrr.gov/
Laws_R_D/FRNotices/ICR0136.htm.
Public Comment Policy: ONRR will
post all comments, including names and
addresses of respondents at http://
www.regulations.gov. Before including
Personally Identifiable Information (PII),
such as your address, phone number,
email address, or other personal
information in your comment(s), you
should be aware that your entire
comment (including PII) may be made
available to the public at any time.
While you may ask us, in your
comment, to withhold PII from public
view, we cannot guarantee that we will
be able to do so.
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
Office of Management and Budget
control number.
Dated: May 26, 2016.
Gregory J. Gould,
Director, Office of Natural Resources
Revenue.
BILLING CODE 4335–30–P

DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue
[Docket No. ONRR–2011–0019; DS63642000
DR2000000.CH7000 167D0102R2]

Major Portion Prices and Due Date for
Additional Royalty Payments on Indian
Gas Production in Designated Areas
Not Associated With an Index Zone
Office of Natural Resources
Revenue (ONRR).
ACTION: Withdrawal.
AGENCY:

On April 28, 2016, ONRR
published (at 81 FR 25419) a notice of
the due date for industry to pay
additional royalties based on the major
portion prices, titled ‘‘Major Portion
Prices and Due Date for Additional
Royalty Payments on Indian Gas
Production in Designated Areas Not
Associated with an Index Zone.’’
Unfortunately, due to an incorrect date
in said notice, it is necessary to

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Dated: May 25, 2016.
Gregory J. Gould,
Director, Office of Natural Resources
Revenue.
[FR Doc. 2016–13207 Filed 6–3–16; 8:45 am]
BILLING CODE 4335–30–P

DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management
[Docket No. BOEM–2016–0027;
MMAA104000]

Atlantic Wind Lease Sale 6 (ATLW–6)
for Commercial Leasing for Wind
Power on the Outer Continental Shelf
Offshore New York—Proposed Sale
Notice
Bureau of Ocean Energy
Management (BOEM or ‘‘the Bureau’’),
Interior.
ACTION: Proposed Sale Notice for
Commercial Leasing for Wind Power on
the Outer Continental Shelf Offshore
New York.
AGENCY:

This document is the
Proposed Sale Notice (PSN) for the sale
of one commercial wind energy lease on
the Outer Continental Shelf (OCS)
offshore New York, pursuant to 30 CFR
585.216. BOEM proposes to offer Lease
OCS–A 0512 for sale using an ascending
bidding auction format. In this PSN, you
will find information pertaining to the
area available for leasing, proposed
lease provisions and conditions, auction
details, the lease form, criteria for
evaluating competing bids, award
procedures, appeal procedures, and
lease execution. BOEM invites public
comment during a 60-day comment
period following publication of this
notice. The issuance of a lease resulting
from this proposed sale would not
constitute an approval of projectspecific plans to develop offshore wind
energy resources. Such plans, expected
to be submitted by the auction winner,
will be subject to subsequent
environmental and technical reviews
prior to a decision to proceed with
development.
DATES: Comments should be submitted
electronically or postmarked no later
than August 5, 2016. All comments
received or postmarked during the
SUMMARY:

[FR Doc. 2016–13206 Filed 6–3–16; 8:45 am]

SUMMARY:

withdraw the notice and re-publish a
corrected version. This notice
withdraws the April 28, 2016, notice in
question.
FOR FURTHER INFORMATION CONTACT: For
questions on technical issues, contact
Mr. Luis Aguilar, Regulatory Specialist,
ONRR, telephone (303) 231–3418, or
email Luis.Aguilar@onrr.gov.

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comment period will be made available
to the public and considered prior to
publication of the Final Sale Notice
(FSN).
All entities interested in participating
in the lease sale who have not
previously been qualified by BOEM to
participate in this lease sale must
submit the required qualification
materials by the end of the 60-day
comment period for this notice. All
qualification materials must be
postmarked no later than August 5,
2016. Entities that have already been
qualified to participate in this lease sale
are not required to take any additional
action to affirm their interest.
ADDRESSES: Potential auction
participants, Federal, state, and local
government agencies, tribal
governments, and other interested
parties are requested to submit their
written comments on the PSN in one of
the following ways:
1. Electronically: http://
www.regulations.gov. In the entry
entitled, ‘‘Enter Keyword or ID’’, enter
BOEM–2016–0027 then click ‘‘search.’’
Follow the instructions to submit public
comments.
2. Written Comments: In written form,
delivered by hand or by mail, enclosed
in an envelope labeled, ‘‘Comments on
New York PSN’’ to: BOEM Office of
Renewable Energy Programs, 45600
Woodland Road, VAM–OREP, Sterling,
Virginia 20166, (703) 787–1320.
3. Qualifications Materials: Those
submitting qualifications materials
should contact Erin C. Trager, BOEM
Office of Renewable Energy Programs,
45600 Woodland Road, VAM–OREP,
Sterling, Virginia 20166, (703) 787–
1320, or Erin.Trager@boem.gov. If you
wish to protect the confidentiality of
your qualification materials, clearly
mark the relevant sections and request
that BOEM treat them as confidential.
Please label privileged or confidential
information with the caption ‘‘Contains
Confidential Information’’ and consider
submitting such information as a
separate attachment. Treatment of
confidential information is addressed in
the section of this PSN entitled
‘‘Protection of Privileged or Confidential
Information.’’ Information that is not
labeled as privileged or confidential will
be regarded by BOEM as suitable for
public release.
FOR FURTHER INFORMATION CONTACT: Erin
C. Trager, BOEM Office of Renewable
Energy Programs, 45600 Woodland
Road, VAM–OREP, Sterling, Virginia
20166, (703) 787–1320 or Erin.Trager@
boem.gov.
Authority: This PSN is published pursuant
to subsection 8(p) of the OCS Lands Act (43

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